Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
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 | 65,639,660 | |
Entity Central Index Key | 0000085535 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and equivalents | $ 280,617 | $ 143,551 |
Royalty receivables | 36,868 | 54,088 |
Income tax receivable | 7,712 | 4,915 |
Stream inventory | 13,172 | 11,607 |
Prepaid expenses and other | 1,971 | 1,835 |
Total current assets | 340,340 | 215,996 |
Stream and royalty interests, net (Note 3) | 2,389,864 | 2,443,752 |
Other assets | 122,842 | 97,284 |
Total assets | 2,853,046 | 2,757,032 |
LIABILITIES | ||
Accounts payable | 7,067 | 6,475 |
Dividends payable | 22,984 | 22,966 |
Income tax payable | 24,047 | 19,070 |
Other current liabilities | 9,915 | 12,917 |
Total current liabilities | 64,013 | 61,428 |
Deferred tax liabilities | 86,206 | 87,705 |
Other liabilities | 6,169 | 6,688 |
Total liabilities | 156,388 | 155,821 |
Commitments and contingencies (Note 12) | ||
EQUITY | ||
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,569,687 and 65,564,364 shares outstanding, respectively | 656 | 656 |
Additional paid-in capital | 2,210,809 | 2,206,159 |
Accumulated earnings | 472,764 | 381,929 |
Total Royal Gold stockholders' equity | 2,684,229 | 2,588,744 |
Non-controlling interests | 12,429 | 12,467 |
Total equity | 2,696,658 | 2,601,211 |
Total liabilities and equity | $ 2,853,046 | $ 2,757,032 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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 | 65,569,687 | 65,564,364 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Operations and Comprehensive Income | ||||
Revenue (Note 6) | $ 146,441 | $ 168,027 | $ 308,796 | $ 310,616 |
Costs and expenses | ||||
Cost of sales (excludes depreciation, depletion and amortization) | 23,810 | 24,668 | 46,450 | 46,137 |
General and administrative | 9,312 | 7,212 | 18,243 | 14,143 |
Production taxes | 1,425 | 2,152 | 3,646 | 3,987 |
Depreciation, depletion and amortization | 43,989 | 48,028 | 91,976 | 89,324 |
Total costs and expenses | 78,536 | 82,060 | 160,315 | 153,591 |
Operating income | 67,905 | 85,967 | 148,481 | 157,025 |
Fair value changes in equity securities | (2,191) | 1,957 | (1,577) | 3,859 |
Interest and other income | 1,118 | 676 | 2,093 | 1,409 |
Interest and other expense | (1,398) | (1,145) | (2,296) | (2,965) |
Income before income taxes | 65,434 | 87,455 | 146,701 | 159,328 |
Income tax benefit (expense) | 5,911 | (5,536) | (9,393) | (23,214) |
Net income and comprehensive income | 71,345 | 81,919 | 137,308 | 136,114 |
Net income and comprehensive income attributable to non-controlling interests | (205) | (242) | (492) | (409) |
Net income and comprehensive income attributable to Royal Gold common stockholders | $ 71,140 | $ 81,677 | $ 136,816 | $ 135,705 |
Net income per share attributable to Royal Gold common stockholders: | ||||
Basic earnings per share | $ 1.08 | $ 1.24 | $ 2.08 | $ 2.07 |
Basic weighted average shares outstanding | 65,569,190 | 65,550,682 | 65,567,621 | 65,550,542 |
Diluted earnings per share | $ 1.08 | $ 1.24 | $ 2.08 | $ 2.07 |
Diluted weighted average shares outstanding | 65,678,320 | 65,636,964 | 65,661,653 | 65,629,284 |
Cash dividends declared per common share | $ 0.35 | $ 0.30 | $ 0.70 | $ 0.60 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Accumulated Earnings | Non-controlling Interests | Total |
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 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 2,787 | 2,787 | |||
Stock-based compensation and related share issuances (in shares) | 2,646 | ||||
Distributions to non-controlling interests | (799) | (799) | |||
Net income and comprehensive income | 135,705 | 409 | 136,114 | ||
Dividends declared | (39,366) | (39,366) | |||
Balance at Jun. 30, 2021 | $ 656 | 2,203,863 | 286,249 | 12,647 | 2,503,415 |
Balance (in shares) at Jun. 30, 2021 | 65,551,061 | ||||
Balance at Mar. 31, 2021 | $ 656 | 2,202,410 | 224,254 | 12,805 | 2,440,125 |
Balance (in shares) at Mar. 31, 2021 | 65,550,445 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 1,453 | 1,453 | |||
Stock-based compensation and related share issuances (in shares) | 616 | ||||
Distributions to non-controlling interests | (400) | (400) | |||
Net income and comprehensive income | 81,677 | 242 | 81,919 | ||
Dividends declared | (19,682) | (19,682) | |||
Balance at Jun. 30, 2021 | $ 656 | 2,203,863 | 286,249 | 12,647 | 2,503,415 |
Balance (in shares) at Jun. 30, 2021 | 65,551,061 | ||||
Balance at Dec. 31, 2021 | $ 656 | 2,206,159 | 381,929 | 12,467 | 2,601,211 |
Balance (in shares) at Dec. 31, 2021 | 65,564,364 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 4,650 | 4,650 | |||
Stock-based compensation and related share issuances (in shares) | 5,323 | ||||
Distributions to non-controlling interests | (530) | (530) | |||
Net income and comprehensive income | 136,816 | 492 | 137,308 | ||
Dividends declared | (45,981) | (45,981) | |||
Balance at Jun. 30, 2022 | $ 656 | 2,210,809 | 472,764 | 12,429 | 2,696,658 |
Balance (in shares) at Jun. 30, 2022 | 65,569,687 | ||||
Balance at Mar. 31, 2022 | $ 656 | 2,208,425 | 424,608 | 12,425 | 2,646,114 |
Balance (in shares) at Mar. 31, 2022 | 65,568,799 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 2,384 | 2,384 | |||
Stock-based compensation and related share issuances (in shares) | 888 | ||||
Distributions to non-controlling interests | (201) | (201) | |||
Net income and comprehensive income | 71,140 | 205 | 71,345 | ||
Dividends declared | (22,984) | (22,984) | |||
Balance at Jun. 30, 2022 | $ 656 | $ 2,210,809 | $ 472,764 | $ 12,429 | $ 2,696,658 |
Balance (in shares) at Jun. 30, 2022 | 65,569,687 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income and comprehensive income | $ 137,308 | $ 136,114 |
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 91,976 | 89,324 |
Non-cash employee stock compensation expense | 4,542 | 2,837 |
Fair value changes in equity securities | 1,577 | (3,859) |
Deferred tax (benefit) expense | (28,114) | 8,861 |
Other | 491 | 572 |
Changes in assets and liabilities: | ||
Royalty receivables | 17,220 | (2,925) |
Stream inventory | (1,564) | (3,785) |
Income tax receivable | (2,797) | 4,419 |
Prepaid expenses and other assets | (1,359) | (582) |
Accounts payable | 592 | 3,786 |
Income tax payable | 4,976 | (8,839) |
Uncertain tax positions | (12,358) | |
Other liabilities | (3,519) | (479) |
Net cash provided by operating activities | 221,329 | 213,086 |
Cash flows from investing activities: | ||
Acquisition of stream and royalty interests | (37,841) | (119,315) |
