Royal Gold Reports Strong Second Quarter Financial Results and a Return to a Net Cash Position
Second Quarter 2024 Highlights:
-
Strong financial results with revenue of
$174.1 million , operating cash flow of$113.5 million and earnings of$81.2 million ; after minor adjustments, adjusted earnings were a quarterly record
- Revenue split: 74% gold, 13% silver, 10%copper
- Sales volume of 74,500 GEOs2
- Sustained high adjusted EBITDA margin1 of 81%
-
Repaid
$100 million of debt, reducing total debt to$50 million
-
Total availableliquidity was approximately
$1 billion , and balance sheet returned to net cash position
-
Paid quarterly dividend of
$0.40 per share, a 7% increase over the prior year period
-
Acquired additional royalties on the
Back River Project for cash consideration of$51 million
Post Quarter Events:
-
Repaid further
$25 million of debt, reducing total debt to$25 million
“The second quarter of 2024 was an excellent quarter for
"We also reinvested in the business and acquired additional royalty interests at the
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
Work Continues on Site-Wide Optimization and Preliminary Economic Assessment at
On
Centerra also reported that work is progressing on a preliminary economic assessment ("PEA") to evaluate the substantial mineral resources at the
Water Restrictions Improving at Andacollo
On
Update on Expansion Project Provided at Khoemacau
On
In addition, MMG reported that it is dedicated to completing the construction of an expansion project by 2028, which aims to increase production capacity to 130,000 tonnes of copper, and is expected to reach full capacity by 2029. Any expanded production from the Zone 5 and Mango NE deposits falls within the area of interest covered by
Shift to Optimization of Recovery at Pueblo Viejo
On
Higher Gold Grade Expected from the Peñasco Pit at Peñasquito
On
Portfolio Additions
Royal Gold Acquires Additional Royalties on the
On
-
The Hill Royalty, which is a 0.7% net smelter return ("NSR") royalty that declines by 50% after
C$5 million in royalty revenue is received, and
- The KM Royalty, which is a 26.25% interest in a 5% gross smelter return ("GSR") royalty that is payable after approximately 780,000 ounces have been produced from Back River.
The royalty coverage includes all reserves, resources and potential extensions thereof on the
Payments for the Hill Royalty are deductible from the KM Royalty, and as a result,
Back River is located in
Back River is an attractive gold development project with significant resource potential. The project has a total gold resource of 9.2 million ounces, including 3.6 million ounces in Proven and Probable Reserves. Construction of the
Prior to these acquisitions,
-
0.7% NSR royalty rate until the receipt of
C$5 million of royalty revenue, declining to 0.35% thereafter, on all gold produced from startup through to the cumulative production of 400,000 ounces;
- 2.5% GSR royalty rate on all gold produced after the cumulative production of 400,000 ounces up to a cumulative total of approximately 780,000 ounces; and
- 3.3% GSR royalty rate on all production above cumulative production of approximately 780,000 ounces.
Based on the current mine plan, the two thresholds are expected to be reached in 2026 and 2028, respectively, although royalty rates and production thresholds are approximate due to assumptions related to the gold price and the timing and applicability of certain deductions and adjustments.
