Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
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, $0.01 par value | |
Trading Symbol | RGLD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Shares Outstanding | 65,688,734 | |
Entity Central Index Key | 0000085535 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and equivalents | $ 106,157 | $ 118,586 |
Royalty receivables | 36,458 | 49,405 |
Income tax receivable | 9,602 | 3,066 |
Stream inventory | 10,657 | 12,656 |
Prepaid expenses and other | 2,375 | 2,120 |
Total current assets | 165,249 | 185,833 |
Stream and royalty interests, net (Note 2) | 3,155,561 | 3,237,402 |
Other assets | 118,899 | 111,287 |
Total assets | 3,439,709 | 3,534,522 |
LIABILITIES | ||
Accounts payable | 8,552 | 6,686 |
Dividends payable | 24,646 | 24,627 |
Income tax payable | 15,603 | 16,065 |
Other current liabilities | 14,267 | 16,209 |
Total current liabilities | 63,068 | 63,587 |
Debt (Note 4) | 395,529 | 571,572 |
Deferred tax liabilities | 136,136 | 138,156 |
Other liabilities | 9,083 | 7,738 |
Total liabilities | 603,816 | 781,053 |
Commitments and contingencies (Note 11) | ||
EQUITY | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued | ||
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,609,736 and 65,592,597 shares outstanding, respectively | 656 | 656 |
Additional paid-in capital | 2,217,559 | 2,213,123 |
Accumulated earnings | 605,347 | 527,314 |
Total Royal Gold stockholders' equity | 2,823,562 | 2,741,093 |
Non-controlling interests | 12,331 | 12,376 |
Total equity | 2,835,893 | 2,753,469 |
Total liabilities and equity | $ 3,439,709 | $ 3,534,522 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 65,609,736 | 65,592,597 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Operations and Comprehensive Income | ||||
Revenue (Note 5) | $ 144,042 | $ 146,441 | $ 314,434 | $ 308,796 |
Costs and expenses | ||||
Cost of sales (excludes depreciation, depletion and amortization) | 23,367 | 23,810 | 48,387 | 46,450 |
General and administrative | 9,093 | 9,312 | 20,093 | 18,243 |
Production taxes | 1,274 | 1,425 | 3,263 | 3,646 |
Depreciation, depletion and amortization | 38,412 | 43,989 | 84,741 | 91,976 |
Total costs and expenses | 72,146 | 78,536 | 156,484 | 160,315 |
Operating income | 71,896 | 67,905 | 157,950 | 148,481 |
Fair value changes in equity securities | (509) | (2,191) | 291 | (1,577) |
Interest and other income | 2,650 | 1,118 | 4,912 | 2,093 |
Interest and other expense | (8,408) | (1,398) | (17,582) | (2,296) |
Income before income taxes | 65,629 | 65,434 | 145,571 | 146,701 |
Income tax (expense) benefit | (2,029) | 5,911 | (17,900) | (9,393) |
Net income and comprehensive income | 63,600 | 71,345 | 127,671 | 137,308 |
Net income and comprehensive income attributable to non-controlling interests | (151) | (205) | (347) | (492) |
Net income and comprehensive income attributable to Royal Gold common stockholders | $ 63,449 | $ 71,140 | $ 127,324 | $ 136,816 |
Net income per share attributable to Royal Gold common stockholders: | ||||
Basic earnings per share | $ 0.97 | $ 1.08 | $ 1.94 | $ 2.08 |
Basic weighted average shares outstanding | 65,605,391 | 65,569,190 | 65,600,213 | 65,567,621 |
Diluted earnings per share | $ 0.97 | $ 1.08 | $ 1.93 | $ 2.08 |
Diluted weighted average shares outstanding | 65,762,903 | 65,678,320 | 65,736,028 | 65,661,653 |
Cash dividends declared per common share | $ 0.375 | $ 0.35 | $ 0.75 | $ 0.70 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Accumulated Earnings | Non-controlling Interests | Total |
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 | ||||
Balance at Dec. 31, 2022 | $ 656 | 2,213,123 | 527,314 | 12,376 | 2,753,469 |
Balance (in shares) at Dec. 31, 2022 | 65,592,597 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 4,436 | 4,436 | |||
Stock-based compensation and related share issuances (in shares) | 17,139 | ||||
Distributions to non-controlling interests | (392) | (392) | |||
Net income and comprehensive income | 127,324 | 347 | 127,671 | ||
Dividends declared | (49,291) | (49,291) | |||
Balance at Jun. 30, 2023 | $ 656 | 2,217,559 | 605,347 | 12,331 | 2,835,893 |
Balance (in shares) at Jun. 30, 2023 | 65,609,736 | ||||
Balance at Mar. 31, 2023 | $ 656 | 2,215,362 | 566,545 | 12,369 | 2,794,932 |
Balance (in shares) at Mar. 31, 2023 | 65,599,348 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 2,197 | 2,197 | |||
Stock-based compensation and related share issuances (in shares) | 10,388 | ||||
Distributions to non-controlling interests | (189) | (189) | |||
Net income and comprehensive income | 63,449 | 151 | 63,600 | ||
Dividends declared | (24,647) | (24,647) | |||
Balance at Jun. 30, 2023 | $ 656 | $ 2,217,559 | $ 605,347 | $ 12,331 | $ 2,835,893 |
Balance (in shares) at Jun. 30, 2023 | 65,609,736 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||
Net income and comprehensive income | $ 127,671 | $ 137,308 | |||
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | $ 38,412 | $ 43,989 | 84,741 | 91,976 | |
Non-cash employee stock compensation expense | 4,579 | 4,542 | |||
Fair value changes in equity securities | 509 | 2,191 | (291) | 1,577 | $ 1,503 |
Deferred tax benefit | (7,139) | (28,114) | |||
Other | 445 | 491 | |||
Changes in assets and liabilities: | |||||
Royalty receivables | 12,948 | 17,220 | |||
Stream inventory | 1,998 | (1,564) | |||
Income tax receivable | (6,536) | (2,797) | |||
Prepaid expenses and other assets | (2,641) | (1,359) | |||
Accounts payable | 1,866 | 592 | |||
Income tax payable | (462) | 4,976 | |||
Other liabilities | (597) | (3,519) | |||
Net cash provided by operating activities | 216,582 | 221,329 | |||
