Royal Gold Reports Record Revenue and Free Cash Flow for First Quarter Fiscal 2011
- Quarterly royalty revenue was a record $45.3 million, a 74%
increase year-over-year - Record free cash flow1 of $40.8 million
represented 90% of total revenue, an 80% increase year-over-year - Quarterly net income attributable to Royal Gold stockholders rose
to $11.8 million, a 66% increase year-over-year - Completion of Mt. Milligan and Pascua-Lama transactions
Royal Gold, Inc. (NASDAQ: RGLD) (TSX: RGL) today announced record
royalty revenue of $45.3 million for the first quarter of fiscal 2011
and net income attributable to Royal Gold stockholders of $11.8 million,
or $0.22 per basic share. This compares to royalty revenue of $26.1
million and net income of $7.1 million, or $0.18 per basic share, for
the first quarter of fiscal 2010.
Free cash flow1 for the quarter ended September 30, 2010 was
a record $40.8 million, representing 90% of revenues, which was an
increase of 80% compared to free cash flow of $22.6 million or 87% of
revenues for the prior year comparable quarter.
The 74% increase in revenue for the quarter was largely driven by
production increases at Peñasquito, Taparko and Robinson, new production
from Andacollo, Voisey′s Bay, Gwalia Deeps and Las Cruces, as well as
higher average gold prices. The increase in revenue was partially offset
by lower production at Cortez, Mulatos, Dolores and Leeville, when
compared to the first quarter of fiscal 2010. The average price of gold
for the first fiscal quarter was $1,227 per ounce compared with $960 per
ounce for the comparable period, representing a 28% increase.
As of September 30, 2010, the Company had a working capital surplus of
$329.2 million. Current assets were $366.4 million (including $321.5
million in cash and equivalents), compared to current liabilities of
$37.2 million, resulting in a current ratio of 10 to 1. Total debt
outstanding under the Company′s credit facilities was $242 million as of
September 30, 2010. Since September 30, 2010, the Company invested
approximately $250 million in additional acquisitions.
Tony Jensen, President and CEO, commented, 'Our first quarter results
represent not only continued strong performance, but also the beginning
of a fundamental shift in the source of our royalty revenue as we
transition away from maturing projects to our new generation of
long-lived core properties including Andacollo, Peñasquito and Voisey′s
Bay. The revenue strength of Andacollo is evident as it has quickly
become our top revenue source even though the project was still ramping
up to design capacity during the quarter. The additional interests at
Pascua-Lama and Mt. Milligan that we just acquired are also expected to
become key revenue generators starting in 2013.?
RECENT DEVELOPMENTS
Completion of the Mt. Milligan Transaction
Royal Gold announced the completion of the Mt. Milligan gold stream
transaction in which Royal Gold acquired the right to 25% of the payable
gold produced from the Mt. Milligan copper-gold project in British
Columbia. Total consideration for the transaction was $226.5 million
paid in conjunction with the closing of Thompson Creek Metals Company
Inc.′s ('Thompson Creek?) acquisition of Terrane Metals Company and an
additional $85.0 million to be paid during the construction period of
the Mt. Milligan project subject to certain conditions. In addition,
Royal Gold will pay Thompson Creek a cash payment equal to the lesser of
$400 or the prevailing market price for each payable ounce of gold until
550,000 ounces have been delivered to Royal Gold and the lesser of $450
or the prevailing market price for each additional ounce thereafter.
Closing of Additional Royalty Interests on the Pascua-Lama Gold
Project
Royal Gold announced that it has closed the transactions which gave it
the rights to an additional net smelter return sliding-scale gold
royalty on the Pascua-Lama project, owned and operated by Barrick Gold.
Royal Gold′s total royalty interest is now a 5.23% NSR, at gold prices
at or above $800 per ounce. The transactions also included a 0.20%
fixed-rate copper royalty which takes effect after January 1, 2017,
increasing Royal Gold′s total copper royalty interest to 1.05%.
PROPERTY HIGHLIGHTS
Highlights at the Company′s principal producing and development
properties are listed below:
Andacollo ? In October 2010, Teck Resources announced that it had
achieved commercial production at its new copper concentrator at the
Andacollo operation. The plant is averaging throughput of 53,000 tonnes
of ore per day or 97% of design capacity of 55,000 tonnes per day.
Peñasquito ? Goldcorp announced that commercial production was
achieved at Peñasquito effective as of September 1, 2010 and that
mechanical completion of the high pressure grinding roll circuit was
achieved in October with commissioning of the circuit underway. Goldcorp
expects that following a ramp up period, Peñasquito will reach its full
processing capacity of 130,000 tonnes per day in early 2011.
