Royal Gold, Inc. (NASDAQ: RGLD) (together with its
subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports
net income of $15.0 million, or ($0.23 per share), on revenue of
$100.0 million in its fiscal first quarter ended September 30, 2018
(“first quarter”). Earnings were primarily impacted by lower sales
as previously guided, lower metal prices, higher legal expenses and
the adoption of new accounting guidance for equity securities.
First Quarter Highlights Compared to Prior Year
Quarter:
- Revenue of $100.0 million, a decrease
of 11.1%
- Operating cash flow of $44.6 million, a
decrease of 37.7%
- Volume of 82,400 GEOs,1 a decrease of
6.4%
- Dividends paid of $16.4 million, an
increase of 4.4%
- Average gold price of $1,213 per ounce,
a decrease of 5.1%
“As expected, deliveries from Mount Milligan during the first
quarter were lower due to the suspension of operations earlier in
the calendar year associated with water availability issues,”
commented Tony Jensen, President and CEO. “Peñasquito and Pueblo
Viejo production were also lower but the operators expect
improvements in the December quarter with higher grade ore
anticipated.”
“Looking forward to long term value, we made important
advancements during the first quarter by resolving the Voisey’s Bay
royalty dispute and completing a preliminary economic assessment on
the Peak Gold project, and Mount Milligan and Rainy River mill
throughputs have recently improved to targeted levels. Our
financial position continues to strengthen with over $1.1 billion
in capacity to take advantage of new business opportunities.”
_______________________________1 Gold Equivalent Ounces (“GEOs”)
are calculated as revenue divided by the average gold price for the
same period. GEOs net of stream payments were 68,800 in the first
quarter, compared to 72,000 in the prior first quarter,
respectively.
Recent Developments
Mount Milligan
The temporary shutdown of the Mount Milligan processing facility
that occurred earlier in calendar 2018 due to a lack of sufficient
water sources resulted in a decrease in our gold and copper stream
deliveries from the project during the first quarter.
On September 14, 2018, Centerra Gold Inc. (“Centerra”) reported
that Mount Milligan received approval to access certain short-term
water sources until November 15, 2018. On October 31, 2018,
Centerra provided the following update: Centerra has made
applications for certain additional / extended water sources until
2021. Discussions are under way with regulators, First Nations and
other affected stakeholders regarding these applications and
Centerra expects that access to these sources may be granted as
early as the end of January 2019. However, these applications have
not yet been granted and as the flow from the approved short-term
water sources declines during the calendar fourth quarter and
during the remainder of the winter season, Centerra expects to
reduce Mount Milligan throughput to properly manage its water
balance until the water flow increases in the spring.
In addition, development of a long-term water supply plan and
methodology to assess water sources is under way, and applications
and government review of that methodology are expected to commence
within the fourth calendar quarter of 2018. Centerra’s expectation
is that its updated long-term water source (or sources) will be
available from and after 2021 for the entire mine life.
Processing operations were impacted during the first quarter by
unplanned shutdowns for primary crusher maintenance in July and
maintenance to repair transformer damage from a lightning strike in
September. Although these two events reduced operating days,
Centerra reaffirmed their annual guidance expectation. Plant
performance for the first quarter averaged 40,805 tonnes per
calendar day, or approximately 55,000 tonnes per operating day,
while throughput in August was 61,135 tonnes per operating day.
Resolution of Voisey’s Bay Royalty Dispute
On September 14, 2018, Royal Gold announced that the Labrador
Nickel Royalty Limited Partnership (“LNRLP”) entered into an
agreement with Vale Canada Limited (“Vale”) and certain of its
subsidiaries to comprehensively settle long-standing litigation
related to calculation of LNRLP’s 3% royalty on the sale of all
concentrates produced from the Voisey’s Bay mine in Newfoundland
and Labrador, Canada. A wholly owned indirect subsidiary of Royal
Gold is the general partner and 90% owner of LNRLP, with the
remaining 10% owned by a subsidiary of Altius Minerals Corporation
(“Altius”).
