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Texan77 welcome to Royal Gold (RGLD
good to see you here
Yes Sir, she is alive,lol
shes alive lol rgld
Royal Gold, Inc. (RGLD)
56.75 ? 0.57 (1.01%)
Volume: 225,712 @ 10:03:42 AM ET
Bid Ask Day's Range
56.75 56.78 56.31 - 57.3
RGLD Detailed Quote
Royal Gold, Inc. (RGLD)
51.15 ? 0.82 (1.63%)
Volume: 450,585 @ 4:00:00 PM ET
Bid Ask Day's Range
51.15 51.17 50.0 - 51.21
RGLD Detailed Quote
Royal Gold, Inc. (RGLD)
48.04 ? -1.64 (-3.30%)
Volume: 627,202 @ 8:39:00 PM ET
Bid Ask Day's Range
47.29 50.17 48.0 - 49.37
RGLD Detailed Quote
Presentations
About Royal Gold
Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metals royalty interests. The Company owns royalties on 188 properties on six continents, including royalties on 34 producing mines and 24 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD" and on the Toronto Stock Exchange under the symbol "RGL." The Company's website is located at www.royalgold.com.
Royal Gold, Inc.
Karen Gross, 303-575-6504
Vice President and Corporate Secretary
Royal Gold Announces Fiscal 2011 Second Quarter Earnings Call
Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) today announced that its second quarter results will be released before the market opens for trading on Thursday, February 3, 2011, followed by a conference call that day at noon Eastern Time (10:00 a.m. Mountain Time). The call will be webcast and archived on the Company's website for a limited time.
Fiscal 2011 Second Quarter Conference Call Information:
Dial-In Numbers: 800-603-2779 (U.S. and Canada)
973-200-3960 (International)
Conference ID#: 36528572
Royal Gold, Inc. (RGLD)
46.38 ? -0.24 (-0.51%)
Volume: 329,115 @ 3:55:41 PM ET
Bid Ask Day's Range
46.37 46.39 46.0 - 46.99
This is a longterm hold my friend ......
Yes RGLD looking good. Just be safe anything can happen buy the dips..........
The yearly chart is starting to look good again with higher lows forming.
Dividends
Royal Gold has been paying a dividend to shareholders since 2000. The Company’s Board of Directors believes that shareholders should see a direct return on their investment and will continue to review the dividend payout as revenues grow.
Year Annual Dividend, US$ Quarterly Payment Type Payout Dates
2010 $0.36 Quarterly Jan. 15, '10
2009 $0.32 Quarterly Jan. 16, '09
Apr. 17, '09
July 17, '09
Oct. 16, '09
2008 $0.28 Quarterly Jan. 18, '08
Apr. 18, '08
Jul. 18, '08
Oct. 17, '08
2007 $0.26 Quarterly Jan. 20, '07
Apr. 20, '07
Jul. 20, '07
Oct. 19, '07
2006 $0.22 Quarterly Jan. 20, '06
Apr. 21, '06
Jul. 28, '06
Oct. 20, '06
2005 $0.20 Quarterly Jan. 21, '05
Apr. 22, '05
Jul. 22, '05
Oct. 21, '05
2004 $0.15 Quarterly Jan. 16, '04
Apr. 16, '04
Jul. 16, '04
Oct. 16, '04
2003 $0.10 Semiannual Jan. 17, '03
Jul. 18, '03
2002 $0.075 Annual Jul. 19. '02
2001 $0.05 Annual Jul. 20, '01
2000 $0.05 Annual Jul. 21, '00
http://www.internationalroyalty.com/
HI goldengirl333, i hope this helps and i would call the company too, IMO as long as the company makes money they could still pay a dividend and i dont see why not Royal Gold been paying dividends for about 10 years now, take care.
Dec 18, 2009
ROYAL GOLD, INC. (NASDAQ:RGLD) (TSX:RGL) and INTERNATIONAL ROYALTY CORPORATION ("IRC") (TSX:IRC) (NYSE-A:ROY) today announced that they have entered into an agreement to undertake a Plan of Arrangement ("Arrangement") whereby Royal Gold, through its wholly-owned Canadian subsidiary, and with the unanimous support of IRC's management and board of directors, will acquire all of the issued and outstanding common shares of IRC.
At the election of the shareholder, each common share of IRC will be exchanged for either C$7.451 in cash or 0.1385 common shares of Royal Gold or a combination thereof, subject to a maximum of US$350 million in cash and a maximum of 7.75 million common shares of Royal Gold to be issued to IRC shareholders. If IRC shareholders elect to receive more than approximately US$314 million in cash, the number of Royal Gold common shares issued will be reduced on a pro-rated basis until such cash election reaches a maximum of US$350 million. Assuming the maximum share election, this offer consists of 0.0771 shares of Royal Gold plus US$3.12 in cash for each fully diluted share of IRC, implying 56% stock consideration. Assuming the maximum cash election, this offer consists of 0.0700 shares of Royal Gold plus US$3.48 in cash for each fully diluted share of IRC, implying 51% stock consideration.
IRC shareholders residing in Canada will have the option to elect 0.1385 exchangeable shares of a wholly-owned Canadian subsidiary of Royal Gold in lieu of electing Royal Gold common shares. Each exchangeable share can be redeemed for one common share of Royal Gold at the election of the shareholder. No more than 7,750,000 Royal Gold common shares and exchangeable shares will be issued in the aggregate.
The transaction values IRC at approximately C$7491 million. This represents a premium of approximately 70% over IRC's 20-day volume-weighted average trading price on the TSX through December 4, 2009, which was the last trading day prior to a publicly announced takeover bid for IRC.