Cash flows from investing activities: | |||||
Acquisition of stream and royalty interests | (2,670) | (37,841) | |||
Sale of equity securities | 107 | ||||
Other | (258) | (36) | |||
Net cash used in investing activities | (2,821) | (37,877) | |||
Cash flows from financing activities: | |||||
Repayment of debt | (175,000) | ||||
Debt issuance costs | (1,533) | ||||
Net payments from issuance of common stock | 253 | 108 | |||
Common stock dividends | (49,271) | (45,953) | |||
Other | (639) | (541) | |||
Net cash used in financing activities | (226,190) | (46,386) | |||
Net (decrease) increase in cash and equivalents | (12,429) | 137,066 | |||
Cash and equivalents at beginning of period | 118,586 | 143,551 | 143,551 | ||
Cash and equivalents at end of period | $ 106,157 | $ 280,617 | $ 106,157 | $ 280,617 | $ 118,586 |
OPERATIONS, SUMMARY OF SIGNIFIC
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2023. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 16, 2023 (“2022 10-K”). 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, N
STREAM AND ROYALTY INTERESTS, NET | 6 Months Ended |
Jun. 30, 2023 | |
STREAM AND ROYALTY INTERESTS, NET | |
STREAM AND ROYALTY INTERESTS, NET | 2. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of June 30, 2023 and December 31, 2022. As of June 30, 2023 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (413,284) $ 377,351 Pueblo Viejo 610,404 (295,407) 314,997 Andacollo 388,182 (157,761) 230,421 Khoemac a 265,911 (29,275) 236,636 Rainy River 175,727 (68,476) 107,251 Other 232,703 (121,328) 111,375 Total production stage stream interests 2,463,562 (1,085,531) 1,378,031 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 (47,402) 306,448 Voisey's Bay 205,724 (119,356) 86,368 Red Chris 116,187 (3,758) 112,429 Peñasquito 99,172 (59,407) 39,765 Other 447,687 (403,171) 44,516 Total production stage royalty interests 1,222,620 (633,094) 589,526 Total production stage stream and royalty interests 3,686,182 (1,718,625) 1,967,557 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Côté 45,421 — 45,421 Other 81,510 — 81,510 Total development stage stream and royalty interests 138,969 — 138,969 Exploration stage stream interests: Xavantina 19,565 — 19,565 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,471 — 456,471 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 107,698 — 107,698 Total exploration stage stream and royalty interests 1,049,035 — 1,049,035 Total stream and royalty interests, net $ 4,874,186 $ (1,718,625) $ 3,155,561 As of December 31, 2022 (Amounts in thousands): Cost Accumulated Depletion Impairments Net Production stage stream interests: Mount Milligan $ 790,635 $ (392,804) $ — $ 397,831 Pueblo Viejo 610,404 (289,537) — 320,867 Andacollo 388,182 (151,870) — 236,312 Khoemac a 265,911 (15,905) — 250,006 Rainy River 175,727 (61,601) — 114,126 Other 215,576 (110,711) — 104,865 Total production stage stream interests 2,446,435 (1,022,428) — 1,424,007 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,772 (35,276) — 318,496 Voisey's Bay 205,724 (118,327) — 87,397 Red Chris 116,187 (1,797) — 114,390 Peñasquito 99,172 (57,772) — 41,400 Other 447,535 (398,513) — 49,022 Total production stage royalty interests 1,222,390 (611,685) — 610,705 Total production stage stream and royalty interests 3,668,825 (1,634,113) — 2,034,712 Development stage stream interests: Other 12,038 — — 12,038 Development stage royalty interests: Côté 45,421 — — 45,421 Other 74,225 — — 74,225 Total development stage stream and royalty interests 131,684 — — 131,684 Exploration stage stream interests: Xavantina 34,253 — — 34,253 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,318 — — 456,318 Great Bear 209,106 — — 209,106 Pascua-Lama 177,690 — — 177,690 Red Chris 48,895 — — 48,895 Côté 29,610 — — 29,610 Other 119,421 — (4,287) 115,134 Total exploration stage royalty interests 1,075,293 — (4,287) 1,071,006 Total stream and royalty interests, net $ 4,875,802 $ (1,634,113) $ (4,287) $ 3,237,402 |
MARKETABLE EQUITY SECURITIES
MARKETABLE EQUITY SECURITIES | 6 Months Ended |
Jun. 30, 2023 | |
MARKETABLE EQUITY SECURITIES | |
MARKETABLE EQUITY SECURITIES | 3. MARKETABLE EQUITY SECURITIES As of June 30, 2023, our marketable equity securities include warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc and 250,000 common shares of Goldon Resources Ltd. Our marketable equity securities are measured at fair value (Note 10) each reporting period with any changes in fair value recognized in net income (amounts in thousands). June 30, December 31, 2023 2022 Carrying value of marketable securities (1) $ 547 $ 373 Change in fair value of marketable securities $ (509) $ (1,503) (1) Other Assets |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
DEBT | |
DEBT | 4. DEBT Our debt as of June 30, 2023 and December 31, 2022 consists of the following (amounts in thousands): As of June 30, 2023 As of December 31, 2022 Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Revolving credit facility $ 400,000 $ (4,471) $ 395,529 $ 575,000 $ (3,428) $ 571,572 Total debt $ 400,000 $ (4,471) $ 395,529 $ 575,000 $ (3,428) $ 571,572 Revolving credit facility On March 6, 2023, we repaid $75 million and on June 6, 2023, we repaid $100 million of outstanding borrowings on our revolving credit facility. On June 28, 2023, we entered into a fifth amendment to our revolving credit facility dated as of June 2, 2017, as amended. The fifth amendment extended the scheduled maturity date from July 7, 2026 to June 28, 2028, replaced LIBOR with Secured Overnight Financing Rate (“Term SOFR”) as a benchmark interest rate and made certain other administrative changes to the existing revolving credit facility. As of June 30, 2023, we had $400 million outstanding and $600 million available under our revolving credit facility. The interest rate on borrowings under our revolving credit facility as of June 30, 2023, was LIBOR plus 1.20% for an all-in rate of 6.7%. Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $7.8 million and $16.3 million for the three and six months ended June 30, 2023, respectively, and $0.2 million and $0.5 million for the three and six months ended June 30, 2022, respectively. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of June 30, 2023. We may repay any borrowings under our revolving credit facility at any time without premium or penalty. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2023 | |
