Royal Gold Reports Strong Fourth Quarter and Full Year 2023 Operating and Financial Results
- Strong financial performance in 2023 with net income of $239.4 million, revenue of $605.7 million, and operating cash flow of $415.8 million.
- Sales volume for 2023 slightly below guidance at 312,100 GEOs.
- Debt reduced by $325 million to $250 million, total available liquidity increased to $845 million.
- Dividend increased for the 23rd consecutive year to $1.60 per share for 2024, a 7% increase over 2023.
- Focus on increasing return of capital to shareholders and positioning for new acquisition opportunities.
- Anticipation of continued revenue growth from new producers and development projects in 2024.
- None.
Insights
The reported net income of $239.4 million and operating cash flow of $415.8 million by Royal Gold, Inc. reveal a robust financial performance for the fiscal year 2023. The ability to reduce debt by $325 million, enhancing liquidity to $845 million and extending the maturity of the revolving credit facility to 2028 are indicative of strong financial management and operational efficiency. The consistent increase in dividends, marking the 23rd year, signals a shareholder-friendly policy and could potentially attract dividend-focused investors. The high adjusted EBITDA margin of 79% suggests a solid profitability level, especially when compared to the industry average, which typically ranges between 40-60% for mining companies.
From a market perspective, Royal Gold's revenue split shows a heavy reliance on gold, which constitutes 76% of its revenue. This exposure to gold prices can be a double-edged sword, as fluctuations in gold markets may significantly impact the company's revenue streams. However, the diversification into other metals like silver and copper provides a hedge against gold price volatility. The slight miss in sales volume against the lower end of the guidance range might raise concerns, but the alignment with third quarter expectations indicates transparency in company forecasts. The anticipation of revenue growth from new producers and transition of development projects into production stages could represent future growth catalysts, provided that the execution aligns with the company's strategic planning.
On the operational front, the sales volume of 312,100 GEOs, while slightly below guidance, does not appear to be a significant deviation, especially considering the volatile nature of mining operations. The focus on reducing debt and increasing liquidity positions Royal Gold well for strategic acquisitions and capitalizes on new acquisition opportunities that align with their investment criteria. The mention of ramping-up operations at Bellevue and King of the Hills, along with the expected revenue from projects transitioning to production such as Goldrush, Mara Rosa, Côté Gold and Manh Choh, suggests a forward-looking strategy aimed at long-term growth and resource expansion. This strategic direction is particularly relevant in the precious metals sector, where reserve replacement and portfolio diversification are key to sustaining production levels and financial performance.
For the quarter ended December 31, 2023 (“fourth quarter”), we reported net income of
Sales volume for 2023 at metal prices used to provide GEO2 guidance was 315,600 GEOs3, slightly below the low end of the previously-issued guidance range of 320,000 to 345,000 GEOs, and in line with the range of expectations we provided with our third quarter 2023 results. At actual 2023 metal prices, sales volume was approximately 312,100 GEOs.
2023 Highlights:
-
Solid financial results with revenue of
$605.7 million $415.8 million $239.4 million -
Revenue split:
76% gold,12% silver,9% copper - Sales volume of 312,100 GEOs2,3
-
Sustained high adjusted EBITDA margin1 of
79% -
Debt reduced by
$325 million $250 million -
Total available liquidity increased to
$845 million - Revolving credit facility maturity extended to June 28, 2028
-
Paid
$1.50
Fourth Quarter 2023 Highlights:
-
Increased dividend for the 23rd consecutive year to
$1.60 7% increase over 2023 -
Repaid
$75 million
“We finished 2023 on a strong note with solid financial results in the fourth quarter,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “We took advantage of our strong cash flow during the year to repay debt and build our liquidity to be well-positioned for new acquisition opportunities that meet our investment criteria. We also kept our focus on increasing our return of capital to shareholders and we raised our dividend for the 23rd consecutive year, which remains an unparalleled record in the precious metals sector.”
“While we anticipate issuing 2024 guidance in April for our total portfolio, we are expecting to see continued revenue growth from our newest producers,
| ____________________ |
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. |
3 2023 actual volume was approximately 315,600 GEOs at commodity prices used to set 2023 guidance of: |
Recent Portfolio Developments
Principal Property Updates
Notable recent updates as reported by the operators of our Principal Properties include:
Agreement with Centerra that Provides for Mine Life Extension at Mount Milligan
On February 14, 2024, we announced an additional agreement with Centerra Gold Inc. (“Centerra”) with respect to the Mount Milligan mine in
Additionally, on February 14, 2024, Centerra provided 2024 production guidance for Mount Milligan of 180,000 to 200,000 ounces of gold and 55 to 65 million pounds of copper.
