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Royal Gold logs net income of $63.4 million in second quarter, maintains annual guidance

Kitco Media
By Vladimir Basov
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Updated
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(Kitco News) - Precious metals stream and royalty company Royal Gold (NASDAQ: RGLD) yesterday announced Q2 2023 revenue of $144.0 million (Q2 2022: $146.4 million) and operating cash flow of $107.9 million (Q2 2022: $120.2 million).

The company said that the decrease in total revenue in the second quarter resulted primarily from lower gold sales at Andacollo, lower copper sales at Mount Milligan and lower gold and silver production attributable to its interest at Peñasquito.

“The decrease in operating cash flow was primarily due to higher interest payments on amounts outstanding under our revolving credit facility and lower royalty revenue, compared to the prior year period,” it added.

The company also reported Q2 2023 net income of $63.4 million or $0.97 per share (Q2 2022: net income of $71.1 million or $1.08 per share), while adjusted net income was $57.2 million or $0.88 per share (Q2 2022: adjusted net income of $54 million or $0.81 per share).

Royal Gold explained that the decrease in net income was primarily attributable to higher debt-related interest expense.

Importantly, the company informed that there is no change to previously issued guidance for sales of 320,000 to 345,000 gold equivalent ounces (GEOs) for 2023.

“However, if operations at Peñasquito remain suspended through the remainder of 2023, and absent other unforeseen events at our producing properties, total GEO sales may come in around the low end of the 2023 guidance range,” the company said in a press release.

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 June 30, 2023, the company owned interests on 181 properties on five continents, including interests on 40 producing mines and 20 development stage projects.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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