Royal Gold, Inc. (NASDAQ: RGLD) (together with its
subsidiaries, “Royal Gold,” the “Company,” “we,” “us,” or “our”)
reports net income of $113.5 million, or $1.72 per share, for the
quarter ended March 31, 2025, ("first quarter") on revenue of
$193.4 million and operating cash flow of $136.4 million. Adjusted
net income1 was $99.8 million, or $1.51 per share.
First Quarter 2025 Highlights:
- Record earnings of $113.5 million on revenue of
$193.4 million, and operating cash flow of $136.4
million
- Revenue split: 75% gold, 12% silver, 9%
copper
- Sales volume of 67,600 GEOs2
- Sustained high adjusted EBITDA margin1 of
82%
- Total available liquidity increased to $1.25
billion
- Paid quarterly dividend of $0.45 per share, a 12.5%
increase over the prior year period
- Entered into additional Xavantina gold stream
agreement
- Achieved full repayment of Rainy River advance stream
deposit
“Our first quarter results were strong and provided an excellent
start to 2025,” commented Bill Heissenbuttel, President and CEO of
Royal Gold. “Underlying performance from our portfolio interests
was in line with our expectations for relatively soft production,
but this was more than offset by a very strong and steadily-rising
gold price through the first quarter. Although the outlook for
economic conditions remains uncertain with generally elevated
volatility in the markets, our diversified portfolio, strong
balance sheet and ample liquidity provide a stable foundation for
us to continue delivering solid results for shareholders."
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.
Recent Portfolio Developments
Principal Property Updates
Notable recent updates as reported by the operators of our
Principal Properties include:
2025 Production Guidance Confirmed and Mine Extension Project
Continues at Mount Milligan
On May 6, 2025, Centerra Gold Inc. ("Centerra") reported that
the site-wide optimization program continues to progress and it is
maintaining 2025 production guidance at the Mount Milligan mine in
British Columbia. Centerra expects 2025 gold production to range
between 165,000 and 185,000 ounces, and copper production to range
between 50 and 60 million pounds, with production of both metals to
be weighted toward the second half of the year. 2024 gold and
copper production was 167,600 ounces and 54.3 million pounds,
respectively.
Centerra also reported that a Pre-feasibility Study (“PFS”) to
evaluate the substantial mineral resources to unlock additional
value beyond the current mine life is on track to be completed in
the third quarter of 2025. According to Centerra, it is optimistic
that the mine life can be extended beyond the current mine life of
approximately 2036, which is based on the available space in the
existing tailings storage facility. Centerra also reported that it
is evaluating options for additional tailings capacity and expects
that the PFS will incorporate an increase in annual mill throughput
in the range of 10% through ball mill motor upgrades and additional
downstream flowsheet improvements, which may also improve overall
metal recovery.
2025 Guidance Unchanged and Progress Continues on Long Term
Projects at Cortez
On May 7, 2025, Barrick Mining Corporation ("Barrick") reported
that 2025 gold production guidance of approximately 680,000 to
765,000 ounces (100% basis) is unchanged at the Cortez Complex in
Nevada. This guidance compares to 2024 gold production of 722,000
ounces. We estimate our overall average royalty rate on this
production to be approximately 3.1% for 2025.
Additionally, Barrick reported continued progress at the various
projects underway at Cortez. At Goldrush, the sinking of the first
of eight ventilation shafts and the installation of underground
primary fans were completed, which enable increased mining rates.
At the Fourmile project, the exploration drilling campaign to
define the orebody and delineate the overall footprint commenced,
and the pre-feasibility study is expected to start in 2025. At the
Hanson project, exploration drilling is focused on the Birch target
for 2025, and at the Swift project, exploration results have
extended the footprint of anomalous gold mineralization 900 meters
to the south.
Higher Gold Production in 2025 Expected at Andacollo
For the first quarter, Teck Resources Limited ("Teck") reported
gold production of 7,400 ounces, compared to 3,400 ounces in the
prior year period, at the Andacollo mine in Chile. Teck expects
gold production for 2025 to range between 35,000 and 39,000 ounces
compared to actual gold production of 20,800 ounces in 2024. The
expected increase is primarily driven by higher mill throughput due
to increased water availability, which was impacted by drought
conditions throughout much of 2024. Royal Gold typically receives
stream deliveries approximately 5 months after mine production.
