Royal Gold, Inc. (NASDAQ: RGLD) (together with its
subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports
record net income attributable to stockholders (“net income”) of
$29.8 million, or $0.46 per share, on record revenue of $117.9
million in its fiscal first quarter ended September 30, 2016
(“first quarter”). Earnings increased significantly compared to the
prior year quarter net loss of $45.0 million, or ($0.69)1 per
share, on revenue of $74.1 million.
First Quarter Highlights Compared to the Prior Year
Quarter:
- Strong volume of 88,400 Gold Equivalent
Ounces (“GEOs2”), an increase of 34%
- Record revenue of $117.9 million, an
increase of 59%
- Operating cash flow of $55.1 million,
versus $2.5 million prior year
- Record earnings per share of $0.46,
versus ($0.69) per share prior year
- Dividends paid of $15.0 million, an
increase of 5%
- Average gold price of $1,335, an
increase of 19%
“Fiscal 2017 is off to a great start with two powerful business
development catalysts and very strong financial results,” commented
Tony Jensen, President and CEO. “Our purchase of another royalty at
Cortez Crossroads provides additional exposure to one the world’s
premier gold mines, while Centerra Gold’s successful acquisition of
Thompson Creek Metals adds a strong partner to our portfolio and
provides clarity for our Mount Milligan interest. In addition to
these successes, the benefits of other investments we made over the
last six quarters are now contributing to the record financial
results we are announcing today.”
Recent Developments
Amended Stream at Mount Milligan
On October 20, 2016, Royal Gold amended its streaming interest
at the Mount Milligan mine, now owned by a subsidiary of
Centerra Gold Inc. (“Centerra”).
Under the terms of the amendment, our 52.25% gold stream at
Mount Milligan has been amended to a 35.0% gold stream and an
18.75% copper stream. We will continue to pay $435 per ounce of
gold delivered and will pay 15.0% of the spot price per metric
tonne of copper delivered. Mount Milligan gold in concentrate that
was in transit prior to October 20, 2016 will be delivered to us
under the current 52.25% stream. Under the terms of both the
original and amended agreements, there is a maximum of five months
between concentrate shipment and final settlement, and the Company
expects to begin receiving gold and copper deliveries reflecting
the amended stream agreement in March 2017.
After transition to the amended stream, Royal Gold expects
that, on the basis of its current stream and royalty portfolio,
approximately 85% of total future net revenue will come from
precious metals and 15% from base metals.
Acquisition of Additional Royalty Interests at Cortez
On September 19, 2016, Royal Gold, through its wholly owned
subsidiary, Denver Mining Finance Company, Inc. acquired a 3.75%
Net Value Royalty (“NVR”) covering a significant area of Barrick
Gold Corporation’s (“Barrick”) Cortez gold mine in Nevada,
including the Crossroads deposit from a private party seller for
total consideration of $70 million. With this acquisition, Royal
Gold’s interests at Cortez Crossroads comprise a 4.43% NVR and a 5%
sliding-scale Gross Smelter Return (“GSR”) royalty at current gold
prices. Royal Gold’s interests on production from the Pipeline and
South Pipeline deposits as well as portions of the Gap deposit are
comprised of a 4.83% NVR and a 5.71% GSR royalty at current gold
prices.
As of December 31, 2015, proven and probable reserves subject to
Royal Gold’s interests at Cortez were estimated at 3.7 million
ounces of gold, including approximately 3 million gold ounces at
Crossroads. Waste stripping at Crossroads is underway and
production is estimated to begin in calendar 2018.
First Quarter Overview
First quarter revenue of $117.9 million included stream revenue
of $85.5 million and royalty revenue of $32.4 million. Stream
segment gold purchases totaled approximately 63,000 ounces and gold
sales were approximately 60,000 ounces. Stream segment silver
purchases were approximately 543,000 ounces and silver sales were
approximately 323,000 ounces. The Company had approximately 24,000
ounces of gold and 544,000 ounces of silver in inventory at
September 30, 2016, as previously announced, compared to
approximately 20,000 ounces of gold and approximately 324,000
ounces of silver at June 30, 2016.
