Royal Gold Reports Strong Fourth Quarter and Full Year 2023 Operating and Financial Results
For the quarter ended
Sales volume for 2023 at metal prices used to provide GEO2 guidance was 315,600 GEOs3, slightly below the low end of the previously-issued guidance range of 320,000 to 345,000 GEOs, and in line with the range of expectations we provided with our third quarter 2023 results. At actual 2023 metal prices, sales volume was approximately 312,100 GEOs.
2023 Highlights:
-
Solid financial results with revenue of
$605.7 million , operating cash flow of$415.8 million and earnings of$239.4 million - Revenue split: 76% gold, 12% silver, 9%copper
- Sales volume of 312,100 GEOs2,3
- Sustained high adjusted EBITDA margin1 of 79%
-
Debt reduced by
$325 million to$250 million -
Total available liquidity increased to
$845 million -
Revolving credit facility maturity extended to
June 28, 2028 -
Paid
$1.50 per share dividend
Fourth Quarter 2023 Highlights:
-
Increased dividend for the 23rd consecutive year
to
$1.60 per share for 2024, a 7% increase over 2023 -
Repaid
$75 million of balance outstanding on revolving credit facility
“We finished 2023 on a strong note with solid financial results in the fourth quarter,” commented
“While we anticipate issuing 2024 guidance in April for our total portfolio, we are expecting to see continued revenue growth from our newest producers,
____________________ |
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. |
3 2023 actual volume was approximately 315,600 GEOs at commodity prices used to set 2023 guidance of: |
Recent Portfolio Developments
Principal Property Updates
Notable recent updates as reported by the operators of our
Agreement with Centerra that Provides for
On
Additionally, on
Record of Decision Received at Goldrush and
On
Further, on
Update on Ramp-Up of Plant Expansion with Further Deferral of Silver Deliveries at Pueblo Viejo
On
Silver stream deliveries were approximately 223,000 ounces for the fourth quarter compared to 337,900 ounces for the prior year quarter, and an additional 165,400 ounces of silver deliveries were deferred during the current period. As of
Barrick is expecting its share of gold production at Pueblo Viejo to be 420,000 to 490,000 ounces in 2024 (60% basis).
Production for 2024 Expected to Remain in Line with 2023 at Andacollo
On
Announcement of Change in Ownership of Khoemacau
On
During development of Khoemacau,
Other Property Updates
Notable recent updates as reported by the operators of other select portfolio assets include:
Producing Properties
King of the Hills (1.5% NSR royalty): On
Côté Gold (1% NSR royalty): IAMGOLD Corporation reported on
Great Bear (2% NSR royalty): Kinross Gold Corporation (“Kinross”) provided an update on activity at the
2023 Overview
For the year ended
For the year ended
The increase in our total revenue for the year ended
Cost of sales, which excludes depreciation, depletion and amortization (“DD&A”), decreased to
General and administrative costs increased to
DD&A decreased to
There were no impairment charges on any of our stream or royalty interests for the year ended
Interest and other expense increased to
Income tax expense was
Net cash provided by operating activities totaled
Net cash used in investing activities totaled
Net cash used in financing activities totaled
At
Fourth Quarter 2023 Overview
In the fourth quarter, we recorded net income of
For the fourth quarter, we recognized total revenue of
The decrease in our total revenue resulted primarily from lower gold and copper sales at
Cost of sales, which excludes DD&A, decreased to
