Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | ROYAL GOLD INC | |
Entity Central Index Key | 85,535 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shares Outstanding | 65,454,278 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
ASSETS | ||
Cash and equivalents | $ 88,395 | $ 85,847 |
Royalty receivables | 29,079 | 26,886 |
Income tax receivable | 26,023 | 22,169 |
Stream inventory | 7,794 | 7,883 |
Prepaid expenses and other | 4,488 | 822 |
Total current assets | 155,779 | 143,607 |
Stream and royalty interests, net | 2,852,598 | 2,892,256 |
Other assets | 57,518 | 58,202 |
Total assets | 3,065,895 | 3,094,065 |
LIABILITIES | ||
Accounts payable | 2,924 | 3,908 |
Dividends payable | 15,708 | 15,682 |
Income tax payable | 11,686 | 5,651 |
Foreign withholding taxes payable | 3,462 | 3,425 |
Other current liabilities | 5,915 | 5,617 |
Total current liabilities | 39,695 | 34,283 |
Debt | 539,772 | 586,170 |
Deferred tax liabilities | 121,731 | 121,330 |
Uncertain tax positions | 28,120 | 25,627 |
Other long-term liabilities | 6,391 | 6,391 |
Total liabilities | 735,709 | 773,801 |
Commitments and contingencies (Note 10) | ||
EQUITY | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued | ||
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,306,271 and 65,179,527 shares outstanding, respectively | 653 | 652 |
Additional paid-in capital | 2,184,639 | 2,185,796 |
Accumulated other comprehensive income | 1,076 | 879 |
Accumulated earnings | 100,972 | 88,050 |
Total Royal Gold stockholders' equity | 2,287,340 | 2,275,377 |
Non-controlling interests | 42,846 | 44,887 |
Total equity | 2,330,186 | 2,320,264 |
Total liabilities and equity | $ 3,065,895 | $ 3,094,065 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Jun. 30, 2017 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 65,306,271 | 65,179,527 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements of Operations and Comprehensive Income | ||
Revenue | $ 112,476 | $ 117,947 |
Costs and expenses | ||
Cost of sales | 20,419 | 22,662 |
General and administrative | 6,899 | 10,507 |
Production taxes | 543 | 497 |
Exploration costs | 3,203 | 3,288 |
Depreciation, depletion and amortization | 39,692 | 40,102 |
Total costs and expenses | 70,756 | 77,056 |
Operating income | 41,720 | 40,891 |
Interest and other income | 989 | 1,557 |
Interest and other expense | (8,617) | (8,305) |
Income before income taxes | 34,092 | 34,143 |
Income tax expense | (7,544) | (7,188) |
Net income | 26,548 | 26,955 |
Net loss attributable to non-controlling interests | 2,083 | 2,832 |
Net income attributable to Royal Gold common stockholders | 28,631 | 29,787 |
Net income | 26,548 | 26,955 |
Adjustments to comprehensive income, net of tax | ||
Unrealized change in market value of available-for-sale securities | 197 | |
Comprehensive income | 26,745 | 26,955 |
Comprehensive loss (income) attributable to non-controlling interests | 2,083 | 2,832 |
Comprehensive income attributable to Royal Gold stockholders | $ 28,828 | $ 29,787 |
Net income per share available to Royal Gold common stockholders: | ||
Basic earnings per share (in dollars per share) | $ 0.44 | $ 0.46 |
Basic weighted average shares outstanding (in shares) | 65,235,496 | 65,116,686 |
Diluted earnings per share (in dollars per share) | $ 0.44 | $ 0.46 |
Diluted weighted average shares outstanding (in shares) | 65,404,680 | 65,280,904 |
Cash dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 26,548 | $ 26,955 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 39,692 | 40,102 |
Amortization of debt discount and issuance costs | 3,679 | 3,351 |
Non-cash employee stock compensation expense | 2,373 | 4,144 |
Deferred tax expense | (727) | (1,030) |
Other | (223) | (153) |
Changes in assets and liabilities: | ||
Royalty receivables | (2,193) | (7,048) |
Stream inventory | 89 | (3,125) |
Income tax receivable | (3,854) | (3,215) |
Prepaid expenses and other assets | (1,654) | (1,724) |
Accounts payable | (985) | 1,777 |
Income tax payable | 6,035 | (13,264) |
Foreign withholding taxes payable | 37 | 1,086 |
Uncertain tax positions | 2,493 | 6,374 |
Other liabilities | 299 | 878 |
Net cash provided by operating activities | 71,609 | 55,108 |
Cash flows from investing activities: | ||
Acquisition of stream and royalty interests | (5) | (90,083) |
Other | 100 | (226) |
Net cash provided by (used in) investing activities | 95 | (90,309) |
Cash flows from financing activities: | ||
Borrowings from revolving credit facility | 70,000 | |
Repayment of revolving credit facility | (50,000) | |
Net payments from issuance of common stock | (3,529) | (2,038) |
Common stock dividends | (15,682) | (15,012) |
Purchase of additional royalty interest from non-controlling interest | (1,025) | |
Other | 55 | (315) |
Net cash (used in) provided by financing activities | (69,156) | 51,610 |
Net increase in cash and equivalents | 2,548 | 16,409 |
Cash and equivalents at beginning of period | 85,847 | 116,633 |
Cash and equivalents at end of period | $ 88,395 | $ 133,042 |
OPERATIONS, SUMMARY OF SIGNIFIC
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS | 3 Months Ended |