First quarter cost of sales was $22.7 million, compared to $11.5
million in the year ago quarter. Cost of sales is specific to our
stream agreements and is the result of Royal Gold’s purchase of
gold and silver for a cash payment. The increase is primarily
attributable to new production from our gold and silver streams at
Pueblo Viejo and increased deliveries from Andacollo and Mount
Milligan.
General and administrative expenses were $10.5 million in the
first quarter, compared to $9.5 million in the year ago quarter.
The increase was related to increased legal and litigation costs of
approximately $1.3 million.
Depreciation, depletion and amortization increased to $40.1
million for the first quarter, an increase from $27.1 million from
the year ago quarter. The increase was primarily attributable to
new production from our gold and silver streams at Pueblo Viejo
($9.6 million) and an increase in gold stream sales from Mount
Milligan and Andacollo, which resulted in additional depletion of
approximately $5.7 million. These increases were partially offset
by lower overall production within our royalty interest
segment.
Exploration costs, which are related to our Peak Gold joint
venture in Alaska, totaled $3.3 million in the first quarter,
compared to $3.2 million in the year ago quarter. As of September
30, 2016, Royal Gold had earned a 15.1% interest in the Peak Gold
joint venture.
We recognized a first quarter income tax expense of $7.2
million, compared with income tax expense of $59.2 million during
the year ago quarter. This resulted in an effective tax rate of
21.1% in the current period, compared with 415.7% in the quarter
ended September 30, 2015. The decrease in the effective tax rate is
primarily related to the discrete tax impacts attributable to the
Company’s Andacollo transactions and the liquidation of our Chilean
subsidiary during the three months ended September 30, 2015.
At September 30, 2016, we had current assets of $192.0 million
compared to current liabilities of $25.6 million, resulting in
working capital of $166.4 million. This compares to current assets
of $164.8 million and current liabilities of $22.7 million at
June 30, 2016, resulting in working capital of $142.1
million. As of September 30, 2016, the Company had $305 million
available and $345 million outstanding under its revolving credit
facility. Working capital, combined with the Company’s undrawn
revolving credit facility, resulted in approximately $471 million
of total liquidity at September 30, 2016.
PROPERTY HIGHLIGHTS
A summary of first quarter and historical production can be
found on Tables 1 and 2. Calendar year production estimates versus
actual production at certain producing properties can be found on
Table 3. Results of our streaming business for the first quarter
compared to the year ago quarter, can be found on Table 4.
Highlights at certain of the Company’s principal producing and
development properties during the first quarter, compared to the
year ago quarter, are detailed in our Form 10-Q.
CORPORATE PROFILE
Royal Gold is a precious metals stream and royalty company
engaged in the acquisition and management of precious metal
streams, royalties and similar production based interests. The
Company owns interests on 192 properties on six continents,
including interests on 38 producing mines and 24 development stage
projects. Royal Gold is publicly traded on the NASDAQ Global Select
Market under the symbol “RGLD.” The Company’s website is located at
www.royalgold.com.
Note: Management’s conference call reviewing the first
quarter results will be held on Thursday, November 3, 2016,
followed by a conference call that day at noon Eastern Time (10:00
a.m. Mountain Time). The call will be webcast and archived on the
Company’s website for a limited time.
