Royal Gold Profit Helped By Tax Benefit
Royalty and streaming company Royal Gold Inc. (Nasdaq: RGLD) reports net income of $23.6 million, or 36 cents per share, in its fiscal second quarter that ended Dec. 31, a turnaround from a loss of $14.8 million, or 23 cents, in the same period a year earlier. The result beat analyst expectations primarily due to new guidance from the Internal Revenue Service and Treasury; otherwise earnings would have been in line with expectations, says BMO Capital Markets. Royal Gold’s earnings rose even though revenue fell to $97.6 million from $114.3 million in the prior-year. The company blames the decrease on lower gold, silver and copper prices, as well as lower overall sales and production. Lower gold-stream sales from Andacollo and Pueblo Viejo were partially offset by higher gold and copper sales from Mount Milligan and initial contributions from Rainy River, while a decrease in royalty revenue was due to lower production at Peñasquito and Cortez, Royal Gold says. The company also says it recognized a second-quarter income-tax benefit of $2.1 million, compared to an expense of $48.4 million a year earlier. Royal Gold reports volume of 79,600 gold-equivalent ounces, an 11.3% decline. “Our second-quarter consolidated operating performance was consistent with our guidance,” says Tony Jensen, president and chief executive officer.