Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2020 | Jan. 28, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-13357 | |
Entity Registrant Name | Royal Gold, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-0835164 | |
Entity Address, Address Line One | 1144 15th Street, Suite 2500 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 573-1660 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RGLD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Shares Outstanding | 65,606,496 | |
Entity Central Index Key | 0000085535 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
ASSETS | ||
Cash and equivalents | $ 381,859 | $ 319,128 |
Royalty receivables | 44,316 | 27,689 |
Income tax receivable | 8,939 | 2,435 |
Stream inventory | 13,900 | 11,671 |
Prepaid expenses and other | 1,477 | 1,227 |
Total current assets | 450,491 | 362,150 |
Stream and royalty interests, net (Note 3) | 2,231,980 | 2,318,913 |
Other assets | 81,263 | 85,224 |
Total assets | 2,763,734 | 2,766,287 |
LIABILITIES | ||
Accounts payable | 2,587 | 2,484 |
Dividends payable | 19,680 | 18,364 |
Income tax payable | 23,318 | 13,323 |
Other current liabilities | 11,569 | 9,384 |
Total current liabilities | 57,154 | 43,555 |
Debt (Note 5) | 195,983 | 300,439 |
Deferred tax liabilities | 85,017 | 86,439 |
Uncertain tax positions | 13,267 | 25,427 |
Other liabilities | 7,634 | 8,308 |
Total liabilities | 359,055 | 464,168 |
EQUITY | ||
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,548,415 and 65,531,288 shares outstanding, respectively | 656 | 655 |
Additional paid-in capital | 2,201,076 | 2,210,429 |
Accumulated earnings | 189,910 | 61,133 |
Total Royal Gold stockholders' equity | 2,391,642 | 2,272,217 |
Non-controlling interests | 13,037 | 29,902 |
Total equity | 2,404,679 | 2,302,119 |
Total liabilities and equity | $ 2,763,734 | $ 2,766,287 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Jun. 30, 2020 |
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 | 65,548,415 | 65,531,288 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations and Comprehensive Income | ||||
Revenue (Note 7) | $ 158,360 | $ 123,643 | $ 305,240 | $ 242,417 |
Costs and expenses | ||||
Cost of sales (excludes depreciation, depletion and amortization) | 24,859 | 21,077 | 46,760 | 41,188 |
General and administrative | 6,789 | 6,665 | 14,244 | 14,108 |
Production taxes | 1,401 | 984 | 2,756 | 2,083 |
Exploration costs | 1,514 | 563 | 4,140 | |
Depreciation, depletion and amortization | 47,945 | 40,096 | 94,245 | 78,810 |
Total costs and expenses | 80,994 | 70,336 | 158,568 | 140,329 |
Gain on sale of Peak Gold JV interest | 33,906 | |||
Operating income | 77,366 | 53,307 | 180,578 | 102,088 |
Fair value changes in equity securities | (382) | 222 | 2,158 | (1,153) |
Interest and other income | 613 | 226 | 1,034 | 1,001 |
Interest and other expense | (1,578) | (2,217) | (3,454) | (5,051) |
Income before income taxes | 76,019 | 51,538 | 180,316 | 96,885 |
Income tax (expense) benefit | (16,031) | (11,124) | (13,654) | 12,401 |
Net income and comprehensive income | 59,988 | 40,414 | 166,662 | 109,286 |
Net (income) loss and comprehensive (income) loss attributable to non-controlling interests | (99) | 907 | 166 | 2,488 |
Net income and comprehensive income attributable to Royal Gold common stockholders | $ 59,889 | $ 41,321 | $ 166,828 | $ 111,774 |
Net income per share attributable to Royal Gold common stockholders: | ||||
Basic EPS (in dollars per share) | $ 0.91 | $ 0.63 | $ 2.55 | $ 1.70 |
Basic weighted average shares outstanding (in shares) | 65,546,938 | 65,495,907 | 65,542,326 | 65,480,759 |
Diluted EPS (in dollars per share) | $ 0.91 | $ 0.63 | $ 2.54 | $ 1.70 |
Diluted weighted average shares outstanding (in shares) | 65,619,241 | 65,611,567 | 65,625,965 | 65,613,406 |
Cash dividends declared per common share (in dollars per share) | $ 0.300 | $ 0.280 | $ 0.580 | $ 0.545 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Thousands | Common Shares | Additional Paid-In Capital | Accumulated (Losses) Earnings | Noncontrolling Interests | Total |
Balance at Jun. 30, 2019 | $ 655 | $ 2,201,773 | $ (65,747) | $ 33,772 | $ 2,170,453 |
Balance (in shares) at Jun. 30, 2019 | 65,440,492 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 891 | 891 | |||
Stock-based compensation and related share issuances (in shares) | 55,512 | ||||
Distributions from (to) non-controlling interests | 2,700 | (379) | 2,321 | ||
Net income (loss) and comprehensive income (loss) | 111,774 | (2,488) | 109,286 | ||
Dividends declared | (35,737) | (35,737) | |||
Balance at Dec. 31, 2019 | $ 655 | 2,205,364 | 10,290 | 30,905 | 2,247,214 |
Balance (in shares) at Dec. 31, 2019 | 65,496,004 | ||||
Balance at Sep. 30, 2019 | $ 655 | 2,202,350 | (12,676) | 31,999 | 2,222,328 |
Balance (in shares) at Sep. 30, 2019 | 65,495,787 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 1,214 | 1,214 | |||
Stock-based compensation and related share issuances (in shares) | 217 | ||||
Distributions from (to) non-controlling interests | 1,800 | (187) | 1,613 | ||
Net income (loss) and comprehensive income (loss) | 41,321 | (907) | 40,414 | ||
Dividends declared | (18,355) | (18,355) | |||
Balance at Dec. 31, 2019 | $ 655 | 2,205,364 | 10,290 | 30,905 | 2,247,214 |
Balance (in shares) at Dec. 31, 2019 | 65,496,004 | ||||
Balance at Jun. 30, 2020 | $ 655 | 2,210,429 | 61,133 | 29,902 | 2,302,119 |
Balance (in shares) at Jun. 30, 2020 | 65,531,288 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | $ 1 | 1,476 | 1,477 | ||
Stock-based compensation and related share issuances (in shares) | 17,127 | ||||
Sale of Peak Gold JV interest | (10,829) | (16,218) | (27,047) | ||
Distributions to non-controlling interests | (481) | (481) | |||
Net income (loss) and comprehensive income (loss) | 166,828 | (166) | 166,662 | ||
Dividends declared | (38,051) | (38,051) | |||
Balance at Dec. 31, 2020 | $ 656 | 2,201,076 | 189,910 | 13,037 | 2,404,679 |
Balance (in shares) at Dec. 31, 2020 | 65,548,415 | ||||
Balance at Sep. 30, 2020 | $ 656 | 2,199,705 | 149,702 | 13,158 | 2,363,221 |
Balance (in shares) at Sep. 30, 2020 | 65,545,606 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 1,371 | 1,371 | |||
Stock-based compensation and related share issuances (in shares) | 2,809 | ||||
Distributions to non-controlling interests | (220) | (220) | |||
Net income (loss) and comprehensive income (loss) | 59,889 | 99 | 59,988 | ||
Dividends declared | (19,681) | (19,681) | |||
Balance at Dec. 31, 2020 | $ 656 | $ 2,201,076 | $ 189,910 | $ 13,037 | $ 2,404,679 |
Balance (in shares) at Dec. 31, 2020 | 65,548,415 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income and comprehensive income | $ 166,662 | $ 109,286 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 94,245 | 78,810 |
Gain on sale of Peak Gold JV interest | (33,906) | |
Non-cash employee stock compensation expense | 2,892 | 3,639 |
Fair value changes in equity securities | (2,158) | 1,153 |
Deferred tax benefit | (8,405) | (36,126) |
Other | 398 | 566 |
Changes in assets and liabilities: | ||
Royalty receivables | (16,627) | (7,714) |
Stream inventory | (2,229) | (3,956) |
Income tax receivable | (6,504) | (6,968) |
Prepaid expenses and other assets | 900 | (7,020) |
Accounts payable | (549) | (929) |
Income tax payable | 9,995 | 7,392 |
Uncertain tax positions | (12,160) | 3,230 |
Other liabilities | 1,510 | 8,133 |
Net cash provided by operating activities | 194,064 | 149,496 |
Cash flows from investing activities: | ||
Acquisition of stream and royalty interests | (48,832) | (72,417) |
Proceeds from sale of Peak Gold JV interest | 49,154 | |
Proceeds from sale of Contango shares | 12,146 | |
