RGLD - Earnings call transcript Q3 2021

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Operator

Good day, and welcome to the Royal Gold Fiscal 2021 Third Quarter Conference Call. [Operator Instructions]. I would now like to turn the conference over to Alistair Baker. Please go ahead.

Alistair Baker

Thank you, operator. to of welcome Quarter Gold's and Results. XXXX morning, our Royal discussion Third Good being and on webcast able is event This live, a of to you replay this website. call our access be will Libner, COO call the Isto, Heissenbuttel, CEO; and are Participating Gold CFO President Corporation. on Treasurer; and today and Vice Royal President Bill and Paul of Executive Mark for Dan General Counsel, Shefman, AG; and questions. Breeze, Randy Vice President, Corporate Development also of available RG are

and expectations today's uncertainties statements press projections and SEC. During yesterday's results release in we about are from statements risks forward-looking will that materially are statements. these the actual and the including statements, for and subject call, make cause to risks our These differ discussed with uncertainties These future. our to could filings

the certain the measures, income, financial comments. website. GAAP also give directly the session. update, by Paul with We for cash. including you share, debt followed to to will of net measures adjusted quarter, available which of yesterday's and refer measures operating most found net Reconciliations the financial an wrap net with press closing open a be net Mark per release, then will our will up Bill provide some a will Bill and We'll an income financial in can then comparable overview are non-GAAP adjusted on Q&A these non-GAAP call lines update.

to over Now call Bill. I turn will the

William Heissenbuttel

for joining you call. thank and morning, Good the

I'd our to of that Gold that to do best profile, coordinated investor detailed our weeks Before an any and response a strategy. growth beginning, to we'll finances couple also information and provide a mention I operate to remotely, that like would on ago held you questions. continues assets, like we update remind offer Royal to

call, event available the to that website. you are on from our that want thank For your I for And who are participate, materials joined note all we for of unable those time. you just who those of to our

and quarter remained net credit the during cash leaving over debt December this and share, quarter long-standing access to $XXX results the full quarter's dividend portfolio, as and the royalty on the to credit fair on We strong repay quarter per segment those. just quarter our results, $X.XX $XX per our our share. to returning regular $X.XX further important April or in in quarter. $XX tax Operating equity Earnings paid a was X, by $XXX Slide On credit to We of $XX during value for per had provide across chose million million changes begin on performance. operating both return. over capital and paid X. down the balance facility revenue securities. outstanding earnings financial driven were I'll after of results with million to with at our $X.X to We million an with revolving a for us quarter more contributor commitment of Adjusted it be adjusting cash billion operating and billion was ended holdings on in liquidity. Turning and Total of the $X solid the another full, good our to $X.XX of keeping million. in continued detail we our position facility. X $XX of Paul million share will And of were facility our shareholders the flow

of finally, the a made stream base to detail $XX stream in of the the early debt, Mark will X-year support during necessary Khoemacau XX% project. remarks. We're in a palm we and form result April, silver the in give In at Silver acquire million to $XX.X our further Star, into to Golden fund continue And fund And payable and with the pleased our million mine. important counterparties. as we increasing paid to operating With to entered of quarter, million XX% reach stream the We Khoemacau, his you more investment around $XXX rate of agreed the the initiatives X a contribution to we oil we with a agreement our incremental Wassa payment. sustainable progress social agribusiness Stream.

And donated With medical the use investments that hospitals Pueblo here, International programs we mine. Viejo equipment Relief where project for promote for transportation the the funding we're that, long-lasting Viejo benefits Mark call initiatives. Organization joint to I'll an update are in around progress over With supplies in to examples social portfolio our be pleased are venture the to sustainability Khoemacau. have and the Pueblo at invested. communities provide we and of and on involved to These and the good turn of

Mark Isto

results start mentioned. I'll quarter, Bill. and again Thanks, solid comments our Bill by portfolio, few well as making delivered to which this performed a

Pueblo about performance revenue, XX% due contributed from to circuit segment from at deliveries royalty Peñasquito. seen strong silver The Silver complex. of is we've where Viejo. area Stream One Our is mainly reduced

