Royal Gold Reports Strong Revenue, Cash Flow and Earnings in the Third Quarter of Fiscal 2021

Rhea-AI Summary

Royal Gold reported a net income of $54.0 million, or $0.82 per share, with revenue of $142.6 million for Q3 fiscal 2021, marking a 5% increase year-over-year. A significant 68% of revenue stemmed from gold at an average price of $1,794 per ounce. The company achieved operating cash flow of $92.2 million and was debt-free post repayment of its credit facility. The Khoemacau project reached 92% completion, increasing the silver stream rate to 84%. Royal Gold paid a quarterly dividend of $0.30 per share, up 7% from last year.

Positive

• Net income of $54.0 million, up from prior year.
• Revenue increased by 5% to $142.6 million.
• Operating cash flow of $92.2 million.
• Debt-free after April repayment of credit facility.
• Khoemacau construction 92% complete with increased silver stream rate to 84%.

Negative

• Decreased silver stream deliveries to 247,500 ounces, down from 394,700 ounces in prior year due to operational issues.

Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we,” “us,” or “our”) reports net income of $54.0 million, or $0.82 per share, on revenue of $142.6 million in its third quarter of fiscal 2021 ended March 31, 2021 (“third quarter”). Adjusted net income¹ was $55.2 million, or $0.84 per share, after excluding discrete tax expense items of $0.04 per share and a $0.03 per share gain on the change in fair value of equity securities, and a reversal of $0.01 per share for the tax effected change in fair value of equity securities.

Third Quarter 2021 Highlights:

• Revenue of $142.6 million, an increase of 5% over the prior year quarter
• 68% of revenue from gold and 12% from silver at average prices of $1,794 per ounce of gold and $26 per ounce of silver
• Operating cash flow of $92.2 million
• Volume of 79,500 GEOs²
• $150 million of debt, net cash³ of $220 million, with available liquidity of $1.2 billion
• Paid quarterly dividend of $0.30 per share, a 7% increase over the prior year quarter
• Khoemacau construction 92% complete, 80% base silver stream fully funded
• Advanced meaningful social initiatives with Pueblo Viejo joint venture and Golden Star

Post-Quarter Events:

• Debt free after repayment of credit facility balance on April 1
• Khoemacau stream rate increased to 84% of payable silver

“Our portfolio turned in another quarter of solid operating performance,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Revenue, cash flow and earnings were strong, reflecting the current robust gold, silver and copper price environment, which allowed us to continue to fund our investments, repay debt and pay dividends with internally generated funds. As of early April, we substantially completed our contributions to the Khoemacau project and increased the initial stream rate to 84% of payable silver. We are pleased to see a transition underway at the project from construction to commissioning, with first concentrate production expected in the upcoming quarter. We also became debt free in early April after repaying the outstanding balance on our revolving credit facility, leaving the full $1 billion credit facility available for new business opportunities.”

“Finally, and perhaps most importantly, we recently progressed two meaningful social initiatives with our operating partners. We agreed to fund the transportation of donated medical equipment and supplies to hospitals near the Pueblo Viejo mine in partnership with the Pueblo Viejo JV and Project C.U.R.E., and after the quarter end we entered into a 5-year funding arrangement to support Golden Star’s sustainable agribusiness activities around the Wassa mine.”

1		Adjusted net income is a non-GAAP financial measure. See Schedule A of this press release for additional information.
2		See Schedule A of this press release for additional information about gold equivalent ounces, or GEOs.
3		Net debt (and net cash) is a non-GAAP financial measure. See Schedule A of this press release for additional information.

Recent Developments

Khoemacau Project

According to Khoemacau Copper Mining (Pty.) Limited (“KCM”), progress continued at the Khoemacau Project (“Khoemacau”) during the third quarter, and the project reached approximately 92% of construction completion as of March 31, 2021. According to KCM, activities are focused on refurbishment and upgrading of the Boseto mill, underground development, completion of accommodation, power and water infrastructure at Zone 5, completion of haul road surfacing between Zone 5 and the Boseto mill, and the tailings storage facility. The Zone 5 area was connected to the national power grid in February 2021 and commissioning of support systems within the Boseto plant was initiated in March 2021. Also, according to KCM, underground development had cumulatively advanced 11,181 meters in the three mines and approximately 190,000 tonnes of ore were stockpiled on surface at the end of March 2021.