IRC's board of directors has unanimously determined that the Arrangement is in the best interest of IRC and its shareholders and will recommend that IRC shareholders vote in favor of the transaction. All of the directors and senior officers of IRC, and one significant IRC shareholder have entered into voting agreements in which they have agreed to vote their shares in support of the transaction. Together, those subject to the voting agreements represent a combined ownership of 26.8% of IRC's fully diluted shares outstanding.
Tony Jensen, President and CEO of Royal Gold, stated, "The combination of Royal Gold and IRC brings together a portfolio of nearly 200 royalty interests and creates a combined company that would hold royalty interests on some of the highest quality mines in the world, generate substantial cash flow, and yield one of the most attractive project development pipelines in the entire mineral industry. For the twelve months prior to September 30, 2009, the combined entities generated US$113 million in royalty revenue, 71% of which was attributable to precious metals. With most of the future growth in the IRC portfolio coming from precious metals, both sets of shareholders will benefit from gold focused revenue growth. We are dedicated to building a premium precious metals royalty company and welcome IRC shareholders to participate in the upside already embedded within Royal Gold."
The strategic benefits offered by this transaction include:
Significant Expansion of Royal Gold's Royalty Portfolio
The combined company's portfolio would include 31 producing royalty properties, 20 development stage properties, and 143 evaluation and exploration projects further diversifying the company's revenue and asset base principally in the geopolitically attractive locations of Canada, Chile and Australia,
The combined company would expand its royalty ownership of world-class assets with significant revenue potential, including a royalty interest on Vale's Voisey's Bay mine and an additional royalty interest that is nearly three times Royal Gold's existing interest at Barrick's Pascua-Lama project resulting in another long life, cornerstone precious metal royalty asset.
Immediate Impact
The combined company will immediately receive royalty revenue from an additional 11 producing assets upon closing,
The combined company's precious metal revenue is initially projected at near 70% of total revenue and is expected to approach 80% of total revenue when Pascua-Lama is commissioned,
While the number of assets would grow by 63%, significant overlap of business interests will result in improved expense efficiencies and enhanced margins.
Douglas B. Silver, Chairman and CEO of IRC, said, "The combination of IRC and Royal Gold offers IRC shareholders an opportunity to immediately increase the value of their shareholdings and to participate in the royalty industry's leading growth profile. Royal Gold's strong management team has built a high-quality royalty portfolio with impressive organic growth, and the even more rapid growth rate from IRC's existing precious metals royalties will enhance it significantly. The combined asset base, particularly with its concentration of precious metals royalties on long-life, low-cost mines, should afford shareholders the benefits of premium share valuations and outstanding organic growth for years to come."
The closing of the transaction is not subject to due diligence, Royal Gold shareholder approval or financing contingencies. The cash required for the acquisition will be sourced from available and unrestricted cash, together with committed credit facilities totaling US$225 million. The closing of the transaction is subject to, among other things, receipt of court approval and the affirmative vote of at least 66 2/3 percent of the votes cast by IRC shareholders and option holders at a special meeting of the IRC shareholders.
Pursuant to the terms of the Arrangement, IRC is subject to customary non-solicitation covenants. In the event a superior proposal is made, Royal Gold has the right to match such proposal, and in the event IRC's board of directors changes its recommendation or terminates the Arrangement, IRC has agreed to pay Royal Gold a termination fee of US$32 million. In certain other circumstances where the transaction is not completed, IRC is obligated to reimburse Royal Gold's expenses up to a maximum of US$5 million.
Royal Gold has engaged Goldman, Sachs & Co. and HSBC as its financial advisors and Hogan & Hartson LLP and McCarthy Tétrault LLP as its legal advisors in connection with the transaction.
About Royal Gold
Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company currently owns royalties on 118properties on six continents, including royalties on 21 producing mines and 12 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD," and on the Toronto Stock Exchange under the symbol "RGL."
About International Royalty Corporation
International Royalty is a global mineral royalty company. IRC currently holds 84 royalties including an effective 2.7% NSR on the Voisey's Bay mine, a sliding-scale NSR on the Chilean portion of the Pascua-Lama project, a 1.5% NSR on the Las Cruces project and a 1.5% NSR on approximately 3.0 million acres of gold lands in Western Australia. IRC is senior listed on the Toronto Stock Exchange (TSX:IRC) as well as the NYSE Amex (NYSE-A: ROY).
Conference Call
A conference call reviewing the transaction will be held on Friday, December 18at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) and will be available by calling (800) 603-2779 (North America) or (973) 200-3960(international), access #47708536. The call will be simultaneously broadcast on the Royal Gold's website at www.royalgold.com under the "Presentations" section. A replay of this webcast will be available on Royal Gold's website approximately two hours after the call ends.
Cautionary "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include: statements regarding a combined company holding royalties on some of the highest quality mines in the world, generating substantial cash flow with at least 80% precious metal revenue, and yielding one of the most attractive project development pipelines in the mineral industry; statements regarding most of the growth in the IRC portfolio coming from precious metals and that both sets of shareholders will benefit from gold focused revenue, the upside already embedded within Royal Gold and the expected closing of the transaction, statements that the combination offers IRC shareholders an opportunity to increase the value of their shareholdings immediately and to participate in the royalty industry's leading growth profile of the merged entities, that the rapid growth rate from IRC's existing precious metals royalties will enhance Royal Gold's growth rate significantly and that the combined asset base, particularly with its concentration of precious metals royalties on long-life, low-cost mines, should afford shareholders the benefits of premium share valuations and outstanding organic growth for years to come; all statements relating to the strategic benefits offered by the transaction, including statements regarding the significant expansion of the Company's royalty portfolio, the overlap of business interests resulting in improved expense efficiencies and enhanced margins, increased royalty holdings on world-class assets with significant revenue potential and a tremendous platform for future growth, an immediate impact on revenue from additional producing assets, and an increase in gold reserves. Factors that could cause actual results to differ materially from the projections include, among others, any delay in the closing or termination of the transaction to acquire the outstanding shares of IRC, precious metals prices, performance of and production at IRC's or the Company's royalty properties, decisions and activities of the operators of the Company'sor IRC's royalty properties, unanticipated grade, geological, metallurgical, processing or other problems the operators of the mining properties may encounter, delays in the operators securing or their inability to secure necessary governmental permits at Andacollo or other mines, changes in project parameters as plans continue to be refined, economic and market conditions, possible liquidity and production problems at Taparko and other royalty properties, the Company's exercise of its rights under the Taparko Funding Agreement, buy-down rights at Malartic, litigation, the closing of the Andacollo transaction, the ability of the operator to bring the Andacollo project into production as expected, and other subsequent events, as well as other factors described in the Company's Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other filings with the Securities and Exchange Commission. Most of these factors are beyond the Company's ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.
