(Kitco News) - Royalty and stream company Royal Gold (NASDAQ: RGLD) yesterday reported net income of $239.0 million for the year ended December 31, 2022 ("2022"), on revenue of $603.2 million and operating cash flow of $417.3 million. Adjusted net income was $226.1 million.
In a statement, the company said that production volume of 335,100 gold equivalent ounces ("GEOs") for 2022 was within the guidance range of 315,000 to 340,000 GEOs.
In 2022, the company recognized total revenue of $603.2 million, which is comprised of stream revenue of $417.8 million and royalty revenue of $185.4 million, compared to total revenue of $653.6 million in 2021, which is comprised of stream revenue of $436.3 million and royalty revenue of $217.3 million.
The company explained that the decrease in total revenue in 2022 resulted primarily from lower gold sales at Andacollo, lower gold and silver sales at Pueblo Viejo and lower gold production at Cortez and Peñasquito.
In 2022, the company recorded net income attributable to Royal Gold stockholders of $239.0 million, or $3.64 per basic share and $3.63 per diluted share, as compared to net income of $274.0 million, or $4.17 per basic and diluted share in 2021.
"The decrease in net income was primarily due to lower revenue and higher interest expense as a result of a higher outstanding balance and interest rates under the revolving credit facility as compared to the prior period," the company said.
President and CEO Bill Heissenbuttel commented, "Our portfolio performed well in 2022. Despite the expected fall in GEO production, we achieved our GEO guidance and we saw mine life extensions at Mount Milligan and Rainy River, as well as advances at several other projects within the portfolio that are expected to provide further organic growth in the near to medium term.
"Our margins remained strong throughout the year, and our unique business model continued to provide shareholders with precious metal leverage without direct exposure to cost inflation."
Royal Gold said it expects stream segment sales of 54,000 to 59,000 GEOs for the quarter ended March 31, 2023, and expects to issue guidance for 2023 GEO sales, depreciation, depletion and amortization expense, and effective tax rate early in the second quarter of 2023.
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 December 31, 2022, the company owned interests on 182 properties on five continents, including interests on 40 producing mines and 19 development stage projects.
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