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(Kitco News) - On Wednesday, precious metals stream and royalty company Royal Gold (NASDAQ: RGLD) reported production of 90,200 gold equivalent ounces in Q1 2023, 4% higher than the prior year period.
The company said it recorded Q1 2023 net income and comprehensive income attributable to Royal Gold stockholders of $63.9 million, or $0.97 per basic and diluted share, as compared to net income of $65.7 million, or $1.00 per basic and diluted share, in Q1 2022.
Royal Gold explained that the decrease in net income was primarily attributable to higher debt-related interest expense.
The company added it recognized total revenue of $170.4 million in the first quarter, comprised of stream revenue of $115.0 million and royalty revenue of $55.4 million at an average gold price of $1,890 per ounce, an average silver price of $22.55 per ounce and an average copper price of $4.05 per pound.
This is compared to total revenue of $162.4 million in the prior year period, comprised of stream revenue of $105.3 million and royalty revenue of $57.1 million, at an average gold price of $1,877 per ounce, an average silver price of $24.01 per ounce and an average copper price of $4.53 per pound.
"The increase in total revenue resulted primarily from higher gold and copper sales at Mount Milligan, higher gold production attributable to Royal Gold’s interest at Cortez as a result of the newly acquired royalties, and higher silver sales at Khoemacau due to the ramp up. The increase was offset by lower gold sales at Andacollo and lower gold and silver production at Peñasquito compared to the prior year period," the company said.
"Our first quarter provided a solid start to 2023," commented Bill Heissenbuttel, President and CEO of Royal Gold. "Steady portfolio performance drove strong revenue and operating cash flow, which allowed us to repay $75 million of our outstanding revolving credit facility balance while enhancing our strong liquidity position."
"We saw some positive developments from within the portfolio during the quarter," continued Mr. Heissenbuttel, "including the receipt of first revenue from King of the Hills, the first full quarter of sustained production at nameplate capacity at Khoemacau, a significant increase in reserves and resources at Xavantina, increases in reserves at Pueblo Viejo and Cortez, and the extension of production through 2044 at Pueblo Viejo. Continued contributions from these and other portfolio assets, combined with the current strong metal price environment, provide us with the financial strength and liquidity to remain competitive in our pursuit of new business opportunities."
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 March 31, 2023, 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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