Royal Gold Reports Strong Start to 2024 with Significant Liquidity Increase
First Quarter 2024 Highlights:
-
Solid financial results with revenue of
$148.9 million , operating cash flow of$138.3 million and earnings of$47.2 million - Revenue split: 75% gold, 13% silver, 9%copper
- Sales volume of 71,900 GEOs2
- Sustained high adjusted EBITDA margin1 of 79%
-
Repaid
$100 million of debt, reducing total debt to$150 million -
Total available liquidity increased to
$966 million -
Paid quarterly dividend of
$0.40 per share, a 7% increase over the prior year period -
Additional
Mount Milligan agreement provides near-term consideration in return for long-term support that allows for an extended mine life -
Received repayment of
$37.0 million Khoemacau loan facility
Post Quarter Events:
-
Repaid
$75 million of debt, further reducing total debt to$75 million
“Our portfolio performed well during the first quarter and we started 2024 off on a positive note,” commented
"During the quarter we also announced an additional agreement with Centerra that we expect will unlock significant long-term value from the large resource base around the
1 |
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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 |
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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
Preliminary Economic Assessment Underway to Extend Mount Milligan Mine Life Beyond 2035
On
On
Official Opening of the
On
On
Plant Expansion Construction Complete with Ramp-Up to Commence at
On
Silver stream deliveries were approximately 218,200 ounces for the first quarter compared to 362,300 ounces for the prior year quarter, and an additional 123,300 ounces of silver deliveries were deferred during the current period. As of
Barrick continues to expect its share of 2024 gold production to remain in the range of 420,000 to 490,000 ounces for 2024.
Continued Water Restrictions at Andacollo
On
Teck expects that 2024 gold production from Andacollo will range between 18,000 and 24,000 ounces.
Peñasquito Gold Production Weighted to Second Half of 2024
On
Newmont also reported that there is no change to the 2024 production guidance at Peñasquito of 250,000 ounces of gold, 34 million ounces of silver, 95,000 tonnes of lead and 245,000 tonnes of zinc.
Completion of Ownership Change of Khoemacau and Repayment of Debt Facility
On
MMG expects payable silver production in 2024 at Khoemacau to range between 1.2 to 1.4 million ounces, which is below the average life of mine production of 1.8 to 2.0 million ounces per year due to lower silver grades in the upper portion of the Zone 5 deposit and the top-down mining sequence.
Other Property Updates
Notable recent updates as reported by the operators of other select portfolio assets include:
Producing Properties
Bellevue (2% NSR royalty):
Bellevue Gold Limited (“Bellevue”) announced on
Gwalia (1.5% NSR royalty) and Ulysses (0.9% NSR royalty): On
Wharf (2% GSR royalty): On
Xavantina (25% gold stream): On
Côté Gold (1% NSR royalty): IAMGOLD Corporation ("IAMGOLD") reported achievement of the first gold pour at the Côté
Fourmile (approximate 1.6% GSR royalty): Barrick provided an update of activity at the
Great Bear (2% NSR royalty): Kinross Gold Corporation (“Kinross”) provided an update on activity at the
First Quarter 2024 Overview
In the first quarter, we recorded net income and comprehensive income of
For the first quarter, we recognized total revenue of
The decrease in our total revenue resulted primarily from lower gold production at the
Cost of sales, which excludes depreciation, depletion and amortization ("DD&A"), decreased to
DD&A decreased to