1 Based on Royal Gold's share price and the currency exchange rate on December 14, 2009
For investor inquiries:
Karen Gross
Vice President and Corporate Secretary
(303) 575-6504
or
For media inquiries:
Patrick Van De Wille
FD
(312) 553-6704
Dec 18, 2009
Hi goldenking...what does all this mean...what will this 100million be used for as I was recieving dividends every quarter and was going to get more..will this affect my dividends...will this affect the share price...and how will the shareholder benefit from this...goldengirl333 Christina...
Im thinking about this one any body know if they have a hedge position thanks
Royal Gold Enters into a New $100 Million Term Loan Facility Agreement
Royal Gold, Inc. (NASDAQ:RGLD)(TSX:RGL), a leading precious metals royalty company, today announced that ithas obtained a new $100 million secured term loan from HSBC Bank USA, National Association, which will be funded in conjunction with the closing of the Plan of Arrangement between Royal Gold and International Royalty Corporation ("IRC"), as announced on December 18, 2009, whereby Royal Gold would acquire all of the issued and outstanding shares of IRC. HSBC Securities (USA) Inc. acted as Sole Lead Arranger for the loan.
The loan will mature 18 months from the funding date with principal repayments scheduled to occur every three months. The interest rate on the loan is LIBOR plus 2.25%. Funding under the $100 million term loan is subject only to delivery of a borrowing notice and certificates by Royal Gold and certain of its subsidiaries.
Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company owns royalties on 118 properties on six continents, including royalties on 21 producing mines and 12 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD" and on the Toronto Stock Exchange under the symbol "RGL." The Company's website is located at www.royalgold.com.
Cautionary "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include the statement regarding the proposed acquisition of IRC. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.
Royal Gold, Inc.
Karen Gross, 303-575-6504
Vice President and Corporate Secretary
Jan 21, 2010
Royal Gold Reports Record Revenue and Free Cash Flow for Fiscal Second Quarter 2010
Quarterly royalty revenue was $34.7 million, up 138% year-over-year
Free cash flow1 was $28.6 million, representing 82% of total revenue and a 149% increase year-over-year
Gold royalties accounted for 84% of second quarter fiscal 2010 revenue
Andacollo transaction completed and commercial production expected by mid-year 2010
Plan of Arrangement with International Royalty Corporation proceeding as expected
Royal Gold, Inc. (NASDAQ: RGLD) (TSX:RGL) today announced net income attributable to Royal Gold stockholders of $9.6 million, or $0.24 per basic share, on record royalty revenue of $34.7 million for the second quarter of fiscal 2010. This compares to net income attributable to Royal Gold stockholders for the second quarter of fiscal 2009 of $21.4 million, or $0.63 per basic share, on royalty revenue of $14.6 million. For the six-month period ended December 31, 2009, royalty revenue was $60.9 million and net income attributable to Royal Gold stockholders was $16.7 million, or $0.41 per basic share. This compares to royalty revenue of $30.7 million and net income, attributable to Royal Gold stockholders, of $27.1 million, or $0.80 per basic share, for the six-month period ended December 31, 2008.
Second quarter and six-month net income attributable to Royal Gold stockholders for fiscal 2009 include the effects of a one-time gain of $31.5 million, or $0.60 per basic share after taxes, resulting from the Company's restructuring of the royalties at the Cortez Pipeline Mining Complex on October 1, 2008, in connection with the Company's acquisition of Barrick Gold's royalty portfolio.
Higher revenues for the second quarter were largely driven by increased production at Taparko, Cortez, Leeville, and Mulatos as well as higher year-over-year gold and copper prices. Gold prices averaged $1,100 per ounce during the quarter, compared with $795 per ounce in the prior year quarter.
Free cash flow for the current quarter was a record $28.6 million, representing 82% of revenues. This was an increase of 149% compared to free cash flow of $11.5 million or 79% of revenues for the prior year comparable quarter.
As of December 31, 2009, the Company had net working capital of $346.6 million. Current assets were $354.4 million (including $316.8 million in cash and equivalents), compared to current liabilities of $7.8 million, resulting in a current ratio of 45 to 1.
"Royal Gold had another great quarter due to strong production at our principal royalty properties and higher metal prices," said Tony Jensen, President and CEO. "These record financial results are prior to receiving any meaningful results from our Peñasquito and Andacollo royalties which are in the construction and commissioning stage. We look forward to the significant role these properties will play in the future growth of the Company as they ramp up to full production in calendar 2010."
RECENT DEVELOPMENTS
Peñasquito
Goldcorp reported that ore throughput rates for the first sulfide processing line have reached operational production levels and construction of the second sulfide processing line is on schedule for completion in the third calendar quarter of 2010. Goldcorp also stated that production of both lead and zinc concentrates has ramped up consistent with expectations and that achievement of commercial production for the sulfide Line 1 and Line 2 remains on track for the third calendar quarter of 2010.
