Royal Gold Reports Record Revenue

 

DENVER, CO - Royal Gold, Inc. reported net income attributable to Royal Gold stockholders of $7.1 million on record royalty revenue of $26.1 million for the first quarter of fiscal 2010. This compares to net income attributable to Royal Gold stockholders for the first quarter of fiscal 2009 of $5.7 million on royalty revenue of $16.1 million.

Higher revenues were largely driven by increased production at Taparko and Cortez, commencement of production at Dolores, new contributions from royalties obtained in the Barrick transaction and higher year-over-year gold prices. The increase in royalty revenue was partially offset by a decrease in copper prices and a decrease in production at Robinson. Higher net income attributable to Royal Gold stockholders resulted from increased royalty revenues, partially offset by higher depletion charges for newer properties that have been added to the Company’s royalty portfolio.

Free cash flow for the current quarter was a record $22.6 million, representing 87% of revenues, which was an increase of 70% compared to free cash flow of $13.3 million or 83% of revenues for the prior year comparable quarter.

As of September 30, 2009, the Company had net working capital of $328.3 million. Current assets were $333.7 million (including $307.5 million in cash and equivalents), compared to current liabilities of $5.4 million, resulting in a current ratio of 62 to 1.

Our record first quarter results reflect solid performance from our expanded portfolio of producing royalties, said Tony Jensen, President and CEO. Our long-term strategy of increased revenue diversification is now paying off in the form of strong quarterly revenue which we have seen over the past several quarters. And, we are only a few months away from adding initial production from the first sulfide circuit at Pe–asquito in Zacatecas, Mexico, an operation that we believe will have a significant impact on our revenue stream when it reaches full production.

The company’s address is 1660 Wynkoop Street, Suite 1000, Denver, CO 80202, 303-573-1660.