Proactiveinvestors
Royal Gold’s free cash flow surges and royalty revenues hit record level
Royal Gold (NASDAQ: RGLD, TSX: RGL) delivered record royalty revenues of $34.7 million in the second quarter of fiscal 2010, thanks to a combination of higher gold and copper prices combined with higher gold output from a number of mines.
“Higher revenues for the second quarter were largely driven by increased production at Taparko, Cortez, Leeville, and Mulatos as well as higher year-over-year gold and copper prices. Gold prices averaged $1,100 per ounce during the quarter, compared with $795 per ounce in the prior year quarter,” Royal Gold noted.
Net income in Q2 2010 was $9.6 million, or 24 cents per share, while free cash flow was $28.6 million, or 82% of revenues – an impressive 149% increase in the comparable quarter in fiscal 2009.
For the first half of fiscal 2010 (H1 2010) royalty revenue hit $60.9 million and net income was $16.7 million, or 41 cents per share.
As of December 31, 2009, the Company had net working capital of $346.6 million. Current assets were $354.4 million (including $316.8 million in cash and equivalents).
"Royal Gold had another great quarter due to strong production at our principal royalty properties and higher metal prices," said Tony Jensen, President and CEO. "These record financial results are prior to receiving any meaningful results from our Penasquito and Andacollo royalties which are in the construction and commissioning stage. We look forward to the significant role these properties will play in the future growth of the Company as they ramp up to full production in calendar 2010."
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