Andacollo
In January 2010, the Company announced the closing of the Andacollo transaction with Teck Resources ("Teck"). Total consideration for the transaction was approximately $218 million in cashand 1.2 million shares of Royal Gold common stock. Royal Gold will receive 75% of the gold produced from the sulfide portion of the Andacollo copper and gold deposit, located in Chile, until 910,000 payable ounces of gold have been sold, after which Royal Gold will receive 50% of all future payable gold production from the property.
Teck reported that ore has been introduced to the mill and shipment of copper concentrate is expected to commence in April of this year. Full commercial production is expected to be reached in the first half of calendar 2010.
Plan of Arrangement with International Royalty Corporation
On December 18, 2009, Royal Gold and International Royalty Corporation ("IRC") announced a Plan of Arrangement ("Arrangement") whereby Royal Gold would acquire all of the issued and outstanding common shares of IRC. Under the Arrangement, IRC shareholders may elect to receive either C$7.45 in cash or 0.1385 common shares of Royal Gold or a combination of both, subject to a maximum of US$350 million in cash and a maximum of 7.75 million common shares of Royal Gold. If IRC shareholders elect to receive more than approximately US$314 million in cash, the number of Royal Gold common shares issued will be reduced on a pro-rated basis until such cash election reaches a maximum of US$350 million. Assuming the maximum share election, the consideration under the Arrangement will consist, on average, of 0.0771 Royal Gold common shares plus US$3.12 in cash for each fully diluted IRC common share, implying 56% share consideration. Assuming the maximum cash election, the consideration under the Arrangement will consist, on average, of 0.0700 Royal Gold common shares plus US$3.48 in cash for each fully diluted IRC common share, implying 51% share consideration.
Royal Gold has entered into voting agreements with all of IRC's directors and senior officers, and with several significant IRC shareholders under which they have agreed to vote their shares in favor of Royal Gold's acquisition of IRC. Collectively, the shareholders subject to the voting agreements represent approximately 34% of IRC's common shares on a fully-diluted basis.
An Interim Order was obtained from the Ontario Superior Court of Justice to conduct a special meeting of the IRC shareholders. The special meeting will be held on February 16, 2010, at 9:00 a.m. MST, at the Inverness Hotel and Conference Center, Evergreen Room, 200 Inverness Drive West, Englewood, Colorado.
Term Loan
On January 21, 2010, Royal Gold announced that it had obtained a new $100 million secured term loan from HSBC Bank USA, National Association, available in connection with the closing of the Arrangement between Royal Gold and IRC. HSBC Securities (USA) Inc. acted as sole lead arranger for the loan.
The loan will mature 18-months from the funding date with principal repayments equal to 10% of the funded amounts scheduled to occur every three months. The interest rate on the loan is LIBOR plus 2.25%. Funding under the $100 million term loan is subject only to delivery of a borrowing notice and certificates by Royal Gold and certain of its subsidiaries which will guarantee the loan.
Taparko
Production has improved at Taparko such that High River has notified the Company that Somita is attempting to satisfy the Completion Test, as defined in the Funding Agreement. The Completion Test commenced on December 1, 2009 and will continue for 90 days.
Pursuant to the Amended and Restated Funding Agreement dated February 22, 2006 (the "Funding Agreement"), between Royal Gold, Inc. and Somita SA ("Somita"), a 90% owned subsidiary of High River and the operator of Taparko, Somita is in breach of certain obligations under the Funding Agreement. As security for the Company's investment in Somita, two of High River's subsidiaries have pledged their equity interests in Somita and High River (West Africa) Ltd., the corporate parent of Somita. This pledge will remain in effect until certain production and performance standards have been attained at the Taparko mine, sufficient to satisfy the Completion Test. Thereafter, if Somita satisfies the requirements of the Completion Test, the pledge of the equity interests in Somita and its corporate parent (High River (West Africa) Ltd.) will terminate and this security will be released.
In addition, Royal Gold obtained as collateral a pledge of shares of certain equity investments in public companies held by High River. The market value of the pledged shares is approximately $59.5 million as of December 31, 2009. The Company's carrying value of its royalty interests at Taparko was approximately $15.3 million as of December 31, 2009. The pledge of High River's equity investments will remain in effect until the satisfaction of certain requirements as provided in the construction contract between Somita and its construction contractor.
SECOND QUARTER PRODUCTION AND REVENUE
Second quarter fiscal 2010 production and revenue for the Company's principal royalty interests are shown in Table 1. For more detailed information about each of our royalty properties, please refer to the Company's most recent Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website located at www.sec.gov, or our website located at www.royalgold.com.
CORPORATE PROFILE
Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company owns royalties on 119 properties on six continents, including royalties on 21 producing mines and 13 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD," and on the Toronto Stock Exchange under the symbol "RGL." The Company's website is located at www.royalgold.com.
Note: Management's conference call reviewing the second quarter results will be held todayat 10:00 a.m. Mountain Time (noon Eastern Time) and will be available by calling (800) 603-2779 (North America) or (973) 200-3960(international), access #50474540. The call will be simultaneously broadcast on the Company's website at www.royalgold.com under the "Presentations" section. A replay of this webcast will be available on the Company's website approximately two hours after the call ends.