The state of emergency declared by the Government of Botswana in March 2020 to help prevent the spread of COVID-19 was extended again on March 30, 2021 for a further six months through September 30, 2021. Mining remains designated as an “essential service” and KCM reports that general development activity at Khoemacau is continuing. Barring any potential further unforeseen impacts caused by COVID-19 considerations, KCM expects to continue commissioning activities through the second quarter of calendar 2021 with first shipment of concentrate expected to occur in the third quarter of calendar 2021 and a ramp-up to nameplate production capacity expected by the beginning of calendar 2022.

On January 6, 2021, Royal Gold made the sixth advance payment of $32.6 million toward the silver stream. With this payment, Royal Gold has completed the total $212 million advance payment required to earn the base silver stream of 80% of payable silver. A seventh advance payment of $10.6 million was made toward the option silver stream on April 7, 2021, and as of the date of this payment, Royal Gold holds the right to purchase 84% of the payable silver from Khoemacau until the delivery of approximately 33.6 million ounces of silver, and 42% thereafter. Additionally, on April 7, 2021 KCM drew $18.0 million on a $25.0 million subordinated debt facility provided by Royal Gold. The subordinated debt facility has a term of seven years, carries interest at a rate of LIBOR +11%, and requires mandatory repayment upon certain events.

Committed funding of $49.4 million remains available to KCM under the stream agreement and subordinated debt facility, including $42.4 million of additional advance payments and $7.0 million of debt, both of which may be drawn at the election of KCM prior to completion of construction. KCM has advised that subject to maintaining the schedule mentioned above for commissioning, first concentrate shipment and operational ramp-up, no further material funding will be required from Royal Gold.

Pueblo Viejo Expansion Continues, Temporarily Lower Silver Deliveries

Barrick Gold Corporation (“Barrick”) reported continued progress at Pueblo Viejo during the March 2021 quarter to expand the process plant and tailings storage facilities. Barrick estimates that the expansion project could significantly increase throughput and allow the mine to maintain average annual gold production of approximately 800,000 ounces after calendar 2022 (on a 100% basis), and that the increase in tailings storage capacity has the potential to convert over 9 million ounces of mineralized material to reserves (on a 100% basis). Barrick expects completion of the process plant expansion by the end of calendar 2022.

Silver stream deliveries were approximately 247,500 ounces for the third quarter, compared to approximately 394,700 ounces for the prior year period. Decreased deliveries were the result of temporary operational issues with the silver circuit that caused silver recoveries to fall below the fixed 70% recovery rate specified in the stream agreement. The stream agreement includes a deferral mechanism for ounces that cannot be delivered at this fixed recovery rate, with the economic impact of any shortfall in deliveries to be made up in future periods. Deferred deliveries of approximately 362,000 ounces of silver are expected to be made incrementally as Barrick expects the operational issues with the silver circuit to be resolved.

In calendar 2021, Barrick expects gold production from its 60% interest in Pueblo Viejo to be between 470,000 and 510,000 ounces compared to actual gold production of 542,000 ounces in calendar 2020.

Wassa Updated Reserve and Southern Extension PEA

Golden Star Resources Ltd. (“Golden Star”) released an updated mineral reserve on March 1, 2021. The mineral reserve plan outlines a six-year mine life with annual production averaging 177,000 ounces of gold. In addition, Golden Star issued a Preliminary Economic Assessment (“PEA”) on the Southern Extension of the Wassa orebody. The PEA supports an 11-year mine life with average annual gold production of 294,000 ounces for total gold production of 3.5 million ounces. Golden Star is targeting early calendar 2023 for the completion of a final feasibility study on the Southern Extension.

In calendar 2021, Golden Star expects Wassa to produce between 165,000 and 175,000 ounces, in line with the calendar 2020 actual production performance.

Updated Cortez Reserve Statement and Life of Mine Plan

After the end of the quarter, Nevada Gold Mines LLC (“NGM”) provided the Company with an updated reserve statement and life of mine plan for Cortez. According to NGM, as of December 31, 2020, total proven and probable reserves subject to the Company’s royalty interests contained 3.5 million ounces of gold (consisting of 73.9 million tonnes of ore at a grade of 1.47 grams per tonne). Reserves were calculated at a gold price of $1,200 per ounce.

Further, according to NGM, total gold production at Cortez from the regions subject to the Company’s interests is expected to be approximately 350,000 to 375,000 ounces in calendar 2021, and average approximately 415,000 ounces per year from calendar 2022 through calendar 2026. The Crossroads deposit is expected to continue providing the majority of the royalty ounces during this period.