Interest and other expense decreased to
For the first quarter, we recorded income tax expense of
Net cash provided by operating activities totaled
Net cash provided by investing activities totaled
Other Corporate Updates
Total Available Liquidity Increases to Approximately
On
After the end of the first quarter, we repaid a further
Property Highlights
A breakdown of revenue for the Company’s stream and royalty portfolio can be found on Table 1 for the quarters ended
CORPORATE PROFILE
For further information, please contact: |
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First Quarter 2024 Call Information: |
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Dial-In Numbers: |
844-200-6205 ( |
Senior Vice President, Investor Relations and Business Development |
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833-950-0062 ( 646-904-5544 (International) |
(303) 573-1660 |
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Access Code: |
251350 |
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Note: Management’s conference call reviewing the first quarter 2024 results will be held on Thursday,
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Webcast URL: |
www.royalgold.com under Investors, Events & Presentations |
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, other adverse government or court actions, 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
Certain information in this press release concerning the Khoemacau
TABLE 1 |
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Revenue by Stream and Royalty Interests for First Quarter 2024 and 2023 |
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(In thousands) |
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Three Months Ended
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Stream/Royalty |
Metal(s) |
|
Current Stream/Royalty Interest1 |
|
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2024 |
|
|
2023 |
|
Stream: |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Gold, copper |
|
35% of payable gold and 18.75% of payable copper |
|
$ |
34,995 |
|
|
$ |
46,656 |
|
Gold, silver |
|
6.5% of gold produced and 60% of silver produced |
|
|
9,709 |
|
|
|
10,325 |
|
|
|
|
|
|
|
|
|||
|
Gold, silver |
|
7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver |
|
$ |
17,760 |
|
|
$ |
22,358 |
Andacollo |
Gold |
|
100% of payable gold |
|
|
11,689 |
|
|
|
12,934 |
Xavantina |
Gold |
|
25% of gold produced |
|
|
9,274 |
|
|
|
5,179 |
|
|
|
|
|
|
|
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Khoemacau |
Silver |
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100% of payable silver |
|
$ |
7,758 |
|
|
$ |
9,153 |
Wassa |
Gold |
|
10.5% of payable gold |
|
|
11,343 |
|
|
|
7,353 |
Bogoso and Prestea |
Gold |
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5.5% of payable gold |
|
|
— |
|
|
|
1,032 |
Total stream revenue |
|
|
|
|
$ |
102,528 |
|
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$ |
114,990 |
Royalty: |
|
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|
|
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|||
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|
|
|
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|
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Voisey's Bay |
Copper, nickel, cobalt |
|
2.7% NVR |
|
$ |
1,139 |
|
|
$ |
1,497 |
Red Chris |
Gold, copper |
|
1.0% NSR |
|
|
2,617 |
|
|
|
3,170 |
|
Gold |
|
2.0% NSR |
|
|
808 |
|
|
|
548 |
Canadian |
Gold |
|
1.0%-1.5% sliding-scale NSR |
|
|
(29 |
) |
|
|
740 |
Williams |
Gold |
|
0.97% NSR |
|
|
351 |
|
|
|
344 |
Other- |
Various |
|
Various |
|
|
245 |
|
|
|
292 |
|
|
|
|
|
|
|