Record of Decision Received at Goldrush and
On December 11, 2023, Barrick Gold Corporation (“Barrick”) reported that the Record of Decision (“ROD”) approving the plan of operations for the new Goldrush mine in
Further, on February 14, 2024, Barrick reported that production at the Cortez Complex in 2024 is expected to be lower in 2024 relative to 2023 primarily due to changes in the Crossroads resource model that are expected to reduce oxide mill feed. Barrick expects this reduction to be partially offset by a higher contribution from Goldrush, although the delay in receiving the ROD during 2023 has pushed some production at Goldrush from 2024 into 2025. Barrick is expecting gold production at the Cortez Complex to be 620,000 to 680,000 ounces in 2024 (
Update on Ramp-Up of Plant Expansion with Further Deferral of Silver Deliveries at Pueblo Viejo
On February 14, 2024, Barrick provided an update on the plant expansion and mine life extension project at Pueblo Viejo. According to Barrick, construction and commissioning activities for the plant expansion were substantially completed by the end of 2023. Reconstruction of the ore stockpile feed conveyor is underway after a failure reported in the fourth quarter, and Barrick now expects this reconstruction to be completed in the second quarter of 2024, which will allow the plant to reach full throughput. Barrick further reported that the focus during the first quarter of 2024 will be on the continued stability and optimization of the flotation circuit. With respect to the mine life extension project, Barrick reported that the technical and social studies for additional tailings storage capacity at the El Naranjo facility continued to advance as planned. Geotechnical drilling and site investigations are ongoing and continue to support the feasibility study, due for completion in the third quarter of 2024.
Silver stream deliveries were approximately 223,000 ounces for the fourth quarter compared to 337,900 ounces for the prior year quarter, and an additional 165,400 ounces of silver deliveries were deferred during the current period. As of December 31, 2023, approximately 854,000 ounces remain deferred, and the timing for the delivery of the entire deferred amount is uncertain. We expect that silver recoveries could remain highly variable and material deliveries of deferred silver ounces are not expected until the plant expansion is complete and is running at full production levels.
Barrick is expecting its share of gold production at Pueblo Viejo to be 420,000 to 490,000 ounces in 2024 (
Production for 2024 Expected to Remain in Line with 2023 at Andacollo
On January 16, 2024, Teck Resources Limited (“Teck”) reported that the Andacollo mine in
Announcement of Change in Ownership of Khoemacau
On November 21, 2023, Khoemacau Copper Mining (“KCM”), the owner of the Khoemacau mine in
During development of Khoemacau, Royal Gold made available a
Other Property Updates
Notable recent updates as reported by the operators of other select portfolio assets include:
Producing Properties
King of the Hills (
Development and Evaluation Properties
Back River (
Côté Gold (
Great Bear (
Mara Rosa (
Manh Choh (
2023 Overview
For the year ended December 31, 2023, we recorded net income and comprehensive income attributable to Royal Gold stockholders (“net income”) of
For the year ended December 31, 2023, we recognized total revenue of
The increase in our total revenue for the year ended December 31, 2023, compared with the year ended December 31, 2022, resulted primarily from higher gold and silver prices when compared to the prior year. Lower sales compared to the prior year due to lower gold and copper sales at Mount Milligan, lower production from Pueblo Viejo and the impact of the approximate 4 month suspension of operations at Peñasquito commencing in June, 2023, due to a labor strike, were partially offset by higher gold production at the Cortez Legacy Zone and the new
Cost of sales, which excludes depreciation, depletion and amortization (“DD&A”), decreased to
General and administrative costs increased to
DD&A decreased to
There were no impairment charges on any of our stream or royalty interests for the year ended December 31, 2023. During the year ended December 31, 2022, we recognized an impairment loss of
Interest and other expense increased to
Income tax expense was
Net cash provided by operating activities totaled
Net cash used in investing activities totaled
Net cash used in financing activities totaled
At December 31, 2023, we had working capital of
Fourth Quarter 2023 Overview
In the fourth quarter, we recorded net income of
For the fourth quarter, we recognized total revenue of
The decrease in our total revenue resulted primarily from lower gold and copper sales at Mount Milligan, lower gold and silver sales at Pueblo Viejo and lower royalty revenue at Peñasquito. These decreases were partially offset by higher sales from Andacollo, higher revenue from
Cost of sales, which excludes DD&A, decreased to
General and administrative costs increased to
DD&A decreased to
Interest and other expense was
For the fourth quarter, we recorded income tax expense of
Net cash provided by operating activities totaled
Net cash used in investing activities was nil for the fourth quarter, compared to
Net cash used in financing activities totaled
Other Corporate Updates
Total Available Liquidity Increases to Approximately
On December 6, 2023, Royal Gold repaid
Outlook for 2024
We expect stream segment sales of 47,000 to 52,000 GEOs for the quarter ended March 31, 2024, and we expect to issue guidance for 2024 sales, depreciation, depletion and amortization expense, and effective tax rate early in the second quarter of 2024.
Royal Gold has no material additional financing commitments.
Property Highlights
A breakdown of revenue for the Company’s stream and royalty portfolio can be found on Table 1 for the quarters and calendar years ended December 31, 2023 and December 31, 2022. Table 2 shows historical stream metal sales and metal sales attributable to the Company’s royalty interests for the Company’s principal stream and royalty properties. Calendar year 2023 operator production estimates for the Company’s principal stream and royalty properties compared to actual production reported by the operators at these properties can be found on Table 3. Stream segment purchases and sales for the quarters and calendar years ended December 31, 2023 and December 31, 2022 and inventories for December 31, 2023 and December 31, 2022 can be found on Table 4. Highlights at certain of the Company’s principal producing and development properties during 2023 compared to 2022 are detailed in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2023, which is expected to be filed with the Securities and Exchange Commission on February 15, 2024.