Other Property Updates
Notable recent updates as reported by the operators of other select portfolio assets include:
Producing Properties
Bellevue (2% NSR royalty):
On
Celtic/Wonder North (1.5% NSR royalty): Northern Star Resources Limited ("
Côté Gold (1% NSR royalty): IAMGOLD Corporation ("IAMGOLD") reported on
Great Bear (2% NSR royalty): On
Second Quarter 2024 Overview
In the second quarter, we recorded net income and comprehensive income of
For the second quarter, we recognized total revenue of
The increase in our total revenue resulted primarily from higher average gold, silver and copper prices compared to the prior period. Higher copper sales at
Cost of sales, which excludes depreciation, depletion and amortization ("DD&A"), increased to
General and administrative costs increased to
DD&A decreased to
Interest and other expense decreased to
For the second quarter, we recorded income tax expense of
Net cash provided by operating activities totaled
Net cash used in investing activities totaled
Net cash used in financing activities totaled
Other Corporate Updates
Balance Sheet Returned to Net Cash Position with Approximately
During the second quarter, we repaid
After the end of the second quarter, on
Property Highlights
A breakdown of revenue for the Company’s stream and royalty portfolio can be found on Table 1 for the three and six month periods ended
CORPORATE PROFILE
Second Quarter 2024 Call Information: |
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Dial-In |
833-470-1428 ( |
Numbers: |
833-950-0062 ( 929-526-1599 (International) |
Access Code: |
862469 |
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Webcast URL: |
www.royalgold.com under Investors, Events & Presentations |
Note: Management’s conference call reviewing the second quarter 2024 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, 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
TABLE 1 |
|||||||||||||||||
Revenue by Stream and Royalty Interests for the Three and Six Months ended (In thousands) |
|||||||||||||||||
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
Stream/Royalty |
Metal(s) |
|
Current Stream/Royalty Interest1 |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Stream: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gold, copper |
|
35% of payable gold and 18.75% of payable copper |
|
$ |
52,139 |
|
$ |
41,208 |
|
|
$ |
87,134 |
|
$ |
87,863 |
|
|
Gold, silver |
|
6.5% of gold produced and 60% of silver produced |
|
|
10,522 |
|
|
9,640 |
|
|
|
20,231 |
|
|
19,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pueblo Viejo |
Gold, silver |
|
7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver |
|
$ |
19,801 |
|
$ |
23,540 |
|
|
$ |
37,562 |
|
$ |
45,898 |
|
Andacollo |
Gold |
|
100% of payable gold |
|
|
10,608 |
|
|
7,823 |
|
|
|
22,297 |
|
|
20,757 |
|
Xavantina |
Gold |
|
25% of gold produced |
|
|
9,486 |
|
|
5,040 |
|
|
|
18,760 |
|
|
10,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Khoemacau |
Silver |
|
100% of payable silver |
|
$ |
8,394 |
|
$ |
8,881 |
|
|
$ |
16,152 |
|
$ |
18,035 |
|
Wassa |
Gold |
|
10.5% of payable gold |
|
|
12,002 |
|
|
8,928 |
|
|
|
23,345 |
|
|
16,280 |
|
Bogoso and Prestea |
Gold |
|
5.5% of payable gold |
|
|
— |
|
|
955 |
|
|
|
— |
|
|
1,988 |
|
Total stream revenue |
|
|
|
|
$ |
122,952 |
|
$ |
106,015 |
|