During the three months ended September 30, 2018, Royal Gold
recognized royalty revenue for Voisey’s Bay metal production
attributable to our 90% share of LNRLP of approximately $2.4
million and $2.0 million for the June 30 and September 30, 2018
quarters, respectively, based on a new royalty calculation method
effective for all production after April 1, 2018. We expect that
regular quarterly royalty payments will be received 45 days after
the end of each calendar quarter for the duration of the remaining
mine life.
Completion of Preliminary Economic Assessment for the Peak Gold
Project
On September 24, 2018, Royal Gold announced that the Peak Gold
joint venture, of which our Royal Alaska, LLC subsidiary owns a 40%
interest, completed a Preliminary Economic Assessment (“PEA”) on
the Peak Gold Project located near Tok, Alaska. In summary, the PEA
contemplates open pit mining 9.3 million tonnes of mineralized
material grading 3.99 grams per tonne gold, and presents attractive
economics at a base case gold price of $1,250 per ounce and a
silver price of $17.00 per ounce, with an eight year mine life,
24-month preproduction period and cash costs after sustaining
capital of approximately $470 per ounce. Further details of the PEA
are found in our September 24, 2018 press release entitled “Royal
Gold Announces Preliminary Economic Assessment for the Peak Gold
Project” on our website.
The estimates from the PEA must be regarded as preliminary and
do not provide assurance that a mine can or will be developed at
the Peak Gold Project. Substantial further work, including a
full-scale feasibility study, would be required to confirm and
refine these estimates. Accordingly, there can be no certainty that
the results of the PEA will be realized even if Peak Gold decides
to proceed with the mine plan described in the PEA at any point in
the future.
Royal Gold also owns two net smelter return royalties on the
Peak Gold Project.
Purchase of Shares of Contango Ore, Inc.
Subsequent to the quarter end on October 3, 2018, Royal Gold
acquired the second and final tranche of 127,188 shares of Contango
ORE, Inc. (“CORE”), our joint venture partner in the Peak Gold
Project, common stock 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. With the
purchase of this second tranche, Royal Gold owns 809,744 shares of
CORE common stock, representing approximately 13.2% of the shares
outstanding.
First Quarter 2019 Overview
First quarter revenue was $100.0 million compared to $112.5
million in the prior year quarter, with stream revenue totaling
$70.0 million and royalty revenue totaling $30.0 million. The
decrease in total revenue for the first quarter compared to the
prior year quarter was due to lower average gold, silver and copper
prices, as well as lower overall sales and production. Lower stream
sales from Mount Milligan and Pueblo Viejo were partially offset by
higher sales from Andacollo and initial contributions from Rainy
River, while a decrease in royalty revenue was due to lower
production at Peñasquito and Cortez.
First quarter cost of sales was approximately
$16.5 million, compared to $20.4 million in the prior
year quarter. The decrease was primarily due to lower stream sales
from Mount Milligan partially offset by higher stream sales at
Andacollo. Cost of sales is specific to our stream agreements and
is the result of the purchase of gold, silver and copper for a cash
payment.
General and administrative expenses increased to
$9.9 million in the first quarter from $6.9 million
during the prior year quarter. The increase during the current
period was primarily due to greater legal costs related to the
settlement of the Voisey’s Bay royalty calculation dispute.
Exploration costs attributable to Royal Gold’s controlling
membership interest in the Peak Gold Project increased to
$1.8 million in the first quarter from $1.2 million in
the prior year quarter. Royal Gold’s membership interest in the
Peak Gold JV was 40% and 35.8% during the quarters ended September
30, 2018 and 2017, respectively.
Depreciation, depletion and amortization expense increased
to $42.6 million in the first quarter from $39.7
million in the prior year quarter. The increase was primarily
due to additional depletion from the Voisey’s Bay royalty
interest.
As a result of the adoption of new Accounting Standards Update
(“ASU”) guidance, we recognized a loss on changes in fair value of
equity securities related to our holdings in CORE and Rubicon
Minerals Corporation of $1.5 million for the three months ended
September 30, 2018. The new ASU guidance, which impacts how we
recognize changes in fair value on our equity securities at each
reporting period, was adopted on July 1, 2018. The new guidance
could increase our earnings volatility in the future.