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, 2023, the Company owned interests on 178 properties on five continents, including interests on 37 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.
Fourth Quarter and 2023 Call Information: |
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Dial-In Numbers: |
844-200-6205 ( |
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833-950-0062 ( |
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646-904-5544 (International) |
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Access Code: |
565180 |
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Webcast URL: |
www.royalgold.com under Investors, Events & Presentations |
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Note: Management’s conference call reviewing the fourth quarter and full year 2023 results will be held on Thursday, February 15, 2024, 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 Investors 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
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 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, or operational disruptions; 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 acquisitions; adverse economic and market conditions; impact 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. 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 reports filed by the operators for information regarding those properties.
Information in this press release concerning the Khoemacau Copper Project was provided to the Company by Cupric Canyon Capital L.P., the privately held owner and developer of Khoemacau. Such information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. 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 this third-party information, and investors are cautioned not to rely unduly upon this information.
TABLE 1 |
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Revenue by Stream and Royalty Interests for the Fourth Quarter and Calendar Year 2023 and 2022 |
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(In thousands) |
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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Stream/Royalty |
Metal(s) |
|
Current Stream/Royalty Interest1 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
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Stream: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mount Milligan |
Gold, copper |
|
|
|
$ |
36,429 |
|
$ |
50,947 |
|
$ |
158,167 |
|
$ |
180,543 |
|
Gold, silver |
|
|
|
|
10,127 |
|
|
8,484 |
|
|
38,794 |
|
|
31,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pueblo Viejo |
Gold, silver |
|
|
|
$ |
13,661 |
|
$ |
21,631 |
|
$ |
76,247 |
|
$ |
85,863 |
Andacollo |
Gold |
|
|
|
|
13,519 |
|
|
7,782 |
|
|
48,920 |
|
|
47,347 |
Xavantina |
Gold |
|
|
|
|
8,199 |
|
|
4,932 |
|
|
25,395 |
|
|
18,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Khoemacau |
Silver |
|
|
|
$ |
7,521 |
|
$ |
6,145 |
|
$ |
34,602 |
|
$ |
18,786 |
Wassa |
Gold |
|
|
|
|
8,238 |
|
|
8,312 |
|
|
32,815 |
|
|
31,152 |
Prestea and Bogoso |
Gold |
|
|
|
|
604 |
|
|
697 |
|
|
3,340 |
|
|
3,849 |
Total stream revenue |
|
|
|
|
$ |
98,298 |
|
$ |
108,930 |
|
$ |
418,280 |
|
$ |
417,793 |
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's Bay |
Copper, nickel, cobalt |
|
|
|
$ |
1,992 |
|
$ |
3,948 |
|
$ |
5,309 |
|
$ |
14,450 |
Red Chris |
Gold, copper |
|
|
|
|
- |
|
|
- |
|
|
3,170 |
|
|
3,432 |
LaRonde Zone 5 |
Gold |
|
|
|
|
591 |
|
|
642 |
|
|
2,461 |
|
|
2,486 |
Canadian |
Gold |
|
|
|
|
129 |
|
|
1,012 |
|
|
1,463 |
|
|
4,689 |
Williams2 |
Gold |
|
|
|
|
242 |
|
|
184 |
|
|
(987) |
|
|
882 |
Other- |
Various |
|
Various |
|
|
173 |
|
|
48 |
|
|
1,296 |
|
|
1,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy Zone |
Gold |
|
Approx. |
|
$ |
22,858 |
|
$ |
18,381 |
|
$ |
79,920 |
|
$ |
47,769 |
CC Zone |
Gold |
|
Approx. |
|
|
4,952 |
|
|
2,790 |
|
|
14,626 |
|
|
2,790 |
Robinson |
Gold, copper |
|
|
|
|
3,619 |
|
|
3,358 |
|
|
9,109 |
|
|
11,659 |
Marigold |
Gold |
|
|
|
|
2,593 |
|
|
1,439 |
|
|
5,110 |
|
|
6,061 |
Leeville |
Gold |
|
|
|
|
2,170 |
|
|
963 |
|
|
5,712 |
|
|
4,004 |
Wharf |
Gold |
|
|
|
|
1,169 |
|
|
628 |
|
|
3,630 |
|
|
2,485 |
Goldstrike |
Gold |
|
|
|
|
495 |
|
|
734 |
|
|
1,575 |
|
|
3,117 |
Other- |
Various |
|
Various |
|
|
751 |
|
|
733 |
|
|