|
$ |
225,481 |
|
$ |
221,005 |
|
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Voisey's Bay |
Copper, nickel, cobalt |
|
2.7% NVR |
|
$ |
1,315 |
|
$ |
553 |
|
|
$ |
2,453 |
|
$ |
2,050 |
|
Red Chris |
Gold, copper |
|
1.0% NSR |
|
|
— |
|
|
— |
|
|
|
2,617 |
|
|
3,170 |
|
|
Gold |
|
2.0% NSR |
|
|
712 |
|
|
694 |
|
|
|
1,520 |
|
|
1,241 |
|
Canadian |
Gold |
|
1.0%-1.5% sliding-scale NSR |
|
|
110 |
|
|
292 |
|
|
|
80 |
|
|
1,032 |
|
Williams |
Gold |
|
0.97% NSR |
|
|
488 |
|
|
(2,104 |
) |
|
|
839 |
|
|
(1,760 |
) |
Other- |
Various |
|
Various |
|
|
410 |
|
|
469 |
|
|
|
657 |
|
|
762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cortez |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gold |
|
Approx. 9.4% GSR Equivalent |
|
$ |
11,214 |
|
$ |
14,305 |
|
|
$ |
24,579 |
|
$ |
37,393 |
|
|
Gold |
|
Approx. 0.45%-2.2% GSR Equivalent |
|
$ |
4,548 |
|
|
3,520 |
|
|
|
8,959 |
|
|
6,726 |
|
Robinson |
Gold, copper |
|
3.0% NSR |
|
|
3,764 |
|
|
1,439 |
|
|
|
5,547 |
|
|
4,157 |
|
Marigold |
Gold |
|
2.0% NSR |
|
|
1,303 |
|
|
607 |
|
|
|
2,709 |
|
|
1,778 |
|
Leeville |
Gold |
|
1.8% NSR |
|
|
2,137 |
|
|
1,195 |
|
|
|
3,622 |
|
|
2,153 |
|
Wharf |
Gold |
|
0.0%-2.0% sliding-scale GSR |
|
|
370 |
|
|
1,011 |
|
|
|
1,191 |
|
|
1,592 |
|
Goldstrike |
Gold |
|
0.9% NSR |
|
|
475 |
|
|
135 |
|
|
|
971 |
|
|
632 |
|
Other- |
Various |
|
Various |
|
|
1,462 |
|
|
1,052 |
|
|
|
1,774 |
|
|
2,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Peñasquito |
Gold, silver, lead, zinc |
|
2.0% NSR |
|
$ |
11,279 |
|
$ |
6,105 |
|
|
$ |
20,508 |
|
$ |
13,538 |
|
Dolores |
Gold, silver |
|
3.25% NSR (gold), 2.0% NSR (silver) |
|
|
1,609 |
|
|
2,050 |
|
|
|
3,148 |
|
|
3,911 |
|
|
Gold |
|
3.0% NSR |
|
|
2,077 |
|
|
1,294 |
|
|
|
3,387 |
|
|
2,495 |
|
|
Gold, silver |
|
2.75% NSR |
|
|
739 |
|
|
— |
|
|
|
739 |
|
|
— |
|
Other- |
Various |
|
Various |
|
|
84 |
|
|
118 |
|
|
|
196 |
|
|
457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
South Laverton |
Gold |
|
1.5% NSR, 4.0% NPI |
|
$ |
2,253 |
|
$ |
2,097 |
|
|
$ |
4,152 |
|
$ |
3,630 |
|
King of the Hills |
Gold |
|
1.5% NSR |
|
|
1,494 |
|
|
1,095 |
|
|
|
2,685 |
|
|
1,945 |
|
Gwalia |
Gold |
|
1.5% NSR |
|
|
1,042 |
|
|
1,051 |
|
|
|
1,813 |
|
|
1,849 |
|
Bellevue |
Gold |
|
2.0% NSR |
|
|
1,210 |
|
|
— |
|
|
|
1,788 |
|
|
— |
|
Meekatharra |
Gold |
|
0.45% or 1.5% NSR and |
|
|
330 |
|
|
535 |
|
|
|
363 |
|
|
1,071 |
|
Celtic/Wonder North |
Gold, silver |
|
1.5% NSR |
|
|
179 |
|
|
— |
|
|
|
179 |
|
|
— |
|
Other- |
Various |
|
Various |
|
|
539 |
|
|
303 |
|
|
|
1,042 |
|
|
685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Las Cruces |
Copper |
|
1.5% NSR (copper) |
|
$ |
— |
|
$ |
211 |
|
|
$ |
— |
|
$ |
508 |
|
Total royalty revenue |
|
|
|
|
$ |
51,144 |
|
$ |
38,027 |
|
|
$ |
97,518 |
|
$ |
93,429 |
|
Total revenue |
|
|
|
|
$ |
174,096 |
|
$ |
144,042 |
|
|
$ |
322,999 |
|
$ |
314,434 |
|
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 |
||||||||||||||||||||||||||
Stream Metal and Royalty Sales for |
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|
|
|
|
|
|
|
|
Reported Production For The Quarter Ended2 |
||||||||||||||||||
Property |
|
Operator |
|
Current Stream/ Royalty Interest1 |
|
Metal(s) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stream: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centerra |
|
35% of payable gold |
|
Gold |
|
16,100 |