And circuit some running have address again current the to is recent to expects issues within issues these with recoveries. normally Barrick working be quarter. caused equipment lower and in the

in mechanism future of protect we factor the we deferred, economic the has Khoemacau flow have expect that in to lasting On Slide as stream is silver to update investor revenue. recovery agreement XXX,XXX deferral of update in our recall, project on up weeks timing the be fixed this project impact also our silver be you perspective, agreement any deliveries periods. any been to includes made of Approximately a by have recovery in and to X, a ounces made against impact an ago. cash our Mining, shortfall gave allows And give XX% I'll If X Botswana, shortfall a review the on it risk. silver up Khoemacau silver From We improves. and issue, the expect performance under development KCM. detailed do not plant currently a Copper

production brief activities in the mill the At KCM at construction about from allowing the end X both quarter. of Boseto XX% end Overall the milestones, upcoming So up to up of fourth reached completion March, reach comments was end the started quarter. on I'll today. Boseto plant my development the in with December to fully at underground of of the sale end by quarter, XX% at the Zone X keep site of and sulfide milestone on plant high-grade a mines in a reached in of there ramp the of grid operate surface. a energized, third was April the and meters, grid calendar With nameplate ore concentrate tons quarter start-up XX when project XXX,XXX X to around respect levels was power. XXXX And reached capacity XX,XXX has commissioning the the Production over fourth the to in XXXX expected and connection sustained to first is quarter. of Zone stockpile

However, this from do no the assumes Gold unchanged. timing KCM require of the has should they remain COVID-XX further milestones challenges. increase material project advised in funding that to Royal not any expect

in organic investor during Turning some I to mention discussed update. Slide these opportunities April additional announced the X. developments I'll XX of growth during other quickly quarter. several our the

presentation event So for refer the please our additional and website to details.

Extension XX drilling the project. in infill Star Wassa plant PEA, reserve Golden Southern existing production, is at an and years to increase capacity the early production plan. to more the XXXX an First operate Extension The which PEA preliminary study plans in X-year announced complete expect the X,XXX per economic tonnes near the on of Golden X,XXX assessment, adds shows day. tonne will PEA in finish XXXX. allow throughput feasibility March, results or to existing day early Star underground about compared to the Southern to the of average on per which

potential is quarters mill mining performance and production over past last significant is all where full Newmont's due to considerably Newmont's higher XXXX milling year. guidance grade has Peñasquito's throughput. program to resulted in higher improvements the metals. production Peñasquito, for X increased for The over Compared XXXX, gold the and second to

near to and mine's XXXX. also success almost and regional has the by expects mine to XX turned Newmont life years that exploration extend their exploration

At long-lead X. construction and orders plant facility plant up. have Barrick to to process continues and Turning advance placed been Viejo, to project. expansion continues for contracts Slide the ramp is purchase Pueblo complete, XX% Overall, engineering tailings the about

that and our covers during has And be of maintained to studies tailings X.X additional stands voice despite at XXXX technical finally, Cortez. the until environmental production advance. year and ounces Mines did approximately not an royalty updated to mid-XXXXs. from storage we continue Post gold XXX,XXX Nevada for change reserve areas also million ounces. Year-over-year truck received Gold plan at reserves per mine the Social at is XXX% expecting Barrick basis depletion a statement and life expansion, on

for and year, of Nevada Gold interest, to to In XXXX XXXX terms of production of ounces, XXX,XXX is from guidance deposit. most approximately is of production production come to XXX,XXX per ounces XXX,XXX our royalty the to XXXX Crossroads expected attributable Mines expecting which average

have this overlap. through royalties which in We area, part X

way smelter just rate I gross apply production mentioned. return best royalty the the these X% about to royalties So approximate combined is an think guidance to to

Of there estimates good it considers areas is are Paul But be approximation discussion now and course, depending a turn that royalty. call financial mined. a I'll of this will the for is to each deductions our results. an in our for relevant approximation, over variations which on

Paul Libner

quarter. an overview X of turn your now Mark. the the and financial I'll Thanks, Slide for attention results give to

on I'll comparing to higher performance third gold silver gold royalty, quarter. of the mostly gold Andacollo. in recognized to Contributions GEOs. the to XXXX revenue revenue prior sales equivalent We quarter over average we and and of ounces, copper in the increase as due lower discussion, be within metal our $XXX and remains increased metal the to or million our of experienced and XX%, from price by quarter Peñasquito XX,XXX this prior year revenue portfolio. prices, from X% strong solid another For our XX% gold, With gold the dominate fiscal focus The offset from quarter. our XX%, to respect prices respectively, increase was of continue volume a average

current our to average largely prior revenue compared contributions increases and gold our in copper during silver decrease quarter for in However, the XX% the quarter XX% The from due in higher was period. the prices. gold the was current to significantly

which of million prior expense $X due senior management. nearly quarter, the was expense of during during compensation recognized members related we the noncash the year X to the G&A retirement quarter, long-standing additional decreased Our to

