NASDAQ$RGLD

Royal Gold Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported net income and increased revenue due to higher stream revenue and precious metal prices.

Royal Gold reported a solid operating quarter with a 26.7% increase in revenue to $123.6 million and net income of $41.3 million, or $0.63 per share. The company strengthened its balance sheet by repaying $35.0 million on its revolving credit facility and raised its calendar year dividend. Positive developments were seen at the Khoemacau project, Mount Milligan, and Rainy River.

  • Revenue increased by 26.7% to $123.6 million.
  • Operating cash flow increased by 33.0% to $78.3 million.
  • Volume of gold equivalent ounces (GEOs) increased by 4.9% to 83,500.
  • Dividends paid increased by 6.1% to $17.4 million.

Headline financials

Total Revenue

$124M

Previous: $97.6M+26.7%
EPS (adj)

$0.63

Previous: $0.36+75.0%
Cash Dividends Declared Per Share

$17.4M

No prior period
Free Cash Flow

$41.3M

Previous: $23.6M+75.2%
Net Income

$41.3M

Previous: $23.6M+75.2%
Operating Income

$53.3M

Previous: $31.4M+69.5%
Gross Profit

$61.6M

Previous: $79.4M-22.4%
Cash & Equivalents

$80.5M

Previous: $157M-48.6%
Total Assets

$2.55B

Previous: $2.68B-4.5%
Stock-Based Comp

$1.54M

Previous: $1.63M-5.4%

Revenue & EPS history

Royal Gold · Revenue · Quarterly

$124M

Q2 2020+26.7%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Newmont expects a full year of operations at Peñasquito with higher grades, leading to significant production.

Tailwinds

  • Higher grades expected at Peñasquito.
  • Full year of operations expected at Peñasquito.
  • Mining rates expected to average in excess of 4,000 tonnes per day at Wassa.
  • Wassa expected to deliver grades of 3.78 grams per tonne.
  • Mill availability averaged 89% for the quarter and gold recovery averaged 91% at Rainy River

Headwinds

  • Impact of the strike on Royal Gold is expected to be reflected in the Company’s financial results beginning with the quarter ended June 30, 2020.
  • Centerra expects a material reduction in the mineral reserves and mineralized material at Mount Milligan
  • Excavation advance slower than planned at Khoemacau.
  • There is impact of the strike on Royal Gold is expected to be reflected in the Company’s financial results beginning with the quarter ended June 30, 2020, as gold deliveries from Andacollo are generally received within six months of concentrate shipment.
  • It is unclear at this point what impact, if any, the results of this work will have on the carrying value of Royal Gold’s stream interest at Mount Milligan.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.5%

Avg return

Earnings day

+0.8%

Avg return

5 days after

-0.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+23.1%

Q2 2016

Best reaction

-24.4%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%+3.5%-13.0%
Q4 2025-2.3%+3.7%-22.5%
Q3 2025-2.2%+8.1%+16.4%
Q1 2025-2.2%-7.3%-3.7%
Q4 2024+4.3%-2.8%+0.5%
Q3 2024-0.6%-3.2%-2.7%
Q2 2024-1.0%+3.3%+3.8%
Q1 2024+1.1%+2.0%-0.2%
Q4 2023+2.7%-0.3%+3.7%
Q3 2023+2.2%+4.8%+17.7%
Q2 2023-2.7%-2.1%-3.7%
Q1 2023+4.6%+3.0%-9.9%
Q4 2022-2.5%-3.2%-0.4%
Q3 2022-9.8%-1.3%+17.1%
Q2 2022-1.6%+0.4%-13.3%
Q1 2022+1.0%-5.8%-11.6%
Q4 2021+9.0%+7.4%+24.2%
Q3 2021+3.6%+3.1%+5.8%
Q2 2021-1.5%+3.4%-0.9%
Q1 2021+1.0%-1.1%-9.4%
Q4 2020-0.5%-10.4%-10.2%
Q3 2020+5.9%+3.4%-4.6%
Q2 2020-2.1%-3.9%-5.8%
Q1 2020+2.7%+1.4%+2.6%
Q4 2019+5.9%+7.1%+8.7%
Q3 2019-6.3%-6.3%+1.1%
Q2 2019-3.0%-1.7%+1.5%
Q1 2019-1.1%-2.0%-5.6%
Q4 2018-0.4%-1.2%-11.0%
Q3 2018+0.5%+0.2%+1.9%
Q2 2018+0.2%+1.6%+0.0%
Q1 2018+3.0%+5.6%-1.5%
Q4 2017+2.6%+2.2%+9.8%
Q3 2017+7.0%+10.3%+10.5%
Q2 2017-1.9%-0.8%-9.3%
Q1 2017+9.7%+8.4%+2.4%
Q4 2016-0.5%-1.8%-10.5%
Q3 2016+7.5%
Q2 2016+23.1%
Q1 2016-24.4%
Q4 2015+2.4%
Q3 2015-0.4%
Q2 2015-7.7%
Q1 2015-9.3%
Q4 2014+2.9%
Q3 2014+0.9%
Q2 2014+0.6%
Q1 2014-2.2%
Q4 2013+12.5%
Q3 2013+0.9%
Q2 2013-1.4%
Q1 2013-3.8%
Q4 2012-4.2%
Q3 2012+0.1%
Q2 2012-5.0%
Q1 2012-1.3%
Q4 2011+1.8%
Q4 2009+1.8%
Q3 2010+3.7%
Q3 2011+3.7%
Q2 2011-1.7%
Q2 2010-1.7%
Q1 2011+3.7%
Q4 2010+3.7%
Q1 2010+3.7%

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