Royal Gold Provides Details on Fiscal Year End Change
Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today additional details with respect to the previously announced change in Royal Gold’s fiscal year end.
As previously announced, Royal Gold is transitioning its fiscal year end from June 30 to December 31, effective as of December 31, 2021. This change in fiscal year end will better align Royal Gold’s reporting and disclosure with that of most of its streaming and royalty counterparties and other companies in the precious metals sector.
Important investor considerations for this change include:
Royal Gold is currently in a transition period that covers the six months between the end of the previous fiscal year on June 30, 2021, and December 31, 2021; The 10-KT report for the transition period ending December 31, 2021, will be filed within 60 days of the end of the transition period; 10-Q reports for each of the March 31, June 30 and September 30 quarters will be filed within 40 days of the end of each quarter; The 2022 stockholders’ meeting is expected to be held on May 25, 2022; The Board of Directors expects that any dividend declarations will continue on a quarterly schedule, with the determination of dividend record and payout dates to remain consistent with past practice; Stream segment sales and inventory figures for each quarter are expected to be made available prior to filing quarterly financial results, consistent with past practice; and One-year guidance for total GEO sales, depreciation, depletion and amortization expense, and effective tax rate is expected to be provided during the second calendar quarter of 2022.In order to ease the transition to the new fiscal year end, certain unaudited financial metrics on a calendar year basis are shown in Tables 1 and 2 of this press release for the five-year period 2016 through 2020 inclusive. Table 1 contains an unaudited summary of revenue by property, and Table 2 contains select unaudited financial metrics. Royal Gold expects to provide further historical financial metrics along with the filing of financial results in the future.
Corporate Profile
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 September 30, 2021, the Company owned interests on 190 properties on five continents, including interests on 44 producing mines and 16 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol “RGLD.” The Company’s website is located at www.royalgold.com.
Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” or negatives of these words or similar expressions. Forward-looking statements include, among others, statements about our fiscal year end change and future reporting practices. Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a lower-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including variations between actual and forecasted performance, operators’ ability to complete projects on schedule and as planned, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, or contractual issues involving our stream or royalty agreements; risks associated with doing business in foreign countries; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; the impacts of the COVID-19 pandemic; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2021, and subsequent Forms 10-Q. Most of these factors are beyond our ability to predict or control. Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.
TABLE 1 Five-Year Historical Revenue by Stream and Royalty Interests (In $ thousands unless noted otherwise, unaudited)Twelve Months Ended December 31,
Stream/Royalty Metal(s) Current Stream/Royalty Interest1
2020
2019
2018
2017
2016
Stream: Canada Mount Milligan Gold, copper 35% of payable gold and 18.75% of payable copper $
149,631
$
125,121
$
116,966
$
120,270
$
129,730
Rainy River Gold, silver 6.5% of gold produced and 60% of silver produced
29,139
26,875
17,635
1,070
--
Other-Canada
--
--
--
--
140
Latin America Pueblo Viejo Gold, silver 7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver
$
110,571
$
90,359
$
81,014
$
95,960
$
77,670
Andacollo Gold 100% of payable gold
74,225
75,155
58,852
63,035
63,964
NX Gold Gold 25% of gold produced
--
--
--
--
--