Other | (364) | 4,363 |
Net cash provided by (used in) investing activities | 12,104 | (68,054) |
Cash flows from financing activities: | ||
Repayment of debt | (105,000) | (85,000) |
Net payments from issuance of common stock | (1,415) | (2,747) |
Common stock dividends | (36,735) | (34,755) |
Other | (287) | 2,089 |
Net cash used in financing activities | (143,437) | (120,413) |
Net increase (decrease) in cash and equivalents | 62,731 | (38,971) |
Cash and equivalents at beginning of period | 319,128 | 119,475 |
Cash and equivalents at end of period | $ 381,859 | $ 80,504 |
OPERATIONS, SUMMARY OF SIGNIFIC
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS | 6 Months Ended |
Dec. 31, 2020 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS | 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS Royal Gold 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 a mining project that provide the right to revenue or metals produced from the project after deducting contractually 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 and six months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. These interim unaudited financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the Securities and Exchange Commission on August 6, 2020 (“Fiscal 2020 10-K”). Recently Adopted Accounting Standards Current Expected Credit Loss In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments |
SALE OF PEAK GOLD JV INTEREST
SALE OF PEAK GOLD JV INTEREST | 6 Months Ended |
Dec. 31, 2020 | |
SALE OF PEAK GOLD JV INTEREST | |
SALE OF PEAK GOLD JV INTEREST | 2. SALE OF PEAK GOLD JV INTEREST On September 30, 2020, we entered into an agreement with an affiliate of Kinross Gold Corporation to sell our 40% membership interest in the Peak Gold Project for cash consideration of $49.2 million and to sell our 809,744 common shares in Contango Ore, Inc. (“Contango”), our partner in Peak Gold, LLC, for cash consideration of $12.1 million. In addition to the total cash consideration of $61.3 million, we received the following royalty interests: ● An incremental 28% net smelter return royalty on silver produced from an area of interest which includes the current Peak Gold Project resource area. Peak Gold, LLC retains the right to acquire 50% of this royalty for consideration of $4.0 million; and ● An incremental 1% net smelter return royalty on certain State of Alaska mining claims acquired by a wholly owned subsidiary of Contango in the transaction, increasing our royalty on this area from 2% to 3%. The royalties were recorded as exploration stage royalty interests in Stream and royalty interests, net Fair value changes in equity securities |
STREAM AND ROYALTY INTERESTS, N
STREAM AND ROYALTY INTERESTS, NET | 6 Months Ended |
Dec. 31, 2020 | |
STREAM AND ROYALTY INTERESTS, NET | |
STREAM AND ROYALTY INTERESTS, NET | 3. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of December 31, 2020 and June 30, 2020. As of December 31, 2020 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (270,370) $ 520,265 Pueblo Viejo 610,405 (226,083) 384,322 Andacollo 388,182 (120,847) 267,335 Rainy River 175,727 (34,820) 140,907 Wassa 146,475 (72,839) 73,636 Total production stage stream interests 2,111,424 (724,959) 1,386,465 Production stage royalty interests: Voisey's Bay 205,724 (104,850) 100,874 Peñasquito 99,172 (47,263) 51,909 Cortez 80,681 (16,418) 64,263 Other 521,289 (433,800) 87,489 Total production stage royalty interests 906,866 (602,331) 304,535 Total production stage stream and royalty interests 3,018,290 (1,327,290) 1,691,000 Development stage stream interests: Khoemac a 180,220 — 180,220 Other 12,037 — 12,037 Development stage royalty interests: Other 69,780 — 69,780 Total development stage stream and royalty interests 262,037 — 262,037 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Other 101,253 — 101,253 Total exploration stage royalty interests 278,943 — 278,943 Total stream and royalty interests, net $ 3,559,270 $ (1,327,290) $ 2,231,980 As of June 30, 2020 (Amounts in thousands): Cost Accumulated Depletion Impairments Net Production stage stream interests: Mount Milligan $ 790,635 $ (236,352) $ — $ 554,283 Pueblo Viejo 610,404 (203,935) — 406,469 Andacollo 388,182 (110,521) — 277,661 Rainy River 175,727 (27,278) — 148,449 Wassa 146,475 (67,619) — 78,856 Total production stage stream interests 2,111,423 (645,705) — 1,465,718 Production stage royalty interests: Voisey's Bay 205,724 (101,381) — 104,343 Peñasquito 99,172 (44,614) — 54,558 Cortez 80,681 (15,065) — 65,616 Other 521,837 (426,931) (1,341) 93,565 Total production stage royalty interests 907,414 (587,991) (1,341) 318,082 Total production stage stream and royalty interests 3,018,837 (1,233,696) (1,341) 1,783,800 Development stage stream interests: Khoemac a 136,608 — — 136,608 Other 12,037 — — 12,037 Development stage royalty interests: Other 70,952 — — 70,952 Total development stage royalty interests 70,952 — — 70,952 Total development stage stream and royalty interests 219,597 — — 219,597 Exploration stage royalty interests: Pascua-Lama 177,690 — — 177,690 Other 137,826 — — 137,826 Total exploration stage royalty interests 315,516 — — 315,516 Total stream and royalty interests, net $ 3,553,950 $ (1,233,696) $ (1,341) $ 2,318,913 Separation of the Wassa and Prestea/Bogoso Stream Agreement On October 1, 2020, we announced the separation of the Wassa and Prestea/Bogoso gold stream agreement into separate stream agreements effective September 30, 2020. This separation was completed to facilitate the sale by Golden Star Resources Ltd. (“Golden Star”) of the Prestea/Bogoso mines to Future Global Resources (“FGR”). The Wassa stream agreement, which remains with Golden Star, continues to provide us the right to purchase 10.5% of the gold produced from the Wassa mine until the delivery of 240,000 ounces, after which the stream percentage will decrease to 5.5%. The cash purchase price for gold remains at 20% of the spot price per ounce delivered until the delivery of 240,000 ounces, and 30% of the spot price per ounce delivered thereafter. As of December 31, 2020, approximately 110,200 ounces remain to be delivered from the Wassa mine until the 240,000 ounce delivery threshold is reached. The Prestea/Bogoso stream agreement with FGR provides us the right to purchase 5.5% of the gold produced from the Prestea/Bogoso mines in return for a cash purchase price of 30% of the spot price per ounce delivered. The material terms of both the Wassa stream agreement and the Prestea/Bogoso stream agreement, including security and the rights and obligations of both Royal Gold and Golden Star, remain substantially consistent with those terms in the original agreement. The Wassa stream is recorded as a production stage stream interest within Stream and royalty interests, net COVID-19 and current economic environment Throughout 2020 and into 2021, several of our operating counterparties have instituted temporary operational curtailments due to the ongoing COVID-19 pandemic. In addition, the pandemic and resulting economic and societal impacts have made it difficult for operators to forecast expected production amounts and, at times, operators have had to withdraw or revise previously disclosed guidance. For the most part, our results of operations and financial condition have not been materially impacted by these measures to date. However, the effects of the pandemic are fluid and changing rapidly, including with respect to vaccine and treatment developments and deployment and potential mutations of COVID-19. As a result, we are currently unable to predict the nature or extent of any future impact on our results of operations and financial condition. We continue to monitor the impact of developments associated with the pandemic on stream and royalty interests as part of our regular asset impairment analysis. |