Khoemacau subordinated debt facility | (18,000) | |
Proceeds from sale of equity securities | 8,651 | |
Other | (36) | (177) |
Net cash used in investing activities | (37,877) | (128,841) |
Cash flows from financing activities: | ||
Repayment of debt | (200,000) | |
Net payments from issuance of common stock | 108 | (50) |
Common stock dividends | (45,953) | (39,364) |
Other | (541) | (774) |
Net cash used in financing activities | (46,386) | (240,188) |
Net increase (decrease) in cash and equivalents | 137,066 | (155,943) |
Cash and equivalents at beginning of period | 143,551 | 381,859 |
Cash and equivalents at end of period | $ 280,617 | $ 225,916 |
OPERATIONS, SUMMARY OF SIGNIFIC
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2022 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS Royal Gold Inc., together with its subsidiaries (“Royal Gold,” the “Company,” “we,” “us,” or “our”), 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 June 30, 2022 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2022. These interim unaudited consolidated financial statements should be read in conjunction with our Transition Report on Form 10-K for the six months ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022 (“Transition Report”). Recent Accounting Standards We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2022 | |
ACQUISITIONS | |
ACQUISITIONS | 2. ACQUISITIONS Lawyers Royalty Acquisition On March 24, 2022, we acquired a 0.5% net smelter returns royalty (“NSR”) on production from the Lawyers Project, currently operated by Benchmark Metals Inc., which is located in British Columbia, Canada. As part of this transaction, we also acquired a right of first offer (“ROFO”) for an existing 2.0% NSR royalty over the Ranch Project owned by Thesis Gold, Inc. that is located adjacent to the Lawyers Project. We paid $8.0 million in cash consideration for the royalty and ROFO to Guardsmen Resources Inc. The Lawyers Project acquisition has been accounted for as an asset acquisition. The $8.0 million cash consideration, plus direct acquisition costs, have been recorded as an exploration stage royalty interest (Note 3) within Stream and royalty interests, net Khoemac a u Silver Stream On February 23, 2022, we made an advance payment of $10.0 million toward the option stream which increased our right to receive payable silver produced from Khoemac a Stream and royalty interests, net As of June 30, 2022, $25.0 million of the subordinated debt facility, and $3.5 million of accrued interest remains outstanding on the Khoemac a Other assets consolidated balance sheets. Refer to our Transition Report for further details on the Khoemac a |
STREAM AND ROYALTY INTERESTS, N
STREAM AND ROYALTY INTERESTS, NET | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021. As of June 30, 2022 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (369,245) $ 421,390 Pueblo Viejo 610,404 (274,189) 336,215 Andacollo 388,182 (146,235) 241,947 Khoemac a 265,911 (8,055) 257,856 Rainy River 175,727 (56,351) 119,376 Wassa 146,475 (90,625) 55,850 Other 69,101 (8,371) 60,730 Total production stage stream interests 2,446,435 (953,071) 1,493,364 Production stage royalty interests: Voisey's Bay 205,724 (116,383) 89,341 Red Chris 116,187 (1,797) 114,390 Peñasquito 99,172 (55,399) 43,773 Cortez 80,681 (28,232) 52,449 Other 447,251 (392,962) 54,289 Total production stage royalty interests 949,015 (594,773) 354,242 Total production stage stream and royalty interests 3,395,450 (1,547,844) 1,847,606 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Côté 45,421 — 45,421 Other 62,796 — 62,796 Total development stage stream and royalty interests 120,255 — 120,255 Exploration stage stream interests: NX Gold 34,253 — 34,253 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 131,555 — 131,555 Total exploration stage stream and royalty interests 422,003 — 422,003 Total stream and royalty interests, net $ 3,937,708 $ (1,547,844) $ 2,389,864 As of December 31, 2021 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (336,921) $ 453,714 Pueblo Viejo 610,405 (260,321) 350,084 Andacollo 388,182 (139,035) 249,147 Khoemac a 239,411 (3,402) 236,009 Rainy River 175,727 (50,115) 125,612 Wassa 146,475 (84,915) 61,560 Other 69,101 (4,193) 64,908 Total production stage stream interests 2,419,936 (878,902) 1,541,034 Production stage royalty interests: Voisey's Bay 205,724 (113,602) 92,122 Red Chris 116,187 — 116,187 Peñasquito 99,172 (53,022) 46,150 Cortez 80,681 (23,225) 57,456 Other 447,799 (387,364) 60,435 Total production stage royalty interests 949,563 (577,213) 372,350 Total production stage stream and royalty interests 3,369,499 (1,456,115) 1,913,384 Development stage stream interests: Other 12,037 — 12,037 Development stage royalty interests: Côté 45,421 — 45,421 Other 54,755 — 54,755 Total development stage stream and royalty interests 112,213 — 112,213 Exploration stage stream interests: NX Gold 30,974 — 30,974 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 130,986 — 130,986 Total exploration stage stream and royalty interests 418,155 — 418,155 Total stream and royalty interests, net $ 3,899,867 $ (1,456,115) $ 2,443,752 |
MARKETABLE EQUITY SECURITIES
MARKETABLE EQUITY SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
MARKETABLE EQUITY SECURITIES | |
MARKETABLE EQUITY SECURITIES | 4. MARKETABLE EQUITY SECURITIES As of June 30, 2022, our marketable equity securities include warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc. Our marketable equity securities are measured at fair value (Note 11) each reporting period with any changes in fair value recognized in net income. The fair value of our marketable equity securities decreased $2.2 million and $1.6 million for the three and six months ended June 30, 2022, respectively, and increased $2.0 million and $3.9 million for the three and six months ended June 30, 2021, respectively. These changes are included in Fair value changes in equity securities Other assets |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2022 | |
DEBT | |
DEBT | 5. DEBT Revolving credit facility As of June 30, 2022, we had no amounts outstanding under our revolving credit facility dated June 2, 2017, and as amended. Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $0.2 million and $0.5 million for the three and six months ended June 30, 2022, respectively, and $0.3 million and $1.1 million for the three and six months ended June 30, 2021, respectively. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under the revolving credit facility as of June 30, 2022. We may repay any borrowings under the revolving credit facility at any time without premium or penalty. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
