Royal Gold, Inc. (NASDAQ: RGLD) (together with its
subsidiaries, “Royal Gold,” the “Company,” “we,” “us,” or “our”)
reports net income of $332.0 million, or $5.04 per share, for the
year ended December 31, 2024, on revenue of $719.4 million and
operating cash flow of $529.5 million. Adjusted net income1 was
$346.4 million, or $5.26 per share.
For the quarter ended December 31, 2024 ("fourth quarter"), we
reported net income of $107.4 million, or $1.63 per share, on
revenue of $202.6 million and operating cash flow of $141.1
million. All annual and quarterly figures represent record results
for the Company.
With respect to our 2024 guidance, we achieved the top end of
our guidance range for gold sales, and exceeded our guidance ranges
for copper sales and sale of other metals. Depletion, depreciation
and amortization ("DD&A") expense, and effective tax rate were
within the guidance ranges. Silver sales were slightly below the
guidance range, which is in line with our previous disclosure.
2024 Highlights:
- Record revenue of $719.4 million, record operating
cash flow of $529.5 million, and record earnings of $332.0
million, increases of 19%, 27%, and 39%,
respectively, over the prior year
- Revenue split: 76% gold, 12% silver, 9%
copper
- Sales volume of 301,500 GEOs2
- Sustained high adjusted EBITDA margin1 of
81%
- Repaid $250 million of debt, reducing total debt to
$0
- Paid dividend of $1.60 per share, and increased the
2025 dividend by 12.5% to $1.80 per share, the 24th
consecutive annual increase
- Acquired royalty interests on the Back River Gold
District and Cactus Project
- Recognized first revenue contributions from the new Mara
Rosa, Côté Gold and Manh Choh mines
- Entered into support agreement to incentivize investment that
may provide a basis for mine life extension at Mount Milligan
beyond 2035
“Our business is designed to deliver leverage to gold, and our
2024 results demonstrate the direct relationship between a strong
and rising gold price and Royal Gold's financial performance,”
commented Bill Heissenbuttel, President and CEO of Royal Gold.
“This leverage is evidenced by the impressive percentage increases
in operating cash flow and net income, both of which exceeded that
of revenue. The foundation of our performance is our diversified
portfolio. Many of the long-standing contributors in our portfolio
performed well in 2024, and organic growth from several assets
provided new revenue contributions during the year.
"The strong financial performance allowed us to repay $250
million of debt during the year, pay out $105 million of dividends,
and reinvest in our business with the acquisition of royalty
interests on the Back River Gold District and Cactus Project,"
continued Mr. Heissenbuttel. "These two acquisitions are consistent
with our strategy of adding exposure to high-quality assets with
growth potential, operated by experienced management teams, in safe
and mining-friendly jurisdictions."
1
Adjusted net income, adjusted net income
per share and adjusted EBITDA margin are non-GAAP financial
measures. See Schedule A of this press release for additional
information, including a detailed description of adjustments to net
income.
2
See Schedule A of this press release for
additional information about gold equivalent ounces, or GEOs.
Recent Portfolio Developments
Principal Property Updates
Notable recent updates as reported by the operators of our
Principal Properties include:
Increased Near Term Production Expected and Continued
Progress on Long Term Projects at Cortez
On November 22, 2024, Barrick Gold Corporation ("Barrick")
provided an update on various projects currently underway, as well
as a production outlook for the Cortez Complex in Nevada. With
respect to the near term, Barrick is expecting overall gold
production from within the complex to increase with the mining of
ore in the Crossroads pit following waste stripping, as well as the
continued ramp-up at the Goldrush underground mine, which is
expected to produce 400,000 ounces of gold per year at full
production levels. Barrick is forecasting production from the
Cortez Complex of over one million ounces in 2027, largely driven
by these increases.
Relating to the longer-term potential within the Cortez Complex,
Barrick reported several developments, including the receipt of the
Record of Decision ("ROD") for the Robertson Project in
mid-November, 2024, a significant increase in gold resources at the
Fourmile Project after incorporating results from recent drilling
(to 1.4 million ounces of indicated resources and 6.4 million
ounces of inferred resources), and further exploration progress at
the Hanson target at Cortez Hills Underground and the Swift target
to the west of the Pipeline deposit. According to Barrick, a
preliminary economic assessment for the Fourmile Project, which
covers approximately one third of the known orebody as defined by
drilling to date, indicates the potential for gold production
levels exceeding 500,000 ounces per year.
Barrick indicated that it intends to advance these projects with
feasibility work ongoing for the Robertson open pit project, a
pre-feasibility study planned to begin in 2025 at the Fourmile
Project, and continued exploration at the Hanson and Swift
targets.
On February 12, 2025, Barrick announced 2025 gold production
guidance of approximately 680,000 to 765,000 ounces (100% basis) at
the Cortez Complex.
Mill Throughput Returned to Planned Level Through the Second
Half of 2024 at Andacollo
On January 20, 2025, Teck Resources Limited ("Teck") reported
that the Andacollo mine in Chile continues to operate in extreme
drought conditions, and that risk mitigation plans to increase
water availability through increased well field capacity were
implemented in 2024, enabling mill throughput rates consistent with
the mine plan through the second half of 2024.
Further, Teck provided copper production guidance, and expects
copper production to increase from approximately 39,700 tonnes in
2024 to a range of 45,000 and 55,000 tonnes per year in each of
2025, 2026 and 2027, before declining to a range of 35,000 to
45,000 tonnes in 2028. According to Teck, the annual production
guidance reflects ongoing drought conditions that remain a risk to
production. Gold and copper grades have been relatively well
correlated at Andacollo and gold production has tended to track
copper production, although there can be no assurance that these
correlations will continue in the future.
Timeline Provided to Achieve Full Throughput of Expanded
Plant at Pueblo Viejo
On November 22, 2024, Barrick provided an update on the ramp-up
of the plant expansion and a production outlook for the Pueblo
Viejo mine in the Dominican Republic. Barrick outlined several
projects that are intended to achieve planned throughput and
recoveries, and Barrick expects plant throughput to increase
steadily from 2024 levels and reach the expanded 14 million tonne
per year capacity in 2028. As part of this throughput optimization,
Barrick noted a planned 35-day impact to production in the first
quarter of 2025 to complete a thickener optimization. Barrick
expects gold recovery to increase from approximately 80% at the end
of 2024 to 90% by the end of 2026, and Barrick reported that a
project to improve silver recovery is expected to be complete by
the fourth quarter of 2025.
Barrick further reported that gold production is expected to
increase steadily from approximately 600,000 ounces in 2024 to over
800,000 ounces in 2026 (100% basis). Barrick did not provide
forecasts for silver production.
In conjunction with the plant expansion project, Barrick
reported that it is currently advancing work on the new El Naranjo
tailings storage facility ("TSF"). Barrick also reported that the
timeline for commissioning the El Naranjo TSF is by late 2029, with
the facility expected to provide storage capacity for 8 additional
years beyond the current mine life, which is expected to be to
2046.
On February 12, 2025, Barrick announced 2025 gold production
guidance of 370,000 to 410,000 ounces for its 60% share of Pueblo
Viejo.
