Royal Gold Provides Details on Fiscal Year End Change

2021-12-15 14:24:18

DENVER / Dec 15, 2021 / Business Wire / Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today additional details with respect to the previously announced change in Royal Gold’s fiscal year end.

As previously announced, Royal Gold is transitioning its fiscal year end from June 30 to December 31, effective as of December 31, 2021. This change in fiscal year end will better align Royal Gold’s reporting and disclosure with that of most of its streaming and royalty counterparties and other companies in the precious metals sector.

Important investor considerations for this change include:

  • Royal Gold is currently in a transition period that covers the six months between the end of the previous fiscal year on June 30, 2021, and December 31, 2021;
  • The 10-KT report for the transition period ending December 31, 2021, will be filed within 60 days of the end of the transition period;
  • 10-Q reports for each of the March 31, June 30 and September 30 quarters will be filed within 40 days of the end of each quarter;
  • The 2022 stockholders’ meeting is expected to be held on May 25, 2022;
  • The Board of Directors expects that any dividend declarations will continue on a quarterly schedule, with the determination of dividend record and payout dates to remain consistent with past practice;
  • Stream segment sales and inventory figures for each quarter are expected to be made available prior to filing quarterly financial results, consistent with past practice; and
  • One-year guidance for total GEO sales, depreciation, depletion and amortization expense, and effective tax rate is expected to be provided during the second calendar quarter of 2022.

In order to ease the transition to the new fiscal year end, certain unaudited financial metrics on a calendar year basis are shown in Tables 1 and 2 of this press release for the five-year period 2016 through 2020 inclusive. Table 1 contains an unaudited summary of revenue by property, and Table 2 contains select unaudited financial metrics. Royal Gold expects to provide further historical financial metrics along with the filing of financial results in the future.

Corporate Profile

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests. As of September 30, 2021, the Company owned interests on 190 properties on five continents, including interests on 44 producing mines and 16 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol “RGLD.” The Company’s website is located at www.royalgold.com.

Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” or negatives of these words or similar expressions. Forward-looking statements include, among others, statements about our fiscal year end change and future reporting practices. 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, nickel 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, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, or contractual issues involving our stream or royalty agreements; risks associated with doing business in foreign countries; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; the impacts of the COVID-19 pandemic; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2021, and subsequent Forms 10-Q. Most of these factors are beyond our ability to predict or control. 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.






























































TABLE 1                                    
                                     
Five-Year Historical Revenue by Stream and Royalty Interests
(In $ thousands unless noted otherwise, unaudited)                              
         

Twelve Months Ended December 31,

Stream/Royalty Metal(s)   Current Stream/Royalty Interest1  

 

2020

 

 

 

2019

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

Stream:                                    
Canada                                    
Mount Milligan Gold, copper   35% of payable gold and 18.75% of payable copper   $

149,631

 

  $

125,121

 

  $

116,966

 

  $

120,270

 

  $

129,730

 

Rainy River Gold, silver   6.5% of gold produced and 60% of silver produced    

29,139

 

   

26,875

 

   

17,635

 

   

1,070

 

   

 

Other-Canada          

 

   

 

   

 

   

 

   

140

 

Latin America                                    
Pueblo Viejo Gold, silver   7.5% of Barrick’s interest in payable gold and 75% of Barrick’s interest in payable silver  

$

110,571

 

 

$

90,359

 

 

$

81,014

 

 

$

95,960

 

 

$

77,670

 

Andacollo Gold   100% of payable gold    

74,225

 

   

75,155

 

   

58,852

 

   

63,035

 

   

63,964

 

NX Gold Gold   25% of gold produced    

 

   

 

   

 

   

 

   

 

Africa                                    
Wassa Gold   10.5% of payable gold   $

28,960

 

  $

20,427

 

  $

18,889

 

  $

16,925

 

  $

11,313

 

Prestea and Bogoso Gold   5.5% of payable gold    

4,960

 

   

6,777

 

   

10,827

 

   

15,289

 

   

9,554

 

Khoemacau Silver   90% of payable silver    

 

   

 

   

 

   

 

   

 

Total stream revenue         $

397,486

 

  $

344,714

 

  $

304,183

 

  $

312,549

 

  $

292,371

 

Royalty:                                    
Canada                                    
Holt Gold   0.00013 x Au price NSR   $

5,565

 

  $

9,960

 

  $

10,202

 

  $

12,031

 

  $

11,568

 

Voisey’s Bay Copper, nickel, cobalt   2.7% NVR    

7,654

 

   

9,706

 

   

8,853

 

   

 

   

2,778

 

Canadian Malartic Gold   1.0%-1.5% sliding-scale NSR    

7,377

 

   

6,745

 

   

8,113

 

   

7,486

 

   

7,146

 

Williams Gold   0.97% NSR    

3,074

 

   

2,252

 

   

1,778

 

   

2,008

 

   

1,957

 

LaRonde Zone 5 Gold   2.0% NSR    

2,044

 

   

1,810

 

   

187

 

   

13

 

   

 

Other-Canada Various   Various    

1,310

 

   

1,371

 

   

1,351

 

   

1,287

 

   