We recognized first quarter income tax expense of
$4.1 million, compared to $7.5 million during the prior year
quarter. Our effective tax rate for the first quarter was 25.6%
compared to 22.1% for the prior year quarter. The increase in the
effective rate was primarily due to fewer tax benefits attributable
to equity award vesting and exercise in the current quarter
compared to the prior year quarter.
At September 30, 2018, we had current assets of
$159.4 million compared to current liabilities of
$37.4 million, resulting in working capital of
$122.0 million. This compares to current assets of
$125.8 million and current liabilities of $51.4 million
at June 30, 2018, resulting in working capital of
$74.4 million.
During the first quarter, liquidity needs were met from
$83.5 million in net revenue and our available cash resources.
As of September 30, 2018, the Company had no amount
outstanding and the full $1 billion available under its revolving
credit facility. Working capital, combined with the Company’s
undrawn revolving credit facility, resulted in approximately $1.1
billion of total liquidity at September 30, 2018.
Property Highlights
A summary of first quarter and historical production reported by
operators of our stream and royalty properties can be found on
Tables 1 and 2. Calendar year 2018 operator production estimates
for certain properties in which we have interests compared to
actual production at those properties through September 30, 2018
can be found on Table 3. Results of our streaming business for the
first quarter, compared to the prior year quarter, can be found on
Table 4. Highlights at certain of the Company’s principal producing
and development properties during the first quarter, compared to
the prior year quarter, are detailed in our Quarterly Report on
Form 10-Q.
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
November 1, 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.
Note: Management’s conference call reviewing the first
quarter results will be held on Thursday, November 1, 2018, 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.
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
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 future production contributions
from Peñasquito, Pueblo Viejo, Mount Milligan and Rainy River,
future contributions from Voisey’s Bay, the results of the Peak
Gold preliminary economic assessment and attractive economics
presented therein, strengthening financial position, access to
capital and taking advantage of new business opportunities, the
impact of temporary shutdowns and restarts of mill processing
operations at Mount Milligan, the availability of sufficient water
resources to avoid future potential shutdowns and reduced
production at Mount Milligan, and operators’ production estimates
for calendar year 2018 and their estimates of reserves and
mineralized material. Net gold and metal reserves attributable to
Royal Gold’s stream, royalty and other interests are subject to
certain assumptions and, like reserves, do not reflect actual
ounces that will be produced. Like any stream, royalty or similar
interest on a non-producing or not-yet-in-development project, our
interests on development projects are subject to certain risks,
such as the ability of the operators to bring the projects into
production and operate in accordance with their feasibility studies
and mine plans, and the ability of Royal Gold to make accurate
assumptions regarding valuation and timing and amount of payments.
In addition, many of our interests are subject to risks associated
with conducting business in a foreign country, including
application of foreign laws to contract and other disputes, foreign
environmental laws and enforcement and uncertain political and
economic environments. 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; the
ability of operators to finance project construction to completion
and bring projects into production as expected, including
development stage mining properties, mine and mill expansion
projects and other development and construction projects;
operators’ delays in securing or inability to secure or 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 Company’s stream and royalty properties may
encounter; operators’ inability to access sufficient raw materials,
water or power; 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 in the properties where the Company
holds stream and royalty interests; errors or disputes in
calculating stream deliveries and royalty payments, or deliveries
or payments not made in accordance with stream and royalty
agreements; economic and market conditions; changes in laws
governing the Company and its stream and royalty interests or the
operators of the properties subject to such interests, 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.
Statement Regarding Third-Party Information: Certain
information provided in this press release, including production
estimates for calendar 2018, 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 such third-party information
and refers the reader to the public reports filed by the operators
for information regarding those properties.
TABLE 1
First Quarter Fiscal 2019
Revenue and Operators’ Reported
Production for Principal Stream and Royalty Interests
(In thousands, except reported
production in oz. and lbs.)
Three Months Ended Three Months Ended
September 30, 2018 September, 2017
Reported Reported
Stream/Royalty Metal(s)
Revenue Production1
Revenue Production1
Stream:
Andacollo Gold $ 27,743 22,700
oz. $ 12,337 9,700 oz. Pueblo Viejo $ 19,486 $ 25,403
Gold 9,200 oz. 12,900 oz. Silver 540,200 oz. 536,600 oz. Mount
Milligan $ 8,847 $ 31,952 Gold 5,500 oz. 18,600 oz. Copper 837,100
lbs. 2.6 Mlbs. Wassa and Prestea Gold $ 8,061 6,500 oz. $ 9,070
7,100 oz. Other2 $ 5,900 $ N/A Total stream revenue $ 70,037 $
78,762
Royalty:
Peñasquito $ 3,637 $ 7,796 Gold 50,300 oz. 133,300 oz.