Cautionary "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements regarding the ramp up at Peñasquito and Andacollo, the expectation that Peñasquito and Andacollo will play a significant role in the future growth of the Company, the operator's estimate that construction completion and ramp up of the second sulfide circuit at Peñasquito will be attained in the third calendar quarter of 2010 and commercial production will be achieved during the third calendar quarter of 2010, the operator's estimate that commercial production at Andacollo is expected to be reached in the first half of 2010, that the special meeting of IRC's shareholders will be held on February 16, 2010, and the operators' estimates regarding production at the Company's other royalty properties. Factors that could cause actual results to differ materially from the projections include, among others, any delay in the closing or termination of the transaction to acquire the outstanding shares of IRC, precious metals prices, performance of and production at the Company's royalty properties, decisions and activities of the operators of the Company's royalty properties, unanticipated grade, geological, metallurgical, processing or other problems the operators of the mining properties may encounter, delays in the operators securing or their inability to secure necessary governmental permits, changes in operator's project parameters as plans continue to be refined, economic and market conditions, possible liquidity and production problems at Taparko and other royalty properties, the Company's exercise of its rights under the Taparko Funding Agreement, buy-down rights at Malartic, litigation, the ability of the operator to bring the Andacollo project into production as expected, and other subsequent events, as well as other factors described in the Company's Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other filings with the Securities and Exchange Commission. Most of these factors are beyond the Company's ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.
*Free Cash Flow: The Company discloses information on free cash flow and free cash flow as a percentage of revenues in its reporting. Free cash flow is a non-GAAP financial measure. The Company defines free cash flow as operating income plus depreciation, depletion and amortization, non-cash charges, and any impairment of mining assets less non-controlling interests in operating income of consolidated subsidiary. While we believe free cash flow is a useful measure of the Company's performance, we also want to advise that this is not a measure recognized by generally accepted accounting principles. See Schedule A, attached to this press release for a GAAP reconciliation.
1 The Company defines free cash flow, a non-GAAP financial measure, as operating income plus depreciation, depletion and amortization, non-cash charges and impairment of mining assets, if any, less non-controlling interests in operating income from consolidated subsidiary (see, Schedule A).
TABLE 1
Second Quarter Fiscal 2010
Royalty Production and Revenue for Principal Royalty Interests
QUARTER ENDED
DECEMBER 31, 2009
QUARTER ENDED
DECEMBER 31, 2008
PROPERTY
ROYALTY OPERATOR METAL Royalty
Revenue
($ Millions)
Reported
Production 1
Royalty
Revenue
($ Millions)
Reported
Production 1
Cortez GSR1 and GSR2 2
GSR3 2
NVR1 2
Barrick Gold 8.9 124,973 oz. 3.5 65,425 oz.
Taparko TB-GSR1 3
TB-GSR2 3
High River Gold 8.9 32,202 oz. 1.4 7,505 oz.
Robinson 4 3.0% NSR Quadra Gold
Copper 3.6 24,057 oz.
31.7M lbs.
(1.3) 22,844 oz.
29.2M lbs.
Leeville 1.8% NSR Newmont Gold 3.0 150,328 oz. 2.0 138,669 oz.
Mulatos 1.0 - 5.0% NSR 5 Alamos Gold 2.4 43,928 oz. 1.5 38,741 oz.
Siguiri 0.00 - 1.875% NSR 6 AngloGold
Ashanti
Gold 1.6 77,042 oz. 1.2 81,431 oz.
Peñasquito 2.0% NSR Goldcorp Gold
Silver 1.1 28,120 oz.
1.2M oz. 0.3 10,057 oz.
935,784 oz.
Goldstrike 0.9% NSR Barrick Gold 0.6 64,420 oz. 1.8 257,207 oz.
Dolores 3.25% NSR (Au)
2.0% NSR (Ag) Minefinders Gold
Silver 0.4 19,305 oz.
349,248 oz.
0.02 7
-
2,440 7
-
Other Royalty
Properties 8
- - Various 4.2 N/A 4.2 N/A
Total Royalty Revenue 34.7 14.6
FOOTNOTES
1
Reported production relates to the amount of metal sales that are subject to our royalty interests for the quarters ended December 31, 2009 and December 31, 2008, as reported to us by the operators of the mines.
2
Royalty percentages: GSR1 and GSR2 – 0.40 to 5.0% (sliding-scale); GSR3 – 0.71%; NVR1 – 0.39%. As of October 1, 2008, the GSR2 royalty percentage was restructured to match the current GSR1 rate.
3
Royalty percentages: TB-GSR1 – 15.0%; TB-GSR2 – 4.3% when the average monthly gold price ranges between $385 and $430 per ounce. Outside of this range, the royalty rate is calculated by dividing the average monthly gold price by 100 for gold prices above $430 per ounce, or by dividing the average monthly gold price by 90 for gold prices below $385 per ounce (e.g., a $900 per ounce gold price results in a rate of 900/100 = 9.0%). Two subsequent royalties consist of a 2.0% GSR perpetual royalty ("TB-GSR3"), applicable to gold production from defined portions of the Taparko-Bouroum project area, and a 0.75% GSR milling royalty ("TB-MR1"). The TB-MR1 royalty applies to ore that is mined outside of the defined area of the Taparko-Bouroum project that is processed through the Taparko facilities up to a maximum of 1.1 million tons per year. Both the TB-GSR3 and TB-MR1 royalties commence once TB-GSR1 and TB-GSR2 have ceased. Both TB-GSR1 and TB-GSR2 continue until either production reaches 804,420 ounces of gold, or payments totaling $35 million under TB-GSR1 are received, whichever comes first. As of December 31, 2009, Royal Gold has recognized approximately $20.1 million in royalty revenue under TB-GSR1 that is attributable to cumulative production of approximately 142,000 ounces of gold.
4
Revenues consist of provisional payments for concentrates produced during the current period and final settlements for prior production periods. A negative figure reflects an amount that is offset against future metal sales subject to our royalty.
5
The Company's sliding-scale royalty is subject to a 2.0 million ounce cap on gold production. There has been approximately 506,000 ounces of cumulative production as of December 31, 2009.