2025 Guidance Unchanged and Mine Life Extension Project
Advancing at Pueblo Viejo
On May 7, 2025, Barrick reported that 2025 gold production
guidance of 370,000 to 410,000 ounces for its 60% share of Pueblo
Viejo in the Dominican Republic is unchanged after completing a
35-day shutdown for debottlenecking work on the expanded plant in
the first quarter of the year. This guidance compares to 2024 gold
production of 352,000 ounces.
Barrick also provided a progress update on the mine life
extension project, where activity is focused on housing,
resettlement and the El Naranjo tailings storage facility. The
housing project continues with 220 homes constructed and 18
families resettled. Engineering work is ongoing for the tailings
storage facility and the overall schedule remains on track to have
the starter dam completed ahead of the existing El Llagal dam
reaching capacity.
Other Property Updates
Notable recent updates as reported by the operators of other
select portfolio assets include:
Producing Properties
Granite Creek (3% NSR and 2.94% NSR
royalties): In March, 2025, i-80 Gold Corp. ("i-80") announced
the results of separate preliminary economic assessments ("PEAs")
on the Granite Creek open pit and underground projects in Nevada.
According to i-80, the underground operation is currently producing
and is ramping up to full production of 60,000 ounces per year over
an eight-year mine life, and a feasibility study is expected to be
released in the fourth quarter of 2025 that includes an updated
operational plan and results from new drilling in the South Pacific
Zone. Also according to i-80, the open pit is targeted to produce
approximately 130,000 ounces per year over a ten-year mine life
with an updated feasibility study targeted for completion in the
fourth quarter of 2025.
Khoemacau
(100% silver stream): MMG Limited ("MMG") provided guidance to
Royal Gold that 2025 silver production is expected to range from
1.3 to 1.5 million ounces at the Khoemacau mine in Botswana, which
compares to 2024 actual production of approximately 1.3 million
ounces. Further, on April 24, 2025, MMG provided an update on the
expansion project, and disclosed that early works (including camp
and road construction, land acquisition and personnel recruitment)
have commenced, with construction anticipated to begin in 2026
subject to the outcomes of a feasibility study currently
underway.
Peñasquito (2% NSR royalty): On April
24, 2025, Newmont Corporation ("Newmont") reported a new daily
production record at the Peñasquito mine in Mexico, with 10,000
gold equivalent ounces produced in a single day. Newmont further
reported that high grades in the Peñasco pit resulted in strong
gold production and steady co-product production in the first
quarter. Newmont expects gold production levels to remain
relatively steady through the second quarter before beginning to
shift to a higher proportion of silver, lead and zinc content, and
a lower proportion of gold, through the third and fourth
quarters.
Rainy River (6.5% gold stream, 60% silver
stream): On February 13, 2025, New Gold Inc. (“New Gold”)
provided 2025 gold production guidance for the Rainy River mine in
Ontario of 265,000 to 295,000 ounces, with the first half of 2025
expected to represent approximately 37% of the annual production
due to waste stripping in the first quarter. This compares to 2024
gold production of approximately 225,700 ounces. New Gold also
filed an updated National Instrument 43-101 ("NI 43-101") technical
report for Rainy River, which indicates a gold production profile
averaging approximately 300,000 ounces per year over the next three
years, an extension of the open pit to 2028, steady state
production from the underground by 2027, and a nine-year mine
life.
Red Chris (1% NSR royalty): On April
24, 2025, Newmont, 70% owner and operator of the Red Chris mine in
British Columbia, confirmed that the block cave development project
is a priority within the Newmont portfolio. According to Newmont,
feasibility study work is underway this year, and underground
development to support the block cave is ongoing in addition to
engagement with First Nations communities.
Ruby Hill (3% NSR royalty): In
February, 2025, i-80 announced the results of separate PEAs on the
Archimedes and Mineral Point projects on the Ruby Hill property in
Nevada. The Archimedes PEA outlines a high-grade underground gold
mine producing approximately 100,000 ounces per year over a
ten-year mine life. i-80 disclosed that it is preparing to begin
underground development work at Archimedes in the second quarter of
2025 while continuing exploration, and is expecting to complete a
feasibility study in 2028. With respect to Mineral Point, the PEA
envisions a large open pit heap leach gold mine producing
approximately 280,000 gold equivalent ounces per year with a
16.5-year mine life. i-80 reported that it is advancing baseline
studies and drilling at Mineral Point to complete a feasibility
study in 2029 with first production targeted in 2031.
Wharf (2% GSR royalty): On February
19, 2025, Coeur Mining, Inc. ("Coeur") provided 2025 gold
production guidance for the Wharf mine in South Dakota of 90,000 to
100,000 ounces, which compares to 2024 production of 98,000 ounces.