First Quarter Earnings Call Information:
Dial-In Numbers: 855-209-8260 (U.S.); toll
free 855-669-9657 (Canada); toll free 412-542-4106 (International)
Conference Title: Royal Gold Webcast URL:
www.royalgold.com under Investors, Events
& Presentations
Cautionary “Safe Harbor” Statement Under the Private
Securities Litigation Reform Act of 1995: With the exception of
historical matters, the matters discussed in this press release are
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking
statements include statements about an additional royalty at Cortez
providing exposure to one of the world’s premier gold mines,
Centerra’s acquisition of Thompson Creek Metals adding a strong
partner to the Company’s portfolio and providing clarity for the
Company’s Mount Milligan interest; operators’ expectations about
development; anticipated production and returns from our stream and
royalty properties; estimated percentages of precious and base
metals expected from Mount Milligan and from the Company’s stream
and royalty portfolio in the aggregate after transition to the
amended Mount Milligan stream agreement; development and estimated
start of production at Cortez Crossroads; operators’ production
estimates for calendar year 2016 and statements about the
opportunities for portfolio and investment growth and
diversification and the Company’s ability to pursue such
opportunities. Factors that could cause actual results to differ
materially from the projections include, among others, precious
metals, copper and nickel prices; performance of and production at
the Company's stream and royalty properties, including gold and
copper production at Mount Milligan; the ability of operators of
development properties to finance project construction to
completion and bring projects into production as expected;
operators’ delays in securing or inability to secure necessary
governmental permits; decisions and activities of the operators of
the Company's stream and royalty properties; unanticipated grade,
environmental, geological, seismic, metallurgical, processing,
liquidity or other problems the operators of the mining properties
may encounter; changes in operators’ project parameters as plans
continue to be refined; changes in estimates of reserves and
mineralization by the operators of the Company’s stream and royalty
properties; contests to the Company’s stream and royalty interests
and title and other defects to the Company’s stream and royalty
properties; errors or disputes in calculating stream and royalty
payments, or payments not made in accordance with stream and
royalty agreements; economic and market conditions; risks
associated with conducting business in foreign countries; changes
in laws governing the Company and its stream and royalty properties
or the operators of such properties, and other subsequent events;
as well as other factors described in the Company's Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q, and other filings
with the Securities and Exchange Commission. Most of these factors
are beyond the Company’s ability to predict or control. The Company
disclaims any obligation to update any forward-looking statement
made herein. Readers are cautioned not to put undue reliance on
forward-looking statements.
Statement Regarding Third Party Information: Certain
information provided in this press release, including production
estimates for calendar 2016, has been provided to us by the
operators of those properties or is publicly available information
filed by these operators with applicable securities regulatory
bodies, including the Securities and Exchange Commission. Royal
Gold has not verified, and is not in a position to verify, and
expressly disclaims any responsibility for, the accuracy,
completeness or fairness of such third-party information and refers
the reader to the public reports filed by the operators for
information regarding those properties.
TABLE 1First Quarter Fiscal
2017Revenue and Reported Production for Principal Stream and
Royalty Interests(In thousands, except reported production
in oz. and lbs.)
Three Months Ended Three Months
Ended September 30, 2016 September 30,
2015
Reported Reported
Stream/Royalty
Metal(s)
Revenue
Production1 Revenue
Production1 Stream:
Mount Milligan Gold $ 38,386 28,900
oz. $ 23,465 21,000 oz. Pueblo Viejo $ 20,950 N/A N/A
Gold 11,000 oz. N/A N/A Silver 323,300 oz. N/A N/A Andacollo Gold $
20,169 15,200 oz. $ 10,716 9,500 oz. Wassa and Prestea Gold $ 5,999
4,500 oz. $ 3,624 3,200 oz. Other Gold $ - N/A oz. $ 52 100
oz.
Total stream revenue $ 85,504 $
37,857
Royalty:
Peñasquito
$ 5,821 $ 8,046 Gold 100,100 oz. 226,500 oz. Silver 5.2 Moz. 7.3
Moz. Lead 33.0 Mlbs. 49.1 Mlbs. Zinc 73.0 Mlbs. 118.7 Mlbs. Cortez
Gold $ 2,040 21,800 oz. $ 1,812 22,600 oz. Other Various $ 24,582
N/A $ 26,341 N/A
Total royalty revenue $
32,443 $ 36,199 Total revenue $
117,947 $ 74,056
TABLE 2Operators’ Historical
Production
Reported Production For The Quarter Ended1
Property
Stream/Royalty
Operator
Metal(s) Sep. 30, 2016 Jun.