MARKETABLE EQUITY SECURITIES
MARKETABLE EQUITY SECURITIES | 6 Months Ended |
Dec. 31, 2020 | |
MARKETABLE EQUITY SECURITIES | |
MARKETABLE EQUITY SECURITIES | 4. MARKETABLE EQUITY SECURITIES As of December 31, 2020, our marketable equity securities include 3,949,575 common shares of Battle North Gold Corporation, and warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc. Our marketable equity securities are measured at fair value (Note 12) each reporting period with any changes in fair value recognized in net income. As discussed in Note 2, on September 30, 2020, we sold 809,744 common shares of Contango for total consideration of $12.1 million and recorded a mark-to-market increase of $3.6 million on the sale, which is included in Fair value changes in equity securities The fair value of our marketable equity securities decreased $0.4 million and increased $2.2 million for the three and six months ended December 31, 2020, respectively, and are included in Fair value changes in equity securities Other assets |
DEBT
DEBT | 6 Months Ended |
Dec. 31, 2020 | |
DEBT | |
DEBT | 5. DEBT Our debt as of December 31, 2020 and June 30, 2020 consists of the following: As of December 31, 2020 As of June 30, 2020 Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Revolving credit facility $ 200,000 $ (4,017) $ 195,983 $ 305,000 $ (4,561) $ 300,439 Total debt $ 200,000 $ (4,017) $ 195,983 $ 305,000 $ (4,561) $ 300,439 Revolving credit facility As of December 31, 2020, we had $200 million outstanding and $800 million available under our revolving credit facility. The interest rate on borrowings under our revolving credit facility as of December 31, 2020 was LIBOR plus 1.10% for an all-in rate of 1.33%. Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $1.0 million and $2.2 million for the three and six months ended December 31, 2020, respectively, and $1.6 million and $3.8 million for the three and six months ended December 31, 2019, respectively. As discussed in Note 6 to the consolidated financial statements in our Fiscal 2020 10-K, we have financial covenants associated with our revolving credit facility. As of December 31, 2020, we were in compliance with each financial covenant. On January 4, 2021, we repaid $50 million of the outstanding borrowings under our revolving credit facility. This increased the amount available under our revolving credit facility to $850 million and decreased the amount outstanding to $150 million. Royal Gold may repay any borrowings under our revolving credit facility at any time without premium or penalty. Our revolving credit facility matures on June 3, 2024. |
LEASES
LEASES | 6 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 6. LEASES Our significant lease arrangements relate to our office spaces. These arrangements are for leases of assets such as corporate office space and office equipment. We lease office space and office equipment under operating leases expiring at various dates through the fiscal year ending June 30, 2030. The following amounts were recorded in the consolidated balance sheets at December 31, 2020 (amounts in thousands): Classification December 31, 2020 Operating Leases Right-of-use assets - current Prepaid expenses and other $ 806 Right-of-use assets - non-current Other assets 6,404 Total right-of-use assets $ 7,210 Lease liabilities - current Other current liabilities $ 951 Lease liabilities - non-current Other long-term liabilities 7,634 Total operating lease liabilities $ 8,585 Maturities of operating lease liabilities at December 31, 2020 were as follows (amounts in thousands): Fiscal Years: Operating Leases 2021 $ 574 2022 1,145 2023 1,121 2024 1,121 2025 1,082 Thereafter 4,524 Total lease payments $ 9,567 Less imputed interest (982) Total $ 8,585 Other information pertaining to leases consist of the following: December 31, 2020 Operating Lease Term and Discount Rate Weighted average remaining lease term in years 9 Weighted average discount rate 2.5% We did not have any finance leases as of December 31, 2020. |
REVENUE
REVENUE | 6 Months Ended |
Dec. 31, 2020 | |
REVENUE | |
REVENUE | 7. REVENUE Revenue Recognition Under U.S. GAAP guidance, a performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below. Stream 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 of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily using average spot rate gold, silver and copper forward contracts. The sales price for these average spot rate forward contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive number of trading days between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time) commencing shortly after receipt and purchase of the metal. We settle our forward sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our forward sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the metal transfer to the purchaser. Royalty Interests Royalties are non-operating interests in mining projects that provide the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (for example, a monthly or quarterly average spot price) for the period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to their ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer. We have further determined that the transfer of each unit of metal production comprising our royalty interest to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time of metal production by the operator. Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable offsite treatment, refining, transportation and, if applicable, mining costs. Royalty Revenue Estimates For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements for that period. As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator. If adequate information is not available from the operator or from other public sources before we issue our financial statements, we will recognize royalty revenue during the period in which the necessary payment information is received. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known. Please also refer to our “Use of Estimates” accounting policy discussed in our Fiscal 2020 10-K. For the three and six months ended December 31, 2020, royalty revenue that was estimated or was attributable to metal production for a period prior to December 31, 2020, was not material. Disaggregation of Revenue We have identified two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 11. Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Stream revenue: Gold $ 83,685 $ 69,111 $ 167,282 $ 141,335 Silver 11,128 8,929 22,026 17,365 Copper 12,906 11,585 24,914 17,906 Total stream revenue $ 107,719 $ 89,625 $ 214,222 $ 176,606 Royalty revenue: Gold $ 36,471 $ 22,068 $ 63,375 $ 43,825 Silver 4,193 3,365 7,634 5,194 Copper 4,395 4,107 8,456 7,087 Other 5,582 4,478 11,553 9,705 Total royalty revenue $ 50,641 $ 34,018 $ 91,018 $ 65,811 Total revenue $ 158,360 $ 123,643 $ 305,240 $ 242,417 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, Metal(s) 2020 2019 2020 2019 Stream revenue: Mount Milligan Gold & Copper $ 44,713 $ 30,629 $ 79,332 $ 61,126 Pueblo Viejo Gold & Silver 27,554 23,614 58,824 45,232 Andacollo Gold 17,766 20,665 41,275 41,269 Wassa Gold 6,761 4,794 15,870 10,113 Other Gold & Silver 10,925 9,923 18,921 18,866 Total stream revenue $ 107,719 $ 89,625 $ 214,222 $ 176,606 Royalty revenue: Peñasquito Gold, Silver, Lead & Zinc $ 12,952 $ 7,577 $ 23,161 $ 11,997 Cortez Gold 8,128 3,292 13,812 7,709 Other Various 29,561 23,149 54,045 46,105 Total royalty revenue $ 50,641 $ 34,018 $ 91,018 $ 65,811 Total revenue $ 158,360 $ 123,643 $ 305,240 $ 242,417 Please refer to Note 11 for the geographical distribution of our revenue by reportable segment. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 8. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows: Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (Amounts in thousands) (Amounts in thousands) Stock options $ 17 $ 26 $ 33 $ 57 Stock appreciation rights 430 430 801 872 Restricted stock 588 697 1,585 1,940 Performance stock 363 385 473 770 Total stock-based compensation expense $ 1,398 $ 1,538 $ 2,892 $ 3,639 Stock-based compensation expense is included within General and administrative During the six months ended December 31, 2020 and 2019, we granted the following stock-based compensation awards (note that no awards were granted during the three months ended December 31, 2020 and 2019): Six Months Ended December 31, December 31, 2020 2019 (Number of shares) Stock options 2,860 1,604 Stock appreciation rights 64,100 46,726 Restricted stock 26,104 23,976 Performance stock (at maximum 200% attainment) 35,380 28,560 Total equity awards granted 128,444 100,866 As of December 31, 2020, 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 $ 123 2.3 Stock appreciation rights 3,172 2.2 Restricted stock 4,993 3.5 Performance stock 2,367 1.9 |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 6 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE ("EPS") | |
EARNINGS PER SHARE ("EPS") | 9. EARNINGS PER SHARE (“EPS”) Basic EPS 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 EPS pursuant to the two-class method. Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. Our unexercised stock option awards, unexercised stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic EPS 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 EPS. The following tables summarize the effects of dilutive securities on diluted EPS for the period (amounts in thousands, except share data): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Net income attributable to Royal Gold common stockholders $ 59,889 $ 41,321 $ 166,828 $ 111,774 Weighted-average shares for basic EPS 65,546,938 65,495,907 65,542,326 65,480,759 Effect of other dilutive securities 72,303 115,660 83,639 132,647 Weighted-average shares for diluted EPS 65,619,241 65,611,567 65,625,965 65,613,406 Basic EPS $ 0.91 $ 0.63 $ 2.55 $ 1.70 Diluted EPS $ 0.91 $ 0.63 $ 2.54 $ 1.70 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (Amounts in thousands, except rate) (Amounts in thousands, except rate) Income tax expense (benefit) $ 16,031 $ 11,124 $ 13,654 $ (12,401) Effective tax rate 21.1% 21.6% 7.6% (12.8%) The effective tax rate for the six months ended December 31, 2020, included discrete tax benefits ($24.5 million) attributable to the settlement of an uncertain tax position with a foreign jurisdiction and the release of a valuation allowance related to deferred tax assets, both of which were recorded during the three months ended September 30, 2020. The effective tax rate for the six months ended December 31, 2019, included discrete benefits ($32.3 million) attributable to the remeasurement of certain deferred tax assets and a net step-up in the basis of tax assets due to the enactment of the Federal Act on Tax Reform and AHV Financing (Swiss Tax Reform). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 11. SEGMENT INFORMATION We manage our 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 (amounts in thousands): As of December 31, 2020 As of June 30, 2020 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 661,172 $ 184,601 $ 845,773 $ 702,732 $ 189,855 $ 892,587 Dominican Republic 384,322 — 384,322 406,469 — 406,469 Chile 267,334 224,116 491,450 277,661 223,922 501,583 Africa 253,856 321 254,177 215,463 321 215,784 Mexico — 71,843 71,843 — 75,951 75,951 United States — 115,427 115,427 — 159,445 159,445 Australia — 29,161 29,161 — 30,006 30,006 Rest of world 12,038 27,789 39,827 12,038 25,050 37,088 Total $ 1,578,722 $ 653,258 $ 2,231,980 $ 1,614,363 $ 704,550 $ 2,318,913 Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended December 31, 2020 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 107,719 $ 24,859 $ — $ 40,226 $ 42,634 Royalty interests 50,641 — 1,401 7,635 41,605 Total $ 158,360 $ 24,859 $ 1,401 $ 47,861 $ 84,239 Three Months Ended December 31, 2019 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 89,625 $ 21,077 $ — $ 32,181 $ 36,367 Royalty interests 34,018 — 984 7,801 25,233 Total $ 123,643 $ 21,077 $ 984 $ 39,982 $ 61,600 Six Months Ended December 31, 2020 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 214,222 $ 46,760 $ — $ 79,253 $ 88,209 Royalty interests 91,018 — 2,756 14,822 73,440 Total $ 305,240 $ 46,760 $ 2,756 $ 94,075 $ 161,649 Six Months Ended December 31, 2019 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 176,606 $ 41,188 $ — $ 63,643 $ 71,775 Royalty interests 65,811 — 2,083 15,000 48,728 Total $ 242,417 $ 41,188 $ 2,083 $ 78,643 $ 120,503 (1) Excludes depreciation, depletion and amortization (2) Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income. A reconciliation of total segment gross profit to the consolidated Income before income taxes Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Total segment gross profit $ 84,239 $ 61,600 $ 161,649 $ 120,503 Costs and expenses General and administrative expenses 6,789 6,665 14,244 14,108 Exploration costs — 1,514 563 4,140 Depreciation and amortization 84 114 170 167 Gain on sale of Peak Gold JV interest — — (33,906) — Operating income 77,366 53,307 180,578 102,088 Fair value changes in equity securities (382) 222 2,158 (1,153) Interest and other income 613 226 1,034 1,001 Interest and other expense (1,578) (2,217) (3,454) (5,051) Income before income taxes $ 76,019 $ 51,538 $ 180,316 $ 96,885 Our revenue by reportable segment for the three and six months ended December 31, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Stream interests: Canada $ 54,302 $ 38,191 $ 95,888 $ 75,854 Dominican Republic 27,554 23,614 58,824 45,232 Chile 17,766 20,665 41,275 41,269 Africa 8,097 7,155 18,235 14,251 Total stream interests $ 107,719 $ 89,625 $ 214,222 $ 176,606 Royalty interests: United States $ 17,090 $ 10,012 $ 30,788 $ 20,614 Mexico 15,174 9,376 26,751 15,763 Australia 8,314 3,546 12,856 7,348 Canada 6,047 8,037 13,458 16,958 Africa 744 911 1,494 1,606 Rest of world 3,272 2,136 5,671 3,522 Total royalty interests $ 50,641 $ 34,018 $ 91,018 $ 65,811 Total revenue $ 158,360 $ 123,643 $ 305,240 $ 242,417 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: 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 our financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As of December 31, 2020 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 7,874 $ 7,874 $ 6,447 $ 1,427 $ — (1) Other assets Our marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets multiplied by the quantity of shares held. The carrying value of our revolving credit facility (Note 5) approximates fair value as of December 31, 2020. The TriStar Gold Inc. warrants classified within Level 2 of the fair value hierarchy are model-derived (Black-Scholes) valuations in which the significant inputs are observable in active markets. As of December 31, 2020, we 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 | 6 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Khoemac a u Silver Stream Acquisition Pursuant to our Khoemac a ● $65.8 million – November 5, 2019 ● $22.0 million – February 2, 2020 ● $47.9 million – April 3, 2020 ● $11.1 million – July 5, 2020 ● $32.5 million – October 5, 2020 ● $32.6 million – January 6, 2021 Including the sixth advance payment made on January 6, 2021, we have made total contributions of $212 million which completes the advance payments for the Base Silver Stream. We are further committed to up to $53.0 million in additional contributions should Khoemacau Copper Mining (Pty.) Limited elect to fully exercise the Option Silver Stream. Any further payments under the Option Silver Stream are subject to certain conditions and are scheduled to be made using an agreed formula and certification process as project spending progresses. Refer to our Fiscal 2020 10-K for further details on the Khoemac a Ilovica Gold Stream Acquisition As of December 31, 2020, our conditional funding schedule of $163.75 million, as part of the Ilovica gold stream acquisition in October 2014, remains subject to certain conditions. |