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Cortez |
|
|
|
|
|
|
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Gold |
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Approx. 9.4% GSR Equivalent |
|
$ |
13,365 |
|
|
$ |
23,087 |
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Gold |
|
Approx. 0.45%-2.2% GSR Equivalent |
|
|
4,411 |
|
|
|
3,206 |
Robinson |
Gold, copper |
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3.0% NSR |
|
|
1,783 |
|
|
|
2,718 |
Marigold |
Gold |
|
2.0% NSR |
|
|
1,406 |
|
|
|
1,171 |
Leeville |
Gold |
|
1.8% NSR |
|
|
1,485 |
|
|
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958 |
Wharf |
Gold |
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0.0%-2.0% sliding-scale GSR |
|
|
821 |
|
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581 |
Goldstrike |
Gold |
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0.9% NSR |
|
|
496 |
|
|
|
497 |
Other- |
Various |
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Various |
|
|
312 |
|
|
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1,363 |
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Peñasquito |
Gold, silver, lead, zinc |
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2.0% NSR |
|
$ |
9,229 |
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$ |
7,433 |
Dolores |
Gold, silver |
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3.25% NSR (gold), 2.0% NSR (silver) |
|
|
1,539 |
|
|
|
1,861 |
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Gold |
|
3.0% NSR |
|
|
1,310 |
|
|
|
1,201 |
Other- |
Various |
|
Various |
|
|
111 |
|
|
|
338 |
|
|
|
|
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|
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South Laverton |
Gold |
|
1.5% NSR, 4.0% NPI |
|
$ |
1,899 |
|
|
$ |
1,533 |
King of the Hills |
Gold |
|
1.5% NSR |
|
|
1,190 |
|
|
|
850 |
Gwalia |
Gold |
|
1.5% NSR |
|
|
771 |
|
|
|
798 |
Bellevue |
Gold |
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2.0% NSR |
|
|
578 |
|
|
|
— |
Meekatharra |
Gold |
|
0.45% or 1.5% NSR and |
|
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33 |
|
|
|
536 |
Other- |
Various |
|
Various |
|
|
504 |
|
|
|
383 |
|
|
|
|
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|
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Copper |
|
1.5% NSR (copper) |
|
$ |
- |
|
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$ |
297 |
Total royalty revenue |
|
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|
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$ |
46,374 |
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$ |
55,402 |
Total revenue |
|
|
|
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$ |
148,902 |
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$ |
170,392 |
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. |
TABLE 2 |
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Stream Metal and Royalty Sales for |
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Reported Production For The Quarter Ended2 |
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Property |
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Operator |
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Current
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Metal(s) |
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Stream: |
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|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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Centerra |
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35% of payable gold |
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Gold |