Additionally, on February 18, 2025, Coeur announced that year-end
2024 measured and indicated gold resources more than doubled and
inferred gold resources more than tripled over the prior year,
which Coeur believes will position Wharf for significant mine life
extensions as infill drilling accelerates in 2025.
Development and Evaluation
Properties
Back River (equivalent ~3.3% GSR royalty
on the Goose Project): On March 27, 2025, B2Gold Corp.
("B2Gold") announced the results of an updated NI 43-101 report for
the Back River project in Nunavut. According to B2Gold, the mineral
reserve mine life is expected to be 9 years, and gold production is
targeted at approximately 300,000 ounces per year for the first six
years of production from 2026 through 2031. Additionally, B2Gold is
expecting to finalize a study in late 2025 or early 2026 to
evaluate an increase in mill throughput from 4,000 tonnes per day
to potentially 6,000 tonnes per day. According to B2Gold, the
existing mineral resource inventory combined with gold
mineralization prospectivity across the project land package could
sustain a mill throughput of over 6,000 tonnes per day over a mine
life in excess of the existing reserve mine life.
Great Bear (2% NSR royalty): On
February 13, 2025, Kinross Gold Corporation ("Kinross") provided an
update on the Great Bear project in Ontario. Kinross reported that
the early works for the Advanced Exploration Program had commenced
and construction of the exploration decline is expected to start in
late 2025. Additionally, permitting, engineering and engagement
with First Nations communities is underway. Kinross also disclosed
that the exploration focus in 2025 has shifted from deep
underground resource drilling to regional exploration work with the
goal of identifying new open pit and underground deposits.
Portfolio Additions
Additional Stream Interest Acquired on the Xavantina Mine in
Mato Grosso, Brazil
On March 28, 2025, our wholly-owned subsidiary, RGLD Gold AG,
entered into an additional precious metals purchase agreement
(“Additional Stream”) with Ero Gold Corporation, a wholly owned
subsidiary of Ero Copper Corp., and certain of its affiliates, for
gold produced from the Xavantina mine for an advance payment of $50
million. The Additional Stream is incremental to the existing
precious metals purchase agreement between the parties dated June
29, 2021 (“Base Stream”), and significantly extends the area of
interest.
As of March 31, 2025, 46,544 ounces of gold have been delivered
under the Base Stream at a cash purchase price of 20% of the spot
gold price for each ounce delivered, which will increase to 40% of
the spot gold price for each ounce delivered upon the delivery of
49,000 ounces.
When considered with the Base Stream, the Additional Stream
effectively increases the threshold for stream deliveries at the
current 25% stream rate from 93,000 ounces to 160,000 ounces, with
the additional deliveries to be payable at a cash price of 40% of
the spot gold price.
The purchase price was funded with available cash on hand.
First Quarter 2025 Overview
For the first quarter, we recorded record net income and
comprehensive income of $113.5 million, or $1.72 per basic and
diluted share, as compared to net income of $47.2 million, or $0.72
per basic and diluted share, for the three months ended March 31,
2024. The increase in net income was primarily attributable to
higher revenue and lower tax expense, as discussed below.
For the three months ended March 31, 2025, we recognized total
revenue of $193.4 million, comprised of stream revenue of $122.5
million and royalty revenue of $71.0 million at an average gold
price of $2,860 per ounce, an average silver price of $31.88 per
ounce and an average copper price of $4.24 per pound. This is
compared to total revenue of $148.9 million for the three months
ended March 31, 2024, comprised of stream revenue of $102.5 million
and royalty revenue of $46.4 million, at an average gold price of
$2,070 per ounce, an average silver price of $23.34 per ounce and
an average copper price of $3.83 per pound.
The increase in our total revenue resulted primarily from higher
average gold, silver and copper prices compared to the prior
period. Higher gold sales from Pueblo Viejo and higher gold and
zinc production from Peñasquito also contributed to the increase.
These increases were partially offset by lower production from
Cortez and lower gold sales from Xavantina when compared to the
prior year period.
