Royal Gold, Inc. (RGLD) Bundle
A Brief History of Royal Gold, Inc.
Company Overview
Royal Gold, Inc. (RGLD) is a precious metals royalty and streaming company, primarily focused on acquiring and managing precious metals royalties and streams. As of December 31, 2023, the company had total assets of approximately $3.1 billion.
Financial Performance
For the fiscal year ended December 31, 2023, Royal Gold reported:
- Total revenue: $605.7 million
- Net income: $239.4 million
- Earnings per share: $3.64 (basic and diluted)
- Operating cash flow: $415.8 million
Revenue Breakdown
The revenue for the year ended December 31, 2023, was derived from:
| Revenue Source | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Stream Revenue | $418,280 | 69% |
| Royalty Revenue | $187,437 | 31% |
Metal Prices and Production Volumes
The average prices for key metals in 2023 were:
- Gold: $1,941 per ounce
- Silver: $23.35 per ounce
- Copper: $3.85 per pound
Reported production volumes for the year included:
| Metal | Production (in ounces or pounds) |
|---|---|
| Gold | 58,000 oz. (Mount Milligan) |
| Silver | 1.5 Moz. (Khoemacau) |
| Copper | 11.8 Mlbs. (Mount Milligan) |
Dividends and Shareholder Returns
Royal Gold announced an increase in its annual dividend for 2024, raising it from $1.50 to $1.60 per share, marking a 7% increase. The dividend is payable quarterly at $0.40 per share.
Debt and Liquidity Position
As of December 31, 2023, Royal Gold had:
- Working capital of $95 million
- Cash and equivalents of $104.2 million
- Debt outstanding of $250 million
- Revolving credit facility available of $750 million
Recent Developments
In 2023, Royal Gold entered into a Cost Support Agreement with Centerra for Mount Milligan, aimed at extending the mine life to 2035.
Summary of Cash Flows
For the year ended December 31, 2023, cash flows were detailed as follows:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Operating Activities | $415.8 |
| Investing Activities | ($2.8) |
| Financing Activities | ($427.4) |
Historical Financial Performance
Year-over-year financial performance comparisons are summarized as follows:
| Financial Metric | 2023 | 2022 |
|---|---|---|
| Total Revenue | $605.7 million | $603.2 million |
| Net Income | $239.4 million | $239.0 million |
| Operating Cash Flow | $415.8 million | $417.3 million |
A Who Owns Royal Gold, Inc. (RGLD)
Shareholder Structure as of 2024
As of February 8, 2024, Royal Gold, Inc. (RGLD) had 776 holders of record of its common stock. This figure does not account for beneficial ownership of shares held in nominee names.
Institutional Ownership
Institutional ownership of Royal Gold, Inc. is significant, with various institutions holding substantial stakes. The following table summarizes the top institutional shareholders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 8,272,000 | 12.59% |
| BlackRock, Inc. | 7,894,000 | 11.97% |
| State Street Corporation | 3,435,000 | 5.23% |
| Goldman Sachs Group, Inc. | 1,280,000 | 1.94% |
| Invesco Ltd. | 1,200,000 | 1.82% |
Executive Ownership
Executive officers and directors also hold a notable number of shares in Royal Gold, Inc. The table below illustrates their holdings:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| William Heissenbuttel | President & CEO | 200,000 | 0.30% |
| Paul Libner | CFO | 50,000 | 0.08% |
| William Hayes | Chairman | 100,000 | 0.15% |
| Fabiana Chubbs | Director | 25,000 | 0.04% |
| Kevin McArthur | Director | 30,000 | 0.05% |
Recent Stock Performance
As of December 31, 2023, the stock price of Royal Gold was $150. This reflects a notable increase compared to previous years:
| Year | Stock Price ($) |
|---|---|
| 2023 | 150 |
| 2022 | 138 |
| 2021 | 127 |
| 2020 | 27 |
| 2019 | 144 |
Dividends
Royal Gold has consistently increased its dividends over the years. In 2024, the annual dividend was set at $1.60 per share, distributed quarterly at $0.40 per share. This represents a 7% increase from the previous year's dividend of $1.50 per share.
Ownership Summary
The total common shares outstanding for Royal Gold, Inc. as of December 31, 2023, were approximately 65.6 million shares. The breakdown of ownership is as follows:
| Type of Ownership | Percentage |
|---|---|
| Institutional Investors | Approximately 65% |
| Insider Ownership | Approximately 1.5% |
| Public Float | Approximately 33.5% |
Conclusion on Ownership Trends
Royal Gold, Inc. has a diversified ownership structure with substantial institutional investment, reflecting confidence in the company's strategic direction and financial health. The increasing dividends and consistent share price growth also indicate a positive outlook for investors.
Royal Gold, Inc. (RGLD) Mission Statement
Overview of Mission Statement
As of 2024, Royal Gold, Inc. (RGLD) emphasizes its commitment to providing superior returns to its shareholders through the acquisition and management of precious metal royalties and streams. The company aims to leverage its extensive portfolio of high-quality assets while maintaining a strong focus on sustainability and responsible resource development.
Financial Performance
Royal Gold has demonstrated robust financial performance in recent quarters. The following table summarizes key financial metrics from the fourth quarter of 2023:
| Metric | Q4 2023 | Q4 2022 | Q4 2021 |
|---|---|---|---|
| Total Revenue | $605.7 million | $603.2 million | $342.9 million |
| Net Income | $240.1 million | $239.9 million | $138.8 million |
| Basic Earnings per Share | $3.64 | $3.64 | $2.11 |
| Diluted Earnings per Share | $3.63 | $3.63 | $2.10 |
| Cash Dividends per Share | $1.525 | $1.425 | $0.65 |
Revenue Breakdown
The revenue generated by Royal Gold is primarily derived from its royalty and stream agreements, which are diversified across various metals. The following table illustrates the breakdown of revenue by metal type for the year 2023:
| Metal Type | Stream Revenue | Royalty Revenue | Total Revenue |
|---|---|---|---|
| Gold | $158.2 million | $154.3 million | $312.5 million |
| Silver | $34.6 million | $8.6 million | $43.2 million |
| Copper | $45.6 million | $11.8 million | $57.4 million |
| Other | $179.9 million | $12.8 million | $192.7 million |
| Total | $418.3 million | $187.4 million | $605.7 million |
Strategic Acquisitions
Royal Gold has actively pursued strategic acquisitions to enhance its royalty portfolio. Notable transactions include:
- Acquisition of a sliding scale gross royalty on the Cortez Complex for $525 million on August 2, 2022.
- Acquisition of a 0.5% net smelter return royalty on the Lawyers Project for $8.0 million on March 24, 2022.
- Advance payments totaling $10.0 million for the Khoemacau silver stream, increasing the company's payable silver interest to 100%.
Sustainability Commitment
Royal Gold is dedicated to sustainability and responsible mining practices. The company aims to minimize its environmental footprint while maximizing the economic benefits of its operations. This commitment is reflected in its ongoing efforts to engage with stakeholders and invest in community development initiatives.
Market Position and Future Outlook
As of 2024, Royal Gold continues to strengthen its market position within the precious metals industry. The company is well-positioned to capitalize on favorable market conditions and ongoing demand for gold and other precious metals. The outlook remains positive due to its diversified portfolio, strong financial foundation, and strategic growth initiatives.
How Royal Gold, Inc. (RGLD) Works
Business Model
Royal Gold, Inc. (RGLD) operates by acquiring and managing precious metal streams and royalties. The company does not engage in direct mining activities but instead finances mining operations in exchange for a share of the revenue from metal sales. This model allows RGLD to mitigate operational risks while benefiting from the performance of mining assets.
Financial Performance
For the fiscal year ended December 31, 2023, Royal Gold reported:
- Total revenue: $605.7 million
- Net income attributable to Royal Gold stockholders: $239.4 million
- Basic earnings per share: $3.64
- Diluted earnings per share: $3.63
- Cash dividends declared per share: $1.525
Revenue Breakdown
Revenue is derived from two primary sources: streams and royalties. The following table summarizes the revenue and production figures for the year ended December 31, 2023, compared to 2022.
| Stream/Royalty | Revenue 2023 (in $000s) | Production 2023 | Revenue 2022 (in $000s) | Production 2022 |
|---|---|---|---|---|
| Mount Milligan | $158,167 | 58,000 oz. Gold, 11.8 Mlbs Copper | $180,543 | 67,800 oz. Gold, 14.8 Mlbs Copper |
| Pueblo Viejo | $76,247 | 27,100 oz. Gold, 1.0 Moz Silver | $85,863 | 33,200 oz. Gold, 1.2 Moz Silver |
| Andacollo | $48,920 | 25,500 oz. Gold | $47,347 | 26,200 oz. Gold |
| Khoemacau | $34,602 | 1.5 Moz Silver | $18,786 | 887,700 oz. Silver |
| Other | $100,344 | 48,500 oz. Gold, 270,100 oz. Silver | $85,254 | 44,300 oz. Gold, 225,400 oz. Silver |
| Total Stream Revenue | $418,280 | $417,793 | ||
| Cortez Legacy Zone | $79,920 | 396,000 oz. Gold | $47,769 | 299,800 oz. Gold |
| Cortez CC Zone | $14,626 | 494,700 oz. Gold | $2,790 | 114,400 oz. Gold |
| Peñasquito | $17,772 | 129,600 oz. Gold, 16.7 Moz Silver | $43,165 | 572,600 oz. Gold, 29.7 Moz Silver |
| Total Royalty Revenue | $187,437 | $185,413 | ||
| Total Revenue | $605,717 | $603,206 |
Market and Metal Prices
For the year ended December 31, 2023, the average metal prices were:
- Gold: $1,941 per ounce
- Silver: $23.35 per ounce
- Copper: $3.85 per pound
Cash Flow and Dividends
Royal Gold generated $415.8 million of net operating cash flow for the year ended December 31, 2023. The company increased its annual dividend to $1.60 per basic share for 2024, reflecting a 7% increase compared to 2023.
Debt and Financial Position
As of December 31, 2023, Royal Gold had:
- Total assets: $3,361.1 million
- Total liabilities: $460.4 million
- Stockholders' equity: $2,900.6 million
- Debt outstanding: $245.9 million
Geographic Distribution of Interests
The table below details the geographic distribution of Royal Gold's stream and royalty interests as of December 31, 2023.
| Region | Total Stream Interests (in $000s) | Total Royalty Interests (in $000s) | Total Interests (in $000s) |
|---|---|---|---|
| Canada | $461,398 | $614,900 | $1,076,298 |
| Dominican Republic | $311,050 | $— | $311,050 |
| Africa | $264,529 | $321 | $264,850 |
| Chile | $222,629 | $224,116 | $446,745 |
| United States | $— | $794,891 | $794,891 |
| Mexico | $— | $41,803 | $41,803 |
| Australia | $— | $21,288 | $21,288 |
| Rest of World | $92,010 | $26,639 | $118,649 |
| Total | $1,351,616 | $1,723,958 | $3,075,574 |
Strategic Acquisitions
Royal Gold acquired a sliding scale gross royalty on production from the Cortez Complex for $525 million in cash, which became payable during the quarter ended September 30, 2022. The acquisition was funded by debt and cash on hand.
Key Operators
Significant operators contributing to Royal Gold's revenue include:
- Centerra: $158,167 (26.1% of total revenue)
- Barrick: $75,259 (12.4% of total revenue)
How Royal Gold, Inc. (RGLD) Makes Money
Revenue Sources Overview
Royal Gold, Inc. generates revenue primarily through two segments: stream interests and royalty interests. As of December 31, 2023, stream interests accounted for 69% of total revenue, while royalty interests contributed 31%.
Stream Interests
Stream interests involve agreements to purchase metals produced from mining operations at predetermined prices. As of December 31, 2023, Royal Gold owned nine stream interests across eight production-stage properties and one development-stage property.
| Property | Revenue (2023) | Gold Production (oz) | Copper Production (Mlbs) |
|---|---|---|---|
| Mount Milligan | $158,167,000 | 58,000 | 11.8 |
| Pueblo Viejo | $76,247,000 | 27,100 | N/A |
| Andacollo | $48,920,000 | 25,500 | N/A |
| Khoemacau | $34,602,000 | N/A | N/A |
| Other | $100,344,000 | 48,500 | N/A |
| Total Stream Revenue | $418,280,000 | 159,100 | 11.8 |
Royalty Interests
Royalty interests provide a share of revenues generated from mining operations without direct involvement in mining activities. As of December 31, 2023, Royal Gold owned royalty interests in 29 production-stage properties, 21 development-stage properties, and 119 exploration-stage properties.
| Property | Revenue (2023) | Gold Production (oz) | Silver Production (Moz) |
|---|---|---|---|
| Cortez Legacy Zone | $79,920,000 | 396,000 | N/A |
| Cortez CC Zone | $14,626,000 | 494,700 | N/A |
| Peñasquito | $17,772,000 | 129,600 | 16.7 |
| Other | $75,119,000 | N/A | N/A |
| Total Royalty Revenue | $187,437,000 | 1,020,300 | 16.7 |
Financial Performance
For the year ended December 31, 2023, Royal Gold reported total revenue of $605.7 million, a slight increase compared to $603.2 million for the previous year. The breakdown of revenue is as follows:
| Revenue Type | 2023 Amount | 2022 Amount |
|---|---|---|
| Stream Revenue | $418,280,000 | $417,793,000 |
| Royalty Revenue | $187,437,000 | $185,413,000 |
| Total Revenue | $605,717,000 | $603,206,000 |
Average Metal Prices
The financial results of Royal Gold are closely tied to the prices of metals. For the year ended December 31, 2023, the average prices were:
| Metal | Average Price (2023) | Percentage of Revenue |
|---|---|---|
| Gold ($/oz) | $1,941 | 76% |
| Silver ($/oz) | $23.35 | 12% |
| Copper ($/lb) | $3.85 | 9% |
| Other | N/A | 3% |
Net Income
Royal Gold recorded a net income attributable to stockholders of $239.4 million for the year ended December 31, 2023, compared to $239.0 million for the previous year. The earnings per share were $3.64 for both basic and diluted shares.
Dividend Policy
The company declared a cash dividend of $1.60 per basic share for the calendar year 2024, representing a 7% increase from the previous year.
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