4,008 |
|
|
3,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito |
Gold, silver, lead, zinc |
|
|
|
$ |
4,234 |
|
$ |
11,397 |
|
$ |
17,772 |
|
$ |
43,165 |
Dolores |
Gold, silver |
|
|
|
|
2,106 |
|
|
2,075 |
|
|
7,981 |
|
|
9,223 |
El Limon |
Gold |
|
|
|
|
1,158 |
|
|
1,293 |
|
|
5,280 |
|
|
5,705 |
Other- |
Various |
|
Various |
|
|
- |
|
|
130 |
|
|
456 |
|
|
1,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other- |
Various |
|
Various |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Laverton |
Gold |
|
|
|
$ |
2,006 |
|
$ |
1,478 |
|
$ |
7,283 |
|
$ |
6,172 |
King of the Hills |
Gold |
|
|
|
|
1,094 |
|
|
883 |
|
|
4,200 |
|
|
883 |
Gwalia Deeps |
Gold |
|
|
|
|
1,044 |
|
|
832 |
|
|
3,726 |
|
|
4,059 |
Meekatharra |
Gold |
|
|
|
|
517 |
|
|
654 |
|
|
2,175 |
|
|
2,952 |
|
Gold |
|
|
|
|
51 |
|
|
- |
|
|
51 |
|
|
- |
Other- |
Various |
|
Various |
|
|
424 |
|
|
179 |
|
|
1,576 |
|
|
1,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Las Cruces |
Copper |
|
|
|
$ |
- |
|
$ |
269 |
|
$ |
535 |
|
$ |
1,277 |
Total royalty revenue |
|
|
|
|
$ |
54,368 |
|
$ |
54,050 |
|
$ |
187,437 |
|
$ |
185,413 |
Total revenue |
|
|
|
|
$ |
152,666 |
|
$ |
162,980 |
|
$ |
605,717 |
|
$ |
603,206 |
1 |
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. |
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2 |
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 |
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Historical Stream Metal and Royalty Sales for Principal Properties |
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Reported Production For The Quarter Ended2 |
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Property |
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Operator |
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Current Stream/ Royalty Interest1 |
|
Metal(s) |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
||||||||||
Stream: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mount Milligan |
|
Centerra |
|
|
|
Gold |
|
14,000 |
|
oz |
|
11,300 |
|
oz |
|
17,500 |
|
oz |
|
15,200 |
|
oz |
|
20,200 |
|
oz |
|
|
|
|
|
|
Copper |
|
2.4 |
|
Mlb |
|
3.2 |
|
Mlb |
|
1.7 |
|
Mlb |
|
4.5 |
|
Mlb |
|
4.5 |
|
Mlb |
Pueblo Viejo |
|
Barrick ( |
|
|
|
Gold |
|
5,000 |
|
oz |
|
6,800 |
|
oz |
|
7,400 |
|
oz |
|
7,900 |
|
oz |
|
8,900 |
|
oz |
|
|
|
|
|
|
Silver |
|
171,100 |
|
oz |
|
150,700 |
|
oz |
|
362,200 |
|
oz |
|
337,900 |
|
oz |
|
319,100 |
|
oz |
Andacollo |
|
Teck |
|
|
|
Gold |
|
7,000 |
|
oz |
|
7,500 |
|
oz |
|
4,000 |
|
oz |
|
7,000 |
|
oz |
|
4,700 |
|
oz |
Khoemacau |
|
Khoemacau Copper Mining |
|
|
|
Silver |
|
323,800 |
|
oz |
|
386,100 |
|
oz |
|
373,000 |
|
oz |
|
404,100 |
|
oz |
|
307,300 |
|
oz |
Royalty: |
|
|
|
|
|
|
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|
|
|
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|
|
|
|
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|
|
|
|
|
|
Nevada Gold Mines LLC |
|
|
|
Gold |
|
111,900 |
|
oz |
|
98,800 |
|
oz |
|
68,100 |
|
oz |
|
117,200 |
|
oz |
|
109,200 |
|
oz |
|
|
|
|
|
|
Gold |
|
156,600 |
|
oz |
|
120,000 |
|
oz |
|
111,500 |
|
oz |
|
106,600 |
|
oz |
|
114,000 |
|
oz |
Peñasquito |
|
Newmont Corporation |
|
|
|
Gold |
|
25,900 |
|
oz |
|
- |
|
oz |
|
48,100 |
|
oz |
|
55,600 |
|
oz |
|
164,300 |
|
oz |
|
|
|
|
|
|
Silver |
|
4.6 |
|
Moz |
|
- |
|
Moz |
|
6.0 |
|
Moz |
|
6.1 |
|
Moz |
|
7.1 |
|
Moz |
|
|
|
|
|
|
Lead |
|
34.9 |
|
Mlb |
|
- |
|
Mlb |
|
35.6 |
|
Mlb |
|
36.4 |
|
Mlb |
|
40.3 |
|
Mlb |
|
|
|
|
|
|
Zinc |
|
33.5 |
|
Mlb |
|
- |
|
Mlb |
|
89.7 |
|
Mlb |
|
99.2 |
|
Mlb |
|
83.5 |
|
Mlb |
1 |
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. |
|
2 |
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. |
|
3 |
The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of |
|
4 |
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 |
TABLE 3 |
||||||||||||
Operator’s Estimated and Actual Production |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar Year 2023 Operator's Production |
|
Calendar Year 2023 Operator's Production |
||||||||
|
|
Estimate1 |
|
Actual2 |
||||||||
Stream/Royalty |
|
Gold (oz) |
|
Silver (oz) |
|
Base Metals (lb) |
|
Gold (oz) |
|
Silver (oz) |
|
Base Metals (lb) |
Stream: |
|
|
|
|
|
|
|
|
|
|
|
|
Andacollo3 |
|
22,000 - 27,000 |
|
|
|
|
|
23,400 |
|
|
|
|
Mount Milligan4 |
|
150,000 - 160,000 |