REVENUE | |
REVENUE | 5. 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 2022 10-K. For the three months ended June 30, 2023, royalty revenue that was estimated or was attributable to metal production for a period prior to June 30, 2023, 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 9. 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, 2023 2022 2023 2022 Stream revenue: Gold $ 80,227 $ 75,325 $ 158,856 $ 152,827 Silver 19,230 12,892 37,539 24,331 Copper 6,558 16,662 24,610 32,972 Total stream revenue $ 106,015 $ 104,879 $ 221,005 $ 210,130 Royalty revenue: Gold $ 30,169 $ 28,974 $ 73,037 $ 66,890 Silver 2,721 3,512 5,667 7,829 Copper 1,572 3,281 6,630 9,986 Other 3,565 5,795 8,095 13,961 Total royalty revenue $ 38,027 $ 41,562 $ 93,429 $ 98,666 Total revenue $ 144,042 $ 146,441 $ 314,434 $ 308,796 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) 2023 2022 2023 2022 Stream revenue: Mount Milligan Gold & Copper $ 41,208 $ 45,627 $ 87,863 $ 88,043 Pueblo Viejo Gold & Silver 23,540 19,812 45,898 43,076 Khoemac a Silver 8,881 5,202 18,035 7,591 Andacollo Gold 7,823 11,721 20,757 27,395 Other Gold & Silver 24,563 22,517 48,452 44,025 Total stream revenue $ 106,015 $ 104,879 $ 221,005 $ 210,130 Royalty revenue: Cortez Legacy Zone Gold $ 14,305 $ 8,138 $ 37,393 $ 24,852 Cortez CC Zone Gold 3,520 — 6,726 — Peñasquito Gold, Silver, Lead & Zinc 6,105 9,664 13,538 22,758 Other Various 14,097 23,760 35,772 51,056 Total royalty revenue $ 38,027 $ 41,562 $ 93,429 $ 98,666 Total revenue $ 144,042 $ 146,441 $ 314,434 $ 308,796 Please refer to Note 9 for the geographical distribution of our revenue by reportable segment. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 6. 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, 2023 2022 2023 2022 Restricted stock $ 1,540 $ 1,201 $ 3,154 $ 2,356 Stock appreciation rights 212 360 417 692 Performance stock 183 847 993 1,478 Stock options 8 10 15 16 Total stock-based compensation expense $ 1,943 $ 2,418 $ 4,579 $ 4,542 Stock-based compensation expense is included within General and administrative During the three and six months ended June 30, 2023 and 2022, we granted the following stock-based compensation awards: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 (Number of shares) (Number of shares) Performance stock (at maximum 200% attainment) — — 82,360 39,380 Restricted Stock — — 56,530 28,220 Total equity awards granted — — 138,890 67,600 As of June 30, 2023, 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 $ 9,880 2.1 Performance stock 7,666 2.2 Stock appreciation rights 111 0.1 Stock options 4 0.1 |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE ("EPS") | |
EARNINGS PER SHARE ("EPS") | 7. 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 table summarizes 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, 2023 2022 2023 2022 Net income attributable to Royal Gold common stockholders $ 63,449 $ 71,140 $ 127,324 $ 136,816 Weighted-average shares for basic EPS 65,605,391 65,569,190 65,600,213 65,567,621 Effect of other dilutive securities 157,512 109,130 135,815 94,032 Weighted-average shares for diluted EPS 65,762,903 65,678,320 65,736,028 65,661,653 Basic EPS $ 0.97 $ 1.08 $ 1.94 $ 2.08 Diluted EPS $ 0.97 $ 1.08 $ 1.93 $ 2.08 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | 8. INCOME TAXES The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 Income tax expense (benefit) $ 2,029 $ (5,911) $ 17,900 $ 9,393 Effective tax rate 3.1% (9.0%) 12.3% 6.4% The effective tax rates for the three and six months ended June 30, 2023, and June 30, 2022, included discrete income tax benefits of $8.5 million and $18.8 million, respectively, attributable to the release of a valuation allowance on certain deferred tax assets, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 9. 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, 2023 As of December 31, 2022 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 484,602 $ 616,920 $ 1,101,522 $ 511,957 $ 620,549 $ 1,132,506 Dominican Republic 314,998 — 314,998 320,867 — 320,867 Africa 280,517 321 280,838 299,722 321 300,043 Chile 230,421 224,116 454,537 236,312 224,116 460,428 United States — 810,487 810,487 — 823,203 823,203 Mexico — 45,703 45,703 — 50,156 50,156 Australia — 21,743 21,743 — 22,120 22,120 Rest of world 99,095 26,638 125,733 101,440 26,639 128,079 Total $ 1,409,633 $ 1,745,928 $ 3,155,561 $ 1,470,298 $ 1,767,104 $ 3,237,402 Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended June 30, 2023 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 106,015 $ 23,367 $ — $ 29,352 $ 53,296 Royalty interests 38,027 — 1,274 8,945 27,808 Total $ 144,042 $ 23,367 $ 1,274 $ 38,297 $ 81,104 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 Six Months Ended June 30, 2023 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 221,005 $ 48,387 $ — $ 63,104 $ 109,514 Royalty interests 93,429 — 3,263 21,408 68,758 Total $ 314,434 $ 48,387 $ 3,263 $ 84,512 $ 178,272 