Royal Gold Provides Update on Q1 2024 Stream Segment Sales and Details for Release of Q1 2024 Results

Rhea-AI Summary

Royal Gold, Inc. (NASDAQ: RGLD) announced the sale of 49,500 gold equivalent ounces in the first quarter of 2024. The company had 16,800 ounces of gold in inventory. The average realized prices for gold, silver, and copper were $2,054, $23.22, and $8,453 per tonne respectively. Cost of sales was $436 per GEO.

Insights

Market Research Analyst

The performance of Royal Gold, Inc. in the first quarter of 2024 indicates a robust volume of gold equivalent ounces (GEOs) sold, which is a vital metric for the company's revenue generation. The sale of 49,500 GEOs, including gold, silver and copper, suggests a strong operational quarter. Inventory levels at the end of the period provide insights into the company's short-term sales potential, with 16,800 ounces of gold and other metals on hand.

The average realized prices for gold, silver and copper reported by Royal Gold are reflective of the market conditions during the quarter. These prices, along with the cost of sales per GEO, are important for assessing the company's profitability. A cost of sales of approximately $436 per GEO, when compared to the realized sales prices, can help investors understand the gross margin and the potential impact on the company's financials.

From a market perspective, the information provided could influence Royal Gold's stock performance, as investors seek to gauge the company's ability to manage costs and capitalize on commodity prices. The data on production and inventory also help in forecasting future revenue and assessing whether the company is on track to meet annual targets.

Financial Analyst

Analyzing Royal Gold's financial health requires a closer look at the cost structure and its implications on the bottom line. With the cost of sales disclosed, it is possible to estimate the company's gross profit margin for the quarter. Investors should assess this figure in the context of the industry average to determine Royal Gold's competitive standing.

Furthermore, the company's streaming agreements are central to its business model. These agreements allow Royal Gold to purchase metals at predetermined prices, providing a hedge against market volatility. The effectiveness of these agreements can be evaluated by comparing the contractual purchase prices to the average market prices for the quarter.

Inventory levels at quarter-end, along with the reported sales and average realized prices, provide a snapshot of the company's operational efficiency and market responsiveness. These factors combined give a comprehensive view of Royal Gold's financial performance and strategic positioning within the precious metals market.

Commodities Analyst

The disclosed average realized prices for gold, silver and copper during the first quarter are indicative of the commodities market trends and Royal Gold's ability to leverage these trends. The company's performance must be contextualized within the broader commodities market, taking into account global economic factors, currency fluctuations and supply-demand dynamics that influence metal prices.

Investors should also consider the geopolitical and economic stability of the regions where Royal Gold's mining interests are located. These factors can have direct implications on production costs, operational risks and ultimately, the company's profitability. The diversity of Royal Gold's portfolio across five continents and its interests in both producing mines and development stage projects provide a measure of risk mitigation against regional volatility.

The company's strategy of managing precious metal streams and royalties is a critical aspect of its business model, offering exposure to metal prices without the same level of operational risk as mining companies. This unique positioning in the market can be attractive to investors looking for precious metals exposure with a different risk profile.

DENVER--(BUSINESS WIRE)-- 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 49,500 gold equivalent ounces (GEOs)¹ comprised of approximately 38,100 ounces of gold, 635,000 ounces of silver and 1,100 tonnes of copper related to its streaming agreements during the three-month period ended March 31, 2024 (the “first quarter”). The Company had approximately 16,800 ounces of gold, 349,400 ounces of silver, and 400 tonnes of copper in inventory at March 31, 2024.

RGLD Gold AG’s average realized gold, silver and copper prices for the first quarter were $2,054 per ounce, $23.22 per ounce and $8,453 per tonne ($3.83 per pound), respectively. Cost of sales was approximately $436 per GEO for the first 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.

Details for Q1 2024 Results Release

Royal Gold’s results for the quarter ended March 31, 2024, will be released after the market closes on Wednesday, May 8, 2024, followed by a conference call on Thursday, May 9, 2024, 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.

First 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:	251350
Webcast URL:	www.royalgold.com under Investors, Events & Presentations

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 March 31, 2024, the Company owned interests on 177 properties on five continents, including interests on 37 producing mines and 24 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.

1 GEOs are calculated as Royal Gold’s revenue divided by the average London PM gold fixing price for the quarter ended March 31, 2024, of $2,070 per ounce.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240409098671/en/

Alistair Baker

Senior Vice President, Investor Relations and Business Development

(647) 749-8204

Source: Royal Gold

FAQ

How many gold equivalent ounces did Royal Gold sell in Q1 2024?

Royal Gold sold approximately 49,500 gold equivalent ounces in the first quarter of 2024.

What were the average realized prices for gold, silver, and copper in Q1 2024?

The average realized prices were $2,054 per ounce for gold, $23.22 per ounce for silver, and $8,453 per tonne for copper.

What was the cost of sales per GEO in Q1 2024?

The cost of sales per GEO for the first quarter was approximately $436.

How many ounces of gold did Royal Gold have in inventory at the end of Q1 2024?

Royal Gold had approximately 16,800 ounces of gold in inventory at the end of March 31, 2024.

Where can I find Royal Gold's Q1 2024 results release information?

Royal Gold's results for the quarter ended March 31, 2024, will be released after the market closes on Wednesday, May 8, 2024, followed by a conference call on Thursday, May 9, 2024.

How many properties does Royal Gold own interests in?

As of March 31, 2024, Royal Gold owned interests in 177 properties on five continents, including interests in 37 producing mines and 24 development stage projects.

Where is Royal Gold publicly traded?

Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol 'RGLD'.

What are GEOs?

GEOs are calculated as Royal Gold’s revenue divided by the average London PM gold fixing price for the quarter ended March 31, 2024, of $2,070 per ounce.