Royal Gold, Inc. (NASDAQ: RGLD) (together with its
subsidiaries, “Royal Gold,” the “Company,” “we,” “us,” or “our”)
reports net income of $239.4 million, or $3.63 per share, for the
year ended December 31, 2023, on revenue of $605.7 million and
operating cash flow of $415.8 million. Adjusted net income1 was
$232.9 million, or $3.53 per share.
For the quarter ended December 31, 2023 (“fourth quarter”), we
reported net income of $62.8 million, or $0.95 per share, on
revenue of $152.7 million and operating cash flow of $101.1
million.
Sales volume for 2023 at metal prices used to provide GEO2
guidance was 315,600 GEOs3, slightly below the low end of the
previously-issued guidance range of 320,000 to 345,000 GEOs, and in
line with the range of expectations we provided with our third
quarter 2023 results. At actual 2023 metal prices, sales volume was
approximately 312,100 GEOs.
2023 Highlights:
- Solid financial results with revenue of $605.7
million, operating cash flow of $415.8 million and
earnings of $239.4 million
- Revenue split: 76% gold, 12% silver, 9%
copper
- Sales volume of 312,100 GEOs2,3
- Sustained high adjusted EBITDA margin1 of
79%
- Debt reduced by $325 million to $250 million
- Total available liquidity increased to $845 million
- Revolving credit facility maturity extended to June 28,
2028
- Paid $1.50 per share dividend
Fourth Quarter 2023 Highlights:
- Increased dividend for the 23rd consecutive year to
$1.60 per share for 2024, a 7% increase over 2023
- Repaid $75 million of balance outstanding on revolving
credit facility
“We finished 2023 on a strong note with solid financial results
in the fourth quarter,” commented Bill Heissenbuttel, President and
CEO of Royal Gold. “We took advantage of our strong cash flow
during the year to repay debt and build our liquidity to be
well-positioned for new acquisition opportunities that meet our
investment criteria. We also kept our focus on increasing our
return of capital to shareholders and we raised our dividend for
the 23rd consecutive year, which remains an unparalleled record in
the precious metals sector.”
“While we anticipate issuing 2024 guidance in April for our
total portfolio, we are expecting to see continued revenue growth
from our newest producers, Bellevue and King of the Hills, as those
operations continue to ramp-up,” continued Mr. Heissenbuttel, “and
we expect new revenue from several development projects as they
transition to production, including Goldrush, Mara Rosa, Côté Gold
and Manh Choh.”
____________________
1 Adjusted net income, adjusted net income
per share and adjusted EBITDA margin are non-GAAP financial
measures. See Schedule A of this press release for additional
information, including a detailed description of adjustments to net
income.
2 See Schedule A of this press release for
additional information about gold equivalent ounces, or GEOs.
3 2023 actual volume was approximately
315,600 GEOs at commodity prices used to set 2023 guidance of:
$1,825/oz gold, $22.50/oz silver, $3.80/lb copper, $11.50/lb
nickel, $0.90/lb lead, and $1.30/lb zinc.
Recent Portfolio Developments
Principal Property Updates
Notable recent updates as reported by the operators of our
Principal Properties include:
Agreement with Centerra that Provides for Mine Life Extension
at Mount Milligan
On February 14, 2024, we announced an additional agreement with
Centerra Gold Inc. (“Centerra”) with respect to the Mount Milligan
mine in British Columbia that will allow an extension of the mine
life to 2035 and provide the potential for a future mine life
increase. As part of the announcement of the agreement, Centerra
described a three-part strategy to further increase the Mount
Milligan mine life that includes the completion of a Preliminary
Economic Assessment in the first half of 2025 to evaluate mine life
extension opportunities, further exploration drilling, and a site
optimization program that began in the fourth quarter. Please refer
to the press release titled “Royal Gold Announces Additional
Agreement with Centerra that Provides for Mine Life Extension at
Mount Milligan” for more detail.
Additionally, on February 14, 2024, Centerra provided 2024
production guidance for Mount Milligan of 180,000 to 200,000 ounces
of gold and 55 to 65 million pounds of copper.
Record of Decision Received at Goldrush and Cortez 2024
Production Forecast Provided by Barrick
On December 11, 2023, Barrick Gold Corporation (“Barrick”)
reported that the Record of Decision (“ROD”) approving the plan of
operations for the new Goldrush mine in Nevada (part of the Cortez
Complex) was issued by the US Bureau of Land Management,
approximately 6 months later than Barrick’s initial expectation.
Barrick anticipates production to ramp up in 2024 after
commissioning of the initial project infrastructure, and has
forecasted expected gold production from Goldrush of 130,000 ounces
in 2024, growing to approximately 400,000 ounces per year by 2028
(100% basis).
Further, on February 14, 2024, Barrick reported that production
at the Cortez Complex in 2024 is expected to be lower in 2024
relative to 2023 primarily due to changes in the Crossroads
resource model that are expected to reduce oxide mill feed. Barrick
expects this reduction to be partially offset by a higher
contribution from Goldrush, although the delay in receiving the ROD
during 2023 has pushed some production at Goldrush from 2024 into
2025. Barrick is expecting gold production at the Cortez Complex to
be 620,000 to 680,000 ounces in 2024 (100% basis).
Update on Ramp-Up of Plant Expansion with Further Deferral of
Silver Deliveries at Pueblo Viejo
On February 14, 2024, Barrick provided an update on the plant
expansion and mine life extension project at Pueblo Viejo.
According to Barrick, construction and commissioning activities for
the plant expansion were substantially completed by the end of
2023. Reconstruction of the ore stockpile feed conveyor is underway
after a failure reported in the fourth quarter, and Barrick now
expects this reconstruction to be completed in the second quarter
of 2024, which will allow the plant to reach full throughput.
Barrick further reported that the focus during the first quarter of
2024 will be on the continued stability and optimization of the
flotation circuit. With respect to the mine life extension project,
Barrick reported that the technical and social studies for
additional tailings storage capacity at the El Naranjo facility
continued to advance as planned. Geotechnical drilling and site
investigations are ongoing and continue to support the feasibility
study, due for completion in the third quarter of 2024.
Silver stream deliveries were approximately 223,000 ounces for
the fourth quarter compared to 337,900 ounces for the prior year
quarter, and an additional 165,400 ounces of silver deliveries were
deferred during the current period. As of December 31, 2023,
approximately 854,000 ounces remain deferred, and the timing for
the delivery of the entire deferred amount is uncertain. We expect
that silver recoveries could remain highly variable and material
deliveries of deferred silver ounces are not expected until the
plant expansion is complete and is running at full production
levels.
Barrick is expecting its share of gold production at Pueblo
Viejo to be 420,000 to 490,000 ounces in 2024 (60% basis).