|
oz |
|
12,500 |
|
oz |
|
14,000 |
|
oz |
|
11,300 |
|
oz |
|
17,500 |
|
oz |
|
|
|
|
18.75% of payable copper |
|
Copper |
|
3.4 |
|
Mlb |
|
2.5 |
|
Mlb |
|
2.4 |
|
Mlb |
|
3.2 |
|
Mlb |
|
1.7 |
|
Mlb |
Pueblo Viejo |
|
Barrick (60%) |
|
7.5% of Barrick's interest in payable gold |
|
Gold |
|
5,800 |
|
oz |
|
6,200 |
|
oz |
|
5,000 |
|
oz |
|
6,800 |
|
oz |
|
7,400 |
|
oz |
|
|
|
|
75% of Barrick's interest in payable silver3 |
|
Silver |
|
218,200 |
|
oz |
|
223,000 |
|
oz |
|
171,100 |
|
oz |
|
150,700 |
|
oz |
|
362,200 |
|
oz |
Andacollo |
|
Teck |
|
100% of payable gold |
|
Gold |
|
4,500 |
|
oz |
|
5,700 |
|
oz |
|
7,000 |
|
oz |
|
7,500 |
|
oz |
|
4,000 |
|
oz |
Khoemacau |
|
MMG |
|
100% of payable silver |
|
Silver |
|
295,500 |
|
oz |
|
332,000 |
|
oz |
|
323,800 |
|
oz |
|
386,100 |
|
oz |
|
373,000 |
|
oz |
Royalty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cortez |
|
|
|
9.4% GSR on |
|
Gold |
|
42,600 |
|
oz |
|
68,700 |
|
oz |
|
111,900 |
|
oz |
|
98,800 |
|
oz |
|
68,100 |
|
oz |
|
|
|
|
0.45%-2.2% GSR on |
|
Gold |
|
119,800 |
|
oz |
|
124,900 |
|
oz |
|
156,600 |
|
oz |
|
120,000 |
|
oz |
|
111,500 |
|
oz |
Peñasquito |
|
Newmont Corporation |
|
2.0% NSR |
|
Gold |
|
64,200 |
|
oz |
|
44,000 |
|
oz |
|
25,900 |
|
oz |
|
- |
|
oz |
|
48,100 |
|
oz |
|
|
|
|
|
|
Silver |
|
8.0 |
|
Moz |
|
9.8 |
|
Moz |
|
4.6 |
|
Moz |
|
- |
|
Moz |
|
6.0 |
|
Moz |
|
|
|
|
|
|
Lead |
|
42.9 |
|
Mlb |
|
64.9 |
|
Mlb |
|
34.9 |
|
Mlb |
|
- |
|
Mlb |
|
35.6 |
|
Mlb |
|
|
|
|
|
|
Zinc |
|
113.3 |
|
Mlb |
|
134.8 |
|
Mlb |
|
33.5 |
|
Mlb |
|
- |
|
Mlb |
|
89.7 |
|
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. |
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 |
The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed. |
4 |
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 |
||||||||||
|
|
|
|
2024 Guidance |
|
Metal Sales by Segment for the Six Months Ended |
||||
|
|
|
|
|
|
Stream Sales1 |
|
Royalty Sales2 |
|
Total Sales |
|
|
|
|
|
|
|
|
|
|
|
Gold |
|
(oz) |
|
215,000 - 230,000 |
|
77,300 |
|
32,078 |
|
109,378 |
Silver |
|
(M oz) |
|
3.2-3.8 |
|
1.2 |
|
0.4 |
|
1.6 |
Copper |
|
(M lb) |
|
14.0 - 16.0 |
|
5.8 |
|
1.8 |
|
7.6 |
Other Metals |
|
(M) |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Three Months Ended
|
|
|
As of
|
|
As of
|
||||
Gold Stream |
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
Inventory (oz) |
|
Inventory (oz) |
|
|
|
9,800 |
|
16,100 |
|
17,300 |
|
17,500 |
|
|
500 |
|
4,000 |
Pueblo Viejo |
|
|
7,000 |
|
5,800 |
|
6,800 |
|
7,400 |
|
|
7,000 |
|
6,200 |
Andacollo |
|
|
5,800 |
|
4,500 |
|
3,700 |
|
4,000 |
|
|
1,200 |
|
800 |
Other |
|
|
11,800 |
|
12,800 |
|
11,200 |
|
11,600 |
|
|
3,300 |
|
4,200 |
Total |
|
|
34,400 |
|
39,200 |
|
39,000 |
|
40,500 |
|
|
12,000 |
|
15,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
Inventory (oz) |
|
Inventory (oz) |
Khoemacau |
|
|
281,600 |
|
295,500 |
|
398,700 |
|
373,000 |
|
|
88,000 |
|
135,300 |
Pueblo Viejo1 |
|
|
332,700 |
|
218,200 |
|
150,700 |
|
362,200 |
|
|
332,700 |
|
223,000 |
Other |
|
|
80,000 |
|
79,500 |
|
70,600 |
|
65,700 |
|
|
29,800 |
|
24,800 |
Total |
|
|
694,300 |
|
593,200 |
|
620,000 |
|
800,900 |
|
|
450,500 |
|
383,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Stream |
|
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
|
Inventory (Mlb) |
|
Inventory (Mlb) |
|
|
|
2.5 |
|
3.4 |
|
2.5 |
|
1.7 |
