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Jun 30, 2024
Royal Gold Q2 2024 Earnings Report
Royal Gold had an excellent quarter marked by near-record revenue and increased operating cash flow and earnings.
Key Takeaways
Royal Gold reported a strong second quarter with net income of $81.2 million, or $1.23 per share, on revenue of $174.1 million. The company's portfolio performed well, benefiting from record high quarterly gold prices. Royal Gold repaid $100 million of debt during the quarter and acquired additional royalty interests at the Back River Gold District for $51 million.
Revenue reached $174.1 million, accompanied by operating cash flow of $113.5 million and earnings of $81.2 million.
Adjusted EBITDA margin remained high at 81%.
The company repaid $100 million of debt, reducing total debt to $50 million and returning the balance sheet to a net cash position.
A quarterly dividend of $0.40 per share was paid, reflecting a 7% increase over the prior year.
Forward Guidance
Royal Gold did not provide specific forward guidance in this report. The report highlights ongoing optimization and expansion projects at various properties, which are expected to contribute to future production and revenue.
Positive Outlook
- Water restrictions at Andacollo are improving and expected to continue improving in the second half of 2024.
- Khoemacau mine expansion project aims to increase production capacity to 130,000 tonnes of copper by 2028.
- Pueblo Viejo is shifting to recovery rate optimization in the second half of 2024.
- Peñasquito expects higher gold grades from the Peñasco pit in the December 2024 quarter.
- Bellevue expects to grow production by increasing underground ore movement and processing capacity.
Challenges Ahead
- Production at the Andacollo mine in Chile continues to be impacted by low water availability.
- Pueblo Viejo production was flat compared to the prior quarter.
- Delays in the delivery of metals from operators
Historical Earnings Impact
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Avg. Return Before/After Earnings
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