Production for 2024 Expected to Remain in Line with 2023 at
Andacollo
On January 16, 2024, Teck Resources Limited (“Teck”) reported
that the Andacollo mine in Chile continues to face extreme drought
conditions, causing water restrictions which impact production, and
Teck expects 2024 copper production to be similar to 2023.
According to Teck, steps are being taken to mitigate these risks,
with a solution likely to be in place in 2025. As a result, and
with the benefit of higher grade ore, copper production is expected
to increase between 2025 and 2027, compared to 2024. Gold and
copper grades are relatively well correlated at Andacollo and gold
production tends to track copper production.
Announcement of Change in Ownership of Khoemacau
On November 21, 2023, Khoemacau
Copper Mining (“KCM”), the owner of the Khoemacau mine in Botswana, announced that the
shareholders of its parent company, Cuprous Capital Ltd
(“Cuprous”), had entered into a share purchase agreement with MMG
Limited (“MMG”), whereby MMG will acquire all the issued share
capital of Cuprous. MMG is a large and well-capitalized base metal
mining company listed on the Stock Exchange of Hong Kong, with
operations and projects in Australia, the Democratic Republic of
the Congo, Peru and Canada. MMG has reported that the parties have
agreed to work towards completion of the transaction in the first
quarter of 2024.
During development of Khoemacau,
Royal Gold made available a $25 million subordinated debt facility
to KCM which is repayable at Royal Gold’s option upon the
occurrence of certain events, including a change of control.
Including capitalized interest, the amount owing under this
facility was approximately $35.7 million as of December 31,
2023.
Other Property Updates
Notable recent updates as reported by the operators of other
select portfolio assets include:
Producing Properties
Bellevue (2% NSR royalty): Bellevue
Gold Limited (“Bellevue”) announced on January 29, 2024, that the
processing plant achieved nameplate capacity of 1 million tonnes
per year for December, and production ramp-up is progressing at the
Bellevue Gold Project in Western Australia. With plant
commissioning completed, Bellevue has provided gold production
guidance of 75,000-85,000 ounces for the first six months of
2024.
King of the Hills (1.5% NSR royalty):
On January 31, 2024, Red 5 Limited reported continued strong
performance at the King of the Hills mine in Western Australia,
with record crushing and milling performance in December resulting
in annualized mill throughput exceeding the 5.5 million tonnes per
year nameplate capacity.
Rainy River (6.5% gold stream, 60% silver
stream): On February 8, 2024, New Gold Inc. (“New Gold”)
provided gold production guidance for the Rainy River mine in
Ontario that indicates an increasing production profile over the
next three years, with expected production of 250,000 to 280,000
ounces in 2024, 295,000 to 335,000 ounces in 2025 and 315,000 to
355,000 ounces in 2026. Additionally, New Gold expects exploration
at Rainy River to prioritize near-surface opportunities for open
pit extraction, underground targets downplunge of the current ore
zones for potential resource and reserve growth, as well as
potential new underground zones accessed from new underground
infrastructure.
Development and Evaluation
Properties
Back River (1.95% GSR royalty on the Goose
Project): On January 23, 2024, B2Gold Corp. (“B2Gold”) reported
that construction of the Goose Project in the Back River Gold
District in Nunavut is progressing on track with the first gold
pour on schedule for the first quarter of 2025. B2Gold expects gold
production in 2025 of 220,000 to 260,000 ounces, and approximately
300,000 ounces per year over the first 5 years of operation. B2Gold
also reported that $28 million is budgeted for exploration at the
Back River Gold District in 2024, which includes 25,000 meters of
drilling to target extensions of the Llama and Umwelt deposits, the
largest and highest grade resources at the Goose Project. Further,
B2Gold expects to finalize an updated life of mine plan for the
Goose Project in the first quarter of 2024.
Côté Gold (1% NSR royalty): IAMGOLD
Corporation reported on January 23, 2024, that commissioning
activities at the Côté Gold Project are progressing and that
initial production remains on track for March, 2024.
Great Bear (2% NSR royalty): Kinross
Gold Corporation (“Kinross”) provided an update on activity at the
Great Bear Project in Ontario on February 14, 2024. Kinross
reported that the exploration program continues to make excellent
progress, execution planning for the advanced exploration program
is well underway, and permitting continues to advance on plan.
Kinross expects to provide the results of a PEA in the second half
of 2024.
Mara Rosa (1.0% NSR and 1.75% NSR
royalties): On January 24, 2024, Hochschild Mining PLC
(“Hochschild”) reported that construction and commissioning of the
Mara Rosa Project in Brazil is in the final stages with the first
gold pour expected in February, 2024. Hochschild expects gold
production of 83,000 to 93,000 ounces in 2024.
Manh Choh (3% NSR royalty and 28% NSR
royalty on silver): According to Kinross, the operator and 70%
owner of the Manh Choh Project in Alaska, as of February 14, 2024,
construction is essentially complete and first production is on
schedule for the second half of 2024. Kinross expects total
production at Manh Choh on a 100% basis to be approximately 900,000
gold equivalent ounces over a 4-5 year mine life.
2023 Overview
For the year ended December 31, 2023, we recorded net income and
comprehensive income attributable to Royal Gold stockholders (“net
income”) of $239.4 million, or $3.64 per basic share and $3.63 per
diluted share, as compared to net income of $239.0 million, or
$3.64 per basic share and $3.63 per diluted share, for the year
ended December 31, 2022.
For the year ended December 31, 2023, we recognized total
revenue of $605.7 million, which is comprised of stream revenue of
$418.3 million and royalty revenue of $187.4 million, at an average
gold price of $1,941 per ounce, an average silver price of $23.35
per ounce and an average copper price of $3.85 per pound, compared
to total revenue of $603.2 million, which is comprised of stream
revenue of $417.8 million and royalty revenue of $185.4 million, at
an average gold price of $1,800 per ounce, an average silver price
of $21.73 per ounce and an average copper price of $3.99 per pound,
for the year ended December 31, 2022.
The increase in our total revenue for the year ended December
31, 2023, compared with the year ended December 31, 2022, resulted
primarily from higher gold and silver prices when compared to the
prior year. Lower sales compared to the prior year due to lower
gold and copper sales at Mount Milligan, lower production from
Pueblo Viejo and the impact of the approximate 4 month suspension
of operations at Peñasquito commencing in June, 2023, due to a
labor strike, were partially offset by higher gold production at
the Cortez Legacy Zone and the new Cortez royalties acquired in
2022.
