Royal Gold Q3 Revenue Down, Net Income Declines

TL;DR

ROYAL GOLD Q3 REVENUE DOWN TO $152.1M, NET INCOME SLIDES TO $32.1M.

AI Summary

Royal Gold Inc. reported its Q3 2024 results, with total revenues of $152.1 million for the nine months ended September 30, 2024. This represents a decrease from the $160.4 million reported for the same period in 2023. The company's net income for the nine months was $32.1 million, down from $47.1 million in the prior year. Royal Gold's primary business involves acquiring and managing precious metal assets.

Why It Matters

This filing indicates a dip in Royal Gold's financial performance, which could impact investor returns and the company's ability to fund future acquisitions.

Risk Assessment

Risk Level: medium — The decline in revenue and net income suggests potential headwinds in the company's operations or market conditions.

Key Numbers

• $152.1M — Nine Months Revenue (2024) (Represents a decrease from the prior year's comparable period.)
• $160.4M — Nine Months Revenue (2023) (Prior year period for revenue comparison.)
• $32.1M — Nine Months Net Income (2024) (Shows a decline compared to the previous year.)
• $47.1M — Nine Months Net Income (2023) (Prior year period for net income comparison.)

Key Players & Entities

• Royal Gold Inc. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• $152.1 million (dollar_amount) — Total revenues for the nine months ended September 30, 2024
• $160.4 million (dollar_amount) — Total revenues for the nine months ended September 30, 2023
• $32.1 million (dollar_amount) — Net income for the nine months ended September 30, 2024
• $47.1 million (dollar_amount) — Net income for the nine months ended September 30, 2023

FAQ

Key Financial Figures

• $0.01 — ange on which Registered Common Stock, $0.01 par value RGLD Nasdaq Global Select Ma

Filing Documents

• rgld-20240930.htm (10-Q) — 1334KB
• rgld-20240930xex101.htm (EX-10.1) — 7KB
• rgld-20240930xex3111.htm (EX-31.1) — 10KB
• rgld-20240930xex3121.htm (EX-31.2) — 10KB
• rgld-20240930xex3211.htm (EX-32.1) — 5KB
• rgld-20240930xex3221.htm (EX-32.2) — 5KB
• 0000085535-24-000048.txt ( ) — 6367KB
• rgld-20240930.xsd (EX-101.SCH) — 36KB
• rgld-20240930_cal.xml (EX-101.CAL) — 49KB
• rgld-20240930_def.xml (EX-101.DEF) — 124KB
• rgld-20240930_lab.xml (EX-101.LAB) — 420KB
• rgld-20240930_pre.xml (EX-101.PRE) — 286KB
• rgld-20240930_htm.xml (XML) — 1246KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Operations and Comprehensive Income 4 Consolidated Statements of Changes in Stockholders' Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 31 Item 4. Mine Safety Disclosures 31 Item 5. Other Information 31 Item 6. Exhibits 33

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) September 30, 2024 December 31, 2023 ASSETS Cash and equivalents $ 127,882 $ 104,167 Royalty receivables 50,118 48,884 Income tax receivable 10,190 2,676 Stream inventory 11,620 9,788 Prepaid expenses and other 2,295 1,911 Total current assets 202,105 167,426 Stream and royalty interests, net (Note 3) 3,021,324 3,075,574 Other assets 78,196 118,057 Total assets $ 3,301,625 $ 3,361,057 LIABILITIES Accounts payable $ 13,245 $ 11,441 Dividends payable 26,320 26,292 Income tax payable 30,386 15,557 Other current liabilities 16,372 19,132 Total current liabilities 86,323 72,422 Debt (Note 4) — 245,967 Deferred tax liabilities 132,857 134,299 Mount Milligan deferred liability (Note 5) 25,000 — Other liabilities 6,517 7,728 Total liabilities 250,697 460,416 Commitments and contingencies (Note 12) EQUITY Preferred stock, $ .01 par value, 10,000,000 shares authorized; and 0 shares issued — — Common stock, $ .01 par value, 200,000,000 shares authorized; and 65,689,357 and 65,631,760 shares outstanding, respectively 657 656 Additional paid-in capital 2,225,788 2,221,039 Accumulated earnings 812,192 666,522 Total Royal Gold stockholders' equity 3,038,637 2,888,217 Non-controlling interests 12,291 12,424 Total equity 3,050,928 2,900,641 Total liabilities and equity $ 3,301,625 $ 3,361,057 The accompanying notes are an integral part of these consolidated financial statements. 3 ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands except share data) Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenue (Note 6) $ 193,837 $ 138,617 $ 516,835 $ 453,051 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 27,192 21,351 73,116 69,738 General and admin

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS Royal Gold, Inc., together with its subsidiaries ("Royal Gold," the "Company," "we," "us," or "our"), is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in production or in the development stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in a mining project that provide the right to revenue or metals produced from the project after deducting contractually specified costs, if any. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2024. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2023, filed with the Securities and