Sep. 30, 2017 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS | 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS Royal Gold, Inc. (“Royal Gold”, the “Company”, “we”, “us”, or “our”), together with its subsidiaries, is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in production or in the development stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in mining projects that provide the right to revenue or metals produced from the project after deducting specified costs, if any. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three months ended September 30, 2017, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2018. These interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017 filed with the Securities and Exchange Commission on August 10, 2017 (“Fiscal 2017 10-K”). Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. Reclassified amounts were not material to the financial statements. Recently Issued and Adopted Accounting Standards Recently Issued In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) guidance for the recognition of revenue from contracts with customers. This ASU superseded virtually all of the existing revenue recognition guidance under U.S. GAAP. The core principle of the five–step model is that an entity will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach, and is effective for the Company’s fiscal year beginning July 1, 2018. Early adoption is permitted. We plan to implement the new ASU revenue recognition guidance as of July 1, 2018, using the modified retrospective method with the cumulative effect, if any, of initial adoption to be recognized in Accumulated earnings at the date of initial application. We are in the initial stages of our evaluation of the impact of the new standard on our accounting policies, processes, and financial reporting. Based on the evaluation performed to-date, we expect to identify similar performance obligations as compared with deliverables and separate units of account previously identified. We will continue to assess the impact of adopting this ASU throughout the remainder of fiscal year 2018. Recently Adopted In March 2016, the FASB issued ASU guidance related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, statement of cash flows presentation, estimating forfeitures when calculating compensation expense, and classification of awards as either equity or liabilities. The new standard requires all excess tax benefits and tax deficiencies to be recognized as income tax benefit (expense) in the income statement. The new guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than a financing activity and requires presentation of cash paid to a tax authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation as a financing activity. The new guidance also provides for an election to account for forfeitures of stock-based compensation. The Company adopted the ASU guidance effective July 1, 2017. With respect to the forfeiture election, the Company will continue its current practice of estimating forfeitures when calculating compensation expense. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements or related disclosures. |
STREAM AND ROYALTY INTERESTS, N
STREAM AND ROYALTY INTERESTS, NET | 3 Months Ended |
Sep. 30, 2017 | |
STREAM AND ROYALTY INTERESTS, NET | |
STREAM AND ROYALTY INTERESTS, NET | 2. STREAM AND ROYALTY INTERESTS, NET The following tables summarize the Company’s stream and royalty interests, net as of September 30, 2017 and June 30, 2017. As of September 30, 2017 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (123,427) $ 667,208 Pueblo Viejo 610,404 (79,801) 530,603 Andacollo 388,182 (43,722) 344,460 Wassa and Prestea 146,475 (28,695) 117,780 Total production stage stream interests 1,935,696 (275,645) 1,660,051 Production stage royalty interests: Voisey's Bay 205,724 (85,671) 120,053 Peñasquito 99,172 (35,882) 63,290 Holt 34,612 (20,103) 14,509 Cortez 20,878 (10,879) 9,999 Other 483,643 (343,722) 139,921 Total production stage royalty interests 844,029 (496,257) 347,772 Total production stage stream and royalty interests 2,779,725 (771,902) 2,007,823 Development stage stream interests: Rainy River 175,727 — 175,727 Other 12,031 — 12,031 Total development stage stream interests 187,758 — 187,758 Development stage royalty interests: Pascua-Lama 380,657 — 380,657 Cortez 59,803 — 59,803 Other 63,811 — 63,811 Total development stage royalty interests 504,271 — 504,271 Total development stage stream and royalty interests 692,029 — 692,029 Total exploration stage royalty interests 152,746 — 152,746 Total stream and royalty interests $ 3,624,500 $ (771,902) $ 2,852,598 As of June 30, 2017 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ $ 676,308 Pueblo Viejo 610,404 (67,149) 543,255 Andacollo 388,182 (39,404) 348,778 Wassa and Prestea 146,475 (22,715) 123,760 Total production stage stream interests 1,935,696 (243,595) 1,692,101 Production stage royalty interests: Voisey's Bay 205,724 (85,671) 120,053 Peñasquito 99,172 (34,713) 64,459 Holt 34,612 (19,669) 14,943 Cortez 20,873 (10,633) 10,240 Other 483,643 (337,958) 145,685 Total production stage royalty interests 844,024 (488,644) 355,380 Total production stage stream and royalty interests 2,779,720 (732,239) 2,047,481 Development stage stream interests: Rainy River 175,727 — 175,727 Other 12,031 — 12,031 Total development stage stream interests 187,758 — 187,758 Development stage royalty interests: Pascua-Lama 380,657 — 380,657 Cortez 59,803 — 59,803 Other 63,811 — 63,811 Total development stage royalty interests 504,271 — 504,271 Total development stage stream and royalty interests 692,029 — 692,029 Total exploration stage royalty interests 152,746 — 152,746 Total stream and royalty interests $ 3,624,495 $ (732,239) $ 2,892,256 |
DEBT
DEBT | 3 Months Ended |
