The following is a summary of the Royal Gold, Inc. (RGLD) Q1 2024 Earnings Call Transcript:
Financial Performance:
Royal Gold reported a Q1 2024 revenue of $149 million, operating cash flow of $138 million, and earnings of $47 million or $0.72 per share.
The company repaid $100 million outstanding on their revolving credit facility, resulting in roughly $1 billion of total liquidity at the end of the quarter.
Net income of $47 million or $0.72 per share was recorded, which increased to $60 million or $0.91 per share after adjusting for a discrete tax item and change in the fair value of equity securities.
Royal Gold reported a unique income tax payment of $13 million in Q1 tied to a transaction with Centerra.
Business Progress:
Additional agreement with Centerra extended the mine life of Mount Milligan until 2035, providing incentives for future investments in the mine.
New operating partner, Khoemacau completed the acquisition of Khoemacau by MMG resulting in total proceeds of $37 million.
New pouring of gold in Mara Rosa, Brazil, and Cote Gold, Ontario marked new producing properties and Western Australia's King of the Hills and Bellevue mines are also expected to move towards full production.
The company repaid the rest of the revolving credit facility balance during the third quarter.
Royal Gold issued its first asset handbook and is set to publish its investment stewardship report on ESG risks and a separate climate report.
The company is actively reviewing several opportunities varying in size from $100 million to $300 million propelled by elevated commodity prices and a boom in the equity market.
Focus rests on royalty streams but equity and debt transactions may also be considered.
Potential opportunities exist for improving balance sheets and liquidity, primarily over base metal assets, and the company maintains around $1 billion in internal liquidity to support these reviews and transactions.
The value of deferred gold may impact future cash tax payments or benefits.
More details: Royal Gold IR
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