A World Class Streaming and Royalty Company

Royal Gold Reports Fourth Quarter 2019 and Fiscal Year Results

08/07/2019

DENVER--(BUSINESS WIRE)-- Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports fiscal year 2019 net income of $93.8 million, or $1.43 per basic share, on revenue of $423.1 million and operating cash flow of $253.2 million.

Summary of Fiscal 2019 Accomplishments

  • Strong financial performance with revenue of $423.1 million, operating cash flow of $253.2 million and earnings of $93.8 million
  • Robust operating volume of 335,000 GEOs1
  • Strengthened the balance sheet and repaid $370 million of convertible notes
  • Maintained available liquidity of approximately $900 million at June 30, 2019
  • Added a high-quality and long-life silver stream on the Khoemacau Project
  • Increased dividends paid to $67.5 million

“Fiscal 2019 was another successful year for Royal Gold in terms of operating and financial performance, the achievement of several important strategic objectives, and the delivery of a total return to shareholders of 11.7%,” commented Tony Jensen, President and CEO. “Our underlying portfolio performed well, which allowed us to further strengthen the balance sheet and continue our commitment to paying a growing and sustainable dividend. We successfully resolved the long-running royalty calculation dispute on the world-class Voisey’s Bay operation, and brought the exciting new Khoemacau development project into our portfolio. The combination of cash flow from our diverse portfolio, our strong balance sheet, and access to liquidity positions us well to further grow the portfolio in an active business development environment. I am confident that the Royal Gold team will continue to build on this strong foundation in the years to come.”

Fiscal Fourth Quarter Results

For the fiscal fourth quarter ended June 30, 2019 (“fourth quarter”), net income of $26.5 million, or $0.40 per share, was reported on revenue of $115.7 million and operating cash flow of $72.3 million. Fourth quarter net income included a loss on changes in fair value of equity securities of $3.5 million, or $2.8 million net of tax. Net income excluding the equity loss was $29.3 million, or $0.45 per basic share, net of tax.

Fourth Quarter Key Metrics Compared to Prior Year Quarter:

  • Revenue of $115.7 million, a decrease of 0.5%
  • Operating cash flow of $72.3 million, a decrease of 6.2%
  • Volume of 88,400 GEOs2, a decrease of 0.7%
  • Dividends paid of $17.4 million, an increase of 6.1%
  • Average gold price of $1,309 per gold ounce, an increase of 0.2%

Recent Developments

Closing of Khoemacau Copper Silver Project Financing

On July 18, 2019, Cupric Canyon Capital LP (“Cupric”), the majority owner of Khoemacau Copper Mining (Pty.) Limited (“KCM”), announced that it closed the project financing for the development of the Khoemacau Copper Silver Project (“Khoemacau”) in Botswana. In addition to the previously announced silver stream and subordinated debt facility provided by Royal Gold’s wholly owned subsidiary, RGLD Gold AG, and the senior secured debt facility from RK Mine Finance, Cupric announced that it added $85 million of equity to the project financing, bringing the total available funding to $650 million. The equity investment was provided from contributions of $70 million by Resource Capital Fund VII LP and $15 million from funds advised by Global Natural Resource Investments.

The project financing will be used to fund development of the Khoemacau Starter Project, which Cupric expects to produce approximately 62,000 tonnes of copper and 1.9 million ounces of silver per year over a 21-year mine life, as well as provide funding to advance work for a potential project expansion, and retirement of the $105 million pre-construction bridge facility.

Cupric also reported that it held an official groundbreaking ceremony on June 28 attended by the President of Botswana, His Excellency Dr. Mokgweetsi Masisi, during which President Masisi recognized the importance of Khoemacau to the economy of Botswana. As of July 18, Cupric reported that more than 700 people work at site, approximately 7.8% of the project capital cost (approximately $31 million) has been spent on early construction activity since the beginning of 2019, and 57% of the capital costs have been committed. This activity includes construction of the boxcuts for underground access, roads, a water pipeline and preparation for surface infrastructure.

Additionally, Cupric reported that KCM signed a 5-year, $560 million underground mining contract with Barminco, a subsidiary of international mining services group Ausdrill Limited. Barminco is proceeding with mobilization and readiness to commence work on the underground mine in December 2019.

Further Strengthening of Balance Sheet

The Royal Gold balance sheet continued to strengthen during the fiscal year. As of June 30, 2019, total debt was $214.6 million, a reduction of $136.5 million, and cash on hand increased by $30.7 million to $119.5 million, when compared to the prior fiscal year.

On June 17, 2019, the Company repaid $370 million of outstanding principal plus accrued interest on its 2.875% Convertible Senior Notes (“Notes”), using cash and $220 million drawn under the Revolving Credit Facility. The Notes provided a key source of low-cost capital that helped finance growth in the Company’s portfolio since the initial issue in June 2012.

On June 3, 2019, the Company amended the Revolving Facility Credit Agreement (“Revolving Credit Facility”) to extend the scheduled maturity date of the Revolving Credit Facility for an additional 2 years from June 2, 2022 to June 3, 2024, and reduce certain interest rates and fees payable. The Revolving Credit Facility is a strategic source of capital for the Company, as borrowings may be repaid at any time without premium or penalty. Extending maturity and lowering costs will provide the Company continued flexibility for financing potential future business development opportunities.

Mount Milligan

During the quarter, Centerra Gold Inc. (“Centerra”) reported that it began accessing water from newly permitted water sources in April, and that increased water availability from the spring melt allowed milling operations to return to targeted full capacity in early May. Mill throughput for the fourth quarter averaged 53,559 tonnes per calendar day, with average throughput of 60,576 tonnes per calendar day during June.

