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Royal Gold Reports Record Revenue For Fiscal 2013, The Acquisition Of A Royalty On El Morro, And Commissioning At Mt. Milligan

Royal Gold, Inc. (NASDAQ:RGLD) (TSX: RGL) (“Royal Gold” or the “Company”) today announced net income attributable to Royal Gold stockholders (“net income”) of $69.2 million, or $1.09 per basic share, on record annual royalty revenue of $289.2 million for fiscal 2013 (ended June 30). This compares to net income for fiscal 2012 of $92.5 million, or $1.61 per basic share, on royalty revenue of $263.1 million. The Company also announced that it has acquired a 70% interest in a 2.0% net smelter return royalty on certain portions of the El Morro copper gold project (“El Morro”) in Chile, from Xstrata Copper Chile S.A., for $35 million.

Fiscal 2013 Highlights:
  • Royalty revenue of $289.2 million, up 10% from fiscal 2012;
  • Operating cash flow of $172.6 million, up 6% from fiscal 2012;
  • Net income of $69.2 million, down 25% from fiscal 2012 due mainly to a non-cash impairment loss recorded in the fiscal third quarter and higher interest expense;
  • Adjusted EBITDA 1 of $4.12 per basic share, or 90% of revenue; and
  • Cash dividends of $43.9 million, representing a payout ratio of 25% of operating cash flow.

Other Highlights:
  • Acquisition of a royalty on the El Morro copper-gold project in Chile for $35 million;
  • Announcement that Barrick intends to re-sequence construction of the process plant and other facilities in Argentina to target first production at Pascua-Lama by mid-2016; and
  • A phased start-up of the concentrator at Mt. Milligan is planned for early August, with all circuits expected to be operational in September.

Tony Jensen, President and CEO, commented, “Royal Gold is reporting record annual revenue today despite a lower gold price, due to production increases at several of our principal properties in fiscal 2013. We expect to build on this success and enter a new phase of growth as Mt. Milligan begins processing ore this month, and as we continue to look for opportunities to put our $1 billion in available liquidity to work for our shareholders on other quality properties. In addition, we have acquired a royalty at El Morro, which is among the world’s highest grade undeveloped gold and copper porphyries with reserves of 9.5 million ounces of gold and 7 billion pounds of copper.”

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