Company Quick10K Filing
Royal Gold
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 66 $6,707
10-Q 2020-02-06 Quarter: 2019-12-31
10-Q 2019-11-07 Quarter: 2019-09-30
10-K 2019-08-08 Annual: 2019-06-30
10-Q 2019-05-02 Quarter: 2019-03-31
10-Q 2019-02-07 Quarter: 2018-12-31
10-Q 2018-11-01 Quarter: 2018-09-30
10-K 2018-08-09 Annual: 2018-06-30
10-Q 2018-05-03 Quarter: 2018-03-31
10-Q 2018-02-08 Quarter: 2017-12-31
10-Q 2017-11-02 Quarter: 2017-09-30
10-K 2017-08-10 Annual: 2017-06-30
10-Q 2017-05-10 Quarter: 2017-03-31
10-Q 2017-02-02 Quarter: 2016-12-31
10-Q 2016-11-03 Quarter: 2016-09-30
10-K 2016-08-11 Annual: 2016-06-30
10-Q 2016-04-28 Quarter: 2016-03-31
10-Q 2016-02-04 Quarter: 2015-12-31
10-Q 2015-11-05 Quarter: 2015-09-30
10-K 2015-08-06 Annual: 2015-06-30
10-Q 2015-04-30 Quarter: 2015-03-31
10-Q 2015-01-29 Quarter: 2014-12-31
10-Q 2014-10-30 Quarter: 2014-09-30
10-K 2014-08-07 Annual: 2014-06-30
10-Q 2014-05-01 Quarter: 2014-03-31
10-Q 2014-01-30 Quarter: 2013-12-31
10-Q 2013-11-07 Quarter: 2013-09-30
10-K 2013-08-08 Annual: 2013-06-30
10-Q 2013-05-02 Quarter: 2013-03-31
10-K 2012-08-09 Annual: 2012-06-30
10-Q 2012-05-03 Quarter: 2012-03-31
10-Q 2011-11-03 Quarter: 2011-09-30
10-K 2011-08-18 Annual: 2011-06-30
10-Q 2011-05-06 Quarter: 2011-03-31
10-Q 2011-02-04 Quarter: 2010-12-31
10-Q 2010-11-05 Quarter: 2010-09-30
10-K 2010-08-26 Annual: 2010-06-30
10-Q 2010-05-07 Quarter: 2010-03-31
10-Q 2010-02-05 Quarter: 2009-12-31
8-K 2020-02-05 Earnings, Exhibits
8-K 2019-12-05 Regulation FD, Exhibits
8-K 2019-11-20 Shareholder Vote
8-K 2019-11-06 Earnings, Exhibits
8-K 2019-10-30 Regulation FD, Exhibits
8-K 2019-10-11 Officers, Regulation FD, Exhibits
8-K 2019-09-26 Officers, Regulation FD, Exhibits
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-06-11 Off-BS Arrangement
8-K 2019-06-03 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-05-30 Regulation FD, Exhibits
8-K 2019-05-01 Earnings, Officers, Exhibits
8-K 2019-02-25 Other Events
8-K 2019-02-14 Officers, Exhibits
8-K 2019-02-06 Earnings, Exhibits
8-K 2019-01-01 Enter Agreement, Officers, Exhibits
8-K 2018-11-14 Shareholder Vote
8-K 2018-10-31 Earnings, Exhibits
8-K 2018-09-19 Officers, Other Events, Exhibits
8-K 2018-08-08 Earnings, Exhibits
8-K 2018-06-18 Enter Agreement, Leave Agreement, Officers
8-K 2018-05-30 Officers, Regulation FD, Exhibits
8-K 2018-05-02 Earnings, Exhibits
8-K 2018-02-07 Earnings, Exhibits
RGLD 2019-12-31
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 ex-31d1.htm
EX-31.2 ex-31d2.htm
EX-32.1 ex-32d1.htm
EX-32.2 ex-32d2.htm

Royal Gold Earnings 2019-12-31

RGLD 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
AEM 6,846 5,256 1,846 0 0 0 0 7,378 0%
RGLD 8,241 2,548 326 442 154 149 298 8,289 35% 27.8 6%
SBGL 5,530 84,923 0 0 0 0 2,981 0%
AU 5,102 6,643 3,949 0 0 0 0 4,790 0%
BVN 4,371 4,217 1,188 0 0 0 0 4,371 0%
CLF 2,052 3,491 3,131 2,152 651 839 925 3,890 30% 4.2 24%
GFI 2,826 6,104 3,397 0 0 0 0 2,426 0%
NEXA 1,577 5,735 2,834 0 0 0 0 1,257 0%
NG 2,038 250 106 0 0 -26 -20 2,086 -106.0 -10%
CDE 1,229 1,690 759 660 -10 -70 103 1,438 -1% 13.9 -4%

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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2019

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: 001-13357

Royal Gold, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

    

84-0835164

(State or Other Jurisdiction of

(I.R.S. Employer

Incorporation)

Identification No.)