Other Property Updates
Notable recent updates as reported by the operators of other
select portfolio assets include:
Producing Properties
Bellevue (2% NSR royalty): On January
28, 2025, Bellevue Gold Limited (“Bellevue”) reported that it
expects gold production from the Bellevue Gold mine in Western
Australia to be approximately 90,000 ounces in the first half of
calendar 2025, with production weighted approximately 40%/60%
across the first and second calendar quarters, respectively.
Bellevue expects mined grade to increase during this period, and
increased access to high grade mining areas is forecast to deliver
a production run rate of over 200,000 ounces per year from the end
of Q2 2025.
Côté Gold (1% NSR royalty): IAMGOLD
Corporation ("IAMGOLD") disclosed on January 14, 2025, that the
ramp-up of the Côté Gold mine in Ontario continued in the fourth
quarter of 2024. IAMGOLD also provided gold production guidance at
Côté Gold of between 360,000 and 400,000 ounces for 2025, with gold
production expected to be the lowest in the first quarter and
increase sequentially as plant throughput increases through the
year. We expect approximately two thirds of this production will be
attributable to our royalty interest.
Khoemacau
(100% silver stream): On January 23, 2025, MMG Limited ("MMG")
provided copper production guidance of between 43,000 and 53,000
tonnes in 2025 at the Khoemacau mine
in Botswana. MMG also reported that it is committed to accessing
the higher-grade areas of the mine and working towards a higher
production run rate of 60,000 tonnes per year of copper in
concentrate by 2026-2027. Silver and copper grades have been
relatively well correlated at Khoemacau and silver production has tended to track
copper production, although there can be no assurance that these
correlations will continue in the future.
Additionally, MMG reported that a feasibility
study for the expansion of the mine to 130,000 tonnes per year
started in December, 2024, and construction of the expansion is
anticipated to begin in 2026 with first concentrate production
expected in 2028, subject to a comprehensive assessment on the
timeline in the feasibility study. Any expanded production from the
Zone 5 and Mango NE deposits falls within the area of interest
covered by Royal Gold's silver stream.
King of the Hills (1.5% NSR royalty):
On January 29, 2025, Vault Minerals Limited ("Vault") reported
Board approval to expand the processing facility at the King of the
Hills ("KOTH") mine in Western Australia to 6 million tonnes per
year, a 20% capacity increase over the fiscal year ended June 30,
2024, with commissioning of the expanded plant scheduled for the
second quarter of calendar 2026. According to Vault, a benefit of
the expanded plant will be the accelerated processing of the KOTH
ore stockpile.
Mara Rosa (1.0% NSR and 1.75% NSR
royalties): On January 22, 2025, Hochschild Mining PLC
(“Hochschild”) provided gold production guidance from the Mara Rosa
mine in Brazil of 94,000 to 104,000 ounces for 2025. Hochschild
further reported that brownfield exploration drilling was completed
below the Posse pit in the fourth quarter of 2024, and drilling
between the Posse and Pastinho zones is planned for the first
quarter of 2025.
Manh Choh (3% NSR royalty and 28% NSR
royalty on silver): On November 29, 2024, Contango Ore, Inc.,
("Contango"), 30% owner of the Manh Choh mine in Alaska, reported
that 2025 gold production at Manh Choh is expected to be
approximately 200,000 ounces (100% basis). Contango also reported
that the mine life of Manh Choh is expected to be four to five
years at current hauling rates.
Voisey's Bay (2.7% net value royalty):
On December 3, 2024, Vale S.A. ("Vale") reported that it has
completed construction and commissioning of the Voisey's Bay Mine
Extension ("VBME") project in Newfoundland and Labrador, Canada,
which transitioned Voisey's Bay from open pit to underground
mining. Vale is expecting to complete the ramp-up of the VBME
project in the second half of 2026, with full annual production
capacity of approximately 45,000 tonnes of nickel, 20,000 tonnes of
copper and 2,600 tonnes of cobalt.
Xavantina (25% gold stream): On
December 3, 2024, Ero Copper Corp. ("Ero") announced a 19% increase
to proven and probable reserves, and a 26% increase in measured and
indicated resources, at the Xavantina mine in Brazil, when compared
to 2023 estimates. Ero also reported that it remains focused on
extending the mine life and discovering new vein structures to
expand mine and mill feed, and enable utilization of excess mill
capacity of approximately 25%. Additionally, on February 11, 2025,
Ero reported gold production guidance of 50,000 to 60,000 ounces
for 2025.
Development and Evaluation
Properties
Back River (equivalent ~3.3% GSR royalty
on the Goose Project): On January 13, 2025, B2Gold Corp.
("B2Gold") reported that construction and development of the Goose
Project in the Back River Gold District in Nunavut, Canada, remains
on schedule for the first gold pour by the end of the second
quarter of 2025. B2Gold reported that it expects gold production of
between 120,000 and 150,000 ounces for 2025, and average annual
production of approximately 310,000 ounces per year from 2026 to
2031. B2Gold also reported that it remains on track to complete an
initial Goose Project life of mine plan based on updated mineral
reserves by the end of the first quarter of 2025. Royal Gold's
royalty rate on the Goose Project will increase to the approximate
equivalent 3.3% GSR royalty rate as certain production thresholds
are met over an expected three year period.
Portfolio Additions
Acquisition of Royalty Interest on the Cactus Project in
Arizona, USA
On December 31, 2024, RG Royalties, LLC, a wholly-owned
subsidiary of Royal Gold, acquired two royalties for cash
consideration of $55 million that constitute an aggregate 2.5% net
smelter return ("NSR") royalty (the “Cactus Royalty”) on the Cactus
Project in Arizona, which is currently being developed by Arizona
Sonoran Copper Company Inc. (“ASCU”). The Cactus Royalty covers the
Cactus East and Cactus West deposits as well as portions of the
Parks/Salyer deposit and is subject to a right in favor of ASCU to
buy back 0.5% of the aggregate 2.5% royalty for $7 million until
July 10, 2025.
The Cactus Project is a brownfield copper development project
located approximately 70 kilometers south of Phoenix and just
outside of the city of Casa Grande. This region is known for its
rich deposits of copper and has a long history of mining activity.
Mining was conducted at the Cactus Project site from 1974 through
1984 by ASARCO. ASCU acquired the project assets and properties
beginning in 2020.
ASCU is a copper exploration and development company listed on
the Toronto Stock Exchange with a seasoned management team that is
experienced with mining project development and operation. The
company's shares are widely held, and Hudbay Minerals Inc. and
Nuton LLC ("Nuton"), a Rio Tinto venture, each own significant
share positions.
The Cactus Project encompasses an extensive land package of
approximately 5,720 acres, which includes the Cactus Project
deposits (Parks/Salyer and Cactus East/West) as well as surrounding
lands that may hold additional mineral potential. Substantially all
of the project is located on land that is privately owned by ASCU
and its subsidiaries. The Cactus Project hosts substantial porphyry
copper resources, and as of July 11, 2024, estimated measured and
indicated resources totaled approximately 7.3 billion pounds of
copper at a grade of 0.58% copper, and inferred resources contained
a further 3.8 billion pounds of copper at a grade of 0.41%
copper.