|
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
||||
Gold Stream |
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
|
|
|
|
|
|
25,100 |
|
28,600 |
|
31,200 |
|
32,700 |
|
|
|
|
|
Pueblo Viejo |
|
|
12,700 |
|
12,000 |
|
14,200 |
|
15,300 |
|
|
|
|
|
Andacollo |
|
|
10,700 |
|
10,200 |
|
9,000 |
|
11,000 |
|
|
|
|
|
Other |
|
|
25,600 |
|
26,500 |
|
24,200 |
|
23,500 |
|
|
|
|
|
Total |
|
|
74,100 |
|
77,300 |
|
78,600 |
|
82,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases (oz) |
|
Sales (oz) |
|
Purchases (oz) |
|
Sales (oz) |
|
|
|
|
|
Khoemacau |
|
|
580,200 |
|
627,400 |
|
826,200 |
|
777,000 |
|
|
|
|
|
Pueblo Viejo1 |
|
|
550,900 |
|
441,200 |
|
513,000 |
|
700,100 |
|
|
|
|
|
Other |
|
|
164,500 |
|
159,600 |
|
140,000 |
|
131,900 |
|
|
|
|
|
Total |
|
|
1,295,600 |
|
1,228,200 |
|
1,479,200 |
|
1,609,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Stream |
|
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
Purchases (Mlb) |
|
Sales (Mlb) |
|
|
|
|
|
|
|
|
5.8 |
|
5.8 |
|
6.0 |
|
6.2 |
|
|
|
|
|
1 |
Silver stream purchases do not include 142,800 ounces of silver permitted to be deferred in the three month period ending |
|
|||||||
Consolidated Balance Sheets (Unaudited, in thousands except share data) |
|||||||
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
||
Cash and equivalents |
|
|
$ |
74,232 |
|
$ |
104,167 |
Royalty receivables |
|
|
|
40,338 |
|
|
48,884 |
Income tax receivable |
|
|
|
5,637 |
|
|
2,676 |
Stream inventory |
|
|
|
10,904 |
|
|
9,788 |
Prepaid expenses and other |
|
|
|
2,387 |
|
|
1,911 |
Total current assets |
|
|
|
133,498 |
|
|
167,426 |
Stream and royalty interests, net |
|
|
|
3,053,988 |
|
|
3,075,574 |
Other assets |
|
|
|
81,535 |
|
|
118,057 |
Total assets |
|
|
$ |
3,269,021 |
|
$ |
3,361,057 |
LIABILITIES |
|
|
|
|
|
||
Accounts payable |
|
|
$ |
13,227 |
|
$ |
11,441 |
Dividends payable |
|
|
|
26,314 |
|
|
26,292 |
Current portion of long-term debt |
|
|
|
50,000 |
|
|
— |
Income tax payable |
|
|
|
18,103 |
|
|
15,557 |
Other current liabilities |
|
|
|
14,739 |
|
|
19,132 |
Total current liabilities |
|
|
|
122,383 |
|
|
72,422 |
Debt |
|
|
|
— |
|
|
245,967 |
Deferred tax liabilities |
|
|
|
133,351 |
|
|
134,299 |
|
|
|
|
25,000 |
|
|
— |
Other liabilities |
|
|
|
7,094 |
|
|
7,728 |
Total liabilities |
|
|
|
287,828 |
|
|
460,416 |
Commitments and contingencies |
|
|
|
|
|
||
EQUITY |
|
|
|
|
|
||
Preferred stock, |
|
|
|
— |
|
|
— |
Common stock, |
|
|
|
656 |
|
|
656 |
Additional paid-in capital |
|
|
|
2,225,942 |
|
|
2,221,039 |
Accumulated earnings |
|
|
|
742,270 |
|
|
666,522 |
Total |
|
|
|
2,968,868 |
|
|
2,888,217 |
Non-controlling interests |
|
|
|
12,325 |
|
|
12,424 |
Total equity |
|
|
|
2,981,193 |
|
|
2,900,641 |
Total liabilities and equity |
|
|
$ |
3,269,021 |
|
$ |
3,361,057 |
|
|||||||||||||||||
Consolidated Statements of Operations and Comprehensive Income (Unaudited, in thousands except share data) |
|||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
|
$ |
174,096 |
|
|
$ |
144,042 |
|
|
$ |
322,999 |
|
|
$ |
314,434 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales (excludes depreciation, depletion and amortization) |
|
|
|
24,174 |
|
|
|
23,367 |
|
|
|
45,924 |
|
|
|
48,387 |
|
General and administrative |
|
|
|
10,511 |
|
|
|
9,093 |
|
|
|
21,923 |
|
|
|
20,093 |
|
Production taxes |
|
|
|
1,581 |
|
|
|
1,274 |
|
|
|