Africa Wassa Gold 10.5% of payable gold $
28,960
$
20,427
$
18,889
$
16,925
$
11,313
Prestea and Bogoso Gold 5.5% of payable gold
4,960
6,777
10,827
15,289
9,554
Khoemacau Silver 90% of payable silver
--
--
--
--
--
Total stream revenue $
397,486
$
344,714
$
304,183
$
312,549
$
292,371
Royalty: Canada Holt Gold 0.00013 x Au price NSR $
5,565
$
9,960
$
10,202
$
12,031
$
11,568
Voisey's Bay Copper, nickel, cobalt 2.7% NVR
7,654
9,706
8,853
--
2,778
Canadian Malartic Gold 1.0%-1.5% sliding-scale NSR
7,377
6,745
8,113
7,486
7,146
Williams Gold 0.97% NSR
3,074
2,252
1,778
2,008
1,957
LaRonde Zone 5 Gold 2.0% NSR
2,044
1,810
187
13
-
Other-Canada Various Various
1,310
1,371
1,351
1,287
1,491
United States Cortez Gold GSR1, GSR2, GSR3, NVR1, NVR1C $
28,444
$
16,155
$
5,172
$
8,552
$
6,994
Robinson Gold, copper 3.0% NSR
10,669
8,337
9,110
8,881
7,896
Marigold Gold 2.0% NSR
8,134
6,057
5,025
5,009
5,005
Goldstrike Gold 0.9% NSR
3,419
3,359
3,268
3,328
4,403
Wharf Gold 0.0%-2.0% sliding-scale GSR
3,340
2,384
1,818
2,243
2,409
Other-United States Various Various
4,860
4,828
6,716
10,883
9,192
Latin America Peñasquito Gold, silver, lead, zinc 2.0% NSR
$
36,661
$
17,566
$
20,197
$
27,719
$
20,716
Dolores Gold, silver 3.25% NSR (gold), 2.0% NSR (silver)
7,058
7,022
6,806
5,511
5,278
El Limon Gold 3.0% NSR
4,172
2,451
1,980
1,160
1,802
Other-Latin America Various Various
1,661
3,380
12,538
11,761
11,054
Africa Taparko Gold 2.0% GSR, 0.75% GSR (milling royalty) $
2,971
$
1,490
$
2,075
$
2,589
$
2,725
Australia South Laverton Gold 1.5% NSR, 4.0% NPI $
10,176
$
4,239
$
4,387
$
3,257
$
2,549
Gwalia Deeps Gold 1.5% NSR
4,023
3,859
5,057
4,747
4,957
Meekatharra Gold 0.45% or 1.5% NSR
3,904
2,786
2,424
2,667
1,758
Other-Australia Various Various
2,657
3,054
1,511
2,127
3,114
Europe Las Cruces Copper 1.5% NSR $
4,986
$
4,366
$
7,053
$
6,920
$
5,365
Other-Europe Various Various
-
-
-
-
-
Total royalty revenue $
164,157
$
123,174
$
125,620
$
130,180
$
120,155
Total revenue $
561,643
$
467,888
$
429,803
$
442,729
$
412,526
GEOs Sold2 Ounces
317,700
336,800
338,300
352,100
352,300
Revenue by Commodity Gold %
78
%
77
%
77
%
80
%
88
%
Silver %9
%
9
%
9
%
9
%
6
%
Copper %10
%
10
%
10
%
8
%
3
%
Other %3
%
4
%
4
%
3
%
3
%
1 Refer to Part I, Item 2, of the Company’s Fiscal 2021 Form 10-K for a full description of the Company’s stream and royalty interests. 2 Gold equivalent ounces, or GEOs, is calculated by the Company as revenue (in total or by reportable segment) for a period divided by the average gold price for that same period. TABLE 2 Five-Year Historical Select Financial Metrics (Unaudited)Twelve Months Ended December 31,
Metric Units
2020
2019
2018
2017
2016
Adjusted EBITDA1 $ thousands445,026
356,367
316,923
331,557
304,285
Operating Cash Flow $ thousands385,320
299,194
285,058
289,215
240,135
Operating Cash Flow $ per diluted share5.87
4.56
4.35
4.42
3.68
Common Stock Dividends $ thousands73,451
69,478
65,494
62,752
60,056
Common Stock Dividends $ per diluted share1.12
1.06
1.00
0.96
0.92
1 Adjusted EBITDA is a non-GAAP financial measure. See below for additional information. For purposes of this table and the reconciliation below, calendar-year adjusted EBITDA was calculated by adding together previously reported adjusted EBITDA amounts for the four quarterly periods in the calendar year. These amounts were calculated based on the previous June 30 fiscal year end and do not reflect any changes to income tax expense (benefit) that would have occurred if historical results had been presented based on a December 31 fiscal year end.Overview of non-GAAP financial measures:
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of non-GAAP financial measures varies among companies, non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.
We have provided below a reconciliation of our non-GAAP financial measure to the comparable GAAP measure. We believe non-GAAP financial measures provide useful information to investors for analysis of our business. We use non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. The adjustments made to calculate our non-GAAP financial measure are subjective and involve significant management judgement.