Centerra reported that weather conditions around the Mount Milligan mine, and elsewhere in British Columbia, continue to be exceptionally hot and dry, which has affected precipitation levels as well as water flows, and that water captured from the 2019 spring melt runoff was less than anticipated. Centerra reported that it continues to explore for additional groundwater sources but estimates that if additional sources are not available, and/or dry weather conditions persist in the second half of calendar 2019, it may need to take steps to manage production in the first calendar quarter of 2020 to conserve water resources until the 2020 spring melt.

Despite the dry conditions, Centerra reaffirmed Mount Milligan’s production guidance for the full 2019 calendar year, consisting of 155,000 to 175,000 ounces of payable gold production and 65 to 75 million pounds of payable copper production, and reported that it is continuing to work on a long-term plan to supply water to Mount Milligan after November 2021 and for the remaining mine life.

Rainy River

Operating performance at the Rainy River mine, owned and operated by New Gold Inc. (“New Gold”), continued to improve, and New Gold reported that the mill has achieved throughput, recovery and availability targets, with production of 66,013 ounces of gold and 66,157 ounces of silver for the quarter. New Gold reported that ore mined during the quarter included planned lower grades as operations continued the transition from Phase 1 to Phase 2 of the mine plan, and that it expects milled grades to be lower in the second half of the calendar year as Phase 1 ore is depleted.

New Gold reported that a 15-hole strategic exploration drilling program started in the quarter to test near-mine targets in the Intrepid North area. The drilling program is expected to conclude in the third calendar quarter of 2019. New Gold also reported that it is continuing to advance a comprehensive mine optimization study to increase cash flow generation with the expectation that an updated life of mine plan will be completed in the fourth calendar quarter.

New Gold expects that full year calendar 2019 production will meet annual guidance of between 250,000 and 275,000 gold equivalent ounces.

Peñasquito

On April 29, 2019, Newmont Goldcorp Corporation (“Newmont Goldcorp”) reported a temporary suspension of operations at Peñasquito due to a blockade by a trucking contractor and certain community leaders. Newmont Goldcorp subsequently reported on June 17, 2019 that dialogue with the blockade leaders had started, operations were beginning, and concentrate shipments from the mine and deliveries to the mine resumed. Newmont Goldcorp reported that operations ramped back up in June and concentrate inventory levels are now back to normal. This suspension resulted in significantly lower sales from Peñasquito during the quarter, yielding $1.1 million in royalty revenue compared to $5.4 million in the prior year period.

Newmont Goldcorp expects that grades for gold, silver and lead will improve during the last half of calendar 2019, zinc grades will remain unchanged, and production from Peñasquito will be 165,000 ounces of gold, 25 million ounces of silver, 180 million pounds of lead, and 245 million pounds of zinc for the period April 18 through December 31, 2019.

TriStar Royalty

On May 28, 2019, a subsidiary of the Company entered into an agreement with TriStar Gold Inc. and its subsidiaries (together “TriStar”) for an option to acquire a 1.0% net smelter return royalty on the Castelo de Sonhos Gold Project (“CDS”) owned by TriStar for an up-front investment of $500,000, and a further investment of $5.0 million to $8.0 million to be determined by reference to mineralized material at CDS if and when the option is exercised. On August 2, 2019, a subsidiary of the Company entered into a further agreement with TriStar to acquire up to a 1.5% net smelter return royalty on CDS for an investment of up to $7.25 million. Aggregate funds invested by the Company will be used by TriStar primarily to advance CDS to the feasibility stage, including advancing permitting activities. A Preliminary Economic Assessment for CDS was prepared by TriStar in 2018 and was based on a total of 2.0 million ounces of mineralized material at an average grade of approximately 1.0 gram per tonne.

Peak Gold Project

The Company announced in the second fiscal quarter that it would seek indications of value for its 40% indirect interest in the Peak Gold Project (“Peak Gold”) near Tok, Alaska, in conjunction with the joint venture partner, Contango Ore, Inc. While indications of interest were received, they did not meet the strategic or value expectations of the joint venture partners. In the meantime, the joint venture partners have maintained focus on moving Peak Gold forward with continued permitting and exploration activities, with a budget of approximately $7.3 million on a 100% basis for calendar year 2019. Royal Gold’s share of exploration expenses is expected to be in the range of $1.4 million to $1.6 million for the September 2019 quarter.

While Royal Gold remains committed to advancing Peak Gold, it will continue to review and evaluate strategic alternatives for its ownership in Peak Gold that more closely align with its core business.

Fiscal 2019 Overview

For the fiscal year ended June 30, 2019 (“fiscal 2019”), the Company recorded net income of $93.8 million, or $1.43 per basic share, as compared to a net loss of $113.1 million, or $(1.73) per basic share, for the fiscal year ended June 30, 2018 (“fiscal 2018”). The increase in earnings, when compared to fiscal 2018, was attributable to fiscal 2018 impairment charges of approximately $239.4 million, primarily on the Company’s royalty interest on the Pascua-Lama project. The effect of the impairment charges during fiscal 2018 was $2.74 per basic share, after taxes.

Fiscal 2019 revenue of $423.1 million was comprised of stream revenue of $305.8 million and royalty revenue of $117.2 million at an average gold price of $1,263 per ounce, an average silver price of $15.00 per ounce and an average copper price of $2.79 per pound, compared to total revenue for fiscal 2018 of $459.0 million, comprised of stream revenue of $324.5 million and royalty revenue of $134.5 million, at an average gold price of $1,297 per ounce, an average silver price of $16.72 per ounce and an average copper price of $3.06 per pound.