3,031 |
|
|
|
3,263 |
|
Depreciation, depletion and amortization |
|
|
|
35,747 |
|
|
|
38,412 |
|
|
|
74,512 |
|
|
|
84,741 |
|
Total costs and expenses |
|
|
|
72,013 |
|
|
|
72,146 |
|
|
|
145,390 |
|
|
|
156,484 |
|
Operating income |
|
|
|
102,083 |
|
|
|
71,896 |
|
|
|
177,609 |
|
|
|
157,950 |
|
Fair value changes in equity securities |
|
|
|
(63 |
) |
|
|
(509 |
) |
|
|
383 |
|
|
|
291 |
|
Interest and other income |
|
|
|
807 |
|
|
|
2,650 |
|
|
|
3,783 |
|
|
|
4,912 |
|
Interest and other expense |
|
|
|
(2,516 |
) |
|
|
(8,408 |
) |
|
|
(7,123 |
) |
|
|
(17,582 |
) |
Income before income taxes |
|
|
|
100,310 |
|
|
|
65,629 |
|
|
|
174,652 |
|
|
|
145,571 |
|
Income tax expense |
|
|
|
(18,991 |
) |
|
|
(2,029 |
) |
|
|
(46,025 |
) |
|
|
(17,900 |
) |
Net income and comprehensive income |
|
|
|
81,320 |
|
|
|
63,600 |
|
|
|
128,627 |
|
|
|
127,671 |
|
Net income and comprehensive income attributable to non-controlling interests |
|
|
|
(112 |
) |
|
|
(151 |
) |
|
|
(255 |
) |
|
|
(347 |
) |
Net income and comprehensive income attributable to |
|
|
$ |
81,208 |
|
|
$ |
63,449 |
|
|
$ |
128,372 |
|
|
$ |
127,324 |
|
Net income per share attributable to |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
|
|
$ |
1.23 |
|
|
$ |
0.97 |
|
|
$ |
1.95 |
|
|
$ |
1.94 |
|
Basic weighted average shares outstanding |
|
|
|
65,650,801 |
|
|
|
65,605,391 |
|
|
|
65,644,115 |
|
|
|
65,600,213 |
|
Diluted earnings per share |
|
|
$ |
1.23 |
|
|
$ |
0.97 |
|
|
$ |
1.95 |
|
|
$ |
1.93 |
|
Diluted weighted average shares outstanding |
|
|
|
65,767,538 |
|
|
|
65,762,903 |
|
|
|
65,753,899 |
|
|
|
65,736,028 |
|
Cash dividends declared per common share |
|
|
$ |
0.40 |
|
|
$ |
0.375 |
|
|
$ |
0.80 |
|
|
$ |
0.750 |
|
|
|||||||||||||||||
Consolidated Statements of Cash Flows (Unaudited, in thousands) |
|||||||||||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||||||
Net income and comprehensive income |
|
|
$ |
81,320 |
|
|
$ |
63,600 |
|
|
$ |
128,627 |
|
|
$ |
127,671 |
|
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
|
|
|
35,747 |
|
|
|
38,412 |
|
|
|
74,512 |
|
|
|
84,741 |
|
Non-cash employee stock compensation expense |
|
|
|
3,348 |
|
|
|
1,943 |
|
|
|
6,336 |
|
|
|
4,579 |
|
Fair value changes in equity securities |
|
|
|
63 |
|
|
|
509 |
|
|
|
(383 |
) |
|
|
(291 |
) |
Deferred tax expense (benefit) |
|
|
|
2,771 |
|
|
|
(8,231 |
) |
|
|
3,419 |
|
|
|
(7,139 |
) |
Other |
|
|
|
262 |
|
|
|
231 |
|
|
|
484 |
|
|
|
445 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
||||||||
Royalty receivables |
|
|
|
(1,581 |
) |
|
|
10,477 |
|
|
|
8,546 |
|
|
|
12,948 |
|
Stream inventory |
|
|
|
513 |
|
|
|
942 |
|
|
|
(1,116 |
) |
|
|
1,998 |
|
Income tax receivable |
|
|
|
(2,528 |
) |
|
|
(7,878 |
) |
|
|
(2,961 |
) |
|
|
(6,536 |
) |
Prepaid expenses and other assets |
|
|
|
(233 |
) |
|
|
(1,727 |
) |
|
|
10,530 |
|
|
|
(2,641 |
) |
Accounts payable |
|
|
|
1,628 |
|
|
|
700 |
|
|
|
1,786 |
|
|
|
1,866 |
|
Income tax payable |
|
|
|
(3,918 |
) |
|
|
7,378 |
|
|
|
2,547 |
|
|
|
(462 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
25,000 |
|
|
|
— |
|
Other liabilities |
|
|
|
(3,877 |
) |
|
|
1,571 |
|
|
|
(5,528 |
) |
|
|
(597 |
) |
Net cash provided by operating activities |
|
|
$ |
113,515 |
|
|
$ |
107,927 |
|
|
$ |
251,799 |
|
|
$ |
216,582 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||||||
Acquisition of stream and royalty interests |