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 3. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of September 30, 2024 and December 31, 2023. As of September 30, 2024 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 455,549 ) $ 335,086 Pueblo Viejo 610,404 ( 306,451 ) 303,953 Andacollo 388,182 ( 173,673 ) 214,509 Khoemac a u 265,911 ( 55,365 ) 210,546 Rainy River 175,727 ( 82,771 ) 92,956 Other 237,059 ( 149,939 ) 87,120 Total production stage stream interests 2,467,918 ( 1,223,748 ) 1,244,170 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 76,378 ) 277,472 Voisey's Bay 205,724 ( 123,350 ) 82,374 Red Chris 116,187 ( 5,966 ) 110,221 Peasquito 99,172 ( 63,543 ) 35,629 Other 509,717 ( 416,069 ) 93,648 Total production stage royalty interests 1,284,650 ( 685,306 ) 599,344 Total production stage stream and royalty interests 3,752,568 ( 1,909,054 ) 1,843,514 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Back River 42,948 — 42,948 La Fortuna 35,140 — 35,140 Other 30,844 — 30,844 Total development stage stream and royalty interests 120,970 — 120,970 Exploration stage stream interests: Xavantina 19,563 — 19,563 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,479 — 456,479 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Ct 29,610 — 29,610 Other 115,497 — 115,497 Total exploration stage stream and royalty interests 1,056,840 — 1,056,840 Total stream and royalty interests, net $ 4,930,378 $ ( 1,909,054 ) $ 3,021,324 8 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) As of December 31, 2023 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 430,106 ) $ 360,529 Pueblo Viejo 610,404 ( 299,354 ) 311,050 Andacollo 388,182 ( 165,553 ) 222,629 Khoemac a u 265,911 ( 41,635 ) 224,276 Rainy River 175,727 ( 74,858 ) 100,869 Other 232,703 ( 132,043 ) 100,660 Total production stage stream interests 2,463,562 ( 1,143,549 ) 1,320,013 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 61,891 ) 291,959 Voisey's Bay 205,724 ( 121,000 ) 84,724 Red Chris 116,187 ( 3,758 ) 112,429 Peasquito 99,172 ( 59,900 ) 39,272 Other 448,899 ( 408,522 ) 40,377 Total production stage royalty interests 1,223,832 ( 655,071 ) 568,761 Total production stage stream and royalty interests 3,687,394 ( 1,798,620 ) 1,888,774 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Ct 45,421 — 45,421 La Fortuna 35,140 — 35,140 Other 45,992 — 45,992 Total development stage stream and royalty interests 138,591 — 138,591 Exploration stage stream interests: Xavantina 19,565 — 19,565 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,479 — 456,479 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Ct 29,610 — 29,610 Other 106,864 — 106,864 Total exploration stage stream and royalty interests 1,048,209 — 1,048,209 Total stream and royalty interests, net $ 4,874,194 $ ( 1,798,620 ) $ 3,075,574 9 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 4. DEBT Our debt as of September 30, 2024 and December 31, 2023 consists of the following (amounts in thousands): As of September 30, 2024 As of December 31, 2023 Principal Debt Issuance Costs (1) Total Principal Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Revolving credit facility $ — $ — $ — $ 250,000 $ ( 4,033 ) $ 245,967 Total debt $ — $ — $ — $ 250,000 $ ( 4,033 ) $ 245,967 _______________________________________________ (1) Debt issuance costs of $ 3.4 million included within Other assets on our consolidated balance sheets. Revolving credit facility During the three months ended September 30, 2024, we repaid the remaining $ 50 million of outstanding borrowings on our revolving credit facility, making the entire $ 1 billion revolving credit facility available as of September 30, 2024. Interest expense, which includes interest on borrowings and amortization of debt issuance costs, was $ 0.5 million and $ 6.1 million for the three and nine months ended September 30, 2024, respectively, and $ 6.7 million and $ 23.0 million for the three and nine months ended September 30, 2023, respectively. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of September 30, 2024. We may repay any borrowings under our revolving credit facility at any time without premium or penalty. 5. MOUNT MILLIGAN DEFERRED LIABILITY On February 13, 2024, RGLD Gold AG, a subsidiary of the Company, entered into a Processing Cost Support Agreement (the "Mount Milligan Cost Support Agreement") with Centerra Gold Inc. ("Centerra") with respect to the Mount Milligan Mine ("Mount Milligan") for cash consideration of $ 24.5 million, 50,000 ounces ("Deferred Gold Consideration") of gold to be delivered in the future and a free cash flow interest. The cost support allowed for the extension of the mine from 2032 to 2035

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Cost Support Metal deliveries referenced in the Mount Milligan Cost Support Agreement are those with a bill of lading date on or after January 1, 2024 (the "Reference Date"). Delivery thresholds used to define the periods of cost support are the earlier deliveries of: a. 375,000 ounces of gold or 30,000 tonnes of copper from the Reference Date (the "First Threshold"). b. 665,000 ounces of gold or 60,000 tonnes of copper from the Reference Date (the "Second Threshold"). Near-Term Cost Support Through Approximately 2029 At Centerra's request, in the event that both the gold price is at or below $ 1,600 per ounce and the copper price is at or below $ 3.50 per pound, for each delivery under the existing Mount Milligan stream agreement, we will pay the lower of either $ 415 per ounce of gold, or 66 % of the spot gold price less $ 435 per ounce, and 35 % of the spot copper price for each pound of copper delivered (the "Pre-Threshold Support"). This near-term cost support will be made available from the Reference Date through to the First Threshold, which is expected to be through approximately 2029. Any Pre-Threshold Support we provide will be recoverable from any cost support calculated after the First Threshold at metal prices above $ 1,600 per ounce of gold and $ 3.50 per pound of copper. For gold, any cost support payment will be reduced by the difference between the gold price and $ 1,600 per ounce. For copper, any cost support payment will be reduced by the difference between the copper price and $ 3.50 per pound. Cost Support from Approximately 2030 Through Approximately 2035 We will provide Centerra cost support payments from the First Threshold until the Second Threshold as follows: a. With respect to gold, the lower of either $ 415 per ounce, or 50 % of the spot gold price less $ 435 per ounce, for each ounce of gold delivered under the existing Mount Milligan stream agreement. b. With respect t

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below. Stream Interests A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily at cash average or spot market prices. The sales price for the averaging contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive period between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time), commencing shortly after receipt and purchase of the metal. We settle both averaging and spot sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the meta

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