Cost of sales, which excludes depreciation, depletion and
amortization (“DD&A”), decreased to $90.5 million for the year
ended December 31, 2023, from $94.6 million for the year ended
December 31, 2022. The decrease was primarily due to lower gold and
copper sales at Mount Milligan and lower gold and silver sales at
Pueblo Viejo when compared to the prior year. This decrease was
partially offset by higher silver sales at Khoemacau when compared to the prior year. Cost of sales,
which excludes depreciation, depletion and amortization, is
specific to our stream agreements and is the result of our purchase
of gold, silver and copper for a cash payment. The cash payment for
gold from Mount Milligan is the lesser of $435 per ounce or the
prevailing market price of gold when purchased, while the cash
payment for our other streams is a set contractual percentage of
the gold, silver or copper (Mount Milligan) spot price near the
date of metal delivery.
General and administrative costs increased to $39.8 million for
the year ended December 31, 2023, from $34.6 million for the year
ended December 31, 2022. The increase was primarily due to higher
corporate costs and an increase in non-cash stock compensation
expense.
DD&A decreased to $164.9 million for the year ended December
31, 2023, from $178.9 million for the year ended December 31, 2022.
The decrease was primarily due to lower depletion rates at Pueblo
Viejo as a result of proven and probable mineral reserve increases
when compared to the prior year. The decrease was partially offset
by higher depletion expense at Khoemacau due to the ramp-up of production in 2023 and
additional depletion from the newly acquired royalties at Cortez in
2022.
There were no impairment charges on any of our stream or royalty
interests for the year ended December 31, 2023. During the year
ended December 31, 2022, we recognized an impairment loss of $4.3
million on the carrying value of a non-principal exploration stage
royalty due to new legal information received.
Interest and other expense increased to $30.9 million for the
year ended December 31, 2023, from $17.2 million for the year ended
December 31, 2022. The increase in the current period was primarily
attributable to higher interest expense as a result of higher
interest rates when compared to the prior period.
Income tax expense was $42.0 million for the year ended December
31, 2023, as compared to $32.9 million for the year ended December
31, 2022, which resulted in an effective tax rate of 14.9% in the
current period and 12.1% in the prior period. The effective tax
rates for the years ended December 31, 2023 and 2022, were
primarily impacted by the release of valuation allowances on
certain foreign deferred tax assets.
Net cash provided by operating activities totaled $415.8 million
for the year ended December 31, 2023, compared to $417.3 million
for the year ended December 31, 2022. The decrease was primarily
due to higher interest paid on the outstanding revolving credit
facility compared to the prior period. This decrease was partially
offset by higher proceeds received from our stream and royalty
interests, net of cost of sales, compared to the prior period.
Net cash used in investing activities totaled $2.8 million for
the year ended December 31, 2023, compared to net cash used in
investing activities of $922.9 million for the year ended December
31, 2022. The decrease over the prior period was primarily due to
the new royalty acquisitions during the year ended December 31,
2022.
Net cash used in financing activities totaled $427.4 million for
the year ended December 31, 2023, compared to net cash provided by
financing activities of $480.6 million for the year ended December
31, 2022. The change was primarily due to an increase in the debt
outstanding for the year ended December 31, 2022 of $575 million
that was used to fund acquisitions of our new royalty interests at
Cortez and the Great Bear Project, and the repayment of $325
million of debt outstanding during the current period.
At December 31, 2023, we had working capital of $95.0 million,
including $104.2 million of cash and equivalents. This compares to
working capital of $122.2 million, including $118.6 million of cash
and equivalents at December 31, 2022. The decrease in our working
capital was primarily due to a decrease in our available cash,
which resulted from increased debt repayments during the current
period.
Fourth Quarter 2023 Overview
In the fourth quarter, we recorded net income of $62.8 million,
or $0.95 per basic and diluted share, as compared to net income of
$56.4 million, or $0.86 per basic and diluted share, for the
quarter ended December 31, 2022. When compared to the prior year
quarter, the increase in net income was primarily attributable to
lower cost of sales and lower depreciation, depletion and
amortization expense, both largely driven by lower metal sales
during the current quarter, and the impairment of royalty interests
in the prior year quarter. Each of these were partially offset by a
decrease in our revenue, as discussed below.
For the fourth quarter, we recognized total revenue of $152.7
million, comprised of stream revenue of $98.3 million and royalty
revenue of $54.4 million at an average gold price of $1,971 per
ounce, an average silver price of $23.20 per ounce and an average
copper price of $3.70 per pound. This is compared to total revenue
of $163.0 million for the prior year period, comprised of stream
revenue of $108.9 million and royalty revenue of $54.1 million, at
an average gold price of $1,726 per ounce, an average silver price
of $21.17 per ounce and an average copper price of $3.63 per
pound.
The decrease in our total revenue resulted primarily from lower
gold and copper sales at Mount Milligan, lower gold and silver
sales at Pueblo Viejo and lower royalty revenue at Peñasquito.
These decreases were partially offset by higher sales from
Andacollo, higher revenue from Cortez, and higher gold and silver
prices compared to the prior year quarter.
Cost of sales, which excludes DD&A, decreased to $20.8
million for the fourth quarter, from $25.0 million for the prior
year period. The decrease, when compared to the prior year quarter,
was primarily due to lower gold and copper sales at Mount Milligan
and lower gold and silver sales at Pueblo Viejo. Cost of sales is
specific to our stream agreements and is the result of our purchase
of gold, silver and copper for a cash payment. The cash payment for
gold from Mount Milligan is the lesser of $435 per ounce or the
prevailing market price of gold when purchased, while the cash
payment for our other streams is a set contractual percentage of
the gold, silver or copper (Mount Milligan) spot price near the
date of metal delivery.
General and administrative costs increased to $9.7 million for
the fourth quarter, from $8.8 million for the prior year period.
The increase was primarily due to higher corporate costs and higher
non-cash stock compensation expense in the current period.
DD&A decreased to $40.0 million for the fourth quarter, from
$49.2 million for the three months ended December 31, 2022. The
decrease in the current quarter was primarily due to lower
contributions from Mount Milligan and Pueblo Viejo, and lower
DD&A rates for Pueblo Viejo in the current period compared to
the prior year period.
Interest and other expense was $6.0 million for the fourth
quarter, in line with $6.1 million for the prior year period. The
current all-in borrowing rate under our revolving credit facility
was 6.6% as of December 31, 2023, compared to 5.9% in the prior
year period.
For the fourth quarter, we recorded income tax expense of $13.4
million, compared with income tax expense of $12.6 million for the
three months ended December 31, 2022. The income tax expense
resulted in an effective tax rate of 17.5% in the current period,
compared with 18.2% for the three months ended December 31,
2022.
Net cash provided by operating activities totaled $101.1 million
for the fourth quarter, compared to $101.0 million for the prior
year period.
Net cash used in investing activities was nil for the fourth
quarter, compared to $206.4 million for the prior year period. The
change was primarily due to the acquisition of a new royalty
interest at Cortez in the prior year period.