The decrease in fiscal 2019 revenue, compared with fiscal 2018, resulted primarily from a decrease in stream revenue and a decrease in the average gold, silver and copper prices. The decrease in stream revenue was primarily attributable to a decrease in gold and copper sales at Mount Milligan and a decrease in gold sales at Pueblo Viejo, which were partially offset by higher gold sales at Andacollo and Rainy River. The decrease in metal sales at Mount Milligan was anticipated based on previous announcements from Centerra and as reported earlier by the Company. Royalty revenue also decreased in fiscal 2019 compared to fiscal 2018 primarily due to a decrease in production at Peñasquito resulting from the suspension of operations referenced previously as well as lower metal prices.

Cost of sales decreased to $77.5 million for fiscal 2019 from $83.8 million for fiscal 2018. The decrease was primarily due to decreased gold and copper sales from Mount Milligan and a decrease in gold sales from Pueblo Viejo, partially offset by an increase in gold sales at Rainy River and Andacollo. Cost of sales, which excludes depreciation, depletion and amortization, is specific to the Company’s stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.

General and administrative expenses decreased to $30.5 million for fiscal 2019, from $35.5 million for fiscal 2018. The decrease during fiscal 2019 was primarily due to a decrease in legal costs attributable to settlement of the Voisey’s Bay royalty calculation dispute as announced during the fiscal first quarter of 2019.

On July 1, 2018, the Company adopted new Accounting Standards Update (“ASU”) guidance which impacts how changes in fair value of equity securities are recognized at each reporting period. As a result of the new ASU guidance, the Company recognized a loss on changes in fair value of equity securities of approximately $6.8 million for fiscal 2019. The new guidance will increase earnings volatility at each reporting period.

Production taxes increased to $4.1 million for fiscal 2019, up from $2.3 million for fiscal 2018. The increase is primarily due to an increase in mining proceeds tax associated with the Voisey’s Bay royalty, which resulted from resumption of revenue from the Voisey’s Bay royalty during the current period.

Interest and other income decreased to $2.3 million for fiscal 2019, from $4.2 million for fiscal 2018. In June 2018, Golden Star repaid its $20 million term loan facility with Royal Gold, thus reducing interest income during fiscal 2019.

Interest and other expense decreased to $29.7 million for fiscal 2019, from $34.2 million for fiscal 2018. The decrease was primarily attributable to lower interest expense as a result of a decrease in average amounts outstanding under the Revolving Credit Facility during fiscal 2019 when compared to fiscal 2018.

During fiscal 2019, the Company recognized income tax expense totaling $17.5 million compared with $14.8 million during fiscal 2018, which resulted in an effective tax rate of 16.4% during fiscal 2019, compared with (14.1%) in fiscal 2018. The effective tax rate for fiscal 2019 was primarily impacted by discrete true-ups related to the Tax Cuts and Jobs Act (the “Act”), partially offset by the implementation of the global intangible low-taxed income tax regime. The effective tax rate for fiscal 2018 was impacted by tax expense related to the Act and a one-time non-cash functional currency election, partially offset by benefits related to impairment charges.

At June 30, 2019, the Company had current assets of $154.7 million compared to current liabilities of $33.6 million, resulting in working capital of $121.1 million and a current ratio of 5 to 1. 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 and a current ratio of approximately 2 to 1. The increase in the current ratio was primarily attributable to an increase in the Company’s cash and equivalents, which is due to a decrease in investments and debt repayments when compared to the prior fiscal year.

Net cash provided by operating activities totaled $253.2 million for fiscal 2019, compared to $328.8 million for fiscal 2018. The decrease is primarily due to higher income taxes paid of $47.5 million over the prior period and a decrease in proceeds received from the Company’s stream and royalty interests, net of production taxes and cost of sales, of approximately $26.6 million. The increase in cash taxes paid during the current period is primarily attributable to an increase in required estimated tax payments made to various taxing authorities.

As of June 30, 2019, the Company had $780 million available and $220 million outstanding under its revolving credit facility. Working capital, combined with the Company’s undrawn revolving credit facility, resulted in approximately $900 million of total liquidity at June 30, 2019.

Fourth Quarter 2019 Overview

Fourth quarter revenue was $115.7 million compared to $116.2 million in the prior year quarter, with stream revenue totaling $90.3 million and royalty revenue totaling $25.4 million, compared to $83.5 million of stream revenue and $32.7 million of royalty revenue in the prior year quarter. The increase in stream revenue for the fourth quarter was primarily due to increased stream sales from Mount Milligan, Andacollo, Wassa and Rainy River, partially offset by lower gold and silver sales from Pueblo Viejo. The reduction in royalty revenue for the fourth quarter was due to a decrease in revenue from Peñasquito and other reductions in the royalty portfolio, the most significant of which was due to the expiry of the 1.0-5.0% sliding net smelter return royalty interest in the Mulatos mine upon reaching a cap of 2.0 million ounces of gold production early in the fourth quarter. The reduced royalty revenue for the quarter was partially offset by an increase in revenue from the Cortez royalty interests.

Fourth quarter cost of sales was approximately $23.8 million, compared to $22.2 million in the prior year quarter. The increase was primarily due to the higher contribution of gold and copper sales from Mount Milligan relative to total stream sales.

