Royal Gold Provides Update on its Fiscal 2018 Third Quarter
April 09 2018 - 4:10PM
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
63,000 gold equivalent ounces comprised of approximately 49,000
gold ounces, 272,000 silver ounces and 2,000 tonnes of copper
related to its streaming agreements during its fiscal 2018 third
quarter ended March 31, 2018 (“third quarter”). The Company had
approximately 26,000 gold ounces and 659,000 silver ounces in
inventory at March 31, 2018, an increase over the prior quarter due
to deliveries received late in the quarter.
RGLD Gold AG’s average realized gold, silver and copper prices
for the third quarter were $1,328 per ounce, $16.77 per ounce, and
$6,902 per tonne ($3.13 per pound), respectively, compared to
$1,272, $16.79, and $6,746 ($3.06 per pound) in the prior quarter,
respectively. Cost of sales was approximately $342 per gold
equivalent ounce for the third quarter using the quarterly average
silver-gold ratio of approximately 79 to 1 and gold-copper ratio of
approximately 0.19 tonnes per ounce, compared to $319 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.
The Company’s third quarter deliveries were not yet impacted by
the temporary shutdown of the mill processing facility at Mount
Milligan that occurred in early calendar 2018. Due to the timing of
shipments and deliveries of gold and copper, we expect the impact
of the temporary shutdown to be reflected in Royal Gold’s
mid-calendar 2018 results, as some of the deliveries of gold and
copper that were expected in the June through August 2018 period
will be deferred to a later date. Centerra restarted mill
operations on February 5, 2018 with a single ball mill. On March
23, 2018, Centerra reported that the second ball mill has been
restarted and that they expect to achieve average sustainable
throughput levels of 55,000 tonnes per day for the second half of
the calendar year.
Royal Gold repaid $75 million of the outstanding
balance on its revolving credit facility during the third quarter.
As of March 31, 2018, there was $75 million outstanding
on the revolver, resulting in $925 million available under the
Company’s credit facility.
The Company continues to evaluate the carrying value of its
0.78% to 5.45% sliding-scale net smelter return (“NSR”) gold
royalty and 1.09% NSR copper royalty on Barrick’s Pascua-Lama
project. Royal Gold’s carrying value was $416.8 million as
of December 31, 2017. The Company is currently assessing the
impact, if any, of Barrick’s recent reclassification of proven and
probable gold reserves1 of approximately 14 million ounces for the
Pascua-Lama project as measured and indicated resources.2
Royal Gold’s third quarter results will be released before the
market opens for trading on Thursday, May 3, 2018, followed by a
conference call that 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 Third 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. The
Company owns interests on 193 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, the impact of the
temporary shutdown and subsequent re-start of mill processing
operations at Mount Milligan, and the potential impact of the
Company’s evaluation of the carrying value of its interest at
Pascua-Lama, 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.
_______________________
1 Cautionary Note to U.S. Investors Concerning Estimates of
Proven and Probable Mineral Reserves and Measured and Indicated
Mineral Resources: The mineral reserve and resource estimates
reported by Barrick were prepared in accordance with Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards
for Mineral Resources and Mineral Reserves. Royal Gold has not
reconciled the reserve and resource estimates provided by Barrick
with definitions of reserves used by the U.S. Securities and
Exchange Commission. 2 The U.S. Securities and Exchange Commission
does not recognize the term “resources.” “Resources” are not
reserves under the SEC’s regulations but are categorized under the
securities law regulations of certain foreign jurisdictions in
order of increasing geological confidence into “inferred
resources,” “indicated resources” and “measured resources.”
Investors are cautioned that resources cannot be classified as
reserves unless and until it is demonstrated that they may be
legally and economically extracted and produced, and, as a result,
they should not assume that all or any part of mineralized material
in any of these categories will ever be converted into reserves.
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version on businesswire.com: https://www.businesswire.com/news/home/20180409006307/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
Royal Gold (NASDAQ:RGLD)
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