General and administrative costs increased to
DD&A decreased to
Interest and other expense was
For the fourth quarter, we recorded income tax expense of
Net cash provided by operating activities totaled
Net cash used in investing activities was nil for the fourth quarter, compared to
Net cash used in financing activities totaled
Other Corporate Updates
Total Available Liquidity Increases to Approximately
On
Outlook for 2024
We expect stream segment sales of 47,000 to 52,000 GEOs for the quarter ended
Property Highlights
A breakdown of revenue for the Company’s stream and royalty portfolio can be found on Table 1 for the quarters and calendar years ended
CORPORATE PROFILE
Fourth Quarter and 2023 Call Information: |
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Dial-In Numbers: |
844-200-6205 ( |
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833-950-0062 ( |
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646-904-5544 (International) |
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Access Code: |
565180 |
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Webcast URL: |
www.royalgold.com under Investors, Events & Presentations |
Note: Management’s conference call reviewing the fourth quarter and full year 2023 results will be held on
Additional Investor Information:
Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of
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 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, or operational disruptions; 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 acquisitions; adverse economic and market conditions; impact 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
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
Information in this press release concerning the Khoemacau
TABLE 1 |
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Revenue by Stream and Royalty Interests for the Fourth Quarter and Calendar Year 2023 and 2022 |
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(In thousands) |
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Three Months Ended |
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Year Ended |
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Stream/Royalty |
Metal(s) |
|
Current Stream/Royalty Interest1 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Stream: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold, copper |
|
35% of payable gold and 18.75% of payable copper |
|
$ |
36,429 |
|
$ |
50,947 |
|
$ |
158,167 |
|
$ |
180,543 |
|
Gold, silver |
|
6.5% of gold produced and 60% of silver produced |
|
|
10,127 |
|
|
8,484 |
|
|
38,794 |
|
|
31,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pueblo Viejo |
Gold, silver |
|
7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver |
|
$ |
13,661 |
|
$ |
21,631 |
|
$ |
76,247 |
|
$ |
85,863 |
Andacollo |
Gold |
|
100% of payable gold |
|
|
13,519 |
|
|
7,782 |
|
|
48,920 |
|
|
47,347 |
Xavantina |
Gold |
|
25% of gold produced |
|
|
8,199 |
|
|
4,932 |
|
|
25,395 |
|
|
18,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Khoemacau |
Silver |
|
100% of payable silver |
|
$ |
7,521 |
|
$ |
6,145 |
|
$ |
34,602 |
|
$ |
18,786 |
Wassa |
Gold |
|
10.5% of payable gold |
|
|
8,238 |
|
|
8,312 |
|
|
32,815 |
|
|
31,152 |
Prestea and Bogoso |
Gold |
|
5.5% of payable gold |
|
|
604 |
|
|
697 |
|
|
3,340 |
|
|
3,849 |
Total stream revenue |
|
|
|
|
$ |
98,298 |
|
$ |
108,930 |
|
$ |
418,280 |
|
$ |
417,793 |
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's Bay |
Copper, nickel, cobalt |
|
2.7% NVR |
|
$ |
1,992 |
|
$ |
3,948 |
|
$ |
5,309 |
|
$ |
14,450 |
Red Chris |
Gold, copper |