The Cactus Project is anticipated to become a significant copper
producer, and the results of a preliminary economic assessment
disclosed on August 7, 2024 (“2024 PEA”), indicate total production
of 5.3 billion pounds of London Metal Exchange Grade A Copper
Cathodes via heap leaching and solvent extraction and
electrowinning. Mining is expected to be approximately 94% from
open pit operations, and average copper production is expected to
be 172 million pounds per year over the 31-year mine life, with an
average of 232 million pounds per year expected in the first 20
years. Nuton is reviewing the potential to apply proprietary
technology to improve recoveries and enhance the exploitation of a
significant hypogene resource, which could materially increase
production levels.
The project is located close to significant infrastructure,
including paved roads, railways, and grid power, ASCU has disclosed
that it owns water rights that exceed the demand outlined in the
2024 PEA, and there is a large potential workforce in the nearby
city of Casa Grande.
ASCU is currently targeting first cathode production in
2028/2029. Work underway to achieve this timeline includes
completion of a pre-feasibility study and amendments to permitting
in 2025, completion of a definitive feasibility study and
construction decision in 2026, followed by a construction period of
18 to 24 months.
Based on the production plan in the 2024 PEA, Royal Gold expects
to recognize revenue from the Cactus Royalty in approximately year
5 of operation given the incomplete royalty coverage of the
Parks/Salyer deposit, where mining is expected to commence. Royalty
payments are due within 30 days of each quarter end, and pre-tax
income after depletion is expected to be taxed in the USA at a rate
of approximately 22%.
The Cactus Royalty is structured as an interest in real
property, and information rights include detailed quarterly
production statements, annual reporting of material developments,
and an annual site visit.
2024 Overview
For the year ended December 31, 2024, we recorded net income
attributable to Royal Gold stockholders ("net income") of $332.0
million, or $5.04 per basic and diluted share, as compared to net
income of $239.4 million, or $3.64 per basic and $3.63 per diluted
share, for the year ended December 31, 2023.
For the year ended December 31, 2024, we recognized record total
revenue of $719.4 million, which is comprised of stream revenue of
$483.3 million and royalty revenue of $236.1 million, at an average
gold price of $2,386 per ounce, an average silver price of $28.27
per ounce and an average copper price of $4.15 per pound, compared
to total revenue of $605.7 million, which is comprised of stream
revenue of $418.3 million and royalty revenue of $187.4 million, at
an average gold price of $1,941 per ounce, an average silver price
of $23.35 per ounce and an average copper price of $3.85 per pound,
for the year ended December 31, 2023.
The increase in our total revenue for the year ended December
31, 2024, compared with the year ended December 31, 2023, resulted
primarily from higher average gold, silver and copper prices,
higher production from Peñasquito, and higher gold sales at
Xavantina and Wassa. The increase was partially offset by lower
production from the Cortez Legacy Zone, lower gold sales from
Andacollo, and lower silver sales from Khoemacau when compared to the prior year.
Cost of sales, which excludes DD&A, increased to $97.5
million for the year ended December 31, 2024, from $90.5 million
for the year ended December 31, 2023. The increase was primarily
due to higher average gold, silver and copper prices and higher
gold sales from Xavantina and Wassa, partially offset by lower gold
sales from Andacollo and lower silver sales from
Khoemacau when compared to the prior
year. Cost of sales is specific to our stream agreements and,
except for Mount Milligan, is the result of our purchase of metal
for a cash payment that is a set contractual percentage of the spot
price for that metal near the date of metal delivery. For Mount
Milligan, the cash payments under the existing stream agreement are
the lesser of $435 per ounce or the prevailing market price of gold
when purchased and 15% of the spot price for copper near the date
of metal delivery. Separately, and in addition to the cash payments
under the existing stream agreement, the Mount Milligan Cost
Support Agreement detailed in Note 7 of our notes to consolidated
financial statements on Form 10-K provides for cash payments on
gold and copper deliveries that are expected to begin after certain
thresholds are met, or earlier, if metal prices are below certain
thresholds and if requested by Centerra Gold Inc. ("Centerra").
General and administrative costs increased to $40.9 million for
the year ended December 31, 2024, from $39.8 million for the year
ended December 31, 2023. The increase was primarily due to higher
non-cash stock compensation expense when compared to the prior
year.
DD&A decreased to $144.4 million for the year ended December
31, 2024, from $164.9 million for the year ended December 31, 2023.
The decrease was primarily due to lower stream depletion rates, as
a result of proven and probable mineral reserve increases by our
operators, lower gold sales from Andacollo, lower silver sales from
Khoemacau and lower gold production
from the Cortez Legacy Zone when compared to the prior year. The
decrease was partially offset by higher production from Peñasquito
when compared to the prior year.
Interest and other expense decreased to $9.7 million for the
year ended December 31, 2024, from $30.9 million for the year ended
December 31, 2023. The decrease was primarily due to lower interest
expense as a result of lower average amounts outstanding under our
revolving credit facility compared to the prior year. For the year
ended December 31, 2024, amounts outstanding under our revolving
credit facility averaged $82.0 million at an average all-in
borrowing rate of 6.5%, compared to average amounts outstanding of
$391.4 million at an average all-in borrowing rate of 6.4% for the
year ended December 31, 2023.
Income tax expense was $93.6 million for the year ended December
31, 2024, as compared to $42.0 million for the year ended December
31, 2023, which resulted in an effective tax rate of 22.0% in the
current year and 14.9% in the prior year. The year ended December
31, 2024 included a $13.0 million U.S. GILTI income tax expense
related to consideration received from the Mount Milligan Cost
Support Agreement, which if excluded, would result in an effective
tax rate of approximately 19%. The year ended December 31, 2023
included a release of valuation allowances on certain foreign
deferred tax assets.
Net cash provided by operating activities totaled $529.5 million
for the year ended December 31, 2024, compared to $415.8 million
for the year ended December 31, 2023. The increase, when compared
to the prior year, was primarily due to higher net cash proceeds
received from our stream and royalty interests of $80.3 million,
cash proceeds of $24.5 million received from the Mount Milligan
Cost Support Agreement, lower debt cash interest payments of $21.5
million and $12.0 million of interest from the repayment of the
Khoemacau subordinated debt facility.
This increase was partially offset by higher cash taxes of $21.8
million when compared to the prior year.
Net cash used in investing activities totaled $77.7 million for
the year ended December 31, 2024, compared to net cash used in
investing activities of $2.8 million for the year ended December
31, 2023. The increase was primarily due to the acquisition of the
Back River and Cactus royalties offset by the $25 million principal
repayment received on the Khoemacau
subordinated debt facility when compared to the prior year.
Net cash used in financing activities totaled $360.5 million for
the year ended December 31, 2024, compared to net cash used in
financing activities of $427.4 million for the year ended December
31, 2023. The decrease, when compared to the prior year, was
primarily due to lower debt repayments.
At December 31, 2024, we had working capital of $190.1 million,
including $195.5 million of cash and equivalents. This compares to
working capital of $95.0 million, including $104.2 million of cash
and equivalents at December 31, 2023. The increase in our working
capital was primarily due to an increase in our available cash,
which primarily resulted from higher net cash proceeds from our
stream and royalty interests and cash proceeds received for the
Mount Milligan Cost Support Agreement, partially offset by the
Cactus and Back River royalty acquisitions during the current
year.