1,491

 

United States                                    
Cortez Gold   GSR1, GSR2, GSR3, NVR1, NVR1C   $

28,444

 

  $

16,155

 

  $

5,172

 

  $

8,552

 

  $

6,994

 

Robinson Gold, copper   3.0% NSR    

10,669

 

   

8,337

 

   

9,110

 

   

8,881

 

   

7,896

 

Marigold Gold   2.0% NSR    

8,134

 

   

6,057

 

   

5,025

 

   

5,009

 

   

5,005

 

Goldstrike Gold   0.9% NSR    

3,419

 

   

3,359

 

   

3,268

 

   

3,328

 

   

4,403

 

Wharf Gold   0.0%-2.0% sliding-scale GSR    

3,340

 

   

2,384

 

   

1,818

 

   

2,243

 

   

2,409

 

Other-United States Various   Various    

4,860

 

   

4,828

 

   

6,716

 

   

10,883

 

   

9,192

 

Latin America                                    
Peñasquito Gold, silver, lead, zinc   2.0% NSR  

$

36,661

 

 

$

17,566

 

 

$

20,197

 

 

$

27,719

 

 

$

20,716

 

Dolores Gold, silver   3.25% NSR (gold), 2.0% NSR (silver)    

7,058

 

   

7,022

 

   

6,806

 

   

5,511

 

   

5,278

 

El Limon Gold   3.0% NSR    

4,172

 

   

2,451

 

   

1,980

 

   

1,160

 

   

1,802

 

Other-Latin America Various   Various    

1,661

 

   

3,380

 

   

12,538

 

   

11,761

 

   

11,054

 

Africa                                    
Taparko Gold   2.0% GSR, 0.75% GSR (milling royalty)   $

2,971

 

  $

1,490

 

  $

2,075

 

  $

2,589

 

  $

2,725

 

Australia                                    
South Laverton Gold   1.5% NSR, 4.0% NPI   $

10,176

 

  $

4,239

 

  $

4,387

 

  $

3,257

 

  $

2,549

 

Gwalia Deeps Gold   1.5% NSR    

4,023

 

   

3,859

 

   

5,057

 

   

4,747

 

   

4,957

 

Meekatharra Gold   0.45% or 1.5% NSR    

3,904

 

   

2,786

 

   

2,424

 

   

2,667

 

   

1,758

 

Other-Australia Various   Various    

2,657

 

   

3,054

 

   

1,511

 

   

2,127

 

   

3,114

 

Europe                                    
Las Cruces Copper   1.5% NSR   $

4,986

 

  $

4,366

 

  $

7,053

 

  $

6,920

 

  $

5,365

 

Other-Europe Various   Various    

 

   

 

   

 

   

 

   

 

Total royalty revenue         $

164,157

 

  $

123,174

 

  $

125,620

 

  $

130,180

 

  $

120,155

 

Total revenue         $

561,643

 

  $

467,888

 

  $

429,803

 

  $

442,729

 

  $

412,526

 

                                     
GEOs Sold2     Ounces    

317,700

 

   

336,800

 

   

338,300

 

   

352,100

 

   

352,300

 

Revenue by Commodity                                    
Gold     %    

78

%

   

77

%

   

77

%

   

80

%

   

88

%

Silver     %    

9

%

   

9

%

   

9

%

   

9

%

   

6

%

Copper     %    

10

%

   

10

%

   

10

%

   

8

%

   

3

%

Other     %    

3

%

   

4

%

   

4

%

   

3

%

   

3

%





1 Refer to Part I, Item 2, of the Company’s Fiscal 2021 Form 10-K for a full description of the Company’s stream and royalty interests.
2 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 gold price for that same period.














TABLE 2                      
                       
Five-Year Historical Select Financial Metrics                      
(Unaudited)                        
     

Twelve Months Ended December 31,

Metric Units  

 

2020

 

2019

 

2018

 

2017

 

2016

Adjusted EBITDA1 $ thousands    

445,026

 

356,367

 

316,923

 

331,557

 

304,285

Operating Cash Flow $ thousands    

385,320

 

299,194

 

285,058

 

289,215

 

240,135

Operating Cash Flow $ per diluted share    

5.87

 

4.56

 

4.35

 

4.42

 

3.68

Common Stock Dividends $ thousands    

73,451

 

69,478

 

65,494

 

62,752

 

60,056

Common Stock Dividends $ per diluted share    

1.12

 

1.06

 

1.00

 

0.96

 

0.92




1 Adjusted EBITDA is a non-GAAP financial measure. See below for additional information. For purposes of this table and the reconciliation below, calendar-year adjusted EBITDA was calculated by adding together previously reported adjusted EBITDA amounts for the four quarterly periods in the calendar year. These amounts were calculated based on the previous June 30 fiscal year end and do not reflect any changes to income tax expense (benefit) that would have occurred if historical results had been presented based on a December 31 fiscal year end.

Overview of non-GAAP financial measures:

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of non-GAAP financial measures varies among companies, non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below a reconciliation of our non-GAAP financial measure to the comparable GAAP measure. We believe non-GAAP financial measures provide useful information to investors for analysis of our business. We use non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe 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 measure are subjective and involve significant management judgement.