Cost of sales, which excludes depreciation, depletion and
amortization ("DD&A"), increased to $24.5 million for the first
quarter, from $21.8 million for the three months ended March 31,
2024. The increase, when compared to the prior year period, was
primarily due to higher gold, silver and copper prices and higher
gold sales from Pueblo Viejo. Cost of sales is specific to our
stream agreements and, except for Mount Milligan, is the result of
our purchase of metal for a cash payment that is a set contractual
percentage of the spot price for that metal near the date of metal
delivery. For Mount Milligan, the cash payments under the stream
agreement are the lesser of $435 per ounce or the prevailing market
price of gold when purchased and 15% of the spot price for copper
near the date of metal delivery. Separately, and in addition to the
cash payments under the stream agreement, the Mount Milligan Cost
Support Agreement provides for cash payments on gold and copper
deliveries that are expected to begin after certain thresholds are
met or earlier, if metal prices are below certain thresholds and if
requested by Centerra. For further detail on the Mount Milligan
Cost Support Agreement refer to our 2024 10-K.
General and administrative costs decreased to $11.1 million for
the first quarter, from $11.4 million for the three months ended
March 31, 2024. The decrease was primarily due to lower consulting
costs offset by higher non-cash stock compensation expense compared
to the prior year period.
DD&A decreased to $33.0 million for the first quarter, from
$38.8 million for the three months ended March 31, 2024. The
decrease was primarily due to lower stream depletion rates as a
result of proven and probable mineral reserve increases by our
operators, lower gold sales from Xavantina and lower gold
production at Cortez compared to the prior year period.
Interest and other expense decreased to $1.2 million for the
first quarter, from $4.6 million for the three months ended March
31, 2024. The decrease was primarily due to lower interest expense
as a result of lower average amounts outstanding under our
revolving credit facility compared to the prior year period. For
the three months ended March 31, 2025, there was no outstanding
debt compared to average amounts outstanding of $221 million at an
average all-in borrowing rate of 6.6% for the prior year
period.
For the first quarter, we recorded income tax expense of $10.4
million, compared to $27.0 million for the three months ended March
31, 2024. The income tax expense resulted in an effective tax rate
of 8.4% in the current period, compared with 36.4% for the three
months ended March 31, 2024. The lower income tax expense for the
first quarter included a $12.0 million discrete benefit, net of
valuation allowance, for additional recoverable basis in foreign
jurisdictions and a $1.7 million discrete benefit related to a
withholding tax refund on a foreign royalty. The higher income tax
expense for the three months ended March 31, 2024, was primarily
attributable to a $13.0 million discrete income tax expense related
to the consideration from the Mount Milligan Cost Support
Agreement.
Net cash provided by operating activities totaled $136.4 million
for the first quarter compared to $138.3 million for the three
months ended March 31, 2024. The decrease was primarily due to cash
proceeds of $24.5 million received for the Mount Milligan Cost
Support Agreement and $12.0 million of interest from the repayment
of the Khoemacau debt facility in the
prior year period and higher income taxes paid in the current
period of $8.4 million. This decrease was partially offset by
higher net cash proceeds received from our stream and royalty
interests of $37.2 million and lower debt cash interest payments of
$4.1 million when compared to the prior year period.
Net cash used in investing activities totaled $58.3 million for
the first quarter compared to net cash provided by investing
activities of $23.6 million for the three months ended March 31,
2024. The period over period change was primarily due to the $50
million payment for the acquisition of the additional Xavantina
stream in the current period, whereas the prior year included the
receipt of $25 million from the repayment of principal on the
Khoemacau subordinated debt
facility.
Net cash used in financing activities totaled $32.8 million for
the first quarter compared to $128.1 million for the three months
ended March 31, 2024. The decrease was primarily due to lower debt
repayments when compared to the prior year period. This decrease
was partially offset by higher dividend payments compared to the
prior year period.
Other Corporate Updates
Total Available Liquidity Increased to Approximately $1.25
Billion at the end of the First Quarter
Total liquidity at the end of the first quarter was
approximately $1.25 billion, which consisted of $250 million of
working capital and $1 billion undrawn and available under the
revolving credit facility.
Property Highlights
A breakdown of revenue for the Company’s stream and royalty
portfolio can be found on Table 1 for the quarters ended March 31,
2025 and March 31, 2024. Table 2 shows stream metal sales and metal
sales attributable to the Company’s royalty interests for the
Company’s principal stream and royalty properties. Table 3 shows
Royal Gold's 2025 sales volume guidance and year to date sales
volume achieved. Table 4 shows stream segment purchases and sales
for the quarters ended March 31, 2025 and March 31, 2024 and
inventories at March 31, 2025 and December 31, 2024. Highlights at
certain of the Company’s principal producing and development
properties during the quarter ended March 31, 2025, compared to the
quarter ended March 31, 2024, are detailed in the Quarterly Report
on Form 10-Q.