Fourth Quarter 2024 Overview
For the fourth quarter, we recorded net income and comprehensive
income of $107.4 million, or $1.63 per basic and diluted share, as
compared to net income of $62.8 million, or $0.95 per basic and
diluted share, for the three months ended December 31, 2023. The
increase in net income was primarily attributable to higher
revenue, as discussed below.
For the fourth quarter, we recognized record total revenue of
$202.6 million, comprised of stream revenue of $124.8 million and
royalty revenue of $77.8 million at an average gold price of $2,663
per ounce, an average silver price of $31.38 per ounce and an
average copper price of $4.17 per pound. This compares to total
revenue of $152.7 million for the three months ended December 31,
2023, comprised of stream revenue of $98.3 million and royalty
revenue of $54.4 million, at an average gold price of $1,971 per
ounce, an average silver price of $23.20 per ounce and an average
copper price of $3.70 per pound.
The increase in our total revenue resulted primarily from higher
average gold, silver and copper prices compared to the prior
period. Higher gold sales from Rainy River and Wassa, and higher
gold, silver, zinc and lead production from Peñasquito, also
contributed to the increase. These increases were partially offset
by lower gold production from Cortez when compared to the prior
year period.
Cost of sales, which excludes DD&A, increased to $24.4
million for the fourth quarter, from $20.8 million for the three
months ended December 31, 2023. The increase, when compared to the
prior year period, was primarily due to higher gold, silver and
copper prices, and higher gold sales from Rainy River and Wassa.
Cost of sales is specific to our stream agreements and, except for
Mount Milligan, is the result of our purchase of metal for a cash
payment that is a set contractual percentage of the spot price for
that metal near the date of metal delivery. For Mount Milligan, the
cash payments under the existing stream agreement are the lesser of
$435 per ounce or the prevailing market price of gold when
purchased, and 15% of the spot price for copper near the date of
metal delivery. Separately, and in addition to the cash payments
under the existing stream agreement, the Mount Milligan Cost
Support Agreement, detailed in Note 7 of our notes to consolidated
financial statements on Form 10-K, provides for cash payments on
gold and copper deliveries that are expected to begin after certain
thresholds are met, or earlier, if metal prices are below certain
thresholds and if requested by Centerra.
General and administrative costs decreased to $8.9 million for
the fourth quarter, from $9.7 million for the three months ended
December 31, 2023. The decrease was primarily due to lower
corporate costs partially offset by higher non-cash stock
compensation expense compared to the prior year period.
DD&A decreased to $33.7 million for the fourth quarter, from
$40.1 million for the three months ended December 31, 2023. The
decrease was primarily due lower DD&A rates in our stream
segment and gold production at Cortez partially offset by higher
production at Peñasquito compared to the prior year period.
Interest and other expense decreased to $1.4 million for the
fourth quarter, from $6.0 million for the three months ended
December 31, 2023. The decrease was primarily due to lower interest
expense as a result of lower average amounts outstanding under our
revolving credit facility compared to the prior year period.
For the fourth quarter, we recorded income tax expense of $26.1
million, compared to $13.4 million for the three months ended
December 31, 2023. The income tax expense resulted in an effective
tax rate of 19.5% in the current period, compared with 17.5% for
the three months ended December 31, 2023. The higher income tax
expense for the fourth quarter was primarily attributable to higher
income before income taxes compared to the prior year period.
Net cash provided by operating activities totaled $141.1 million
for the fourth quarter, compared to $101.1 million for the three
months ended December 31, 2023. The increase, when compared to the
prior year period, was primarily due to higher stream and royalty
revenue.
Net cash used in investing activities totaled $46.9 million for
the fourth quarter, compared to approximately $0 for the three
months ended December 31, 2023. The change from the comparable
prior year period was primarily due to the acquisition of a royalty
interest on the Cactus Project in the current period.
Net cash used in financing activities totaled $26.5 million for
the fourth quarter, compared to $99.8 million for the three months
ended December 31, 2023. The decrease, when compared to the prior
year period, was primarily due to the repayment of outstanding
borrowings on the revolving credit facility of $75 million in the
prior year quarter.
Other Corporate Updates
Total Available Liquidity Increased to Approximately $1.2
Billion at the end of the Fourth Quarter
Total liquidity at the end of the fourth quarter was
approximately $1.2 billion, which consisted of $190 million of
working capital and $1 billion undrawn and available under the
revolving credit facility.
Annual Dividend for 2025 Raised 12.5% to $1.80 Per Share, the
24th Consecutive Annual Increase
On November 19, 2024, the Royal Gold Board of Directors approved
an increase in the Company's annual calendar year common stock
dividend of 12.5% from $1.60 to $1.80 per share, payable on a
quarterly basis of $0.45 per share. We have paid out dividends of
approximately $1 billion since our first dividend payment in 2000,
and Royal Gold is the only precious metals company in the S&P
High Yield Dividend Aristocrats Index.
2024 Performance Compared to Guidance
Royal Gold provided guidance for 2024 metal sales volumes,
DD&A expense and effective tax rate in April, 2024. When
compared to the guidance ranges provided (as shown in the table
below), gold sales achieved the high end of the guidance range and
copper sales and other metal sales exceeded the respective guidance
ranges. DD&A expense and effective tax rate were within the
respective guidance ranges. Silver sales were slightly lower than
the guidance range, primarily due to lower sales from Pueblo Viejo
resulting from low silver recoveries.
2024 Guidance Ranges
2024 Actual Performance
Total Sales:
Gold
215,000 - 230,000 oz
228,700 oz
Silver
3.2 - 3.8 M oz
3.1 M oz
Copper
14.0 - 16.0 M lb
16.1 M lb
Other Metals
$17.0 - 20.0 M
$22.7 M
DD&A
$141 - 157 M
$144.4 M
Effective Tax Rate
17 - 22%
19%*
* Note that the effective tax rate of 19% excludes a $13.0
million discrete U.S. GILTI income tax expense related to
consideration received from the Mount Milligan Cost Support
Agreement; including this amount, the effective tax rate was 22%
for 2024.
Outlook for 2025
We expect a softer start to 2025 with stream segment sales of
between 40,000 and 45,000 GEOs for the quarter ended March 31,
2025, and we expect to issue guidance for 2025 sales volumes,
DD&A expense, and effective tax rate in mid to late March,
2025.
Property Highlights
A breakdown of revenue for the Company’s stream and royalty
portfolio can be found on Table 1 for the three month and full year
periods ended December 31, 2024 and December 31, 2023. Table 2
shows stream metal sales and metal sales attributable to the
Company’s royalty interests for the Company’s principal stream and
royalty properties. Table 3 shows Royal Gold's 2024 sales volume
guidance and year to date sales volume achieved. Table 4 shows
stream segment purchases and sales for the three month and full
year periods ended December 31, 2024 and December 31, 2023 and
inventories at December 31, 2024 and December 31, 2023. Highlights
at certain of the Company’s principal producing and development
properties during 2024 compared to 2023, are detailed in the
Company's Annual Report on Form 10-K for the year ended December
31, 2024, which is expected to be filed with the Securities and
Exchange Commission on February 13, 2025.
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
December 31, 2024, the Company owned interests on 175 properties on
five continents, including interests on 42 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.
Fourth Quarter 2024 Call
Information:
Dial-In
833-470-1428 (U.S.); toll free
Numbers:
833-950-0062 (Canada); toll free
929-526-1599 (International)
Access Code:
572628
Webcast URL:
www.royalgold.com under Investors, Events
& Presentations
Note: Management’s conference call reviewing the fourth
quarter results will be held on Thursday, February 13, 2025, at
12:00 pm Eastern Time (10:00 am Mountain Time). The call will be
webcast and archived on the Company’s website for a limited
time.
Additional Investor Information: Royal Gold routinely
posts important information, including information about upcoming
investor presentations and press releases, on its website under the
Investor Resources tab. Investors and other interested parties are
encouraged to enroll at www.royalgold.com to receive automatic
email alerts for new postings.
Forward-Looking Statements: This press release includes
“forward-looking statements” within the meaning of U.S. federal
securities laws. Forward-looking statements are any statements
other than statements of historical fact. Forward-looking
statements are not guarantees of future performance, and actual
results may differ materially from these statements.
Forward-looking statements are often identified by words like
“will,” “may,” “could,” “should,” “would,” “believe,” “estimate,”
“expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,”
“continue,” “project,” or negatives of these words or similar
expressions. Forward-looking statements include, among others,
statements regarding the following: our expected financial
performance and outlook, including our 2025 guidance; operators’
expected operating and financial performance and other anticipated
developments relating to their properties and operations, including
production, deliveries, estimates of mineral resources and mineral
reserves, environmental and feasibility studies, technical reports,
mine plans, capital requirements, liquidity and capital
expenditures; anticipated benefits from investments, acquisitions
and other transactions; the receipt and timing of future metal
deliveries, including deferred amounts at Pueblo Viejo; the timing
and amount of future benefits and obligations in connection with
the Mount Milligan Cost Support Agreement; anticipated liquidity,
capital resources, financing, and stockholder returns; borrowings
and repayments under our revolving credit facility; and the
materiality of properties within our portfolio.
Factors that could cause actual results to differ materially
from these forward-looking statements include, among others, the
following: changes in the price of gold, silver, copper or other
metals; operating activities or financial performance of properties
on which we hold stream or royalty interests, including variations
between actual and forecasted performance, operators’ ability to
complete projects on schedule and as planned, operators’ changes to
mine plans and mineral reserves and mineral resources (including
updated mineral reserve and mineral resource information),
liquidity needs, mining and environmental hazards, labor disputes,
distribution and supply chain disruptions, permitting and licensing
issues, other adverse government or court actions, or operational
disruptions; changes of control of properties or operators;
contractual issues involving our stream or royalty agreements; the
timing of deliveries of metals from operators and our subsequent
sales of metal; risks associated with doing business in foreign
countries; increased competition for stream and royalty interests;
environmental risks, including those caused by climate change;
potential cyber-attacks, including ransomware; our ability to
identify, finance, value, and complete investments, acquisitions or
other transactions; adverse economic and market conditions; effects
of health epidemics and pandemics; changes in laws or regulations
governing us, operators or operating properties; changes in
management and key employees; and other factors described in our
reports filed with the Securities and Exchange Commission,
including Item 1A, Risk Factors of our most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. Most of these factors
are beyond our ability to predict or control. Other unpredictable
or unknown factors not discussed in this release could also have
material adverse effects on forward-looking statements.
Forward-looking statements speak only as of the date on which
they are made. We disclaim any obligation to update any
forward-looking statements, except as required by law. 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, 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 disclosure of the operators for information regarding
those properties.
TABLE 1
Revenue by Stream and Royalty Interests
for the Fourth Quarter and Calendar Year 2024 and 2023
(In thousands)
Three Months Ended
December 31,
Year Ended December
31,
Stream/Royalty
Metal(s)
Current Stream/Royalty
Interest1
2024
2023
2024
2023
Stream:
Canada
Mount Milligan
Gold, copper
35% of payable gold and 18.75% of payable
copper
$
42,335
$
36,429
$
186,039
$
158,167
Rainy River
Gold, silver
6.5% of gold produced and 60% of silver
produced
15,729
10,127
45,762
38,794
Latin America
Pueblo Viejo
Gold, silver
7.5% of Barrick's interest in payable gold
and 75% of Barrick's interest in payable silver
$
18,912
$
13,661
$
83,059
$
76,247
Andacollo
Gold
100% of payable gold
15,582
13,519
47,531
48,920
Xavantina
Gold
25% of gold produced
9,543
8,199
38,771
25,395
Africa
Wassa
Gold
10.5% of payable gold
$
13,215
$
8,238
$
48,537
$
32,815
Khoemacau
Silver
100% of payable silver
9,447
7,521
33,595
34,602
Bogoso and Prestea
Gold
5.5% of payable gold
—
604
—
3,340
Total stream revenue
$
124,763
$
98,298
$
483,294
$
418,280
Royalty:
Canada
Voisey's Bay
Copper, nickel, cobalt
2.7% NVR
$
1,998
$
1,992
$
6,049
$
5,309
Red Chris
Gold, copper
1.0% NSR
—
—
2,617
3,170
Côté Gold
Gold
1.0% NSR
1,395
—
2,932
—
LaRonde Zone 5
Gold
2.0% NSR
1,179
591
3,611
2,461
Canadian Malartic
Gold
1.0%-1.5% sliding-scale NSR
288
129
602
1,463
Williams2
Gold
0.97% NSR
485
242
1,902
(987
)
Other-Canada
Various
Various
166
173
1,232
1,296
United States
Cortez
Legacy Zone
Gold
Approx. 9.4% GSR Equivalent
$
16,573
$
22,858
$
58,183
$
79,920
CC Zone
Gold
Approx. 0.45%-2.2% GSR Equivalent
3,898
4,952
11,611
14,626
Robinson
Gold, copper
3.0% NSR
5,735
3,619
16,609
9,109
Manh Choh
Gold, silver
3.0% NSR, 28% NSR (silver)
3,573
—
10,697
—
Marigold
Gold
2.0% NSR
3,131
2,593
8,085
5,110
Leeville
Gold
1.8% NSR
2,310
2,170
7,932
5,712
Wharf
Gold
0.0%-2.0% sliding-scale GSR
822
1,169
2,795
3,630
Goldstrike
Gold
0.9% NSR
398
495
1,746
1,575
Other-United States
Various
Various
1,289
751
3,554
4,008
Latin America
Peñasquito
Gold, silver, lead, zinc
2.0% NSR
$
16,226
4,234
$
46,090
$
17,772
El Limon
Gold
3.0% NSR
2,466
1,158
7,190
5,280
Dolores
Gold, silver
3.25% NSR (gold), 2.0% NSR (silver)
2,106
2,106
6,752
7,981
Mara Rosa
Gold, silver
2.75% NSR
1,866
—
4,300
—
Other-Latin America
Various
Various
2,425
—
2,646
456
Australia
South Laverton
Gold
1.5% NSR, 4.0% NPI
$
2,684
$
2,006
$
8,974
$
7,283
Bellevue
Gold
2.0% NSR
3,139
51
6,955
51
King of the Hills
Gold
1.5% NSR
1,338
1,094
5,334
4,200
Gwalia
Gold
1.5% NSR
1,156
1,044
4,047
3,726
Celtic/Wonder North
Gold, silver
1.5% NSR
340
—
732
—
Other-Australia
Various
Various
811
941
2,924
3,751
Europe
Las Cruces
Copper
1.5% NSR (copper)
$
—
$
—
$
—
$
535
Total royalty revenue
$
77,797
$
54,368
$
236,101
$
187,437
Total revenue
$
202,560
$
152,666
$
719,395
$
605,717
- Refer to Part I, Item 2, of the Company’s Annual Report on Form
10-K for a full description of the Company’s stream and royalty
interests.