Repayment of Revolving Credit Facility

The Company repaid $50 million of the amount outstanding on its revolving credit facility during the third quarter, ending the quarter with an outstanding balance of $150 million and a net cash position of $220 million.

On April 1, 2021, the Company repaid the remaining $150 million outstanding balance under the credit facility, reducing the amount outstanding to $0. After this repayment, the amount available under the revolving credit facility was the full $1 billion.

Funding of Meaningful Sustainability and Social Initiatives at Pueblo Viejo and Wassa

During the quarter, Royal Gold partnered with the Pueblo Viejo Joint Venture and Project C.U.R.E. to fund delivery of donated medical supplies and equipment to be provided to five hospitals within the host communities of the Pueblo Viejo mine later this year.

After the end of the quarter, Royal Gold entered into a 5-year, $750,000 commitment to support Golden Star Oil Palm Plantation Ltd. (“GSOPP”), an award-winning social enterprise project founded by Golden Star in Ghana. GSOPP partners with traditional community authorities and farmers in the area around the Wassa mine to develop oil palm plantations without deforestation, and currently provides income for over 700 farmers and part-time contractors. Royal Gold’s contribution will be used to expand GSOPP’s operations around Wassa and thereby promote sustainable agribusiness.

Third Quarter 2021 Overview

Third quarter revenue was $142.6 million, compared to revenue of $136.4 million for the prior year quarter, comprised of stream revenue of $95.3 million and royalty revenue of $47.3 million. The increase in total revenue for the third quarter compared to the prior year quarter was primarily due to increased gold, silver and copper prices and an increase in gold production at Peñasquito, offset by a decrease in revenue from Andacollo due to lower gold sales.

Cost of sales, which excludes depreciation, depletion and amortization, decreased to $21.5 million for the third quarter from $22.0 million for the prior year quarter. The decrease compared to the prior period was primarily due to lower gold sales from Mount Milligan, Pueblo Viejo and Andacollo, partially offset by an increase in gold, silver and copper prices. Cost of sales is specific to stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.

General and administrative costs decreased to $6.9 million for the third quarter, from $9.6 million for the prior period. The decrease was primarily due to additional non-cash stock compensation expense of approximately $3.3 million in the prior period resulting from the accelerated vesting of certain equity awards in connection with the retirement of the Company’s former President and Chief Executive Officer and former Vice President and General Counsel in January 2020.

Exploration costs, which were specific only to the exploration and advancement of the Manh Choh Project (formerly known as the Peak Gold Project), decreased to zero for the third quarter from $0.6 million for the prior year period. On September 30, 2020, the Company sold its interest in the Peak Gold Joint Venture and no further exploration costs will be incurred.

Depreciation, depletion and amortization decreased to $41.3 million for the third quarter from $51.2 million for the prior year quarter. The decrease was primarily due to lower gold sales at Mount Milligan, Andacollo and Pueblo Viejo when compared to the prior period. The decrease was also attributable to decreases in the gold and silver depletion rates at Pueblo Viejo and the gold depletion rate at Mount Milligan. The gold and silver depletion rates at Pueblo Viejo decreased in the third quarter due to an increase in proven and probable reserves as reported by Barrick, while the gold depletion rate at Mount Milligan decreased as a result of improved gold recoveries.

Interest and other expense decreased to $1.8 million for the third quarter, from $2.1 million for the prior year quarter. The decrease was primarily attributable to lower interest expense as a result of lower interest rates on outstanding debt when compared to the prior period.

During the third quarter, the Company recorded income tax expense totaling $17.7 million, compared with income tax expense of $8.7 million for the prior year quarter. The income tax expense resulted in an effective tax rate of 24.6% in the current period, compared with 18.5% in the prior period. The third quarter included approximately $2.6 million of certain discrete income tax expense items, which were primarily due to a change in the realizability of certain deferred tax assets, while the prior year period included income tax benefits resulting from foreign exchange rate movements compared to the U.S. dollar. Absent these discrete income tax expense items, our effective tax rate would have been approximately 21% during the third quarter.

As of March 31, 2021, the Company had current assets of $446.3 million compared to current liabilities of $62.7 million, which resulted in working capital of $383.6 million. This compares to current assets of $362.2 million and current liabilities of $43.6 million as of June 30, 2020, resulting in working capital of $318.6 million. The increase in working capital was primarily due to increased revenue and proceeds from the sale of the Company’s interests in the Manh Choh Project during the quarter ended September 30, 2020.

