Royal Gold Reports Record Revenue and Net Income for Second Quarter Fiscal 2012
- Record royalty revenue totaled $68.8 million, a 22% increase year-over-year
- Record net income rose 28% year-over-year to $23.4 million, or $0.42 per basic share
- Operating cash flow totaled $29.3 million
- Mt. Milligan gold interest increased to 40%
- Gold and silver interests purchased on Tulsequah Chief project
- Raised $268.4 million in January 2012
DENVER–(BUSINESS WIRE)–ROYAL GOLD, INC. (NASDAQ:RGLD) (TSX:RGL) today announced record net income attributable to Royal Gold stockholders of $23.4 million, or $0.42 per basic share, on record royalty revenue of $68.8 million for the second quarter of fiscal 2012. This compares to net income attributable to Royal Gold stockholders for the second quarter of fiscal 2011 of $18.3 million, or $0.33 per basic share, on royalty revenue of $56.3 million.
For the six-month period ended December 31, 2011, royalty revenue was $133.3 million and net income attributable to Royal Gold stockholders was $45.9 million, or $0.83 per basic share. This compares to royalty revenue of $101.7 million and net income attributable to Royal Gold stockholders of $30.1 million, or $0.55 per basic share, for the six-month period ended December 31, 2010.
Adjusted EBITDA1 for the second quarter of fiscal 2012 was $62.1 million representing 90% of revenue, an increase of 27% compared to Adjusted EBITDA of $48.9 million or 87% of revenue for the prior year period. Cash flow from operations for the quarter was $29.3 million or $0.53 per basic share and was impacted by an increase in year-end tax payments and an increase in accounts receivable. Cash flow from operations for the comparable quarter was $27.1 million or $0.49 per share.
Quarterly revenue increases were largely driven by increased production from Andacollo and Voisey’s Bay, new production from Holt and Canadian Malartic, continued ramp up at Peñasquito and the higher average price of gold and silver. The increase in revenue was partially offset by lower production at Cortez and Robinson, when compared to the second quarter of fiscal 2011. The average price of gold for the second fiscal quarter was $1,688 per ounce compared with $1,367 per ounce for the comparable period, representing a 23% increase.
As of December 31, 2011, the Company had a working capital surplus of $135.9 million. Current assets were $166.1 million (including $95.8 million in cash and equivalents), compared to current liabilities of $30.2 million, resulting in a current ratio of 6 to 1. Total debt outstanding under the Company’s credit facilities was $288.3 million, as of December 31, 2011, including $170 million under our revolving credit facility and $118.3 million under our term loan.
Tony Jensen, President and CEO, commented, “We are pleased to have recorded another solid quarter of financial results. This marks the third consecutive quarter of record revenue and net income for Royal Gold as our growth profile continues to deliver financial results. We also had a very productive quarter furthering our growth projects within the portfolio with the acquisition of an additional interest at the Mt. Milligan project and completing a transaction on the Tulsequah Chief project, both located in British Columbia. In total, we have committed $330 million for these transactions, subject to certain conditions. To fuel this growth and position the Company for the future, we conducted an equity offering in mid-January which raised approximately $268.4 million.”