Royal Gold (RGLD) Tops Q3 EPS by 5c

Royal Gold (NASDAQ: RGLD) reported Q3 EPS of $0.84, $0.05 better than the analyst estimate of $0.79. Revenue for the quarter came in at $142.6 million versus the consensus estimate of $149.23 million.

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.”

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

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