- The Williams royalty revenue was negative for the twelve months
ended December 31, 2023, due to a one-time, non-cash accounting
adjustment during the quarter ended June 30, 2023, related to past
production subject to our royalty interest.
TABLE 2
Stream Metal and Royalty Sales for
Principal Properties
Reported Production For The
Quarter Ended2
Property
Operator
Current Stream/ Royalty
Interest1
Metal(s)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Stream:
Mount Milligan
Centerra
35% of payable gold
Gold
11,300
oz
17,600
oz
16,100
oz
12,500
oz
14,000
oz
18.75% of payable copper
Copper
2.8
Mlb
3.1
Mlb
3.4
Mlb
2.5
Mlb
2.4
Mlb
Pueblo Viejo
Barrick (60%)
7.5% of Barrick's interest in payable
gold
Gold
5,900
oz
7,000
oz
5,800
oz
6,200
oz
5,000
oz
75% of Barrick's interest in payable
silver3
Silver
89,500
oz
332,700
oz
218,200
oz
223,000
oz
171,100
oz
Andacollo
Teck
100% of payable gold
Gold
5,800
oz
4,000
oz
4,500
oz
5,700
oz
7,000
oz
Royalty:
Cortez
Nevada Gold Mines LLC
9.4% GSR on Legacy Zone4
Gold
52,600
oz
45,300
oz
42,600
oz
68,700
oz
111,900
oz
0.45%-2.2% GSR on CC Zone4
Gold
149,800
oz
116,500
oz
119,800
oz
124,900
oz
156,600
oz
- Refer to Part I, Item 2, of the Company’s Annual Report on Form
10-K for a full description of the Company’s stream and royalty
interests.
- Reported production relates to the amount of stream metal sales
and the metal sales attributable to the Company’s royalty interests
for the stated periods and may differ from the operators’ public
reporting.
- The Pueblo Viejo silver stream is determined based on a fixed
metallurgical recovery of 70% of silver in mill feed.
- Approximate blended royalty rates as described in the press
release “Royal Gold Announces Acquisition of Additional Royalty
Interests on the World-Class Cortez Gold Complex in Nevada and
Outlines Simplified Approach to Describing Royal Gold’s Multiple
Royalty Interests at Cortez” issued January 5, 2023.
TABLE 3
2024 Sales Volume Guidance and Sales
Volume Achieved
2024 Guidance
Metal Sales by Segment for the
Year Ended December 31, 2024
Stream Sales1
Royalty Sales2
Total Sales
Gold
(oz)
215,000 - 230,000
154,600
74,130
228,730
Silver
(M oz)
3.2-3.8
2.4
0.7
3.1
Copper
(M lb)
14.0 - 16.0
11.8
4.3
16.1
Other Metals
(M)
$17.0 - $20.0
N/A
$22.7
$22.7
1 Stream Sales represents physical metal
sold.
2 Royalty Sales represents royalty revenue
divided by the average metal price for the period.
TABLE 4
Stream Segment Summary
Three Months Ended
December 31, 2024
Three Months Ended
December 31, 2023
As of December 31,
2024
As of December 31,
2023
Gold Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Inventory (oz)
Inventory (oz)
Mount Milligan
10,900
11,300
12,600
14,000
4,500
4,000
Pueblo Viejo
7,700
6,000
6,200
5,000
7,700
6,200
Andacollo
3,500
5,900
4,200
7,000
—
800
Other
13,000
13,400
12,700
13,100
3,300
4,200
Total
35,100
36,600
35,700
39,100
15,500
15,200
Silver Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Inventory (oz)
Inventory (oz)
Pueblo Viejo1
219,400
89,500
222,900
171,100
219,400
223,000
Other
378,800
389,400
446,900
385,100
119,000
160,100
Total
598,200
478,900
669,800
556,200
338,400
383,100
Copper Stream
Purchases (Mlb)
Sales (Mlb)
Purchases (Mlb)
Sales (Mlb)
Inventory (Mlb)
Inventory (Mlb)
Mount Milligan
2.0
2.8
2.5
2.4
—
—
Year Ended December 31,
2024
Year Ended December 31,
2023
Gold Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Mount Milligan
58,000
57,500
56,800
58,000
Pueblo Viejo
26,500
24,900
25,400
27,100
Andacollo
19,300
20,000
22,500
25,500
Other
51,100
52,200
48,600
48,500
Total
154,900
154,600
153,300
159,100
Silver Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Pueblo Viejo1
859,900
863,400
907,000
1,021,900
Other
1,490,700
1,531,900
1,793,900
1,757,100
Total
2,350,600
2,395,300
2,700,900
2,779,000
Copper Stream
Purchases (Mlb)
Sales (Mlb)
Purchases (Mlb)
Sales (Mlb)
Mount Milligan
11.8
11.8
10.9
11.8
1 Silver stream purchases do not include
434,800 ounces of silver permitted to be deferred in the three
month period ending December 31, 2024, and 816,500 ounces of silver
permitted to be deferred in the twelve month period ending December
31, 2024, based on the terms of the Pueblo Viejo stream agreement.
Total deferred deliveries were approximately 1.67 million ounces at
December 31, 2024, and the timing for the delivery of the entire
deferred amount is uncertain.
ROYAL GOLD, INC.
Consolidated Balance Sheets
(Unaudited, in thousands except share
data)
December 31, 2024
December 31, 2023
ASSETS
Cash and equivalents
$
195,498
$
104,167
Royalty receivables
63,460
48,884
Income tax receivable
1,139
2,676
Stream inventory
12,973
9,788
Prepaid expenses and other
2,217
1,911
Total current assets
275,287
167,426
Stream and royalty interests, net
3,042,804
3,075,574
Other assets
74,039
118,057
Total assets
$
3,392,130
$
3,361,057
LIABILITIES
Accounts payable
$
10,578
$
11,441
Dividends payable
29,611
26,292
Income tax payable
23,177
15,557
Other current liabilities
21,785
19,132
Total current liabilities
85,151
72,422
Debt
—
245,967
Deferred tax liabilities
132,308
134,299
Mount Milligan deferred liability
25,000
—
Other liabilities
18,465
7,728
Total liabilities
260,924
460,416
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 65,691,151 and 65,631,760 shares
outstanding, respectively
657
656
Additional paid-in capital
2,228,311
2,221,039
Accumulated earnings
889,989
666,522
Total Royal Gold stockholders’ equity
3,118,957
2,888,217
Non-controlling interests
12,249
12,424
Total equity
3,131,206
2,900,641
Total liabilities and equity
$
3,392,130
$
3,361,057
ROYAL GOLD, INC.