CORPORATE PROFILE
Royal Gold is a high margin, mid-capitalization company that
generates strong cash flows from a large and well-diversified
portfolio of precious metal streams, royalties and similar
production-based interests located in mining-friendly
jurisdictions. Royal Gold shares trade under the symbol “RGLD” and
provide growth, value, and income investors exposure to the metals
& mining industry. The Company’s website is located at
www.royalgold.com.
First Quarter 2025 Call
Information:
Dial-In
833-470-1428 (U.S.); toll free
Numbers:
833-950-0062 (Canada); toll free
929-526-1599 (International)
Access Code:
175782
Webcast URL:
www.royalgold.com under Investors, Events
& Presentations
Note: Management’s conference call reviewing the first
quarter results will be held on Thursday, May 8, 2025, 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
Investor Resources 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,
statements regarding the following: our expected financial
performance and outlook, including our 2025 guidance; operators’
expected operating and financial performance and other anticipated
developments relating to their properties and operations, including
production, deliveries, estimates of mineral resources and mineral
reserves, environmental and feasibility studies, technical reports,
mine plans, capital requirements, liquidity and capital
expenditures; anticipated benefits from investments, acquisitions
and other transactions; the receipt and timing of future metal
deliveries, including deferred amounts at Pueblo Viejo; the timing
and amount of future benefits and obligations in connection with
the Mount Milligan Cost Support Agreement; anticipated liquidity,
capital resources, financing, and stockholder returns; borrowings
and repayments under our revolving credit facility; and prices for
gold, silver, copper and other metals.
Factors that could cause actual results to differ materially
from these forward-looking statements include, among others, the
following: changes in the price of 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, other adverse government or court actions, or operational
disruptions; changes of control of properties or operators;
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 investments, acquisitions or
other transactions; adverse economic and market conditions; effects
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 and Quarterly Reports on Form 10-Q. 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 information
about historical production, production estimates, property
descriptions, and property developments, was 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.
TABLE 1
Revenue by Stream and Royalty Interests
for the First Quarter 2025 and 2024
(In thousands)
Three Months Ended
March 31,
Stream/Royalty
Metal(s)
Current Stream/Royalty
Interest1
2025
2024
Stream:
Canada
Mount Milligan
Gold, copper
35% of payable gold and 18.75% of payable
copper
$
42,808
$
34,995
Rainy River
Gold, silver
6.5% of gold produced and 60% of silver
produced
10,422
9,709
Latin America
Pueblo Viejo
Gold, silver
7.5% of Barrick's interest in payable gold
and 75% of Barrick's interest in payable silver
$
28,751
$
17,760
Andacollo
Gold
100% of payable gold
12,744
11,689
Xavantina
Gold
25% of gold produced
5,376
9,274
Africa
Wassa
Gold
10.5% of payable gold
$
12,419
$
11,343
Khoemacau
Silver
100% of payable silver
9,962
7,758
Total stream revenue
$
122,482
$
102,528
Royalty:
Canada
Voisey's Bay
Copper, nickel, cobalt
2.7% NVR
$
2,499
$
1,139
Red Chris
Gold, copper
1.0% NSR
4,477
2,617
Côté Gold
Gold
1.0% NSR
1,314
—
LaRonde Zone 5
Gold
2.0% NSR
1,173
808
Williams
Gold
0.97% NSR
852
351
Other-Canada
Various
Various
397
216
United States
Cortez
Legacy Zone
Gold
Approx. 9.4% GSR Equivalent
$
11,143
$
13,365
CC Zone
Gold
Approx. 0.45%-2.2% GSR Equivalent
3,554
4,411
Robinson
Gold, copper
3.0% NSR
4,397
1,783
Manh Choh
Gold, silver
3.0% NSR, 28% NSR (silver)
5,623
—
Marigold
Gold
2.0% NSR
2,157
1,406
Leeville
Gold
1.8% NSR
1,627
1,485
Wharf
Gold
0.0%-2.0% sliding-scale GSR
1,171
821
Goldstrike
Gold
0.9% NSR
244
496
Other-United States
Various
Various
1,090
312
Latin America
Peñasquito
Gold, silver, lead, zinc
2.0% NSR
$
15,409
9,229
El Limon
Gold
3.0% NSR
3,279
1,310
Dolores
Gold, silver
3.25% NSR (gold), 2.0% NSR (silver)
1,662
1,539
Mara Rosa
Gold, silver
2.75% NSR
930
—
Other-Latin America
Various
Various
—
111
Australia
South Laverton
Gold
1.5% NSR, 4.0% NPI
$
2,492
$
1,899
King of the Hills
Gold
1.5% NSR
1,585
1,190
Bellevue
Gold
2.0% NSR
1,339
578
Gwalia
Gold
1.5% NSR
1,087
771
Wonder
Gold, silver
1.5% NSR
488
—
Other-Australia
Various
Various
965
536
Total royalty revenue
$
70,954
$
46,374
Total revenue
$
193,436
$
148,902
- For a full description of the Company’s stream and royalty
interests, refer to the 2024 Asset Handbook, published on April,
22, 2025 and available on our website.