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12,500 |
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oz |
|
14,000 |
|
oz |
|
11,300 |
|
oz |
|
17,500 |
|
oz |
|
15,200 |
|
oz |
|
|
|
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18.75% of payable copper |
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Copper |
|
2.5 |
|
Mlb |
|
2.4 |
|
Mlb |
|
3.2 |
|
Mlb |
|
1.7 |
|
Mlb |
|
4.5 |
|
Mlb |
|
|
Barrick (60%) |
|
7.5% of Barrick's interest in payable gold |
|
Gold |
|
6,200 |
|
oz |
|
5,000 |
|
oz |
|
6,800 |
|
oz |
|
7,400 |
|
oz |
|
7,900 |
|
oz |
|
|
|
|
75% of Barrick's interest in payable silver3 |
|
Silver |
|
223,000 |
|
oz |
|
171,100 |
|
oz |
|
150,700 |
|
oz |
|
362,200 |
|
oz |
|
337,900 |
|
oz |
Andacollo |
|
Teck |
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100% of payable gold |
|
Gold |
|
5,700 |
|
oz |
|
7,000 |
|
oz |
|
7,500 |
|
oz |
|
4,000 |
|
oz |
|
7,000 |
|
oz |
Khoemacau |
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MMG |
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100% of payable silver |
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Silver |
|
332,000 |
|
oz |
|
323,800 |
|
oz |
|
386,100 |
|
oz |
|
373,000 |
|
oz |
|
404,100 |
|
oz |
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cortez |
|
|
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9.4% GSR on |
|
Gold |
|
68,700 |
|
oz |
|
111,900 |
|
oz |
|
98,800 |
|
oz |
|
68,100 |
|
oz |
|
117,200 |
|
oz |
|
|
|
|
0.45%-2.2% GSR on |
|
Gold |
|
124,900 |
|
oz |
|
156,600 |
|
oz |
|
120,000 |
|
oz |
|
111,500 |
|
oz |
|
106,600 |
|
oz |
Peñasquito |
|
Newmont Corporation |
|
2.0% NSR |
|
Gold |
|
44,000 |
|
oz |
|
25,900 |
|
oz |
|
- |
|
oz |
|
48,100 |
|
oz |
|
55,600 |
|
oz |
|
|
|
|
|
|
Silver |
|
9.8 |
|
Moz |
|
4.6 |
|
Moz |
|
- |
|
Moz |
|
6.0 |
|
Moz |
|
6.1 |
|
Moz |
|
|
|
|
|
|
Lead |
|
64.9 |
|
Mlb |
|
34.9 |
|
Mlb |
|
- |
|
Mlb |
|
35.6 |
|
Mlb |
|
36.4 |
|
Mlb |
|
|
|
|
|
|
Zinc |
|
134.8 |
|
Mlb |
|
33.5 |
|
Mlb |
|
- |
|
Mlb |
|
89.7 |
|
Mlb |
|
99.2 |
|
Mlb |
1 |
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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 |
|
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. |
3 |
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The |
4 |
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Approximate blended royalty rates as described in the press release “Royal Gold Announces Acquisition of Additional Royalty Interests on the |
TABLE 3 2024 Sales Volume Guidance and Year to Date Sales Volume Achieved |
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2024 Guidance |
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Metal Sales by Segment for the Three Months Ended |
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Stream Sales1 |
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Royalty Sales2 |
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Total Sales |
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
(oz) |
|
215,000 - 230,000 |
|
38,100 |
|
16,182 |
|
54,282 |
Silver |
|
(M oz) |
|
3.2-3.8 |
|
0.6 |
|
0.2 |
|
0.8 |
Copper |
|
(M lb) |
|
14.0 - 16.0 |
|
2.5 |
|
0.9 |
|
3.4 |
Other Metals |
|
(M) |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
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1. Stream Sales represents physical metal sold. |
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2. Royalty Sales represents royalty revenue divided by the average metal price for the period. |
TABLE 4 Stream Segment Summary |
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Three Months Ended
|
|
Three Months Ended
|
|
|
As of
|
|
As of
|
||||
Gold Stream |
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
