Royal Gold (RGLD) Tops Q3 EPS by 3c, Revenues Beat

Royal Gold (NASDAQ: RGLD) reported Q3 EPS of $0.68, $0.03 better than the analyst estimate of $0.65. Revenue for the quarter came in at $136.4 million versus the consensus estimate of $133.06 million.

• Revenue of $136.4 million, an increase of 24.3%
• Operating cash flow of $99.7 million, an increase of 28.7%
• Volume of 86,200 GEOs1, an increase of 2.4%
• Dividends paid of $18.4 million, an increase of 5.7%
• Average price of $1,583 per gold ounce, an increase of 21.4%

“Our business model, underpinned by a large, diverse and gold-based operating portfolio, has performed well and allowed us to deliver another solid quarter of operating and financial results as unprecedented challenges caused by COVID-19 began to develop,” commented Bill Heissenbuttel, President and CEO.

“The health and safety of our employees is our top priority, and we are successfully managing our business remotely. Although our high margin provided operating cash flow of approximately $100 million during the quarter, we drew $200 million on our revolving credit facility after the end of the quarter as a precautionary liquidity measure in the event that production suspensions at assets within our portfolio arise, continue or are reinstated. While the impact of COVID-19 has had a limited impact on our producing properties to date, it is difficult to confirm the potential revenue impact of future or ongoing suspensions and we will look to manage our credit facility balance accordingly as the environment evolves.”

The uncertain economic outlook facing the mining industry more generally may present new business development opportunities, and our strong balance sheet and continued access to liquidity position us well to take advantage of new opportunities that may become available. While we are focused on these opportunities, we recognize the significant impact the COVID-19 pandemic is having on the communities where we live and work, and Royal Gold has made donations totaling $525,000 to charities working in Colorado, Toronto, Vancouver and Lucerne to help address a variety of needs including food, community programs, and medical supplies and equipment. Working with our Peak Gold project partner, Contango ORE, Inc., we also increased community support to the Native Village of Tetlin.”

For earnings history and earnings-related data on Royal Gold (RGLD) click here.

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