Consolidated Statements of Operations and
Comprehensive Income
(Unaudited, in thousands except share
data)
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Revenue
$
202,560
$
152,666
$
719,395
$
605,717
Costs and expenses
Cost of sales (excludes depreciation,
depletion and amortization)
24,398
20,785
97,514
90,523
General and administrative
8,909
9,741
40,934
39,761
Production taxes
2,072
2,360
6,622
7,294
Depreciation, depletion and
amortization
33,737
40,090
144,426
164,937
Total costs and expenses
69,116
72,976
289,496
302,515
Operating income
133,444
79,690
429,899
303,202
Fair value changes in equity
securities
(24
)
25
(66
)
(147
)
Interest and other income
1,598
2,603
6,008
9,952
Interest and other expense
(1,419
)
(5,999
)
(9,749
)
(30,867
)
Income before income taxes
133,599
76,319
426,092
282,140
Income tax expense
(26,078
)
(13,356
)
(93,613
)
(42,008
)
Net income and comprehensive income
107,521
62,963
332,479
240,132
Net income and comprehensive income
attributable to non-controlling interests
(113
)
(183
)
(456
)
(692
)
Net income and comprehensive income
attributable to Royal Gold common stockholders
$
107,408
$
62,780
$
332,023
$
239,440
Net income per share attributable to Royal
Gold common stockholders:
Basic earnings per share
$
1.63
$
0.95
$
5.04
$
3.64
Basic weighted average shares
outstanding
65,689,736
65,631,760
65,662,185
65,613,002
Diluted earnings per share
$
1.63
$
0.95
$
5.04
$
3.63
Diluted weighted average shares
outstanding
65,804,129
65,726,890
65,776,834
65,739,110
Cash dividends declared per common
share
$
0.45
$
0.40
$
1.650
$
1.525
ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Cash flows from operating activities:
Net income and comprehensive income
$
107,521
$
62,963
$
332,479
$
240,132
Adjustments to reconcile net income and
comprehensive income to net cash provided by operating
activities:
Depreciation, depletion and
amortization
33,737
40,090
144,426
164,937
Non-cash employee stock compensation
expense
2,579
2,354
11,892
9,696
Fair value changes in equity
securities
24
(25
)
66
147
Deferred tax expense (benefit)
3,446
(458
)
8,354
(6,469
)
Other
228
187
945
779
Changes in assets and liabilities:
Royalty receivables
(13,343
)
(14,157
)
(14,577
)
521
Stream inventory
(1,354
)
63
(3,186
)
2,868
Income tax receivable
9,050
11,572
1,537
390
Prepaid expenses and other assets
(72
)
(1,002
)
11,168
(4,369
)
Accounts payable
(10,917
)
2,816
(9,113
)
4,756
Income tax payable
(7,210
)
(6,936
)
7,620
(508
)
Mount Milligan deferred liability
—
—
25,000
—
Other liabilities
17,364
3,621
12,892
2,912
Net cash provided by operating
activities
$
141,053
$
101,088
$
529,503
$
415,792
Cash flows from investing activities:
Acquisition of stream and royalty
interests
(46,881
)
—
(102,564
)
(2,678
)
Proceeds from Khoemacau debt facility
—
—
25,000
—
Other
(25
)
(2
)
(116
)
(151
)
Net cash used in investing activities
$
(46,906
)
$
(2
)
$
(77,680
)
$
(2,829
)
Cash flows from financing activities:
Repayment of debt
—
(75,000
)
(250,000
)
(325,000
)
Net payments from issuance of common
stock
(56
)
(10
)
(4,620
)
(1,383
)
Common stock dividends
(26,320
)
(24,649
)
(105,237
)
(98,567
)
Other
(155
)
(161
)
(635
)
(2,432
)
Net cash used in financing activities
$
(26,531
)
$
(99,820
)
$
(360,492
)
$
(427,382
)
Net increase (decrease) in cash and
equivalents
67,616
1,266
91,331
(14,419
)
Cash and equivalents at beginning of
period
$
127,882
$
102,901
104,167
118,586
Cash and equivalents at end of period
$
195,498
$
104,167
$
195,498
$
104,167
Schedule A – Non-GAAP Financial Measures and
Certain Other Measures
Overview of non-GAAP financial measures:
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
U.S. generally accepted accounting principles (“GAAP”). These
measures should not be considered in isolation or as a substitute
for measures prepared in accordance with GAAP. In addition, because
the presentation of these non-GAAP financial measures varies among
companies, these non-GAAP financial measures may not be comparable
to similarly titled measures used by other companies.
We have provided below reconciliations of our non-GAAP financial
measures to the comparable GAAP measures. We believe these non-GAAP
financial measures provide useful information to investors for
analysis of our business. We use these non-GAAP financial measures
to compare period-over-period performance on a consistent basis and
when planning and forecasting for future periods. We believe these
non-GAAP financial measures are used by professional research
analysts and others in the valuation, comparison and investment
recommendations of companies in our industry. Many investors use
the published research reports of these professional research
analysts and others in making investment decisions. The adjustments
made to calculate our non-GAAP financial measures are subjective
and involve significant management judgement. Non-GAAP financial
measures used by management in this release or elsewhere include
the following:
- Adjusted earnings before interest, taxes, depreciation,
depletion and amortization, or adjusted EBITDA, is a non-GAAP
financial measure that is calculated by the Company as net income
adjusted for certain items that impact the comparability of results
from period to period, as set forth in the reconciliation below.
The net income and adjusted EBITDA margins represent net income or
adjusted EBITDA divided by total revenue. We consider adjusted
EBITDA to be useful because the measure reflects our operating
performance before the effects of certain non-cash items and other
items that we believe are not indicative of our core
operations.
- Net debt (or net cash) is a non-GAAP financial measure that is
calculated by the Company as debt (excluding debt issuance costs)
as of a date minus cash and equivalents for that same date. Net
debt (or net cash) to trailing twelve months (TTM) adjusted EBITDA
is a non-GAAP financial measure that is calculated by the Company
as net debt (or net cash) as of a date divided by the TTM adjusted
EBITDA (as defined above) ending on that date. We believe that
these measures are important to monitor leverage and evaluate the
balance sheet. Cash and equivalents are subtracted from the GAAP
measure because they could be used to reduce our debt obligations.
A limitation associated with using net debt (or net cash) is that
it subtracts cash and equivalents and therefore may imply that
there is less Company debt than the most comparable GAAP measure
indicates. We believe that investors may find these measures useful
to monitor leverage and evaluate the balance sheet.
- Adjusted net income and adjusted net income per share are
non-GAAP financial measures that are calculated by the Company as
net income and net income per share adjusted for certain items that
impact the comparability of results from period to period, as set
forth in the reconciliations below. We consider these non-GAAP
financial measures to be useful because they allow for
period-to-period comparisons of our operating results excluding
items that we believe are not indicative of our fundamental ongoing
operations. The tax effect of adjustments is computed by applying
the statutory tax rate in the applicable jurisdictions to the
income or expense items that are adjusted in the period presented.
If a valuation allowance exists, the rate applied is zero.
