Royal Gold Provides Update on its Fiscal 2019 First Quarter
October 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
57,000 gold equivalent ounces comprised of approximately 48,000
gold ounces, 572,000 silver ounces and 380 tonnes of copper related
to its streaming agreements during its fiscal 2019 first quarter
ended September 30, 2018 (“first quarter”). The Company had
approximately 20,000 gold ounces, 545,000 silver ounces and 350
tonnes of copper in inventory at September 30, 2018.
RGLD Gold AG’s average realized gold, silver and copper prices
for the first quarter were $1,221 per ounce, $15.25 per ounce, and
$5,800 per tonne ($2.63 per pound), respectively, compared to
$1,314, $16.55, and $6,847 ($3.11 per pound) in the prior quarter,
respectively. Cost of sales was approximately $288 per gold
equivalent ounce for the first quarter using the quarterly average
silver-gold ratio of approximately 81 to 1 and copper-gold ratio of
approximately 0.20 tonnes per ounce, compared to $349 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.
As previously announced and anticipated, reduced sales were
experienced during the first quarter from Mount Milligan due to the
temporary shutdown of the mill processing facility that occurred in
early calendar 2018 resulting from a lack of sufficient water
sources.
On September 14, 2018, Centerra reported that both ball mill
circuits at Mount Milligan had been operating from current water
sources through the third calendar quarter to that date, and that
approval had been received for the use of certain short-term water
sources through November 15, 2018. Centerra also reported that
it is seeking to extend and add certain temporary sources until
2020 but cautioned that the currently approved sources will provide
limited amounts of water in the near term, and that there can be no
assurances with respect to the sufficiency and availability of
additional water sources. Centerra indicated work was under way on
a long-term water solution from and after 2020 for the entire mine
life.
Conference Call
Royal Gold’s first quarter results will be released after the
market close on Wednesday, October 31, 2018, followed by a
conference call the next 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 2019 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
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. At
September 30, 2018, the Company owns interests on 191 properties on
six continents, including interests on 40 producing mines and 18
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 sales volume, inventory, average realized price per ounce
and per tonne, cost of sales per gold equivalent ounce and, in
respect of Centerra’s Mount Milligan operations, the impact on
Royal Gold’s financial results of the temporary shutdown,
subsequent re-start of mill processing operations, approvals
received for the use of certain short-term water sources,
applications for and approval of additional / extended water
sources to and after 2020, possible future reduction of throughput
at Mount Milligan due to insufficient water sources or other
reasons, and the effect thereof on gold and copper deliveries to
Royal Gold. 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; changes in estimates of reserves and
mineralization by the operators of the Company’s stream and royalty
properties; errors or disputes in calculating or accounting for
stream and royalty deliveries and payments, or deliveries and
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: https://www.businesswire.com/news/home/20181009005142/en/
Royal GoldAlistair Baker, 720-554-6995Director, Business
Development
Royal Gold (NASDAQ:RGLD)
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