Royal Gold Provides Update on its Fiscal 2019 Third Quarter
09 April 2019 - 6:05AM
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
60,000 gold equivalent ounces comprised of approximately 48,000
gold ounces, 510,000 silver ounces and 1,200 tonnes of copper
related to its streaming agreements during its fiscal 2019 third
quarter ended March 31, 2019 (“third quarter”). The Company had
approximately 33,000 gold equivalent ounces in inventory at the end
of the third quarter consisting of 25,000 gold ounces, 590,000
silver ounces and 400 tonnes of copper.
RGLD Gold AG’s average realized gold, silver and copper prices
for the third quarter were $1,303 per ounce, $15.51 per ounce, and
$6,051 per tonne ($2.74 per pound), respectively, compared to
$1,219, $14.45, and $6,092 ($2.76 per pound), respectively, in the
second quarter ended December 31, 2018 (“second quarter”). Cost of
sales was approximately $319 per gold equivalent ounce for the
third quarter using the quarterly average silver-gold ratio of
approximately 84 to 1 and coppergold ratio of approximately 0.21
tonnes per ounce, compared to $327 per gold equivalent ounce in the
second 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.
Also during the quarter, on February 27, 2019, Centerra Gold
Inc. (“Centerra”) announced that it received an amendment to the
Mount Milligan environmental assessment certificate that permits
access to additional sources of surface water and groundwater, and
that it is upgrading the water pumping infrastructure to allow
access to these water sources prior to the spring melt, which is
expected in April. Centerra expects that the additional water
captured during the spring melt will be sufficient to return mill
processing operations at Mount Milligan to full capacity, and
following a ramp up of milling operations, mill throughput should
average 55,000 tonnes per day through the remainder of 2019. Due to
the usual timing difference between production at Mount Milligan
and the receipt of stream deliveries by RGLD Gold AG, it is
expected that any change in mill throughput will be reflected in
stream deliveries approximately five months later.
Conference Call
Royal Gold’s third quarter results will be released after the
market close on Wednesday, May 1, 2019, followed by a conference
call the next 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 2019 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. At
January 31, 2019, the Company owns interests on 191 properties on
five continents, including interests on 41 producing mines and 17
development stage projects. Royal Gold is publicly traded on the
Nasdaq Global Select Market under the symbol “RGLD.” The Company’s
website is located at www.royalgold.com.
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, inventory, average realized price per ounce
and per tonne, cost of sales per gold equivalent ounce, Centerra’s
expectations for additional water capture and return to full mill
processing capacity through the remainder of 2019, and expectations
that changes in Mount Milligan’s mill throughput will be reflected
in stream deliveries approximately five months later. 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/20190408005643/en/
Alistair BakerDirector, Business Development(720) 554-6995
Royal Gold (NASDAQ:RGLD)
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