As of March 31, 2021, the Company had $850 million available and $150 million outstanding under the revolving credit facility. Working capital, combined with available capacity under the revolving credit facility, resulted in approximately $1.2 billion of total liquidity as of March 31, 2021.

On April 1, 2021, the Company repaid the remaining $150 million outstanding under the credit facility, which increased the amount available to $1 billion and decreased the amount outstanding to $0.

Outlook

For the fourth quarter of fiscal 2021 Royal Gold expects stream segment sales to range between 60,000 and 65,000 GEOs with quarter-end inventory ranging between 31,000 and 36,000 GEOs.

For the full fiscal year 2021, depreciation, depletion and amortization expense is expected to decrease from the previous guidance range of $590 and $640 per GEO to between $540 and $590 per GEO. For the quarter ended June 30, 2021, depreciation, depletion and amortization expense is expected to range between $525 and $575 per GEO.

The effective tax rate for the fourth quarter and full fiscal year 2021, absent any discrete items, is expected to remain in the previous guidance range of between 19% and 23%.

Other than potential remaining conditional funding at the Khoemacau Project as discussed above, Royal Gold has no other project capital commitments or financing obligations.

Property Highlights

A breakdown of revenue for the stream and royalty portfolio can be found on Table 1. Historical production reported by operators of the Company’s principal stream and royalty properties can be found on Table 2. Calendar year 2021 operator production estimates for the Company’s principal stream and royalty properties compared to actual production at these properties through March 31, 2021 can be found on Table 3. Results of the streaming business for the third quarter, compared to the prior year quarter, can be found on Table 4. Highlights at certain of the Company’s principal producing and development properties during the third quarter, compared to the prior year quarter, are detailed in the Quarterly Report on Form 10-Q.

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, 2021, the Company owned interests on 187 properties on five continents, including interests on 41 producing mines and 19 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.

Third Quarter Call Information:
Dial-In	855-209-8260 (U.S.); toll free
Numbers:	855-669-9657 (Canada); toll free 412-542-4106 (International)
Conference Title:	Royal Gold
Webcast URL:	www.royalgold.com under Investors, Events & Presentations

Note: Management’s conference call reviewing the third quarter results will be held on Thursday, May 6, 2021, at noon Eastern Time (10:00 a.m. 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 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, the following: statements about our expected financial performance, including revenue, expenses, earnings or cash flow; operators’ expected operating and financial performance, including production, deliveries, mine plans and reserves, development, cash flows and capital expenditures; planned and potential acquisitions or dispositions, including funding schedules and conditions; liquidity, financing and shareholder returns; our overall investment portfolio; macroeconomic and market conditions including the impacts of COVID-19; prices for gold, silver, copper, nickel and other metals; potential impairments; or tax changes.

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, contractual issues involving our stream or royalty agreements, or operational disruptions due to COVID-19; 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; 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-Qs. 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.

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 upon this information.