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 (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, 2023 2022 2023 2022 Total segment gross profit $ 81,104 $ 77,341 $ 178,272 $ 166,970 Costs and expenses General and administrative expenses 9,093 9,312 20,093 18,243 Depreciation and amortization 115 124 229 246 Operating income 71,896 67,905 157,950 148,481 Fair value changes in equity securities (509) (2,191) 291 (1,577) Interest and other income 2,650 1,118 4,912 2,093 Interest and other expense (8,408) (1,398) (17,582) (2,296) Income before income taxes $ 65,629 $ 65,434 $ 145,571 $ 146,701 Our revenue by reportable segment for the three and six months ended June 30, 2023 and 2022 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, 2023 2022 2023 2022 Stream interests: Canada $ 50,848 $ 54,591 $ 107,829 $ 106,077 Dominican Republic 23,540 19,812 45,899 43,076 Africa 18,763 14,540 36,301 25,375 Chile 7,823 11,721 20,757 27,395 Rest of world 5,041 4,215 10,219 8,207 Total stream interests $ 106,015 $ 104,879 $ 221,005 $ 210,130 Royalty interests: United States $ 23,265 $ 16,845 $ 56,845 $ 41,202 Mexico 8,155 11,940 17,449 27,821 Australia 5,081 4,040 9,180 8,086 Canada (97) 5,773 6,495 16,551 Africa — 114 — 430 Rest of world 1,623 2,850 3,460 4,576 Total royalty interests $ 38,027 $ 41,562 $ 93,429 $ 98,666 Total revenue $ 144,042 $ 146,441 $ 314,434 $ 308,796 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 10. 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, 2023 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 547 $ 547 $ 11 $ 536 $ — As of December 31, 2022 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 373 $ 373 $ 121 $ 252 $ — (1) Other assets Our marketable 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 TriStar Gold Inc. warrants (Note 3) 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 4) approximates fair value as of June 30, 2023. As of June 30, 2023, 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, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES Xavantina Exploration Payment On April 20, 2023, we made a $2.4 million advance payment to a subsidiary of Ero Copper Corp. (“Ero”) as part of our commitment to support the achievement of success-based targets related to regional exploration and mineral resource additions. This payment was recorded to exploration stage stream interests within Stream and royalty interests, net Ilovica Gold Stream Acquisition As of June 30, 2023, 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. |
OPERATIONS, SUMMARY OF SIGNIF_2
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2023. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 16, 2023 (“2022 10-K”). |
Recent 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, 2023 | |
STREAM AND ROYALTY INTERESTS, NET | |
Schedule of stream and royalty interests | As of June 30, 2023 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (413,284) $ 377,351 Pueblo Viejo 610,404 (295,407) 314,997 Andacollo 388,182 (157,761) 230,421 Khoemac a 265,911 (29,275) 236,636 Rainy River 175,727 (68,476) 107,251 Other 232,703 (121,328) 111,375 Total production stage stream interests 2,463,562 (1,085,531) 1,378,031 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 (47,402) 306,448 Voisey's Bay 205,724 (119,356) 86,368 Red Chris 116,187 (3,758) 112,429 Peñasquito 99,172 (59,407) 39,765 Other 447,687 (403,171) 44,516 Total production stage royalty interests 1,222,620 (633,094) 589,526 Total production stage stream and royalty interests 3,686,182 (1,718,625) 1,967,557 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Côté 45,421 — 45,421 Other 81,510 — 81,510 Total development stage stream and royalty interests 138,969 — 138,969 Exploration stage stream interests: Xavantina 19,565 — 19,565 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,471 — 456,471 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 107,698 — 107,698 Total exploration stage stream and royalty interests 1,049,035 — 1,049,035 Total stream and royalty interests, net $ 4,874,186 $ (1,718,625) $ 3,155,561 As of December 31, 2022 (Amounts in thousands): Cost Accumulated Depletion Impairments Net Production stage stream interests: Mount Milligan $ 790,635 $ (392,804) $ — $ 397,831 Pueblo Viejo 610,404 (289,537) — 320,867 Andacollo 388,182 (151,870) — 236,312 Khoemac a 265,911 (15,905) — 250,006 Rainy River 175,727 (61,601) — 114,126 Other 215,576 (110,711) — 104,865 Total production stage stream interests 2,446,435 (1,022,428) — 1,424,007 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,772 (35,276) — 318,496 Voisey's Bay 205,724 (118,327) — 87,397 Red Chris 116,187 (1,797) — 114,390 Peñasquito 99,172 (57,772) — 41,400 Other 447,535 (398,513) — 49,022 Total production stage royalty interests 1,222,390 (611,685) — 610,705 Total production stage stream and royalty interests 3,668,825 (1,634,113) — 2,034,712 Development stage stream interests: Other 12,038 — — 12,038 Development stage royalty interests: Côté 45,421 — — 45,421 Other 74,225 — — 74,225 Total development stage stream and royalty interests 131,684 — — 131,684 Exploration stage stream interests: Xavantina 34,253 — — 34,253 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,318 — — 456,318 Great Bear 209,106 — — 209,106 Pascua-Lama 177,690 — — 177,690 Red Chris 48,895 — — 48,895 Côté 29,610 — — 29,610 Other 119,421 — (4,287) 115,134 Total exploration stage royalty interests 1,075,293 — (4,287) 1,071,006 Total stream and royalty interests, net $ 4,875,802 $ (1,634,113) $ (4,287) $ 3,237,402 |
MARKETABLE EQUITY SECURITIES (T
MARKETABLE EQUITY SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
MARKETABLE EQUITY SECURITIES | |