REVENUE | |
REVENUE | 6. REVENUE Revenue Recognition 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 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 Transition Report. For the three months ended June 30, 2022, royalty revenue that was estimated or was attributable to metal production for a period prior to June 30, 2022, 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 10. Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Stream revenue: Gold $ 75,325 $ 91,187 $ 152,827 $ 156,698 Silver 12,892 8,449 24,331 21,255 Copper 16,662 14,785 32,972 31,814 Total stream revenue $ 104,879 $ 114,421 $ 210,130 $ 209,767 Royalty revenue: Gold $ 28,974 $ 37,164 $ 66,890 $ 68,409 Silver 3,512 4,356 7,829 8,564 Copper 3,281 3,977 9,986 7,993 Other 5,795 8,109 13,961 15,883 Total royalty revenue $ 41,562 $ 53,606 $ 98,666 $ 100,849 Total revenue $ 146,441 $ 168,027 $ 308,796 $ 310,616 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Metal(s) 2022 2021 2022 2021 Stream revenue: Mount Milligan Gold & Copper $ 45,627 $ 43,802 $ 88,043 $ 77,606 Pueblo Viejo Gold & Silver 19,812 26,585 43,076 56,759 Andacollo Gold 11,721 27,868 27,395 40,889 Wassa Gold 8,248 7,129 15,451 15,902 Khoemac a Silver 5,203 — 7,591 — Other Gold & Silver 14,268 9,037 28,574 18,611 Total stream revenue $ 104,879 $ 114,421 $ 210,130 $ 209,767 Royalty revenue: Peñasquito Gold, Silver, Lead & Zinc $ 9,664 $ 13,399 $ 22,758 $ 26,527 Cortez Gold 8,138 13,739 24,852 22,348 Other Various 23,760 26,468 51,056 51,974 Total royalty revenue $ 41,562 $ 53,606 $ 98,666 $ 100,849 Total revenue $ 146,441 $ 168,027 $ 308,796 $ 310,616 Please refer to Note 10 for the geographical distribution of our revenue by reportable segment. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 7. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Restricted stock $ 1,201 $ 550 $ 2,356 $ 1,082 Performance stock 847 479 1,478 844 Stock appreciation rights 360 446 692 876 Stock options 10 18 16 35 Total stock-based compensation expense $ 2,418 $ 1,493 $ 4,542 $ 2,837 Stock-based compensation expense is included within General and administrative There were no awards granted during the three months ended June 30, 2022 and 2021. During the six months ended June 30, 2022 and 2021, we granted the following stock-based compensation awards: Six Months Ended June 30, June 30, 2022 2021 (Number of shares) Performance stock (at maximum 200% attainment) 39,380 — Restricted stock 28,220 — Total equity awards granted 67,600 — As of June 30, 2022, 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) Restricted stock $ 8,347 2.4 Performance stock 6,039 2.2 Stock appreciation rights 964 1.1 Stock options 33 1.1 |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE ("EPS") | |
EARNINGS PER SHARE ("EPS") | 8. EARNINGS PER SHARE (“EPS”) Basic EPS was 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 periods shown below (amounts in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Net income attributable to Royal Gold common stockholders $ 71,140 $ 81,677 $ 136,816 $ 135,705 Weighted-average shares for basic EPS 65,569,190 65,550,682 65,567,621 65,550,542 Effect of other dilutive securities 109,130 86,282 94,032 78,742 Weighted-average shares for diluted EPS 65,678,320 65,636,964 65,661,653 65,629,284 Basic EPS $ 1.08 $ 1.24 $ 2.08 $ 2.07 Diluted EPS $ 1.08 $ 1.24 $ 2.08 $ 2.07 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | 9. INCOME TAXES Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Income tax benefit (expense) $ 5,911 $ (5,536) $ (9,393) $ (23,214) Effective tax rate 9.0% (6.3%) (6.4%) (14.6%) The effective tax rate for the three and six months ended June 30, 2022, included a discrete income tax benefit of $18.8 million attributable to the release of a valuation allowance on certain deferred tax assets. The effective tax rate for the three and six months ended June 30, 2021, included a discrete tax benefit of $11.5 million attributable to the settlement of an uncertain tax position with a foreign jurisdiction. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 10. 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. Our long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands): As of June 30, 2022 As of December 31, 2021 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 540,766 $ 414,496 $ 955,262 $ 579,326 $ 412,419 $ 991,745 Chile 241,947 224,116 466,063 249,147 224,116 473,263 Dominican Republic 336,215 — 336,215 350,083 — 350,083 Africa 313,707 321 314,028 297,569 321 297,890 United States — 101,921 101,921 — 107,761 107,761 Mexico — 55,877 55,877 — 60,977 60,977 Australia — 26,861 26,861 — 27,496 27,496 Rest of world 107,020 26,617 133,637 107,920 26,617 134,537 Total $ 1,539,655 $ 850,209 $ 2,389,864 $ 1,584,045 $ 859,707 $ 2,443,752 Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended June 30, 2022 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 104,879 $ 23,810 $ — $ 37,790 $ 43,279 Royalty interests 41,562 — 1,425 6,075 34,062 Total $ 146,441 $ 23,810 $ 1,425 $ 43,865 $ 77,341 Three Months Ended June 30, 2021 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 114,421 $ 24,668 $ — $ 38,746 $ 51,007 Royalty interests 53,606 — 2,152 9,190 42,264 Total $ 168,027 $ 24,668 $ 2,152 $ 47,936 $ 93,271 Six Months Ended June 30, 2022 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 210,130 $ 46,450 $ — $ 74,169 $ 89,511 Royalty interests 98,666 — 3,646 17,561 77,459 Total $ 308,796 $ 46,450 $ 3,646 $ 91,730 $ 166,970 Six Months Ended June 30, 2021 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 209,767 $ 46,137 $ — $ 71,341 $ 92,289 Royalty interests 100,849 — 3,987 17,797 79,065 Total $ 310,616 $ 46,137 $ 3,987 $ 89,138 $ 171,354 (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 June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Total segment gross profit $ 77,341 $ 93,271 $ 166,970 $ 171,354 Costs and expenses General and administrative expenses 9,312 7,212 18,243 14,143 Depreciation and amortization 124 92 246 186 Operating income 67,905 85,967 148,481 157,025 Fair value changes in equity securities (2,191) 1,957 (1,577) 3,859 Interest and other income 1,118 676 2,093 1,409 Interest and other expense (1,398) (1,145) (2,296) (2,965) Income before income taxes $ 65,434 $ 87,455 $ 146,701 $ 159,328 Our revenue by reportable segment for the three and six months ended June 30, 2022 and 2021 is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Stream interests: Canada $ 54,591 $ 52,040 $ 106,077 $ 94,649 Dominican Republic 19,812 26,585 43,076 56,759 Africa 14,540 7,928 25,375 17,470 Chile 11,721 27,868 27,395 40,889 Rest of world 4,215 — 8,207 — Total stream interests $ 104,879 $ 114,421 $ 210,130 $ 209,767 Royalty interests: United States $ 16,845 $ 21,349 $ 41,202 $ 37,823 Mexico 11,940 16,191 27,821 31,461 Canada 5,773 9,601 16,551 18,213 Australia 4,040 4,249 8,086 8,610 Africa 114 559 430 1,307 Rest of world 2,850 1,657 4,576 3,435 Total royalty interests $ 41,562 $ 53,606 $ 98,666 $ 100,849 Total revenue $ 146,441 $ 168,027 $ 308,796 $ 310,616 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 11. 