TABLE 1 Third Quarter Fiscal 2021 Revenue by Stream and Royalty Interests (In thousands)
					Three Months Ended							Nine Months Ended
					March 31,							March 31,
Stream/Royalty	Metal(s)		Current Stream/Royalty Interest1			2021			2020			2021			2020
Stream:
Canada
Mount Milligan	Gold, copper		35% of payable gold and 18.75% of payable copper		$	33,803		$	32,298		$	113,135		$	93,423
Rainy River	Gold, silver		6.5% of gold produced and 60% of silver produced			8,806			4,838			25,361			19,566
Latin America
Pueblo Viejo	Gold, silver		7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver		$	30,173		$	28,302		$	88,998		$	73,534
Andacollo	Gold		100% of payable gold			13,022			22,055			54,297			63,324
Africa
Wassa	Gold		10.5% of payable gold		$	8,774		$	8,647		$	24,644		$	18,760
Prestea and Bogoso	Gold		5.5% of payable gold			768			1,320			3,133			5,458
Total stream revenue					$	95,346		$	97,459		$	309,568		$	274,065
Royalty:
Canada
Holt	Gold		0.00013 x Au price NSR		$	-		$	4,700		$	-		$	10,241
Voisey's Bay	Copper, nickel, cobalt		2.7% NVR			4,985			965			10,992			6,199
Canadian Malartic	Gold		1.0%-1.5% sliding-scale NSR			2,022			1,837			6,396			5,593
Williams	Gold		0.97% NSR			776			708			2,401			1,995
LaRonde Zone 5	Gold		2.0% NSR			421			438			1,628			1,387
Other-Canada	Various		Various			408			479			652			669
United States
Cortez	Gold		GSR1, GSR2, GSR3, NVR1, NVR1C		$	8,609		$	6,399		$	22,421		$	14,109
Robinson	Gold, copper		3.0% NSR			2,771			2,305			9,056			6,633
Marigold	Gold		2.0% NSR			2,387			1,761			7,083			5,045
Goldstrike	Gold		0.9% NSR			827			930			2,559			2,645
Wharf	Gold		0.0%-2.0% sliding-scale GSR			680			493			2,676			2,023
Other-United States	Various		Various			1,200			1,309			3,467			3,358
Latin America
Penasquito	Gold, silver, lead, zinc		2.0% NSR		$	13,128		$	7,424		$	36,289		$	19,422
Dolores	Gold, silver		3.25% NSR (gold), 2.0% NSR (silver)			2,142			1,736			5,732			5,501
El Limon	Gold		3.0% NSR			1,122			906			3,837			2,513
Other-Latin America	Various		Various			-			992			663			1,045
Africa
Taparko	Gold		2.0% GSR, 0.75% GSR (milling royalty)		$	748		$	629		$	2,242		$	1,727
Other - Africa	Various		Various			-			-			-			-
Australia
South Laverton	Gold		1.5% NSR, 4.0% NPI		$	1,672		$	1,450		$	5,180		$	3,747
Gwalia Deeps	Gold		1.5% NSR			1,127			893			2,940			2,849
Meekatharra	Gold		1.5% NSR			964			814			3,295			2,269
Other-Australia	Various		Various			597			561			5,801			2,201
Europe
Las Cruces	Copper		1.5% NSR		$	657		$	1,248		$	2,949		$	3,617
Other-Europe	Various		Various			-			-			-			-
Total royalty revenue					$	47,243		$	38,977		$	138,261		$	104,788
Total revenue					$	142,589		$	136,437		$	447,829		$	378,853

¹ Refer to Part I, Item 2, of the Company’s Fiscal 2020 Form 10-K for a full description of the Company’s stream and royalty interests.

TABLE 2 Operators’ Historical Production

Reported Production For The Quarter Ended1

Property

Operator

Stream/Royalty

Metal(s)

Mar. 31, 2021

Dec. 31, 2020

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Stream:

Mount Milligan

Centerra

35% of payable gold

Gold

9,200

oz

16,900

oz

11,800

oz

20,200

oz

14,000

oz

18.75% of payable copper

Copper

4.4

Mlb

4.1

Mlb

4.1

Mlb

1.7

Mlb

4.3

Mlb

Pueblo Viejo

Barrick (60%)

7.5% of Barrick's interest in payable gold up to 990,000 ounces; 3.75% thereafter

Gold

10,500

oz

9,400

oz

11,100

oz

10,200

oz

13,200

oz

75% of Barrick's interest in payable silver up to 50 million ounces; 37.5% thereafter(2)

Silver

418,200

oz

408,600

oz

451,200

oz

394,700

oz

417,800

oz

Andacollo

Teck

100% of payable gold up to 900,000 ounces; 50% thereafter

Gold

7,100

oz

9,500

oz

12,200

oz

6,300

oz

13,900

oz

Wassa

Golden Star

10.5% of payable gold up to 240,000 ounces; 5.5% thereafter

Gold

4,800

oz

3,600

oz

4,900

oz

2,600

oz

5,600

oz

Royalty:

Peñasquito

Newmont Corporation

2.0% NSR

Gold

180,400

oz

210,600

oz

130,700

oz

83,700

oz

97,200

oz

Silver

8.1

Moz

8.7

Moz

6.4

Moz

5.2

Moz

8.7

Moz

Lead

50.1

Mlb

52.1

Mlb

41.7

Mlb

30.6

Mlb

60.5

Mlb

Zinc

119.3

Mlb

93.8

Mlb

98.0

Mlb

90.2

Mlb

124.5

Mlb

Cortez

Nevada Gold Mines LLC

GSR1, GSR2, GSR3, NVR1, NVR1C(3)

Gold

51,900

oz

57,600

oz

37,600

oz

52,500

oz

57,700

oz

1	Reported production relates to the amount of metal sales subject to our stream and royalty interests for the stated periods and may differ from the operators’ public reporting.
2	The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed.
3	Production includes applicable royalty deductions. Please refer to Part I, Item 2, of the Company’s Fiscal 2020 Form 10-K for a full description of the Company’s royalty interests at Cortez.

