Royal Gold Provides Update on its Fiscal 2018 Second Quarter
January 09 2018 - 9:00AM
Business Wire
Royal Gold, Inc. (NASDAQ:RGLD) (together with its
subsidiaries, “Royal Gold” or the “Company”) today announced that
its wholly owned subsidiary RGLD Gold AG sold approximately 62,000
gold equivalent ounces comprised of approximately 52,000 gold
ounces, 470,000 silver ounces and 800 tonnes of copper related to
its streaming agreements during its fiscal 2018 second quarter
ended December 31, 2017 (“second quarter”). The Company had
approximately 14,000 gold ounces, 273,000 silver ounces and 400
tonnes of copper in inventory at December 31, 2017.
RGLD Gold AG’s average realized gold, silver and copper prices
were $1,272 per ounce, $16.79 per ounce, and $6,746 per tonne,
respectively, compared to $1,287, $16.77, and $6,562 in the prior
quarter, respectively. Cost of sales was approximately $319 per
gold equivalent ounce for the second quarter using the quarterly
average silver-gold ratio of approximately 76 to 1 and gold-copper
ratio of approximately 0.19 tonnes per ounce, compared to $334 per
gold equivalent ounce in the prior quarter. Cost of sales is
specific to our stream agreements and is the result of the
Company’s purchase of gold, silver or copper for cash payments at a
set contractual price, or a percentage of the prevailing market
price of gold, silver or copper when purchased.
Also during the second quarter, Royal
Gold repaid $50 million of the outstanding balance
on its revolving credit facility. As of December 31, 2017, there
was $150 million outstanding on the revolver, resulting
in $850 million available under the Company’s credit
facility.
On December 22, 2017, H.R. 1, originally known as the Tax Cuts
and Jobs Act, was signed into law in the United States. As a United
States domiciled company, we expect that the recently enacted tax
reform will have a positive long-term impact on Royal Gold’s future
financial results through the reduction in the corporate tax rate
and a reduction in the future taxation of foreign subsidiaries.
However, we are required to reassess certain balance sheet assets
and liabilities and expect to recognize as-yet undetermined
financial statement impacts in our second quarter results.
Royal Gold’s second quarter results will be released before the
market opens for trading on Thursday, February 8, 2018, 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.
Fiscal 2018 Second 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
About Royal Gold
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 195 properties on six continents,
including interests on 39 producing mines and 23 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.
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 preliminary results of
streaming volume, average realized price per ounce and per tonne,
cost of sales per gold equivalent ounce, and the impact of
recently-enacted tax reform on Royal Gold’s financial results.
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, gold production at Andacollo and Wassa and
Prestea, and gold and silver production at Pueblo Viejo and Rainy
River; 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 and maintain 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180109005675/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
Royal Gold (NASDAQ:RGLD)
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