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 June 30, 2022 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 155 $ 155 $ — $ 155 $ — (1) Other assets The TriStar Gold Inc. warrants (Note 4) 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. The carrying value of our revolving credit facility (Note 5) approximates fair value as of June 30, 2022. As of June 30, 2022, 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 |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES NX Gold Exploration Payment On March 22, 2022, we made a payment of $3.2 million to a subsidiary of Ero Copper Corporation (“Ero”) as part of our commitment to support the achievement of success-based targets related to regional exploration and mineral resource additions. This payment has been recorded to exploration stage stream interests (Note 3) within Stream and royalty interests, net Ilovica Gold Stream Acquisition As of June 30, 2022, our conditional funding schedule of $163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS Acquisition of Additional Royalty Interest on Cortez Complex On August 2, 2022, we announced that we acquired a sliding-scale gross royalty (the “Cortez Royalty”) on an area including the Cortez mine operational area and the Fourmile development project in Nevada (the “Cortez Complex”). We paid $525 million in cash consideration for the Cortez Royalty to Kennecott Royalty Company, a wholly owned subsidiary of Rio Tinto European Holdings Limited. The area within the Cortez Complex is owned or controlled by Nevada Gold Mines LLC (“NGM”), a joint venture between Barrick Gold Corporation (“Barrick”) (61.5% owner and operator) and Newmont Corporation (38.5% owner), with the exception of the Fourmile project which is 100% owned and operated by Barrick. The Cortez Royalty is a life of mine sliding scale gross royalty payable at a rate of 0% at a gold price less than $400 per ounce, increasing to 3% at a gold price above $900 per ounce, and is payable on 40% of all production from the Cortez Complex. The Cortez Royalty does not cover the existing deposits within the Robertson property. At current gold prices the Cortez Royalty is an effective 1.2% gross royalty on the Cortez Complex and is not subject to any stepdowns or caps. The Cortez Royalty is payable after cumulative production from the Cortez Complex of 15 million gold equivalent ounces from January 1, 2008 onwards. According to Barrick public disclosure, cumulative production from January 1, 2008, was approximately 14.8 million ounces as of June 30, 2022. The purchase price was funded with debt and available cash on hand. In anticipation of this acquisition, we borrowed $500 million under our revolving credit facility in July 2022, leaving $500 million available. Per our credit facility dated June 2, 2017, as amended, the borrowing was under a Base Rate loan option with an all-in interest rate of approximately 5.6%. We anticipate converting the Base Rate loan into a LIBOR loan on or around August 5, 2022. Agreement to Acquire Great Bear Royalties Corporation On July 11, 2022, we announced that we had entered into a definitive agreement with Great Bear Royalties Corporation (“GBR”) to acquire all of the issued and outstanding common shares of GBR for cash consideration of C $6.65 per common share, which values GBR at approximately C $199.5 million (approximately US $155 million) on a fully diluted basis. GBR’s sole material asset is a 2.0% NSR royalty (the “Royalty”) that includes the entire 9,140 hectares of the Great Bear Project in the Red Lake district of Ontario, Canada, indirectly owned and operated by Kinross Gold Corporation (“Kinross”). As part of our due diligence, we entered into a co-operation agreement with Kinross to obtain access to Kinross personnel and certain information pertaining to the Great Bear Project. In exchange, we agreed to amend certain terms of the royalty agreement upon closing of the acquisition, including providing an option to Kinross to purchase a 25% interest in the Royalty for an amount equal to 25% of our purchase price of GBR, adjusted for inflation, at any time from the transaction closing date until the earlier of a construction decision for the Great Bear Project and 10 years after the transaction closing date. The acquisition has been unanimously approved by the boards of directors of both Royal Gold and GBR, and the board of directors of GBR has resolved to recommend that the shareholders of GBR approve the acquisition. All directors and officers of GBR have entered into support agreements to vote their shares in support of the acquisition representing, in aggregate, approximately 10.5% of the outstanding common shares of GBR. The arrangement agreement provides us a customary right to match any superior proposal and includes customary non-solicitation covenants. In addition, the arrangement agreement requires GBR to pay a termination fee of C $7.0 million (approximately US $6 million) to us if GBR terminates the arrangement agreement in certain circumstances. The transaction is subject to approval by the shareholders of GBR, and regulatory and court approvals. GBR expects to hold a special meeting of shareholders to approve the transaction on August 31, 2022, and subject to approval by shareholders, GBR will shortly thereafter seek approval by the Supreme Court of British Columbia of a plan of arrangement under the provisions of the Business Corporations Act (British Columbia). We expect the transaction to close during the quarter ending September 30, 2022. |
OPERATIONS, SUMMARY OF SIGNIF_2
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT 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 June 30, 2022 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2022. These interim unaudited consolidated financial statements should be read in conjunction with our Transition Report on Form 10-K for the six months ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022 (“Transition Report”). |
