Royal Gold Provides Update on its Fiscal 2021 Fourth Quarter Stream Segment Sales

Rhea-AI Summary

Royal Gold, Inc. (NASDAQ: RGLD) reported fourth quarter fiscal 2021 sales of approximately 63,500 gold equivalent ounces, including 50,500 gold ounces and 319,000 silver ounces, aligning with prior guidance. The company had a higher-than-expected inventory of about 38,000 GEOs at quarter-end. Average realized prices per ounce for gold, silver, and copper were $1,801, $26.45, and $9,584, respectively. Cost of sales per GEO decreased to $388, down from $410 in the previous quarter.

Positive

• Fourth quarter sales met guidance of 60,000 to 65,000 GEOs.
• Average realized prices for gold improved to $1,801 per ounce.
• Cost of sales decreased to $388 per GEO.

Negative

• Higher inventory of GEOs (38,000) compared to previous guidance (31,000 to 36,000).

Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that its wholly owned subsidiary, RGLD Gold AG, sold approximately 63,500 gold equivalent ounces¹ (“GEOs”) comprised of approximately 50,500 gold ounces, 319,000 silver ounces and 1,500 tonnes of copper related to its streaming agreements during its fiscal 2021 fourth quarter ended June 30, 2021 (“fourth quarter”). Fourth quarter stream sales were in line with the guidance range of 60,000 to 65,000 GEOs previously provided. The Company had approximately 38,000 GEOs in inventory at the end of the fourth quarter consisting of 27,000 gold ounces, 485,000 silver ounces and 800 tonnes of copper. Inventory at the end of the fourth quarter was higher than the previously provided guidance range of 31,000 to 36,000 GEOs primarily due to timing of deliveries.

RGLD Gold AG’s average realized gold, silver and copper prices for the fourth quarter were $1,801 per ounce, $26.45 per ounce, and $9,584 per tonne ($4.35 per pound), respectively, compared to $1,828, $26.44, and $8,575 ($3.89), respectively, in the prior quarter ended March 31, 2021 (“third quarter”). Cost of sales was approximately $388 per GEO for the fourth quarter using the quarterly average silver-gold ratio of approximately 68 to 1 and copper-gold ratio of approximately 0.19 tonnes per ounce, compared to cost of sales of $410 per GEO in the third quarter. Cost of sales is specific to the Company’s streaming 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.

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, 2021, the Company owned interests on 187 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.

For further information, please contact:		Fourth Quarter 2021 Call Information:
Alistair Baker		Dial-In	855-209-8260 (U.S.); toll free
Vice President Investor Relations and Business Development (720) 554-6995		Numbers:	855-669-9657 (Canada); toll free 412-542-4106 (International)
		Conference Title:	Royal Gold
Note: Royal Gold’s fourth quarter results will be released after the market closes on Wednesday, August 11, 2021, followed by a conference call on Thursday, August 12, 2021 at 12:00 p.m. Eastern Time (10:00 a.m. Mountain Time). The call will be webcast and archived on the Company’s website for a limited time.		Webcast URL:	www.royalgold.com under Investors, Events & Presentations

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 fourth quarter operating results. 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, 2020, 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.

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1. 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.

 

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FAQ

What were the fourth quarter sales for Royal Gold (RGLD) in fiscal 2021?

Royal Gold reported fourth quarter sales of approximately 63,500 gold equivalent ounces.

What was the cost of sales per GEO for Royal Gold (RGLD) in Q4 2021?

The cost of sales per GEO for Royal Gold in the fourth quarter was approximately $388.

How much inventory did Royal Gold (RGLD) have at the end of Q4 2021?

Royal Gold had approximately 38,000 gold equivalent ounces in inventory at the end of the fourth quarter.

What were the average realized prices for gold, silver, and copper for Royal Gold (RGLD) in Q4 2021?

The average realized prices were $1,801 per ounce for gold, $26.45 per ounce for silver, and $9,584 per tonne for copper.