|
1.0% NSR |
|
|
- |
|
|
- |
|
|
3,170 |
|
|
3,432 |
|
Gold |
|
2.0% NSR |
|
|
591 |
|
|
642 |
|
|
2,461 |
|
|
2,486 |
Canadian |
Gold |
|
1.0%-1.5% sliding-scale NSR |
|
|
129 |
|
|
1,012 |
|
|
1,463 |
|
|
4,689 |
Williams2 |
Gold |
|
0.97% NSR |
|
|
242 |
|
|
184 |
|
|
(987) |
|
|
882 |
Other- |
Various |
|
Various |
|
|
173 |
|
|
48 |
|
|
1,296 |
|
|
1,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
Approx. 9.4% GSR Equivalent |
|
$ |
22,858 |
|
$ |
18,381 |
|
$ |
79,920 |
|
$ |
47,769 |
|
Gold |
|
Approx. 0.45%-2.2% GSR Equivalent |
|
|
4,952 |
|
|
2,790 |
|
|
14,626 |
|
|
2,790 |
Robinson |
Gold, copper |
|
3.0% NSR |
|
|
3,619 |
|
|
3,358 |
|
|
9,109 |
|
|
11,659 |
Marigold |
Gold |
|
2.0% NSR |
|
|
2,593 |
|
|
1,439 |
|
|
5,110 |
|
|
6,061 |
Leeville |
Gold |
|
1.8% NSR |
|
|
2,170 |
|
|
963 |
|
|
5,712 |
|
|
4,004 |
Wharf |
Gold |
|
0.0%-2.0% sliding-scale GSR |
|
|
1,169 |
|
|
628 |
|
|
3,630 |
|
|
2,485 |
Goldstrike |
Gold |
|
0.9% NSR |
|
|
495 |
|
|
734 |
|
|
1,575 |
|
|
3,117 |
Other- |
Various |
|
Various |
|
|
751 |
|
|
733 |
|
|
4,008 |
|
|
3,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito |
Gold, silver, lead, zinc |
|
2.0% NSR |
|
$ |
4,234 |
|
$ |
11,397 |
|
$ |
17,772 |
|
$ |
43,165 |
Dolores |
Gold, silver |
|
3.25% NSR (gold), 2.0% NSR (silver) |
|
|
2,106 |
|
|
2,075 |
|
|
7,981 |
|
|
9,223 |
|
Gold |
|
3.0% NSR |
|
|
1,158 |
|
|
1,293 |
|
|
5,280 |
|
|
5,705 |
Other- |
Various |
|
Various |
|
|
- |
|
|
130 |
|
|
456 |
|
|
1,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other- |
Various |
|
Various |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Laverton |
Gold |
|
1.5% NSR, 4.0% NPI |
|
$ |
2,006 |
|
$ |
1,478 |
|
$ |
7,283 |
|
$ |
6,172 |
King of the Hills |
Gold |
|
1.5% NSR |
|
|
1,094 |
|
|
883 |
|
|
4,200 |
|
|
883 |
Gwalia Deeps |
Gold |
|
1.5% NSR |
|
|
1,044 |
|
|
832 |
|
|
3,726 |
|
|
4,059 |
Meekatharra |
Gold |
|
0.45% or 1.5% NSR and |
|
|
517 |
|
|
654 |
|
|
2,175 |
|
|
2,952 |
|
Gold |
|
2.0% NSR |
|
|
51 |
|
|
- |
|
|
51 |
|
|
- |
Other- |
Various |
|
Various |
|
|
424 |
|
|
179 |
|
|
1,576 |
|
|
1,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Las Cruces |
Copper |
|
1.5% NSR (copper) |
|
$ |
- |
|
$ |
269 |
|
$ |
535 |
|
$ |
1,277 |
Total royalty revenue |
|
|
|
|
$ |
54,368 |
|
$ |
54,050 |
|
$ |
187,437 |
|
$ |
185,413 |
Total revenue |
|
|
|
|
$ |
152,666 |
|
$ |
162,980 |
|
$ |
605,717 |
|
$ |
603,206 |
1 |
Refer to Part I, Item 2, of the Company’s Annual Report on Form 10-K for a full description of the Company’s stream and royalty interests. |
|
2 |
The Williams royalty revenue was negative for the twelve months ended |
TABLE 2 |
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Historical Stream Metal and Royalty Sales for |
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Reported Production For The Quarter Ended2 |
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Property |
|
Operator |
|
Current Stream/ Royalty Interest1 |
|
Metal(s) |
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Stream: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centerra |
|
35% of payable gold |
|
Gold |
|
14,000 |
|
oz |
|
11,300 |
|
oz |
|
17,500 |
|
oz |
|
15,200 |
|
oz |
|
20,200 |
|
oz |
|
|
|
|
18.75% of payable copper |
|
Copper |
|
2.4 |
|
Mlb |
|
3.2 |
|
Mlb |
|
1.7 |
|
Mlb |
|
4.5 |
|
Mlb |
|
4.5 |
|
Mlb |
Pueblo Viejo |
|
Barrick (60%) |
|
7.5% of Barrick's interest in payable gold |
|
Gold |
|
5,000 |
|
oz |
|
6,800 |
|
oz |
|
7,400 |
|
oz |
|
7,900 |
|
oz |
|
8,900 |
|
oz |
|
|
|
|
75% of Barrick's interest in payable silver3 |
|
Silver |
|
171,100 |
|
oz |
|
150,700 |
|
oz |
|
362,200 |
|
oz |
|
337,900 |
|
oz |
|
319,100 |
|
oz |
Andacollo |
|
Teck |
|
100% of payable gold |
|
Gold |
|
7,000 |
|
oz |
|
7,500 |
|
oz |
|
4,000 |
|
oz |
|
7,000 |
|
oz |
|
4,700 |
|
oz |
Khoemacau |
|
Khoemacau Copper Mining |
|
100% of payable silver |
|
Silver |
|
323,800 |
|
oz |
|
386,100 |
|
oz |
|
373,000 |
|
oz |
|
404,100 |
|
oz |
|
307,300 |
|
oz |
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.4% GSR on |
|
Gold |
|
111,900 |
|
oz |
|
98,800 |
|
oz |
|
68,100 |
|
oz |
|
117,200 |
|
oz |
|
109,200 |
|
oz |
|
|
|
|
0.45%-2.2% GSR on |
|
Gold |
|
156,600 |
|
oz |
|
120,000 |
|
oz |
|
111,500 |
|
oz |
|
106,600 |
|
oz |
|
114,000 |
|
oz |
Peñasquito |
|
Newmont Corporation |
|
2.0% NSR |
|
Gold |
|
25,900 |
|
oz |
|
- |
|
oz |
|
48,100 |
|
oz |
|
55,600 |
|
oz |
|
164,300 |
|
oz |
|
|
|
|
|
|
Silver |
|
4.6 |
|
Moz |
|
- |
|
Moz |
|
6.0 |
|
Moz |
|
6.1 |
|
Moz |
|
7.1 |
|
Moz |
|
|
|
|
|
|
Lead |
|
34.9 |
|
Mlb |
|
- |
|
Mlb |
|
35.6 |
|
Mlb |
|
36.4 |
|
Mlb |
|
40.3 |
|
Mlb |
|
|
|
|
|
|
Zinc |
|
33.5 |
|
Mlb |
|
- |
|
Mlb |
|
89.7 |
|
Mlb |
|
99.2 |
|
Mlb |
|
83.5 |
|
Mlb |
1 |
Refer to Part I, Item 2, of the Company’s Annual Report on Form 10-K for a full description of the Company’s stream and royalty interests. |
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2 |
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. |
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3 |
The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed. |
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4 |
Approximate blended royalty rates as described in the press release “Royal Gold Announces Acquisition of Additional Royalty Interests on the |
TABLE 3 |
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Operator’s Estimated and Actual Production |
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Calendar Year 2023 Operator's Production |
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Calendar Year 2023 Operator's Production |
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Estimate1 |
|
Actual2 |
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Stream/Royalty |
|
Gold (oz) |
|
Silver (oz) |
|
Base Metals (lb) |
|
Gold (oz) |
|
Silver (oz) |
|
Base Metals (lb) |
Stream: |
|
|
|
|
|
|
|
|
|
|
|
|
Andacollo3 |
|
22,000 - 27,000 |
|
|
|
|
|
23,400 |
|
|
|
|
|
|
150,000 - 160,000 |
|
|
|
|
|
154,400 |
|
|
|
|
Copper |
|
|
|
|
|
60 - 70 M |
|
|
|
|
|
62 M |
Pueblo Viejo5 |
|
470,000 - 520,000 |
|
N/A |
|
|
|
335,000 |
|
N/A |
|
|
Khoemacau6 |
|
|
|
1.5 - 1.7 M |
|
|
|
|
|
1.5 M |
|
|
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
940,000 - 1,060,000 |
|
|
|
|
|
893,000 |
|
|
|
|
Peñasquito8 |
|
N/A |
|
N/A |
|
|
|
123,000 |
|
13.8 M |
|
|
Lead |
|
|
|
|
|
N/A |
|
|
|
|
|
86 M |
Zinc |
|
|
|
|
|
N/A |
|
|
|
|
|
180 M |
1 |
Production estimates received from the operators are for calendar 2023. Please refer to our cautionary language regarding forward-looking statements, as well as the Risk Factors identified in Part I, Item 1A, of the Company’s Annual Report on 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 |
|
3 |
The estimated and actual production figures shown for Andacollo are contained gold in concentrate. Deliveries to |
|
4 |
The estimated and actual production figures shown for |
|
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. Barrick did not provide estimated or actual silver production. Deliveries to |
|
6 |
The estimated and actual production figures for Khoemacau are payable silver in concentrate. Deliveries to |
|
7 |
The estimated and actual production figures for |