|
|
|
(51,152 |
) |
|
|
(2,670 |
) |
|
|
(52,256 |
) |
|
|
(2,670 |
) |
Proceeds from Khoemacau debt facility |
|
|
|
— |
|
|
|
— |
|
|
|
25,000 |
|
|
|
— |
|
Other |
|
|
|
220 |
|
|
|
46 |
|
|
|
(85 |
) |
|
|
(151 |
) |
Net cash used in investing activities |
|
|
$ |
(50,932 |
) |
|
$ |
(2,624 |
) |
|
$ |
(27,341 |
) |
|
$ |
(2,821 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||||||
Repayment of debt |
|
|
|
(100,000 |
) |
|
|
(100,000 |
) |
|
|
(200,000 |
) |
|
|
(175,000 |
) |
Net payments from issuance of common stock |
|
|
|
(63 |
) |
|
|
650 |
|
|
|
(1,432 |
) |
|
|
253 |
|
Common stock dividends |
|
|
|
(26,311 |
) |
|
|
(24,642 |
) |
|
|
(52,603 |
) |
|
|
(49,271 |
) |
Other |
|
|
|
73 |
|
|
|
(1,970 |
) |
|
|
(358 |
) |
|
|
(2,172 |
) |
Net cash used in financing activities |
|
|
$ |
(126,301 |
) |
|
$ |
(125,962 |
) |
|
$ |
(254,393 |
) |
|
$ |
(226,190 |
) |
Net decrease in cash and equivalents |
|
|
|
(63,718 |
) |
|
|
(20,659 |
) |
|
|
(29,935 |
) |
|
|
(12,429 |
) |
Cash and equivalents at beginning of period |
|
|
|
137,950 |
|
|
|
126,816 |
|
|
|
104,167 |
|
|
|
118,586 |
|
Cash and equivalents at end of period |
|
|
$ |
74,232 |
|
|
$ |
106,157 |
|
|
$ |
74,232 |
|
|
$ |
106,157 |
|
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
|
|
Six Months Ended
|
||||||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income and comprehensive income |
|
81,320 |
|
|
$ |
63,600 |
|
|
$ |
128,627 |
|
|
$ |
127,671 |
|
Depreciation, depletion and amortization |
|
35,747 |
|
|
|
38,412 |
|
|
|
74,512 |
|
|
|
84,741 |
|
Non-cash employee stock compensation |
|
3,348 |
|
|
|
1,943 |
|
|
|
6,336 |
|
|
|
4,579 |
|
Fair value changes in equity securities |
|
63 |
|
|
|
509 |
|
|
|
(383 |
) |
|
|
(291 |
) |
Other non-recurring adjustments |
|
— |
|
|
|
2,440 |
|
|
|
— |
|
|
|
2,440 |
|
Interest and other, net |
|
1,709 |
|
|
|
5,758 |
|
|
|
3,340 |
|
|
|
12,670 |
|
Income tax expense |
|
18,991 |
|
|
|
2,029 |
|
|
|
46,025 |
|
|
|
17,900 |
|
Non-controlling interests in operating income of consolidated subsidiaries |
|
(112 |
) |
|
|
(151 |
) |
|
|
(255 |
) |
|
|
(347 |
) |
Adjusted EBITDA |
$ |
141,066 |
|
|
$ |
114,540 |
|
|
$ |
258,202 |
|
|
$ |
249,363 |
|
Net income margin |
|
47 |
% |
|
|
44 |
% |
|
|
40 |
% |
|
|
41 |
% |
Adjusted EBITDA margin |
|
81 |
% |
|
|
80 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Net income and comprehensive income |
$ |
81,320 |
|
|
$ |
47,309 |
|
|
$ |
62,963 |
|
|
$ |
49,499 |
|
Depreciation, depletion and amortization |
|
35,747 |
|
|
|
38,765 |
|
|
|
40,090 |
|
|
|
40,106 |
|
Non-cash employee stock compensation |
|
3,348 |
|
|
|
2,988 |
|
|
|
2,354 |
|
|
|
2,763 |
|
Fair value changes in equity securities |
|
63 |
|
|
|
(447 |
) |
|
|
(25 |
) |
|
|
462 |
|
Interest and other, net |
|
1,709 |
|
|
|
1,630 |
|
|
|
3,396 |
|
|
|
4,849 |
|
Income tax expense |
|
18,991 |
|
|
|
27,033 |
|
|
|
13,356 |
|
|
|
10,752 |
|
Non-controlling interests in operating income of consolidated subsidiaries |
|
(112 |
) |
|
|
(143 |
) |
|
|
(183 |
) |
|
|
(162 |
) |
Adjusted EBITDA |
$ |
141,066 |
|
|
$ |
117,135 |
|
|
$ |
121,951 |
|
|
$ |
108,269 |
|
Net income margin |
|
47 |
% |
|
|
32 |
% |
|
|
41 |
% |
|
|
36 |
% |
Adjusted EBITDA margin |
|
81 |
% |
|
|
79 |
% |
|
|
80 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
||||||||
TTM adjusted EBITDA |
$ |