Sep. 30, 2017 | |
DEBT | |
DEBT | 3. DEBT The Company’s non-current debt as of September 30, 2017 and June 30, 2017 consists of the following: As of September 30, 2017 As of June 30, 2017 Principal Unamortized Discount Debt Issuance Costs Total Principal Unamortized Discount Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Convertible notes due 2019 $ 370,000 $ (22,206) $ (2,318) $ 345,476 $ 370,000 $ (25,251) $ (2,646) $ 342,103 Revolving credit facility 200,000 — (5,704) 194,296 250,000 — (5,933) 244,067 Total debt $ 570,000 $ (22,206) $ (8,022) $ 539,772 $ 620,000 $ (25,251) $ (8,579) $ 586,170 Convertible Senior Notes Due 2019 In June 2012, the Company completed an offering of $370 million aggregate principal amount of 2.875% convertible senior notes due 2019 (“2019 Notes”). The 2019 Notes bear interest at the rate of 2.875% per annum, and the Company is required to make semi-annual interest payments on the outstanding principal balance of the 2019 Notes on June 15 and December 15 of each year, beginning December 15, 2012. The 2019 Notes mature on June 15, 2019. Interest expense recognized on the 2019 Notes for the three months ended September 30, 2017, was $6.0 million compared to $5.8 million for the three months ended September 30, 2016, and included the contractual coupon interest, the accretion of the debt discount and amortization of the debt issuance costs. Revolving credit facility The Company maintains a $1 billion revolving credit facility. As of September 30, 2017, the Company had $200 million outstanding and $800 million available under the revolving credit facility with an interest rate on borrowings of LIBOR plus 1.75% for an all-in rate of 3.07%. During the three months ended September 30, 2017, the Company repaid $50.0 million of the outstanding borrowings under the revolving credit facility. Royal Gold may repay borrowings under the revolving credit facility at any time without premium or penalty. Interest expense recognized on the revolving credit facility for the three months ended September 30, 2017, was $1.8 million and $1.9 million for the three months ended September 30, 2016, and included interest on the outstanding borrowings and the amortization of the debt issuance costs. As discussed in Note 5 to the notes to consolidated financial statements in the Company’s Fiscal 2017 10-K, the Company has financial covenants associated with its revolving credit facility. As of September 30, 2017, the Company was in compliance with each financial covenant. |
REVENUE
REVENUE | 3 Months Ended |
Sep. 30, 2017 | |
REVENUE | |
REVENUE | 4. REVENUE Revenue is comprised of the following: Three Months Ended September 30, September 30, 2017 2016 (Amounts in thousands) Stream interests $ 78,762 $ 85,504 Royalty interests 33,714 32,443 Total revenue $ 112,476 $ 117,947 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 5. STOCK-BASED COMPENSATION The Company recognized stock-based compensation expense as follows: Three Months Ended September 30, September 30, 2017 2016 (Amounts in thousands) Stock options $ 91 $ 108 Stock appreciation rights 488 468 Restricted stock 1,426 1,374 Performance stock 368 2,194 Total stock-based compensation expense $ 2,373 $ 4,144 Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income. During the three months ended September 30, 2017 and 2016, the Company granted the following stock-based compensation awards: Three Months Ended September 30, September 30, 2017 2016 (Number of shares) Stock options 6,858 7,200 Stock appreciation rights 71,262 63,340 Restricted stock 50,380 44,890 Performance stock 34,010 29,830 Total equity awards granted 162,510 145,260 As of September 30, 2017, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows: Unrecognized Weighted- compensation average vesting expense period (years) Stock options $ 473 2.0 Stock appreciation rights 3,627 2.3 Restricted stock 7,684 3.4 Performance stock 2,790 2.1 |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 3 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE ("EPS") | |
EARNINGS PER SHARE ("EPS") | 6. EARNINGS PER SHARE (“EPS”) Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company’s unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. The Company’s unexercised stock options, unexercised SSARs and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic earnings per common share are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share. The following tables summarize the effects of dilutive securities on diluted EPS for the period: Three Months Ended September 30, September 30, 2017 2016 (in thousands, except per share data) Net income available to Royal Gold common stockholders $ 28,631 $ 29,787 Weighted-average shares for basic EPS 65,235,496 65,116,686 Effect of other dilutive securities 169,184 164,218 Weighted-average shares for diluted EPS 65,404,680 65,280,904 Basic earnings per share $ 0.44 $ 0.46 Diluted earnings per share $ 0.44 $ 0.46 The calculation of weighted average shares includes all of our outstanding common stock. The Company intends to settle the principal amount of the 2019 Notes in cash. As a result, there will be no impact to diluted earnings per share unless the share price of the Company’s common stock exceeds the conversion price of $102.91. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2017 | |
INCOME TAXES | |