- Free cash flow is a non-GAAP financial measure that is
calculated by the Company as net cash provided by operating
activities for a period minus acquisition of stream and royalty
interests for that same period. We believe that free cash flow
represents an additional way of viewing liquidity as it is adjusted
for contractual investments made during such period. Free cash flow
does not represent the residual cash flow available for
discretionary expenditures. We believe it is important to view free
cash flow as a complement to our consolidated statements of cash
flows.
- Cash general and administrative expense, or cash G&A, is a
non-GAAP financial measure that is calculated by the Company as
general and administrative expenses for a period minus non-cash
employee stock compensation expense for the same period. We believe
that cash G&A is useful as an indicator of overhead efficiency
without regard to non-cash expenses associated with employee stock
compensation.
Reconciliation of non-GAAP financial
measures to U.S. GAAP measures
Adjusted EBITDA, Adjusted EBITDA
margin, net debt, and net debt to TTM adjusted EBITDA:
Three Months Ended
December 31,
Year Ended December
31,
(amounts in thousands)
2024
2023
2024
2023
Net income and comprehensive income
107,521
$
62,963
$
332,479
$
240,132
Depreciation, depletion and
amortization
33,737
40,090
144,426
164,937
Non-cash employee stock compensation
2,579
2,354
11,892
9,696
Fair value changes in equity
securities
24
(25
)
66
147
Other non-recurring adjustments
—
—
—
2,440
Interest and other, net
(179
)
3,396
3,741
20,915
Income tax expense
26,078
13,356
93,613
42,008
Non-controlling interests in operating
income of consolidated subsidiaries
(113
)
(183
)
(456
)
(692
)
Adjusted EBITDA
$
169,647
$
121,951
$
585,760
$
479,583
Net income margin
53
%
41
%
46
%
40
%
Adjusted EBITDA margin
84
%
80
%
81
%
79
%
Three Months Ended
December 31,
September 30,
June 30,
March 31,
(amounts in thousands)
2024
2024
2024
2024
Net income and comprehensive income
$
107,521
$
96,330
$
81,320
$
47,309
Depreciation, depletion and
amortization
33,737
36,177
35,747
38,765
Non-cash employee stock compensation
2,579
2,977
3,348
2,988
Fair value changes in equity
securities
24
425
63
(447
)
Interest and other, net
(179
)
581
1,709
1,630
Income tax expense
26,078
21,510
18,991
27,033
Non-controlling interests in operating
income of consolidated subsidiaries
(113
)
(88
)
(112
)
(143
)
Adjusted EBITDA
$
169,647
$
157,912
$
141,066
$
117,135
Net income margin
53
%
50
%
47
%
32
%
Adjusted EBITDA margin
84
%
81
%
81
%
79
%
TTM adjusted EBITDA
$
585,760
Debt
$
—
Cash and equivalents
(195,498
)
Net debt / (cash)
$
(195,498
)
Net debt / (cash) to TTM adjusted
EBITDA
(0.33)x
Cash G&A:
Three Months Ended
December 31,
Year Ended December
31,
(amounts in thousands)
2024
2023
2024
2023
General and administrative expense
$
8,909
$
9,741
$
40,934
$
39,761
Non-cash employee stock compensation
(2,579
)
(2,354
)
(11,892
)
(9,696
)
Cash G&A
$
6,330
$
7,387
$
29,042
$
30,065
Three Months Ended
December 31,
September 30,
June 30,
March 31,
(amounts in thousands)
2024
2024
2024
2024
General and administrative expense
$
8,909
$
10,102
$
10,511
$
11,412
Non-cash employee stock compensation
(2,579
)
(2,977
)
(3,348
)
(2,988
)
Cash G&A
$
6,330
$
7,125
$
7,163
$
8,424
TTM cash G&A
$
29,042
Adjusted net income and adjusted net
income per share:
Three Months Ended
December 31,
Year Ended December
31,
(amounts in thousands, except per share
data)
2024
2023
2024
2023
Net income and comprehensive income
attributable to Royal Gold common stockholders
$
107,408
$
62,780
$
332,023
$
239,440
Fair value changes in equity
securities
24
(25
)
66
147
Other non-recurring adjustments
—
—
—
2,440
Discrete tax expense related to Mount
Milligan Cost Support Agreement
—
—
13,008
—
Other discrete tax expense (benefit)
—
—
1,279
(8,462
)
Tax effect of adjustments
(7
)
7
(18
)
(685
)
Adjusted net income and comprehensive
income attributable to Royal Gold common stockholders
$
107,432
$
62,762
$
346,358
$
232,880
Net income attributable to Royal Gold
common stockholders per diluted share
$
1.63
$
0.95
$
5.04
$
3.63
Fair value changes in equity
securities
—
—
—
—
Other non-recurring adjustments
—
—
—
0.04
Discrete tax expense related to Mount
Milligan Cost Support Agreement
—
—
0.20
—
Other discrete tax expense (benefit)
—
—
0.02
(0.13
)
Tax effect of adjustments
$
—
$
—
$
—
$
(0.01
)
Adjusted net income attributable to Royal
Gold common stockholders per diluted share
$
1.63
$
0.95
$
5.26
$
3.53
Free cash flow:
Three Months Ended
December 31,
Year Ended December
31,
(amounts in thousands)
2024
2023
2024
2023
Net cash provided by operating
activities
$
141,053
$
101,088
$
529,503
$
415,792
Acquisition of stream and royalty
interests
(46,881
)
—
(102,564
)
(2,678
)
Free cash flow
$
94,172
$
101,088
$
426,939
$
413,114
Net cash used in investing activities
$
(46,906
)
$
(2
)
$
(77,680
)
$
(2,829
)
Net cash used in financing activities
$
(26,531
)
$
(99,820
)
$
(360,492
)
$
(427,382
)
Other measures
We use certain other measures in managing and evaluating our
business. We believe these measures may provide useful information
to investors for analysis of our business. We use these measures to
compare period-over-period performance and liquidity on a
consistent basis and when planning and forecasting for future
periods. We believe these measures are used by professional
research analysts and others in the valuation, comparison, and
investment recommendations of companies in our industry. Many
investors use the published research reports of these professional
research analysts and others in making investment decisions. Other
measures used by management in this release and elsewhere include
the following:
- Gold equivalent ounces, or GEOs, is calculated by the Company
as revenue (in total or by reportable segment) for a period divided
by the average LBMA PM fixing price for gold for that same
period.
- Depreciation, depletion, and amortization, or DD&A, per GEO
is calculated by the Company as depreciation, depletion, and
amortization for a period divided by GEOs (as defined above) for
that same period.
- Working capital is calculated by the Company as current assets
as of a date minus current liabilities as of that same date.
Liquidity is calculated by the Company as working capital plus
available capacity under the Company’s revolving credit
facility.
- Dividend payout ratio is calculated by the Company as dividends
paid during a period divided by net cash provided by operating
activities for that same period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250212720856/en/
For further information, please contact: Alistair Baker
Senior Vice President, Investor Relations and Business Development
(303) 573-1660
Royal Gold (NASDAQ:RGLD)
Historical Stock Chart
From Jan 2025 to Feb 2025
Royal Gold (NASDAQ:RGLD)
Historical Stock Chart
From Feb 2024 to Feb 2025