OPERATIONS, SUMMARY OF SIGNIF_2
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS | |
Basis of Consolidation | 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 and six months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. These interim unaudited financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the Securities and Exchange Commission on August 6, 2020 (“Fiscal 2020 10-K”). |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Current Expected Credit Loss In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments |
STREAM AND ROYALTY INTERESTS,_2
STREAM AND ROYALTY INTERESTS, NET (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
STREAM AND ROYALTY INTERESTS, NET | |
Schedule of stream and royalty interests | As of December 31, 2020 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (270,370) $ 520,265 Pueblo Viejo 610,405 (226,083) 384,322 Andacollo 388,182 (120,847) 267,335 Rainy River 175,727 (34,820) 140,907 Wassa 146,475 (72,839) 73,636 Total production stage stream interests 2,111,424 (724,959) 1,386,465 Production stage royalty interests: Voisey's Bay 205,724 (104,850) 100,874 Peñasquito 99,172 (47,263) 51,909 Cortez 80,681 (16,418) 64,263 Other 521,289 (433,800) 87,489 Total production stage royalty interests 906,866 (602,331) 304,535 Total production stage stream and royalty interests 3,018,290 (1,327,290) 1,691,000 Development stage stream interests: Khoemac a 180,220 — 180,220 Other 12,037 — 12,037 Development stage royalty interests: Other 69,780 — 69,780 Total development stage stream and royalty interests 262,037 — 262,037 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Other 101,253 — 101,253 Total exploration stage royalty interests 278,943 — 278,943 Total stream and royalty interests, net $ 3,559,270 $ (1,327,290) $ 2,231,980 As of June 30, 2020 (Amounts in thousands): Cost Accumulated Depletion Impairments Net Production stage stream interests: Mount Milligan $ 790,635 $ (236,352) $ — $ 554,283 Pueblo Viejo 610,404 (203,935) — 406,469 Andacollo 388,182 (110,521) — 277,661 Rainy River 175,727 (27,278) — 148,449 Wassa 146,475 (67,619) — 78,856 Total production stage stream interests 2,111,423 (645,705) — 1,465,718 Production stage royalty interests: Voisey's Bay 205,724 (101,381) — 104,343 Peñasquito 99,172 (44,614) — 54,558 Cortez 80,681 (15,065) — 65,616 Other 521,837 (426,931) (1,341) 93,565 Total production stage royalty interests 907,414 (587,991) (1,341) 318,082 Total production stage stream and royalty interests 3,018,837 (1,233,696) (1,341) 1,783,800 Development stage stream interests: Khoemac a 136,608 — — 136,608 Other 12,037 — — 12,037 Development stage royalty interests: Other 70,952 — — 70,952 Total development stage royalty interests 70,952 — — 70,952 Total development stage stream and royalty interests 219,597 — — 219,597 Exploration stage royalty interests: Pascua-Lama 177,690 — — 177,690 Other 137,826 — — 137,826 Total exploration stage royalty interests 315,516 — — 315,516 Total stream and royalty interests, net $ 3,553,950 $ (1,233,696) $ (1,341) $ 2,318,913 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
DEBT | |
Schedule of debt | As of December 31, 2020 As of June 30, 2020 Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Revolving credit facility $ 200,000 $ (4,017) $ 195,983 $ 305,000 $ (4,561) $ 300,439 Total debt $ 200,000 $ (4,017) $ 195,983 $ 305,000 $ (4,561) $ 300,439 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Schedule of lease balance sheet locations | Classification December 31, 2020 Operating Leases Right-of-use assets - current Prepaid expenses and other $ 806 Right-of-use assets - non-current Other assets 6,404 Total right-of-use assets $ 7,210 Lease liabilities - current Other current liabilities $ 951 Lease liabilities - non-current Other long-term liabilities 7,634 Total operating lease liabilities $ 8,585 |
Schedule of lease maturities | Maturities of operating lease liabilities at December 31, 2020 were as follows (amounts in thousands): Fiscal Years: Operating Leases 2021 $ 574 2022 1,145 2023 1,121 2024 1,121 2025 1,082 Thereafter 4,524 Total lease payments $ 9,567 Less imputed interest (982) Total $ 8,585 |
Schedule of other lease information | Other information pertaining to leases consist of the following: December 31, 2020 Operating Lease Term and Discount Rate Weighted average remaining lease term in years 9 Weighted average discount rate 2.5% |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
REVENUE | |
Summary of disaggregated revenue | Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Stream revenue: Gold $ 83,685 $ 69,111 $ 167,282 $ 141,335 Silver 11,128 8,929 22,026 17,365 Copper 12,906 11,585 24,914 17,906 Total stream revenue $ 107,719 $ 89,625 $ 214,222 $ 176,606 Royalty revenue: Gold $ 36,471 $ 22,068 $ 63,375 $ 43,825 Silver 4,193 3,365 7,634 5,194 Copper 4,395 4,107 8,456 7,087 Other 5,582 4,478 11,553 9,705 Total royalty revenue $ 50,641 $ 34,018 $ 91,018 $ 65,811 Total revenue $ 158,360 $ 123,643 $ 305,240 $ 242,417 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, Metal(s) 2020 2019 2020 2019 Stream revenue: Mount Milligan Gold & Copper $ 44,713 $ 30,629 $ 79,332 $ 61,126 Pueblo Viejo Gold & Silver 27,554 23,614 58,824 45,232 Andacollo Gold 17,766 20,665 41,275 41,269 Wassa Gold 6,761 4,794 15,870 10,113 Other Gold & Silver 10,925 9,923 18,921 18,866 Total stream revenue $ 107,719 $ 89,625 $ 214,222 $ 176,606 Royalty revenue: Peñasquito Gold, Silver, Lead & Zinc $ 12,952 $ 7,577 $ 23,161 $ 11,997 Cortez Gold 8,128 3,292 13,812 7,709 Other Various 29,561 23,149 54,045 46,105 Total royalty revenue $ 50,641 $ 34,018 $ 91,018 $ 65,811 Total revenue $ 158,360 $ 123,643 $ 305,240 $ 242,417 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION | |
Schedule of recognized stock-based compensation expense | Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (Amounts in thousands) (Amounts in thousands) Stock options $ 17 $ 26 $ 33 $ 57 Stock appreciation rights 430 430 801 872 Restricted stock 588 697 1,585 1,940 Performance stock 363 385 473 770 Total stock-based compensation expense $ 1,398 $ 1,538 $ 2,892 $ 3,639 |
Schedule of stock-based compensation awards | Six Months Ended December 31, December 31, 2020 2019 (Number of shares) Stock options 2,860 1,604 Stock appreciation rights 64,100 46,726 Restricted stock 26,104 23,976 Performance stock (at maximum 200% attainment) 35,380 28,560 Total equity awards granted 128,444 100,866 |
Schedule of unrecognized compensation expense | As of December 31, 2020, 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 $ 123 2.3 Stock appreciation rights 3,172 2.2 Restricted stock 4,993 3.5 Performance stock 2,367 1.9 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE ("EPS") | |