|
8 |
The gold and silver production figures shown for Peñasquito are payable gold and silver in concentrate and doré. The lead and zinc production figures shown are payable lead and zinc in concentrate. Actual production figures are for the period |
TABLE 4 |
||||||||||||
Stream Summary |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
As of |
|
As of |
||||
|
|
|
|
|
|
|
|
|
||||
Gold Stream |
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
Inventory (oz) |
|
Inventory (oz) |
|
|
12,600 |
|
14,000 |
|
16,700 |
|
20,200 |
|
4,000 |
|
5,200 |
Pueblo Viejo |
|
6,200 |
|
5,000 |
|
7,900 |
|
8,900 |
|
6,200 |
|
7,900 |
Andacollo |
|
4,200 |
|
7,000 |
|
8,400 |
|
4,700 |
|
800 |
|
3,800 |
Other |
|
12,700 |
|
13,100 |
|
11,300 |
|
12,200 |
|
4,200 |
|
4,100 |
Total |
|
35,700 |
|
39,100 |
|
44,300 |
|
46,000 |
|
15,200 |
|
21,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
As of |
|
As of |
||||
|
|
|
|
|
|
|
|
|
||||
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
Inventory (oz) |
|
Inventory (oz) |
Khoemacau |
|
375,200 |
|
323,800 |
|
298,700 |
|
307,300 |
|
135,300 |
|
105,900 |
Pueblo Viejo |
|
223,000 |
|
171,100 |
|
337,900 |
|
319,100 |
|
223,000 |
|
337,800 |
Other |
|
71,700 |
|
61,300 |
|
68,000 |
|
50,100 |
|
24,800 |
|
17,500 |
Total |
|
669,800 |
|
556,200 |
|
704,600 |
|
676,500 |
|
383,100 |
|
461,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
As of |
|
As of |
||||
|
|
|
|
|
|
|
|
|
||||
Copper Stream |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Inventory (Mlb) |
|
Inventory (Mlb) |
|
|
2.5 |
|
2.4 |
|
3.6 |
|
4.5 |
|
— |
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
||||
|
|
|
|
|
||||
Gold Stream |
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
56,800 |
|
58,000 |
|
68,900 |
|
67,800 |
Pueblo Viejo |
|
25,400 |
|
27,100 |
|
32,500 |
|
33,200 |
Andacollo |
|
22,500 |
|
25,500 |
|
27,700 |
|
26,200 |
Other |
|
48,600 |
|
48,500 |
|
44,600 |
|
44,300 |
Total |
|
153,300 |
|
159,100 |
|
173,700 |
|
171,500 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
||||
|
|
|
|
|
||||
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
Khoemacau |
|
1,516,400 |
|
1,487,000 |
|
951,500 |
|
887,700 |
Pueblo Viejo |
|
907,000 |
|
1,021,900 |
|
1,238,600 |
|
1,216,700 |
Other |
|
277,500 |
|
270,100 |
|
238,600 |
|
225,400 |
Total |
|
2,700,900 |
|
2,779,000 |
|
2,428,700 |
|
2,329,800 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
||||
|
|
|
|
|
||||
Copper Stream |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
|
10.9 |
|
11.8 |
|
14.8 |
|
14.8 |
|
||||||
Consolidated Balance Sheets |
||||||
(Unaudited, in thousands except share data) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
Cash and equivalents |
|
$ |
104,167 |
|
$ |
118,586 |
Royalty receivables |
|
|
48,884 |
|
|
49,405 |
Income tax receivable |
|
|
2,676 |
|
|
3,066 |
Stream inventory |
|
|
9,788 |
|
|
12,656 |
Prepaid expenses and other |
|
|
1,911 |
|
|
2,120 |
Total current assets |
|
|
167,426 |
|
|
185,833 |
Stream and royalty interests, net |
|
|
3,075,574 |
|
|
3,237,402 |
Other assets |
|
|
118,057 |
|
|
111,287 |
Total assets |
|
$ |
3,361,057 |
|
$ |
3,534,522 |
LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
$ |
11,441 |
|
$ |
6,686 |
Dividends payable |
|
|
26,292 |
|
|
24,627 |
Income tax payable |
|
|
15,557 |
|
|
16,065 |
Other current liabilities |
|
|
19,132 |
|
|
16,209 |
Total current liabilities |
|
|
72,422 |
|
|
63,587 |
Debt |
|
|
245,967 |
|
|
571,572 |
Deferred tax liabilities |
|
|
134,299 |
|
|
138,156 |
Other liabilities |
|
|
7,728 |
|
|
7,738 |
Total liabilities |
|
|
460,416 |
|
