Royal Gold Posts Higher Fiscal 4Q Profit

DENVER (AP) ⿿ Royal Gold Inc., which manages precious metals royalties, said Thursday its fiscal fourth-quarter profit increased as royalty revenue surged by 83 percent.

The company said net income available to common shareholders rose to $10.5 million, or 21 cents a share, in the three months ended June 30. That compares with net income available to common shareholders of $7.1 million, or 18 cents a share, for the same quarter last year.

Excluding a one-time gain from a royalty buyback, the company's earnings amounted to $5.6 million, or 14 cents a share.

Analysts polled by Thomson Reuters predicted, on average, a profit of 24 cents a share.

Revenue jumped to $40.7 million from $22.3 million a year ago. The increase was driven in part by higher production and higher average gold prices, the company said.

For fiscal 2010, Royal Gold said its profit fell to $21.5 million, or 49 cents a share, compared with a profit of $38.3 million, or $1.07 a share, in fiscal 2009.

Excluding the impact of severance and acquisition costs, the company's fiscal 2010 profit was $35.8 million, or 82 cents a share.

Revenue climbed to $136.6 million from $73.8 million in fiscal 2009.

The company credited the improved full-year results in part to higher commodities prices.

The average price of gold in fiscal 2010 was 25 percent higher than in 2009, the company said.

Royal Gold shares added 43 cents to $46.16 in afternoon trading.

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