30, 2016 Mar. 31, 2016 Dec. 31,
2015 Sep. 30, 2015 Stream:
Mount Milligan2
35.00% of payable gold; 18.75% of payable copper Centerra
Gold 28,900 oz. 23,800 oz.
25,400 oz. 38,700 oz. 21,000
oz. Pueblo Viejo
7.5% of gold produced up to 990,000
ounces; 3.75% thereafter
Barrick (60%) Gold 11,000 oz. 10,600
oz. 11,800 oz. 8,800 oz. N/A
75% of payable silver up to 50 million
ounces; 37.5% thereafter
Silver 323,300 oz.
208,900 oz. N/A N/A
N/A Andacollo 100% of gold
produced Teck Gold 15,200 oz.
13,500 oz. 13,500 oz. 5,200 oz.
9,500 oz. Wassa and Prestea
9.25% of gold produced up to 240,000
ounces; 5.5% thereafter
Golden Star Gold 4,500 oz. 4,600
oz. 3,500 oz. 8,800 oz.
3,200 oz.
Royalty:
Peñasquito 2.0% NSR Goldcorp
Gold 100,100 oz. 41,900 oz.
120,300 oz. 195,400 oz. 226,500
oz. Silver 5.2 Moz. 2.6 Moz.
4.8 Moz. 6.8 Moz. 7.3
Moz. Lead 33.0 Mlbs. 13.3 Mlbs.
30.2 Mlbs. 41.7 Mlbs. 49.1 Mlbs.
Zinc 73.0
Mlbs. 43.2 Mlbs. 73.1 Mlbs. 98.0
Mlbs. 118.7 Mlbs. Cortez GSR1 and GSR2,
GSR3, NVR1 Barrick Gold 21,800 oz.
16,100 oz. 18,400 oz. 17,000
oz. 22,600 oz.
FOOTNOTES
Tables 1 and 2
1 Reported production relates to the amount of metal sales
that are subject to our stream and royalty interests for the stated
period, as reported to us by operators of the mines. 2 Reflects the
October 20, 2016 amendment to our Mount Milligan streaming
agreement. Prior to the amendment, Royal Gold had a 52.25% gold
stream. Gold concentrate that is currently in transit will be
delivered to us under the 52.25% gold stream.
TABLE 3Calendar 2016 Operators’
Production Estimate vs Actual Production
Calendar 2016
Operator’s Production Estimate1
Calendar 2016 Operator's Production
Actual2,3
Gold Silver Base Metals Gold
Silver Base Metals Stream/Royalty
(oz.) (oz.) (lbs.)
(oz.) (oz.) (lbs.)
Stream:
Andacollo4 57,600
- - 40,100 - - Mount Milligan5
240,000-270,000 - - 99,700 - -
Pueblo Viejo6 670,000-700,000 Not provided
511,000 Not provided - Wassa and
Prestea7 180,000-205,000
95,700
Royalty:
Cortez GSR1 119,200 - - 53,100
- - Cortez GSR2 1,300 - -
3,100 - - Cortez GSR3 120,500 -
- 56,200 - - Cortez NVR1 68,900
- - 36,600 - - Peñasquito8
520,000-580,000 22-24 million - 282,000
13.1 million - Lead
145-155 million 79.8 million
Zinc 375-400 million
184.6 million 1
Production estimates received from our operators are for calendar
2016. There can be no assurance that production estimates received
from our operators will be achieved. Please refer to our cautionary
language regarding forward-looking statements preceding Table 1
above, as well as the Risk Factors identified in Part I, Item 1A,
of our Fiscal 2016 10-K for information regarding factors that
could affect actual results. 2 Actual production figures shown are
from our operators and cover the period January 1, 2016 through
September 30, 2016, unless otherwise noted. 3 Actual production
figures for Andacollo and Cortez are based on information provided
to us by the operators, and actual production figures for
Andacollo, Mount Milligan, Pueblo Viejo, Peñasquito (gold), and
Wassa and Prestea are the operators’ publicly reported figures. 4
The estimated and actual production figures shown for Andacollo are
contained gold in concentrate. 5 The estimated and actual
production figures shown for Mount Milligan are payable gold in
concentrate. Actual production shown is for the six months ended
June 30, 2016. Nine months ended September 30, 2016, information
was not available from the operator as of the date of this report.