|
781,053 |
Commitments and contingencies |
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
656 |
|
|
656 |
Additional paid-in capital |
|
|
2,221,039 |
|
|
2,213,123 |
Accumulated earnings |
|
|
666,522 |
|
|
527,314 |
Total |
|
|
2,888,217 |
|
|
2,741,093 |
Non-controlling interests |
|
|
12,424 |
|
|
12,376 |
Total equity |
|
|
2,900,641 |
|
|
2,753,469 |
Total liabilities and equity |
|
$ |
3,361,057 |
|
$ |
3,534,522 |
|
||||||||||||
Consolidated Statements of Operations and Comprehensive Income |
||||||||||||
(Unaudited, in thousands except for per share data) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
152,666 |
|
$ |
162,980 |
|
$ |
605,717 |
|
$ |
603,206 |
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes depreciation, depletion and amortization) |
|
|
20,785 |
|
|
24,972 |
|
|
90,523 |
|
|
94,642 |
General and administrative |
|
|
9,741 |
|
|
8,815 |
|
|
39,761 |
|
|
34,612 |
Production taxes |
|
|
2,360 |
|
|
2,256 |
|
|
7,294 |
|
|
7,021 |
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
49,196 |
|
|
164,937 |
|
|
178,935 |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Total costs and expenses |
|
|
72,976 |
|
|
89,526 |
|
|
302,515 |
|
|
319,497 |
Operating income |
|
|
79,690 |
|
|
73,454 |
|
|
303,202 |
|
|
283,709 |
Fair value changes in equity securities |
|
|
25 |
|
|
(282) |
|
|
(147) |
|
|
(1,503) |
Interest and other income |
|
|
2,603 |
|
|
2,167 |
|
|
9,952 |
|
|
7,832 |
Interest and other expense |
|
|
(5,999) |
|
|
(6,059) |
|
|
(30,867) |
|
|
(17,170) |
Income before income taxes |
|
|
76,319 |
|
|
69,279 |
|
|
282,140 |
|
|
272,868 |
Income tax expense |
|
|
(13,356) |
|
|
(12,579) |
|
|
(42,008) |
|
|
(32,926) |
Net income and comprehensive income |
|
|
62,963 |
|
|
56,700 |
|
|
240,132 |
|
|
239,942 |
Net income and comprehensive income attributable to non-controlling interests |
|
|
(183) |
|
|
(327) |
|
|
(692) |
|
|
(960) |
Net income and comprehensive income attributable to |
|
$ |
62,780 |
|
$ |
56,373 |
|
$ |
239,440 |
|
$ |
238,982 |
Net income per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.95 |
|
$ |
0.86 |
|
$ |
3.64 |
|
$ |
3.64 |
Basic weighted average shares outstanding |
|
|
65,631,760 |
|
|
65,592,597 |
|
|
65,613,002 |
|
|
65,576,995 |
Diluted earnings per share |
|
$ |
0.95 |
|
$ |
0.86 |
|
$ |
3.63 |
|
$ |
3.63 |
Diluted weighted average shares outstanding |
|
|
65,726,890 |
|
|
65,663,227 |
|
|
65,739,110 |
|
|
65,661,748 |
Cash dividends declared per common share |
|
$ |
0.400 |
|
$ |
0.375 |
|
$ |
1.525 |
|
$ |
1.425 |
|
||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||
(Unaudited, in thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income and comprehensive income |
|
$ |
62,963 |
|
$ |
56,700 |
|
$ |
240,132 |
|
$ |
239,942 |
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
49,196 |
|
|
164,937 |
|
|
178,935 |
Non-cash employee stock compensation expense |
|
|
2,354 |
|
|
1,779 |
|
|
9,696 |
|
|
8,411 |
Fair value changes in equity securities |
|
|
(25) |
|
|
282 |
|
|
147 |
|
|
1,503 |
Deferred tax (benefit) expense |
|
|
(458) |
|
|
(2,079) |
|
|
(6,469) |
|
|
(19,836) |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Other |
|
|
187 |
|
|
245 |
|
|
779 |
|
|
979 |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Royalty receivables |
|
|
(14,157) |
|
|
(20,929) |
|
|
521 |
|
|
4,683 |
Stream inventory |
|
|
63 |
|
|
1,034 |
|
|
2,868 |
|
|
(1,049) |
Income tax receivable |
|
|
11,572 |
|
|
11,990 |
|
|
390 |
|
|
1,849 |
Prepaid expenses and other assets |
|
|
(1,002) |
|
|
(835) |
|
|
(4,369) |
|
|
(3,908) |
Accounts payable |
|
|
2,816 |