The non-GAAP financial measure used by management in this press release is adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, which is a non-GAAP financial measure that is calculated by the Company as net income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. We consider adjusted EBITDA to be useful because the measure reflects our operating performance before the effects of certain non-cash items and other items that we believe are not indicative of our core operations.
Reconciliation of non-GAAP financial measures to U.S. GAAP measures: TTM Adjusted EBITDA:Three Months Ended
December 31,
September 30,
June 30,
March 31,
(In $ thousands, unaudited)2020
2020
2020
2020
Net income59,988
106,674
48,672
38,292
Depreciation, depletion and amortization47,945
46,300
45,396
51,228
Non-cash employee stock compensation1,398
1,493
833
4,644
Impairment of royalty interests--
--
1,341
--
Gain on sale of Peak Gold JV interest--
(33,906
)--
--
Fair value changes in equity securities382
(2,539
)(6,390
)3,819
Interest and other, net965
1,454
2,249
1,468
Income tax expense (benefit)16,031
(2,377
)45
8,702
Non-controlling interest in operating (income) loss of consolidated subsidiaries(99
)265
343
410
Adjusted EBITDA126,610
117,364
92,489
108,563
TTM adjusted EBITDA445,026
Three Months Ended December 31, September 30, June 30, March 31, (In $ thousands, unaudited)2019
2019
2019
2019
Net income40,414
68,872
25,466
28,594
Depreciation, depletion and amortization40,096
38,714
42,331
39,368
Non-cash employee stock compensation1,538
2,101
1,107
1,440
Fair value changes in equity securities(222
)1,375
3,482
(1,781
) Interest and other, net1,991
2,059
5,633
7,000
Income tax expense (benefit)11,124
(23,525
)6,143
9,388
Non-controlling interest in operating (income) loss of consolidated subsidiaries907
1,581
993
178
Adjusted EBITDA95,848
91,177
85,155
84,187
TTM adjusted EBITDA
356,367
Three Months Ended December 31, September 30, June 30, March 31, (In $ thousands, unaudited)2018
2018
2018
2018
Net income (loss)23,043
11,976
24,007
(154,118
) Depreciation, depletion and amortization38,807
42,551
42,317
39,679
Non-cash employee stock compensation1,625
2,444
2,322
1,563
Impairment of royalty interests--
--
--
239,364
Fair value changes in equity securities3,631
1,468
--
--
Interest and other, net6,923
7,774
7,512
6,513
Income tax expense (benefit)(2,148
)4,115
4,728
(45,859
) Non-controlling interest in operating (income) loss of consolidated subsidiaries543
3,032
2,643
468
Adjusted EBITDA72,424
73,360
83,529
87,610
TTM adjusted EBITDA
316,923
Three Months Ended December 31, September 30, June 30, March 31, (In $ thousands, unaudited)2017
2017
2017
2017
Net income (loss)(15,787
)26,548
16,836
21,531
Depreciation, depletion and amortization42,008
39,692
39,851
40,164
Non-cash employee stock compensation2,021
2,373
3,224
314
Interest and other, net8,389
7,628
10,067
7,928
Income tax expense (benefit)48,360
7,544
7,717
6,492
Non-controlling interest in operating (income) loss of consolidated subsidiaries1,022
2,083
3,422
2,130
Adjusted EBITDA86,013
85,868
81,117
78,559
TTM adjusted EBITDA
331,557
Three Months Ended December 31, September 30, June 30, March 31, (In $ thousands, unaudited)2016
2016
2016
2016
Net income (loss)27,102
26,955
18,082
(69,498
) Depreciation, depletion and amortization39,519
40,102
35,391
38,163
Non-cash employee stock compensation2,299
4,144
2,250
2,340
Impairment of royalty interests--
--
--
98,973
Interest and other, net2,335
6,748
5,409
5,702
Income tax expense (benefit)5,044
7,188
5,025
(8,262
) Non-controlling interest in operating (income) loss of consolidated subsidiaries2,091
2,984
2,357
1,842
Adjusted EBITDA78,390
88,121
68,514
69,260
TTM adjusted EBITDA
304,285
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