Recently Accounting Standards | Recent Accounting Standards We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements. |
STREAM AND ROYALTY INTERESTS,_2
STREAM AND ROYALTY INTERESTS, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
STREAM AND ROYALTY INTERESTS, NET | |
Schedule of stream and royalty interests | As of June 30, 2022 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (369,245) $ 421,390 Pueblo Viejo 610,404 (274,189) 336,215 Andacollo 388,182 (146,235) 241,947 Khoemac a 265,911 (8,055) 257,856 Rainy River 175,727 (56,351) 119,376 Wassa 146,475 (90,625) 55,850 Other 69,101 (8,371) 60,730 Total production stage stream interests 2,446,435 (953,071) 1,493,364 Production stage royalty interests: Voisey's Bay 205,724 (116,383) 89,341 Red Chris 116,187 (1,797) 114,390 Peñasquito 99,172 (55,399) 43,773 Cortez 80,681 (28,232) 52,449 Other 447,251 (392,962) 54,289 Total production stage royalty interests 949,015 (594,773) 354,242 Total production stage stream and royalty interests 3,395,450 (1,547,844) 1,847,606 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Côté 45,421 — 45,421 Other 62,796 — 62,796 Total development stage stream and royalty interests 120,255 — 120,255 Exploration stage stream interests: NX Gold 34,253 — 34,253 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 131,555 — 131,555 Total exploration stage stream and royalty interests 422,003 — 422,003 Total stream and royalty interests, net $ 3,937,708 $ (1,547,844) $ 2,389,864 As of December 31, 2021 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (336,921) $ 453,714 Pueblo Viejo 610,405 (260,321) 350,084 Andacollo 388,182 (139,035) 249,147 Khoemac a 239,411 (3,402) 236,009 Rainy River 175,727 (50,115) 125,612 Wassa 146,475 (84,915) 61,560 Other 69,101 (4,193) 64,908 Total production stage stream interests 2,419,936 (878,902) 1,541,034 Production stage royalty interests: Voisey's Bay 205,724 (113,602) 92,122 Red Chris 116,187 — 116,187 Peñasquito 99,172 (53,022) 46,150 Cortez 80,681 (23,225) 57,456 Other 447,799 (387,364) 60,435 Total production stage royalty interests 949,563 (577,213) 372,350 Total production stage stream and royalty interests 3,369,499 (1,456,115) 1,913,384 Development stage stream interests: Other 12,037 — 12,037 Development stage royalty interests: Côté 45,421 — 45,421 Other 54,755 — 54,755 Total development stage stream and royalty interests 112,213 — 112,213 Exploration stage stream interests: NX Gold 30,974 — 30,974 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 130,986 — 130,986 Total exploration stage stream and royalty interests 418,155 — 418,155 Total stream and royalty interests, net $ 3,899,867 $ (1,456,115) $ 2,443,752 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Stream revenue: Gold $ 75,325 $ 91,187 $ 152,827 $ 156,698 Silver 12,892 8,449 24,331 21,255 Copper 16,662 14,785 32,972 31,814 Total stream revenue $ 104,879 $ 114,421 $ 210,130 $ 209,767 Royalty revenue: Gold $ 28,974 $ 37,164 $ 66,890 $ 68,409 Silver 3,512 4,356 7,829 8,564 Copper 3,281 3,977 9,986 7,993 Other 5,795 8,109 13,961 15,883 Total royalty revenue $ 41,562 $ 53,606 $ 98,666 $ 100,849 Total revenue $ 146,441 $ 168,027 $ 308,796 $ 310,616 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Metal(s) 2022 2021 2022 2021 Stream revenue: Mount Milligan Gold & Copper $ 45,627 $ 43,802 $ 88,043 $ 77,606 Pueblo Viejo Gold & Silver 19,812 26,585 43,076 56,759 Andacollo Gold 11,721 27,868 27,395 40,889 Wassa Gold 8,248 7,129 15,451 15,902 Khoemac a Silver 5,203 — 7,591 — Other Gold & Silver 14,268 9,037 28,574 18,611 Total stream revenue $ 104,879 $ 114,421 $ 210,130 $ 209,767 Royalty revenue: Peñasquito Gold, Silver, Lead & Zinc $ 9,664 $ 13,399 $ 22,758 $ 26,527 Cortez Gold 8,138 13,739 24,852 22,348 Other Various 23,760 26,468 51,056 51,974 Total royalty revenue $ 41,562 $ 53,606 $ 98,666 $ 100,849 Total revenue $ 146,441 $ 168,027 $ 308,796 $ 310,616 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
STOCK-BASED COMPENSATION | |
Schedule of recognized stock-based compensation expense | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Restricted stock $ 1,201 $ 550 $ 2,356 $ 1,082 Performance stock 847 479 1,478 844 Stock appreciation rights 360 446 692 876 Stock options 10 18 16 35 Total stock-based compensation expense $ 2,418 $ 1,493 $ 4,542 $ 2,837 |
Schedule of stock-based compensation awards | Six Months Ended June 30, June 30, 2022 2021 (Number of shares) Performance stock (at maximum 200% attainment) 39,380 — Restricted stock 28,220 — Total equity awards granted 67,600 — |
Schedule of unrecognized compensation expense | As of June 30, 2022, 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) Restricted stock $ 8,347 2.4 Performance stock 6,039 2.2 Stock appreciation rights 964 1.1 Stock options 33 1.1 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 periods shown below (amounts in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Net income attributable to Royal Gold common stockholders $ 71,140 $ 81,677 $ 136,816 $ 135,705 Weighted-average shares for basic EPS 65,569,190 65,550,682 65,567,621 65,550,542 Effect of other dilutive securities 109,130 86,282 94,032 78,742 Weighted-average shares for diluted EPS 65,678,320 65,636,964 65,661,653 65,629,284 Basic EPS $ 1.08 $ 1.24 $ 2.08 $ 2.07 Diluted EPS $ 1.08 $ 1.24 $ 2.08 $ 2.07 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
INCOME TAXES | |
Components of income tax expense (benefit) | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Income tax benefit (expense) $ 5,911 $ (5,536) $ (9,393) $ (23,214) Effective tax rate 9.0% (6.3%) (6.4%) (14.6%) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
Schedule of geographical distribution of long-lived assets | As of June 30, 2022 As of December 31, 2021 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 540,766 $ 414,496 $ 955,262 $ 579,326 $ 412,419 $ 991,745 Chile 241,947 224,116 466,063 249,147 224,116 473,263 Dominican Republic 336,215 — 336,215 350,083 — 350,083 Africa 313,707 321 314,028 297,569 321 297,890 United States — 101,921 101,921 — 107,761 107,761 Mexico — 55,877 55,877 — 60,977 60,977 Australia — 26,861 26,861 — 27,496 27,496 Rest of world 107,020 26,617 133,637 107,920 26,617 134,537 Total $ 1,539,655 $ 850,209 $ 2,389,864 $ 1,584,045 $ 859,707 $ 2,443,752 |