|
|
(646) |
|
|
4,756 |
|
|
211 |
Income tax payable |
|
|
(6,936) |
|
|
(5,651) |
|
|
(508) |
|
|
(3,005) |
Other liabilities |
|
|
3,621 |
|
|
5,653 |
|
|
2,912 |
|
|
4,343 |
Net cash provided by operating activities |
|
$ |
101,088 |
|
$ |
101,026 |
|
$ |
415,792 |
|
$ |
417,345 |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of stream and royalty interests |
|
|
— |
|
|
(206,326) |
|
|
(2,678) |
|
|
(922,155) |
Other |
|
|
(2) |
|
|
(45) |
|
|
(151) |
|
|
(721) |
Net cash used in investing activities |
|
$ |
(2) |
|
$ |
(206,371) |
|
$ |
(2,829) |
|
$ |
(922,876) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(75,000) |
|
|
(75,000) |
|
|
(325,000) |
|
|
(125,000) |
Borrowings from revolving credit facility |
|
|
— |
|
|
200,000 |
|
|
— |
|
|
700,000 |
Net payments from issuance of common stock |
|
|
(10) |
|
|
(9) |
|
|
(1,383) |
|
|
(1,447) |
Common stock dividends |
|
|
(24,649) |
|
|
(22,987) |
|
|
(98,567) |
|
|
(91,925) |
Other |
|
|
(161) |
|
|
(311) |
|
|
(2,432) |
|
|
(1,062) |
Net cash (used in) provided by financing activities |
|
$ |
(99,820) |
|
$ |
101,693 |
|
$ |
(427,382) |
|
$ |
480,566 |
Net increase (decrease) in cash and equivalents |
|
|
1,266 |
|
|
(3,652) |
|
|
(14,419) |
|
|
(24,965) |
Cash and equivalents at beginning of period |
|
|
102,901 |
|
|
122,238 |
|
|
118,586 |
|
|
143,551 |
Cash and equivalents at end of period |
|
$ |
104,167 |
|
$ |
118,586 |
|
$ |
104,167 |
|
$ |
118,586 |
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
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 |
||||||||||||
Adjusted EBITDA, Adjusted EBITDA margin, net debt, and net debt to TTM adjusted EBITDA: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net income and comprehensive income |
|
$ |
62,963 |
|
$ |
56,700 |
|
$ |
240,132 |
|
$ |
239,942 |
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
49,196 |
|
|
164,937 |
|
|
178,935 |
Non-cash employee stock compensation |
|
|
2,354 |
|
|
1,779 |
|
|
9,696 |
|
|
8,411 |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Fair value changes in equity securities |
|
|
(25) |
|
|
282 |
|
|
147 |
|
|
1,503 |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
Interest and other, net |
|
|
3,396 |
|
|
3,893 |
|
|
20,915 |
|
|
9,338 |
Income tax expense |
|
|
13,356 |
|
|
12,579 |
|
|
42,008 |
|
|
32,926 |
Non-controlling interests in operating income of consolidated subsidiaries |
|
|
(183) |
|
|
(327) |
|
|
(692) |
|
|
(960) |
Adjusted EBITDA |
|
$ |
121,951 |
|
$ |
128,389 |
|
$ |
479,583 |
|
$ |
474,382 |
Net income margin |
|
|
41% |
|
|
35% |
|
|
40% |
|
|
40% |
Adjusted EBITDA margin |
|
|
80% |
|
|
79% |
|
|
79% |
|
|
79% |
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
|
|
||||
(amounts in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||
Net income and comprehensive income |
|
$ |
62,963 |
|
$ |
49,499 |
|
$ |
63,600 |
|
$ |
64,071 |
Depreciation, depletion and amortization |
|
|
40,090 |
|
|
40,106 |
|
|
38,412 |
|
|
46,328 |
Non-cash employee stock compensation |
|
|
2,354 |
|
|
2,763 |
|
|
1,943 |
|
|
2,636 |
Fair value changes in equity securities |
|
|
(25) |
|
|
462 |
|
|
509 |
|
|
(799) |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
Interest and other, net |
|
|
3,396 |
|
|
4,849 |
|
|
5,758 |
|
|
6,912 |
Income tax expense |
|
|
13,356 |
|
|
10,752 |
|
|
2,029 |
|
|
15,871 |
Non-controlling interests in operating income of consolidated subsidiaries |
|
|
(183) |
|
|
(162) |
|
|
(151) |
|
|
(196) |
Adjusted EBITDA |
|
$ |
121,951 |
|
$ |
108,269 |
|
$ |
114,540 |
|
$ |
134,823 |
Net income margin |
|
|
41% |
|
|
36% |
|
|
44% |
|
|