6 The estimated and actual production figures shown are payable
gold in doré and represent Barrick’s 60% interest in Pueblo Viejo.
7 The estimated production figure shown is payable gold in doré.
Actual production shown is for the six months ended June 30, 2016.
Nine months ended September 30, 2016, information was not available
from the operator as of the date of this report. 8 The estimated
gold and silver production figures reflect payable gold and silver
in concentrate and doré, while the estimated lead and zinc
production figures reflect payable metal in concentrate.
TABLE 4Stream Summary
Three months ended September
30,2016
Three months ended September
30,2015
As of September 30,2016
As of June 30,2016
Gold Stream Purchases (oz.) Sales (oz.)
Purchases (oz.) Sales (oz.) Ounces in
inventory Ounces in inventory Mount Milligan 29,900
28,900 23,800 21,000 8,500 7,500 Wassa and Prestea 4,500 4,500
6,300 3,200 1,300 1,300 Pueblo Viejo 13,700 11,000 N/A N/A 13,700
11,000 Andacollo 15,300 15,200 9,800 9,500 100 - Phoenix Gold - -
100 100 - -
Total 63,400 59,600 40,000
33,800 23,600 19,800
Three months ended September
30,2016
Three months ended September
30,2015
As of September 30,2016
As of June 30,2016
Silver Stream Purchases (oz.) Sales (oz.)
Purchases (oz.) Sales (oz.) Ounces in
inventory Ounces in inventory Pueblo Viejo 543,300
323,300 N/A N/A 543,700 323,700
ROYAL GOLD, INC.Consolidated
Balance SheetsAs of September 30,(In thousands except share
data)
September 30, 2016 June 30, 2016
ASSETS Cash
and equivalents $ 133,042 $ 116,633 Royalty receivables 23,951
17,990 Income tax receivable 21,028 20,043 Stream inventory 12,615
9,489 Prepaid expenses and other 1,350 614 Total
current assets 191,986 164,769 Stream and royalty interests,
net 2,898,094 2,848,087 Other assets 58,511 53,696
Total assets $ 3,148,591 $ 3,066,552
LIABILITIES
Accounts payable $ 6,129 $ 4,114 Dividends payable 15,023 15,012
Other current liabilities 4,433 3,554 Total current
liabilities 25,585 22,680 Debt 674,029 600,685 Deferred tax
liabilities 120,672 133,867 Uncertain tax positions 23,370 16,996
Other long-term liabilities 6,391 6,439 Total
liabilities 850,047 780,667 Commitments and contingencies
EQUITY
Preferred stock, $.01 par value,
authorized 10,000,000 sharesauthorized; and 0 shares issued
- -
Common stock, $.01 par value, 100,000,000
shares authorized; and 65,142,812 and65,093,950 shares outstanding,
respectively
652 651 Additional paid-in capital 2,180,815 2,179,781 Accumulated
other comprehensive loss - - Accumulated earnings 63,349
48,584 Total Royal Gold stockholders’ equity 2,244,816
2,229,016 Non-controlling interests 53,728 56,869
Total equity 2,298,544 2,285,885 Total liabilities
and equity $ 3,148,591 $ 3,066,552
ROYAL GOLD, INC.Consolidated
Statements of Operations and Comprehensive Income (Loss)(In
thousands except for per share data)
For The Three Months Ended September 30, September
30, 2016 2015 Revenue $ 117,947 $
74,056 Costs and expenses Cost of sales 22,662 11,466
General and administrative 10,507 9,510 Production taxes 497 1,592
Exploration costs 3,288 3,156 Depreciation, depletion and
amortization 40,102 27,147 Total costs
and expenses 77,056 52,871
Operating income 40,891 21,185 Interest and other income
1,557 265 Interest and other expense (8,305 ) (7,214
) Income before income taxes 34,143 14,236 Income tax
expense (7,188 ) (59,177 ) Net income (loss) 26,955
(44,941 ) Net loss (income) attributable to non-controlling
interests 2,832 (105 ) Net income (loss)
attributable to Royal Gold common stockholders $ 29,787 $
(45,046 ) Net income (loss) $ 26,955 $ (44,941 ) Adjustments
to comprehensive income (loss), net of tax Unrealized change in
market value of available-for-sale securities -