Net cash used in financing activities totaled $99.8 million for
the fourth quarter, compared to net cash provided by financing
activities of $101.7 million for the prior year period. The
decrease was primarily due to reduced borrowings and repayment of
$75 million on our revolving credit facility during the current
year period.
Other Corporate Updates
Total Available Liquidity Increases to Approximately $845
Million
On December 6, 2023, Royal Gold repaid $75 million of
outstanding borrowings on the $1 billion revolving credit facility,
resulting in $250 million outstanding and $750 million available as
of December 31, 2023. Total liquidity at the end of the fourth
quarter increased to approximately $845 million, which consisted of
$95.0 million of working capital and the $750 million undrawn
amount available under the revolving credit facility.
Outlook for 2024
We expect stream segment sales of 47,000 to 52,000 GEOs for the
quarter ended March 31, 2024, and we expect to issue guidance for
2024 sales, depreciation, depletion and amortization expense, and
effective tax rate early in the second quarter of 2024.
Royal Gold has no material additional financing commitments.
Property Highlights
A breakdown of revenue for the Company’s stream and royalty
portfolio can be found on Table 1 for the quarters and calendar
years ended December 31, 2023 and December 31, 2022. Table 2 shows
historical stream metal sales and metal sales attributable to the
Company’s royalty interests for the Company’s principal stream and
royalty properties. Calendar year 2023 operator production
estimates for the Company’s principal stream and royalty properties
compared to actual production reported by the operators at these
properties can be found on Table 3. Stream segment purchases and
sales for the quarters and calendar years ended December 31, 2023
and December 31, 2022 and inventories for December 31, 2023 and
December 31, 2022 can be found on Table 4. Highlights at certain of
the Company’s principal producing and development properties during
2023 compared to 2022 are detailed in the Company’s Annual Report
on Form 10-K, for the year ended December 31, 2023, which is
expected to be filed with the Securities and Exchange Commission on
February 15, 2024.
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. As of
December 31, 2023, the Company owned interests on 178 properties on
five continents, including interests on 37 producing mines and 22
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.
Fourth Quarter and 2023 Call
Information:
Dial-In Numbers:
844-200-6205 (U.S.); toll free
833-950-0062 (Canada); toll free
646-904-5544 (International)
Access Code:
565180
Webcast URL:
www.royalgold.com under Investors, Events
& Presentations
Note: Management’s conference call reviewing the fourth
quarter and full year 2023 results will be held on Thursday,
February 15, 2024, at 12:00 pm Eastern Time (10:00 am Mountain
Time). The call will be webcast and archived on the Company’s
website for a limited time.
Additional Investor Information: Royal Gold routinely
posts important information, including information about upcoming
investor presentations and press releases, on its website under the
Investors tab. Investors and other interested parties are
encouraged to enroll at www.royalgold.com to receive automatic
email alerts for new postings.
Forward-Looking Statements: This press release includes
“forward-looking statements” within the meaning of U.S. federal
securities laws. Forward-looking statements are any statements
other than statements of historical fact. Forward-looking
statements are not guarantees of future performance, and actual
results may differ materially from these statements.
Forward-looking statements are often identified by words like
“will,” “may,” “could,” “should,” “would,” “believe,” “estimate,”
“expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,”
“continue,” “project,” or negatives of these words or similar
expressions. Forward-looking statements include, among others,
statements about the following: our expected financial performance
and outlook, including our first quarter 2024 guidance for stream
segment sales of GEOs; operators’ expected operating and financial
performance, including production, deliveries, mine plans,
environmental and feasibility studies, technical reports, mine
facilities, mineral resources and reserves, development, and asset
assessments; other expected developments relating to operators,
including the anticipated sale of KCM; and the timing of royalty
payments and metal deliveries, including deferred amounts at Pueblo
Viejo.
Factors that could cause actual results to differ materially
from these forward-looking statements include, among others, the
following: a lower-price environment for gold, silver, copper or
other metals; operating activities or financial performance of
properties on which we hold stream or royalty interests, including
variations between actual and forecasted performance, operators’
ability to complete projects on schedule and as planned, operators’
changes to mine plans and mineral reserves and mineral resources
(including updated mineral reserve and mineral resource
information), liquidity needs, mining and environmental hazards,
labor disputes, distribution and supply chain disruptions,
permitting and licensing issues, or operational disruptions;
contractual issues involving our stream or royalty agreements; the
timing of deliveries of metals from operators and our subsequent
sales of metal; risks associated with doing business in foreign
countries; increased competition for stream and royalty interests;
environmental risks, including those caused by climate change;
potential cyber-attacks, including ransomware; our ability to
identify, finance, value and complete acquisitions; adverse
economic and market conditions; impact of health epidemics and
pandemics; changes in laws or regulations governing us, operators
or operating properties; changes in management and key employees;
and other factors described in our reports filed with the
Securities and Exchange Commission, including Item 1A. Risk Factors
of our most recent Annual Report on Form 10-K. Most of these
factors are beyond our ability to predict or control. Other
unpredictable or unknown factors not discussed in this release
could also have material adverse effects on forward-looking
statements.
Forward-looking statements speak only as of the date on which
they are made. We disclaim any obligation to update any
forward-looking statements, except as required by law. 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, has been provided to us by the operators of the relevant
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 any such third-party information and refers the reader
to the public reports filed by the operators for information
regarding those properties.
Information in this press release concerning the
Khoemacau Copper Project was provided
to the Company by Cupric Canyon Capital L.P., the privately held
owner and developer of Khoemacau. Such
information may not have been prepared in accordance with
applicable laws, stock exchange rules or international standards
governing preparation and public disclosure of technical data and
information relating to mineral properties. 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 this third-party information, and investors are
cautioned not to rely unduly upon this information.