Schedule of marketable equity securities measured at fair value | June 30, December 31, 2023 2022 Carrying value of marketable securities (1) $ 547 $ 373 Change in fair value of marketable securities $ (509) $ (1,503) (1) Other Assets |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
DEBT | |
Schedule of debt | Our debt as of June 30, 2023 and December 31, 2022 consists of the following (amounts in thousands): As of June 30, 2023 As of December 31, 2022 Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total (Amounts in thousands) (Amounts in thousands) Revolving credit facility $ 400,000 $ (4,471) $ 395,529 $ 575,000 $ (3,428) $ 571,572 Total debt $ 400,000 $ (4,471) $ 395,529 $ 575,000 $ (3,428) $ 571,572 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Stream revenue: Gold $ 80,227 $ 75,325 $ 158,856 $ 152,827 Silver 19,230 12,892 37,539 24,331 Copper 6,558 16,662 24,610 32,972 Total stream revenue $ 106,015 $ 104,879 $ 221,005 $ 210,130 Royalty revenue: Gold $ 30,169 $ 28,974 $ 73,037 $ 66,890 Silver 2,721 3,512 5,667 7,829 Copper 1,572 3,281 6,630 9,986 Other 3,565 5,795 8,095 13,961 Total royalty revenue $ 38,027 $ 41,562 $ 93,429 $ 98,666 Total revenue $ 144,042 $ 146,441 $ 314,434 $ 308,796 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) 2023 2022 2023 2022 Stream revenue: Mount Milligan Gold & Copper $ 41,208 $ 45,627 $ 87,863 $ 88,043 Pueblo Viejo Gold & Silver 23,540 19,812 45,898 43,076 Khoemac a Silver 8,881 5,202 18,035 7,591 Andacollo Gold 7,823 11,721 20,757 27,395 Other Gold & Silver 24,563 22,517 48,452 44,025 Total stream revenue $ 106,015 $ 104,879 $ 221,005 $ 210,130 Royalty revenue: Cortez Legacy Zone Gold $ 14,305 $ 8,138 $ 37,393 $ 24,852 Cortez CC Zone Gold 3,520 — 6,726 — Peñasquito Gold, Silver, Lead & Zinc 6,105 9,664 13,538 22,758 Other Various 14,097 23,760 35,772 51,056 Total royalty revenue $ 38,027 $ 41,562 $ 93,429 $ 98,666 Total revenue $ 144,042 $ 146,441 $ 314,434 $ 308,796 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION | |
Schedule of recognized stock-based compensation expense | 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, 2023 2022 2023 2022 Restricted stock $ 1,540 $ 1,201 $ 3,154 $ 2,356 Stock appreciation rights 212 360 417 692 Performance stock 183 847 993 1,478 Stock options 8 10 15 16 Total stock-based compensation expense $ 1,943 $ 2,418 $ 4,579 $ 4,542 |
Schedule of stock-based compensation awards | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 (Number of shares) (Number of shares) Performance stock (at maximum 200% attainment) — — 82,360 39,380 Restricted Stock — — 56,530 28,220 Total equity awards granted — — 138,890 67,600 |
Schedule of unrecognized compensation expense | As of June 30, 2023, 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 $ 9,880 2.1 Performance stock 7,666 2.2 Stock appreciation rights 111 0.1 Stock options 4 0.1 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE ("EPS") | |
Summary of the effects of dilutive securities on diluted EPS | The following table summarizes 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, 2023 2022 2023 2022 Net income attributable to Royal Gold common stockholders $ 63,449 $ 71,140 $ 127,324 $ 136,816 Weighted-average shares for basic EPS 65,605,391 65,569,190 65,600,213 65,567,621 Effect of other dilutive securities 157,512 109,130 135,815 94,032 Weighted-average shares for diluted EPS 65,762,903 65,678,320 65,736,028 65,661,653 Basic EPS $ 0.97 $ 1.08 $ 1.94 $ 2.08 Diluted EPS $ 0.97 $ 1.08 $ 1.93 $ 2.08 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INCOME TAXES | |
Components of income tax expense (benefit) | The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 Income tax expense (benefit) $ 2,029 $ (5,911) $ 17,900 $ 9,393 Effective tax rate 3.1% (9.0%) 12.3% 6.4% |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of geographical distribution of long-lived assets | As of June 30, 2023 As of December 31, 2022 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 484,602 $ 616,920 $ 1,101,522 $ 511,957 $ 620,549 $ 1,132,506 Dominican Republic 314,998 — 314,998 320,867 — 320,867 Africa 280,517 321 280,838 299,722 321 300,043 Chile 230,421 224,116 454,537 236,312 224,116 460,428 United States — 810,487 810,487 — 823,203 823,203 Mexico — 45,703 45,703 — 50,156 50,156 Australia — 21,743 21,743 — 22,120 22,120 Rest of world 99,095 26,638 125,733 101,440 26,639 128,079 Total $ 1,409,633 $ 1,745,928 $ 3,155,561 $ 1,470,298 $ 1,767,104 $ 3,237,402 |
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, 2023 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 106,015 $ 23,367 $ — $ 29,352 $ 53,296 Royalty interests 38,027 — 1,274 8,945 27,808 Total $ 144,042 $ 23,367 $ 1,274 $ 38,297 $ 81,104 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 Six Months Ended June 30, 2023 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 221,005 $ 48,387 $ — $ 63,104 $ 109,514 Royalty interests 93,429 — 3,263 21,408 68,758 Total $ 314,434 $ 48,387 $ 3,263 $ 84,512 $ 178,272 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 (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, 2023 2022 2023 2022 Total segment gross profit $ 81,104 $ 77,341 $ 178,272 $ 166,970 Costs and expenses General and administrative expenses 9,093 9,312 20,093 18,243 Depreciation and amortization 115 124 229 246 Operating income 71,896 67,905 157,950 148,481 Fair value changes in equity securities (509) (2,191) 291 (1,577) Interest and other income 2,650 1,118 4,912 2,093 Interest and other expense (8,408) (1,398) (17,582) (2,296) Income before income taxes $ 65,629 $ 65,434 $ 145,571 $ 146,701 |
