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Mar 31, 2020
Royal Gold Q3 2020 Earnings Report
Royal Gold delivered a solid quarter of operating and financial results, managing the business remotely amid COVID-19 challenges.
Key Takeaways
Royal Gold reported a net income of $38.6 million, or $0.59 per share, on revenue of $136.4 million for the fiscal third quarter ended March 31, 2020. Adjusted net income was $44.3 million, or $0.68 per share.
Revenue of $136.4 million, an increase of 24.3%
Operating cash flow of $99.7 million, an increase of 28.7%
Volume of 86,200 GEOs, an increase of 2.4%
Dividends paid of $18.4 million, an increase of 5.7%
Forward Guidance
Royal Gold is closely monitoring the potential impacts of COVID-19 on its producing properties and will manage its credit facility balance accordingly as the environment evolves. The uncertain economic outlook may present new business development opportunities, and Royal Gold is well-positioned to take advantage of them.
Positive Outlook
- Strong balance sheet
- Continued access to liquidity
- Potential new business development opportunities
- High margin provided operating cash flow of approximately $100 million during the quarter
- Average price of $1,583 per gold ounce, an increase of 21.4%
Challenges Ahead
- Drew $200 million on revolving credit facility as a precautionary liquidity measure
- Difficult to confirm the potential revenue impact of future or ongoing suspensions
- Operations at Peñasquito were placed on care and maintenance on April 12 due to a Mexican federal government decree
Historical Earnings Impact
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Avg. Return Before/After Earnings
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