TABLE 1
Revenue by Stream and Royalty Interests
for the Fourth Quarter and Calendar Year 2023 and 2022
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
Stream/Royalty
Metal(s)
Current Stream/Royalty
Interest1
2023
2022
2023
2022
Stream:
Canada
Mount Milligan
Gold, copper
35% of payable gold and 18.75% of payable
copper
$
36,429
$
50,947
$
158,167
$
180,543
Rainy River
Gold, silver
6.5% of gold produced and 60% of silver
produced
10,127
8,484
38,794
31,826
Latin America
Pueblo Viejo
Gold, silver
7.5% of Barrick's interest in payable gold
and 75% of Barrick's interest in payable silver
$
13,661
$
21,631
$
76,247
$
85,863
Andacollo
Gold
100% of payable gold
13,519
7,782
48,920
47,347
Xavantina
Gold
25% of gold produced
8,199
4,932
25,395
18,427
Africa
Khoemacau
Silver
100% of payable silver
$
7,521
$
6,145
$
34,602
$
18,786
Wassa
Gold
10.5% of payable gold
8,238
8,312
32,815
31,152
Prestea and Bogoso
Gold
5.5% of payable gold
604
697
3,340
3,849
Total stream revenue
$
98,298
$
108,930
$
418,280
$
417,793
Royalty:
Canada
Voisey's Bay
Copper, nickel, cobalt
2.7% NVR
$
1,992
$
3,948
$
5,309
$
14,450
Red Chris
Gold, copper
1.0% NSR
-
-
3,170
3,432
LaRonde Zone 5
Gold
2.0% NSR
591
642
2,461
2,486
Canadian Malartic
Gold
1.0%-1.5% sliding-scale NSR
129
1,012
1,463
4,689
Williams2
Gold
0.97% NSR
242
184
(987)
882
Other-Canada
Various
Various
173
48
1,296
1,271
United States
Cortez
Legacy Zone
Gold
Approx. 9.4% GSR Equivalent
$
22,858
$
18,381
$
79,920
$
47,769
CC Zone
Gold
Approx. 0.45%-2.2% GSR Equivalent
4,952
2,790
14,626
2,790
Robinson
Gold, copper
3.0% NSR
3,619
3,358
9,109
11,659
Marigold
Gold
2.0% NSR
2,593
1,439
5,110
6,061
Leeville
Gold
1.8% NSR
2,170
963
5,712
4,004
Wharf
Gold
0.0%-2.0% sliding-scale GSR
1,169
628
3,630
2,485
Goldstrike
Gold
0.9% NSR
495
734
1,575
3,117
Other-United States
Various
Various
751
733
4,008
3,757
Latin America
Peñasquito
Gold, silver, lead, zinc
2.0% NSR
$
4,234
$
11,397
$
17,772
$
43,165
Dolores
Gold, silver
3.25% NSR (gold), 2.0% NSR (silver)
2,106
2,075
7,981
9,223
El Limon
Gold
3.0% NSR
1,158
1,293
5,280
5,705
Other-Latin America
Various
Various
-
130
456
1,203
Africa
Other-Africa
Various
Various
$
-
$
-
$
-
$
316
Australia
South Laverton
Gold
1.5% NSR, 4.0% NPI
$
2,006
$
1,478
$
7,283
$
6,172
King of the Hills
Gold
1.5% NSR
1,094
883
4,200
883
Gwalia Deeps
Gold
1.5% NSR
1,044
832
3,726
4,059
Meekatharra
Gold
0.45% or 1.5% NSR and A$10/oz
517
654
2,175
2,952
Bellevue
Gold
2.0% NSR
51
-
51
-
Other-Australia
Various
Various
424
179
1,576
1,606
Europe
Las Cruces
Copper
1.5% NSR (copper)
$
-
$
269
$
535
$
1,277
Total royalty revenue
$
54,368
$
54,050
$
187,437
$
185,413
Total revenue
$
152,666
$
162,980
$
605,717
$
603,206
1
Refer to Part I, Item 2, of the Company’s
Annual Report on Form 10-K for a full description of the Company’s
stream and royalty interests.
2
The Williams royalty revenue was negative
for the twelve months ended December 31, 2023, due to a one-time,
non-cash accounting adjustment during the quarter ended June 30,
2023, related to past production subject to our royalty
interest.
TABLE 2
Historical Stream Metal and Royalty
Sales for Principal Properties
Reported Production For The
Quarter Ended2
Property
Operator
Current Stream/ Royalty
Interest1
Metal(s)
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Stream:
Mount Milligan
Centerra
35% of payable gold
Gold
14,000
oz
11,300
oz
17,500
oz
15,200
oz
20,200
oz
18.75% of payable copper
Copper
2.4
Mlb
3.2
Mlb
1.7
Mlb
4.5
Mlb
4.5
Mlb
Pueblo Viejo
Barrick (60%)
7.5% of Barrick's interest in payable
gold
Gold
5,000
oz
6,800
oz
7,400
oz
7,900
oz
8,900
oz
75% of Barrick's interest in payable
silver3
Silver
171,100
oz
150,700
oz
362,200
oz
337,900
oz
319,100
oz
Andacollo
Teck
100% of payable gold
Gold
7,000
oz
7,500
oz
4,000
oz
7,000
oz
4,700
oz
Khoemacau
Khoemacau
Copper Mining
100% of payable silver
Silver
323,800
oz
386,100
oz
373,000
oz
404,100
oz
307,300
oz
Royalty:
Cortez
Nevada Gold Mines LLC
9.4% GSR on Legacy Zone4
Gold
111,900
oz
98,800
oz
68,100
oz
117,200
oz
109,200
oz
0.45%-2.2% GSR on CC Zone4
Gold
156,600
oz
120,000
oz
111,500
oz
106,600
oz
114,000
oz
Peñasquito
Newmont Corporation
2.0% NSR
Gold
25,900
oz
-
oz
48,100
oz
55,600
oz
164,300
oz
Silver
4.6
Moz
-
Moz
6.0
Moz
6.1
Moz
7.1
Moz
Lead
34.9
Mlb
-
Mlb
35.6
Mlb
36.4
Mlb
40.3
Mlb
Zinc
33.5
Mlb
-
Mlb
89.7
Mlb
99.2
Mlb
83.5
Mlb
1
Refer to Part I, Item 2, of the Company’s
Annual Report on Form 10-K for a full description of the Company’s
stream and royalty interests.
2
Reported production relates to the amount
of stream metal sales and the metal sales attributable to the
Company’s royalty interests for the stated periods and may differ
from the operators’ public reporting.
3
The Pueblo Viejo silver stream is
determined based on a fixed metallurgical recovery of 70% of silver
in mill feed.
4
Approximate blended royalty rates as
described in the press release “Royal Gold Announces Acquisition of
Additional Royalty Interests on the World-Class Cortez Gold Complex
in Nevada and Outlines Simplified Approach to Describing Royal
Gold’s Multiple Royalty Interests at Cortez” issued January 5,
2023.
TABLE 3
Operator’s Estimated and Actual
Production
Calendar Year 2023 Operator's
Production
Calendar Year 2023 Operator's
Production
Estimate1
Actual2
Stream/Royalty
Gold (oz)
Silver (oz)
Base Metals (lb)
Gold (oz)
Silver (oz)
Base Metals (lb)
Stream:
Andacollo3
22,000 - 27,000
23,400
Mount Milligan4
150,000 - 160,000
154,400
Copper
60 - 70 M
62 M
Pueblo Viejo5
470,000 - 520,000
N/A
335,000
N/A
Khoemacau6
1.5 - 1.7 M
1.5 M
Royalty:
Cortez7
940,000 - 1,060,000
893,000
Peñasquito8
N/A
N/A
123,000
13.8 M
Lead
N/A
86 M
Zinc
N/A
180 M
1
Production estimates received from the
operators are for calendar 2023. Please refer to our cautionary
language regarding forward-looking statements, as well as the Risk
Factors identified in Part I, Item 1A, of the Company’s Annual
Report on Form 10-K for information regarding factors that could
affect actual results.