TABLE 2
Stream Metal and Royalty Sales for
Principal Properties
Reported Production For The
Quarter Ended2
Property
Operator
Current Stream/ Royalty
Interest1
Metal(s)
Mar. 31, 2025
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Stream:
Mount Milligan
Centerra
35% of payable gold
Gold
11,800
oz
11,300
oz
17,600
oz
16,100
oz
12,500
oz
18.75% of payable copper
Copper
2.2
Mlb
2.8
Mlb
3.1
Mlb
3.4
Mlb
2.5
Mlb
Pueblo Viejo
Barrick (60%)
7.5% of Barrick's interest in payable
gold
Gold
7,700
oz
5,900
oz
7,000
oz
5,800
oz
6,200
oz
75% of Barrick's interest in payable
silver3
Silver
219,400
oz
89,500
oz
332,700
oz
218,200
oz
223,000
oz
Andacollo
Teck
100% of payable gold
Gold
4,400
oz
5,800
oz
4,000
oz
4,500
oz
5,700
oz
Royalty:
Cortez
Nevada Gold Mines LLC
9.4% GSR on Legacy Zone4
Gold
31,100
oz
52,600
oz
45,300
oz
42,600
oz
69,200
oz
0.45%-2.2% GSR on CC Zone4
Gold
119,700
oz
149,800
oz
116,500
oz
119,800
oz
125,000
oz
- For a full description of the Company’s stream and royalty
interests, refer to the 2024 Asset Handbook, published on April,
22, 2025 and available on our website.
- 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.
- The Pueblo Viejo silver stream is determined based on a fixed
metallurgical recovery of 70% of silver in mill feed.
- 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 Nevada and
Outlines Simplified Approach to Describing Royal Gold’s Multiple
Royalty Interests at Cortez” issued January 5, 2023.
TABLE 3
2025 Sales Volume Guidance and Year to
Date Sales Volume Achieved
2025 Guidance
Metal Sales by Segment for the
Three Months Ended March 31, 2025
Stream Sales1
Royalty Sales2
Total Sales
Gold
(oz)
210,000 - 230,000
33,300
17,892
51,192
Silver
(M oz)
2.7-3.3
0.6
0.2
0.8
Copper
(M lb)
13.5 - 16.0
2.2
1.8
4.0
Other Metals
(M)
$18.0 - $21.0
N/A
$7.3
$7.3
1 Stream Sales represents physical metal
sold.
2 Royalty Sales represents royalty revenue
divided by the average metal price for the period.
TABLE 4
Stream Segment Summary
Three Months Ended
March 31, 2025
Three Months Ended
March 31, 2024
As of March 31,
2025
As of December 31,
2024
Gold Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Inventory (oz)
Inventory (oz)
Mount Milligan
16,100
11,800
15,200
12,500
8,800
4,500
Pueblo Viejo
5,800
7,700
5,800
6,200
5,800
7,700
Andacollo
5,500
4,400
4,900
5,700
1,100
—
Other
8,800
9,400
13,800
13,700
2,700
3,300
Total
36,200
33,300
39,700
38,100
18,400
15,500
Silver Stream
Purchases (oz)
Sales (oz)
Purchases (oz)
Sales (oz)
Inventory (oz)
Inventory (oz)
Pueblo Viejo1
204,700
219,400
218,200
223,000
204,700
219,400
Other
367,500
378,000
383,100
412,000
108,500
119,000
Total
572,200
597,400
601,300
635,000
313,200
338,400
Copper Stream
Purchases (Mlb)
Sales (Mlb)
Purchases (Mlb)
Sales (Mlb)
Inventory (Mlb)
Inventory (Mlb)
Mount Milligan
3.1
2.2
3.4
2.5
0.9
—
1 Silver stream purchases do not include
300,200 ounces of silver permitted to be deferred in the first
quarter based on the terms of the Pueblo Viejo stream agreement.
Total deferred deliveries were approximately 2.0 million ounces at
March 31, 2025, and the timing for the delivery of the entire
deferred amount is uncertain.
