Upcoming AWS Coverage on Banro Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. announces its post-earnings coverage on Royal Gold, Inc. (NASDAQ: RGLD). The Company disclosed its third quarter fiscal 2017 financial results on May 10, 2017. The manager of precious metal royalties reported earnings that exceeded market expectations. Register with us now for your free membership at:http://www.activewallst.com/register/.
One of Royal Gold's competitors within the Gold space, Banro Corp. (NYSE: BAA), reported on May 15, 2017, its financial and operating results for Q1 2017. AWS will be initiating a research report on Banro in the coming days.
Today, AWS is promoting its earnings coverage on RGLD; touching on BAA. Get our free coverage by signing up to http://www.activewallst.com/register/.
For its fiscal third quarter ended March 31, 2017, Royal Gold reported revenue of $107.0 million, up 14% compared to revenue of $93.5 million in Q1 2016. Higher sales from the Company's Mount Milligan and Pueblo Viejo streams more than offset lower sales from its Andacollo stream, which was due to timing of concentrate shipments.
Royal Gold's Q3 FY17 revenue included stream revenue of $76.6 million and royalty revenue of $30.4 million. The Company's Stream segment gold purchases were approximately 50,000 ounces, while sales totaled approximately 58,000 ounces. Stream segment silver purchases were approximately 374,000 ounces and silver sales were approximately 322,000 ounces in the reported quarter.
For Q3 FY17, Royal Gold's cost of sales was $22.4 million compared to $17.9 million in Q3 FY16. The increase was primarily due to higher gold sales from Mount Milligan and increased gold and silver sales from Pueblo Viejo. The Company's general and administrative expenses decreased to $5.4 million in the reported quarter compared to $7.7 million in the prior year's same quarter. The decrease was primarily related to lower non-cash stock-based compensation charges.
Royal Gold's exploration costs, which are related to its Peak Gold joint venture in Alaska, totaled $2.6 million in Q3 FY17 compared to $1.9 million in Q3 FY16. As of March 31, 2017, Royal Gold had earned a 24.9% interest in the joint venture. Peak Gold is currently preparing a resource estimate which is expected to be completed by the end of Q4 FY17. The Company's interest and other income decreased to $1.3 million in Q3 FY17 compared to $3.1 million in Q3 FY16. The decrease was primarily due to a realized gain on the sale of marketable securities during the prior year's comparable quarter and a decrease in the fair value of certain Company-owned warrants.
Royal Gold reported net income attributable to stockholders of $23.7 million, or $0.36 per share, for Q3 FY17. The Company's earnings increased significantly compared to Q3 FY16 net loss attributable to stockholders of $67.7 million, or ($1.04) per share. Royal Gold's earnings surpassed Wall Street's estimates of $0.31 per share.
Royal Gold had approximately 15,000 gold ounces and 375,000 silver ounces in inventory at March 31, 2017, compared to approximately 24,000 gold ounces and 323,000 silver ounces in inventory at December 31, 2016.
At March 31, 2017, Royal Gold had current assets of $134.2 million versus current liabilities of $24.8 million, resulting in working capital of $109.4 million. This compared to current assets of $164.8 million and current liabilities of $22.7 million at June 30, 2016, resulting in working capital of $142.1 million. As of March 31, 2017, Royal Gold had $350 million available and $300 million outstanding under its revolving credit facility. The Company reported record operating cash flow of $76.1 million, an increase of 15% on a y-o-y basis.
In the reported quarter, Royal Gold repaid $45.0 million of the outstanding borrowings under the revolving credit facility. Working capital combined with the Company's undrawn revolving credit facility, resulted in approximately $459.4 million of total available liquidity at March 31, 2017.
Wassa and Prestea Gold Stream Acquisition
On January 03, 2017, Royal Gold made the final scheduled payment of $10.0 million under the Wassa and Prestea streaming agreement. The Company has no further upfront payment obligations associated with the Wassa and Prestea gold stream. Commercial production was achieved at Wassa Underground on January 01, 2017. Commercial production at Prestea Underground is currently expected to be achieved in Q3 2017. Upon the earlier of either commercial production from Prestea Underground or January 01, 2018, the Company's streaming interest associated with Golden Star's Ghanaian assets will increase from 9.25% to 10.5%.
At the closing bell, on Friday, May 26, 2017, Royal Gold's stock marginally climbed 0.98%, ending the trading session at $80.75. A total volume of 345.10 thousand shares were traded at the end of the day. Royal Gold's stock price soared 21.87% in the last three months, 19.24% in the past six months, and 44.58% in the previous twelve months. Moreover, the stock surged 27.47% since the start of the year. The Company's shares are trading at a PE ratio of 51.66 and have a dividend yield of 1.19%. At Friday's closing price, the stock's net capitalization stands at $5.26 billion.
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