Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) (“Royal Gold” or the “Company”) generated net income attributable to Royal Gold stockholders of $15.2 million, or $0.23 per basic share, on revenue of $56.5 million for the first quarter of fiscal 2014. This compares to net income attributable to Royal Gold stockholders of $24.8 million, or $0.42 per basic share, on revenue of $77.9 million for the first quarter of fiscal 2013. The average gold price was $1,326 per ounce in the first quarter, down 20% from the prior year quarter.
Q1 Fiscal Year (“FY”) 2014 Highlights:
- Adjusted EBITDA 1 of $0.77 per basic share or 88% of revenue;
- Cash dividends of $13.0 million, representing a payout ratio of 37% of operating cash flow;
- Completion of the previously announced acquisition of a royalty on the El Morro copper-gold project in Chile for $35 million; and
- Final payment of $12.9 million made to Thompson Creek Metals Company (“Thompson Creek”) as part of the Mt. Milligan gold stream acquisition. Copper and gold concentrate production commenced at Mt. Milligan in September.
Tony Jensen, President and CEO, commented, “Our first quarter results met production expectations on a portfolio basis, with Andacollo reporting a particularly strong quarter. We are pleased with the plant commissioning process at Mt. Milligan to date and look forward to that contribution to our portfolio as concentrate sales commence in the near future. We expect Mt. Milligan’s production to build more significantly in the new calendar year.”
First quarter revenue was primarily impacted by lower average metal prices. First quarter production attributable to Royal Gold was higher at Andacollo, Canadian Malartic, Holt, Dolores and Wolverine than the prior year quarter, offset by lower production at Voisey’s Bay, Peñasquito, Las Cruces, Robinson (copper), Leeville and Cortez.