Royal Gold Announces Attributable Reserves
May 30 2019 - 04:19PM
Business Wire
Royal Gold, Inc. (NASDAQ: RGLD) (together with its
subsidiaries, “Royal Gold” or the “Company,” “we” or “our”)
announces updated estimates for ore reserves attributable1 to the
Company’s stream, royalty and similar interests as of
December 31, 2018. Reserve figures are provided by the
operators of properties on which the Company holds these interests
or are obtained by Royal Gold through publicly available
information.
Gold reserves of 3.8 million attributable ounces were 8.9% lower
than the prior calendar year primarily due to mining depletion at
Mount Milligan, Carmen de Andacollo and Pueblo Viejo. Silver
reserves of 50 million attributable ounces were 22.2% higher due to
the acquisition of the Khoemacau stream interest during the current
fiscal year. On an attributable gold equivalent basis2, gold makes
up approximately 66% of reserves while silver contributes
approximately 10%.
A summary of attributable reserves for all metals is presented
in the table below.
Metal Attributable Reserves
Units Dec.
31, 2017 Dec. 31, 2018
Change Gold M oz 4.2
3.8 -8.9% Silver
M oz 41 50
22.2% Copper M lb
460 440
-4.3% Lead M lb 72
73 1.2% Zinc
M lb 182 181
-0.5% Nickel M lb
41 39 -5.1%
Cobalt M lb 2.5
2.3 -8.0% Molybdenum
M lb 4.3
4.3 0.0%
On a gold equivalent basis, attributable reserves3 to Royal Gold
were 5.8 million ounces compared to 6.4 million ounces at calendar
year-end 2017. The decrease was due to generally lower Metal Prices
for the non-gold metals included in the calculation of gold
equivalent ounces, as shown in the table below, and mining
depletion experienced in the year. The impact of lower prices on
gold equivalent reserves was nearly equal to the effect of mining
depletion.
Metal Metal Prices Used for GEO
Calculation $ / Unit
Dec. 31, 2017 Dec. 31, 2018
Change Gold $/oz
1,291 1,279
-0.9% Silver $/oz 16.87
15.47 -8.3% Copper
$/lb 3.25
2.71 -16.6% Lead $/lb
1.13 0.91
-19.5% Zinc $/lb
1.50 1.14 -24.0% Nickel
$/lb 5.56
4.81 -13.5% Cobalt
$/lb 34.25 25.17
-26.5% Molybdenum $/lb
7.26 11.79
62.4%
Reserves and mineralized material4 subject to the Company’s
interests on each property where reserves have been reported by the
operators can be found on our website Metal Stream/Royalty
Portfolio. For further information about our stream, royalty and
similar interests, please see our Annual Report on Form 10-K, and
our other public reports.
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
March 31, 2019, the Company owns interests on 191 properties on
five continents, including interests on 43 producing mines and 17
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.
_________________________________________________________
1 Attributable means 1) in the case of our royalty
interests, the operators’ estimate of reserves subject to our
royalty multiplied by our royalty rate, and 2) in the case of our
stream interests, the operators’ estimate of reserves subject to
our stream multiplied by a) our stream rate and b) the result of i)
the metal price at calendar year end (“Metal Price”) less our
payment per unit delivered, divided by ii) the Metal Price. 2 Gold
equivalent basis is calculated as total attributable gold ounces
plus non-gold metals converted to gold equivalent ounces at the
corresponding Metal Price. 3 Attributable reserves do not consider
royalty interests from non-metals such as coal or potash. 4 The
U.S. Securities and Exchange Commission does not recognize this
term. Mineralized material is that part of a mineral system that
has potential economic significance but cannot be included in
proven and probable ore reserve estimates until further drilling
and metallurgical work is completed, and until other economic and
technical feasibility factors based upon such work have been
resolved. Typically, mineralization is presented as tons and grade,
but to give the reader an overall impression of the magnitude of
these mineral deposits we present an aggregate number of gold
equivalent ounces. Investors are cautioned not to assume that any
part or all of these gold equivalent ounces will ever be converted
into reserves or be recoverable by the operators of our properties.
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 estimates of reserves and mineralized material
provided by operators of our stream and royalty properties or
obtained by Royal Gold through publicly available information,
calculations of reserves and mineralized material attributable to
the Company’s stream, royalty and similar interests, and
calculations of attributable reserves on a gold equivalent basis.
Reserve estimates and calculations of reserves and mineralized
material attributable to Royal Gold’s royalty, stream and other
interests are subject to certain assumptions and do not reflect
actual ounces that will be produced. The estimation of mineralized
material involves greater uncertainty as to their existence and the
legal and economic feasibility of extraction than the estimation of
reserves. Conversion of mineralized material to mineral reserves
generally requires further economic study, such as a preliminary
feasibility study. Investors are cautioned not to assume that all
or any part of a mineral resource exists, or is economically or
legally mineable, or will ever be converted into mineral reserves.
Factors that could cause actual results to differ materially
include, among others, the price environment for gold and other
metals on which our stream and royalty interests are determined;
performance of and production at our stream and royalty properties,
and variation of actual production from the production estimates
and forecasts made by the operators of those properties; inability
of operators to finance project development and construction and
bring projects into production as expected or in accordance with
feasibility studies, especially development stage mining
properties, mine and mill expansion projects and other development
and construction projects; completion of feasibility studies;
changes in operators’ estimates of reserves and mineralized
material; revisions or inaccuracies in technical reports, reserves,
mineralized material, costs, mine life and mine life parameters and
economic and production estimates; changes in project parameters as
plans of the operators are refined; the results of current or
planned exploration activities; the risks inherent in the
construction and operation of mining properties; operators’ delays
in securing or inability to secure necessary governmental permits;
unexpected operating costs, decisions and activities of the
operators of the Company’s stream and royalty properties; changes
in operators’ mining and processing techniques or stream or royalty
calculation methodologies; resolution of regulatory and legal
proceedings; unanticipated grade, geological, seismic,
metallurgical, environmental, processing or other problems at the
properties; operators’ inability to access sufficient raw
materials, water or power; errors or disputes in calculating or
making stream deliveries and royalty payments under stream or
royalty agreements; contests to the Company’s stream and royalty
interests and title and other defects to the Company’s stream and
royalty properties; economic and market conditions; the liquidity
and future financial needs of the Company; decisions and activities
of the Company’s management affecting margins, incurrence of debt,
issuance of additional common stock, use of capital and changes in
strategy; the impact of future acquisitions and stream and royalty
financing transactions; risks associated with conducting business
in foreign countries, including application of foreign laws to
contract and other disputes, environmental laws, enforcement and
uncertain political and economic developments; and 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 more detail 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.
Statements made herein are as of the date hereof or as of the date
indicated and should not be relied upon as of any subsequent date.
The Company’s past performance is not necessarily indicative of its
future performance. The Company disclaims any obligation to update
any forward-looking statements. Readers are cautioned not to put
undue reliance on forward-looking statements.
Third-party information: Certain information in this
presentation has been provided to the Company by the operators of
properties subject to our stream and royalty interests, or is
publicly available information filed by these operators with
applicable securities regulatory bodies, including the Securities
and Exchange Commission. The Company 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 readers to the public reports filed by the
operators for information regarding those properties.
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Alistair BakerDirector, Business Development(720) 554-6995
Royal Gold (NASDAQ:RGLD)
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