|
|
|
|
|
154,400 |
|
|
|
|
Copper |
|
|
|
|
|
60 - 70 M |
|
|
|
|
|
62 M |
Pueblo Viejo5 |
|
470,000 - 520,000 |
|
N/A |
|
|
|
335,000 |
|
N/A |
|
|
Khoemacau6 |
|
|
|
1.5 - 1.7 M |
|
|
|
|
|
1.5 M |
|
|
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
940,000 - 1,060,000 |
|
|
|
|
|
893,000 |
|
|
|
|
Peñasquito8 |
|
N/A |
|
N/A |
|
|
|
123,000 |
|
13.8 M |
|
|
Lead |
|
|
|
|
|
N/A |
|
|
|
|
|
86 M |
Zinc |
|
|
|
|
|
N/A |
|
|
|
|
|
180 M |
1 |
Production estimates received from the operators are for calendar 2023. Please refer to our cautionary language regarding forward-looking statements, as well as the Risk Factors identified in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for information regarding factors that could affect actual results. |
|
2 |
Actual production figures shown are from the operators and cover the period January 1, 2023 through December 31, 2023, unless otherwise noted in footnotes to this table. Such amounts may differ from Royal Gold’s reported revenue and production and are not reduced to show the production attributable to our interests. |
|
3 |
The estimated and actual production figures shown for Andacollo are contained gold in concentrate. Deliveries to Royal Gold are determined using a fixed gold payability factor of |
|
4 |
The estimated and actual production figures shown for Mount Milligan are payable gold and copper in concentrate. Deliveries to Royal Gold are determined using a fixed payability factor of |
|
5 |
The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent the |
|
6 |
The estimated and actual production figures for Khoemacau are payable silver in concentrate. Deliveries to Royal Gold are determined using a fixed silver payability factor of |
|
7 |
The estimated and actual production figures for |
|
8 |
The gold and silver production figures shown for Peñasquito are payable gold and silver in concentrate and doré. The lead and zinc production figures shown are payable lead and zinc in concentrate. Actual production figures are for the period January 1, 2023 through September 30, 2023, and no production occurred during the third quarter of 2023 due to the suspension of operations resulting from a strike action on June 7, 2023. Estimated production figures are not available as 2023 production guidance was withdrawn by Newmont on July 20, 2023, due to the suspension of operations. |
TABLE 4 |
||||||||||||
Stream Summary |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
As of |
|
As of |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||
Gold Stream |
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
Inventory (oz) |
|
Inventory (oz) |
Mount Milligan |
|
12,600 |
|
14,000 |
|
16,700 |
|
20,200 |
|
4,000 |
|
5,200 |
Pueblo Viejo |
|
6,200 |
|
5,000 |
|
7,900 |
|
8,900 |
|
6,200 |
|
7,900 |
Andacollo |
|
4,200 |
|
7,000 |
|
8,400 |
|
4,700 |
|
800 |
|
3,800 |
Other |
|
12,700 |
|
13,100 |
|
11,300 |
|
12,200 |
|
4,200 |
|
4,100 |
Total |
|
35,700 |
|
39,100 |
|
44,300 |
|
46,000 |
|
15,200 |
|
21,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
As of |
|
As of |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||
Silver Stream |
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
Inventory (oz) |
|
Inventory (oz) |
Khoemacau |
|
375,200 |
|
323,800 |
|
298,700 |
|
307,300 |
|
135,300 |
|
105,900 |
Pueblo Viejo |
|
223,000 |
|
171,100 |
|
337,900 |
|
319,100 |
|
223,000 |
|
337,800 |
Other |
|
71,700 |
|
61,300 |
|
68,000 |
|
50,100 |
|
24,800 |
|
17,500 |
Total |
|
669,800 |
|
556,200 |
|
704,600 |
|
676,500 |
|
383,100 |
|
461,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
As of |
|
As of |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||
Copper Stream |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Inventory (Mlb) |
|
Inventory (Mlb) |
Mount Milligan |
|
2.5 |
|
2.4 |
|
3.6 |
|
4.5 |
|
— |
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
Gold Stream |
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
Mount Milligan |
|
56,800 |
|
58,000 |
|
68,900 |
|
67,800 |
Pueblo Viejo |
|
25,400 |
|
27,100 |
|
32,500 |
|
33,200 |
Andacollo |
|
22,500 |
|
25,500 |
|
27,700 |
|
26,200 |
Other |
|
48,600 |
|
48,500 |
|
44,600 |
|
44,300 |
Total |
|
153,300 |
|
159,100 |
|
173,700 |
|
171,500 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
Silver Stream |
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