Schedule of reportable segments for assessing performance | Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended June 30, 2022 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 104,879 $ 23,810 $ — $ 37,790 $ 43,279 Royalty interests 41,562 — 1,425 6,075 34,062 Total $ 146,441 $ 23,810 $ 1,425 $ 43,865 $ 77,341 Three Months Ended June 30, 2021 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 114,421 $ 24,668 $ — $ 38,746 $ 51,007 Royalty interests 53,606 — 2,152 9,190 42,264 Total $ 168,027 $ 24,668 $ 2,152 $ 47,936 $ 93,271 Six Months Ended June 30, 2022 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 210,130 $ 46,450 $ — $ 74,169 $ 89,511 Royalty interests 98,666 — 3,646 17,561 77,459 Total $ 308,796 $ 46,450 $ 3,646 $ 91,730 $ 166,970 Six Months Ended June 30, 2021 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 209,767 $ 46,137 $ — $ 71,341 $ 92,289 Royalty interests 100,849 — 3,987 17,797 79,065 Total $ 310,616 $ 46,137 $ 3,987 $ 89,138 $ 171,354 (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 June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Total segment gross profit $ 77,341 $ 93,271 $ 166,970 $ 171,354 Costs and expenses General and administrative expenses 9,312 7,212 18,243 14,143 Depreciation and amortization 124 92 246 186 Operating income 67,905 85,967 148,481 157,025 Fair value changes in equity securities (2,191) 1,957 (1,577) 3,859 Interest and other income 1,118 676 2,093 1,409 Interest and other expense (1,398) (1,145) (2,296) (2,965) Income before income taxes $ 65,434 $ 87,455 $ 146,701 $ 159,328 |
Schedule of revenue by reportable segment geographically distributed | Our revenue by reportable segment for the three and six months ended June 30, 2022 and 2021 is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Stream interests: Canada $ 54,591 $ 52,040 $ 106,077 $ 94,649 Dominican Republic 19,812 26,585 43,076 56,759 Africa 14,540 7,928 25,375 17,470 Chile 11,721 27,868 27,395 40,889 Rest of world 4,215 — 8,207 — Total stream interests $ 104,879 $ 114,421 $ 210,130 $ 209,767 Royalty interests: United States $ 16,845 $ 21,349 $ 41,202 $ 37,823 Mexico 11,940 16,191 27,821 31,461 Canada 5,773 9,601 16,551 18,213 Australia 4,040 4,249 8,086 8,610 Africa 114 559 430 1,307 Rest of world 2,850 1,657 4,576 3,435 Total royalty interests $ 41,562 $ 53,606 $ 98,666 $ 100,849 Total revenue $ 146,441 $ 168,027 $ 308,796 $ 310,616 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on recurring basis | As of June 30, 2022 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 155 $ 155 $ — $ 155 $ — (1) Other assets |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Mar. 24, 2022 | Mar. 14, 2022 | Feb. 23, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 22, 2022 | Dec. 31, 2021 | |
Acquisitions | |||||||
Acquisition consideration paid | $ 37,841 | $ 119,315 | |||||
Cost | 3,937,708 | $ 3,899,867 | |||||
Production stage stream interests | |||||||
Acquisitions | |||||||
Cost | 2,446,435 | 2,419,936 | |||||
Lawyers Project | |||||||
Acquisitions | |||||||
Net smelter return (NSR) (as a percent) | 0.50% | ||||||
Acquisition consideration paid | $ 8,000 | ||||||
Lawyers Project | Exploration stage royalty interests | |||||||
Acquisitions | |||||||
Cost | $ 8,000 | ||||||
Ranch Project | |||||||
Acquisitions | |||||||
Royalty that can be acquired (as a percent) | 2% | ||||||
Khoemacau | |||||||
Acquisitions | |||||||
Acquisition consideration paid | $ 16,500 | $ 10,000 | |||||
Variable loan receivable | 25,000 | ||||||
Interest receivable | 3,500 | ||||||
Silver production acquired (as a percent) | 100% | 93% | 90% | ||||
Khoemacau | Production stage stream interests | |||||||
Acquisitions | |||||||
Cost | $ 265,000 | $ 265,911 | $ 239,411 |
STREAM AND ROYALTY INTERESTS,_3
STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 14, 2022 | Dec. 31, 2021 |
Cost | $ 3,937,708 | $ 3,899,867 | |
Accumulated Depletion | (1,547,844) | (1,456,115) | |
Net | 2,389,864 | 2,443,752 | |
Production stage stream and royalty interests | |||
Cost | 3,395,450 | 3,369,499 | |
Accumulated Depletion | (1,547,844) | (1,456,115) | |
Net | 1,847,606 | 1,913,384 | |
Production stage stream interests | |||
Cost | 2,446,435 | 2,419,936 | |
Accumulated Depletion | (953,071) | (878,902) | |
Net | 1,493,364 | 1,541,034 | |
Production stage stream interests | Mt. Milligan | |||
Cost | 790,635 | 790,635 | |
Accumulated Depletion | (369,245) | (336,921) | |
Net | 421,390 | 453,714 | |
Production stage stream interests | Pueblo Viejo | |||
Cost | 610,404 | 610,405 | |
Accumulated Depletion | (274,189) | (260,321) | |
Net | 336,215 | 350,084 | |
Production stage stream interests | Andacollo | |||
Cost | 388,182 | 388,182 | |
Accumulated Depletion | (146,235) | (139,035) | |
Net | 241,947 | 249,147 | |
Production stage stream interests | Khoemacau | |||
Cost | 265,911 | $ 265,000 | 239,411 |
Accumulated Depletion | (8,055) | (3,402) | |
Net | 257,856 | 236,009 | |
Production stage stream interests | Rainy River | |||
Cost | 175,727 | 175,727 | |
Accumulated Depletion | (56,351) | (50,115) | |
Net | 119,376 | 125,612 | |
Production stage stream interests | Wassa | |||
Cost | 146,475 | 146,475 | |
Accumulated Depletion | (90,625) | (84,915) | |
Net | 55,850 | 61,560 | |
Production stage stream interests | Other. | |||
Cost | 69,101 | 69,101 | |
Accumulated Depletion | (8,371) | (4,193) | |
Net | 60,730 | 64,908 | |
Production stage royalty interests | |||
Cost | 949,015 | 949,563 | |
Accumulated Depletion | (594,773) | (577,213) | |
Net | 354,242 | 372,350 | |
Production stage royalty interests | Voisey's Bay | |||
Cost | 205,724 | 205,724 | |
Accumulated Depletion | (116,383) | (113,602) | |
Net | 89,341 | 92,122 | |
Production stage royalty interests | Red Chris | |||
Cost | 116,187 | 116,187 | |
Accumulated Depletion | (1,797) | ||
Net | 114,390 | 116,187 | |
Production stage royalty interests | Penasquito | |||
Cost | 99,172 | 99,172 | |
Accumulated Depletion | (55,399) | (53,022) | |
Net | 43,773 | 46,150 | |
Production stage royalty interests | Cortez | |||
Cost | 80,681 | 80,681 | |
Accumulated Depletion | (28,232) | (23,225) | |
Net | 52,449 | 57,456 | |
Production stage royalty interests | Other. | |||
Cost | 447,251 | 447,799 | |
Accumulated Depletion | (392,962) | (387,364) | |
Net | 54,289 | 60,435 | |
Development stage stream and royalty interests | |||
Cost | 120,255 | 112,213 | |
Net | 120,255 | 112,213 | |
Development stage stream interests | Other. | |||
Cost | 12,038 | 12,037 | |
Net | 12,038 | 12,037 | |
Development stage royalty interests | Cote | |||
Cost | 45,421 | 45,421 | |
Net | 45,421 | 45,421 | |
Development stage royalty interests | Other. | |||
Cost | 62,796 | 54,755 | |
Net | 62,796 | 54,755 | |
Exploration stage stream and royalty interests | |||
