Royal Gold Provides Update on Q2 2024 Stream Segment Sales and Details for Release of Q2 2024 Results

Rhea-AI Summary

Royal Gold (NASDAQ: RGLD) reported that its subsidiary, RGLD Gold AG, sold approximately 52,600 gold equivalent ounces (GEOs) in Q2 2024. This included 39,200 ounces of gold, 593,200 ounces of silver, and 1,500 tonnes of copper from streaming agreements. The company held 12,000 ounces of gold and 450,500 ounces of silver in inventory as of June 30, 2024. Average realized prices were $2,339 per ounce for gold, $28.46 per ounce for silver, and $9,475 per tonne for copper, with sales costs at $459 per GEO. Royal Gold will publish Q2 results on August 7, 2024, and host a conference call on August 8, 2024. As of June 30, 2024, Royal Gold had interests in 177 properties across five continents, including 38 producing mines and 22 development projects.

Positive

• RGLD Gold AG sold approximately 52,600 gold equivalent ounces (GEOs) during Q2 2024.
• Average realized prices for gold, silver, and copper were $2,339 per ounce, $28.46 per ounce, and $9,475 per tonne respectively.
• Cost of sales for Q2 was approximately $459 per GEO.

Negative

• None.

Insights

Financial Analyst

Royal Gold's update on Q2 2024 stream segment sales provides key insights into its operations and financial health. The sale of approximately 52,600 gold equivalent ounces (GEOs) and the detailed breakdown of gold, silver and copper sales are crucial. Analyzing the prices achieved for gold, silver and copper, which were $2,339 per ounce, $28.46 per ounce and $9,475 per tonne respectively, shows the company's ability to capitalize on favorable market conditions.

The cost of sales, at approximately $459 per GEO, suggests strong profit margins given the high average realized prices. For a retail investor, understanding this ratio is key. It indicates that, after accounting for the cost of acquiring these metals, Royal Gold is seeing substantial profits, which could reflect positively on their earnings report. Additionally, holding significant inventories of gold and silver (12,000 ounces of gold and 450,500 ounces of silver) positions the company well to manage future demand and price fluctuations.

This level of operational detail provides transparency and confidence in Royal Gold's management and strategic planning. Potential investors should note this as an indicator of the company’s capability to generate robust financial performance under varying market conditions.

For long-term investors, Royal Gold’s diverse portfolio of 177 properties, including 38 producing mines, signifies a well-balanced risk profile and growth potential. However, it's important to monitor commodity prices as they heavily influence Royal Gold's revenue.

Market Research Analyst

From a market research perspective, Royal Gold's Q2 2024 performance highlights several important trends. The sale figures and the average realized prices indicate strong market demand for precious metals and the company's successful strategy in leveraging its streaming agreements. The average realized prices being higher than typical benchmarks suggest effective timing and execution in their sales strategy.

For retail investors, it's beneficial to understand how these prices compare to market averages and the strategic advantage it represents. Royal Gold's ability to secure favorable prices could be a reflection of their market positioning and negotiation strength. Additionally, the cost structure, where the cost of sales per GEO is significantly lower than the realized prices, points to efficient operational management.

Moreover, holding substantial inventories of gold and silver can be seen as a strategic move to hedge against market volatility, ensuring sustained revenue streams even if market prices fluctuate. This inventory buffer can help stabilize financial performance, a important factor for risk-averse investors.

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 52,600 gold equivalent ounces (GEOs)¹ comprised of approximately 39,200 ounces of gold, 593,200 ounces of silver and 1,500 tonnes of copper related to its streaming agreements during the three-month period ended June 30, 2024 (the “second quarter”). The Company had approximately 12,000 ounces of gold and 450,500 ounces of silver in inventory at June 30, 2024.

RGLD Gold AG’s average realized gold, silver and copper prices for the second quarter were $2,339 per ounce, $28.46 per ounce and $9,475 per tonne ($4.30 per pound), respectively. Cost of sales was approximately $459 per GEO for the second 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 Q2 2024 Results Release

Royal Gold’s results for the quarter ended June 30, 2024, will be released after the market closes on Wednesday, August 7, 2024, followed by a conference call on Thursday, August 8, 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.

Second 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:	862469
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 June 30, 2024, the Company owned interests on 177 properties on five continents, including interests on 38 producing mines and 22 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 June 30, 2024, of $2,338 per ounce.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240709668224/en/

Alistair Baker

Senior Vice President, Investor Relations and Business Development

(303) 573-1660

Source: Royal Gold

FAQ

How many gold equivalent ounces (GEOs) did Royal Gold sell in Q2 2024?

Royal Gold sold approximately 52,600 gold equivalent ounces (GEOs) in Q2 2024.

What were the average realized prices for gold and silver for Royal Gold in Q2 2024?

The average realized prices for gold and silver were $2,339 per ounce and $28.46 per ounce, respectively, in Q2 2024.

When will Royal Gold release its Q2 2024 financial results?

Royal Gold will release its Q2 2024 financial results on August 7, 2024.

What is the cost of sales per gold equivalent ounce for Royal Gold in Q2 2024?

The cost of sales was approximately $459 per gold equivalent ounce (GEO) in Q2 2024.

How much gold and silver inventory did Royal Gold have at the end of Q2 2024?

Royal Gold had 12,000 ounces of gold and 450,500 ounces of silver in inventory as of June 30, 2024.

How many properties does Royal Gold have interests in as of June 30, 2024?

As of June 30, 2024, Royal Gold had interests in 177 properties across five continents.