Summary of the effects of dilutive securities on diluted EPS | The following tables summarize the effects of dilutive securities on diluted EPS for the period (amounts in thousands, except share data): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Net income attributable to Royal Gold common stockholders $ 59,889 $ 41,321 $ 166,828 $ 111,774 Weighted-average shares for basic EPS 65,546,938 65,495,907 65,542,326 65,480,759 Effect of other dilutive securities 72,303 115,660 83,639 132,647 Weighted-average shares for diluted EPS 65,619,241 65,611,567 65,625,965 65,613,406 Basic EPS $ 0.91 $ 0.63 $ 2.55 $ 1.70 Diluted EPS $ 0.91 $ 0.63 $ 2.54 $ 1.70 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Components of income tax expense | Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (Amounts in thousands, except rate) (Amounts in thousands, except rate) Income tax expense (benefit) $ 16,031 $ 11,124 $ 13,654 $ (12,401) Effective tax rate 21.1% 21.6% 7.6% (12.8%) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of geographical distribution of long-lived assets | As of December 31, 2020 As of June 30, 2020 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 661,172 $ 184,601 $ 845,773 $ 702,732 $ 189,855 $ 892,587 Dominican Republic 384,322 — 384,322 406,469 — 406,469 Chile 267,334 224,116 491,450 277,661 223,922 501,583 Africa 253,856 321 254,177 215,463 321 215,784 Mexico — 71,843 71,843 — 75,951 75,951 United States — 115,427 115,427 — 159,445 159,445 Australia — 29,161 29,161 — 30,006 30,006 Rest of world 12,038 27,789 39,827 12,038 25,050 37,088 Total $ 1,578,722 $ 653,258 $ 2,231,980 $ 1,614,363 $ 704,550 $ 2,318,913 |
Schedule of reportable segments for assessing performance | Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended December 31, 2020 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 107,719 $ 24,859 $ — $ 40,226 $ 42,634 Royalty interests 50,641 — 1,401 7,635 41,605 Total $ 158,360 $ 24,859 $ 1,401 $ 47,861 $ 84,239 Three Months Ended December 31, 2019 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 89,625 $ 21,077 $ — $ 32,181 $ 36,367 Royalty interests 34,018 — 984 7,801 25,233 Total $ 123,643 $ 21,077 $ 984 $ 39,982 $ 61,600 Six Months Ended December 31, 2020 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 214,222 $ 46,760 $ — $ 79,253 $ 88,209 Royalty interests 91,018 — 2,756 14,822 73,440 Total $ 305,240 $ 46,760 $ 2,756 $ 94,075 $ 161,649 Six Months Ended December 31, 2019 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 176,606 $ 41,188 $ — $ 63,643 $ 71,775 Royalty interests 65,811 — 2,083 15,000 48,728 Total $ 242,417 $ 41,188 $ 2,083 $ 78,643 $ 120,503 (1) Excludes depreciation, depletion and amortization (2) Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income. |
Schedule of reconciliation of segment gross profit to consolidated income (loss) | A reconciliation of total segment gross profit to the consolidated Income before income taxes Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Total segment gross profit $ 84,239 $ 61,600 $ 161,649 $ 120,503 Costs and expenses General and administrative expenses 6,789 6,665 14,244 14,108 Exploration costs — 1,514 563 4,140 Depreciation and amortization 84 114 170 167 Gain on sale of Peak Gold JV interest — — (33,906) — Operating income 77,366 53,307 180,578 102,088 Fair value changes in equity securities (382) 222 2,158 (1,153) Interest and other income 613 226 1,034 1,001 Interest and other expense (1,578) (2,217) (3,454) (5,051) Income before income taxes $ 76,019 $ 51,538 $ 180,316 $ 96,885 |
Schedule of revenue by reportable segment geographically distributed | Our revenue by reportable segment for the three and six months ended December 31, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Stream interests: Canada $ 54,302 $ 38,191 $ 95,888 $ 75,854 Dominican Republic 27,554 23,614 58,824 45,232 Chile 17,766 20,665 41,275 41,269 Africa 8,097 7,155 18,235 14,251 Total stream interests $ 107,719 $ 89,625 $ 214,222 $ 176,606 Royalty interests: United States $ 17,090 $ 10,012 $ 30,788 $ 20,614 Mexico 15,174 9,376 26,751 15,763 Australia 8,314 3,546 12,856 7,348 Canada 6,047 8,037 13,458 16,958 Africa 744 911 1,494 1,606 Rest of world 3,272 2,136 5,671 3,522 Total royalty interests $ 50,641 $ 34,018 $ 91,018 $ 65,811 Total revenue $ 158,360 $ 123,643 $ 305,240 $ 242,417 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on recurring basis | As of December 31, 2020 Fair Value Carrying Amount Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 7,874 $ 7,874 $ 6,447 $ 1,427 $ — (1) Other assets |
SALE OF PEAK GOLD JV INTEREST (
SALE OF PEAK GOLD JV INTEREST (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 29, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of Peak Gold JV interest | $ 49,154 | ||||
Proceeds from sale of Contango shares | 12,146 | ||||
Total cash consideration | $ 61,300 | ||||
Stream and royalty interests, net | 2,231,980 | $ 2,318,913 | |||
Gain on sale of Peak Gold JV interest | 33,906 | ||||
Peak Gold LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash consideration | $ 4,000 | ||||
Percentage of royalty that can be acquired | 50.00% | ||||
Peak Gold | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net smelter return (NSR) (as a percent) | 28.00% | ||||
Stream and royalty interests, net | $ 4,400 | ||||
Alaska mining claims | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net smelter return (NSR) (as a percent) | 3.00% | 2.00% | |||
Percentage of royalty that can be acquired | 1.00% | ||||
Peak Gold | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of ownership interest | 40.00% | 40.00% | |||
Proceeds from sale of Peak Gold JV interest | $ 49,200 | ||||
Gain on sale of Peak Gold JV interest | $ 33,900 | ||||
Contango | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of shares sold | 809,744 | 809,744 | |||
Proceeds from sale of Contango shares | $ 12,100 | ||||
Mark-to-market increase on sale | $ 3,600 |
STREAM AND ROYALTY INTERESTS,_3
STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Cost | $ 3,559,270 | $ 3,553,950 |
Accumulated Depletion | (1,327,290) | (1,233,696) |
Impairments | (1,341) | |
Net | 2,231,980 | 2,318,913 |
Other | ||
Cost | 137,826 | |
Net | 137,826 | |
Total production stage stream and royalty interests | ||
Cost | 3,018,290 | 3,018,837 |
Accumulated Depletion | (1,327,290) | (1,233,696) |
Impairments | (1,341) | |
Net | 1,691,000 | 1,783,800 |
Production stage stream interests | ||
Cost | 2,111,424 | 2,111,423 |
Accumulated Depletion | (724,959) | (645,705) |
Net | 1,386,465 | 1,465,718 |
Production stage stream interests | Mount Milligan | ||
Cost | 790,635 | 790,635 |
Accumulated Depletion | (270,370) | (236,352) |
Net | 520,265 | 554,283 |
Production stage stream interests | Pueblo Viejo | ||
Cost | 610,405 | 610,404 |
Accumulated Depletion | (226,083) | (203,935) |
Net | 384,322 | 406,469 |
Production stage stream interests | Andacollo | ||
Cost | 388,182 | 388,182 |
Accumulated Depletion | (120,847) | (110,521) |
Net | 267,335 | 277,661 |
Production stage stream interests | Rainy River | ||
Cost | 175,727 | 175,727 |
Accumulated Depletion | (34,820) | (27,278) |
Net | 140,907 | 148,449 |
Production stage stream interests | Wassa | ||
Cost | 146,475 | 146,475 |
Accumulated Depletion | (72,839) | (67,619) |
Net | 73,636 | 78,856 |
Production stage royalty interests | ||
Cost | 906,866 | 907,414 |
Accumulated Depletion | (602,331) | (587,991) |
Impairments | (1,341) | |
Net | 304,535 | 318,082 |
Production stage royalty interests | Voisey's Bay | ||
Cost | 205,724 | 205,724 |
Accumulated Depletion | (104,850) | (101,381) |
Net | 100,874 | 104,343 |
Production stage royalty interests | Penasquito | ||
Cost | 99,172 | 99,172 |
Accumulated Depletion | (47,263) | (44,614) |
Net | 51,909 | 54,558 |
Production stage royalty interests | Cortez | ||