Silver 4.2 Moz. 5.9 Moz. Lead 29.9 Mlbs. 36.2 Mlbs. Zinc 64.2 Mlbs.
92.4 Mlbs. Cortez Gold $ 603 7,000 oz. $ 2,988 29,900 oz. Other2
Various $ 25,715 N/A $ 22,930 N/A Total royalty revenue $ 29,955 $
33,714
Total Revenue $ 99,992 $
112,476
TABLE 2
Operators’ Historical
Production
Property Operator
Stream/Royalty Reported Production For The
Quarter Ended1
Metal(s) Sep. 30,
2018 Jun. 30, 2018 Mar.
31, 2018 Dec. 31, 2017
Sep. 30, 2017
Stream:
Mount Milligan3
Centerra 35% of payable gold Gold 5,500
oz. 20,700 oz. 25,800
oz. 12,600 oz. 18,600
oz. 18.75% of
payable copper Copper 0.8 Mlbs.
1.6 Mlbs. 4.3 Mlbs.
1.8 Mlbs. 2.6 Mlbs.
Pueblo Viejo Barrick (60%) 7.5% of gold produced up to 990,000
ounces; 3.75% therafter Gold 9,200
oz. 13,200 oz. 8,500
oz. 14,500 oz. 12,900
oz. 75% of payable
silver up to 50 million ounces; 37.5% therafter
Silver 540,200 oz. 616,300
oz. 260,800 oz. 469,600
oz. 536,600 oz. Andacollo
Teck 100% of gold produced Gold
22,700 oz. 12,400 oz.
5,400 oz. 17,000 oz.
9,700 oz. Wassa and Prestea4 Golden
Star 10.5% of gold produced up to 240,000 ounces;
5.5% therafter Gold 6,500 oz.
2,800 oz. 6,300 oz.
6,800 oz. 7,100 oz.
Royalty:
Peñasquito Goldcorp 2.0% NSR
Gold 50,300
oz. 79,600 oz. 91,200 oz.
71,100 oz. 134,000 oz.
Silver 4.2 Moz. 5.0 Moz.
5.0 Moz. 5.1 Moz.
5.9 Moz. Lead 29.9 Mlbs.
26.6 Mlbs. 26.0 Mlbs.
33.4 Mlbs. 36.2 Mlbs.
Zinc
64.2 Mlbs. 73.7 Mlbs.
88.0 Mlbs. 94.4 Mlbs.
92.4 Mlbs. Cortez Barrick
GSR1 and GSR2, GSR3, NVR1 Gold 7,000
oz. 3,900 oz. 18,900
oz. 25,000 oz. 29,900
oz.
FOOTNOTES
Tables 1 and 2
1 Reported production relates to the amount of metal
sales that are subject to our stream and royalty interests for the
stated period, as reported to us by operators of the mines. 2
Individually, no stream or royalty included within the “Other”
category contributed greater than 5% of our total revenue for
either period. The “Other” category for streams is our Rainy River
gold and silver stream. 3 Reflects the October 20, 2016 amendment
to our Mount Milligan streaming agreement. Prior to the amendment,
Royal Gold held a 52.25% gold stream.
4
The gold stream percentage at Wassa and Prestea increased to 10.5%
from 9.25%, effective January 1, 2018.
TABLE 3
Calendar 2018 Operator’s Production
Estimate vs Actual Production
Calendar 2018 Operator's Production Calendar 2018
Operator's Production Estimate1
Actual2,3 Gold Silver
Base Metals Gold
Silver Base Metals Stream/Royalty
(oz.) (oz.)
(lbs.) (oz.) (oz.)
