Royal Gold Inc (RGLD) Q3 2023 Earnings: Net Income Rises to $49.3 Million
Royal Gold Inc (NASDAQ:RGLD) reports Q3 2023 net income of $49.3 million, up from $45.8 million in the same period last year.
Total revenue for Q3 2023 reached $138.6 million, an increase from $131.4 million in Q3 2022.
Gold production at Mount Milligan expected to be 150,000 to 160,000 ounces, down from previous guidance.
Strike at Penasquito mine ends, operations expected to reach full capacity by end of Q4 2023.
Released on November 2, 2023, Royal Gold Inc (NASDAQ:RGLD)'s Q3 2023 earnings report shows a rise in net income to $49.3 million, up from $45.8 million in the same period last year. The increase in net income is primarily attributed to higher revenue.
Financial Performance
Royal Gold Inc (NASDAQ:RGLD) recognized total revenue of $138.6 million in Q3 2023, up from $131.4 million in Q3 2022. This increase is primarily due to higher gold production at the Cortez Legacy Zone and higher gold, silver, and copper prices. However, the suspension of operations at Penasquito on June 7, 2023, due to a strike resulted in no royalty revenue recognized for the three months ended September 30, 2023.
Operational Highlights
Centerra Gold Inc. reported that a full asset optimization review of the Mount Milligan mine in British Columbia has been launched. However, production during the third quarter was impacted by mine sequencing and lower recoveries. As a result, Centerra now expects full year 2023 gold production at Mount Milligan to be 150,000 to 160,000 ounces, down from the previous guidance range of 160,000 to 170,000 ounces.
Operations at the Penasquito mine, which were suspended due to a strike action, are expected to reach full operating capacity by the end of the fourth quarter of 2023, following a definitive agreement reached between Newmont Corporation and the Union.
Outlook for 2023
Royal Gold Inc (NASDAQ:RGLD) forecasts that sales for 2023 may be at the low end of, or slightly below, the previously issued guidance range of 320,000 to 345,000 GEOs. The company expects no changes to previously issued guidance for DD&A expense of $490 to $540 per GEO and an effective tax rate of 17% to 22% for 2023.
Conclusion
Royal Gold Inc (NASDAQ:RGLD) demonstrated a solid performance in Q3 2023, with an increase in net income and total revenue. Despite challenges such as the strike at the Penasquito mine and lower recoveries at Mount Milligan, the company remains optimistic about its future performance.
Explore the complete 8-K earnings release (here) from Royal Gold Inc for further details.
This article first appeared on GuruFocus.