Taparko ? In September 2010, the Company′s $35 million cap on the
15% (TB-GSR1) royalty was met. As a result, both the TB-GSR1 royalty and
the sliding-scale (TB-GSR2) royalty have ceased. A 2.0% (TB-GSR3)
perpetual royalty, applicable to gold production from defined portions
of the Taparko-Bouroum project area, is now in effect. TB-MR1, a 0.75%
GSR milling royalty which applies to ore that is mined outside of the
defined area of the Taparko project, also remains in effect.
Siguiri ? The Company received approximately $1.4 million in
royalty revenue from Siguiri and expects that the $12.0 million cap on
our royalty could be reached in the second quarter of fiscal 2011.
Approximately $400,000 remains unrecognized as of September 30, 2010.
Voisey′s Bay ? The strike which began in August 2009 at Voisey′s
Bay has not been resolved. Royal Gold continues to receive royalty
revenue from the mine which is still operating with a partial workforce.
Dolores ? Production at Dolores was impacted by remediation work
on the Phase 1 leach pad, lower than average ore grades, and heavy
rains. Minefinders reported that stacking to the Phase 2 leach pad has
been accelerated to full production levels and leaching of material on
the Phase 2 pad began in mid-September. While Minefinders has not
released revised guidance for the year, they have indicated that
production is likely to be deferred.
Las Cruces ? Inmet improved plant operations with a 27% increase
in copper production over the prior quarter. Plant reliability has been
enhanced and no significant downtime was experienced during the quarter.
They are now focused on increasing throughput, while ensuring that
acceptable metallurgical recovery is achieved. Inmet has revised its
estimate of annual copper production to 63 million pounds to reflect the
slower ramp up schedule experienced during the year.
Mine development at Canadian Malartic, Pascua-Lama and Wolverine
continues to advance. Osisko reports that they are on track towards
their scheduled start-up in the second quarter of 2011. At Pascua-Lama,
Barrick reports that detailed engineering is nearly 90% complete and the
project is on track to enter production in the first quarter of 2013. At
Wolverine, commissioning of the mill is in the final stages and,
according to Yukon Zinc, plans are to begin feeding ore from the
underground mine in December 2010.
First quarter fiscal 2011 production and revenue for the Company′s
principal royalty interests are shown in Table 1. For more detailed
information about each of our principal royalty properties, please refer
to the Company′s most recent Annual Report on Form 10-K, our Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC
and available on the SEC′s website located at www.sec.gov,
or our website located at www.royalgold.com.
CORPORATE PROFILE
Royal Gold is a precious metals royalty company engaged in the
acquisition and management of precious metal royalties and similar
interests. The Company′s portfolio consists of 188 properties on six
continents, including interests on 34 producing mines and 24 development
stage projects. Royal Gold is publicly traded on the NASDAQ Global
Select Market under the symbol 'RGLD,? and on the Toronto Stock Exchange
under the symbol 'RGL.? The Company′s website is located at www.royalgold.com.
Note: Management′s conference call reviewing the first quarter
results will be held todayat 10:00 a.m. Mountain Time (noon
Eastern Time) and will be available by calling (800) 603-2779 (North
America) or (973) 200-3960(international), access #50475396. The
call will be simultaneously broadcast on the Company′s website at www.royalgold.com
under the 'Presentations? section. A replay of this webcast will be
available on the Company′s website approximately two hours after the
call ends.
___________________________
Cautionary 'Safe Harbor? Statement Under the Private Securities
Litigation Reform Act of 1995: With the exception of historical
matters, the matters discussed in this press release are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projections or estimates contained
herein. Such forward-looking statements include statements about a shift
in the source of the Company′s royalty revenue, the new generation of
long-lived core properties, Pascua-Lama and Mt. Milligan becoming
additional key revenue generators, commencement of revenue from
Pascua-Lama and Mt. Milligan, design or processing capacity at Andacollo
and Peñasquito, when the revenue cap at Siguiri will be met, ramp-up and
production levels at Voisey′s Bay, Dolores and Las Cruces, and mine
development, construction and the timing of production at Canadian
Malartic, Pascua-Lama and Wolverine. Factors that could cause actual
results to differ materially from the projections include, among others,
precious metals prices, performance of and production at the Company's
royalty properties, decisions and activities of the operators of the
Company's royalty properties, unanticipated grade, geological,
metallurgical, processing or other problems the operators of the mining
properties may encounter, delays in the operators securing or their
inability to secure necessary governmental permits, changes in
operator′s project parameters as plans continue to be refined, economic
and market conditions, possible liquidity and production problems at the
Company′s royalty properties, the Company′s exercise of its rights under
the Taparko Funding Agreement, buy-down rights at Canadian Malartic,
litigation, the ability of the various operators to bring projects into
production as expected, and other subsequent events, as well as other
factors described in the Company's Annual Report on Form 10-K, Quarterly
Report on Form 10-Q, and other filings with the Securities and Exchange
Commission. Most of these factors are beyond the Company′s ability to
predict or control. The Company disclaims any obligation to update any
forward-looking statement made herein. Readers are cautioned not to put
undue reliance on forward-looking statements.