1144 15th Street, Suite 2500

Denver, Colorado

80202

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code (303) 573-1660

1660 Wynkoop Street, Suite 1000, Denver, Colorado 80202

(Former address if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

    

Trading Symbol

    

Name of the Exchange on which Registered

Common Stock, $0.01 par value

RGLD

Nasdaq Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

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.  Yes      No 

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)  Yes     No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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.

Large accelerated filer 

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   No 

There were 65,572,978 shares of the Company’s common stock, par value $0.01 per share, outstanding as of January 30, 2020.

Table of Contents

INDEX

    

    

PAGE

PART I

FINANCIAL INFORMATION

Item 1.

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

7

Item 2.

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

20

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

34

Item 4.

Controls and Procedures

34

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

35

Item 1A.

Risk Factors

35

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 3.

Defaults Upon Senior Securities

35

Item 4.

Mine Safety Disclosure

35

Item 5.

Other Information

35

Item 6.

Exhibits

36

SIGNATURES

36

2

Table of Contents

ITEM 1.     FINANCIAL STATEMENTS

ROYAL GOLD, INC.

Consolidated Balance Sheets

(Unaudited, amounts in thousands except share data)

    

December 31, 

    

June 30, 

    

2019

2019

ASSETS

Cash and equivalents

$

80,504

$

119,475

Royalty receivables

28,446

20,733

Income tax receivable

9,671

2,702

Stream inventory

15,336

11,380

Prepaid expenses and other

2,485

389

Total current assets

136,442

154,679

Stream and royalty interests, net (Note 3)

2,333,091

2,339,316

Other assets

85,103

50,156

Total assets

$

2,554,636

$

2,544,151

LIABILITIES

Accounts payable

$

3,170

$

2,890

Dividends payable

18,354

17,372

Income tax payable

14,366

6,974

Other current liabilities

8,240

6,374

Total current liabilities

44,130

33,610

Debt (Note 5)

129,869

214,554

Deferred tax liabilities

87,352

88,961

Uncertain tax positions

39,804

36,573

Other long-term liabilities

6,267

-

Total liabilities

307,422

373,698

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 65,496,004 and 65,440,492 shares outstanding, respectively

655

655

Additional paid-in capital

2,205,364

2,201,773

Accumulated earnings (losses)

10,290

(65,747)

Total Royal Gold stockholders’ equity

2,216,309

2,136,681

Non-controlling interests

30,905

33,772

Total equity

2,247,214

2,170,453

Total liabilities and equity

$

2,554,636

$

2,544,151

The accompanying notes are an integral part of these consolidated financial statements.

3

Table of Contents

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, 

    

2019

    

2018

    

2019

    

2018

Revenue (Note 6)

$

123,643

$

97,592

$

242,417

$

197,585

Costs and expenses

Cost of sales (excludes depreciation, depletion and amortization)

21,077

18,162

41,188

34,689

General and administrative

6,665

7,423

14,108

17,349

Production taxes

984

909

2,083

2,201

Exploration costs

1,514

842

4,140

5,204

Depreciation, depletion and amortization

40,096

38,807

78,810

81,358

Total costs and expenses

70,336

66,143

140,329

140,801

Operating income

53,307

31,449

102,088

56,784

Fair value changes in equity securities

222

(3,631)

(1,153)

(5,099)

Interest and other income

226

487

1,001

590

Interest and other expense

(2,217)

(7,410)

(5,051)

(15,287)

Income before income taxes

51,538

20,895

96,885

36,988

Income tax (expense) benefit

(11,124)

2,148

12,401

(1,967)

Net income and comprehensive income

40,414

23,043

109,286

35,021

Net loss and comprehensive loss attributable to non-controlling interests

907

543

2,488

3,575

Net income and comprehensive income attributable to Royal Gold common stockholders

$

41,321

$

23,586

$

111,774

$

38,596

Net income per share available to Royal Gold common stockholders:

Basic earnings per share

$

0.63

$

0.36

$

1.70

$

0.59

Basic weighted average shares outstanding

65,495,907

65,395,457

65,480,759

65,385,161

Diluted earnings per share

$

0.63

$

0.36

$

1.70

$

0.59

Diluted weighted average shares outstanding

65,611,567

65,473,400

65,613,406

65,485,423

Cash dividends declared per common share

$

0.28

$

0.265

$

0.545

$

0.515

The accompanying notes are an integral part of these consolidated financial statements.

4

Table of Contents

ROYAL GOLD, INC.

Consolidated Statements of Changes in Stockholders’ Equity

(unaudited, amounts in thousands except share data)

Royal Gold Stockholders

Accumulated

Additional

Other

Common Shares

Paid-In

Comprehensive

Accumulated

Non-controlling

Total

Shares

Amount

Capital

Income (Loss)

(Losses) Earnings

Interests

Equity

Balance at September 30, 2019

 

65,495,787

$

655

 

$

2,202,350

$

$

(12,676)

$

31,999

$

2,222,328

Stock-based compensation and related share issuances

 

217

 

 

 

1,214

 

 

 

 

1,214

Distributions from (to) non-controlling interests

 

 

 

1,800

 

 

 

(187)

 

1,613

Net income and comprehensive income

 

 

 

 

 

 

41,321

 

(907)

 

40,414

Dividends declared

 

 

 

 

 

 

(18,355)

 

 

(18,355)

Balance at December 31, 2019

 

65,496,004

$

655

 

$

2,205,364

$

$

10,290

$

30,905

$

2,247,214

Royal Gold Stockholders

Accumulated

Additional

Other

Common Shares

Paid-In

Comprehensive

Accumulated

Non-controlling

Total

Shares

Amount

Capital

Income (Loss)

(Losses) Earnings

Interests

Equity

Balance at September 30, 2018

 

65,394,898

$

654

 

$

2,195,034

$

$

(92,465)

$

36,046

$

2,139,269

Stock-based compensation and related share issuances

 

1,441

 

 

 

1,380

 

 

 

 

1,380

Distributions from (to) non-controlling interests

 

 

 

840

 

 

 

(203)

 

637

Net income and comprehensive income

 

 

 

 

 

 

23,586

 

(543)

 

23,043

Dividends declared

 

 

 

 

 

 

(17,359)

 

 

(17,359)

Balance at December 31, 2018

 

65,396,339

$

654

 

$

2,197,254

$

$

(86,238)

$

35,300

$

2,146,970

Royal Gold Stockholders

Accumulated

Additional

Other

Common Shares

Paid-In

Comprehensive

Accumulated

Non-controlling

Total

Shares

Amount

Capital

Income (Loss)

(Losses) Earnings

Interests

Equity

Balance at June 30, 2019

 

65,440,492

$

655

 

$

2,201,773

$

$

(65,747)

$

33,772

$

2,170,453

Stock-based compensation and related share issuances

 

55,512

 

 

 

891

 

 

 

 

891

Distributions from (to) non-controlling interests

 

 

 

2,700

 

 

 

(379)

 

2,321

Net income and comprehensive income

 

 

 

 

 

 

111,774

 

(2,488)

 

109,286

Dividends declared

 

 

 

 

 

 

(35,737)

 

 

(35,737)

Balance at December 31, 2019

 

65,496,004

$

655

 

$

2,205,364

$

$

10,290

$

30,905

$

2,247,214

Royal Gold Stockholders

Accumulated

Additional

Other

Common Shares

Paid-In

Comprehensive

Accumulated

Non-controlling

Total

Shares

Amount

Capital

Income (Loss)

(Losses) Earnings

Interests

Equity

Balance at June 30, 2018

 

65,360,041

$

654

 

$

2,192,612

$

(1,201)

$

(89,898)

$

39,102

$

2,141,269

Stock-based compensation and related share issuances

 

36,298

 

 

 

1,852

 

 

 

 

1,852

Distributions from (to) non-controlling interests

 

 

 

2,790

 

 

 

(227)

 

2,563

Net income and comprehensive income

 

 

 

 

 

 

38,596

 

(3,575)

 

35,021

Other comprehensive loss

 

 

 

 

 

1,201

 

(1,201)

 

 

Dividends declared

 

 

 

 

 

 

(33,735)

 

 

(33,735)

Balance at December 31, 2018

 

65,396,339

$

654

 

$

2,197,254

$

$

(86,238)

$

35,300

$

2,146,970

The accompanying notes are an integral part of these consolidated financial statements.

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ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(Unaudited, amounts in thousands)

Six Months Ended

December 31, 

December 31, 

    

2019

    

2018

Cash flows from operating activities:

Net income and comprehensive income

$

109,286

$

35,021

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

78,810

81,358

Amortization of debt discount and issuance costs

566

7,864

Non-cash employee stock compensation expense

3,639

4,070

Fair value changes in equity securities

1,153

5,099

Deferred tax benefit

(36,126)

(307)

Changes in assets and liabilities:

Royalty receivables

(7,714)

697

Stream inventory

(3,956)

1,356

Income tax receivable

(6,968)

(12,753)

Prepaid expenses and other assets

(7,020)

2,305

Accounts payable

(929)

(7,026)

Income tax payable

7,392

(7,514)

Uncertain tax positions

3,230

2,197

Other liabilities

8,133

(8,899)

Net cash provided by operating activities

$

149,496

$

103,468

Cash flows from investing activities:

Acquisition of stream and royalty interests

(72,417)

(55)

Purchase of equity securities

(411)

(3,569)

Other

4,774

(87)

Net cash used in investing activities

$

(68,054)

$

(3,711)

Cash flows from financing activities:

Repayment of debt

(85,000)

Net payments from issuance of common stock

(2,747)

(2,217)

Common stock dividends

(34,755)

(32,754)

Contributions from non-controlling interest

2,700

2,790

Other

(611)

210

Net cash used in financing activities

$

(120,413)

$

(31,971)

Net (decrease) increase in cash and equivalents

(38,971)

67,786

Cash and equivalents at beginning of period

119,475

88,750

Cash and equivalents at end of period

$

80,504

$

156,536

The accompanying notes are an integral part of these consolidated financial statements.

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1.    OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

Royal Gold, Inc. (“Royal Gold”, the “Company”, “we”, “us”, or “our”), together with its subsidiaries, is engaged in the business of acquiring and managing metal streams, royalties and similar interests.  We seek to acquire existing stream and royalty interests or to finance mining 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.  A royalty is a non-operating interest in a mining project that provides 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, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020.  These interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 filed with the Securities and Exchange Commission on August 8, 2019 (“Fiscal 2019 10-K”).

Certain amounts in the prior period consolidated balance sheet have been reclassified for comparative purposes to conform with the presentation in the current period balance sheet.  Reclassified amounts were not material.  

Recently Adopted Accounting Standards

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for all leases with terms greater than twelve months.  Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU 2016-02 also requires certain quantitative and qualitative disclosures about material leasing arrangements.

Subsequently, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). ASU 2018-11 provides an additional modified retrospective transition method for adopting ASU 2016-02, which eliminates the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance.

ASU 2016-02, together with ASU 2018-11, was effective for the Company July 1, 2019. The Company adopted the new guidance using the modified retrospective approach set forth in ASU 2018-11, with the date of initial application on July 1, 2019.  Comparative reporting periods were not adjusted upon adoption.

As permitted under the transition guidance, the Company has elected to use the following practical expedients at transition:

To not reassess whether any expired or existing contracts were or contained leases; and
To not reassess the lease classification for any expired or existing leases.

In addition, the Company has elected to use the following practical expedients at and subsequent to adoption in accordance with ASU 2016-02:

Not to separate non-lease from lease components, and instead account for each lease component and any associated non-lease components as a single lease component; and

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Not to recognize right-of-use assets and associated liabilities for short-term contracts with lease terms of 12 months or less.

The Company’s significant lease arrangements relate to its office spaces. These arrangements are for leases of assets such as corporate office space and office equipment.  Through the implementation process, the Company evaluated its lease arrangements, which included an analysis of contracts, and updating its internal controls and processes that are necessary to track and calculate the additional accounting and disclosure requirements as required upon adoption of ASU 2016-02.

