Yesterday’s announcement by Silver Wheaton and HudBay, that type of transaction in our view is yet a further endorsement of the growth potential of the royalty streaming business model. Royal Gold, as well, made some news this morning. There are more than enough opportunities for all the royalty and streaming companies and we fully expect to get our share of the deals.
I’ll be happy to take your questions after Sandip reviews our Q2 numbers. Sandip, if you can take it away from here.
Thank you, David. Good morning, everyone. Thank you for taking the time to join us on our call to discuss the company’s financial results for the three and six months ended June 30, 2012. With respect to our financial results, as you will have seen from the press release issued yesterday, the company had another good quarter. Our royalty and stream operations continued to perform well.
This was the fifth consecutive quarter that the company surpassed the $100 million mark in revenue. Revenue was slightly lower at $102.7 million for second quarter 2012, when compared to second quarter 2011. But our net income of $36.9 million was higher for the same period due to lower depletion and lower cost of sales reported.
As mentioned, revenue was $102.7 million for the quarter. This compares to $106.3 million for second quarter of 2011. On a year-to-date basis, revenue was $207.7 million compared to $179.4 million a year ago, a 15.8% increase. Although, revenue was slightly less in second quarter 2012 compared to prior year, actual production attributable to (inaudible) Franco-Nevada from our royalty and stream properties was in line with our expectations for the quarter and six months ended June 30.
With respect to pricing, average commodity prices were mixed in the quarter. The average gold price was $1,611 per ounce for the quarter compared to $1,504 in second quarter 2011, an increase of 7.1%. For the six months ended June 30, the average gold price was $1,651 per ounce compared to $1,444 per ounce for the six months ended June 30, 2011, a 14% increase.
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