Cost | 80,681 | 80,681 |
Accumulated Depletion | (16,418) | (15,065) |
Net | 64,263 | 65,616 |
Production stage royalty interests | Other | ||
Cost | 521,289 | 521,837 |
Accumulated Depletion | (433,800) | (426,931) |
Impairments | (1,341) | |
Net | 87,489 | 93,565 |
Total development stage stream and royalty interests | ||
Cost | 262,037 | 219,597 |
Net | 262,037 | 219,597 |
Development stage stream interests | Khoemacau | ||
Cost | 180,220 | 136,608 |
Net | 180,220 | 136,608 |
Development stage stream interests | Other | ||
Cost | 12,037 | 12,037 |
Net | 12,037 | 12,037 |
Development stage royalty interests | ||
Cost | 70,952 | |
Net | 70,952 | |
Development stage royalty interests | Other | ||
Cost | 69,780 | 70,952 |
Net | 69,780 | 70,952 |
Exploration stage royalty interests | ||
Cost | 278,943 | 315,516 |
Net | 278,943 | 315,516 |
Exploration stage royalty interests | Pascua-Lama | ||
Cost | 177,690 | 177,690 |
Net | 177,690 | $ 177,690 |
Exploration stage royalty interests | Other | ||
Cost | 101,253 | |
Net | $ 101,253 |
STREAM AND ROYALTY INTERESTS,_4
STREAM AND ROYALTY INTERESTS, NET (Details) $ in Thousands | Oct. 01, 2020oz | Dec. 31, 2020USD ($)oz | Jun. 30, 2020USD ($) |
Stream and royalty interests, net | $ | $ 2,231,980 | $ 2,318,913 | |
Wassa and Prestea | |||
Stream and royalty interests, net | $ | $ 73,600 | ||
Wassa | Initial Royalty | |||
Gold streaming interest (as a percent) | 10.50% | ||
Gold delivered (in ounces) | oz | 240,000 | ||
Spot price paid (as a percent) | 20.00% | ||
Remaining gold to be delivered (in ounces) | oz | 110,200 | ||
Wassa | Subsequent Royalty | |||
Gold streaming interest (as a percent) | 5.50% | ||
Spot price paid (as a percent) | 30.00% | ||
Prestea/Bogoso | |||
Gold streaming interest (as a percent) | 5.50% | ||
Spot price paid (as a percent) | 30.00% |
MARKETABLE EQUITY SECURITIES (D
MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 |
Marketable Securities | |||||
Proceeds from sale of Contango shares | $ 12,146 | ||||
Fair value changes in equity securities | $ (400) | 2,200 | |||
Investment value | $ 7,900 | $ 7,900 | $ 17,900 | ||
Contango | |||||
Marketable Securities | |||||
Number of shares sold | 809,744 | 809,744 | |||
Proceeds from sale of Contango shares | $ 12,100 | ||||
Mark-to-market increase on sale | $ 3,600 | ||||
Battle North Gold Corporation | |||||
Marketable Securities | |||||
Investment shares owned (in shares) | 3,949,575 | 3,949,575 | |||
TriStar | |||||
Marketable Securities | |||||
Common stock that can be purchased by warrants (in shares) | 19,640,000 | 19,640,000 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Jan. 04, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 |
Long-term debt disclosure | |||||||
Principal | $ 200,000 | $ 200,000 | $ 200,000 | $ 305,000 | |||
Debt Issuance Costs | (4,017) | (4,017) | (4,017) | (4,561) | |||
Total debt | 195,983 | 195,983 | 195,983 | 300,439 | |||
Repayment of debt | 105,000 | $ 85,000 | |||||
Credit Facility | |||||||
Long-term debt disclosure | |||||||
Principal | 200,000 | 200,000 | 200,000 | 305,000 | |||
Debt Issuance Costs | (4,017) | (4,017) | (4,017) | (4,561) | |||
Total debt | 195,983 | 195,983 | 195,983 | $ 300,439 | |||
Outstanding amount under credit facility | $ 150,000 | 200,000 | 200,000 | 200,000 | |||
Available under the revolving credit facility | 850,000 | $ 800,000 | $ 800,000 | $ 800,000 | |||
Effective interest rate (as percent) | 1.33% | 1.33% | 1.33% | ||||
Interest expense recognized | $ 1,000 | $ 1,600 | $ 2,200 | $ 3,800 | |||
Repayment of debt | $ 50,000 | ||||||
LIBOR | Credit Facility | |||||||
Long-term debt disclosure | |||||||
Basis spread on interest rate (as a percent) | 1.10% |
LEASES - Lease balance sheet (D
LEASES - Lease balance sheet (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($) | |
LEASES | |
Right-of-use assets - current | $ 806 |
Operating Lease, Right-of-Use Asset, Current, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent |
Right-of-use assets - non-current | $ 6,404 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent |
Total right-of-use assets | $ 7,210 |
Lease liabilities - current | $ 951 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current |
Lease liabilities - non-current | $ 7,634 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent |
Total operating lease liabilities | $ 8,585 |
LEASES - Lease maturities (Deta
LEASES - Lease maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
LEASES | |
2021 | $ 574 |
2022 | 1,145 |
2023 | 1,121 |
2024 | 1,121 |
2025 | 1,082 |
Thereafter | 4,524 |
Total lease payments | 9,567 |
Less imputed interest | (982) |
Total | $ 8,585 |
LEASES - Lease other (Details)
LEASES - Lease other (Details) | Dec. 31, 2020 |
LEASES | |
Weighted average remaining lease term in years | 9 years |
Weighted average discount rate | 2.50% |
REVENUE (Details)
REVENUE (Details) | 6 Months Ended |
Dec. 31, 2020item | |
Number of revenue sources | 2 |
Minimum | |
Average sale price determination period | 10 days |
Maximum | |
Average sale price determination period | 3 months |
REVENUE - Metal Disaggregation
REVENUE - Metal Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 158,360 | $ 123,643 | $ 305,240 | $ 242,417 |
Stream interests | ||||
Disaggregation of Revenue | ||||
Revenue | 107,719 | 89,625 | 214,222 | 176,606 |
Stream interests | Gold | ||||
Disaggregation of Revenue | ||||
Revenue | 83,685 | 69,111 | 167,282 | 141,335 |
Stream interests | Silver | ||||
Disaggregation of Revenue | ||||
Revenue | 11,128 | 8,929 | 22,026 | 17,365 |
Stream interests | Copper | ||||
Disaggregation of Revenue | ||||
Revenue | 12,906 | 11,585 | 24,914 | 17,906 |
Royalty interests | ||||
Disaggregation of Revenue | ||||
Revenue | 50,641 | 34,018 | 91,018 | 65,811 |
Royalty interests | Gold | ||||
Disaggregation of Revenue | ||||
Revenue | 36,471 | 22,068 | 63,375 | 43,825 |
Royalty interests | Silver | ||||
Disaggregation of Revenue | ||||
Revenue | 4,193 | 3,365 | 7,634 | 5,194 |
Royalty interests | Copper | ||||
Disaggregation of Revenue | ||||
Revenue | 4,395 | 4,107 | 8,456 | 7,087 |
Royalty interests | Other | ||||
Disaggregation of Revenue | ||||
Revenue | $ 5,582 | $ 4,478 | $ 11,553 | $ 9,705 |
REVENUE - Property Disaggregati
REVENUE - Property Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 158,360 | $ 123,643 | $ 305,240 | $ 242,417 |
Stream interests | ||||
Disaggregation of Revenue | ||||
Revenue | 107,719 | 89,625 | 214,222 | 176,606 |
Stream interests | Mount Milligan | ||||
Disaggregation of Revenue | ||||
Revenue | 44,713 | 30,629 | 79,332 | 61,126 |
Stream interests | Pueblo Viejo | ||||
Disaggregation of Revenue | ||||
Revenue | 27,554 | 23,614 | 58,824 | 45,232 |
Stream interests | Andacollo | ||||
Disaggregation of Revenue | ||||
Revenue | 17,766 | 20,665 | 41,275 | 41,269 |
Stream interests | Wassa and Prestea | ||||
Disaggregation of Revenue | ||||
Revenue | 6,761 | 4,794 | 15,870 | 10,113 |
Stream interests | Other | ||||
Disaggregation of Revenue | ||||
Revenue | 10,925 | 9,923 | 18,921 | 18,866 |
Royalty interests | ||||
Disaggregation of Revenue | ||||
Revenue | 50,641 | 34,018 | 91,018 | 65,811 |
Royalty interests | Other | ||||
Disaggregation of Revenue | ||||
Revenue | 29,561 | 23,149 | 54,045 | 46,105 |
Royalty interests | Penasquito | ||||
Disaggregation of Revenue | ||||
Revenue | 12,952 | 7,577 | 23,161 | 11,997 |
Royalty interests | Cortez | ||||
Disaggregation of Revenue | ||||
Revenue | $ 8,128 | $ 3,292 | $ 13,812 | $ 7,709 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-based compensation | ||||
Stock-based compensation expense | $ 1,398 | $ 1,538 | $ 2,892 | $ 3,639 |
Stock options granted (in shares) | 0 | 0 | ||