(lbs.) Stream:
Andacollo4
66,700
43,300
Mount Milligan5 175,000 - 195,000
134,700
Copper
40 - 47 million
35.3 million Pueblo Viejo6
575,000 - 590,000 Not provided
415,000 Not provided Wassa and Prestea7
225,000 - 235,000
175,900
Royalty:
Cortez GSR1 48,300
29,100
Cortez GSR2 2,200
700
Cortez GSR3
50,500
29,800 Cortez NVR1
31,600
18,100
Peñasquito8 310,000 Not provided
220,000 14.1 million Lead
160 million
82.5
million Zinc
300 million
225.9 million 1 Production estimates received
from our operators are for calendar 2018. There can be no assurance
that production estimates received from our operators will be
achieved. Please refer to our cautionary language regarding
forward-looking statements and the statement regarding third party
information contained in this press release, as well as the Risk
Factors identified in Part I, Item 1A, of our Fiscal 2018 Form 10-K
for information regarding factors that could affect actual results.
2 Actual production figures shown are from our operators and cover
the period January 1, 2018 through September 30, 2018. 3 Actual
production figures for Cortez are based on information provided to
us by Barrick Gold Corporation, and actual production figures for
Andacollo, Mount Milligan, Pueblo Viejo, Peñasquito (gold) and
Wassa and Prestea are the publicly reported figures of the
operators of those properties. 4 The estimated and actual
production figures shown for Andacollo are contained gold in
concentrate. 5 The estimated and actual production figures shown
for Mount Milligan are payable gold and copper in concentrate. 6
The estimated and actual production figures shown for Pueblo Viejo
are payable gold in doré and represent Barrick’s 60% interest gold
produced from Pueblo Viejo. The operator did not provide estimated
silver production. 7 The estimated gold production figures shown
for Wassa and Prestea are payable gold in concentrate and doré. 8
The estimated and actual gold production figures shown for
Peñasquito are payable gold in concentrate and doré. The estimated
and actual lead and zinc production figures shown are payable lead
and zinc from concentrate. The operator did not provide estimated
silver production and the actual silver production figure shown is
payable silver in concentrate and doré.
TABLE 4
Stream Summary
Three Months Ended Three Months Ended As
of As of September 30, 2018 September 30,
2017 September 30, 2018 June 30, 2018 Gold
Stream Purchases (oz.) Sales (oz.)
Purchases (oz.) Sales (oz.)
Inventory (oz.) Inventory (oz.) Andacollo 15,300
22,700 13,000 9,600 — 7,400 Mount Milligan 12,600 5,500 18,700
18,600 7,400 300 Pueblo Viejo 8,900 9,200 10,500 12,900 8,900 9,200
Wassa and Prestea 6,500 6,500 7,400 7,100 3,900 3,900 Rainy River
3,600 4,500 NA NA - 800 Total 46,900 48,400 49,600 48,200 20,200
21,600
Three Months Ended Three Months Ended
As of As of September 30, 2018 September
30, 2017 September 30, 2018 June 30, 2018
Silver Stream Purchases (oz.) Sales (oz.)
Purchases (oz.) Sales (oz.) Inventory (oz.)
Inventory (oz.) Pueblo Viejo 509,500 540,200 470,000 536,000
509,500 540,200 Rainy River 35,200 31,500 — — 36,000 32,300 Total
544,700 571,700 470,000 536,000 545,500 572,500
Three
Months Ended Three Months Ended As of As
of September 30, 2018 September 30, 2017
September 30, 2018 June 30, 2018 Copper Stream
Purchases (Mlbs.) Sales (Mlbs.) Purchases
(Mlbs.) Sales (Mlbs.) Inventory (Mlbs.)
Inventory (Mlbs.) Mount Milligan 1.6 0.8 2.6 2.6 0.8 —
ROYAL GOLD, INC.