ROYAL GOLD, INC.
Consolidated Balance Sheets
(Unaudited, in thousands except share
data)
March 31, 2025
December 31, 2024
ASSETS
Cash and equivalents
$
240,760
$
195,498
Royalty receivables
57,729
63,460
Income tax receivable
1,370
1,139
Stream inventory
14,556
12,973
Prepaid expenses and other
2,084
2,217
Total current assets
316,499
275,287
Stream and royalty interests, net
3,059,885
3,042,804
Other assets
81,934
74,039
Total assets
$
3,458,318
$
3,392,130
LIABILITIES
Accounts payable
$
2,464
$
10,578
Dividends payable
29,634
29,611
Income tax payable
15,345
23,177
Other current liabilities
19,329
21,785
Total current liabilities
66,772
85,151
Deferred tax liabilities
131,879
132,308
Mount Milligan deferred liability
25,000
25,000
Other liabilities
19,521
18,465
Total liabilities
243,172
260,924
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 65,735,304 and 65,691,151 shares
outstanding, respectively
657
657
Additional paid-in capital
2,228,497
2,228,311
Accumulated earnings
973,853
889,989
Total Royal Gold stockholders’ equity
3,203,007
3,118,957
Non-controlling interests
12,139
12,249
Total equity
3,215,146
3,131,206
Total liabilities and equity
$
3,458,318
$
3,392,130
ROYAL GOLD, INC.
Consolidated Statements of Operations and
Comprehensive Income
(Unaudited, in thousands except share
data)
Three Months Ended
March 31, 2025
March 31, 2024
Revenue
$
193,436
$
148,902
Costs and expenses
Cost of sales (excludes depreciation,
depletion and amortization)
24,506
21,751
General and administrative
11,063
11,412
Production taxes
1,761
1,449
Depreciation, depletion and
amortization
32,995
38,765
Total costs and expenses
70,325
73,377
Operating income
123,111
75,525
Fair value changes in equity
securities
(37
)
447
Interest and other income
2,049
2,977
Interest and other expense
(1,156
)
(4,607
)
Income before income taxes
123,967
74,342
Income tax expense
(10,389
)
(27,033
)
Net income and comprehensive income
113,578
47,309
Net income and comprehensive income
attributable to non-controlling interests
(80
)
(143
)
Net income and comprehensive income
attributable to Royal Gold common stockholders
$
113,498
$
47,166
Net income per share attributable to Royal
Gold common stockholders:
Basic earnings per share
$
1.72
$
0.72
Basic weighted average shares
outstanding
65,705,157
65,637,428
Diluted earnings per share
$
1.72
$
0.72
Diluted weighted average shares
outstanding
65,791,551
65,740,260
Cash dividends declared per common
share
$
0.45
$
0.40
ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended
March 31, 2025
March 31, 2024
Cash flows from operating activities:
Net income and comprehensive income
$
113,578
$
47,309
Adjustments to reconcile net income and
comprehensive income to net cash provided by operating
activities:
Depreciation, depletion and
amortization
32,995
38,765
Non-cash employee stock compensation
expense
3,198
2,988
Fair value changes in equity
securities
37
(447
)
Deferred tax (benefit) expense
(8,828
)
648
Other
224
222
Changes in assets and liabilities:
Royalty receivables
5,731
10,127
Stream inventory
(1,583
)
(1,629
)
Income tax receivable
(231
)
(433
)
Prepaid expenses and other assets
345
10,763
Accounts payable
135
158
Income tax payable
(7,832
)
6,465
Mount Milligan deferred liability
—
25,000
Other liabilities
(1,400
)
(1,652
)
Net cash provided by operating
activities
$
136,369
$
138,284
Cash flows from investing activities:
Acquisition of stream and royalty
interests
(58,246
)
(1,104
)
Proceeds from Khoemacau debt facility
—
25,000
Other
(49
)
(305
)
Net cash (used in) provided by investing
activities
$
(58,295
)
$
23,591
Cash flows from financing activities:
Repayment of debt
—
(100,000
)
Net payments from issuance of common
stock
(3,011
)
(1,369
)
Common stock dividends
(29,611
)
(26,292
)
Other
(190
)
(431
)
Net cash used in financing activities
$
(32,812
)
$
(128,092
)
Net increase in cash and equivalents
45,262
33,783
Cash and equivalents at beginning of
period
195,498
104,167
Cash and equivalents at end of period
$
240,760
$
137,950
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
U.S. generally accepted accounting principles (“GAAP”). These
measures should not be considered in isolation or as a substitute
for measures prepared in accordance with GAAP. In addition, because
the presentation of these non-GAAP financial measures varies among
companies, these non-GAAP financial measures may not be comparable
to similarly titled measures used by other companies.