The non-GAAP financial measure used by management in this press release is adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, which 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. 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.













































































Reconciliation of non-GAAP financial measures to U.S. GAAP measures:              
TTM Adjusted EBITDA:              
 

Three Months Ended

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In $ thousands, unaudited)

2020

 

2020

 

2020

 

2020

Net income

59,988

 

 

106,674

   

48,672

   

38,292

 
Depreciation, depletion and amortization

47,945

 

 

46,300

   

45,396

   

51,228

 
Non-cash employee stock compensation

1,398

 

 

1,493

   

833

   

4,644

 
Impairment of royalty interests

 

 

   

1,341

   

 
Gain on sale of Peak Gold JV interest

 

 

(33,906

)  

   

 
Fair value changes in equity securities

382

 

 

(2,539

)  

(6,390

)  

3,819

 
Interest and other, net

965

 

 

1,454

   

2,249

   

1,468

 
Income tax expense (benefit)

16,031

 

 

(2,377

)  

45

   

8,702

 
Non-controlling interest in operating (income) loss of consolidated subsidiaries

(99

)  

265

   

343

   

410

 
Adjusted EBITDA

126,610

 

 

117,364

   

92,489

   

108,563

 
               
TTM adjusted EBITDA

445,026

             
               
  Three Months Ended
  December 31,   September 30,   June 30,   March 31,
(In $ thousands, unaudited)

2019

 

2019

 

2019

 

2019

Net income

40,414

   

68,872

   

25,466

   

28,594

 
Depreciation, depletion and amortization

40,096

   

38,714

   

42,331

   

39,368

 
Non-cash employee stock compensation

1,538

   

2,101

   

1,107

   

1,440

 
Fair value changes in equity securities

(222

)  

1,375

   

3,482

   

(1,781

)
Interest and other, net

1,991

   

2,059

   

5,633

   

7,000

 
Income tax expense (benefit)

11,124

   

(23,525

)  

6,143

   

9,388

 
Non-controlling interest in operating (income) loss of consolidated subsidiaries

907

   

1,581

   

993

   

178

 
Adjusted EBITDA

95,848

   

91,177

   

85,155

   

84,187

 
 

 

           
TTM adjusted EBITDA

356,367

             
               
  Three Months Ended
  December 31,   September 30,   June 30,   March 31,
(In $ thousands, unaudited)

2018

 

2018

 

2018

 

2018

Net income (loss)

23,043

   

11,976

   

24,007

   

(154,118

)
Depreciation, depletion and amortization

38,807

   

42,551

   

42,317

   

39,679

 
Non-cash employee stock compensation

1,625

   

2,444

   

2,322

   

1,563

 
Impairment of royalty interests

   

   

   

239,364

 
Fair value changes in equity securities

3,631

   

1,468

   

   

 
Interest and other, net

6,923

   

7,774

   

7,512

   

6,513

 
Income tax expense (benefit)

(2,148

)  

4,115

   

4,728

   

(45,859

)
Non-controlling interest in operating (income) loss of consolidated subsidiaries

543

   

3,032

   

2,643

   

468

 
Adjusted EBITDA

72,424

   

73,360

   

83,529

   

87,610

 
 

 

           
TTM adjusted EBITDA

316,923

             
               
  Three Months Ended
  December 31,   September 30,   June 30,   March 31,
(In $ thousands, unaudited)

2017

 

2017

 

2017

 

2017

Net income (loss)

(15,787

)  

26,548

   

16,836

   

21,531

 
Depreciation, depletion and amortization

42,008

   

39,692

   

39,851

   

40,164

 
Non-cash employee stock compensation

2,021

   

2,373

   

3,224

   

314

 
Interest and other, net

8,389

   

7,628

   

10,067

   

7,928

 
Income tax expense (benefit)

48,360

   

7,544

   

7,717

   

6,492

 
Non-controlling interest in operating (income) loss of consolidated subsidiaries

1,022

   

2,083

   

3,422

   

2,130

 
Adjusted EBITDA

86,013

   

85,868

   

81,117

   

78,559

 
 

 

           
TTM adjusted EBITDA

331,557

             
               
  Three Months Ended
  December 31,   September 30,   June 30,   March 31,
(In $ thousands, unaudited)

2016

 

2016

 

2016

 

2016

Net income (loss)

27,102

   

26,955

   

18,082

   

(69,498

)
Depreciation, depletion and amortization

39,519

   

40,102

   

35,391

   

38,163

 
Non-cash employee stock compensation

2,299

   

4,144

   

2,250

   

2,340

 
Impairment of royalty interests

   

   

   

98,973

 
Interest and other, net

2,335

   

6,748

   

5,409

   

5,702

 
Income tax expense (benefit)

5,044

   

7,188

   

5,025

   

(8,262

)
Non-controlling interest in operating (income) loss of consolidated subsidiaries

2,091

   

2,984

   

2,357

   

1,842

 
Adjusted EBITDA

78,390

   

88,121

   

68,514

   

69,260

 
 

 

           
TTM adjusted EBITDA

304,285

             
               

 



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