Royal Gold Provides Details on Fiscal Year End Change

Rhea-AI Summary

Royal Gold, Inc. (NASDAQ: RGLD) announced a transition of its fiscal year end from June 30 to December 31, effective December 31, 2021. This change aims to align reporting with industry counterparts. Key details include a transition period until December 31, 2021, with a 10-KT report due within 60 days post-transition. Quarterly 10-Q reports will be filed within 40 days after each quarter. The annual stockholders' meeting is set for May 25, 2022, and dividends are expected to continue quarterly. Guidance on sales and expenses will be provided in Q2 2022.

Positive

• Transition aligns reporting with industry standards.
• Continued quarterly dividend declarations expected.
• Historical financial metrics to be released for clarity.

Negative

• None.

DENVER--(BUSINESS WIRE)-- Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today additional details with respect to the previously announced change in Royal Gold’s fiscal year end.

As previously announced, Royal Gold is transitioning its fiscal year end from June 30 to December 31, effective as of December 31, 2021. This change in fiscal year end will better align Royal Gold’s reporting and disclosure with that of most of its streaming and royalty counterparties and other companies in the precious metals sector.

Important investor considerations for this change include:

• Royal Gold is currently in a transition period that covers the six months between the end of the previous fiscal year on June 30, 2021, and December 31, 2021;
• The 10-KT report for the transition period ending December 31, 2021, will be filed within 60 days of the end of the transition period;
• 10-Q reports for each of the March 31, June 30 and September 30 quarters will be filed within 40 days of the end of each quarter;
• The 2022 stockholders’ meeting is expected to be held on May 25, 2022;
• The Board of Directors expects that any dividend declarations will continue on a quarterly schedule, with the determination of dividend record and payout dates to remain consistent with past practice;
• Stream segment sales and inventory figures for each quarter are expected to be made available prior to filing quarterly financial results, consistent with past practice; and
• One-year guidance for total GEO sales, depreciation, depletion and amortization expense, and effective tax rate is expected to be provided during the second calendar quarter of 2022.

In order to ease the transition to the new fiscal year end, certain unaudited financial metrics on a calendar year basis are shown in Tables 1 and 2 of this press release for the five-year period 2016 through 2020 inclusive. Table 1 contains an unaudited summary of revenue by property, and Table 2 contains select unaudited financial metrics. Royal Gold expects to provide further historical financial metrics along with the filing of financial results in the future.

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 September 30, 2021, the Company owned interests on 190 properties on five continents, including interests on 44 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.

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 about our fiscal year end change and future reporting practices. Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a lower-price environment for gold, silver, copper, nickel 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, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, or contractual issues involving our stream or royalty agreements; risks associated with doing business in foreign countries; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; the impacts of the COVID-19 pandemic; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2021, and subsequent Forms 10-Q. Most of these factors are beyond our ability to predict or control. 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.

