Royal Gold Reports Profit, Planned Retirement Of CEO
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Tony Jensen, president and CEO, has advised the board of directors that he plans to step down by the end of the first calendar quarter of 2020, the company said.
As for the recently completed fiscal third quarter, the company listed net income of $28.8 million, or 44 cents per share, compared to a year-ago loss of $153.4 million.
Revenue in the quarter was $109.8 million, down from $116 million a year earlier. The decrease was due to lower gold, silver and copper prices, as well as lower stream revenue due to a decrease in gold and copper sales at Mount Milligan, the company said. This was partly offset by higher gold and silver sales at Pueblo Viejo and higher gold sales at Andacollo due to timing of deliveries.
Royal Gold reported quarterly volume of 84,200 gold-equivalent ounces, a year-over-year decrease of 3.6%. The average gold price fell 1.9% to $1,304 ounce.
Jensen cited “several positive developments” in the portfolio of the royalty and streaming company.
“Most notably, we were pleased that amendments were granted to the Mount Milligan environmental assessment certificate that should relieve water supply constraints on mill operations, which Centerra expects to return to full capacity starting mid-May,” he said. “We were also pleased to see that improvements at Rainy River continued, with mill availability increasing to 89% and gold recovery at 90% for the quarter.”
Jensen joined Royal Gold as its president and chief operating officer in 2003, was elected as a director in 2004, and has been president and CEO since 2006. During his tenure, he led the company to a 13-fold increase in market valuation, Royal Gold said.
“After 35 years pursuing an immensely gratifying career in the mining business, I look forward to time with my family and focusing energy on supporting others,” stated Mr. Jensen. He later added, “I have total confidence that the management team will continue to grow the company’s value based on the solid foundation that has been built over Royal Gold’s first 38 years.”