Schedule of revenue by reportable segment geographically distributed | Our revenue by reportable segment for the three and six months ended June 30, 2023 and 2022 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, 2023 2022 2023 2022 Stream interests: Canada $ 50,848 $ 54,591 $ 107,829 $ 106,077 Dominican Republic 23,540 19,812 45,899 43,076 Africa 18,763 14,540 36,301 25,375 Chile 7,823 11,721 20,757 27,395 Rest of world 5,041 4,215 10,219 8,207 Total stream interests $ 106,015 $ 104,879 $ 221,005 $ 210,130 Royalty interests: United States $ 23,265 $ 16,845 $ 56,845 $ 41,202 Mexico 8,155 11,940 17,449 27,821 Australia 5,081 4,040 9,180 8,086 Canada (97) 5,773 6,495 16,551 Africa — 114 — 430 Rest of world 1,623 2,850 3,460 4,576 Total royalty interests $ 38,027 $ 41,562 $ 93,429 $ 98,666 Total revenue $ 144,042 $ 146,441 $ 314,434 $ 308,796 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on recurring basis | As of June 30, 2023 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 547 $ 547 $ 11 $ 536 $ — As of December 31, 2022 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 373 $ 373 $ 121 $ 252 $ — (1) Other assets |
STREAM AND ROYALTY INTERESTS,_3
STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cost | $ 4,874,186 | $ 4,875,802 |
Accumulated Depletion | (1,718,625) | (1,634,113) |
Impairments | (4,287) | |
Net | 3,155,561 | 3,237,402 |
Production stage stream and royalty interests | ||
Cost | 3,686,182 | 3,668,825 |
Accumulated Depletion | (1,718,625) | (1,634,113) |
Net | 1,967,557 | 2,034,712 |
Production stage stream interests | ||
Cost | 2,463,562 | 2,446,435 |
Accumulated Depletion | (1,085,531) | (1,022,428) |
Net | 1,378,031 | 1,424,007 |
Production stage stream interests | Mt. Milligan | ||
Cost | 790,635 | 790,635 |
Accumulated Depletion | (413,284) | (392,804) |
Net | 377,351 | 397,831 |
Production stage stream interests | Pueblo Viejo | ||
Cost | 610,404 | 610,404 |
Accumulated Depletion | (295,407) | (289,537) |
Net | 314,997 | 320,867 |
Production stage stream interests | Andacollo | ||
Cost | 388,182 | 388,182 |
Accumulated Depletion | (157,761) | (151,870) |
Net | 230,421 | 236,312 |
Production stage stream interests | Khoemacau | ||
Cost | 265,911 | 265,911 |
Accumulated Depletion | (29,275) | (15,905) |
Net | 236,636 | 250,006 |
Production stage stream interests | Rainy River | ||
Cost | 175,727 | 175,727 |
Accumulated Depletion | (68,476) | (61,601) |
Net | 107,251 | 114,126 |
Production stage stream interests | Other interest | ||
Cost | 232,703 | 215,576 |
Accumulated Depletion | (121,328) | (110,711) |
Net | 111,375 | 104,865 |
Production stage royalty interests | ||
Cost | 1,222,620 | 1,222,390 |
Accumulated Depletion | (633,094) | (611,685) |
Net | 589,526 | 610,705 |
Production stage royalty interests | Cortez | ||
Cost | 353,850 | 353,772 |
Accumulated Depletion | (47,402) | (35,276) |
Net | 306,448 | 318,496 |
Production stage royalty interests | Voisey's Bay | ||
Cost | 205,724 | 205,724 |
Accumulated Depletion | (119,356) | (118,327) |
Net | 86,368 | 87,397 |
Production stage royalty interests | Red Chris | ||
Cost | 116,187 | 116,187 |
Accumulated Depletion | (3,758) | (1,797) |
Net | 112,429 | 114,390 |
Production stage royalty interests | Penasquito | ||
Cost | 99,172 | 99,172 |
Accumulated Depletion | (59,407) | (57,772) |
Net | 39,765 | 41,400 |
Production stage royalty interests | Other interest | ||
Cost | 447,687 | 447,535 |
Accumulated Depletion | (403,171) | (398,513) |
Net | 44,516 | 49,022 |
Development stage stream and royalty interests | ||
Cost | 138,969 | 131,684 |
Net | 138,969 | 131,684 |
Development stage stream interests | Other interest | ||
Cost | 12,038 | 12,038 |
Net | 12,038 | 12,038 |
Development stage royalty interests | Cote | ||
Cost | 45,421 | 45,421 |
Net | 45,421 | 45,421 |
Development stage royalty interests | Other interest | ||
Cost | 81,510 | 74,225 |
Net | 81,510 | 74,225 |
Exploration stage stream interests | Xavantina (formerly NX Gold) | ||
Cost | 19,565 | 34,253 |
Net | 19,565 | 34,253 |
Exploration stage royalty interests | ||
Cost | 1,049,035 | 1,075,293 |
Impairments | (4,287) | |
Net | 1,049,035 | 1,071,006 |
Exploration stage royalty interests | Cortez | ||
Cost | 456,471 | 456,318 |
Net | 456,471 | 456,318 |
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 | Great Bear | ||
Cost | 209,106 | 209,106 |
Net | 209,106 | 209,106 |
Exploration stage royalty interests | Pascua - Lama | ||
Cost | 177,690 | 177,690 |
Net | 177,690 | 177,690 |
Exploration stage royalty interests | Other interest | ||
Cost | 107,698 | 119,421 |
Impairments | (4,287) | |
Net | $ 107,698 | $ 115,134 |
MARKETABLE EQUITY SECURITIES (D
MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Marketable Securities | |||||
Carrying value of marketable securities | $ 547 | $ 547 | $ 373 | ||
Change in fair value of marketable securities | $ (509) | $ (2,191) | $ 291 | $ (1,577) | $ (1,503) |
TriStar | |||||
Marketable Securities | |||||
Stock that can be purchased by warrants (in shares) | 19,640,000 | 19,640,000 | |||
Goldon Resources Ltd | |||||
Marketable Securities | |||||
Investment shares owned (in shares) | 250,000 | 250,000 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 06, 2023 | Mar. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Long-term debt disclosure | |||||||
Principal | $ 400,000 | $ 400,000 | $ 575,000 | ||||
Debt issuance costs | (4,471) | (4,471) | (3,428) | ||||
Total debt | 395,529 | 395,529 | 571,572 | ||||
Repayment of debt | 175,000 | ||||||
Credit Facility | |||||||
Long-term debt disclosure | |||||||
Principal | 400,000 | 400,000 | 575,000 | ||||
Debt issuance costs | (4,471) | (4,471) | (3,428) | ||||
Total debt | 395,529 | 395,529 | $ 571,572 | ||||