*Free Cash Flow: The Company discloses information on free cash
flow and free cash flow as a percentage of revenues in its reporting.
Free cash flow is a non-GAAP financial measure. The Company defines free
cash flow as operating income plus depreciation, depletion and
amortization, non-cash charges, and any impairment of mining assets less
non-controlling interests in operating income of consolidated
subsidiaries. While we believe free cash flow is a useful measure of the
Company′s performance, we also want to advise that this is not a measure
recognized by generally accepted accounting principles. See Schedule A,
attached to this press release for a GAAP reconciliation.
| 1 | The Company defines free cash flow, a non-GAAP financial measure, as operating income plus depreciation, depletion and amortization, non-cashcharges and impairment of mining assets, if any, lessnon-controllinginterests in operating income from consolidated subsidiary (see, Schedule A). |
TABLE 1 Quarter Ended September 30, 2010 and 2009 Royalty Production and Revenue for Principal Royalty Interests | ||||||||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2010 | THREE MONTHS ENDED SEPTEMBER 30, 2009 | |||||||||||||||||||||||||
PROPERTY | ROYALTY | OPERATOR | METAL | Royalty | Reported | Royalty | Reported | |||||||||||||||||||
Andacollo | 75% NSR 2 | Teck | Gold | 8.2 | 8,905 oz. | - 2 | - 2 | |||||||||||||||||||
Taparko | TB-GSR1 3
| High River | Gold | 7.6 | 30,587 oz. | 6.0 | 25,350 oz. | |||||||||||||||||||
Voisey′s Bay | 2.7% NSR | Vale | Nickel
| 3.5 4 | 18.2M lbs.4
| - 4 | - 4 | |||||||||||||||||||
Robinson 5 | 3.0% NSR | Quadra | Gold Copper | 3.1 | 19,012 oz.
| 1.9 | 18,269 oz.
| |||||||||||||||||||
Peñasquito | 2.0% NSR | Goldcorp | Gold Silver Lead Zinc | 3.0 | 35,624 oz. 3.2M oz. 21.9M lbs. 39.0M lbs. | 0.6 | 22,900 oz. 651,812 oz. | |||||||||||||||||||
Leeville | 1.8% NSR | Newmont | Gold | 2.6 | 122,834 oz. | 2.3 | 133,821 oz. | |||||||||||||||||||
Cortez | GSR1 and GSR2 6
| Barrick | Gold | 2.5 | 33,134 oz. | 5.8 | 94,864 oz. | |||||||||||||||||||
Mulatos | 1.0 - 5.0% NSR 7 | Alamos | Gold | 1.7 | 29,025 oz. | 2.2 | 46,440 oz. | |||||||||||||||||||
Las Cruces | 1.5% NSR | Inmet | Copper | 0.9 | 17.5M lbs. | -8 | - 8 | |||||||||||||||||||
Gwalia Deeps | 1.5% NSR | St Barbara | Gold | 0.5 | 26,644 oz. | -8 | -8 | |||||||||||||||||||
Dolores | 3.25% NSR 2.0% NSR | Minefinders | Gold Silver | 0.4 | 8,479 oz.
| 1.19 | 19,305 oz. 9
| |||||||||||||||||||
Other Royalty Properties 10 | - | - | Various | 11.3 | - | 6.2 | - | |||||||||||||||||||
| Total Royalty Revenue | 45.3 | 26.1 | ||||||||||||||||||||||||
See footnotes on below.