General and administrative expenses decreased to $6.4 million in the fourth quarter from $10.9 million during the prior year quarter. The decrease during the current period was primarily due to lower legal costs resulting from settlement of the Voisey’s Bay royalty calculation dispute.

During the fourth quarter, the Company recognized a loss of $3.5 million on changes in fair value of equity securities related to the holdings in Contango ORE Inc. and Rubicon Minerals Corporation. There was no recognized gain or loss in the prior year quarter as the ASU guidance was adopted by the Company after the end of the prior year quarter on July 1, 2018.

The Company recognized a fourth quarter income tax expense of $6.1 million, compared to an expense of $4.7 million during the prior year quarter, which resulted in an effective tax rate for the fourth quarter of 19.4% compared to 16.5% for the prior year quarter.

Property Highlights

A summary of fourth quarter and full fiscal year production and revenue reported by operators of the Company’s principal stream and royalty properties can be found on Table 1, and a summary of quarterly historical production reported by operators of the Company’s principal stream and royalty properties can be found on Table 2. Calendar year 2019 operator production estimates for these properties compared to actual production at those properties through June 30, 2019 can be found on Table 3. Results of the streaming business for the fourth 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 fourth quarter, compared to the prior year quarter, are detailed in the Quarterly Report on Form 10-Q.

________________
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 273,600 in fiscal 2019.
2 Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. GEOs, net of stream payments, were 70,200 in the fourth quarter compared to 72,000 in the prior fourth quarter.

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 June 30, 2019, the Company owns interests on 186 properties on five continents, including interests on 41 producing mines and 16 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 fourth quarter results will be held on Thursday, August 8, 2019, 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.

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

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 strengthening the balance sheet, paying a growing and sustainable dividend, growing the portfolio in an active business development environment, and management continuing to build on a strong foundation; Khoemacau Project, including additional project funding to be used for development and other purposes, production expectations over a 21-year mine life, and on-site development and construction work; flexibility to finance future business development opportunities; Mount Milligan, including water availability to achieve mill throughput, work to secure additional surface and groundwater sources for the life of the mine, availability of permits, production management until the 2020 spring melt, and expected gold and copper production through 2019; Rainy River, including continued operating improvements, improved throughput, recoveries and production, transition from Phase 1 to Phase 2 and expected lower mill grades, expectations for an exploration drilling program and updated mine plan, and 2019 gold production; Peñasquito, including resumption of operations and expectations for grades and 2019 production; TriStar transaction and use of funds to advance the CDS project; the Peak Gold Project, including continued evaluation of strategic alternatives and funding for continued permitting and exploration activities; potential future earnings volatility caused by accounting guidance on recognition of changes in equity securities fair value; changes in tax rates and taxes paid; and operators’ estimated and actual production for calendar year 2019 and future years, 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 or other technical 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 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, community, 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 2019, 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 any such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.

Information in this press release concerning the Khoemacau Copper Silver Project mine life, expected annual copper and silver production, and development and construction activity at site was provided to the Company by Cupric Canyon Capital L.P., the privately-held majority owner and developer of Khoemacau. Such information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. 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 this third-party information, and investors are cautioned not to rely upon this information.

TABLE 1

Fourth Quarter and Fiscal Year 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

 

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

Reported

 

 

 

Reported

Stream/Royalty

 

Metal(s)

 

Revenue

 

Production(1)

 

Revenue

 

Production(1)

Stream:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

 

 

$

37,057

 

 

 

 

$

32,145

 

 

 

 

 

Gold

 

 

 

 

23,100

oz.

 

 

 

 

20,700

oz.

 

 

Copper

 

 

 

 

2.5

Mlbs.

 

 

 

 

1.6

Mlbs.

Pueblo Viejo

 

 

 

$

24,340

 

 

 

 

$

27,563

 

 

 

 

 

Gold

 

 

 

 

12,400

oz.

 

 

 

 

13,200

oz.

 

 

Silver

 

 

 

 

553,000

oz.

 

 

 

 

616,300

oz.

Andacollo

 

Gold

 

$

18,248

 

14,100

oz.

 

$

16,289

 

12,400

oz.

Rainy River

 

 

 

$

5,074

 

 

 

 

$

3,737

 

 

 

 

 

Gold

 

 

 

 

3,500

oz.

 

 

 

 

2,300

oz.

 

 

Silver

 

 

 

 

36,400

oz.

 

 

 

 

42,600

oz.

Wassa

 

Gold

 

$

4,541

 

3,500

oz.

 

$

2,570

 

1,900

oz.

Other(2)

 

 

 

$

1,084

 

 

 

 

$

1,185

 

 

 

 

 

Gold

 

 

 

 

800

oz.

 

 

 

 

900

oz.

Total stream revenue

 

 

 

$

90,344

 

 

 

 

$

83,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

 

 

 

$

1,103

 

 

 

 

$

5,447

 

 

 

 

 

Gold

 

 

 

 

17,800

oz.

 

 

 

 

79,600

oz.

 

 

Silver

 

 

 

 

2.3

Moz.

 

 

 

 

5.0

Moz.

 

 

Lead

 

 

 

 

17.0

Mlbs.

 

 

 

 

26.6

Mlbs.

 

 

Zinc

 

 

 

 

(3.9)

Mlbs.

 

 

 

 

73.7

Mlbs.

Cortez

 

Gold

 

$

4,317

 

37,000

oz.

 

$

332

 

3,900

oz.