INCOME TAXES | 7. INCOME TAXES Three Months Ended September 30, September 30, 2017 2016 (Amounts in thousands, except rate) Income tax expense $ 7,544 $ 7,188 Effective tax rate The increase in the effective tax rate for the three months ended September 30, 2017 is primarily attributable to the re-measurement of Canadian dollar deferred tax liabilities to US dollars due to changes in the Canadian dollar to US dollar exchange rate. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 8. SEGMENT INFORMATION The Company manages its business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table: As of September 30, 2017 As of June 30, 2017 Stream interest Royalty interest Total stream Stream interest Royalty Total stream Canada $ 842,935 $ 220,160 $ 1,063,095 $ 852,035 $ 221,618 $ 1,073,653 Dominican Republic 530,603 — 530,603 543,256 — 543,256 Chile 344,460 453,369 797,829 348,778 453,369 802,147 Africa 117,780 553 118,333 123,760 572 124,332 Mexico — 103,039 103,039 — 105,889 105,889 United States — 167,430 167,430 — 168,378 168,378 Australia — 36,563 36,563 — 37,409 37,409 Other 12,031 23,675 35,706 12,030 25,162 37,192 Total $ 1,847,809 $ 1,004,789 $ 2,852,598 $ 1,879,859 $ 1,012,397 $ 2,892,256 The Company’s revenue, cost of sales and net revenue by reportable segment for the three months ended September 30, 2017 and 2016, is geographically distributed as shown in the following table: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Revenue Cost of sales Net revenue Revenue Cost of sales Net revenue Streams: Canada $ 31,952 $ $ 22,729 $ 38,386 $ 12,578 $ 25,808 Dominican Republic 25,403 7,588 17,815 20,950 5,896 15,054 Chile 12,337 1,812 10,525 20,169 2,998 17,171 Africa 9,070 1,796 7,274 5,999 1,190 4,809 Total streams $ 78,762 $ 20,419 $ 58,343 $ 85,504 $ 22,662 $ 62,842 Royalties: Mexico $ 10,897 $ — $ 10,897 $ 9,596 $ — $ 9,596 United States 10,429 — 10,429 9,706 — 9,706 Canada 6,092 — 6,092 6,188 — 6,188 Australia 3,320 — 3,320 3,462 — 3,462 Africa 462 — 462 824 — 824 Chile — — — 489 — 489 Other 2,514 — 2,514 2,178 — 2,178 Total royalties $ 33,714 $ — $ 33,714 $ 32,443 $ — $ 32,443 Total streams and royalties $ 112,476 $ 20,419 $ 92,057 $ 117,947 $ 22,662 $ 95,285 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS FASB Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: Level 1: Quoted prices for identical instruments in active markets; Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth the Company’s financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As of September 30, 2017 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Assets (In thousands): Marketable equity securities (1) $ 4,998 $ 4,998 $ 4,998 $ — $ — Total assets $ 4,998 $ 4,998 $ — $ — Liabilities (In thousands): Debt (2) $ 424,794 $ 409,538 $ 409,538 $ — $ — Total liabilities $ 409,538 $ 409,538 $ — $ — (1) Available-for-sale securities of $3.9 million included within Other assets and trading securities of $1.1 million included within Prepaid expenses and other on the Company’s consolidated balance sheets. (2) Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within Additional paid-in capital on the Company’s consolidated balance sheets. The Company’s marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets. The fair value of the Level 1 marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. The warrants that were part of the term loan funded to a subsidiary of Golden Star Resources Ltd. (“Golden Star”) in July 2015 were exercised during the quarter-ended September 30, 2017. The warrants had been classified within Level 2 of the fair value hierarchy as of June 30, 2017. The fair value of the Golden Star common shares received by the Company upon exercise of the warrants are classified within Level 1 of the fair value hierarchy as of September 30, 2017. The Company sold all of the common shares of Golden Star received upon exercise of the warrants in October 2017. The Company’s debt classified within Level 1 of the fair value hierarchy is valued using quoted prices in an active market. The carrying value of the Company’s revolving credit facility (Note 3) approximates fair value as of September 30, 2017. As of September 30, 2017, the Company also had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Ilovica Gold Stream Acquisition As of September 30, 2017, the Company’s conditional funding schedule for $163.75 million related to its Ilovica gold stream acquisition made in October 2014 remains subject to certain conditions. Voisey’s Bay The Company indirectly owns a royalty on the Voisey’s Bay mine in Newfoundland and Labrador owned by Vale Newfoundland & Labrador Limited (“VNL”). The royalty is directly owned by the Labrador Nickel Royalty Limited Partnership (“LNRLP”), in which the Company’s wholly-owned indirect subsidiary, Voisey’s Bay Holding Corporation, is the general partner and 90% owner. The remaining 10% interest in LNRLP is owned by Altius Royalty Corporation, a company unrelated to Royal Gold. On October 6, 2017, LNRLP filed a Fresh as Amended Statement of Claim, amending the original October 16, 2009 Statement of Claim and amendments thereto made in December 2014, in the Supreme Court of Newfoundland and Labrador Trial Division against Vale Inco Limited, now known as Vale Canada Limited, and its wholly-owned subsidiaries, Vale Inco Atlantic Sales Limited and VNL, related to calculation of the NSR on the sale of concentrates, including nickel concentrates, from the Voisey’s Bay mine. LNRLP asserts that the defendants have incorrectly calculated the NSR since production at Voisey’s Bay began in late 2005, and since defendants began processing Voisey’s Bay concentrates at the new Long Harbour processing facility, and that the defendants have breached their contractual duties of good faith in several ways. LNRLP requests an order in respect of the correct calculation of future payments, and unspecified damages for non-payment and underpayment of past royalties to the date of the claim, together with additional damages until the date of trial, interest, costs and other damages. The litigation is in the discovery phase, and trial is expected to commence in the second half of calendar 2018. |
