Royal Gold Reports Fiscal 2010 Results 

 

DENVER, CO - Royal Gold, Inc. record record royalty revenue of $35 million for the third quarter of fiscal 2010 and a net loss attributable to Royal Gold stockholders of $5.8 million, or $0.13 per basic share. This compares to royalty revenue of $20.8 million and net income of $4.1 million, or $0.12 per basic share, for the third quarter of fiscal 2009. For the nine-month period ended March 31, 2010, royalty revenue was $95.9 million and net income attributable to Royal Gold stockholders was $11.0 million, or $0.26 per basic share. This compares to royalty revenue of $51.5 million and net income of $31.3 million, or $0.92 per basic share, for the nine-month period ended March 31, 2009. During the three and nine months ended March 31, 2010, the Company's financial results included the pre-tax effects of severance and acquisition costs of approximately $16.9 million and $19.2 million, respectively, related to the Company's acquisition of International Royalty Corporation ("IRC"). In addition, the Company took a tax charge of approximately $2.0 million associated with its intention to make a U.S. tax election to step-up the basis of the IRC assets. The after tax effect of these IRC related costs on basic earnings per share was $0.33 and $0.39, during the three and nine months ended March 31, 2010, respectively. Excluding theafter tax effect of these items, net income would have been $8.9 million, or $0.20 per basic share for the fiscal third quarter and $27.1 million and $0.65 per basic share for the nine-month period. Higher revenues for the third quarter were largely driven by increased year-over-year production at Cortez and Taparko, ramp up of production at Dolores and Peûasquito, higher year-over-year gold and copper prices, and approximately one month of royalty revenue from the producing properties acquired in the IRC transaction. The gold price increased approximately 15.5%, with an average of $1,109 per ounce during the quarter, compared with $960 per ounce in the prior year quarter. Gold royalty revenue accounted for 81% of total revenue for the third quarter of fiscal 2010.