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Jun 30, 2023

Royal Gold Q2 2023 Earnings Report

Royal Gold's portfolio provided solid cash flow, and the company repaid debt and grew liquidity.

Key Takeaways

Royal Gold reported a net income of $63.4 million, or $0.97 per share, on revenue of $144.0 million. The company repaid $100 million of its revolving credit facility and grew its liquidity to over $700 million. They also extended the term of their $1 billion revolving credit facility to mid-2028.

Revenue of $144.0 million

Operating cash flow of $107.9 million

Earnings of $63.4 million

Adjusted EBITDA margin of 80%

Total Revenue
$144M
Previous year: $146M
-1.6%
EPS
$0.88
Previous year: $0.81
+8.6%
Dividends paid
$0.375
Previous year: $0.35
+7.1%
Gross Profit
$81M
Previous year: $77.2M
+4.9%
Cash and Equivalents
$106M
Previous year: $281M
-62.2%
Free Cash Flow
$105M
Previous year: $120M
-12.4%
Total Assets
$3.44B
Previous year: $2.85B
+20.6%

Royal Gold

Royal Gold

Royal Gold Revenue by Segment

Forward Guidance

Royal Gold reaffirmed its 2023 guidance for GEO sales, DD&A expense per GEO, and effective tax rate. However, GEO sales may come in around the low end of the guidance range if operations at Peñasquito remain suspended.

Challenges Ahead

  • Total GEO sales may come in around the low end of the 2023 guidance range if operations at Peñasquito remain suspended.
  • The contribution from the potential acquisition of the Serrote and Santa Rita royalty acquisitions is not included in the 2023 guidance for sales, DD&A and effective tax rate.

Revenue & Expenses

Visualization of income flow from segment revenue to net income