Consolidated Balance Sheets
(In thousands except share data)
September 30, 2018 June 30, 2018
ASSETS Cash and
equivalents $ 117,078 $ 88,750 Royalty receivables 25,106 26,356
Income tax receivable 6,381 40 Stream inventory 10,011 9,311
Prepaid expenses and other 854 1,350
Total current assets 159,430 125,807 Stream and royalty interests,
net 2,458,615 2,501,117 Other assets 54,821
55,092 Total assets $ 2,672,866 $ 2,682,016
LIABILITIES Accounts payable $ 5,055 $ 9,090 Dividends
payable 16,376 16,375 Income tax payable 8,012 18,253 Withholding
taxes payable 2,551 3,254 Other current liabilities 5,377
4,411 Total current liabilities 37,371 51,383
Debt 354,939 351,027 Deferred tax liabilities 91,356 91,147
Uncertain tax positions 36,659 33,394 Other long-term liabilities
13,275 13,796 Total liabilities
533,600 540,747 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 65,394,898 and 65,360,041 shares
outstanding, respectively 654 654 Additional paid-in capital
2,195,034 2,192,612 Accumulated other comprehensive loss - (1,201 )
Accumulated losses (92,467 ) (89,898 ) Total Royal
Gold stockholders’ equity 2,103,221 2,102,167 Non-controlling
interests 36,045 39,102 Total equity
2,139,266 2,141,269 Total liabilities
and equity $ 2,672,866 $ 2,682,016
ROYAL GOLD, INC.
Consolidated Statements of Operations and
Comprehensive Income
(In thousands except for per share
data)
Three Months Ended September 30, September 30, 2018
2017 Revenue $ 99,992 $ 112,476 Costs and expenses Cost of
sales 16,527 20,419 General and administrative 9,927 6,899
Production taxes 1,292 543 Exploration costs 4,362 3,203
Depreciation, depletion and amortization 42,551
39,692 Total costs and expenses 74,659
70,756 Operating income 25,333 41,720
Fair value changes in equity securities (1,468 ) — Interest and
other income 103 989 Interest and other expense (7,877 )
(8,617 ) Income before income taxes 16,091 34,092
Income tax expense (4,115 ) (7,544 ) Net income
11,976 26,548 Net loss attributable to non-controlling interests
3,032 2,083 Net income attributable to
Royal Gold common stockholders $ 15,008 $ 28,631
Net income $ 11,976 $ 26,548 Adjustments to comprehensive
income , net of tax Unrealized change in market value of
available-for-sale securities — 197
Comprehensive income 11,976 26,745 Comprehensive loss attributable
to non-controlling interests 3,032 2,083
Comprehensive income attributable to Royal Gold stockholders
$ 15,008 $ 28,828 Net income per share
available to Royal Gold common stockholders: Basic earnings per
share $ 0.23 $ 0.44 Basic weighted average shares
outstanding 65,374,866 65,235,496
Diluted earnings per share $ 0.23 $ 0.44 Diluted
weighted average shares outstanding 65,497,159
65,404,680
Cash dividends declared per common
share
$ 0.25 $ 0.24
ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended September 30, September 30, 2018
2017 Cash flows from operating activities: Net income $ 11,976 $
26,548 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation, depletion and
amortization 42,551 39,692 Amortization of debt discount and
issuance costs 3,903 3,679 Non-cash employee stock compensation
expense 2,444 2,373 Fair value changes in equity securities 1,468 —
Deferred tax benefit (1,681 ) (727 ) Other — (223 ) Changes in
assets and liabilities: Royalty receivables 1,250 (2,193 ) Stream
inventory (701 ) 89 Income tax receivable (6,341 ) (3,854 ) Prepaid
expenses and other assets 1,061 (1,654 ) Accounts payable (4,060 )
(985 ) Income tax payable (10,241 ) 6,035 Withholding taxes payable
(703 ) 37 Uncertain tax positions 3,266 2,493 Other liabilities
445 299 Net cash provided by operating
activities $ 44,637 $ 71,609 Cash flows from
investing activities: Acquisition of stream and royalty interests
(3 ) (5 ) Other (121 ) 100 Net cash (used in)
provided by investing activities $ (124 ) $ 95 Cash
flows from financing activities: Repayment of revolving credit
facility — (50,000 ) Net payments from issuance of common stock
(1,972 ) (3,529 ) Common stock dividends (16,376 ) (15,682 ) Other
2,163 55 Net cash used in financing
activities $ (16,185 ) $ (69,156 ) Net increase in cash and
equivalents 28,328 2,548 Cash and equivalents at beginning of
period 88,750 85,847 Cash and
equivalents at end of period $ 117,078 $ 88,395
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181031005869/en/
Royal GoldAlistair Baker, 720-554-6995Director, Business
Development
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