TABLE 1
Five-Year Historical Revenue by Stream and Royalty Interests
(In $ thousands unless noted otherwise, unaudited)
					Twelve Months Ended December 31,
Stream/Royalty	Metal(s)		Current Stream/Royalty Interest1			2020				2019				2018				2017				2016
Stream:
Canada
Mount Milligan	Gold, copper		35% of payable gold and 18.75% of payable copper		$	149,631			$	125,121			$	116,966			$	120,270			$	129,730
Rainy River	Gold, silver		6.5% of gold produced and 60% of silver produced			29,139				26,875				17,635				1,070				--
Other-Canada						--				--				--				--				140
Latin America
Pueblo Viejo	Gold, silver		7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver		$	110,571			$	90,359			$	81,014			$	95,960			$	77,670
Andacollo	Gold		100% of payable gold			74,225				75,155				58,852				63,035				63,964
NX Gold	Gold		25% of gold produced			--				--				--				--				--
Africa
Wassa	Gold		10.5% of payable gold		$	28,960			$	20,427			$	18,889			$	16,925			$	11,313
Prestea and Bogoso	Gold		5.5% of payable gold			4,960				6,777				10,827				15,289				9,554
Khoemacau	Silver		90% of payable silver			--				--				--				--				--
Total stream revenue					$	397,486			$	344,714			$	304,183			$	312,549			$	292,371
Royalty:
Canada
Holt	Gold		0.00013 x Au price NSR		$	5,565			$	9,960			$	10,202			$	12,031			$	11,568
Voisey's Bay	Copper, nickel, cobalt		2.7% NVR			7,654				9,706				8,853				--				2,778
Canadian Malartic	Gold		1.0%-1.5% sliding-scale NSR			7,377				6,745				8,113				7,486				7,146
Williams	Gold		0.97% NSR			3,074				2,252				1,778				2,008				1,957
LaRonde Zone 5	Gold		2.0% NSR			2,044				1,810				187				13				-
Other-Canada	Various		Various			1,310				1,371				1,351				1,287				1,491
United States
Cortez	Gold		GSR1, GSR2, GSR3, NVR1, NVR1C		$	28,444			$	16,155			$	5,172			$	8,552			$	6,994
Robinson	Gold, copper		3.0% NSR			10,669				8,337				9,110				8,881				7,896
Marigold	Gold		2.0% NSR			8,134				6,057				5,025				5,009				5,005
Goldstrike	Gold		0.9% NSR			3,419				3,359				3,268				3,328				4,403
Wharf	Gold		0.0%-2.0% sliding-scale GSR			3,340				2,384				1,818				2,243				2,409
Other-United States	Various		Various			4,860				4,828				6,716				10,883				9,192
Latin America
Peñasquito	Gold, silver, lead, zinc		2.0% NSR		$	36,661			$	17,566			$	20,197			$	27,719			$	20,716
Dolores	Gold, silver		3.25% NSR (gold), 2.0% NSR (silver)			7,058				7,022				6,806				5,511				5,278
El Limon	Gold		3.0% NSR			4,172				2,451				1,980				1,160				1,802
Other-Latin America	Various		Various			1,661				3,380				12,538				11,761				11,054
Africa
Taparko	Gold		2.0% GSR, 0.75% GSR (milling royalty)		$	2,971			$	1,490			$	2,075			$	2,589			$	2,725
Australia
South Laverton	Gold		1.5% NSR, 4.0% NPI		$	10,176			$	4,239			$	4,387			$	3,257			$	2,549
Gwalia Deeps	Gold		1.5% NSR			4,023				3,859				5,057				4,747				4,957
Meekatharra	Gold		0.45% or 1.5% NSR			3,904				2,786				2,424				2,667				1,758
Other-Australia	Various		Various			2,657				3,054				1,511				2,127				3,114
Europe
Las Cruces	Copper		1.5% NSR		$	4,986			$	4,366			$	7,053			$	6,920			$	5,365
Other-Europe	Various		Various			-				-				-				-				-
Total royalty revenue					$	164,157			$	123,174			$	125,620			$	130,180			$	120,155
Total revenue					$	561,643			$	467,888			$	429,803			$	442,729			$	412,526
GEOs Sold2			Ounces			317,700				336,800				338,300				352,100				352,300
Revenue by Commodity
Gold			%			78	%			77	%			77	%			80	%			88	%
Silver			%			9	%			9	%			9	%			9	%			6	%
Copper			%			10	%			10	%			10	%			8	%			3	%
Other			%			3	%			4	%			4	%			3	%			3	%

1 Refer to Part I, Item 2, of the Company’s Fiscal 2021 Form 10-K for a full description of the Company’s stream and royalty interests.

2 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 gold price for that same period.

TABLE 2
Five-Year Historical Select Financial Metrics
(Unaudited)
			Twelve Months Ended December 31,
Metric	Units			2020		2019		2018		2017		2016
Adjusted EBITDA1	$ thousands			445,026		356,367		316,923		331,557		304,285
Operating Cash Flow	$ thousands			385,320		299,194		285,058		289,215		240,135
Operating Cash Flow	$ per diluted share			5.87		4.56		4.35		4.42		3.68
Common Stock Dividends	$ thousands			73,451		69,478		65,494		62,752		60,056
Common Stock Dividends	$ per diluted share			1.12		1.06		1.00		0.96		0.92

1 Adjusted EBITDA is a non-GAAP financial measure. See below for additional information. For purposes of this table and the reconciliation below, calendar-year adjusted EBITDA was calculated by adding together previously reported adjusted EBITDA amounts for the four quarterly periods in the calendar year. These amounts were calculated based on the previous June 30 fiscal year end and do not reflect any changes to income tax expense (benefit) that would have occurred if historical results had been presented based on a December 31 fiscal year end.

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 non-GAAP financial measures varies among companies, non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below a reconciliation of our non-GAAP financial measure to the comparable GAAP measure. We believe non-GAAP financial measures provide useful information to investors for analysis of our business. We use non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe 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 measure are subjective and involve significant management judgement.

The non-GAAP financial measure used by management in this press release is adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, which 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. 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.