OPERATIONS, SUMMARY OF SIGNIF16
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS | |
Recently Issued and Recently Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards Recently Issued In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) guidance for the recognition of revenue from contracts with customers. This ASU superseded virtually all of the existing revenue recognition guidance under U.S. GAAP. The core principle of the five–step model is that an entity will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach, and is effective for the Company’s fiscal year beginning July 1, 2018. Early adoption is permitted. We plan to implement the new ASU revenue recognition guidance as of July 1, 2018, using the modified retrospective method with the cumulative effect, if any, of initial adoption to be recognized in Accumulated earnings at the date of initial application. We are in the initial stages of our evaluation of the impact of the new standard on our accounting policies, processes, and financial reporting. Based on the evaluation performed to-date, we expect to identify similar performance obligations as compared with deliverables and separate units of account previously identified. We will continue to assess the impact of adopting this ASU throughout the remainder of fiscal year 2018. Recently Adopted In March 2016, the FASB issued ASU guidance related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, statement of cash flows presentation, estimating forfeitures when calculating compensation expense, and classification of awards as either equity or liabilities. The new standard requires all excess tax benefits and tax deficiencies to be recognized as income tax benefit (expense) in the income statement. The new guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than a financing activity and requires presentation of cash paid to a tax authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation as a financing activity. The new guidance also provides for an election to account for forfeitures of stock-based compensation. The Company adopted the ASU guidance effective July 1, 2017. With respect to the forfeiture election, the Company will continue its current practice of estimating forfeitures when calculating compensation expense. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements or related disclosures. |
STREAM AND ROYALTY INTERESTS,17
STREAM AND ROYALTY INTERESTS, NET (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
STREAM AND ROYALTY INTERESTS, NET | |
Schedule of royalty and stream interests | As of September 30, 2017 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (123,427) $ 667,208 Pueblo Viejo 610,404 (79,801) 530,603 Andacollo 388,182 (43,722) 344,460 Wassa and Prestea 146,475 (28,695) 117,780 Total production stage stream interests 1,935,696 (275,645) 1,660,051 Production stage royalty interests: Voisey's Bay 205,724 (85,671) 120,053 Peñasquito 99,172 (35,882) 63,290 Holt 34,612 (20,103) 14,509 Cortez 20,878 (10,879) 9,999 Other 483,643 (343,722) 139,921 Total production stage royalty interests 844,029 (496,257) 347,772 Total production stage stream and royalty interests 2,779,725 (771,902) 2,007,823 Development stage stream interests: Rainy River 175,727 — 175,727 Other 12,031 — 12,031 Total development stage stream interests 187,758 — 187,758 Development stage royalty interests: Pascua-Lama 380,657 — 380,657 Cortez 59,803 — 59,803 Other 63,811 — 63,811 Total development stage royalty interests 504,271 — 504,271 Total development stage stream and royalty interests 692,029 — 692,029 Total exploration stage royalty interests 152,746 — 152,746 Total stream and royalty interests $ 3,624,500 $ (771,902) $ 2,852,598 As of June 30, 2017 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ $ 676,308 Pueblo Viejo 610,404 (67,149) 543,255 Andacollo 388,182 (39,404) 348,778 Wassa and Prestea 146,475 (22,715) 123,760 Total production stage stream interests 1,935,696 (243,595) 1,692,101 Production stage royalty interests: Voisey's Bay 205,724 (85,671) 120,053 Peñasquito 99,172 (34,713) 64,459 Holt 34,612 (19,669) 14,943 Cortez 20,873 (10,633) 10,240 Other 483,643 (337,958) 145,685 Total production stage royalty interests 844,024 (488,644) 355,380 Total production stage stream and royalty interests 2,779,720 (732,239) 2,047,481 Development stage stream interests: Rainy River 175,727 — 175,727 Other 12,031 — 12,031 Total development stage stream interests 187,758 — 187,758 Development stage royalty interests: Pascua-Lama 380,657 — 380,657 Cortez 59,803 — 59,803 Other 63,811 — 63,811 Total development stage royalty interests 504,271 — 504,271 Total development stage stream and royalty interests 692,029 — 692,029 Total exploration stage royalty interests 152,746 — 152,746 Total stream and royalty interests $ 3,624,495 $ (732,239) $ 2,892,256 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