6
The Company's royalty is capped once payments of approximately $12.0 million have been received. As of December 31, 2009, approximately $4.9 million remains unrecognized under the cap. NSR sliding-scale schedule (price of gold per ounce - royalty rate as of 9/30/09): $0 to $495.71 – 0.00%; $495.72 to $566.54 – 0.625%; $566.55 to $601.94 – 0.875%; $601.95 to $637.35 – 1.125%; $637.36 to $672.76 – 1.50%; $672.77 and above – 1.875%. The sliding-scale schedule is adjusted based on the average of the United States, Australian and Canadian Consumer Price Indices on an annual basis. The most current rate available is reflected herein.
7
Royalty was acquired in October 2007 and production from the 1.25% royalty on gold commenced during the fourth quarter of calendar 2008. The Company's 2.0% NSR royalty on gold and silver became effective on May 1, 2009, once commercial production was achieved. Production volumes for Dolores are based upon Royal Gold's estimates as actual production data was not available as of the time of this press release.
8
"Other" includes all of the Company's non-principal producing royalties as of December 31, 2009 and 2008. Individually, no royalty included within "Other" contributed greater than 5% of our total royalty revenue for either period.
ROYAL GOLD, INC.
Consolidated Balance Sheets
(Unaudited, in thousands except share data)
December 31, June 30,
2009 2009
(Unaudited)
Current assets
Cash and equivalents $ 316,837 $ 294,566
Royalty receivables 32,440 20,597
Income tax receivable 4,279 2,372
Deferred tax assets 158 166
Prepaid expenses and other 720 1,007
Total current assets 354,434 318,708
Royalty interests in mineral properties, net 435,311 455,966
Restricted cash – compensating balance - 19,250
Inventory – restricted 9,943 10,622
Other assets 4,665 5,378
Total assets $ 804,353 $ 809,924
Current liabilities
Accounts payable $ 3,575 $ 2,403
Dividends payable 3,684 3,259
Other 545 527
Total current liabilities 7,804 6,189
Net deferred tax liabilities 21,224 23,371
Chilean loan facility - 19,250
Other long-term liabilities 831 703
Total liabilities 29,859 49,513
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value, authorized 100,000,000 shares; and issued 40,741,654 and 40,480,311 shares, respectively 407 405
Additional paid-in capital 710,478 702,407
Accumulated other comprehensive income (loss) 68 (80 )
Accumulated earnings 56,503 46,709
Treasury stock, at cost (74,430 and 0 shares, respectively) (3,557 ) -
Total Royal Gold stockholders' equity 763,899 749,441
Non-controlling interests 10,595 10,970
Total stockholders' equity 774,494 760,411
Total liabilities and stockholders' equity $ 804,353 $ 809,924
ROYAL GOLD, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited, in thousands except share data)
For The Three Months Ended
December 31, December 31,
2009 2008
Royalty revenues $ 34,740 $ 14,622
Costs and expenses
Costs of operations (exclusive of depreciation, depletion and amortization shown separately below) 1,638 613
General and administrative 2,972 2,122
Exploration and business development 2,828 963
Depreciation, depletion and amortization 12,101 8,537
Total costs and expenses 19,539 12,235
Operating income 15,201 2,387
Gain on royalty restructuring - 31,500
Interest and other income 150 166
Interest and other expense (166 ) (357 )
Income before income taxes 15,185 33,696
Income tax expense (4,833 ) (11,998 )
Net income 10,352 21,698
Less: Net income attributable to non-controlling interests (737 ) (301 )
Net income attributable to Royal Gold stockholders $ 9,615 $ 21,397
Net income $ 10,352 $ 21,698
Adjustments to comprehensive income, net of tax
Unrealized change in market value of available for sale securities 94 240
Comprehensive income $ 10,446 $ 21,938
Comprehensive income attributable to non-controlling interests (737 ) (301 )
Comprehensive income attributable to Royal Gold stockholders $ 9,709 $ 21,637
Net income per share attributable to Royal Gold stockholders:
Basic earnings per share $ 0.24 $ 0.63
Basic weighted average shares outstanding 40,578,426 33,961,206
Diluted earnings per share $ 0.23 $ 0.62
Diluted weighted average shares outstanding 40,962,137 34,375,388
Cash dividends declared per common share $ 0.09 $ 0.08
ROYAL GOLD, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited, in thousands except share data)
For The Six Months Ended
December 31, December 31,
2009 2008
Royalty revenues $ 60,853 $ 30,701
Costs and expenses
Costs of operations (exclusive of depreciation, depletion and amortization shown separately below) 2,839 1,460
General and administrative 5,167 3,793
Exploration and business development 3,713 1,637
Depreciation, depletion and amortization 23,179 12,960
Total costs and expenses 34,898 19,850
Operating income 25,955 10,851
Gain on royalty restructuring - 31,500
Interest and other income 1,903 983
Interest and other expense (521 ) (523 )
Income before income taxes 27,337 42,811
Income tax expense (7,864 ) (15,127 )
Net income 19,473 27,684
Less: Net income attributable to non-controlling interests (2,733 ) (538 )
Net income attributable to Royal Gold stockholders $ 16,740 $ 27,146
Net income $ 19,473 $ 27,684
Adjustments to comprehensive income, net of tax
Unrealized change in market value of available for sale securities 147 (72 )
Comprehensive income $ 19,620 $ 27,612
Comprehensive income attributable to non-controlling interests (2,733 ) (538 )
Comprehensive income attributable to Royal Gold stockholders $ 16,887 $ 27,074
Net income per share attributable to Royal Gold stockholders:
Basic earnings per share $ 0.41 $ 0.80
Basic weighted average shares outstanding 40,540,283 33,943,851
Diluted earnings per share $ 0.41 $ 0.79