Reconciliation of non-GAAP financial measures to U.S. GAAP measures:
TTM Adjusted EBITDA:
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,
(In $ thousands, unaudited)	2020			2020			2020			2020
Net income	59,988			106,674			48,672			38,292
Depreciation, depletion and amortization	47,945			46,300			45,396			51,228
Non-cash employee stock compensation	1,398			1,493			833			4,644
Impairment of royalty interests	--			--			1,341			--
Gain on sale of Peak Gold JV interest	--			(33,906	)		--			--
Fair value changes in equity securities	382			(2,539	)		(6,390	)		3,819
Interest and other, net	965			1,454			2,249			1,468
Income tax expense (benefit)	16,031			(2,377	)		45			8,702
Non-controlling interest in operating (income) loss of consolidated subsidiaries	(99	)		265			343			410
Adjusted EBITDA	126,610			117,364			92,489			108,563
TTM adjusted EBITDA	445,026
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,
(In $ thousands, unaudited)	2019			2019			2019			2019
Net income	40,414			68,872			25,466			28,594
Depreciation, depletion and amortization	40,096			38,714			42,331			39,368
Non-cash employee stock compensation	1,538			2,101			1,107			1,440
Fair value changes in equity securities	(222	)		1,375			3,482			(1,781	)
Interest and other, net	1,991			2,059			5,633			7,000
Income tax expense (benefit)	11,124			(23,525	)		6,143			9,388
Non-controlling interest in operating (income) loss of consolidated subsidiaries	907			1,581			993			178
Adjusted EBITDA	95,848			91,177			85,155			84,187
TTM adjusted EBITDA	356,367
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,
(In $ thousands, unaudited)	2018			2018			2018			2018
Net income (loss)	23,043			11,976			24,007			(154,118	)
Depreciation, depletion and amortization	38,807			42,551			42,317			39,679
Non-cash employee stock compensation	1,625			2,444			2,322			1,563
Impairment of royalty interests	--			--			--			239,364
Fair value changes in equity securities	3,631			1,468			--			--
Interest and other, net	6,923			7,774			7,512			6,513
Income tax expense (benefit)	(2,148	)		4,115			4,728			(45,859	)
Non-controlling interest in operating (income) loss of consolidated subsidiaries	543			3,032			2,643			468
Adjusted EBITDA	72,424			73,360			83,529			87,610
TTM adjusted EBITDA	316,923
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,
(In $ thousands, unaudited)	2017			2017			2017			2017
Net income (loss)	(15,787	)		26,548			16,836			21,531
Depreciation, depletion and amortization	42,008			39,692			39,851			40,164
Non-cash employee stock compensation	2,021			2,373			3,224			314
Interest and other, net	8,389			7,628			10,067			7,928
Income tax expense (benefit)	48,360			7,544			7,717			6,492
Non-controlling interest in operating (income) loss of consolidated subsidiaries	1,022			2,083			3,422			2,130
Adjusted EBITDA	86,013			85,868			81,117			78,559
TTM adjusted EBITDA	331,557
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,
(In $ thousands, unaudited)	2016			2016			2016			2016
Net income (loss)	27,102			26,955			18,082			(69,498	)
Depreciation, depletion and amortization	39,519			40,102			35,391			38,163
Non-cash employee stock compensation	2,299			4,144			2,250			2,340
Impairment of royalty interests	--			--			--			98,973
Interest and other, net	2,335			6,748			5,409			5,702
Income tax expense (benefit)	5,044			7,188			5,025			(8,262	)
Non-controlling interest in operating (income) loss of consolidated subsidiaries	2,091			2,984			2,357			1,842
Adjusted EBITDA	78,390			88,121			68,514			69,260
TTM adjusted EBITDA	304,285

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211215005886/en/

For further information, please contact:

Alistair Baker

Vice President, Investor Relations and Business Development

(720) 554-6995

Source: Royal Gold

FAQ

What is the reason for Royal Gold's fiscal year end change to December 31?

Royal Gold is changing its fiscal year end to align its reporting with most of its streaming and royalty counterparts in the precious metals sector.

When will Royal Gold file its 10-KT report for the transition period?

The 10-KT report for the transition period ending December 31, 2021, will be filed within 60 days after the end of the transition period.

What are the expected quarterly reporting timelines for Royal Gold after the fiscal year change?

Royal Gold will file its 10-Q reports within 40 days after each quarter ends, specifically for March 31, June 30, and September 30.

When is Royal Gold's annual stockholders’ meeting scheduled?

The annual stockholders' meeting for Royal Gold is expected to be held on May 25, 2022.

What future guidance will Royal Gold provide after changing its fiscal year end?

Royal Gold expects to provide one-year guidance for total GEO sales, depreciation, depletion and amortization expense, and effective tax rate during the second calendar quarter of 2022.