488,421 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Debt |
$ |
50,000 |
|
|
|
|
|
|
|
||||||
Cash and equivalents |
|
(74,232 |
) |
|
|
|
|
|
|
||||||
Net debt / (cash) |
$ |
(24,232 |
) |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net debt / (cash) to TTM adjusted EBITDA |
(0.05)x |
|
|
|
|
|
|
||||||||
Cash G&A: |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative expense |
$ |
10,511 |
|
|
$ |
9,093 |
|
|
$ |
21,923 |
|
|
$ |
20,093 |
|
Non-cash employee stock compensation |
|
(3,348 |
) |
|
|
(1,943 |
) |
|
|
(6,336 |
) |
|
|
(4,579 |
) |
Cash G&A |
$ |
7,163 |
|
|
$ |
7,150 |
|
|
$ |
15,587 |
|
|
$ |
15,514 |
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
General and administrative expense |
$ |
10,511 |
|
|
$ |
11,412 |
|
|
$ |
9,741 |
|
|
$ |
9,927 |
|
Non-cash employee stock compensation |
|
(3,348 |
) |
|
|
(2,988 |
) |
|
|
(2,354 |
) |
|
|
(2,763 |
) |
Cash G&A |
$ |
7,163 |
|
|
$ |
8,424 |
|
|
$ |
7,387 |
|
|
$ |
7,164 |
|
|
|
|
|
|
|
|
|
||||||||
TTM cash G&A |
$ |
30,138 |
|
|
|
|
|
|
|
Adjusted net income and adjusted net income per share: |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(amounts in thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income and comprehensive income attributable to |
$ |
81,208 |
|
|
$ |
63,449 |
|
|
$ |
128,372 |
|
|
$ |
127,324 |
|
Fair value changes in equity securities |
|
63 |
|
|
|
509 |
|
|
|
(383 |
) |
|
|
(291 |
) |
Other non-recurring adjustments |
|
— |
|
|
|
2,440 |
|
|
|
— |
|
|
|
2,440 |
|
Discrete tax expense related to Mount Milligan Cost Support Agreement |
|
30 |
|
|
|
— |
|
|
|
13,008 |
|
|
|
— |
|
Other discrete tax expense (benefit) |
|
1,279 |
|
|
|
(8,462 |
) |
|
|
1,279 |
|
|
|
(8,462 |
) |
Tax effect of adjustments |
|
(17 |
) |
|
|
(781 |
) |
|
|
102 |
|
|
|
(569 |
) |
Adjusted net income and comprehensive income attributable to |
$ |
82,563 |
|
|
$ |
57,155 |
|
|
$ |
142,378 |
|
|
$ |
120,442 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to |
$ |
1.23 |
|
|
$ |
0.97 |
|
|
$ |
1.95 |
|
|
$ |
1.94 |
|
Fair value changes in equity securities |
|
— |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
— |
|
Other non-recurring adjustments |
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
Discrete tax expense related to Mount Milligan Cost Support Agreement |
|
— |
|
|
|
— |
|
|
|
0.20 |
|
|
|
— |
|
Other discrete tax expense (benefit) |
|
0.02 |
|
|
|
(0.13 |
) |
|
|
0.02 |
|
|
|
(0.13 |
) |
Tax effect of adjustments |
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
— |
|
|
$ |
(0.01 |
) |
Adjusted net income attributable to |
$ |
1.25 |
|
|
$ |
0.88 |
|
|
$ |
2.16 |
|
|
$ |
1.84 |
|
Free cash flow: |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
113,515 |
|
|
$ |
107,927 |
|
|
$ |
251,799 |
|
|
$ |
216,582 |
|
Acquisition of stream and royalty interests |
|
(51,152 |
) |
|
|
(2,670 |
) |
|
|
(52,256 |
) |
|
|
(2,670 |
) |
Free cash flow |
$ |
62,363 |
|
|
$ |
105,257 |
|
|
$ |
199,543 |
|
|
$ |
213,912 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash used in investing activities |
$ |
(50,932 |
) |
|
$ |
(2,624 |
) |
|
$ |
(27,341 |
) |
|
$ |
(2,821 |
) |
Net cash used in financing activities |
$ |
(126,301 |
) |
|
$ |
(125,962 |
) |
|
$ |
(254,393 |
) |
|
$ |
(226,190 |
) |
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/20240807267655/en/
Senior Vice President, Investor Relations and Business Development
(303) 573-1660
Source: