In This Article:
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Earnings: Record $113 million or $1.72 per share; adjusted earnings $100 million or $1.51 per share.
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Revenue: $193 million, up 30% from the prior year.
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Adjusted EBITDA Margin: 82% for the quarter.
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Dividend: First dividend of 2025 at $0.45 per share, a 12.5% increase over 2024.
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Royalty Revenue: $71 million, up 53% from the prior year quarter.
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Stream Segment Revenue: $122 million, up 19% from last year.
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Operating Cash Flow: $136 million, slightly down from $138 million in the prior period.
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Total Available Liquidity: $1.25 billion, including a $1 billion undrawn revolving credit facility.
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G&A Expense: $11.1 million, down slightly from the prior year.
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Net Income: $113.5 million or $1.72 per share, significantly increased from the prior year.
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Tax Expense: $10 million, down from $27 million in the prior year.
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Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Royal Gold Inc (NASDAQ:RGLD) reported record earnings of $113 million or $1.72 per share for the first quarter of 2025.
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The company achieved a strong adjusted EBITDA margin of 82% for the quarter.
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Royal Gold Inc (NASDAQ:RGLD) increased its quarterly dividend by 12.5% to $0.45 per share, continuing its streak of annual dividend increases since 2001.
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The company completed the full repayment of the Rainy River advanced stream deposit, indicating successful investment recovery.
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Royal Gold Inc (NASDAQ:RGLD) ended the quarter with $1.25 billion in total available liquidity, maintaining a strong financial position.
Negative Points
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The company experienced a normal course lag of about six months from production at mine sites to sales, affecting revenue timing.
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Lower gold sales from Xavantina and lower gold production at Cortez contributed to a decrease in depletion expense.
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The effective tax rate for the quarter, excluding discrete tax benefits, was 19.4%, which is within the guidance range but still a significant expense.
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Royal Gold Inc (NASDAQ:RGLD) faces uncertainty in economic conditions, reflected in generally elevated market volatility.
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The timing of deferred silver revenue from Pueblo Viejo remains uncertain, with expectations tempered for quick realization.
Q & A Highlights
Q: Can you explain how the new information in the 2024 asset handbook can help investors build a growth profile for Royal Gold? A: The asset handbook includes operators' multiyear production outlooks, which can help investors understand how operators see their projects. This information, condensed into a couple of pages, allows investors to refine their short- to medium-term models by providing details such as expected production and stream agreements.