38% |
Adjusted EBITDA margin |
|
|
80% |
|
|
78% |
|
|
80% |
|
|
79% |
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM adjusted EBITDA |
|
$ |
479,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
$ |
245,967 |
|
|
|
|
|
|
|
|
|
Debt issuance costs |
|
|
4,033 |
|
|
|
|
|
|
|
|
|
Cash and equivalents |
|
|
(104,167) |
|
|
|
|
|
|
|
|
|
Net debt |
|
$ |
145,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to TTM adjusted EBITDA |
|
|
0.30x |
|
|
|
|
|
|
|
|
|
Cash G&A: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
General and administrative expense |
|
$ |
9,741 |
|
$ |
8,815 |
|
$ |
39,761 |
|
$ |
34,612 |
Non-cash employee stock compensation |
|
|
(2,354) |
|
|
(1,779) |
|
|
(9,696) |
|
|
(8,411) |
Cash G&A |
|
$ |
7,387 |
|
$ |
7,036 |
|
$ |
30,065 |
|
$ |
26,201 |
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
|
|
||||
(amounts in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||
General and administrative expense |
|
$ |
9,741 |
|
$ |
9,927 |
|
$ |
9,093 |
|
$ |
11,000 |
Non-cash employee stock compensation |
|
|
(2,354) |
|
|
(2,763) |
|
|
(1,943) |
|
|
(2,636) |
Cash G&A |
|
$ |
7,387 |
|
$ |
7,164 |
|
$ |
7,150 |
|
$ |
8,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM cash G&A |
|
$ |
30,065 |
|
|
|
|
|
|
|
|
|
Adjusted net income and adjusted net income per share: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
(amounts in thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net income and comprehensive income attributable to |
|
$ |
62,780 |
|
$ |
56,373 |
|
$ |
239,440 |
|
$ |
238,982 |
Fair value changes in equity securities |
|
|
(25) |
|
|
282 |
|
|
147 |
|
|
1,503 |
Impairment of royalty interests |
|
|
— |
|
|
4,287 |
|
|
— |
|
|
4,287 |
Discrete tax benefits |
|
|
— |
|
|
— |
|
|
(8,462) |
|
|
(18,755) |
Great |
|
|
— |
|
|
— |
|
|
— |
|
|
2,147 |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
Tax effect of adjustments |
|
|
7 |
|
|
(1,211) |
|
|
(685) |
|
|
(2,103) |
Adjusted net income and comprehensive income attributable to |
|
$ |
62,762 |
|
|
59,731 |
|
$ |
232,880 |
|
$ |
226,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
$ |
0.95 |
|
$ |
0.86 |
|
$ |
3.63 |
|
$ |
3.63 |
Fair value changes in equity securities |
|
|
— |
|
|
— |
|
|
— |
|
|
0.02 |
Impairment of royalty interests |
|
|
— |
|
|
0.07 |
|
|
— |
|
|
0.07 |
Discrete tax benefits |
|
|
— |
|
|
— |
|
|
(0.13) |
|
|
(0.29) |
Great |
|
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
Other non-recurring adjustments |
|
|
— |
|
|
— |
|
|
0.04 |
|
|
— |
Tax effect of adjustments |
|
|
— |
|
|
(0.02) |
|
|
(0.01) |
|
|
(0.03) |
Adjusted net income attributable to |
|
$ |
0.95 |
|
$ |
0.91 |
|
$ |
3.53 |
|
$ |
3.43 |
Free cash flow: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net cash provided by operating activities |
|
$ |
101,088 |
|
$ |
101,026 |
|
$ |
415,792 |
|
$ |
417,345 |
Acquisition of stream and royalty interests |
|
|
— |
|
|
(206,326) |
|
|
(2,678) |
|
|
(922,155) |
Free cash flow |
|
$ |
101,088 |
|
$ |
(105,300) |
|
$ |
413,114 |
|
$ |
(504,810) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
$ |
(2) |
|
$ |
(206,371) |
|
$ |
(2,829) |
|
$ |
(922,876) |
Net cash (used in) provided by financing activities |
|
$ |
(99,820) |
|
$ |
101,693 |
|
$ |
(427,382) |
|
$ |
480,566 |
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.
- Operating margin is calculated by the Company as operating income for a period divided by revenue for that same period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214391256/en/
Vice President Investor Relations and Business Development
(720) 554-6995
Source: