Price | 125.59 | EPS | 2 | |
Shares | 66 | P/E | 55 | |
MCap | 8,241 | P/FCF | 37 | |
Net Debt | 48 | EBIT | 139 | |
TEV | 8,289 | TEV/EBIT | 60 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-12-31 | Filed 2021-02-04 |
10-Q | 2020-09-30 | Filed 2020-11-05 |
10-K | 2020-06-30 | Filed 2020-08-06 |
10-Q | 2020-03-31 | Filed 2020-05-07 |
10-Q | 2019-12-31 | Filed 2020-02-06 |
10-Q | 2019-09-30 | Filed 2019-11-07 |
10-K | 2019-06-30 | Filed 2019-08-08 |
10-Q | 2019-03-31 | Filed 2019-05-02 |
10-Q | 2018-12-31 | Filed 2019-02-07 |
10-Q | 2018-09-30 | Filed 2018-11-01 |
10-K | 2018-06-30 | Filed 2018-08-09 |
10-Q | 2018-03-31 | Filed 2018-05-03 |
10-Q | 2017-12-31 | Filed 2018-02-08 |
10-Q | 2017-09-30 | Filed 2017-11-02 |
10-K | 2017-06-30 | Filed 2017-08-10 |
10-Q | 2017-03-31 | Filed 2017-05-10 |
10-Q | 2016-12-31 | Filed 2017-02-02 |
10-Q | 2016-09-30 | Filed 2016-11-03 |
10-K | 2016-06-30 | Filed 2016-08-11 |
10-Q | 2016-03-31 | Filed 2016-04-28 |
10-Q | 2015-12-31 | Filed 2016-02-04 |
10-Q | 2015-09-30 | Filed 2015-11-05 |
10-K | 2015-06-30 | Filed 2015-08-06 |
10-Q | 2015-03-31 | Filed 2015-04-30 |
10-Q | 2014-12-31 | Filed 2015-01-29 |
10-Q | 2014-09-30 | Filed 2014-10-30 |
10-K | 2014-06-30 | Filed 2014-08-07 |
10-Q | 2014-03-31 | Filed 2014-05-01 |
10-Q | 2013-12-31 | Filed 2014-01-30 |
10-Q | 2013-09-30 | Filed 2013-11-07 |
10-K | 2013-06-30 | Filed 2013-08-08 |
10-Q | 2013-03-31 | Filed 2013-05-02 |
10-K | 2012-06-30 | Filed 2012-08-09 |
10-Q | 2012-03-31 | Filed 2012-05-03 |
10-Q | 2011-09-30 | Filed 2011-11-03 |
10-K | 2011-06-30 | Filed 2011-08-18 |
10-Q | 2011-03-31 | Filed 2011-05-06 |
10-Q | 2010-12-31 | Filed 2011-02-04 |
10-Q | 2010-09-30 | Filed 2010-11-05 |
10-K | 2010-06-30 | Filed 2010-08-26 |
10-Q | 2010-03-31 | Filed 2010-05-07 |
10-Q | 2009-12-31 | Filed 2010-02-05 |
8-K | 2020-11-18 | |
8-K | 2020-11-04 | |
8-K | 2020-10-13 | |
8-K | 2020-09-30 | |
8-K | 2020-09-30 | |
8-K | 2020-09-16 | |
8-K | 2020-08-05 | |
8-K | 2020-07-07 | |
8-K | 2020-05-06 | |
8-K | 2020-04-09 | |
8-K | 2020-02-05 | |
8-K | 2019-12-05 | |
8-K | 2019-11-20 | |
8-K | 2019-11-06 | |
8-K | 2019-10-30 | |
8-K | 2019-10-11 | |
8-K | 2019-09-26 | |
8-K | 2019-08-07 | |
8-K | 2019-06-11 | |
8-K | 2019-06-03 | |
8-K | 2019-05-30 | |
8-K | 2019-05-01 | |
8-K | 2019-02-25 | |
8-K | 2019-02-14 | |
8-K | 2019-02-06 | |
8-K | 2019-01-01 | |
8-K | 2018-11-14 | |
8-K | 2018-10-31 | |
8-K | 2018-09-19 | |
8-K | 2018-08-08 | |
8-K | 2018-06-18 | |
8-K | 2018-05-30 | |
8-K | 2018-05-02 | |
8-K | 2018-02-07 |
Item 1. Financial Statements |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Part II. Other Information |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 4. Mine Safety Disclosure |
Item 5. Other Information |
Item 6. Exhibits |
EX-31.1 | rgld-20201231xex31d1.htm |
EX-31.2 | rgld-20201231xex31d2.htm |
EX-32.1 | rgld-20201231xex32d1.htm |
EX-32.2 | rgld-20201231xex32d2.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number:
(Exact Name of Registrant as Specified in Its Charter)
| ||
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation) | Identification No.) | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
| Trading Symbol |
| Name of the Exchange on which Registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Accelerated filer ☐ | |
Non-accelerated filer ☐ | Smaller reporting company |
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
There were
In this Quarterly Report on Form 10-Q, Royal Gold, Inc., together with its subsidiaries, is collectively referred to as “Royal Gold,” “we,” “us,” or “our.”
INDEX
|
| PAGE | ||
PART I | FINANCIAL INFORMATION | |||
3 | ||||
Consolidated Statements of Operations and Comprehensive Income | 4 | |||
5 | ||||
6 | ||||
7 | ||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19 | |||
31 | ||||
31 | ||||
31 | ||||
32 | ||||
32 | ||||
32 | ||||
32 | ||||
32 | ||||
33 | ||||
34 |
2
ITEM 1. FINANCIAL STATEMENTS
ROYAL GOLD, INC.
Consolidated Balance Sheets
(Unaudited, amounts in thousands except share data)
| December 31, |
| June 30, | |||
| 2020 | 2020 | ||||
ASSETS | ||||||
Cash and equivalents | $ | | $ | | ||
Royalty receivables | | | ||||
Income tax receivable | | | ||||
Stream inventory | | | ||||
Prepaid expenses and other | | | ||||
Total current assets | | | ||||
Stream and royalty interests, net (Note 3) | | | ||||
Other assets | | | ||||
Total assets | $ | | $ | | ||
LIABILITIES | ||||||
Accounts payable | $ | | $ | | ||
Dividends payable | ||||||
Income tax payable | ||||||
Other current liabilities | ||||||
Total current liabilities | | | ||||
Debt (Note 5) | ||||||
Deferred tax liabilities | ||||||
Uncertain tax positions | ||||||
Other liabilities | ||||||
Total liabilities | | | ||||
Commitments and contingencies (Note 13) | ||||||
EQUITY | ||||||
Preferred stock, $ | — | — | ||||
Common stock, $ | ||||||
Additional paid-in capital | ||||||
Accumulated earnings | ||||||
Total Royal Gold stockholders’ equity | | | ||||
Non-controlling interests | ||||||
Total equity | | | ||||
Total liabilities and equity | $ | | $ | |
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 | Six Months Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | |||||
Revenue (Note 7) | $ | | $ | | $ | | $ | | ||||
Costs and expenses | ||||||||||||
Cost of sales (excludes depreciation, depletion and amortization) | | | | | ||||||||
General and administrative | | | | | ||||||||
Production taxes | | | | | ||||||||
Exploration costs | — | | | | ||||||||
Depreciation, depletion and amortization | | | | | ||||||||
Total costs and expenses | | | | | ||||||||
Gain on sale of Peak Gold JV interest | — | — | | — | ||||||||
Operating income | | | | | ||||||||
Fair value changes in equity securities | ( | ( | ||||||||||
Interest and other income | | | | | ||||||||
Interest and other expense | ( | ( | ( | ( | ||||||||
Income before income taxes | | | | | ||||||||
Income tax (expense) benefit | ( | ( | ( | |||||||||
Net income and comprehensive income | | | | | ||||||||
Net (income) loss and comprehensive (income) loss attributable to non-controlling interests | ( | | | | ||||||||
Net income and comprehensive income attributable to Royal Gold common stockholders | $ | | $ | | $ | | $ | | ||||
Net income per share attributable to Royal Gold common stockholders: | ||||||||||||
Basic earnings per share | $ | | $ | | $ | | $ | | ||||
Basic weighted average shares outstanding | | | | | ||||||||
Diluted earnings per share | $ | | $ | | $ | | $ | | ||||
Diluted weighted average shares outstanding | | | | | ||||||||
Cash dividends declared per common share | $ | | $ | | $ | | $ | |
The accompanying notes are an integral part of these consolidated financial statements.