Other(2)

 

Various

 

$

19,930

 

N/A

 

 

$

26,967

 

N/A

 

Total royalty revenue

 

 

 

$

25,350

 

 

 

 

$

32,746

 

 

 

Total Revenue

 

 

 

$

115,694

 

 

 

 

$

116,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

Reported

 

 

 

 

Reported

Stream/Royalty

 

Metal(s)

 

Revenue

 

Production(1)

 

Revenue

 

Production(1)

Stream:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

 

 

$

101,010

 

 

 

 

$

133,534

 

 

 

 

 

Gold

 

 

 

 

61,700

oz.

 

 

 

 

77,700

oz.

 

 

Copper

 

 

 

 

8.3

Mlbs.

 

 

 

 

10.4

Mlbs.

Pueblo Viejo

 

 

 

$

82,844

 

 

 

 

$

95,055

 

 

 

 

 

Gold

 

 

 

 

41,000

oz.

 

 

 

 

49,200

oz.

 

 

Silver

 

 

 

 

2.1

Moz.

 

 

 

 

1.9

Moz.

Andacollo

 

Gold

 

$

69,264

 

55,000

oz.

 

$

57,413

 

44,400

oz.

Rainy River

 

 

 

$

22,142

 

 

 

 

$

8,710

 

 

 

 

 

Gold

 

 

 

 

15,800

oz.

 

 

 

 

6,000

oz.

 

 

Silver

 

 

 

 

144,700

oz.

 

 

 

 

53,600

oz.

Wassa

 

Gold

 

$

22,098

 

17,500

oz.

 

$

16,151

 

12,500

oz.

Other(2)

 

Gold

 

$

8,466

 

6,800

oz.

 

$

13,653

 

10,500

oz.

Total stream revenue

 

 

 

$

305,824

 

 

 

 

$

324,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

 

 

 

$

13,865

 

 

 

 

$

25,886

 

 

 

 

 

Gold

 

 

 

 

158,800

oz.

 

 

 

 

375,800

oz.

 

 

Silver

 

 

 

 

16.4

Moz.

 

 

 

 

20.9

Moz.

 

 

Lead

 

 

 

 

117.4

Mlbs.

 

 

 

 

122.2

Mlbs.

 

 

Zinc

 

 

 

 

216.2

Mlbs.

 

 

 

 

348.5

Mlbs.

Cortez

 

Gold

 

$

11,383

 

96,700

oz.

 

$

8,155

 

77,700

oz.

Other(2)

 

Various

 

$

91,984

 

N/A

 

 

$

100,485

 

N/A

 

Total royalty revenue

 

 

 

$

117,232

 

 

 

 

$

134,526

 

 

 

Total revenue

 

$

423,056

 

 

 

 

$

459,042

 

 

 

 

TABLE 2

Operators’ Historical Quarterly Production

 

 

 

 

 

Reported Production For The Quarter Ended1

Property

Operator

Stream/Royalty

 

Metal(s)

 

Jun. 30,
2019

 

Mar. 31,
2019

 

Dec. 31,
2018

 

Sep. 30,
2018

 

Jun. 30,
2018

Stream:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

Centerra

35% of payable gold

Gold

23,100

oz.

15,200

oz.

17,700

oz.

5,500

oz.

20,700

oz.

 

 

18.75% of payable copper

Copper

2.5

Mlbs.

2.6

Mlbs.

2.4

Mlbs.

.8

Mlbs.

1.6

Mlbs.

Pueblo Viejo

Barrick (60%)

7.5% of payable gold up to 990k oz.; 3.75% thereafter

Gold

12,400

oz.

10,400

oz.

8,900

oz.

9,200

oz.

13,200

oz.

 

 

75% of payable silver up to 50M oz.; 37.5% thereafter(3)

Silver

553,000

oz.

469,000

oz.

509,500

oz.

540,200

oz.

616,300

oz.

Andacollo

Teck

100% of payable gold

Gold

14,100

oz.

12,000

oz.

6,200

oz.

22,700

oz.

12,400

oz.

Rainy River

New Gold

6.50% of gold produced up to 230k oz.; 3.25% thereafter

Gold

3,500

oz.

5,000

oz.

2,900

oz.

4,500

oz.

2,300

oz.

 

 

60% of silver produced up to 3.1M oz.; 30% thereafter

Silver

36,400

oz.

40,900

oz.

36,000

oz.

31,500

oz.

42,600

oz.

Wassa

Golden Star

10.5% of payable gold up to 240k oz.; 5.5% thereafter(4)

Gold

3,500

oz.

4,400

oz.

5,300

oz.

4,300

oz.

1,900

oz.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty:

 

 

 

 

 

 

 

 

 

 

 

 

 

Peñasquito

Newmont

2.0% NSR

 

 

 

 

 

 

 

 

 

 

 

 

Goldcorp

 

Gold

17,800

oz.

37,300

oz.

53,400

oz.

50,300

oz.

79,600

oz.

 

 

 

Silver

2.3

Moz.

4.9

Moz.

5.0

Moz.

4.2

Moz.

5.0

Moz.

 

 

 

Lead

17.0

Mlbs.

34.5

Mlbs.

36.1

Mlbs.

29.9

Mlbs.

26.6

Mlbs.

 

 

 

Zinc

(3.9)

Mlbs.

72.8

Mlbs.

83.1

Mlbs.

64.2

Mlbs.

73.7

Mlbs.

Cortez

Barrick

GSR1, GSR2, GSR3, NVR1

Gold

37,000

oz.

32,700

oz.

19,900

oz.

7,000

oz.

3,900

oz.