2
Actual production figures shown are from
the operators and cover the period January 1, 2023 through December
31, 2023, unless otherwise noted in footnotes to this table. Such
amounts may differ from Royal Gold’s reported revenue and
production and are not reduced to show the production attributable
to our interests.
3
The estimated and actual production
figures shown for Andacollo are contained gold in concentrate.
Deliveries to Royal Gold are determined using a fixed gold
payability factor of 89%.
4
The estimated and actual production
figures shown for Mount Milligan are payable gold and copper in
concentrate. Deliveries to Royal Gold are determined using a fixed
payability factor of 97% for gold and a minimum payability factor
of 95% for copper.
5
The estimated and actual production
figures shown for Pueblo Viejo are payable gold in doré and
represent the 60% interest in Pueblo Viejo held by Barrick. Barrick
did not provide estimated or actual silver production. Deliveries
to Royal Gold are determined using fixed payability factors of
99.9% for gold and 99% for silver.
6
The estimated and actual production
figures for Khoemacau are payable
silver in concentrate. Deliveries to Royal Gold are determined
using a fixed silver payability factor of 90%.
7
The estimated and actual production
figures for Cortez include the entirety of the Cortez Complex.
Barrick reports production from the entirety of the Cortez Complex
and does not report production separately for the Legacy Zone and
CC Zone. Production estimates for the Legacy Zone are provided to
Royal Gold by Barrick and production estimates for 100% of the
Cortez Complex are publicly disclosed by Barrick.
8
The gold and silver production figures
shown for Peñasquito are payable gold and silver in concentrate and
doré. The lead and zinc production figures shown are payable lead
and zinc in concentrate. Actual production figures are for the
period January 1, 2023 through September 30, 2023, and no
production occurred during the third quarter of 2023 due to the
suspension of operations resulting from a strike action on June 7,
2023. Estimated production figures are not available as 2023
production guidance was withdrawn by Newmont on July 20, 2023, due
to the suspension of operations.
TABLE 4
Stream Summary
Three Months Ended
Three Months Ended
As of
As of
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Gold Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Inventory (oz)
Inventory (oz)
Mount Milligan
12,600
14,000
16,700
20,200
4,000
5,200
Pueblo Viejo
6,200
5,000
7,900
8,900
6,200
7,900
Andacollo
4,200
7,000
8,400
4,700
800
3,800
Other
12,700
13,100
11,300
12,200
4,200
4,100
Total
35,700
39,100
44,300
46,000
15,200
21,000
Three Months Ended
Three Months Ended
As of
As of
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Silver Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Inventory (oz)
Inventory (oz)
Khoemacau
375,200
323,800
298,700
307,300
135,300
105,900
Pueblo Viejo
223,000
171,100
337,900
319,100
223,000
337,800
Other
71,700
61,300
68,000
50,100
24,800
17,500
Total
669,800
556,200
704,600
676,500
383,100
461,200
Three Months Ended
Three Months Ended
As of
As of
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Copper Stream
Purchases (Mlb)
Sales (Mlb)
Purchases (Mlb)
Sales (Mlb)
Inventory (Mlb)
Inventory (Mlb)
Mount Milligan
2.5
2.4
3.6
4.5
—
0.9
Year Ended
Year Ended
December 31, 2023
December 31, 2022
Gold Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Mount Milligan
56,800
58,000
68,900
67,800
Pueblo Viejo
25,400
27,100
32,500
33,200
Andacollo
22,500
25,500
27,700
26,200
Other
48,600
48,500
44,600
44,300
Total
153,300
159,100
173,700
171,500
Year Ended
Year Ended
December 31, 2023
December 31, 2022
Silver Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Khoemacau
1,516,400
1,487,000
951,500
887,700
Pueblo Viejo
907,000
1,021,900
1,238,600
1,216,700
Other
277,500
270,100
238,600
225,400
Total
2,700,900
2,779,000
2,428,700
2,329,800
Year Ended
Year Ended
December 31, 2023
December 31, 2022
Copper Stream
Purchases (Mlb)
Sales (Mlb)
Purchases (Mlb)
Sales (Mlb)
Mount Milligan
10.9
11.8
14.8
14.8
ROYAL GOLD, INC.
Consolidated Balance Sheets
(Unaudited, in thousands except share
data)
December 31, 2023
December 31, 2022
ASSETS
Cash and equivalents
$
104,167
$
118,586
Royalty receivables
48,884
49,405
Income tax receivable
2,676
3,066
Stream inventory
9,788
12,656
Prepaid expenses and other
1,911
2,120
Total current assets
167,426
185,833
Stream and royalty interests, net
3,075,574
3,237,402
Other assets
118,057
111,287
Total assets
$
3,361,057
$
3,534,522
LIABILITIES
Accounts payable
$
11,441
$
6,686
Dividends payable
26,292
24,627
Income tax payable
15,557
16,065
Other current liabilities
19,132
16,209
Total current liabilities
72,422
63,587
Debt
245,967
571,572
Deferred tax liabilities
134,299
138,156
Other liabilities
7,728
7,738
Total liabilities
460,416
781,053
Commitments and contingencies
EQUITY
Preferred stock, $.01 par value,
10,000,000 shares authorized; and 0 shares issued
—
—
Common stock, $.01 par value, 200,000,000
shares authorized; and 65,631,760 and 65,592,597 shares
outstanding, respectively
656
656
Additional paid-in capital
2,221,039
2,213,123
Accumulated earnings
666,522
527,314
Total Royal Gold stockholders’ equity
2,888,217
2,741,093
Non-controlling interests
12,424
12,376
Total equity
2,900,641
2,753,469
Total liabilities and equity
$
3,361,057
$
3,534,522
ROYAL GOLD, INC.