DEBT | |
Schedule of non-current debt | As of September 30, 2017 As of June 30, 2017 Principal Unamortized Discount Debt Issuance Costs Total Principal Unamortized Discount Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Convertible notes due 2019 $ 370,000 $ (22,206) $ (2,318) $ 345,476 $ 370,000 $ (25,251) $ (2,646) $ 342,103 Revolving credit facility 200,000 — (5,704) 194,296 250,000 — (5,933) 244,067 Total debt $ 570,000 $ (22,206) $ (8,022) $ 539,772 $ 620,000 $ (25,251) $ (8,579) $ 586,170 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
REVENUE | |
Schedule of revenue | Three Months Ended September 30, September 30, 2017 2016 (Amounts in thousands) Stream interests $ 78,762 $ 85,504 Royalty interests 33,714 32,443 Total revenue $ 112,476 $ 117,947 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
STOCK-BASED COMPENSATION | |
Schedule of recognized stock-based compensation expense | Three Months Ended September 30, September 30, 2017 2016 (Amounts in thousands) Stock options $ 91 $ 108 Stock appreciation rights 488 468 Restricted stock 1,426 1,374 Performance stock 368 2,194 Total stock-based compensation expense $ 2,373 $ 4,144 |
Schedule of stock-based compensation awards | Three Months Ended September 30, September 30, 2017 2016 (Number of shares) Stock options 6,858 7,200 Stock appreciation rights 71,262 63,340 Restricted stock 50,380 44,890 Performance stock 34,010 29,830 Total equity awards granted 162,510 145,260 |
Schedule of unrecognized compensation expense and weighted-average vesting period for each of the stock-based compensation awards | As of September 30, 2017, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows: Unrecognized Weighted- compensation average vesting expense period (years) Stock options $ 473 2.0 Stock appreciation rights 3,627 2.3 Restricted stock 7,684 3.4 Performance stock 2,790 2.1 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE ("EPS") | |
Summary of the effects of dilutive securities on diluted EPS | Three Months Ended September 30, September 30, 2017 2016 (in thousands, except per share data) Net income available to Royal Gold common stockholders $ 28,631 $ 29,787 Weighted-average shares for basic EPS 65,235,496 65,116,686 Effect of other dilutive securities 169,184 164,218 Weighted-average shares for diluted EPS 65,404,680 65,280,904 Basic earnings per share $ 0.44 $ 0.46 Diluted earnings per share $ 0.44 $ 0.46 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
INCOME TAXES | |
Schedule of income tax expense and effective tax rate | Three Months Ended September 30, September 30, 2017 2016 (Amounts in thousands, except rate) Income tax expense $ 7,544 $ 7,188 Effective tax rate |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
SEGMENT INFORMATION | |
Schedule of geographical distribution of long-lived assets | As of September 30, 2017 As of June 30, 2017 Stream interest Royalty interest Total stream Stream interest Royalty Total stream Canada $ 842,935 $ 220,160 $ 1,063,095 $ 852,035 $ 221,618 $ 1,073,653 Dominican Republic 530,603 — 530,603 543,256 — 543,256 Chile 344,460 453,369 797,829 348,778 453,369 802,147 Africa 117,780 553 118,333 123,760 572 124,332 Mexico — 103,039 103,039 — 105,889 105,889 United States — 167,430 167,430 — 168,378 168,378 Australia — 36,563 36,563 — 37,409 37,409 Other 12,031 23,675 35,706 12,030 25,162 37,192 Total $ 1,847,809 $ 1,004,789 $ 2,852,598 $ 1,879,859 $ 1,012,397 $ 2,892,256 |
Schedule of revenue, cost of sales and net revenue by reportable segment | Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Revenue Cost of sales Net revenue Revenue Cost of sales Net revenue Streams: Canada $ 31,952 $ $ 22,729 $ 38,386 $ 12,578 $ 25,808 Dominican Republic 25,403 7,588 17,815 20,950 5,896 15,054 Chile 12,337 1,812 10,525 20,169 2,998 17,171 Africa 9,070 1,796 7,274 5,999 1,190 4,809 Total streams $ 78,762 $ 20,419 $ 58,343 $ 85,504 $ 22,662 $ 62,842 Royalties: Mexico $ 10,897 $ — $ 10,897 $ 9,596 $ — $ 9,596 United States 10,429 — 10,429 9,706 — 9,706 Canada 6,092 — 6,092 6,188 — 6,188 Australia 3,320 — 3,320 3,462 — 3,462 Africa 462 — 462 824 — 824 Chile — — — 489 — 489 Other 2,514 — 2,514 2,178 — 2,178 Total royalties $ 33,714 $ — $ 33,714 $ 32,443 $ — $ 32,443 Total streams and royalties $ 112,476 $ 20,419 $ 92,057 $ 117,947 $ 22,662 $ 95,285 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets measured at fair value on recurring basis | As of September 30, 2017 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Assets (In thousands): Marketable equity securities (1) $ 4,998 $ 4,998 $ 4,998 $ — $ — Total assets $ 4,998 $ 4,998 $ — $ — Liabilities (In thousands): Debt (2) $ 424,794 $ 409,538 $ 409,538 $ — $ — Total liabilities $ 409,538 $ 409,538 $ — $ — (1) Available-for-sale securities of $3.9 million included within Other assets and trading securities of $1.1 million included within Prepaid expenses and other on the Company’s consolidated balance sheets. (2) Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within Additional paid-in capital on the Company’s consolidated balance sheets. |
OPERATIONS, SUMMARY OF SIGNIF25
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS (Details) | 3 Months Ended |
Sep. 30, 2017item | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED AND RECENTLY ADOPTED ACCOUNTING STANDARDS | |
Minimum number of metals produced from a mine of which right to purchase all or a portion available in exchange for upfront deposit | 1 |
STREAM AND ROYALTY INTERESTS,26
STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Cost | $ 3,624,500 | $ 3,624,495 |
Accumulated Depletion | (771,902) | (732,239) |
Net | 2,852,598 | 2,892,256 |
Production stage stream interests | ||
Cost | 1,935,696 | 1,935,696 |
Accumulated Depletion | (275,645) | (243,595) |
Net | 1,660,051 | 1,692,101 |
Production stage stream interests | Mount Milligan | ||
Cost | 790,635 | 790,635 |
Accumulated Depletion | (123,427) | (114,327) |
Net | 667,208 | 676,308 |
Production stage stream interests | Pueblo Viejo | ||
Cost | 610,404 | 610,404 |
Accumulated Depletion | (79,801) | (67,149) |
Net | 530,603 | 543,255 |
Production stage stream interests | Andacollo | ||
Cost | 388,182 | 388,182 |
Accumulated Depletion | (43,722) | (39,404) |
Net | 344,460 | 348,778 |
Production stage stream interests | Wassa and Prestea | ||
Cost | 146,475 | 146,475 |
Accumulated Depletion | (28,695) | (22,715) |
Net | 117,780 | 123,760 |
Production stage royalty interests | ||
Cost | 844,029 | 844,024 |
Accumulated Depletion | (496,257) | (488,644) |
Net | 347,772 | 355,380 |
Production stage royalty interests | Voisey's Bay | ||
Cost | 205,724 | 205,724 |
Accumulated Depletion | (85,671) | (85,671) |
Net | 120,053 | 120,053 |
Production stage royalty interests | Penasquito | ||
Cost | 99,172 | 99,172 |
Accumulated Depletion | (35,882) | (34,713) |
Net | 63,290 | 64,459 |
Production stage royalty interests | Holt | ||
Cost | 34,612 | 34,612 |
Accumulated Depletion | (20,103) | (19,669) |
Net | 14,509 | 14,943 |
Production stage royalty interests | Cortez | ||
Cost | 20,878 | 20,873 |
Accumulated Depletion | (10,879) | (10,633) |
Net | 9,999 | 10,240 |
Production stage royalty interests | Other | ||
Cost | 483,643 | 483,643 |
Accumulated Depletion | (343,722) | (337,958) |
Net | 139,921 | 145,685 |
Total production stage stream and royalty interests | ||
Cost | 2,779,725 | 2,779,720 |
Accumulated Depletion | (771,902) | (732,239) |
Net | 2,007,823 | 2,047,481 |
Development stage stream interests | ||
Cost | 187,758 | 187,758 |
Net | 187,758 | 187,758 |
Development stage stream interests | Rainy River | ||
Cost | 175,727 | 175,727 |
Net | 175,727 | 175,727 |
Development stage stream interests | Other | ||
Cost | 12,031 | 12,031 |
Net | 12,031 | 12,031 |
Development stage royalty interests | ||
Cost | 504,271 | 504,271 |
Net | 504,271 | 504,271 |
Development stage royalty interests | Cortez | ||
Cost | 59,803 | 59,803 |
Net | 59,803 | 59,803 |
Development stage royalty interests | Pascua-Lama | ||
Cost | 380,657 | 380,657 |
Net | 380,657 | 380,657 |
Development stage royalty interests | Other | ||
Cost | 63,811 | 63,811 |
Net | 63,811 | 63,811 |
Total development stage stream and royalty interests | ||
Cost | 692,029 | 692,029 |
Net | 692,029 | 692,029 |
Exploration stage royalty interests | ||
Cost | 152,746 | 152,746 |
Net | $ 152,746 | $ 152,746 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2012 | |
Long-term debt disclosure | ||||
Principal | $ 570,000 | $ 620,000 | ||
Unamortized Discount | (22,206) | (25,251) | ||
Debt Issuance Costs | (8,022) | (8,579) | ||
Total debt | 539,772 | 586,170 | ||
Repayment of revolving credit facility | 50,000 | |||
Borrowings from revolving credit facility | $ 70,000 | |||
2019 Notes | ||||
Long-term debt disclosure | ||||
Principal | 370,000 | 370,000 | ||
Unamortized Discount | (22,206) | (25,251) | ||
Debt Issuance Costs | (2,318) | (2,646) | ||
Total debt | 345,476 | 342,103 | ||
Principal amount of debt issued | $ 370,000 | |||
Interest rate on convertible senior notes (as a percent) | 2.875% | |||
Interest expense recognized | 6,000 | 5,800 | ||
Credit Facility | ||||
Long-term debt disclosure | ||||
Principal | 200,000 | 250,000 | ||
Debt Issuance Costs | (5,704) | (5,933) | ||
Total debt | 194,296 | $ 244,067 | ||
Interest expense recognized | 1,800 | $ 1,900 | ||
Maximum availability under the revolving credit facility | 1,000,000 | |||
Outstanding amount under credit facility | 200,000 | |||
Available under the revolving credit facility | $ 800,000 | |||
Effective interest rate (as percent) | 3.07% | |||
Repayment of revolving credit facility | $ 50,000 | |||
LIBOR | Credit Facility | ||||
Long-term debt disclosure | ||||
Basis spread on interest rate (as a percent) | 1.75% |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUE | ||
Stream interests | $ 78,762 | $ 85,504 |
Royalty interests | 33,714 | 32,443 |
Total revenue | $ 112,476 | $ 117,947 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based compensation | ||
Stock-based compensation expense | $ 2,373 | $ 4,144 |
Stock-based compensation awards granted (in shares) | 162,510 | 145,260 |
Stock options | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 91 | $ 108 |
Stock options granted (in shares) | 6,858 | 7,200 |
Unrecognized compensation expense | $ 473 | |
Weighted-average vesting period (years) | 2 years | |
Stock appreciation rights | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 488 | $ 468 |
Other than options granted (in shares) | 71,262 | 63,340 |
Unrecognized compensation expense | $ 3,627 | |
Weighted-average vesting period (years) | 2 years 3 months 18 days | |
Restricted stock | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 1,426 | $ 1,374 |
Other than options granted (in shares) | 50,380 | 44,890 |
Unrecognized compensation expense | $ 7,684 | |
Weighted-average vesting period (years) | 3 years 4 months 24 days | |
Performance stock | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 368 | $ 2,194 |