4
ROYAL GOLD, INC.
Consolidated Statements of Changes in Stockholders’ Equity
Three months ended December 31, 2020 and 2019
(unaudited, amounts in thousands except share data)
Royal Gold Stockholders | |||||||||||||||||
Additional | |||||||||||||||||
Common Shares | Paid-In | Accumulated | Non-controlling | Total | |||||||||||||
Shares | Amount | Capital | (Losses) Earnings | Interests | Equity | ||||||||||||
Balance at September 30, 2020 |
| | $ | |
| $ | | $ | | $ | | $ | | ||||
Stock-based compensation and related share issuances |
| |
| — |
|
| |
| — |
| — |
| | ||||
Distributions to non-controlling interests | — |
| — |
|
| — |
| — |
| ( |
| ( | |||||
Net income and comprehensive income |
| — |
| — |
|
| — |
| |
| |
| | ||||
Dividends declared |
| — |
| — |
|
| — |
| ( |
| — |
| ( | ||||
Balance at December 31, 2020 |
| | $ | |
| $ | | $ | | $ | | $ | | ||||
Royal Gold Stockholders | |||||||||||||||||
Additional | |||||||||||||||||
Common Shares | Paid-In | Accumulated | Non-controlling | Total | |||||||||||||
Shares | Amount | Capital | (Losses) Earnings | Interests | Equity | ||||||||||||
Balance at September 30, 2019 |
| | $ | |
| $ | | $ | ( | $ | | $ | | ||||
Stock-based compensation and related share issuances |
| |
| — |
|
| |
| — |
| — |
| | ||||
Distributions from (to) non-controlling interests | — |
| — |
|
| |
| — |
| ( |
| | |||||
Net income (loss) and comprehensive income (loss) |
| — |
| — |
|
| — |
| |
| ( |
| | ||||
Dividends declared |
| — |
| — |
|
| — |
| ( |
| — |
| ( | ||||
Balance at December 31, 2019 |
| | $ | |
| $ | | $ | | $ | | $ | |
ROYAL GOLD, INC.
Consolidated Statements of Changes in Stockholders’ Equity
Six months ended December 31, 2020 and 2019
(unaudited, amounts in thousands except share data)
Royal Gold Stockholders | |||||||||||||||||
Additional | |||||||||||||||||
Common Shares | Paid-In | Accumulated | Non-controlling | Total | |||||||||||||
Shares | Amount | Capital | (Losses) Earnings | Interests | Equity | ||||||||||||
Balance at June 30, 2020 |
| | $ | |
| $ | | $ | | $ | | $ | | ||||
Stock-based compensation and related share issuances |
| |
| |
|
| |
| — |
| — |
| | ||||
Sale of Peak Gold JV interest | — | — | ( | — | ( | ( | |||||||||||
Distributions to non-controlling interests | — |
| — |
|
| — |
| — |
| ( |
| ( | |||||
Net income (loss) and comprehensive income (loss) |
| — |
| — |
|
| — |
| |
| ( |
| | ||||
Dividends declared |
| — |
| — |
|
| — |
| ( |
| — |
| ( | ||||
Balance at December 31, 2020 |
| | $ | |
| $ | | $ | | $ | | $ | | ||||
Royal Gold Stockholders | |||||||||||||||||
Additional | |||||||||||||||||
Common Shares | Paid-In | Accumulated | Non-controlling | Total | |||||||||||||
Shares | Amount | Capital | (Losses) Earnings | Interests | Equity | ||||||||||||
Balance at June 30, 2019 |
| | $ | |
| $ | | $ | ( | $ | | $ | | ||||
Stock-based compensation and related share issuances |
| |
| — |
|
| |
| — |
| — |
| | ||||
Distributions from (to) non-controlling interests | — |
| — |
|
| |
| — |
| ( |
| | |||||
Net income (loss) and comprehensive income (loss) |
| — |
| — |
|
| — |
| |
| ( |
| | ||||
Dividends declared |
| — |
| — |
|
| — |
| ( |
| — |
| ( | ||||
Balance at December 31, 2019 |
| | $ | |
| $ | | $ | | $ | | $ | |
The accompanying notes are an integral part of these consolidated financial statements.