 

TABLE 3 Operator’s Estimated and Actual Production

Operator's Estimated Production for

Operator's Actual Calendar 2021

Full Year Calendar 2021(1)

Production(2)

Stream/Royalty

Gold (oz)

Silver (oz)

Base Metals (lb)

Gold (oz)

Silver (oz)

Base Metals (lb)

Stream:

Andacollo(3)

N/A

10,500

Mount Milligan(4)

180,000 - 200,000

N/A

Copper

70 - 80 M

N/A

Pueblo Viejo(5)

470,000 - 510,000

N/A

137,000

N/A

Wassa(6)

165,000 - 175,000

N/A

Royalty:

Cortez(7)

350,000 - 375,000

58,600

Peñasquito(8)

660,000

30 M

178,000

8.2 M

Lead

190 M

50 M

Zinc

475 M

111 M

1		Production estimates received from the operators are for calendar 2021. There can be no assurance that production estimates received from the operators will be achieved. Please also refer to our cautionary language regarding forward-looking statements above, as well as the Risk Factors identified in Part I, Item 1A, of the Company’s Fiscal 2020 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, 2021 through March 31, 2021, unless otherwise noted in footnotes to this table.
3		The actual production figure shown for Andacollo is contained gold in concentrate. The estimated production figure was not available on the date of this release.
4		The estimated production figures shown for Mount Milligan are payable gold and copper in concentrate. The actual production figures were not available on the date of this release.
5		The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent the 60% interest in Pueblo Viejo held by Barrick Gold Corporation (“Barrick”). Barrick did not provide estimated or actual silver production.
6		The estimated production figure shown for Wassa is payable gold in doré. The actual production figure was not available on the date of this release.
7		Production from Cortez subject to Royal Gold’s royalty interests.
8		The estimated and actual gold production figures shown for Peñasquito are payable gold and silver in concentrate and doré. The estimated and actual lead and zinc production figures shown are payable lead and zinc in concentrate.

TABLE 4 Stream Summary
			Three Months Ended				Three Months Ended					As of		As of
			March 31, 2021				March 31, 2020					March 31, 2021		June 30, 2020
Gold Stream			Purchases (oz)		Sales (oz)		Purchases (oz)		Sales (oz)			Inventory (oz)		Inventory (oz)
Mount Milligan			12,200		9,200		12,100		14,000			6,800		3,300
Pueblo Viejo			11,100		10,500		10,200		13,200			11,100		11,100
Andacollo			10,700		7,100		9,400		13,900			6,500		100
Wassa			4,400		4,800		3,800		5,600			2,700		2,900
Other			4,600		4,300		4,500		3,400			1,500		1,500
Total			43,000		35,900		40,000		50,100			28,600		18,900
			Three Months Ended				Three Months Ended					As of		As of
			March 31, 2021				March 31, 2020					March 31, 2021		June 30, 2020
Silver Stream			Purchases (oz)		Sales (oz)		Purchases (oz)		Sales (oz)			Inventory (oz)		Inventory (oz)
Pueblo Viejo			247,500		418,200		394,700		417,800			247,500		451,200
Other			72,200		66,200		40,800		47,900			72,300		23,400
Total			319,700		484,400		435,500		465,700			319,800		474,600
			Three Months Ended				Three Months Ended					As of		As of
			March 31, 2021				March 31, 2020					March 31, 2021		June 30, 2020
Copper Stream			Purchases (Mlb)		Sales (Mlb)		Purchases (Mlb)		Sales (Mlb)			Inventory (Mlb)		Inventory (Mlb)
Mount Milligan			3.4		4.4		3.4		4.3			—		0.8