Consolidated Statements of Operations
and Comprehensive Income
(Unaudited, in thousands except for per
share data)
Three Months Ended
Year Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Revenue
$
152,666
$
162,980
$
605,717
$
603,206
Costs and expenses
Cost of sales (excludes depreciation,
depletion and amortization)
20,785
24,972
90,523
94,642
General and administrative
9,741
8,815
39,761
34,612
Production taxes
2,360
2,256
7,294
7,021
Depreciation, depletion and
amortization
40,090
49,196
164,937
178,935
Impairment of royalty interests
—
4,287
—
4,287
Total costs and expenses
72,976
89,526
302,515
319,497
Operating income
79,690
73,454
303,202
283,709
Fair value changes in equity
securities
25
(282)
(147)
(1,503)
Interest and other income
2,603
2,167
9,952
7,832
Interest and other expense
(5,999)
(6,059)
(30,867)
(17,170)
Income before income taxes
76,319
69,279
282,140
272,868
Income tax expense
(13,356)
(12,579)
(42,008)
(32,926)
Net income and comprehensive income
62,963
56,700
240,132
239,942
Net income and comprehensive income
attributable to non-controlling interests
(183)
(327)
(692)
(960)
Net income and comprehensive income
attributable to Royal Gold common stockholders
$
62,780
$
56,373
$
239,440
$
238,982
Net income per share attributable to Royal
Gold common stockholders:
Basic earnings per share
$
0.95
$
0.86
$
3.64
$
3.64
Basic weighted average shares
outstanding
65,631,760
65,592,597
65,613,002
65,576,995
Diluted earnings per share
$
0.95
$
0.86
$
3.63
$
3.63
Diluted weighted average shares
outstanding
65,726,890
65,663,227
65,739,110
65,661,748
Cash dividends declared per common
share
$
0.400
$
0.375
$
1.525
$
1.425
ROYAL GOLD, INC.
Consolidated Statements of Cash
Flows
(Unaudited, in thousands)
Three Months Ended
Year Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Cash flows from operating activities:
Net income and comprehensive income
$
62,963
$
56,700
$
240,132
$
239,942
Adjustments to reconcile net income and
comprehensive income to net cash provided by operating
activities:
Depreciation, depletion and
amortization
40,090
49,196
164,937
178,935
Non-cash employee stock compensation
expense
2,354
1,779
9,696
8,411
Fair value changes in equity
securities
(25)
282
147
1,503
Deferred tax (benefit) expense
(458)
(2,079)
(6,469)
(19,836)
Impairment of royalty interests
—
4,287
—
4,287
Other
187
245
779
979
Changes in assets and liabilities:
Royalty receivables
(14,157)
(20,929)
521
4,683
Stream inventory
63
1,034
2,868
(1,049)
Income tax receivable
11,572
11,990
390
1,849
Prepaid expenses and other assets
(1,002)
(835)
(4,369)
(3,908)
Accounts payable
2,816
(646)
4,756
211
Income tax payable
(6,936)
(5,651)
(508)
(3,005)
Other liabilities
3,621
5,653
2,912
4,343
Net cash provided by operating
activities
$
101,088
$
101,026
$
415,792
$
417,345
Cash flows from investing activities:
Acquisition of stream and royalty
interests
—
(206,326)
(2,678)
(922,155)
Other
(2)
(45)
(151)
(721)
Net cash used in investing activities
$
(2)
$
(206,371)
$
(2,829)
$
(922,876)
Cash flows from financing activities:
Repayment of debt
(75,000)
(75,000)
(325,000)
(125,000)
Borrowings from revolving credit
facility
—
200,000
—
700,000
Net payments from issuance of common
stock
(10)
(9)
(1,383)
(1,447)
Common stock dividends
(24,649)
(22,987)
(98,567)
(91,925)
Other
(161)
(311)
(2,432)
(1,062)
Net cash (used in) provided by financing
activities
$
(99,820)
$
101,693
$
(427,382)
$
480,566
Net increase (decrease) in cash and
equivalents
1,266
(3,652)
(14,419)
(24,965)
Cash and equivalents at beginning of
period
102,901
122,238
118,586
143,551
Cash and equivalents at end of period
$
104,167
$
118,586
$
104,167
$
118,586
Schedule A – Non-GAAP Financial Measures and
Certain Other Measures
Overview of non-GAAP financial measures:
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
U.S. generally accepted accounting principles (“GAAP”). These
measures should not be considered in isolation or as a substitute
for measures prepared in accordance with GAAP. In addition, because
the presentation of these non-GAAP financial measures varies among
companies, these non-GAAP financial measures may not be comparable
to similarly titled measures used by other companies.
We have provided below reconciliations of our non-GAAP financial
measures to the comparable GAAP measures. We believe these non-GAAP
financial measures provide useful information to investors for
analysis of our business. We use these non-GAAP financial measures
to compare period-over-period performance on a consistent basis and
when planning and forecasting for future periods. We believe these
non-GAAP financial measures are used by professional research
analysts and others in the valuation, comparison and investment
recommendations of companies in our industry. Many investors use
the published research reports of these professional research
analysts and others in making investment decisions. The adjustments
made to calculate our non-GAAP financial measures are subjective
and involve significant management judgement. Non-GAAP financial
measures used by management in this release or elsewhere include
the following:
- Adjusted earnings before interest, taxes, depreciation,
depletion and amortization, or adjusted EBITDA, is a non-GAAP
financial measure that is calculated by the Company as net income
adjusted for certain items that impact the comparability of results
from period to period, as set forth in the reconciliation below.
The net income and adjusted EBITDA margins represent net income or
adjusted EBITDA divided by total revenue. We consider adjusted
EBITDA to be useful because the measure reflects our operating
performance before the effects of certain non-cash items and other
items that we believe are not indicative of our core
operations.
- Net debt (or net cash) is a non-GAAP financial measure that is
calculated by the Company as debt (excluding debt issuance costs)
as of a date minus cash and equivalents for that same date. Net
debt (or net cash) to trailing twelve months (TTM) adjusted EBITDA
is a non-GAAP financial measure that is calculated by the Company
as net debt (or net cash) as of a date divided by the TTM adjusted
EBITDA (as defined above) ending on that date. We believe that
these measures are important to monitor leverage and evaluate the
balance sheet. Cash and equivalents are subtracted from the GAAP
measure because they could be used to reduce our debt obligations.
A limitation associated with using net debt (or net cash) is that
it subtracts cash and equivalents and therefore may imply that
there is less Company debt than the most comparable GAAP measure
indicates. We believe that investors may find these measures useful
to monitor leverage and evaluate the balance sheet.
- Adjusted net income and adjusted net income per share are
non-GAAP financial measures that are calculated by the Company as
net income and net income per share adjusted for certain items that
impact the comparability of results from period to period, as set
forth in the reconciliations below. We consider these non-GAAP
financial measures to be useful because they allow for
period-to-period comparisons of our operating results excluding
items that we believe are not indicative of our fundamental ongoing
operations. The tax effect of adjustments is computed by applying
the statutory tax rate in the applicable jurisdictions to the
income or expense items that are adjusted in the period presented.
If a valuation allowance exists, the rate applied is zero.
- Free cash flow is a non-GAAP financial measure that is
calculated by the Company as net cash provided by operating
activities for a period minus acquisition of stream and royalty
interests for that same period. We believe that free cash flow
represents an additional way of viewing liquidity as it is adjusted
for contractual investments made during such period. Free cash flow
does not represent the residual cash flow available for
discretionary expenditures. We believe it is important to view free
cash flow as a complement to our consolidated statements of cash
flows.