Khoemacau |
|
1,516,400 |
|
1,487,000 |
|
951,500 |
|
887,700 |
Pueblo Viejo |
|
907,000 |
|
1,021,900 |
|
1,238,600 |
|
1,216,700 |
Other |
|
277,500 |
|
270,100 |
|
238,600 |
|
225,400 |
Total |
|
2,700,900 |
|
2,779,000 |
|
2,428,700 |
|
2,329,800 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
Copper Stream |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
Mount Milligan |
|
10.9 |
|
11.8 |
|
14.8 |
|
14.8 |
ROYAL GOLD, INC. |
||||||
Consolidated Balance Sheets |
||||||
(Unaudited, in thousands except share data) |
||||||
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
||
ASSETS |
|
|
|
|
|
|
Cash and equivalents |
|
$ |
104,167 |
|
$ |
118,586 |
Royalty receivables |
|
|
48,884 |
|
|
49,405 |
Income tax receivable |
|
|
2,676 |
|
|
3,066 |
Stream inventory |
|
|
9,788 |
|
|
12,656 |
Prepaid expenses and other |
|
|
1,911 |
|
|
2,120 |
Total current assets |
|
|
167,426 |
|
|
185,833 |
Stream and royalty interests, net |
|
|
3,075,574 |
|
|
3,237,402 |
Other assets |
|
|
118,057 |
|
|
111,287 |
Total assets |
|
$ |
3,361,057 |
|
$ |
3,534,522 |
LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
$ |
11,441 |
|
$ |
6,686 |
Dividends payable |
|
|
26,292 |
|
|
24,627 |
Income tax payable |
|
|
15,557 |
|
|
16,065 |
Other current liabilities |
|
|
19,132 |
|
|
16,209 |
Total current liabilities |
|
|
72,422 |
|
|
63,587 |
Debt |
|
|
245,967 |
|
|
571,572 |
Deferred tax liabilities |
|
|
134,299 |
|
|
138,156 |
Other liabilities |
|
|
7,728 |
|
|
7,738 |
Total liabilities |
|
|
460,416 |
|
|
781,053 |
Commitments and contingencies |
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
656 |
|
|
656 |
Additional paid-in capital |
|
|
2,221,039 |
|
|
2,213,123 |
Accumulated earnings |
|
|
666,522 |
|
|
527,314 |
Total Royal Gold stockholders’ equity |
|
|
2,888,217 |
|
|
2,741,093 |
Non-controlling interests |
|
|
12,424 |
|
|
12,376 |
Total equity |
|
|
2,900,641 |
|
|
2,753,469 |
Total liabilities and equity |
|
$ |
3,361,057 |
|
$ |
3,534,522 |
ROYAL GOLD, INC. |
||||||||||||
Consolidated Statements of Operations and Comprehensive Income |
||||||||||||
(Unaudited, in thousands except for per share data) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||
Revenue |
|
$ |
152,666 |
|
$ |
162,980 |
|
$ |
605,717 |
|
$ |
603,206 |
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes depreciation, depletion and amortization) |
|
|
20,785 |
|
|
24,972 |
|
|
90,523 |
|
|
94,642 |
General and administrative |
|
|
9,741 |
|
|
8,815 |
|
|
39,761 |
|
|
34,612 |
Production taxes |
|
|
2,360 |
|
|
2,256 |
|
|
7,294 |
|
|
7,021 |
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
49,196 |
|
|
164,937 |
|
|
178,935 |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Total costs and expenses |
|
|
72,976 |
|
|
89,526 |
|
|
302,515 |
|
|
319,497 |
Operating income |
|
|
79,690 |
|
|
73,454 |
|
|
303,202 |
|
|
283,709 |
Fair value changes in equity securities |
|
|
25 |
|
|
(282) |
|
|
(147) |
|
|
(1,503) |
Interest and other income |
|
|
2,603 |
|
|
2,167 |
|
|
9,952 |
|
|
7,832 |
Interest and other expense |
|
|
(5,999) |
|
|
(6,059) |
|
|
(30,867) |
|
|
(17,170) |
Income before income taxes |
|
|
76,319 |
|
|
69,279 |
|
|
282,140 |
|
|
272,868 |
Income tax expense |
|
|
(13,356) |
|
|
(12,579) |
|
|
(42,008) |
|
|
(32,926) |
Net income and comprehensive income |
|
|
62,963 |
|
|
56,700 |
|
|
240,132 |
|
|
239,942 |
Net income and comprehensive income attributable to non-controlling interests |
|
|
(183) |
|
|
(327) |
|
|
(692) |
|
|
(960) |
Net income and comprehensive income attributable to Royal Gold common stockholders |
|
$ |
62,780 |
|
$ |
56,373 |
|
$ |
239,440 |
|
$ |
238,982 |
Net income per share attributable to Royal Gold common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.95 |
|
$ |
0.86 |
|
$ |
3.64 |
|
$ |
3.64 |
Basic weighted average shares outstanding |
|
|
65,631,760 |
|
|
65,592,597 |
|
|
65,613,002 |
|
|
65,576,995 |
Diluted earnings per share |
|
$ |
0.95 |
|
$ |
0.86 |
|
$ |
3.63 |
|
$ |
3.63 |
Diluted weighted average shares outstanding |
|
|
65,726,890 |
|
|
65,663,227 |
|
|
65,739,110 |
|
|
65,661,748 |
Cash dividends declared per common share |
|
$ |
0.400 |
|
$ |
0.375 |
|
$ |
1.525 |
|
$ |
1.425 |
ROYAL GOLD, INC. |
||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||