Inventory (oz) |
|
Inventory (oz) |
|
|
|
15,200 |
|
12,500 |
|
13,900 |
|
15,200 |
|
|
6,700 |
|
4,000 |
|
|
|
5,800 |
|
6,200 |
|
7,400 |
|
7,900 |
|
|
5,800 |
|
6,200 |
Andacollo |
|
|
4,900 |
|
5,700 |
|
5,200 |
|
7,000 |
|
|
— |
|
800 |
Other |
|
|
13,800 |
|
13,700 |
|
13,200 |
|
12,000 |
|
|
4,300 |
|
4,200 |
Total |
|
|
39,700 |
|
38,100 |
|
39,700 |
|
42,100 |
|
|
16,800 |
|
15,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
As of
|
|
As of
|
||||
|
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
Inventory (oz) |
|
Inventory (oz) |
Khoemacau |
|
|
298,500 |
|
332,000 |
|
427,500 |
|
404,100 |
|
|
101,900 |
|
135,300 |
|
|
|
218,200 |
|
223,000 |
|
362,300 |
|
337,900 |
|
|
218,200 |
|
223,000 |
Other |
|
|
84,600 |
|
80,000 |
|
69,400 |
|
66,200 |
|
|
29,300 |
|
24,800 |
Total |
|
|
601,300 |
|
635,000 |
|
859,200 |
|
808,200 |
|
|
349,400 |
|
383,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
As of
|
|
As of
|
||||
Copper Stream |
|
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
|
Inventory (Mlb) |
|
Inventory (Mlb) |
|
|
|
3.4 |
|
2.5 |
|
3.6 |
|
4.5 |
|
|
0.9 |
|
— |
|
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Consolidated Balance Sheets |
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(Unaudited, in thousands except share data) |
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ASSETS |
|
|
|
|
|
||
Cash and equivalents |
|
|
$ |
137,950 |
|
$ |
104,167 |
Royalty receivables |
|
|
|
38,757 |
|
|
48,884 |
Income tax receivable |
|
|
|
3,109 |
|
|
2,676 |
Stream inventory |
|
|
|
11,417 |
|
|
9,788 |
Prepaid expenses and other |
|
|
|
1,815 |
|
|
1,911 |
Total current assets |
|
|
|
193,048 |
|
|
167,426 |
Stream and royalty interests, net |
|
|
|
3,038,495 |
|
|
3,075,574 |
Other assets |
|
|
|
81,765 |
|
|
118,057 |
Total assets |
|
|
$ |
3,313,308 |
|
$ |
3,361,057 |
LIABILITIES |
|
|
|
|
|
||
Accounts payable |
|
|
$ |
11,599 |
|
$ |
11,441 |
Dividends payable |
|
|
|
26,311 |
|
|
26,292 |
Income tax payable |
|
|
|
22,022 |
|
|
15,557 |
Other current liabilities |
|
|
|
17,213 |
|
|
19,132 |
Total current liabilities |
|
|
|
77,145 |
|
|
72,422 |
Debt |
|
|
|
146,187 |
|
|
245,967 |
Deferred tax liabilities |
|
|
|
133,934 |
|
|
134,299 |
|
|
|
|
25,000 |
|
|
— |
Other liabilities |
|
|
|
7,676 |
|
|
7,728 |
Total liabilities |
|
|
|
389,942 |
|
|
460,416 |
Commitments and contingencies |
|
|
|
|
|
||
EQUITY |
|
|
|
|
|
||
Preferred stock, |
|
|
|
— |
|
|
— |
Common stock, |
|
|
|
656 |
|
|
656 |
Additional paid-in capital |
|
|
|
2,223,021 |
|
|
2,221,039 |
Accumulated earnings |
|
|
|
687,377 |
|
|
666,522 |
Total |
|
|
|
2,911,054 |
|
|
2,888,217 |
Non-controlling interests |
|
|
|
12,312 |
|
|
12,424 |
Total equity |
|
|
|
2,923,366 |
|
|
2,900,641 |
Total liabilities and equity |
|
|
$ |
3,313,308 |
|
$ |
3,361,057 |
|
|||||||||
Consolidated Statements of Operations and Comprehensive Income |
|||||||||
(Unaudited, in thousands except for per share data) |
|||||||||
|
|
Three Months Ended |
|||||||
|
|
|
|
|
|
||||
Revenue |
|
|
$ |
148,902 |
|
|
$ |
170,392 |
|
Costs and expenses |
|
|
|
|
|
||||
Cost of sales (excludes depreciation, depletion and amortization) |
|
|
|
21,751 |
|
|
|
25,020 |
|
General and administrative |
|
|
|
11,412 |
|
|
|
11,000 |
|
Production taxes |
|
|
|
1,449 |
|
|
|
1,989 |
|
Depreciation, depletion and amortization |
|
|
|
38,765 |
|
|
|
46,328 |
|
Total costs and expenses |
|
|
|
73,377 |
|
|
|
84,338 |
|
Operating income |
|
|
|
75,525 |
|
|
|
86,055 |
|
Fair value changes in equity securities |
|
|
|
447 |
|
|
|
799 |
|
Interest and other income |
|
|
|
2,977 |
|
|
|
2,263 |
|
Interest and other expense |
