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
64,000 gold equivalent ounces comprised of approximately 51,000
gold ounces, 659,000 silver ounces and 700 tonnes of copper related
to its streaming agreements during its fiscal 2018 fourth quarter
ended June 30, 2018 (“fourth quarter”). The Company had
approximately 22,000 gold ounces and 573,000 silver ounces in
inventory at June 30, 2018.
RGLD Gold AG’s average realized gold, silver and copper prices
for the fourth quarter were $1,314 per ounce, $16.55 per ounce, and
$6,847 per tonne ($3.11 per pound), respectively, compared to
$1,328, $16.77, and $6,902 ($3.13 per pound) in the prior quarter,
respectively. Cost of sales was approximately $349 per gold
equivalent ounce for the fourth quarter using the quarterly average
silver-gold ratio of approximately 79 to 1 and copper-gold ratio of
approximately 0.19 tonnes per ounce, compared to $342 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.
Lower deliveries during the quarter, largely due to the
temporary shutdown of the mill processing facility at Mount
Milligan that occurred in early calendar 2018, were offset by a
slight inventory drawdown. Due to the timing of shipments and
deliveries of gold and copper, we expect the remaining impact of
the early calendar 2018 temporary shutdown to be reflected in Royal
Gold’s first quarter 2019 results, as some of the deliveries of
gold and copper that were expected in July and August 2018 will be
deferred to a later date.
On May 1, 2018, Centerra reported that milling operations
achieved a throughput of 40,000 tonnes per day, and that they
expect to achieve average sustainable throughput levels of 55,000
tonnes per day for the second half of the calendar year. On July 5,
2018, Centerra reported that satisfactory long-term water supply is
still subject to permitting and consultation. If approvals are not
obtained timely, throughput levels at Mount Milligan may need to be
reduced in the fourth calendar quarter of 2018.
Revolving Credit Facility
Royal Gold repaid the remaining $75 million
outstanding under its revolving credit facility during the fourth
quarter. As of June 30, 2018, the Company had $1 billion available
and no amounts outstanding under its revolving credit facility.
Receipt of Repayment of Golden Star Loan Facility
On June 29, 2018, a subsidiary of Golden Star Resources, Ltd.
repaid its $20 million term loan facility, including accrued
interest, to Royal Gold, well in advance of its May 2019
maturity.
Royal Gold has a streaming interest on 10.5% of the gold at
Wassa and Prestea until 240,000 ounces are delivered and 5.5%
thereafter. Through March 31, 2018, Wassa and Prestea have
delivered approximately 61,500 ounces of gold to Royal Gold.
Purchase of 1.75% NSR on Mara Rosa
On June 29, 2018, Royal Gold entered into an agreement to
purchase a 1.75% Net Smelter Return Royalty on Amarillo Gold’s Mara
Rosa gold project in Goias State, Brazil for $10.8 million. The
acquisition adds to a 1.00% Net Smelter Return Royalty previously
acquired by Royal Gold, increasing its total royalty interest over
the project area to a 2.75% Net Smelter Return. The Mara Rosa
Royalty Agreement includes a right of first refusal on future
financing opportunities for the project.
Purchase of Shares of Contango ORE
On June 28, 2018, Royal Gold acquired 682,556 shares of common
stock of Contango ORE, Inc. (“CORE”) for consideration of $26 per
share, pursuant to a Stock Purchase Agreement entered into on April
5, 2018 between Royal Gold and certain individual stockholders of
CORE. Royal Gold expects to acquire a second and final tranche of
127,188 shares of CORE common stock pursuant to the Stock Purchase
Agreement at a subsequent closing.
Conference Call
Royal Gold’s fourth quarter and fiscal year 2018 results will be
released after the market close on Wednesday, August 8, 2018,
followed by a conference call the following 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 Fourth 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 June
30, 2018, the Company owns interests on 191 properties on six
continents, including interests on 39 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.
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, average realized price per ounce and per
tonne, cost of sales per gold equivalent ounce, and the impact of
the temporary shutdown, subsequent re-start of mill processing
operations, and possible future reduction of throughput at Mount
Milligan 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; 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/20180709005284/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
Royal Gold (NASDAQ:RGLD)
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