The Company leases office space and office equipment under operating leases expiring at various dates through the fiscal year ending June 30, 2030. The following amounts were recorded in the consolidated balance sheets at December 31, 2019 (amounts in thousands):

Classification

December 31, 2019

Operating Leases

Right-of-use assets - current

    

Prepaid expenses and other

    

$

568

Right-of-use assets - non-current

Other assets

5,052

Total right-of-use assets

$

5,620

Lease liabilities - current

Other current liabilities

$

412

Lease liabilities - non-current

Other long-term liabilities

6,267

Total operating lease liabilities

$

6,679

Maturities of operating lease liabilities at December 31, 2019 were as follows (amounts in thousands):

Fiscal Years:

Operating Leases

2020

$

194

2021

804

2022

802

2023

789

2024

790

Thereafter

4,190

Total lease payments

$

7,569

Less imputed interest

(890)

Total

$

6,679

Other information pertaining to leases consist of the following:

December 31, 2019

Operating Lease Term and Discount Rate

Weighted average remaining lease term in years

9

Weighted average discount rate

2.5%

The Company did not have any finance leases as of December 31, 2019.  The adoption of ASU 2016-02 did not impact accumulated earnings (losses), our consolidated statements of operations and comprehensive income, or our consolidated statements of cash flows.

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Recently Issued Accounting Standards

Current Expected Credit Loss

In June 2016, the FASB 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 will record credit losses from an “incurred loss” approach to an “expected loss” approach. This update is effective for annual periods beginning after December 15, 2019 (i.e. July 1, 2020 for the Company) and interim financial statement periods within those years, with early adoption permitted. The Company is currently undergoing its assessment of the new guidance and the impact it will have on our consolidated financial statements and related disclosures. Based on procedures performed as of December 31, 2019, the Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. The Company will adopt the new guidance effective July 1, 2020.

2.    ACQUISITION

Castelo de Sonhos royalty acquisition

In August 2019, a subsidiary of the Company entered into an agreement with TriStar Gold Inc. and its subsidiaries (together “TriStar”) to acquire (i) up to a 1.5% net smelter return (“NSR”) royalty on the Castelo de Sonhos gold project (“CDS”), located in Brazil, and (ii) warrants to purchase up to 19,640,000 common shares of TriStar.  Total consideration is $7.5 million and is payable over three payments, of which $4.5 million was paid in August 2019 and $1.5 million was paid in November 2019. The final payment of $1.5 million is subject to satisfaction of certain conditions and is payable by March 31, 2020.  The NSR royalty is incrementally earned pro-rata with the funding schedule while the warrants to purchase TriStar common shares will be issued pro-rata with the funding schedule.

The CDS royalty acquisition has been accounted for as an asset acquisition.  The $6.0 million paid as part of the aggregate funding schedule, plus direct acquisition costs, have been recorded as an exploration stage royalty interest within Stream and royalty interests, net on our consolidated balance sheets. Any future funding of the third payment, plus any direct acquisition costs, will also be recorded as an exploration stage royalty interest.

The warrants have been recorded within Other assets on our consolidated balance sheets and have a carrying value of approximately $0.2 million as of December 31, 2019. The warrants have been classified as a financial asset instrument and are recorded at fair value at each reporting date using the Black-Scholes model. Any change in fair value of the warrants at subsequent reporting periods will be recorded within Fair value changes in equity securities on our consolidated statements of operations and comprehensive income. As of December 31, 2019, the Company holds 15,712,000 warrants at an exercise price of C$0.25 per common share with a term of approximately five years.

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3.    STREAM AND ROYALTY INTERESTS, NET

The following tables summarize the Company’s stream and royalty interests, net as of December 31, 2019 and June 30, 2019.

As of December 31, 2019 (Amounts in thousands):

    

Cost

    

Accumulated Depletion

    

Net

Production stage stream interests:

Mount Milligan

$

790,636

$

(201,382)

$

589,254

Pueblo Viejo

610,404

(179,796)

430,608

Andacollo

388,182

(100,873)

287,309

Rainy River

175,727

(20,438)

155,289

Wassa and Prestea

146,475

(62,182)

84,293

Total production stage stream interests

2,111,424

(564,671)

1,546,753

Production stage royalty interests:

Voisey's Bay

205,724

(98,684)

107,040

Peñasquito

99,172

(42,451)

56,721

Holt

34,612

(23,273)

11,339

Cortez

80,681

(13,055)

67,626

Other

487,224

(395,171)

92,053

Total production stage royalty interests

907,413

(572,634)

334,779

Total production stage stream and royalty interests

3,018,837

(1,137,305)

1,881,532

Development stage stream interests:

Khoemacau

66,605

66,605

Other

12,038

12,038

Development stage royalty interests:

Other

70,952

70,952

Total development stage stream and royalty interests

149,595

149,595

Exploration stage royalty interests:

Pascua-Lama

177,690

177,690

Other

124,274

124,274

Total exploration stage royalty interests