Repayment of debt | $ 100,000 | $ 75,000 | |||||
Outstanding amount under credit facility | 400,000 | 400,000 | |||||
Available under the revolving credit facility | $ 600,000 | $ 600,000 | |||||
Effective interest rate (as percent) | 6.70% | 6.70% | |||||
Interest expense recognized | $ 7,800 | $ 200 | $ 16,300 | $ 500 | |||
LIBOR | Credit Facility | |||||||
Long-term debt disclosure | |||||||
Basis spread on interest rate (as a percent) | 1.20% |
REVENUE (Details)
REVENUE (Details) | 6 Months Ended |
Jun. 30, 2023 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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue | ||||
Revenue | $ 144,042 | $ 146,441 | $ 314,434 | $ 308,796 |
Stream interests | ||||
Disaggregation of Revenue | ||||
Revenue | 106,015 | 104,879 | 221,005 | 210,130 |
Stream interests | Gold | ||||
Disaggregation of Revenue | ||||
Revenue | 80,227 | 75,325 | 158,856 | 152,827 |
Stream interests | Silver | ||||
Disaggregation of Revenue | ||||
Revenue | 19,230 | 12,892 | 37,539 | 24,331 |
Stream interests | Copper | ||||
Disaggregation of Revenue | ||||
Revenue | 6,558 | 16,662 | 24,610 | 32,972 |
Royalty interests | ||||
Disaggregation of Revenue | ||||
Revenue | 38,027 | 41,562 | 93,429 | 98,666 |
Royalty interests | Gold | ||||
Disaggregation of Revenue | ||||
Revenue | 30,169 | 28,974 | 73,037 | 66,890 |
Royalty interests | Silver | ||||
Disaggregation of Revenue | ||||
Revenue | 2,721 | 3,512 | 5,667 | 7,829 |
Royalty interests | Copper | ||||
Disaggregation of Revenue | ||||
Revenue | 1,572 | 3,281 | 6,630 | 9,986 |
Royalty interests | Other | ||||
Disaggregation of Revenue | ||||
Revenue | $ 3,565 | $ 5,795 | $ 8,095 | $ 13,961 |
REVENUE - Property Disaggregati
REVENUE - Property Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue | ||||
Revenue | $ 144,042 | $ 146,441 | $ 314,434 | $ 308,796 |
Stream interests | ||||
Disaggregation of Revenue | ||||
Revenue | 106,015 | 104,879 | 221,005 | 210,130 |
Stream interests | Mt. Milligan | ||||
Disaggregation of Revenue | ||||
Revenue | 41,208 | 45,627 | 87,863 | 88,043 |
Stream interests | Pueblo Viejo | ||||
Disaggregation of Revenue | ||||
Revenue | 23,540 | 19,812 | 45,898 | 43,076 |
Stream interests | Khoemacau | ||||
Disaggregation of Revenue | ||||
Revenue | 8,881 | 5,202 | 18,035 | 7,591 |
Stream interests | Andacollo | ||||
Disaggregation of Revenue | ||||
Revenue | 7,823 | 11,721 | 20,757 | 27,395 |
Stream interests | Other interest | ||||
Disaggregation of Revenue | ||||
Revenue | 24,563 | 22,517 | 48,452 | 44,025 |
Royalty interests | ||||
Disaggregation of Revenue | ||||
Revenue | 38,027 | 41,562 | 93,429 | 98,666 |
Royalty interests | Cortez Legacy Zone | ||||
Disaggregation of Revenue | ||||
Revenue | 14,305 | 8,138 | 37,393 | 24,852 |
Royalty interests | Cortez CC Zone | ||||
Disaggregation of Revenue | ||||
Revenue | 3,520 | 6,726 | ||
Royalty interests | Penasquito | ||||
Disaggregation of Revenue | ||||
Revenue | 6,105 | 9,664 | 13,538 | 22,758 |
Royalty interests | Other interest | ||||
Disaggregation of Revenue | ||||
Revenue | $ 14,097 | $ 23,760 | $ 35,772 | $ 51,056 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-based compensation | ||||
Stock-based compensation expense | $ 1,943 | $ 2,418 | $ 4,579 | $ 4,542 |
Other than options granted (in shares) | 138,890 | 67,600 | ||
Restricted stock | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 1,540 | 1,201 | $ 3,154 | $ 2,356 |
Other than options granted (in shares) | 56,530 | 28,220 | ||
Unrecognized compensation expense | 9,880 | $ 9,880 | ||
Weighted-average recognition period | 2 years 1 month 6 days | |||
Stock appreciation rights | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 212 | 360 | $ 417 | $ 692 |
Unrecognized compensation expense | 111 | $ 111 | ||
Weighted-average recognition period | 1 month 6 days | |||
Performance stock | ||||
Stock-based compensation | ||||
Stock-based compensation expense | $ 183 | $ 847 | $ 993 | $ 1,478 |
Other than options granted (in shares) | 82,360 | 39,380 | ||
Earn out basis if all goals are met (as a percent) | 200% | 200% | 200% | 200% |
Unrecognized compensation expense | $ 7,666 | $ 7,666 | ||
Weighted-average recognition period | 2 years 2 months 12 days | |||
Stock options | ||||
Stock-based compensation | ||||
Stock-based compensation expense | 8 | $ 10 | $ 15 | $ 16 |
Unrecognized compensation expense | $ 4 | $ 4 | ||
Weighted-average recognition period | 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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
EARNINGS PER SHARE ("EPS") | ||||
Net income attributable to Royal Gold common stockholders | $ 63,449 | $ 71,140 | $ 127,324 | $ 136,816 |
Weighted-average shares for basic EPS | 65,605,391 | 65,569,190 | 65,600,213 | 65,567,621 |
Effect of other dilutive securities | 157,512 | 109,130 | 135,815 | 94,032 |
Weighted-average shares for diluted EPS | 65,762,903 | 65,678,320 | 65,736,028 | 65,661,653 |
Basic EPS | $ 0.97 | $ 1.08 | $ 1.94 | $ 2.08 |
Diluted EPS | $ 0.97 | $ 1.08 | $ 1.93 | $ 2.08 |
INCOME TAXES - Quarterly (Detai
INCOME TAXES - Quarterly (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INCOME TAXES | ||||
Income tax expense (benefit) | $ 2,029 | $ (5,911) | $ 17,900 | $ 9,393 |
Effective tax rate (as a percent) | 3.10% | (9.00%) | 12.30% | 6.40% |
Discrete tax benefit | $ 8,500 | $ 18,800 | $ 8,500 | $ 18,800 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Number of reportable segments | segment | 2 | ||||
Stream and royalty interest | $ 3,155,561 | $ 3,155,561 | $ 3,237,402 | ||
Revenue | 144,042 | $ 146,441 | 314,434 | $ 308,796 | |
Cost of sales | 23,367 | 23,810 | 48,387 | 46,450 | |
Production taxes | 1,274 | 1,425 | 3,263 | 3,646 | |