5
ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(Unaudited, amounts in thousands)
Six Months Ended | ||||||
December 31, | December 31, | |||||
| 2020 |
| 2019 | |||
Cash flows from operating activities: | ||||||
Net income and comprehensive income | $ | | $ | | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation, depletion and amortization | | | ||||
Gain on sale of Peak Gold JV interest | ( | — | ||||
Non-cash employee stock compensation expense | | | ||||
Fair value changes in equity securities | ( | | ||||
Deferred tax benefit | ( | ( | ||||
Other | | | ||||
Changes in assets and liabilities: | ||||||
Royalty receivables | ( | ( | ||||
Stream inventory | ( | ( | ||||
Income tax receivable | ( | ( | ||||
Prepaid expenses and other assets | | ( | ||||
Accounts payable | ( | ( | ||||
Income tax payable | | | ||||
Uncertain tax positions | ( | | ||||
Other liabilities | | | ||||
Net cash provided by operating activities | $ | | $ | | ||
Cash flows from investing activities: | ||||||
Acquisition of stream and royalty interests | ( | ( | ||||
Proceeds from sale of Peak Gold JV interest | | — | ||||
Proceeds from sale of Contango shares | | — | ||||
Other | ( | | ||||
Net cash provided by (used in) investing activities | $ | | $ | ( | ||
Cash flows from financing activities: | ||||||
Repayment of debt | ( | ( | ||||
Net payments from issuance of common stock | ( | ( | ||||
Common stock dividends | ( | ( | ||||
Other | ( | | ||||
Net cash used in financing activities | $ | ( | $ | ( | ||
Net increase (decrease) in cash and equivalents | | ( | ||||
Cash and equivalents at beginning of period | | | ||||
Cash and equivalents at end of period | $ | | $ | |
The accompanying notes are an integral part of these consolidated financial statements.
6
1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS
Royal Gold 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 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 under the Securities Exchange Act of 1934, as amended. 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 six months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. These interim unaudited financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the Securities and Exchange Commission on August 6, 2020 (“Fiscal 2020 10-K”).
Recently Adopted Accounting Standards
Current Expected Credit Loss
In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which, together with subsequent amendments, changes how an entity records credit losses from an “incurred loss” approach to an “expected loss” approach. This update was effective for annual periods beginning after December 15, 2019 and interim financial statement periods within those years, with early adoption permitted. On July 1, 2020, we adopted the new guidance and, based on our assessment, the adoption of the new guidance did not have any impact on our consolidated financial statements.
2. SALE OF PEAK GOLD JV INTEREST
On September 30, 2020, we entered into an agreement with an affiliate of Kinross Gold Corporation to sell our
In addition to the total cash consideration of $
● | An incremental |
● | An incremental |
The royalties were recorded as exploration stage royalty interests in Stream and royalty interests, net in our consolidated balance sheet as of December 31, 2020 and were assigned a combined value of approximately $
7
3. STREAM AND ROYALTY INTERESTS, NET
The following tables summarize our stream and royalty interests, net as of December 31, 2020 and June 30, 2020.
As of December 31, 2020 (Amounts in thousands): |
| Cost |
| Accumulated Depletion |
| Net | |||
Production stage stream interests: | |||||||||
Mount Milligan | $ | | $ | ( | $ | | |||
Pueblo Viejo | | ( | | ||||||
Andacollo | | ( | | ||||||
Rainy River | | ( | | ||||||
Wassa | | ( | | ||||||
Total production stage stream interests | | ( | | ||||||
Production stage royalty interests: | |||||||||
Voisey's Bay | | ( | | ||||||
Peñasquito | | ( | | ||||||
Cortez | | ( | | ||||||
Other | | ( | | ||||||
Total production stage royalty interests | | ( | | ||||||
Total production stage stream and royalty interests | | ( | | ||||||
Development stage stream interests: | |||||||||
Khoemacau | | — | | ||||||
Other | | — | | ||||||
Development stage royalty interests: | |||||||||
Other | | — |