(Unaudited, in thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income and comprehensive income |
|
$ |
62,963 |
|
$ |
56,700 |
|
$ |
240,132 |
|
$ |
239,942 |
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
49,196 |
|
|
164,937 |
|
|
178,935 |
Non-cash employee stock compensation expense |
|
|
2,354 |
|
|
1,779 |
|
|
9,696 |
|
|
8,411 |
Fair value changes in equity securities |
|
|
(25) |
|
|
282 |
|
|
147 |
|
|
1,503 |
Deferred tax (benefit) expense |
|
|
(458) |
|
|
(2,079) |
|
|
(6,469) |
|
|
(19,836) |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Other |
|
|
187 |
|
|
245 |
|
|
779 |
|
|
979 |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Royalty receivables |
|
|
(14,157) |
|
|
(20,929) |
|
|
521 |
|
|
4,683 |
Stream inventory |
|
|
63 |
|
|
1,034 |
|
|
2,868 |
|
|
(1,049) |
Income tax receivable |
|
|
11,572 |
|
|
11,990 |
|
|
390 |
|
|
1,849 |
Prepaid expenses and other assets |
|
|
(1,002) |
|
|
(835) |
|
|
(4,369) |
|
|
(3,908) |
Accounts payable |
|
|
2,816 |
|
|
(646) |
|
|
4,756 |
|
|
211 |
Income tax payable |
|
|
(6,936) |
|
|
(5,651) |
|
|
(508) |
|
|
(3,005) |
Other liabilities |
|
|
3,621 |
|
|
5,653 |
|
|
2,912 |
|
|
4,343 |
Net cash provided by operating activities |
|
$ |
101,088 |
|
$ |
101,026 |
|
$ |
415,792 |
|
$ |
417,345 |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of stream and royalty interests |
|
|
— |
|
|
(206,326) |
|
|
(2,678) |
|
|
(922,155) |
Other |
|
|
(2) |
|
|
(45) |
|
|
(151) |
|
|
(721) |
Net cash used in investing activities |
|
$ |
(2) |
|
$ |
(206,371) |
|
$ |
(2,829) |
|
$ |
(922,876) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(75,000) |
|
|
(75,000) |
|
|
(325,000) |
|
|
(125,000) |
Borrowings from revolving credit facility |
|
|
— |
|
|
200,000 |
|
|
— |
|
|
700,000 |
Net payments from issuance of common stock |
|
|
(10) |
|
|
(9) |
|
|
(1,383) |
|
|
(1,447) |
Common stock dividends |
|
|
(24,649) |
|
|
(22,987) |
|
|
(98,567) |
|
|
(91,925) |
Other |
|
|
(161) |
|
|
(311) |
|
|
(2,432) |
|
|
(1,062) |
Net cash (used in) provided by financing activities |
|
$ |
(99,820) |
|
$ |
101,693 |
|
$ |
(427,382) |
|
$ |
480,566 |
Net increase (decrease) in cash and equivalents |
|
|
1,266 |
|
|
(3,652) |
|
|
(14,419) |
|
|
(24,965) |
Cash and equivalents at beginning of period |
|
|
102,901 |
|
|
122,238 |
|
|
118,586 |
|
|
143,551 |
Cash and equivalents at end of period |
|
$ |
104,167 |
|
$ |
118,586 |
|
$ |
104,167 |
|
$ |
118,586 |
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
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 |
||||||||||||
Adjusted EBITDA, Adjusted EBITDA margin, net debt, and net debt to TTM adjusted EBITDA: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
(amounts in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net income and comprehensive income |
|
$ |
62,963 |
|
$ |
56,700 |
|
$ |
240,132 |
|
$ |
239,942 |
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
49,196 |
|
|
164,937 |
|
|
178,935 |
Non-cash employee stock compensation |
|
|
2,354 |
|
|
1,779 |
|
|
9,696 |
|
|
8,411 |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Fair value changes in equity securities |
|
|
(25) |
|
|
282 |
|
|
147 |
|
|
1,503 |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
Interest and other, net |
|
|
3,396 |
|
|
3,893 |
|
|
20,915 |
|
|
9,338 |
Income tax expense |
|
|
13,356 |
|
|
12,579 |
|
|
42,008 |
|
|
32,926 |
Non-controlling interests in operating income of consolidated subsidiaries |
|
|
(183) |
|
|
(327) |
|
|
(692) |
|
|
(960) |
Adjusted EBITDA |
|
$ |
121,951 |
|
$ |
128,389 |
|
$ |
479,583 |
|
$ |
474,382 |
Net income margin |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||
(amounts in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||
Net income and comprehensive income |
|
$ |
62,963 |
|
$ |
49,499 |
|
$ |
63,600 |
|
$ |
64,071 |
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
40,106 |
|
|
38,412 |
|
|
46,328 |
Non-cash employee stock compensation |
|
|
2,354 |
|
|
2,763 |
|
|
1,943 |
|
|
2,636 |
Fair value changes in equity securities |
|
|
(25) |
|
|
462 |
|
|
509 |
|
|
(799) |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
Interest and other, net |
|
|
3,396 |
|
|
4,849 |
|
|
5,758 |
|
|
6,912 |
Income tax expense |
|
|
13,356 |
|
|
10,752 |
|
|
2,029 |
|
|
15,871 |
Non-controlling interests in operating income of consolidated subsidiaries |
|
|
(183) |