|
|
|
(4,607 |
) |
|
|
(9,175 |
) |
Income before income taxes |
|
|
|
74,342 |
|
|
|
79,942 |
|
Income tax expense |
|
|
|
(27,033 |
) |
|
|
(15,871 |
) |
Net income and comprehensive income |
|
|
|
47,309 |
|
|
|
64,071 |
|
Net income and comprehensive income attributable to non-controlling interests |
|
|
|
(143 |
) |
|
|
(196 |
) |
Net income and comprehensive income attributable to |
|
|
$ |
47,166 |
|
|
$ |
63,875 |
|
Net income per share attributable to |
|
|
|
|
|
||||
Basic earnings per share |
|
|
$ |
0.72 |
|
|
$ |
0.97 |
|
Basic weighted average shares outstanding |
|
|
|
65,637,428 |
|
|
|
65,594,977 |
|
Diluted earnings per share |
|
|
$ |
0.72 |
|
|
$ |
0.97 |
|
Diluted weighted average shares outstanding |
|
|
|
65,740,260 |
|
|
|
65,709,095 |
|
Cash dividends declared per common share |
|
|
$ |
0.400 |
|
|
$ |
0.375 |
|
|
|||||||||
Consolidated Statements of Cash Flows |
|||||||||
(Unaudited, in thousands) |
|||||||||
|
|
|
Year Ended |
||||||
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
|
||||
Net income and comprehensive income |
|
|
$ |
47,309 |
|
|
$ |
64,071 |
|
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: |
|
|
|
|
|
||||
Depreciation, depletion and amortization |
|
|
|
38,765 |
|
|
|
46,328 |
|
Non-cash employee stock compensation expense |
|
|
|
2,988 |
|
|
|
2,636 |
|
Fair value changes in equity securities |
|
|
|
(447 |
) |
|
|
(799 |
) |
Deferred tax expense |
|
|
|
648 |
|
|
|
1,092 |
|
Other |
|
|
|
222 |
|
|
|
214 |
|
Changes in assets and liabilities: |
|
|
|
|
|
||||
Royalty receivables |
|
|
|
10,127 |
|
|
|
2,471 |
|
Stream inventory |
|
|
|
(1,629 |
) |
|
|
1,056 |
|
Income tax receivable |
|
|
|
(433 |
) |
|
|
1,342 |
|
Prepaid expenses and other assets |
|
|
|
10,763 |
|
|
|
(914 |
) |
Accounts payable |
|
|
|
158 |
|
|
|
1,166 |
|
Income tax payable |
|
|
|
6,465 |
|
|
|
(7,840 |
) |
|
|
|
|
25,000 |
|
|
|
— |
|
Other liabilities |
|
|
|
(1,652 |
) |
|
|
(2,168 |
) |
Net cash provided by operating activities |
|
|
$ |
138,284 |
|
|
$ |
108,655 |
|
Cash flows from investing activities: |
|
|
|
|
|
||||
Acquisition of stream and royalty interests |
|
|
|
(1,104 |
) |
|
|
— |
|
Proceeds from Khoemacau debt facility |
|
|
|
25,000 |
|
|
|
— |
|
Other |
|
|
|
(305 |
) |
|
|
(197 |
) |
Net cash provided by (used in) investing activities |
|
|
$ |
23,591 |
|
|
$ |
(197 |
) |
Cash flows from financing activities: |
|
|
|
|
|
||||
Repayment of debt |
|
|
|
(100,000 |
) |
|
|
(75,000 |
) |
Net payments from issuance of common stock |
|
|
|
(1,369 |
) |
|
|
(397 |
) |
Common stock dividends |
|
|
|
(26,292 |
) |
|
|
(24,629 |
) |
Other |
|
|
|
(431 |
) |
|
|
(202 |
) |
Net cash used in financing activities |
|
|
$ |
(128,092 |
) |
|
$ |
(100,228 |
) |
Net increase in cash and equivalents |
|
|
|
33,783 |
|
|
|
8,230 |
|
Cash and equivalents at beginning of period |
|
|
|
104,167 |
|
|
|
118,586 |
|
Cash and equivalents at end of period |
|
|
$ |
137,950 |
|
|
$ |
126,816 |
|
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
|
||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
Net income and comprehensive income |
|
47,309 |
|
|
$ |
64,071 |
|
Depreciation, depletion and amortization |
|
38,765 |
|
|
|
46,328 |
|
Non-cash employee stock compensation |
|
2,988 |
|
|
|
2,636 |
|
Fair value changes in equity securities |
|
(447 |
) |
|
|
(799 |
) |
Interest and other, net |
|
1,630 |
|
|
|
6,912 |
|
Income tax expense |
|
27,033 |
|
|
|
15,871 |
|
Non-controlling interests in operating income of consolidated subsidiaries |
|
(143 |
) |
|
|
(196 |
) |
Adjusted EBITDA |
$ |
117,135 |
|
|
$ |
134,823 |
|
Net income margin |
|
32 |
% |
|
|
38 |
% |
Adjusted EBITDA margin |