FOOTNOTES
Tables 1 and 2

  1. Reported production for stream interests relates to the Company’s actual metal sales, and for royalty interests relates to the amount of metal sales that are subject to the Company’s royalty interests for the stated period as reported to the Company by operators of the mines.
  2. Individually, no stream or royalty included within the “Other” category contributed greater than 5% of the Company’s total revenue for either period. The “Other” category for streams is the Prestea gold stream.
  3. The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed.
  4. The 240k oz threshold includes production from Golden Star’s Prestea mine.

TABLE 3

Calendar 2019 Operator’s Production Estimate vs Actual Production

 

 

 

Calendar 2019
Operator’s Production

 

Calendar 2019
Operator’s Production

 

 

Estimate(1)

 

Actual(2,3)

 

 

Gold

 

Silver

 

Base Metals

 

Gold

 

Silver

 

Base Metals

Stream/Royalty

 

(oz.)

 

(oz.)

 

(lbs.)

 

(oz.)

 

(oz.)

 

(lbs.)

Stream:

 

 

 

 

 

 

 

 

 

 

 

 

Andacollo(4)

 

62,000

 

 

 

 

 

26,300

 

 

 

 

Mount Milligan(5)

 

155,000 - 175,000

 

 

 

 

 

81,800

 

 

 

 

Copper

 

 

 

 

 

65 - 75 million

 

 

 

 

 

31.8 million

Pueblo Viejo(6)

 

550,000 - 600,000

 

N/A

 

 

 

272,000

 

N/A

 

 

Rainy River(7)

 

245,000 - 270,000

 

245,000 - 270,000

 

 

 

127,600

 

126,500

 

 

Wassa(8)

 

150,000 - 160,000

 

 

 

 

 

80,300

 

 

 

 

Royalty:

 

 

 

 

 

 

 

 

 

 

 

 

Cortez GSR1

 

102,000

 

 

 

 

 

62,000

 

 

 

 

Cortez GSR2

 

98,000

 

 

 

 

 

7,600

 

 

 

 

Cortez GSR3

 

199,000

 

 

 

 

 

69,600

 

 

 

 

Cortez NVR1

 

168,200

 

 

 

 

 

58,800

 

 

 

 

Peñasquito(9)

 

165,000

 

25 million

 

 

 

12,000

 

1.7 million

 

 

Lead

 

 

 

 

 

180 million

 

 

 

 

 

12 million

Zinc

 

 

 

 

 

245 million

 

 

 

 

 

25 million

____________________

  1. Production estimates received from the operators are for calendar 2019 except for Peñasquito, which is for the period April 18 through December 31, 2019. There can be no assurance that production estimates received from the operators will be achieved. Please refer to the 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 the Company’s Fiscal 2019 Form 10-K for information regarding factors that could affect actual results.
  2. Actual production figures shown are from the operators and cover the period January 1, 2019 through June 30, 2019 except for Peñasquito, which is for the period April 18 through June 30, 2019.
  3. Actual production figures for Cortez are based on information provided to the Company by Barrick Gold Corporation, and all other actual production figures shown 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 and actual production figures for Rainy River are produced gold and silver in doré.
  8. The estimated and actual gold production figures shown for Wassa are payable gold in doré.
  9. The estimated and actual gold and silver production figures shown for Peñasquito are payable gold and silver in concentrate and doré. The estimated and actual lead and zinc production figures shown are payable lead and zinc in concentrate.

TABLE 4

Stream Summary

 

 

 

Three Months Ended

 

Three Months Ended

 

As of

 

As of

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Gold Stream

 

Purchases (oz.)

 

Sales (oz.)

 

Purchases (oz.)

 

Sales (oz.)

 

Inventory (oz.)

 

Inventory (oz.)

Mount Milligan

 

22,300

 

23,200

 

14,200

 

20,700

 

7,100

 

300

Pueblo Viejo

 

9,500

 

12,400

 

9,200

 

13,200

 

9,500

 

9,200

Andacollo

 

16,000

 

14,100

 

15,200

 

12,400

 

4,300

 

7,400

Wassa

 

4,300

 

3,500

 

3,700

 

1,900

 

1,500

 

2,500

Rainy River

 

4,300

 

3,500

 

2,800

 

2,300

 

1,800

 

800

Other

 

1,100

 

800

 

2,000

 

900

 

400

 

1,400

Total

 

57,500

 

57,500

 

47,100

 

51,400

 

24,600

 

21,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

As of

 

As of

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Silver Stream

 

Purchases (oz.)

 

Sales (oz.)

 

Purchases (oz.)

 

Sales (oz.)

 

Inventory (oz.)

 

Inventory (oz.)

Pueblo Viejo

 

475,600

 

553,000

 

540,200

 

616,300

 

475,600

 

540,200

Rainy River

 

36,200

 

36,400

 

32,300

 

42,600

 

36,500

 

32,300

Total

 

511,800

 

589,400

 

572,500

 

658,900

 

512,100

 

572,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

As of

 

As of

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Copper Stream

 

Purchases (Mlbs.)

 

Sales (Mlbs.)

 

Purchases (Mlbs.)

 

Sales (Mlbs.)

 

Inventory (Mlbs.)

 

Inventory (Mlbs.)

Mount Milligan

 

2.5

 

2.5

 

1.6

 

1.6

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

As of

 

As of

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Gold Stream

 

Purchases (oz.)

 

Sales (oz.)

 

Purchases (oz.)

 

Sales (oz.)

 

Inventory (oz.)

 

Inventory (oz.)

Mount Milligan

 

68,500

 

61,700

 

78,000

 

77,700

 

7,100

 

300

Andacollo

 

51,900

 

55,000

 

51,700

 

44,400

 

4,300

 

7,400

Pueblo Viejo

 

41,200

 

41,000

 

45,400

 

49,200

 

9,500

 

9,200

Wassa

 

16,600

 

17,500

 

14,500

 

12,500

 

1,500

 

2,500

Rainy River

 

16,800

 

15,800

 

6,800

 

5,900

 

1,800

 

800

Other

 

5,700

 

6,800

 

11,400

 

10,500

 

400

 

1,400

Total

 

200,700

 

197,800

 

207,800

 

200,200

 

24,600

 

21,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

As of

 

As of

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Silver Stream

 

Purchases (oz.)

 

Sales (oz.)

 

Purchases (oz.)

 

Sales (oz.)

 

Inventory (oz.)

 

Inventory (oz.)

Pueblo Viejo

 

2,007,000

 

2,071,700

 

1,886,737

 

1,883,300

 

475,600

 

540,200

Rainy River

 

148,900

 

144,700

 

85,900

 

53,600

 

36,500

 

32,300

Total

 

2,155,900

 

2,216,400

 

1,972,637

 

1,936,900

 

512,100

 

572,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

As of

 

As of

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Copper Stream

 

Purchases (Mlbs.)

 

Sales (Mlbs.)

 

Purchases (Mlbs.)

 

Sales (Mlbs.)

 

Inventory (Mlbs.)

 

Inventory (Mlbs.)

Mount Milligan

 

9.1

 

8.3

 

10.4

 

10.4

 

0.8

 

 

ROYAL GOLD, INC.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

June 30,
2019

 

June 30,
2018

ASSETS

 

 

 

 

 

 

Cash and equivalents

 

$

119,475

 

$

88,750

Royalty receivables

 

 

20,733

 

 

26,356

Income tax receivable

 

 

2,702

 

 

40

Stream inventory

 

 

11,380

 

 

9,311

Prepaid expenses and other

 

 

389

 

 

1,350

Total current assets

 

 

154,679

 

 

125,807

Stream and royalty interests, net

 

 

2,339,316

 

 

2,501,117

Other assets

 

 

50,156

 

 

55,092

Total assets

 

$

2,544,151

 

$

2,682,016

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Accounts payable

 

$

2,890

 

$

9,090

Dividends payable

 

 

17,372

 

 

16,375

Income tax payable

 

 

6,974

 

 

18,253

Withholding taxes payable

 

 

1,094

 

 

3,254

Other current liabilities

 

 

5,280

 

 

4,411

Total current liabilities

 

 

33,610

 

 

51,383

Debt

 

 

214,554

 

 

351,027

Deferred tax liabilities

 

 

88,961

 

 

91,147

Uncertain tax positions

 

 

36,573

 

 

33,394

Other long-term liabilities

 

 

 

 

13,796

Total liabilities

 

 

373,698

 

 

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 65,440,492 and 65,360,041 shares outstanding, respectively

 

 

655

 

 

654

Additional paid-in capital

 

 

2,201,773

 

 

2,192,612

Accumulated other comprehensive loss

 

 

 

 

(1,201)

Accumulated losses

 

 

(65,747)

 

 

(89,898)

Total Royal Gold stockholders’ equity

 

 

2,136,681

 

 

2,102,167

Non-controlling interests

 

 

33,772

 

 

39,102

Total equity

 

 

2,170,453

 

 

2,141,269

Total liabilities and equity

 

$

2,544,151

 

$

2,682,016

 

ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income

(In thousands except for per share data)

 

 

 

Three Months Ended

 

Years Ended

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Revenue

 

$

115,694

 

 

$

116,235

 

 

$

423,056

 

 

$

459,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes depletion, depreciation and amortization)

 

 

23,771

 

 

 

22,212

 

 

 

77,535

 

 

 

83,839

 

General and administrative

 

 

6,338

 

 

 

10,910

 

 

 

30,488

 

 

 

35,464

 

Production taxes

 

 

906

 

 

 

700

 

 

 

4,112

 

 

 

2,268

 

Exploration costs

 

 

1,624

 

 

 

3,849

 

 

 

7,158

 

 

 

8,946

 

Depreciation, depletion and amortization

 

 

42,331

 

 

 

42,317

 

 

 

163,056

 

 

 

163,696

 

Impairment of royalty interests

 

 

 

 

 

 

 

 

239,364

 

Total costs and expenses

 

 

74,970

 

 

 

79,988

 

 

 

282,349

 

 

 

533,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

40,724

 

 

 

36,247

 

 

 

140,707

 

 

 

(74,535

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value changes in equity securities

 

 

(3,482

)

 

 

 

 

(6,800

)

 

 

Interest and other income

 

 

1,231

 

 

 

756

 

 

 

2,320

 

 

 

4,170

 

Interest and other expense

 

 

(6,864

)

 

 

(8,268

)

 

 

(29,650

)

 

 

(34,214

)

Income (loss) before income taxes

 

 

31,609

 

 

 

28,735

 

 

 

106,577

 

 

 

(104,579

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(6,143

)

 

 

(4,728

)

 

 

(17,498

)

 

 

(14,772

)

Net income (loss)

 

 

25,466

 

 

 

24,007

 

 

 

89,079

 

 

 

(119,351

)

Net loss attributable to non-controlling interests

 

 

993

 

 

 

2,643

 

 

 

4,746

 

 

 

6,217

 

Net income (loss) attributable to Royal Gold common stockholders

 

$

26,459

 

 

$

26,650

 

 

$

93,825

 

 

$

(113,134

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

25,466

 

 