Cost | 422,003 | 418,155 | |
Net | 422,003 | 418,155 | |
Exploration stage stream interests | NX Gold | |||
Cost | 30,974 | ||
Net | 30,974 | ||
Exploration stage royalty interests | Pascua - Lama | |||
Cost | 177,690 | 177,690 | |
Net | 177,690 | 177,690 | |
Exploration stage royalty interests | Red Chris | |||
Cost | 48,895 | 48,895 | |
Net | 48,895 | 48,895 | |
Exploration stage royalty interests | Cote | |||
Cost | 29,610 | 29,610 | |
Net | 29,610 | 29,610 | |
Exploration stage royalty interests | NX Gold | |||
Cost | 34,253 | ||
Net | 34,253 | ||
Exploration stage royalty interests | Other. | |||
Cost | 131,555 | 130,986 | |
Net | $ 131,555 | $ 130,986 |
MARKETABLE EQUITY SECURITIES (D
MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Marketable Securities | |||||
Increase (decrease) in fair value of equity securities | $ (2.2) | $ 2 | $ (1.6) | $ 3.9 | |
Investment value | $ 0.2 | $ 0.2 | $ 1.7 | ||
TriStar | |||||
Marketable Securities | |||||
Stock that can be purchased by warrants (in shares) | 19,640,000 | 19,640,000 |
DEBT (Details)
DEBT (Details) - Credit Facility - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Long-term debt disclosure | ||||
Outstanding amount under credit facility | $ 0 | $ 0 | ||
Interest expense recognized | $ 0.2 | $ 0.3 | $ 0.5 | $ 1.1 |
REVENUE (Details)
REVENUE (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Number of reportable segments | 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 | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue | ||||
Revenue | $ 146,441 | $ 168,027 | $ 308,796 | $ 310,616 |
Stream interests | ||||
Disaggregation of Revenue | ||||
Revenue | 104,879 | 114,421 | 210,130 | 209,767 |
Stream interests | Gold | ||||
Disaggregation of Revenue | ||||
Revenue | 75,325 | 91,187 | 152,827 | 156,698 |
Stream interests | Silver | ||||
Disaggregation of Revenue | ||||
Revenue | 12,892 | 8,449 | 24,331 | 21,255 |
Stream interests | Copper | ||||
Disaggregation of Revenue | ||||
Revenue | 16,662 | 14,785 | 32,972 | 31,814 |
Royalty interests | ||||
Disaggregation of Revenue | ||||
Revenue | 41,562 | 53,606 | 98,666 | 100,849 |
Royalty interests | Gold | ||||
Disaggregation of Revenue | ||||
Revenue | 28,974 | 37,164 | 66,890 | 68,409 |
Royalty interests | Silver | ||||
Disaggregation of Revenue | ||||
Revenue | 3,512 | 4,356 | 7,829 | 8,564 |
Royalty interests | Copper | ||||
Disaggregation of Revenue | ||||
Revenue | 3,281 | 3,977 | 9,986 | 7,993 |
Royalty interests | Other | ||||
Disaggregation of Revenue | ||||
Revenue | $ 5,795 | $ 8,109 | $ 13,961 | $ 15,883 |
REVENUE - Property Disaggregati
REVENUE - Property Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue | ||||
Revenue | $ 146,441 | $ 168,027 | $ 308,796 | $ 310,616 |
Stream interests | ||||
Disaggregation of Revenue | ||||
Revenue | 104,879 | 114,421 | 210,130 | 209,767 |
Stream interests | Mt. Milligan | ||||
Disaggregation of Revenue | ||||
Revenue | 45,627 | 43,802 | 88,043 | 77,606 |
Stream interests | Pueblo Viejo | ||||
Disaggregation of Revenue | ||||
Revenue | 19,812 | 26,585 | 43,076 | 56,759 |
Stream interests | Andacollo | ||||
Disaggregation of Revenue | ||||
Revenue | 11,721 | 27,868 | 27,395 | 40,889 |
Stream interests | Wassa | ||||
Disaggregation of Revenue | ||||
Revenue | 8,248 | 7,129 | 15,451 | 15,902 |
Stream interests | Khoemacau | ||||
Disaggregation of Revenue | ||||
Revenue | 5,203 | 7,591 | ||
Stream interests | Other. | ||||
Disaggregation of Revenue | ||||
Revenue | 14,268 | 9,037 | 28,574 | 18,611 |
Royalty interests | ||||
Disaggregation of Revenue | ||||
Revenue | 41,562 | 53,606 | 98,666 | 100,849 |
Royalty interests | Penasquito | ||||
Disaggregation of Revenue | ||||
Revenue | 9,664 | 13,399 | 22,758 | 26,527 |
Royalty interests | Cortez | ||||
Disaggregation of Revenue | ||||
Revenue | 8,138 | 13,739 | 24,852 | 22,348 |
Royalty interests | Other. | ||||
Disaggregation of Revenue | ||||
Revenue | $ 23,760 | $ 26,468 | $ 51,056 | $ 51,974 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-based compensation | ||||
Stock-based compensation expense | $ 2,418 | $ 1,493 | $ 4,542 | $ 2,837 |
Other than options granted (in shares) | 0 | 0 | 67,600 | |
Restricted stock | ||||
Stock-based compensation | ||||
Stock-based compensation expense | $ 1,201 | $ 550 | $ 2,356 | 1,082 |
Other than options granted (in shares) | 28,220 | |||
Unrecognized compensation expense | 8,347 | $ 8,347 | ||
Weighted-average recognition period | 2 years 4 months 24 days | |||
Performance stock | ||||
Stock-based compensation | ||||
Stock-based compensation expense | $ 847 | 479 | $ 1,478 | 844 |
Other than options granted (in shares) | 39,380 | |||
Earn out basis if all goals are met (as a percent) | 200% | 200% | ||
Unrecognized compensation expense | $ 6,039 | $ 6,039 | ||
Weighted-average recognition period | 2 years 2 months 12 days | |||
Stock appreciation rights | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 360 | 446 | $ 692 | 876 |
Unrecognized compensation expense | 964 | $ 964 | ||
Weighted-average recognition period | 1 year 1 month 6 days | |||
Stock options | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 10 | $ 18 | $ 16 | $ 35 |
Unrecognized compensation expense | $ 33 | $ 33 | ||
Weighted-average recognition period | 1 year 1 month 6 days |
EARNINGS PER SHARE ("EPS") (Det
EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
EARNINGS PER SHARE ("EPS") | ||||
Net income attributable to Royal Gold common stockholders | $ 71,140 | $ 81,677 | $ 136,816 | $ 135,705 |
Weighted-average shares for basic EPS | 65,569,190 | 65,550,682 | 65,567,621 | 65,550,542 |
Effect of other dilutive securities | 109,130 | 86,282 | 94,032 | 78,742 |
Weighted-average shares for diluted EPS | 65,678,320 | 65,636,964 | 65,661,653 | 65,629,284 |
Basic EPS | $ 1.08 | $ 1.24 | $ 2.08 | $ 2.07 |
Diluted EPS | $ 1.08 | $ 1.24 | $ 2.08 | $ 2.07 |
INCOME TAXES - Quarterly (Detai
INCOME TAXES - Quarterly (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INCOME TAXES | ||||
Income tax benefit (expense) | $ 5,911 | $ (5,536) | $ (9,393) | $ (23,214) |
Effective tax rate (as a percent) | 9% | (6.30%) | (6.40%) | (14.60%) |
Discrete tax benefit | $ 18,800 | $ 11,500 | $ 18,800 | $ 11,500 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Number of reportable segments | segment | 2 | ||||
Stream and royalty interest | $ 2,389,864 | $ 2,389,864 | $ 2,443,752 | ||
Revenue | 146,441 | $ 168,027 | 308,796 | $ 310,616 | |
Cost of sales | 23,810 | 24,668 | 46,450 | 46,137 | |
Production taxes | 1,425 | 2,152 | 3,646 | 3,987 | |
Depletion | 43,865 | 47,936 | 91,730 | 89,138 | |