FOOTNOTES
| 1 | Reported production relates to the amount of metal sales that are subject to our royalty interests for the three month ended September 30, 2010 and September 30, 2009, as reported to us by the operators of the mines. | ||
| 2 | The rate is 75% of payable gold until 910,000 payable ounces of gold have been sold; 50% thereafter. Revenue commenced in May 2010. Gold is produced as a by-product of copper. | ||
| 3 | Royalty percentages: TB-GSR1?15.0%; TB-GSR2 ? 4.3% when the average monthly gold price ranges between $385 and $430 per ounce. Outside of this range, the royalty rate is calculated by dividing the average monthly gold price by 100 for gold prices above $430 per ounce, or by dividing the average monthly gold price by 90 for gold prices below $385 per ounce (a $900 per ounce gold price results in a rate of 900/100 = 9.0%). Two subsequent royalties consist of a 2.0% GSR perpetual royalty ('TB-GSR3?), applicable to gold production from defined portions of the Taparko-Bouroum project area, and a 0.75% GSR milling royalty ('TB-MR1?). The TB-MR1 royalty applies to ore that is mined outside of the defined area of the Taparko-Bouroum project that is processed through the Taparko facilities up to a maximum of 1.1 million tons per year. Both TB-GSR1 and TB-GSR2 continue until either production reaches 804,420 ounces of gold, or payments totaling $35 million under TB-GSR1 are received, whichever comes first. As of September 30, 2010, Royal Gold has recognized $35.0 million in royalty revenue under TB-GSR1 that was attributable to cumulative production of approximately 227,000 ounces of gold. Therefore, both the TB-GSR1 and TB-GSR2 royalties have ceased and the TB-GSR3 has commenced. | ||
| 4 | The Voisey′s Bay royalty interest was acquired in February 2010. Revenue and production figures reflect partial operation of the mine and mill due to a worker′s strike that began on August 1, 2009 and is continuing. | ||
| 5 | Revenues consist of provisional payments for concentrates produced during the current period and final settlements for prior production periods. | ||
| 6 | Royalty percentages: GSR1 and GSR2 ? 0.40 to 5.0% (sliding-scale); GSR3 ? 0.71%; NVR1 ? 0.39%. | ||
| 7 | The Company′s sliding-scale royalty is subject to a 2.0 million ounce cap on gold production. There have been approximately 610,000 ounces of cumulative production as of September 30, 2010. | ||
| 8 | The Gwalia Deeps and Las Cruces royalties were acquired in February 2010. | ||
| 9 | The Company′s 2.0% NSR royalty on gold and silver became effective on May 1, 2009, once commercial production was achieved. | ||
| 10 | 'Other? includes all of the Company′s non-principal producing royalties for the three months ended September 30, 2010 and 2009. Individually, no royalty included within 'Other? contributed greater than 5% of our total royalty revenue for any of the periods. | ||
ROYAL GOLD, INC.
| |||||||||||||||||||||||||
September 30, | June 30, | ||||||||||||||||||||||||
2010 | 2010 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
Cash and equivalents | $ | 321,503 | $ | 324,846 | |||||||||||||||||||||
Royalty receivables | 43,041 | 40,363 | |||||||||||||||||||||||
Income tax receivable | - | 3,432 | |||||||||||||||||||||||
Prepaid expenses and other current assets | 1,817 | 2,627 | |||||||||||||||||||||||
Total current assets | 366,361 | 371,268 | |||||||||||||||||||||||
Royalty interests in mineral properties, net | 1,474,594 | 1,467,983 | |||||||||||||||||||||||
Other assets | 21,852 | 22,082 | |||||||||||||||||||||||
Total assets | $ | 1,862,807 | $ | 1,861,333 | |||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
Current portion of long-term debt | $ | 26,000 | $ | 26,000 | |||||||||||||||||||||
Accounts payable | 2,233 | 2,367 | |||||||||||||||||||||||
Dividends payable | 4,978 | 4,970 | |||||||||||||||||||||||
Income tax payable | 935 | - | |||||||||||||||||||||||
Other current liabilities | 3,056 | 2,437 | |||||||||||||||||||||||
Total current liabilities | 37,202 | 35,774 | |||||||||||||||||||||||
Long-term debt | 216,000 | 222,500 | |||||||||||||||||||||||
Net deferred tax liabilities | 152,062 | 152,583 | |||||||||||||||||||||||
Other long-term liabilities | 16,045 | 16,928 | |||||||||||||||||||||||
Total liabilities | Für den Inhalt des Beitrages ist allein der Autor verantwortlich bzw. die aufgeführte Quelle. Bild- oder Filmrechte liegen beim Autor/Quelle bzw. bei der vom ihm benannten Quelle. Bei Übersetzungen können Fehler nicht ausgeschlossen werden. Der vertretene Standpunkt eines Autors spiegelt generell nicht die Meinung des Webseiten-Betreibers wieder. Mittels der Veröffentlichung will dieser lediglich ein pluralistisches Meinungsbild darstellen. Direkte oder indirekte Aussagen in einem Beitrag stellen keinerlei Aufforderung zum Kauf-/Verkauf von Wertpapieren dar. Wir wehren uns gegen jede Form von Hass, Diskriminierung und Verletzung der Menschenwürde. Beachten Sie bitte auch unsere AGB/Disclaimer!
Mineninfo
Copyright © Minenportal.de 2006-2024 | MinenPortal.de ist eine Marke von GoldSeiten.de und Mitglied der GoldSeiten Mediengruppe
Alle Angaben ohne Gewähr! Es wird keinerlei Haftung für die Richtigkeit der Angaben und der Kurse übernommen! Informationen zur Zeitverzögerung der Kursdaten und Börsenbedingungen. Kursdaten: Data Supplied by BSB-Software. | ||||||||||||||||||||||||