			Nine Months Ended				Nine Months Ended					As of		As of
			March 31, 2021				March 31, 2020					March 31, 2021		June 30, 2020
Gold Stream			Purchases (oz)		Sales (oz)		Purchases (oz)		Sales (oz)			Inventory (oz)		Inventory (oz)
Mount Milligan			41,500		38,000		44,900		43,500			6,800		3,300
Andacollo			35,100		28,800		37,700		41,800			6,500		100
Pueblo Viejo			31,000		31,000		33,900		33,100			11,100		11,100
Wassa			13,100		13,300		11,600		12,500			2,700		2,900
Other			13,400		13,300		15,900		15,400			1,500		1,500
Total			134,100		124,400		144,000		146,300			28,600		18,900
			Nine Months Ended				Nine Months Ended					As of		As of
			March 31, 2021				March 31, 2020					March 31, 2021		June 30, 2020
Silver Stream			Purchases (oz)		Sales (oz)		Purchases (oz)		Sales (oz)			Inventory (oz)		Inventory (oz)
Pueblo Viejo			1,074,200		1,278,000		1,274,900		1,355,800			247,500		451,200
Other			190,300		141,300		138,300		133,500			72,300		23,400
Total			1,264,500		1,419,300		1,413,200		1,489,300			319,800		474,600
			Nine Months Ended				Nine Months Ended					As of		As of
			March 31, 2021				March 31, 2020					March 31, 2021		June 30, 2020
Copper Stream			Purchases (Mlb)		Sales (Mlb)		Purchases (Mlb)		Sales (Mlb)			Inventory (Mlb)		Inventory (Mlb)
Mount Milligan			11.8		12.5		10.2		11.0			—		0.8

ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, in thousands except share data)
			March 31, 2021				June 30, 2020
ASSETS
Cash and equivalents			$	370,260			$	319,128
Royalty receivables				45,427				27,689
Income tax receivable				14,669				2,435
Stream inventory				14,491				11,671
Prepaid expenses and other				1,475				1,227
Total current assets				446,322				362,150
Stream and royalty interests, net				2,224,435				2,318,913
Other assets				82,769				85,224
Total assets			$	2,753,526			$	2,766,287
LIABILITIES
Accounts payable			$	4,380			$	2,484
Dividends payable				19,680				18,364
Income tax payable				25,660				13,323
Other current liabilities				12,971				9,384
Total current liabilities				62,691				43,555
Debt				146,270				300,439
Deferred tax liabilities				84,079				86,439
Uncertain tax positions				12,957				25,427
Other liabilities				7,404				8,308
Total liabilities				313,401				464,168
Commitments and contingencies
EQUITY
Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued				—				—
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,550,445 and 65,531,288 shares outstanding, respectively				656				655
Additional paid-in capital				2,202,410				2,210,429
Accumulated earnings				224,254				61,133
Total Royal Gold stockholders’ equity				2,427,320				2,272,217
Non-controlling interests				12,805				29,902
Total equity				2,440,125				2,302,119
Total liabilities and equity			$	2,753,526			$	2,766,287

ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, in thousands except for per share data)
		For The Three Months Ended												For The Nine Months Ended
			March 31, 2021						March 31, 2020						March 31, 2021						March 31, 2020
Revenue			$	142,589					$	136,437					$	447,829					$	378,853
Costs and expenses
Cost of sales (excludes depletion, depreciation and amortization)				21,469						21,961						68,230						63,149
General and administrative				6,932						9,551						21,175						23,658
Production taxes				1,835						851						4,591						2,934
Exploration costs				—						565						563						4,705
Depreciation, depletion and amortization				41,296						51,228						135,541						130,038
Total costs and expenses				71,532						84,156						230,100						224,484
Gain on sale of Peak Gold JV interest				—						—						33,906						—
Operating income				71,057						52,281						251,635						154,369
Fair value changes in equity securities				1,902						(3,819	)					4,060						(4,972	)
Interest and other income				733						620						1,767						1,621
Interest and other expense				(1,820	)					(2,088	)					(5,274	)					(7,139	)

FAQ

What were Royal Gold's Q3 fiscal 2021 earnings results?

Royal Gold reported a net income of $54.0 million, or $0.82 per share, on revenue of $142.6 million.

How much revenue did Royal Gold generate in Q3 fiscal 2021?

Royal Gold generated revenue of $142.6 million in Q3 fiscal 2021.

What is the current status of the Khoemacau project?

The Khoemacau project is 92% complete, with an increased silver stream rate of 84%.

What was the dividend payout for Royal Gold in Q3 fiscal 2021?

Royal Gold paid a quarterly dividend of $0.30 per share, a 7% increase from the prior year.

What challenges did Royal Gold face in Q3 fiscal 2021?

Royal Gold experienced decreased silver stream deliveries to 247,500 ounces due to operational issues.