Other than options granted (in shares) | 34,010 | 29,830 |
Unrecognized compensation expense | $ 2,790 | |
Weighted-average vesting period (years) | 2 years 1 month 6 days |
EARNINGS PER SHARE ("EPS") (Det
EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
EARNINGS PER SHARE ("EPS") | ||
Net income (loss) available to Royal Gold common stockholders | $ 28,631 | $ 29,787 |
Weighted-average shares for basic EPS | 65,235,496 | 65,116,686 |
Effect of other dilutive securities (in shares) | 169,184 | 164,218 |
Weighted-average shares for diluted EPS | 65,404,680 | 65,280,904 |
Basic earnings per share (in dollars per share) | $ 0.44 | $ 0.46 |
Diluted earnings per share (in dollars per share) | 0.44 | $ 0.46 |
Initial conversion price (in dollars per share) | $ 102.91 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
INCOME TAXES | ||
Income tax expense | $ 7,544 | $ 7,188 |
Effective tax rate (as a percent) | 22.10% | 21.10% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) | |
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Number of reportable segments | segment | 2 | ||
Value of stream and royalty interests, net | $ 2,852,598 | $ 2,892,256 | |
Revenue | 112,476 | $ 117,947 | |
Cost of sales | 20,419 | 22,662 | |
Net revenue | 92,057 | 95,285 | |
Canada | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 1,063,095 | 1,073,653 | |
Dominican Republic | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 530,603 | 543,256 | |
Chile | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 797,829 | 802,147 | |
Africa | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 118,333 | 124,332 | |
Mexico | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 103,039 | 105,889 | |
United States | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 167,430 | 168,378 | |
Australia | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 36,563 | 37,409 | |
Other | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 35,706 | 37,192 | |
Stream interest | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 1,847,809 | 1,879,859 | |
Revenue | 78,762 | 85,504 | |
Cost of sales | 20,419 | 22,662 | |
Net revenue | 58,343 | 62,842 | |
Stream interest | Canada | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 842,935 | 852,035 | |
Revenue | 31,952 | 38,386 | |
Cost of sales | 9,223 | 12,578 | |
Net revenue | 22,729 | 25,808 | |
Stream interest | Dominican Republic | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 530,603 | 543,256 | |
Revenue | 25,403 | 20,950 | |
Cost of sales | 7,588 | 5,896 | |
Net revenue | 17,815 | 15,054 | |
Stream interest | Chile | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 344,460 | 348,778 | |
Revenue | 12,337 | 20,169 | |
Cost of sales | 1,812 | 2,998 | |
Net revenue | 10,525 | 17,171 | |
Stream interest | Africa | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 117,780 | 123,760 | |
Revenue | 9,070 | 5,999 | |
Cost of sales | 1,796 | 1,190 | |
Net revenue | 7,274 | 4,809 | |
Stream interest | Other | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 12,031 | 12,030 | |
Royalty interest | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 1,004,789 | 1,012,397 | |
Revenue | 33,714 | 32,443 | |
Net revenue | 33,714 | 32,443 | |
Royalty interest | Canada | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 220,160 | 221,618 | |
Revenue | 6,092 | 6,188 | |
Net revenue | 6,092 | 6,188 | |
Royalty interest | Chile | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 453,369 | 453,369 | |
Revenue | 489 | ||
Net revenue | 489 | ||
Royalty interest | Africa | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 553 | 572 | |
Revenue | 462 | 824 | |
Net revenue | 462 | 824 | |
Royalty interest | Mexico | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 103,039 | 105,889 | |
Revenue | 10,897 | 9,596 | |
Net revenue | 10,897 | 9,596 | |
Royalty interest | United States | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 167,430 | 168,378 | |
Revenue | 10,429 | 9,706 | |
Net revenue | 10,429 | 9,706 | |
Royalty interest | Australia | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 36,563 | 37,409 | |
Revenue | 3,320 | 3,462 | |
Net revenue | 3,320 | 3,462 | |
Royalty interest | Other | |||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||
Value of stream and royalty interests, net | 23,675 | $ 25,162 | |
Revenue | 2,514 | 2,178 | |
Net revenue | $ 2,514 | $ 2,178 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Recurring basis $ in Thousands | Sep. 30, 2017USD ($) |
Other assets | |
Assets: | |
Marketable equity securities | $ 3,900 |
Prepaid expenses and other | |
Assets: | |
Marketable equity securities | 1,100 |
Carrying Amount | |
Assets: | |
Marketable equity securities | 4,998 |
Liabilities: | |
Debt | 424,794 |
Amount of equity component of convertible notes | 77,000 |
Fair Value | |
Assets: | |
Marketable equity securities | 4,998 |
Total assets | 4,998 |
Liabilities: | |
Debt | 409,538 |
Total liabilities | 409,538 |
Level 1 | |
Assets: | |
Marketable equity securities | 4,998 |
Total assets | 4,998 |
Liabilities: | |
Debt | 409,538 |
Total liabilities | $ 409,538 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Ilovica | |
Commitments and Contingencies | |
Scheduled payment amount | $ 163,750 |
Voisey's Bay | LNRLP | |
Commitments and Contingencies | |
Ownership percentage held | 90.00% |
Voisey's Bay | Altius | LNRLP | |
Commitments and Contingencies | |
Ownership percentage held | 10.00% |