Depletion | 38,297 | 43,865 | 84,512 | 91,730 | |
Total segment gross profit | 81,104 | 77,341 | 178,272 | 166,970 | |
Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 1,101,522 | 1,101,522 | 1,132,506 | ||
Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 314,998 | 314,998 | 320,867 | ||
Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 280,838 | 280,838 | 300,043 | ||
Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 454,537 | 454,537 | 460,428 | ||
United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 810,487 | 810,487 | 823,203 | ||
Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 45,703 | 45,703 | 50,156 | ||
Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 21,743 | 21,743 | 22,120 | ||
Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 125,733 | 125,733 | 128,079 | ||
Stream interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 1,409,633 | 1,409,633 | 1,470,298 | ||
Revenue | 106,015 | 104,879 | 221,005 | 210,130 | |
Cost of sales | 23,367 | 23,810 | 48,387 | 46,450 | |
Depletion | 29,352 | 37,790 | 63,104 | 74,169 | |
Total segment gross profit | 53,296 | 43,279 | 109,514 | 89,511 | |
Stream interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 484,602 | 484,602 | 511,957 | ||
Revenue | 50,848 | 54,591 | 107,829 | 106,077 | |
Stream interests | Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 314,998 | 314,998 | 320,867 | ||
Revenue | 23,540 | 19,812 | 45,899 | 43,076 | |
Stream interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 280,517 | 280,517 | 299,722 | ||
Revenue | 18,763 | 14,540 | 36,301 | 25,375 | |
Stream interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 230,421 | 230,421 | 236,312 | ||
Revenue | 7,823 | 11,721 | 20,757 | 27,395 | |
Stream interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 99,095 | 99,095 | 101,440 | ||
Revenue | 5,041 | 4,215 | 10,219 | 8,207 | |
Royalty interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 1,745,928 | 1,745,928 | 1,767,104 | ||
Revenue | 38,027 | 41,562 | 93,429 | 98,666 | |
Production taxes | 1,274 | 1,425 | 3,263 | 3,646 | |
Depletion | 8,945 | 6,075 | 21,408 | 17,561 | |
Total segment gross profit | 27,808 | 34,062 | 68,758 | 77,459 | |
Royalty interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 616,920 | 616,920 | 620,549 | ||
Revenue | (97) | 5,773 | 6,495 | 16,551 | |
Royalty interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 321 | 321 | 321 | ||
Revenue | 114 | 430 | |||
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 | United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 810,487 | 810,487 | 823,203 | ||
Revenue | 23,265 | 16,845 | 56,845 | 41,202 | |
Royalty interests | Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 45,703 | 45,703 | 50,156 | ||
Revenue | 8,155 | 11,940 | 17,449 | 27,821 | |
Royalty interests | Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 21,743 | 21,743 | 22,120 | ||
Revenue | 5,081 | 4,040 | 9,180 | 8,086 | |
Royalty interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 26,638 | 26,638 | $ 26,639 | ||
Revenue | $ 1,623 | $ 2,850 | $ 3,460 | $ 4,576 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
SEGMENT INFORMATION | |||||
Total segment gross profit | $ 81,104 | $ 77,341 | $ 178,272 | $ 166,970 | |
Costs and expenses | |||||
General and administrative expenses | 9,093 | 9,312 | 20,093 | 18,243 | |
Depreciation and amortization | 115 | 124 | 229 | 246 | |
Operating income | 71,896 | 67,905 | 157,950 | 148,481 | |
Fair value changes in equity securities | (509) | (2,191) | 291 | (1,577) | $ (1,503) |
Interest and other income | 2,650 | 1,118 | 4,912 | 2,093 | |
Interest and other expense | (8,408) | (1,398) | (17,582) | (2,296) | |
Income before income taxes | $ 65,629 | $ 65,434 | $ 145,571 | $ 146,701 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Assets: | ||
Marketable equity securities | $ 547 | $ 373 |
Fair value | ||
Assets: | ||
Marketable equity securities | 547 | 373 |
Level 1 | Fair value | ||
Assets: | ||
Marketable equity securities | 11 | 121 |
Level 2 | Fair value | ||
Assets: | ||
Marketable equity securities | $ 536 | $ 252 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 20, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies | |||
Acquisition consideration paid | $ 2,670 | $ 37,841 | |
Ilovica | |||
Commitments and Contingencies | |||
Conditional funding from acquisition | $ 163,750 | ||
Xavantina (formerly NX Gold) | |||
Commitments and Contingencies | |||
Acquisition consideration paid | $ 2,400 | ||
Advance payments | $ 4,400 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
SUBSEQUENT EVENTS. | ||
Payment to acquire interest | $ 2,670 | $ 37,841 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 63,449 | $ 71,140 | $ 127,324 | $ 136,816 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Paul Libner [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 14, 2023, Paul Libner, Chief Financial Officer and Treasurer of Royal Gold, adopted a trading plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Securities Exchange Act of 1934, as amended, regarding the sale of up to 1,700 shares of common stock of Royal Gold. The plan provides that sales may begin on September 13, 2023, and will end on September 30, 2024, or such earlier date as all 1,700 shares are sold. No non-Rule 10b5-1 trading arrangements (as defined by Item 408(a) of Regulation S-K) were entered into by a Section 16 director or officer of the Company during the quarter. |
Name | Paul Libner |
Title | Chief Financial Officer and Treasurer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 14, 2023 |
Aggregate Available | 1,700 |
Trd Arr Expiration Date | September 30, 2024 |