$

24,007

 

 

$

89,079

 

 

$

(119,351

)

Adjustments to comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized change in market value of available-for-sale securities

 

 

 

 

(1,222

)

 

 

 

 

(2,080

)

Comprehensive income (loss)

 

 

25,466

 

 

 

22,785

 

 

 

89,079

 

 

 

(121,431

)

Comprehensive loss attributable to non-controlling interests

 

 

993

 

 

 

2,643

 

 

 

4,746

 

 

 

6,217

 

Comprehensive income (loss) attributable to Royal Gold stockholders

 

$

26,459

 

 

$

25,428

 

 

$

93,825

 

 

$

(115,214

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share available to Royal Gold common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

0.40

 

 

$

0.41

 

 

$

1.43

 

 

$

(1.73

)

Basic weighted average shares outstanding

 

 

65,410,066

 

 

 

65,318,461

 

 

 

65,394,627

 

 

 

65,291,855

 

Diluted earnings (loss) per share

 

$

0.40

 

 

$

0.41

 

 

$

1.43

 

 

$

(1.73

)

Diluted weighted average shares outstanding

 

 

65,537,501

 

 

 

65,507,651

 

 

 

65,505,535

 

 

 

65,291,855

 

Cash dividends declared per common share

 

$

0.265

 

 

$

0.25

 

 

$

1.05

 

 

$

0.99

 

 

ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

Three Months Ended

 

Years Ended

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

25,466

 

 

$

24,007

 

 

$

89,079

 

 

$

(119,351

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

42,331

 

 

 

42,317

 

 

 

163,056

 

 

 

163,696

 

Amortization of debt discount and issuance costs

 

 

3,406

 

 

 

3,845

 

 

 

15,288

 

 

 

15,046

 

Non-cash employee stock compensation expense

 

 

1,107

 

 

 

2,322

 

 

 

6,617

 

 

 

8,279

 

Fair value changes in equity securities

 

 

3,482

 

 

 

 

 

6,800

 

 

 

Deferred tax benefit

 

 

3,584

 

 

 

(1,260

)

 

 

(1,745

)

 

 

(32,843

)

Impairment of royalty interests

 

 

 

 

 

 

 

 

239,364

 

Other

 

 

(2

)

 

 

3

 

 

 

(2

)

 

 

(197

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Royalty receivables

 

 

6,821

 

 

 

1,439

 

 

 

5,623

 

 

 

530

 

Stream inventory

 

 

1,033

 

 

 

3,388

 

 

 

(2,069

)

 

 

(1,428

)

Income tax receivable

 

 

6,087

 

 

 

1,110

 

 

 

(2,663

)

 

 

22,130

 

Prepaid expenses and other assets

 

 

319

 

 

 

(411

)

 

 

2,793

 

 

 

2,813

 

Accounts payable

 

 

(2,100

)

 

 

6,112

 

 

 

(6,426

)

 

 

5,173

 

Income tax payable

 

 

(9,279

)

 

 

5,822

 

 

 

(11,281

)

 

 

12,601

 

Withholding taxes payable

 

 

(1,767

)

 

 

(398

)

 

 

(2,160

)

 

 

(171

)

Uncertain tax positions

 

 

50

 

 

 

(3,222

)

 

 

3,180

 

 

 

7,767

 

Other liabilities

 

 

(8,281

)

 

 

(8,059

)

 

 

(12,924

)

 

 

5,415

 

Net cash provided by operating activities

 

$

72,257

 

 

$

77,015

 

 

$

253,166

 

 

$

328,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of stream and royalty interests

 

 

 

 

(10,800

)

 

 

(1,055

)

 

 

(11,812

)

Repayment of Golden Star term loan

 

 

 

 

20,000

 

 

 

 

 

20,000

 

Purchase of equity securities

 

 

 

 

(17,869

)

 

 

(3,573

)

 

 

(17,869

)

Other

 

 

(810

)

 

 

342

 

 

 

(967

)

 

 

(909

)

Net cash used in investing activities

 

$

(810

)

 

$

(8,327

)

 

$

(5,595

)

 

$

(10,590

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt

 

 

(370,000

)

 

 

(75,000

)

 

 

(370,000

)

 

 

(250,000

)

Borrowings from revolving credit facility

 

 

220,000

 

 

 

 

 

220,000

 

 

 

Net payments from issuance of common stock

 

 

387

 

 

 

(540

)

 

 

(1,595

)

 

 

(4,042

)

Common stock dividends

 

 

(17,363

)

 

 

(16,363

)

 

 

(67,477

)

 

 

(64,118

)

Debt issuance costs

 

 

(1,761

)

 

 

(83

)

 

 

(1,761

)

 

 

(180

)

Contributions from non-controlling interest

 

 

930

 

 

 

 

 

4,140

 

 

 

Other

 

 

(161

)

 

 

2,672

 

 

 

(153

)

 

 

3,009

 

Net cash used in financing activities

 

$

(167,968

)

 

$

(89,314

)

 

$

(216,846

)

 

$

(315,331

)

Net (decrease) increase in cash and equivalents

 

 

(96,521

)

 

 

(20,626

)

 

 

30,725

 

 

 

2,903

 

Cash and equivalents at beginning of period

 

 

215,996

 

 

 

109,376

 

 

 

88,750

 

 

 

85,847

 

Cash and equivalents at end of period

 

$

119,475

 

 

$

88,750

 

 

$

119,475

 

 

$

88,750

 

 

Alistair Baker
Director, Business Development
(720) 554-6995

Source: Royal Gold, Inc.

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