(449 ) Comprehensive income (loss) 26,955 (45,390 )
Comprehensive loss (income) attributable to non-controlling
interests 2,832 (105 ) Comprehensive income
(loss) attributable to Royal Gold stockholders $ 29,787 $
(45,495 ) Net income (loss) per share available to Royal
Gold common stockholders: Basic earnings (loss) per share $
0.46 $ (0.69 ) Basic weighted average shares outstanding
65,116,686 65,048,439 Diluted earnings
(loss) per share $ 0.46 $ (0.69 ) Diluted weighted average
shares outstanding 65,280,904 65,048,439
Cash dividends declared per common share $ 0.23 $
0.22
ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(In Thousands)
For The Three Months Ended September 30, September
30, 2016 2015 Cash flows from operating
activities: Net income (loss) $ 26,955 $ (44,941 ) Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: Depreciation, depletion and amortization 40,102 27,147
Amortization of debt discount and issuance costs 3,351 3,197
Non-cash employee stock compensation expense 4,144 4,227 Tax
benefit of stock-based compensation exercises 24 150 Deferred tax
expense (1,030 ) 11,767 Other (153 ) (390 ) Changes in assets and
liabilities: Royalty receivables (5,962 ) 13,142 Stream inventory
(3,125 ) (1,981 ) Income taxes receivable (16,480 ) (17,192 )
Prepaid expenses and other assets (1,724 ) (2,682 ) Accounts
payable 1,777 3,266 Uncertain tax positions 6,374 77 Other
liabilities 879 6,704 Net cash provided
by operating activities $ 55,132 $ 2,491 Cash
flows from investing activities: Acquisition of stream and royalty
interests (90,083 ) (1,300,881 ) Andacollo royalty termination -
345,000 Golden Star term loan - (20,000 ) Other (226 )
(228 ) Net cash used in investing activities $ (90,309 ) $
(976,109 ) Cash flows from financing activities: Borrowings
from revolving credit facility 70,000 350,000 Net payments from
issuance of common stock (2,038 ) - Common stock dividends (15,012
) (14,341 ) Purchase of additional royalty interest from
non-controlling interest (1,025 ) - Tax expense of stock-based
compensation exercises (24 ) (150 ) Other (315 ) (430
) Net cash provided by financing activities $ 51,586 $
335,079 Net increase (decrease) in cash and equivalents
16,409 (638,539 ) Cash and equivalents at beginning of period
116,633 742,849 Cash and equivalents at
end of period $ 133,042 $ 104,310
SCHEDULE A
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
generally accepted accounting principles (“GAAP”). These measures
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
Our management uses Adjusted EBITDA and Adjusted Net Income as
measures of operating performance to assist in comparing
performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in
communications with the board of directors, stockholders, analysts
and investors concerning our financial performance; as useful
comparisons to the performance of our competitors; and as metrics
of certain management incentive compensation calculations. We
believe that these measures are used by and are useful to investors
and other users of our financial statements in evaluating our
operating performance because they provide an additional tool to
evaluate our performance without regard to special and noncore
items, which can vary substantially from company to company
depending upon accounting methods and book value of assets and
capital structure. We have provided reconciliations of all non-GAAP
measures to their nearest U.S. GAAP measures and have consistently
applied the adjustments within our reconciliations in arriving at
each non-GAAP measure. We consider these items to be necessary
adjustments for purposes of evaluating our ongoing business
performance and are often considered non-recurring. Such
adjustments are subjective and involve significant management
judgment.