|
|
(162) |
|
|
(151) |
|
|
(196) |
Adjusted EBITDA |
|
$ |
121,951 |
|
$ |
108,269 |
|
$ |
114,540 |
|
$ |
134,823 |
Net income margin |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM adjusted EBITDA |
|
$ |
479,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
245,967 |
|
|
|
|
|
|
|
|
|
Debt issuance costs |
|
|
4,033 |
|
|
|
|
|
|
|
|
|
Cash and equivalents |
|
|
(104,167) |
|
|
|
|
|
|
|
|
|
Net debt |
|
$ |
145,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to TTM adjusted EBITDA |
|
|
0.30x |
|
|
|
|
|
|
|
|
|
Cash G&A: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
(amounts in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
General and administrative expense |
|
$ |
9,741 |
|
$ |
8,815 |
|
$ |
39,761 |
|
$ |
34,612 |
Non-cash employee stock compensation |
|
|
(2,354) |
|
|
(1,779) |
|
|
(9,696) |
|
|
(8,411) |
Cash G&A |
|
$ |
7,387 |
|
$ |
7,036 |
|
$ |
30,065 |
|
$ |
26,201 |
|
|
Three Months Ended |
||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||
(amounts in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||
General and administrative expense |
|
$ |
9,741 |
|
$ |
9,927 |
|
$ |
9,093 |
|
$ |
11,000 |
Non-cash employee stock compensation |
|
|
(2,354) |
|
|
(2,763) |
|
|
(1,943) |
|
|
(2,636) |
Cash G&A |
|
$ |
7,387 |
|
$ |
7,164 |
|
$ |
7,150 |
|
$ |
8,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM cash G&A |
|
$ |
30,065 |
|
|
|
|
|
|
|
|
|
Adjusted net income and adjusted net income per share: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
(amounts in thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net income and comprehensive income attributable to Royal Gold common stockholders |
|
$ |
62,780 |
|
$ |
56,373 |
|
$ |
239,440 |
|
$ |
238,982 |
Fair value changes in equity securities |
|
|
(25) |
|
|
282 |
|
|
147 |
|
|
1,503 |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Discrete tax benefits |
|
|
— |
|
|
— |
|
|
(8,462) |
|
|
(18,755) |
Great Bear Royalty acquisition foreign currency loss |
|
|
— |
|
|
— |
|
|
— |
|
|
2,147 |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
Tax effect of adjustments |
|
|
7 |
|
|
(1,211) |
|
|
(685) |
|
|
(2,103) |
Adjusted net income and comprehensive income attributable to Royal Gold common stockholders |
|
$ |
62,762 |
|
|
59,731 |
|
$ |
232,880 |
|
$ |
226,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Royal Gold common stockholders per diluted share |
|
$ |
0.95 |
|
$ |
0.86 |
|
$ |
3.63 |
|
$ |
3.63 |
Fair value changes in equity securities |
|
|
— |
|
|
— |
|
|
— |
|
|
0.02 |
Impairment of royalty interests |
|
|
— |
|
|
0.07 |
|
|
— |
|
|
0.07 |
Discrete tax benefits |
|
|
— |
|
|
— |
|
|
(0.13) |
|
|
(0.29) |
Great Bear Royalty acquisition foreign currency loss |
|
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
0.04 |
|
|
— |
Tax effect of adjustments |
|
|
— |
|
|
(0.02) |
|
|
(0.01) |
|
|
(0.03) |
Adjusted net income attributable to Royal Gold common stockholders per diluted share |
|
$ |
0.95 |
|
$ |
0.91 |
|
$ |
3.53 |
|
$ |
3.43 |
Free cash flow: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
(amounts in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net cash provided by operating activities |
|
$ |
101,088 |
|
$ |
101,026 |
|
$ |
415,792 |
|
$ |
417,345 |
Acquisition of stream and royalty interests |
|
|
— |
|
|
(206,326) |
|
|
(2,678) |
|
|
(922,155) |
Free cash flow |
|
$ |
101,088 |
|
$ |
(105,300) |
|
$ |
413,114 |
|
$ |
(504,810) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
$ |
(2) |
|
$ |
(206,371) |
|
$ |
(2,829) |
|
$ |
(922,876) |
Net cash (used in) provided by financing activities |
|
$ |
(99,820) |
|
$ |
101,693 |
|
$ |
(427,382) |
|
$ |
480,566 |
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.
- Operating margin is calculated by the Company as operating income for a period divided by revenue for that same period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214391256/en/
Alistair Baker
Vice President Investor Relations and Business Development
(720) 554-6995
Source: Royal Gold
FAQ
What was Royal Gold's net income for the year ended December 31, 2023?
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How much was Royal Gold's operating cash flow for the year ended December 31, 2023?
What was Royal Gold's sales volume for 2023?
By how much did Royal Gold increase its dividend for 2024?