Diluted weighted average shares outstanding 40,942,564 34,343,827
Cash dividends declared per common share $ 0.17 $ 0.15
ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
For The Six Months Ended
December 31, December 31,
2009 2008
Cash flows from operating activities:
Net income $ 19,473 $ 27,684
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 23,179 12,960
Gain on distribution to non-controlling interest (1,742 ) -
Deferred tax benefit (1,446 ) (2,541 )
Non-cash employee stock compensation expense 3,087 1,551
Gain on royalty restructuring - (31,500 )
Tax benefit of stock-based compensation exercises (739 ) (253 )
Changes in assets and liabilities:
Royalty receivables (13,416 ) 1,484
Prepaid expenses and other assets 634 (289 )
Accounts payable 1,417 2,236
Income taxes (receivable) payable (2,007 ) 11,372
Other (557 ) (499 )
Net cash provided by operating activities $ 27,883 $ 22,205
Cash flows from investing activities:
Acquisition of royalty interests in mineral properties - (186,110 )
Proceeds from royalty restructuring - 31,500
Change in restricted cash – compensating balance 19,250 (3,500 )
Proceeds on sale of Inventory - restricted 3,108 -
Deferred acquisition costs (343 ) (62 )
Other (81 ) (15 )
Net cash provided by (used in) investing activities $ 21,934 $ (158,187 )
Cash flows from financing activities:
Tax benefit of stock-based compensation exercises 739 253
(Prepayment of) borrowings under Chilean loan facility (19,250 ) 3,500
Common stock dividends (6,522 ) (4,768 )
Distribution to non-controlling interests (3,108 ) -
Proceeds from issuance of common stock 594 723
Debt issuance costs (2 ) (721 )
Other 3 -
Net cash used in financing activities $ (27,546 ) $ (1,013 )
Net increase (decrease) in cash and equivalents 22,271 (136,995 )
Cash and equivalents at beginning of period 294,566 192,035
Cash and equivalents at end of period $ 316,837 $ 55,040
Non-cash investing and financing activities:
Royalty restructuring $ (1,572 ) $ -
Treasury stock $ (3,557 ) $ -
SCHEDULE A
Non-GAAP Financial Measures
The Company computes and discloses free cash flow and free cash flow as a percentage of revenues. Free cash flow is a non-GAAP financial measure. Free cash flow is defined by the Company as operating income plus depreciation, depletion and amortization, non-cash charges, and any impairment of mining assets, less non-controlling interests in operating income of consolidated subsidiary. Management believes that free cash flow and free cash flow as a percentage of revenues are useful measures of performance of our royalty portfolio. Free cash flow identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, and shareholder dividends. Free cash flow, as defined, is most directly comparable to operating income in the Statements of Operations. Below is the reconciliation to operating income:
ROYAL GOLD, INC.
Free Cash Flow Reconciliation
For the Three Months Ended
December 31,
(Unaudited, in thousands)
2009 2008
Operating income $ 15,201 $ 2,387
Depreciation, depletion and amortization 12,101 8,537
Non-Cash employee stock compensation 1,937 915
Non-controlling interest in operating income of consolidated subsidiary (611 ) (301 )
Free cash flow $ 28,628 $ 11,538
For the Six Months Ended
December 31,
(Unaudited, in thousands)
2009 2008
Operating income $ 25,955 $ 10,851
Depreciation, depletion and amortization 23,179 12,960
Non-cash employee stock compensation 3,087 1,551
Non-controlling interest in operating income of consolidated subsidiary (991 ) (538 )
Free cash flow $ 51,230 $ 24,824
Royal Gold, Inc.
Karen Gross, Vice President and Corporate Secretary
(303) 575-6504
2/4/2010 8:00:00 AM
NICE <<<<>>>>
http://www.b2i.cc/Document/856/101255.pdf
Royal Gold agrees to buy International Royalty
By: Liezel Hill
18th December 2009
TORONTO (miningweekly.com) – Nasdaq-listed royalty firm Royal Gold has agreed to buy International Royalty Corporation (IRC) in a friendly deal worth C$749-million, the companies announced on Friday.
Shares in IRC rose on the news, and were up 4,64% in Toronto by 9:44.
Royal Gold will offer either C$7.451 in cash or 0.1385 in shares, or a combination of the two, for each share of IRC, topping an earlier hostile bid from Canada's Franco-Nevada Corporation.
All three companies provide upfront funds to mining and development firms in need of cash for project development, in return for a share of future revenue streams
Franco-Nevada said earlier this month it would offer C$6.75 a share in cash for IRC, which owns 84 royalties, including a net smelter return royalty on Vale Inco's Voisey's Bay nickel mine, in Canada, and a sliding scale royalty on the Chilean portion of Barrick Gold's massive Pascua Lama project.
News of a rival bid for IRC first emerged on Tuesday this week, when Franco-Nevada filed the circular for its offer, disclosuring that IRC had received another "very attractive" offer.
IRC's board, management and shareholders representing almost 27% of the company's shares have already agreed to back the Royal Gold transaction, the companies said on Friday.
The acquisition requires approval by two-thirds of IRC shareholders, and CEO Douglas Silver said on a conference call that he expects the deal could close in February.
Silver was confident IRC had secured the best offer available.
“This has been a process that we have been involved with for well over a month, and everybody that was interested always had the opportunity to put their best bid forward, and it's clear that Royal gave us the best offer,” he said.
“We were comfortable with it because it wasn't as though there wasn't a process going on, and this came out of the blue. It was an organised process.”