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 U.S. GAAP measures
Adjusted EBITDA, Adjusted EBITDA
margin, net debt, and net debt to TTM adjusted EBITDA:
Three Months Ended
March 31,
(amounts in thousands)
2025
2024
Net income and comprehensive income
$
113,578
$
47,309
Depreciation, depletion and
amortization
32,995
38,765
Non-cash employee stock compensation
3,198
2,988
Fair value changes in equity
securities
37
(447
)
Interest and other, net
(893
)
1,630
Income tax expense
10,389
27,033
Non-controlling interests in operating
income of consolidated subsidiaries
(80
)
(143
)
Adjusted EBITDA
$
159,224
$
117,135
Net income margin
59
%
32
%
Adjusted EBITDA margin
82
%
79
%
Three Months Ended
March 31,
December 31,
September 30,
June 30,
(amounts in thousands)
2025
2024
2024
2024
Net income and comprehensive income
$
113,578
$
107,521
$
96,330
$
81,320
Depreciation, depletion and
amortization
32,995
33,737
36,177
35,747
Non-cash employee stock compensation
3,198
2,579
2,977
3,348
Fair value changes in equity
securities
37
24
425
63
Interest and other, net
(893
)
(179
)
581
1,709
Income tax expense
10,389
26,078
21,510
18,991
Non-controlling interests in operating
income of consolidated subsidiaries
(80
)
(113
)
(88
)
(112
)
Adjusted EBITDA
$
159,224
$
169,647
$
157,912
$
141,066
Net income margin
59
%
53
%
50
%
47
%
Adjusted EBITDA margin
82
%
84
%
81
%
81
%
TTM adjusted EBITDA
$
627,849
Debt
$
—
Cash and equivalents
(240,760
)
Net debt / (cash)
$
(240,760
)
Net debt / (cash) to TTM adjusted
EBITDA
(0.38)x
Cash G&A:
Three Months Ended
March 31,
(amounts in thousands)
2025
2024
General and administrative expense
$
11,063
$
11,412
Non-cash employee stock compensation
(3,198
)
(2,988
)
Cash G&A
$
7,865
$
8,424
Three Months Ended
March 31,
December 31,
September 30,
June 30,
(amounts in thousands)
2025
2024
2024
2024
General and administrative expense
$
11,063
$
8,909
$
10,102
$
10,511
Non-cash employee stock compensation
(3,198
)
(2,579
)
(2,977
)
(3,348
)
Cash G&A
$
7,865
$
6,330
$
7,125
$
7,163
TTM cash G&A
$
28,483
Adjusted net income and adjusted net
income per share:
Three Months Ended
March 31,
(amounts in thousands, except per share
data)
2025
2024
Net income and comprehensive income
attributable to Royal Gold common stockholders
$
113,498
$
47,166
Fair value changes in equity
securities
37
(447
)
Discrete tax expense related to Mount
Milligan Cost Support Agreement
—
12,978
Discrete tax benefit for basis adjustment,
net of valuation allowance
(12,008
)
—
Withholding tax refund
(1,715
)
—
Tax effect of adjustments
(10
)
118
Adjusted net income and comprehensive
income attributable to Royal Gold common stockholders
$
99,802
$
59,815
Net income attributable to Royal Gold
common stockholders per diluted share
$
1.72
$
0.72
Fair value changes in equity
securities
—
(0.01
)
Discrete tax expense related to Mount
Milligan Cost Support Agreement
—
0.20
Discrete tax benefit for basis adjustment,
net of valuation allowance
(0.18
)
—
Withholding tax refund
(0.03
)
—
Tax effect of adjustments
—
$
—
Adjusted net income attributable to Royal
Gold common stockholders per diluted share
$
1.51
$
0.91
Free cash flow:
Three Months Ended
March 31,
(amounts in thousands)
2025
2024
Net cash provided by operating
activities
$
136,369
$
138,284
Acquisition of stream and royalty
interests
(58,246
)
(1,104
)
Free cash flow
$
78,123
$
137,180
Net cash (used in) provided by investing
activities
$
(58,295
)
$
23,591
Net cash used in financing activities
$
(32,812
)
$
(128,092
)
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250507598400/en/
For further information, please contact: Alistair Baker
Senior Vice President, Investor Relations and Business Development
(303) 573-1660
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