Stock-based compensation awards granted (in shares) | 128,444 | 100,866 | ||
Stock options | ||||
Stock-based compensation | ||||
Stock-based compensation expense | $ 17 | $ 26 | $ 33 | $ 57 |
Stock options granted (in shares) | 2,860 | 1,604 | ||
Unrecognized compensation expense | 123 | $ 123 | ||
Weighted-average recognition period | 2 years 3 months 18 days | |||
Stock appreciation rights | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 430 | 430 | $ 801 | $ 872 |
Other than options granted (in shares) | 64,100 | 46,726 | ||
Unrecognized compensation expense | 3,172 | $ 3,172 | ||
Weighted-average recognition period | 2 years 2 months 12 days | |||
Restricted stock | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 588 | 697 | $ 1,585 | $ 1,940 |
Other than options granted (in shares) | 26,104 | 23,976 | ||
Unrecognized compensation expense | 4,993 | $ 4,993 | ||
Weighted-average recognition period | 3 years 6 months | |||
Performance stock | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 363 | $ 385 | $ 473 | $ 770 |
Other than options granted (in shares) | 35,380 | 28,560 | ||
Unrecognized compensation expense | $ 2,367 | $ 2,367 | ||
Weighted-average recognition period | 1 year 10 months 24 days | |||
Performance stock | Maximum | ||||
Stock-based compensation | ||||
Earn out basis if all goals are met (as a percent) | 200.00% | 200.00% |
EARNINGS PER SHARE ("EPS") (Det
EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
EARNINGS PER SHARE ("EPS") | ||||
Net income attributable to Royal Gold common stockholders | $ 59,889 | $ 41,321 | $ 166,828 | $ 111,774 |
Weighted-average shares for basic EPS | 65,546,938 | 65,495,907 | 65,542,326 | 65,480,759 |
Effect of other dilutive securities (in shares) | 72,303 | 115,660 | 83,639 | 132,647 |
Weighted-average shares for diluted EPS | 65,619,241 | 65,611,567 | 65,625,965 | 65,613,406 |
Basic EPS (in dollars per share) | $ 0.91 | $ 0.63 | $ 2.55 | $ 1.70 |
Diluted EPS (in dollars per share) | $ 0.91 | $ 0.63 | $ 2.54 | $ 1.70 |
INCOME TAXES - Quarterly (Detai
INCOME TAXES - Quarterly (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||
Income tax expense (benefit) | $ 16,031 | $ 11,124 | $ 13,654 | $ (12,401) |
Effective tax rate (as a percent) | 21.10% | 21.60% | 7.60% | (12.80%) |
Estimates for uncertain tax positions | $ (24,500) | $ (32,300) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | |
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Number of reportable segments | segment | 2 | ||||
Stream and royalty interests, net | $ 2,231,980 | $ 2,231,980 | $ 2,318,913 | ||
Revenue | 158,360 | $ 123,643 | 305,240 | $ 242,417 | |
Cost of sales | 24,859 | 21,077 | 46,760 | 41,188 | |
Production taxes | 1,401 | 984 | 2,756 | 2,083 | |
Depletion | 47,861 | 39,982 | 94,075 | 78,643 | |
Total segment gross profit | 84,239 | 61,600 | 161,649 | 120,503 | |
Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 845,773 | 845,773 | 892,587 | ||
Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 384,322 | 384,322 | 406,469 | ||
Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 491,450 | 491,450 | 501,583 | ||
Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 254,177 | 254,177 | 215,784 | ||
Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 71,843 | 71,843 | 75,951 | ||
United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 115,427 | 115,427 | 159,445 | ||
Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 29,161 | 29,161 | 30,006 | ||
Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 39,827 | 39,827 | 37,088 | ||
Stream interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 1,578,722 | 1,578,722 | 1,614,363 | ||
Revenue | 107,719 | 89,625 | 214,222 | 176,606 | |
Cost of sales | 24,859 | 21,077 | 46,760 | 41,188 | |
Depletion | 40,226 | 32,181 | 79,253 | 63,643 | |
Total segment gross profit | 42,634 | 36,367 | 88,209 | 71,775 | |
Stream interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 661,172 | 661,172 | 702,732 | ||
Revenue | 54,302 | 38,191 | 95,888 | 75,854 | |
Stream interests | Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 384,322 | 384,322 | 406,469 | ||
Revenue | 27,554 | 23,614 | 58,824 | 45,232 | |
Stream interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 267,334 | 267,334 | 277,661 | ||
Revenue | 17,766 | 20,665 | 41,275 | 41,269 | |
Stream interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 253,856 | 253,856 | 215,463 | ||
Revenue | 8,097 | 7,155 | 18,235 | 14,251 | |
Stream interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 12,038 | 12,038 | 12,038 | ||
Royalty interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 653,258 | 653,258 | 704,550 | ||
Revenue | 50,641 | 34,018 | 91,018 | 65,811 | |
Production taxes | 1,401 | 984 | 2,756 | 2,083 | |
Depletion | 7,635 | 7,801 | 14,822 | 15,000 | |
Total segment gross profit | 41,605 | 25,233 | 73,440 | 48,728 | |
Royalty interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 184,601 | 184,601 | 189,855 | ||
Revenue | 6,047 | 8,037 | 13,458 | 16,958 | |
Royalty interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 224,116 | 224,116 | 223,922 | ||
Royalty interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 321 | 321 | 321 | ||
Revenue | 744 | 911 | 1,494 | 1,606 | |
Royalty interests | Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 71,843 | 71,843 | 75,951 | ||
Revenue | 15,174 | 9,376 | 26,751 | 15,763 | |
Royalty interests | United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 115,427 | 115,427 | 159,445 | ||
Revenue | 17,090 | 10,012 | 30,788 | 20,614 | |
Royalty interests | Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 29,161 | 29,161 | 30,006 | ||
Revenue | 8,314 | 3,546 | 12,856 | 7,348 | |
Royalty interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interests, net | 27,789 | 27,789 | $ 25,050 | ||
Revenue | $ 3,272 | $ 2,136 | $ 5,671 | $ 3,522 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation gross profit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEGMENT INFORMATION | ||||
Total segment gross profit | $ 84,239 | $ 61,600 | $ 161,649 | $ 120,503 |
Costs and expenses | ||||
General and administrative expenses | 6,789 | 6,665 | 14,244 | 14,108 |
Exploration costs | 1,514 | 563 | 4,140 | |
Depreciation and amortization | 84 | 114 | 170 | 167 |
Gain on sale of Peak Gold JV interest | (33,906) | |||
Operating income | 77,366 | 53,307 | 180,578 | 102,088 |
Fair value changes in equity securities | (382) | 222 | 2,158 | (1,153) |
Interest and other income | 613 | 226 | 1,034 | 1,001 |
Interest and other expense | (1,578) | (2,217) | (3,454) | (5,051) |
Income before income taxes | $ 76,019 | $ 51,538 | $ 180,316 | $ 96,885 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Recurring basis $ in Thousands | Dec. 31, 2020USD ($) |
Carrying Amount | |
Assets: | |
Marketable equity securities | $ 7,874 |
Fair Value | |
Assets: | |
Marketable equity securities | 7,874 |
Level 1 | |
Assets: | |
Marketable equity securities | 6,447 |
Level 2 | |
Assets: | |
Marketable equity securities | $ 1,427 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jan. 06, 2021 | Oct. 05, 2020 | Jul. 05, 2020 | Apr. 03, 2020 | Feb. 02, 2020 | Nov. 05, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies | ||||||||
Acquisition consideration paid | $ 48,832 | $ 72,417 | ||||||
Khoemacau | ||||||||
Commitments and Contingencies | ||||||||
Acquisition consideration paid | $ 32,600 | $ 32,500 | $ 11,100 | $ 47,900 | $ 22,000 | $ 65,800 | ||
Total contributions | 212,000 | |||||||
Maximum future contingent payments | 53,000 | |||||||
Ilovica | ||||||||
Commitments and Contingencies | ||||||||
Maximum future contingent payments | $ 163,750 |