Total segment gross profit | 77,341 | 93,271 | 166,970 | 171,354 | |
Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 955,262 | 955,262 | 991,745 | ||
Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 466,063 | 466,063 | 473,263 | ||
Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 336,215 | 336,215 | 350,083 | ||
Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 314,028 | 314,028 | 297,890 | ||
United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 101,921 | 101,921 | 107,761 | ||
Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 55,877 | 55,877 | 60,977 | ||
Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 26,861 | 26,861 | 27,496 | ||
Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 133,637 | 133,637 | 134,537 | ||
Stream interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 1,539,655 | 1,539,655 | 1,584,045 | ||
Revenue | 104,879 | 114,421 | 210,130 | 209,767 | |
Cost of sales | 23,810 | 24,668 | 46,450 | 46,137 | |
Depletion | 37,790 | 38,746 | 74,169 | 71,341 | |
Total segment gross profit | 43,279 | 51,007 | 89,511 | 92,289 | |
Stream interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 540,766 | 540,766 | 579,326 | ||
Revenue | 54,591 | 52,040 | 106,077 | 94,649 | |
Stream interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 241,947 | 241,947 | 249,147 | ||
Revenue | 11,721 | 27,868 | 27,395 | 40,889 | |
Stream interests | Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 336,215 | 336,215 | 350,083 | ||
Revenue | 19,812 | 26,585 | 43,076 | 56,759 | |
Stream interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 313,707 | 313,707 | 297,569 | ||
Revenue | 14,540 | 7,928 | 25,375 | 17,470 | |
Stream interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 107,020 | 107,020 | 107,920 | ||
Revenue | 4,215 | 8,207 | |||
Royalty interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 850,209 | 850,209 | 859,707 | ||
Revenue | 41,562 | 53,606 | 98,666 | 100,849 | |
Production taxes | 1,425 | 2,152 | 3,646 | 3,987 | |
Depletion | 6,075 | 9,190 | 17,561 | 17,797 | |
Total segment gross profit | 34,062 | 42,264 | 77,459 | 79,065 | |
Royalty interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 414,496 | 414,496 | 412,419 | ||
Revenue | 5,773 | 9,601 | 16,551 | 18,213 | |
Royalty interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 224,116 | 224,116 | 224,116 | ||
Royalty interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 321 | 321 | 321 | ||
Revenue | 114 | 559 | 430 | 1,307 | |
Royalty interests | United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 101,921 | 101,921 | 107,761 | ||
Revenue | 16,845 | 21,349 | 41,202 | 37,823 | |
Royalty interests | Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 55,877 | 55,877 | 60,977 | ||
Revenue | 11,940 | 16,191 | 27,821 | 31,461 | |
Royalty interests | Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 26,861 | 26,861 | 27,496 | ||
Revenue | 4,040 | 4,249 | 8,086 | 8,610 | |
Royalty interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 26,617 | 26,617 | $ 26,617 | ||
Revenue | $ 2,850 | $ 1,657 | $ 4,576 | $ 3,435 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
SEGMENT INFORMATION | ||||
Total segment gross profit | $ 77,341 | $ 93,271 | $ 166,970 | $ 171,354 |
Costs and expenses | ||||
General and administrative expenses | 9,312 | 7,212 | 18,243 | 14,143 |
Depreciation and amortization | 124 | 92 | 246 | 186 |
Operating income | 67,905 | 85,967 | 148,481 | 157,025 |
Fair value changes in equity securities | (2,191) | 1,957 | (1,577) | 3,859 |
Interest and other income | 1,118 | 676 | 2,093 | 1,409 |
Interest and other expense | (1,398) | (1,145) | (2,296) | (2,965) |
Income before income taxes | $ 65,434 | $ 87,455 | $ 146,701 | $ 159,328 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Recurring $ in Thousands | Jun. 30, 2022 USD ($) |
Reported value | |
Assets: | |
Marketable equity securities | $ 155 |
Fair value | |
Assets: | |
Marketable equity securities | 155 |
Level 2 | |
Assets: | |
Marketable equity securities | $ 155 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 22, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies | |||
Payment to acquire interest | $ 37,841 | $ 119,315 | |
Ilovica | |||
Commitments and Contingencies | |||
Conditional funding from acquisition | 163,750 | ||
NX Gold | |||
Commitments and Contingencies | |||
Payment to acquire interest | $ 3,200 | ||
Advance payments | $ 6,800 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, oz in Millions, $ in Millions, $ in Millions | Aug. 02, 2022 USD ($) oz | Jul. 11, 2022 USD ($) | Jul. 11, 2022 CAD ($) $ / shares | Jul. 31, 2022 USD ($) | Jun. 30, 2022 oz |
Cortez Royalty | |||||
Subsequent events | |||||
Gold delivered (in ounces) | oz | 14.8 | ||||
Subsequent Event | GBR | |||||
Subsequent events | |||||
Consideration (in dollars per share) | $ / shares | $ 6.65 | ||||
Cash consideration | $ 155 | $ 199.5 | |||
Net smelter return (NSR) (as a percent) | 2% | 2% | |||
Option to purchase royalty interest (as a percent) | 25% | 25% | |||
Option purchase price based on original price (as a percent) | 25% | 25% | |||
Threshold period for option purchase | 10 years | 10 years | |||
Shareholders supporting acquisition (as a percent) | 10.50% | 10.50% | |||
Termination fee | $ 6 | $ 7 | |||
Subsequent Event | Cortez Royalty | |||||
Subsequent events | |||||
Cash paid for acquisition of royalty interests | $ 525 | ||||
GSR royalty (as a percent) | 1.20% | ||||
Production payable (as a percent) | 40% | ||||
Subsequent Event | Cortez Royalty | Credit Facility | |||||
Subsequent events | |||||
Principal amount of debt issued | $ 500 | ||||
Available under the revolving credit facility | $ 500 | ||||
Effective interest rate (as percent) | 5.60% | ||||
Subsequent Event | Cortez Royalty | Minimum | |||||
Subsequent events | |||||
GSR royalty (as a percent) | 0% | ||||
Purchase price per ounce of gold (as a percent) | 400% | ||||
Gold delivered (in ounces) | oz | 15 | ||||
Subsequent Event | Cortez Royalty | Maximum | |||||
Subsequent events | |||||
GSR royalty (as a percent) | 3% | ||||
Purchase price per ounce of gold (as a percent) | 900% | ||||
Subsequent Event | Cortez Royalty | Barrick | Nevada Gold Mines | |||||
Subsequent events | |||||
Ownership percentage held | 61.50% | ||||
Subsequent Event | Cortez Royalty | Barrick | Fourmile | |||||
Subsequent events | |||||
Ownership percentage held | 100% | ||||
Subsequent Event | Cortez Royalty | Newmont | Nevada Gold Mines | |||||
Subsequent events | |||||
Ownership percentage held | 38.50% |