|
79 |
% |
|
|
79 |
% |
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
Net income and comprehensive income |
$ |
47,309 |
|
|
$ |
62,963 |
|
|
$ |
49,499 |
|
|
$ |
63,600 |
|
Depreciation, depletion and amortization |
|
38,765 |
|
|
|
40,090 |
|
|
|
40,106 |
|
|
|
38,412 |
|
Non-cash employee stock compensation |
|
2,988 |
|
|
|
2,354 |
|
|
|
2,763 |
|
|
|
1,943 |
|
Fair value changes in equity securities |
|
(447 |
) |
|
|
(25 |
) |
|
|
462 |
|
|
|
509 |
|
Other non-recurring adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,440 |
|
Interest and other, net |
|
1,630 |
|
|
|
3,396 |
|
|
|
4,849 |
|
|
|
5,758 |
|
Income tax expense |
|
27,033 |
|
|
|
13,356 |
|
|
|
10,752 |
|
|
|
2,029 |
|
Non-controlling interests in operating income of consolidated subsidiaries |
|
(143 |
) |
|
|
(183 |
) |
|
|
(162 |
) |
|
|
(151 |
) |
Adjusted EBITDA |
$ |
117,135 |
|
|
$ |
121,951 |
|
|
$ |
108,269 |
|
|
$ |
114,540 |
|
Net income margin |
|
32 |
% |
|
|
41 |
% |
|
|
36 |
% |
|
|
44 |
% |
Adjusted EBITDA margin |
|
79 |
% |
|
|
80 |
% |
|
|
78 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
|
||||||||
TTM adjusted EBITDA |
$ |
461,895 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Debt |
$ |
146,187 |
|
|
|
|
|
|
|
||||||
Debt issuance costs |
|
3,813 |
|
|
|
|
|
|
|
||||||
Cash and equivalents |
|
(137,950 |
) |
|
|
|
|
|
|
||||||
Net debt |
$ |
12,050 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net debt to TTM adjusted EBITDA |
0.03x |
|
|
|
|
|
|
Cash G&A: |
|||||||
|
Three Months Ended
|
||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
General and administrative expense |
$ |
11,412 |
|
|
$ |
11,000 |
|
Non-cash employee stock compensation |
|
(2,988 |
) |
|
|
(2,636 |
) |
Cash G&A |
$ |
8,424 |
|
|
$ |
8,364 |
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
General and administrative expense |
$ |
11,412 |
|
|
$ |
9,741 |
|
|
$ |
9,927 |
|
|
$ |
9,093 |
|
Non-cash employee stock compensation |
|
(2,988 |
) |
|
|
(2,354 |
) |
|
|
(2,763 |
) |
|
|
(1,943 |
) |
Cash G&A |
$ |
8,424 |
|
|
$ |
7,387 |
|
|
$ |
7,164 |
|
|
$ |
7,150 |
|
|
|
|
|
|
|
|
|
||||||||
TTM cash G&A |
$ |
30,125 |
|
|
|
|
|
|
|
Adjusted net income and adjusted net income per share: |
|||||||
|
Three Months Ended
|
||||||
(amounts in thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
Net income and comprehensive income attributable to |
$ |
47,166 |
|
|
$ |
63,875 |
|
Fair value changes in equity securities |
|
(447 |
) |
|
|
(799 |
) |
Discrete tax expense related to Mount Milligan Cost Support Agreement |
|
12,978 |
|
|
|
— |
|
Tax effect of adjustments |
|
118 |
|
|
|
212 |
|
Adjusted net income and comprehensive income attributable to |
$ |
59,815 |
|
|
|
63,288 |
|
|
|
|
|
||||
Net income attributable to |
$ |
0.72 |
|
|
$ |
0.97 |
|
Fair value changes in equity securities |
|
(0.01 |
) |
|
|
(0.01 |
) |
Discrete tax expense related to Mount Milligan Cost Support Agreement |
|
0.20 |
|
|
|
— |
|
Tax effect of adjustments |
|
— |
|
|
|
— |
|
Adjusted net income attributable to |
$ |
0.91 |
|
|
$ |
0.96 |
|
Free cash flow: |
|||||||
|
Three Months Ended
|
||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
138,284 |
|
|
$ |
108,655 |
|
Acquisition of stream and royalty interests |
|
(1,104 |
) |
|
|
— |
|
Free cash flow |
$ |
137,180 |
|
|
$ |
108,655 |
|
|
|
|
|
||||
Net cash provided by (used in) investing activities |
$ |
23,591 |
|
|
$ |
(197 |
) |
Net cash used in financing activities |
$ |
(128,092 |
) |
|
$ |
(100,228 |
) |
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/20240508954271/en/
Senior Vice President, Investor Relations and Business Development
(303) 573-1660
Source: