Mining & Minerals

Royal Gold Reports Fiscal First Quarter 2009 Results and Restatement of Fiscal 2008 Financial Statements

  2008 NOV 17 - (VerticalNews.com) -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the leading precious metals royalty company, announced fiscal first quarter 2009 net income of $5.8 million, or $0.17 per basic share, on royalty revenue of $16.1 million. This compares to net income for the first quarter of fiscal 2008 of $5.5 million, or $0.19 per basic share, on royalty revenue of $12.5 million.

  Higher revenues were largely driven by increased production at Robinson, Leeville and Goldstrike in addition to higher metal prices on a quarter-over- quarter basis. The increase in net earnings was partially offset by a decrease in production at the Cortez Pipeline Mining Complex and an increase in depletion rates as a result of the newer properties which have been added to the Company's royalty portfolio.

  Free cash flow for the current quarter was $13.3 million, representing 83% of revenues compared to free cash flow of $9.8 million, or 78% of revenues for the prior year comparable quarter.

  As of September 30, 2008, the Company had a working capital surplus of $208.6 million. Current assets were $221.7 million (including $209.8 million in cash and equivalents), compared to current liabilities of $13.1 million, resulting in a current ratio of 17 to 1. On October 2, 2008, the Company used $150 million in cash to complete the acquisition of the Barrick Gold royalty portfolio.

  "Our results for the first fiscal quarter reflect solid performance from our overall portfolio of producing royalties, which offset the lower production at Cortez and production curtailment at Taparko," said Tony Jensen, President and CEO. "Many of Royal Gold's prior royalty acquisitions are now poised to generate revenue. In the next quarter we look forward to revenue contributions from the recently acquired Barrick Gold royalty portfolio, the beginning of revenue from Dolores, and we await sustained production at Taparko."

  Keywords: Royal Gold, Inc.

  This article was prepared by VerticalNews Mining & Minerals editors from staff and other reports. Copyright 2008, VerticalNews Mining & Minerals via VerticalNews.com.