Adjusted EBITDA Reconciliation
Adjusted EBITDA is defined by the Company as net income (loss)
plus depreciation, depletion and amortization, non-cash charges,
income tax expense, interest and other expense, and any impairment
of mining assets, less non-controlling interests in operating loss
(income) of consolidated subsidiaries, interest and other income,
and any royalty portfolio restructuring gains or losses. Other
companies may define and calculate this measure differently.
Adjusted EBITDA identifies the cash generated in a given period
that will be available to fund the Company's future operations,
growth opportunities, shareholder dividends and to service the
Company's debt obligations. This information differs from measures
of performance determined in accordance with U.S. generally
accepted accounting principles and should not be considered in
isolation or as a substitute for measures of performance determined
in accordance with U.S. GAAP. See the table below for a
reconciliation of net income to Adjusted EBITDA.
SCHEDULE A
For The Three Months Ended September 30,
(Unaudited, in thousands) 2016
2015 Net income (loss) $ 26,955 $
(44,941 ) Depreciation, depletion and amortization 40,102 27,147
Non-cash employee stock compensation 4,144 4,227 Interest and
other, net 6,748 6,949 Income tax expense 7,188 59,177
Non-controlling interests in operating loss (income) of
consolidated subsidiaries 2,984 (105 )
Adjusted
EBITDA $ 88,121 $ 52,454
Adjusted Net Income (Loss)
Reconciliation
Management of the Company uses adjusted net income (loss) to
evaluate the Company’s operating performance, and for planning and
forecasting future business operations. The Company believes the
use of adjusted net income (loss) allows investors and analysts to
understand the results relating to receipt of revenue from its
royalty interests and purchase and sale of gold from its streaming
interests by excluding certain items that have a disproportionate
impact on our results for a particular period. The net income
(loss) adjustments are presented net of tax generally at the
Company’s statutory effective tax rate. Management’s determination
of the components of adjusted net income (loss) are evaluated
periodically and based, in part, on a review of non-GAAP financial
measures used by mining industry analysts. Net income (loss)
attributable to Royal Gold stockholders is reconciled to adjusted
net income (loss) as follows:
For The Three Months Ended
September 30, (Unaudited, in thousands)
2016 2015 Net income
(loss) attributable to Royal Gold common stockholders $ 29,787
$ (45,046 ) Tax expense on Andacollo royalty sale and
Chilean subsidiary liquidation - 56,000
Adjusted
net income attributable to Royal Gold common stockholders $
29,787 $ 10,954
Net
income (loss) attributable to Royal Gold common stockholders per
share $ 0.46 $ (0.69 ) Tax expense on Andacollo royalty
sale and Chilean subsidiary liquidation - 0.86
Adjusted net income attributable to Royal Gold common
stockholders per share $ 0.46 $ 0.17
___________________________________
1 Earnings and operating cash flow in the prior year quarter
were impacted by discrete tax expenses of $56 million.2 GEOs are
calculated as revenue divided by the average gold price for the
same period. GEOs net of stream payments were 71,400 ounces in the
first quarter compared to 55,700 ounces in the year ago
quarter.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161102006518/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
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