Royal Gold (RGLD) Issues Stream Segment Sales Update for Q4
Royal Gold, Inc. RGLD issued a stream segment sales update for fourth-quarter 2023. In the quarter, RGLD Gold AG — the fully-owned subsidiary of Royal Gold — sold 49,900 gold equivalent ounces (GEOs), comprising 39,100 gold ounces, 556,300 silver ounces and 1,100 tons of copper related to its streaming agreements.
The average realized price of gold was $1,955 per ounce in the fourth quarter compared with $1,933 per ounce in third-quarter 2023. The average realized price of silver stood at $23.18 per ounce, down from the third quarter’s $23.50. Average realized copper prices were $8,136 per ton, down 1.3% sequentially. The company ended the quarter with 15,200 ounces of gold and 383,100 ounces of silver in inventory.
In the three months ended Dec 31, 2023, the cost of sales was $417 per GEO compared with the prior quarter’s $416 per GEO.
Royal Gold reported adjusted earnings per share (EPS) of 76 cents in third-quarter 2023, missing the Zacks Consensus Estimate of 79 cents. The bottom line increased 7% year over year.
The company generated revenues of $139 million, up 5.5% year over year. The upside was driven by higher gold production at the Cortez Legacy Zone, the new Cortez royalties acquired in 2022, and higher gold, silver and copper prices. However, these factors were offset by the suspension of operations at Peñasquito due to a strike.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at 83 cents.
Price Performance
In the past year, shares of Royal Gold have lost 2% compared with the industry’s decline of 4%.
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Zacks Rank & Other Stocks to Consider
Royal Gold currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the basic materials space are Universal Stainless & Alloy Products, Inc. USAP, Carpenter Technology Corporation CRS and Ternium S.A. TX. USAP and CRS sport a Zacks Rank #1, and TX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 52 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 151.5% last year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 71.2% in a year.
The Zacks Consensus Estimate for Ternium’s 2023 earnings is pegged at $7.98 per share. It has an average trailing four-quarter earnings surprise of 38.6%. TX shares have gained 36.5% in a year.
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