If the Royal Gold transaction succeeds, the combined company's portfolio would include 31 producing royalty properties, 20 development stage properties, and 143 evaluation and exploration projects, mainly in Canada, Chile and Australia
"The combination of Royal Gold and IRC brings together a portfolio of nearly 200 royalty interests and creates a combined company that would hold royalty interests on some of the highest quality mines in the world,” said Royal Gold CEO Tony Jensen.
“Seldom will we have the opportunity to acquire this many royalties in one spot,” he told analysts and investors.
The companies are already pretty familiar with the other's assets, because they had, at one point or another, considered many of the royalties for acquisition themselves, commented Silver.
“So hopefully they will enjoy ours as much as we will enjoy theirs,” he quipped.
Because of the Voisey's Bay nickel royalty, IRC has not enjoyed the precious-metals exposure that companies like Franco-Nevada and Royal Gold have built up.
However, this will change when Barrick starts up the large Pascua Lama gold/silver mine, which is scheduled to begin production in 2013.
By that point, the combined company would generate an estimated 74% of revenue from precious metals, Jensen said.
Under the plan of arrangement, shareholders can opt for cash or shares, or a combination of the two, subject to a cap of $350-million on the cash portion and a maximum of 7.75-million Royal Gold being issued.
The offer represents a premium of about 70% over IRC's 20-day volume-weighted average trading price on the TSX up to December 4, 2009, which was the last trading day before Franco-Nevada announced its bid.
IRC has also agreed to pay a $32-million break fee if the deal is not completed, which could prove a deterrent to Franco-Nevada.
Franco-Nevada did not comment on the Royal Gold offer.
Shares in IRC rose C$0.34, to C$7.66 apiece in early trade on Friday, surpassing the cash value of both Royal Gold and Franco-Nevada's offers, which may indicate investors expect a higher bid.
Franco-Nevada was also up 3.56%, to C$27.03 a share by 9:48, and Royal Gold gained 1.91%, to trade at $47.90 in New York.
Edited by: Liezel Hill
Royal Gold Reports Record Revenue and Free Cash Flow for Fiscal First Quarter 2010
ROYAL GOLD, INC. (NASDAQ:RGLD)(TSX:RGL), a leading precious metals royalty company, today announced net income attributable to Royal Gold stockholders of $7.1 million, or $0.18 per basic share, on record royalty revenue of $26.1 million for the first quarter of fiscal 2010. This compares to net income attributable to Royal Gold stockholders for the first quarter of fiscal 2009 of $5.7 million, or $0.17 per basic share, on royalty revenue of $16.1 million.
Higher revenues were largely driven by increased production at Taparko and Cortez, commencement of production at Dolores, new contributions from royalties obtained in the Barrick transaction and higher year-over-year gold prices. The increase in royalty revenue was partially offset by a decrease in copper prices and a decrease in production at Robinson. Higher net income attributable to Royal Gold stockholders resulted from increased royalty revenues, partially offset by higher depletion charges for newer properties that have been added to the Company’s royalty portfolio.
Free cash flow for the current quarter was a record $22.6 million, representing 87% of revenues, which was an increase of 70% compared to free cash flow of $13.3 million or 83% of revenues for the prior year comparable quarter.
As of September 30, 2009, the Company had net working capital of $328.3 million. Current assets were $333.7 million (including $307.5 million in cash and equivalents), compared to current liabilities of $5.4 million, resulting in a current ratio of 62 to 1.
“Our record first quarter results reflect solid performance from our expanded portfolio of producing royalties,” said Tony Jensen, President and CEO. “Our long-term strategy of increased revenue diversification is now paying off in the form of strong quarterly revenue which we have seen over the past several quarters. And, we are only a few months away from adding initial production from the first sulfide circuit at Peñasquito, an operation that we believe will have a significant impact on our revenue stream when it reaches full production.”
PROPERTY DEVELOPMENTS
Peñasquito
In October 2009, Goldcorp announced that the first lead and zinc concentrates from the initial sulfide circuit had been produced and the first shipment to the smelter is planned for later in calendar 2009. Goldcorp expects to attain commercial production in the first quarter of calendar 2010. In addition, Goldcorp reported that construction of the second sulfide circuit is well underway and progressing toward planned completion in the third quarter of calendar 2010.
Royalty Restructuring at the Troy Mine
In October 2009, Genesis, Inc. (“Genesis”), a wholly-owned subsidiary of Revett Silver Company, and Royal Gold completed a restructuring of the Company’s royalties at the Troy mine. Royal Gold previously held three gross smelter return (“GSR”) royalties. The initial 7.0% GSR royalty was satisfied under a revenue cap of $10.5 million. The remaining two royalties, which were scheduled to produce royalty revenue in mid-2012, were restructured into a perpetual 3.0% GSR royalty which will take effect on July 1, 2010. Royal Gold paid Genesis $1.5 million in consideration for the restructured royalty. The new royalty applies to all production from the Troy mine in addition to an expanded area of interest in the vicinity of the mine.
First quarter fiscal 2010 production and revenue for the Company’s principal royalty interests are shown in Table 1. For more detailed information about each of our royalty properties, please refer to the Company’s most recent Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, or our website located at www.royalgold.com.
CORPORATE PROFILE
Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company owns royalties on 118 properties on six continents, including royalties on 21 producing mines and 12 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol “RGLD,” and on the Toronto Stock Exchange under the symbol “RGL.” The Company’s website is located at www.royalgold.com.
Note: Management’s conference call reviewing the first quarter results will be held today at 10:00 a.m. Mountain Time (noon Eastern Time) and will be available by calling (800) 603-2779 (North America) or (973) 200-3960 (international), access #84869903. The call will be simultaneously broadcast on the Company’s website at www.royalgold.com under the “Presentations” section. A replay of this webcast will be available on the Company’s website approximately two hours after the call ends
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