- Cash general and administrative expense, or cash G&A, is a
non-GAAP financial measure that is calculated by the Company as
general and administrative expenses for a period minus non-cash
employee stock compensation expense for the same period. We believe
that cash G&A is useful as an indicator of overhead efficiency
without regard to non-cash expenses associated with employee stock
compensation.
Reconciliation of non-GAAP financial
measures to U.S. GAAP measures
Adjusted EBITDA, Adjusted EBITDA
margin, net debt, and net debt to TTM adjusted EBITDA:
Three Months Ended
Year Ended
December 31,
December 31,
(amounts in thousands)
2023
2022
2023
2022
Net income and comprehensive income
$
62,963
$
56,700
$
240,132
$
239,942
Depreciation, depletion and
amortization
40,090
49,196
164,937
178,935
Non-cash employee stock compensation
2,354
1,779
9,696
8,411
Impairment of royalty interests
—
4,287
—
4,287
Fair value changes in equity
securities
(25)
282
147
1,503
Other non-recurring adjustments
—
—
2,440
—
Interest and other, net
3,396
3,893
20,915
9,338
Income tax expense
13,356
12,579
42,008
32,926
Non-controlling interests in operating
income of consolidated subsidiaries
(183)
(327)
(692)
(960)
Adjusted EBITDA
$
121,951
$
128,389
$
479,583
$
474,382
Net income margin
41%
35%
40%
40%
Adjusted EBITDA margin
80%
79%
79%
79%
Three Months Ended
December 31,
September 30,
June 30,
March 31,
(amounts in thousands)
2023
2023
2023
2023
Net income and comprehensive income
$
62,963
$
49,499
$
63,600
$
64,071
Depreciation, depletion and
amortization
40,090
40,106
38,412
46,328
Non-cash employee stock compensation
2,354
2,763
1,943
2,636
Fair value changes in equity
securities
(25)
462
509
(799)
Other non-recurring adjustments
—
—
2,440
—
Interest and other, net
3,396
4,849
5,758
6,912
Income tax expense
13,356
10,752
2,029
15,871
Non-controlling interests in operating
income of consolidated subsidiaries
(183)
(162)
(151)
(196)
Adjusted EBITDA
$
121,951
$
108,269
$
114,540
$
134,823
Net income margin
41%
36%
44%
38%
Adjusted EBITDA margin
80%
78%
80%
79%
TTM adjusted EBITDA
$
479,583
Debt
$
245,967
Debt issuance costs
4,033
Cash and equivalents
(104,167)
Net debt
$
145,833
Net debt to TTM adjusted EBITDA
0.30x
Cash G&A:
Three Months Ended
Year Ended
December 31,
December 31,
(amounts in thousands)
2023
2022
2023
2022
General and administrative expense
$
9,741
$
8,815
$
39,761
$
34,612
Non-cash employee stock compensation
(2,354)
(1,779)
(9,696)
(8,411)
Cash G&A
$
7,387
$
7,036
$
30,065
$
26,201
Three Months Ended
December 31,
September 30,
June 30,
March 31,
(amounts in thousands)
2023
2023
2023
2023
General and administrative expense
$
9,741
$
9,927
$
9,093
$
11,000
Non-cash employee stock compensation
(2,354)
(2,763)
(1,943)
(2,636)
Cash G&A
$
7,387
$
7,164
$
7,150
$
8,364
TTM cash G&A
$
30,065
Adjusted net income and adjusted net
income per share:
Three Months Ended
Year Ended
December 31,
December 31,
(amounts in thousands, except per share
data)
2023
2022
2023
2022
Net income and comprehensive income
attributable to Royal Gold common stockholders
$
62,780
$
56,373
$
239,440
$
238,982
Fair value changes in equity
securities
(25)
282
147
1,503
Impairment of royalty interests
—
4,287
—
4,287
Discrete tax benefits
—
—
(8,462)
(18,755)
Great Bear Royalty acquisition foreign
currency loss
—
—
—
2,147
Other non-recurring adjustments
—
—
2,440
—
Tax effect of adjustments
7
(1,211)
(685)
(2,103)
Adjusted net income and comprehensive
income attributable to Royal Gold common stockholders
$
62,762
59,731
$
232,880
$
226,061
Net income attributable to Royal Gold
common stockholders per diluted share
$
0.95
$
0.86
$
3.63
$
3.63
Fair value changes in equity
securities
—
—
—
0.02
Impairment of royalty interests
—
0.07
—
0.07
Discrete tax benefits
—
—
(0.13)
(0.29)
Great Bear Royalty acquisition foreign
currency loss
—
—
—
0.03
Other non-recurring adjustments
—
—
0.04
—
Tax effect of adjustments
—
(0.02)
(0.01)
(0.03)
Adjusted net income attributable to Royal
Gold common stockholders per diluted share
$
0.95
$
0.91
$
3.53
$
3.43
Free cash flow:
Three Months Ended
Year Ended
December 31,
December 31,
(amounts in thousands)
2023
2022
2023
2022
Net cash provided by operating
activities
$
101,088
$
101,026
$
415,792
$
417,345
Acquisition of stream and royalty
interests
—
(206,326)
(2,678)
(922,155)
Free cash flow
$
101,088
$
(105,300)
$
413,114
$
(504,810)
Net cash used in investing activities
$
(2)
$
(206,371)
$
(2,829)
$
(922,876)
Net cash (used in) provided by financing
activities
$
(99,820)
$
101,693
$
(427,382)
$
480,566
Other measures
We use certain other measures in managing and evaluating our
business. We believe these measures may provide useful information
to investors for analysis of our business. We use these measures to
compare period-over-period performance and liquidity on a
consistent basis and when planning and forecasting for future
periods. We believe these measures are used by professional
research analysts and others in the valuation, comparison, and
investment recommendations of companies in our industry. Many
investors use the published research reports of these professional
research analysts and others in making investment decisions. Other
measures used by management in this release and elsewhere include
the following:
- Gold equivalent ounces, or GEOs, is calculated by the Company
as revenue (in total or by reportable segment) for a period divided
by the average LBMA PM fixing price for gold for that same
period.
- Depreciation, depletion, and amortization, or DD&A, per GEO
is calculated by the Company as depreciation, depletion, and
amortization for a period divided by GEOs (as defined above) for
that same period.
- Working capital is calculated by the Company as current assets
as of a date minus current liabilities as of that same date.
Liquidity is calculated by the Company as working capital plus
available capacity under the Company’s revolving credit
facility.
- Dividend payout ratio is calculated by the Company as dividends
paid during a period divided by net cash provided by operating
activities for that same period.
- Operating margin is calculated by the Company as operating
income for a period divided by revenue for that same period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214391256/en/
Alistair Baker Vice President Investor Relations and Business
Development (720) 554-6995
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