G&A was any Royal absent with Our what anticipate in quarter is Gold typical going and items. again line we for large unusual or forward expense the

quarter GEO depletion expense silver sales Andacollo decreased decrease and expense or improved $XXX during due at as lower rates Mount Mount in gold recoveries. and and DD&A per the additions in year our gold by reserve DD&A primarily Milligan, while GEO, down the Our reported at Milligan Mount prior from both as $XXX decreased Pueblo was to to Milligan. per gold at as $XX.X depletion was quarter. million The due lower Pueblo Barrick, at Viejo rates Viejo well to rate Pueblo The the gold Viejo depletion due

The DD&A were provided had Given guidance $XXX GEO. XX%. our principal $XX to previously our to June on We the GEO. reduced increase properties, we $XXX per Earnings of guidance to our million some we this GEO. $XXX X of quarterly an earnings our annual $X.XX $XXX or lowering at was year for per and are and $XXX per guidance quarter. last share, adjustments call DD&A per the rates range DD&A minor $XXX between And full our depletion fiscal between between and quarter

The of first certain Swiss the charge, change deferred by per due in was primarily our assets a realizability subsidiary. held tax a to $X.XX share

of value flow net equity holdings. on While After tax share per or items, the increase from per a to cash our gain second our $X.XX $XX EPS share the fair of cash the was strong quarter. had due as quarter the another was removing per $X.XX our million. for X for these adjustment period We operations share $X.XX was adjusted operating

payments was Our quarter. cash cash paid tax during in allow The modestly authorities due was paid estimated deferrals we of current taxes $X our million, to due operating some increase the timing cash down taxing vary to tax payment year-over-year, schedules. the The and their did primarily see timing. taxes higher estimated can to in due flow was with current and quarter COVID, this

to will range any expect quarter Looking XX%, to a the to financial items. effective X now absent for impacts tax, respect to to With rate the quarter expect be GEOs XX,XXX turn for position. unusual end and inventories we fiscal the in and and XX% of we full XX,XXX any year our tax range to operational and XX,XXX be segment both between provide absent and discrete XX,XXX COVID, June June range forward the I sales the or potential to XXXX summary in our the Slide quarter of from stream to GEOs. of

the working of Our liquidity a cash position ended and we capital position to with net cash million. $XXX continued $XXX of strengthen of quarter as million $XXX million,

facility. During we now the quarter, revolving our on the balance million repaid and the And we $XXX April, repaid at debt-free. credit beginning $XX are of outstanding million

remain, base that we under and billion for our have Although our credit revolving risks existing cash require payments of an X, included our sufficient COVID stream million Should Khoemacau remarks, quarter, our we $XXX the G&A million, million Stream and dividend Khoemacau, respect XX%. With commitment and additional remaining we any our to which potential are his of during required flexible. funding available Silver financing our liquidity, in advanced flow we the at payment foreseeable and mindful sixth available the resources, in resources cash is million expected facility, beyond low as we $XX.X additional $X $XX.X the future. payment fund April full On we believe operating which the of in to cover debt costs, commitments have million Bill and made financing. mentioned $XX.X $XX we completed provided cost to

increased Stream XX% stream financing this rate contribution. to Silver Our additional with

financial request remains unchanged. for material to do Royal elect require from should to $XX.X and for contributions quarter, funding calendar the milestones we call end our by do us, commitment stream production, if to Bill performance remaining any resources. project further cash I any KCM available funding, they That Our concludes XXXX. would million comments. additional commercial from up KCM If comments back now debt they the further to of make the to and expect in turn advised timing Gold includes of has not our financing be closing my will the on which

William Heissenbuttel

and pleased financial of quarter another operating solid I'm Thanks, with Paul. results.

operations diverse We revenues a continue can a core business from unleveraged provide returns gold-based cash and to that into that delivers portfolio benefit shareholders. its high-margin to self-finance

some which I our project opportunities number time price specifics healthy advance this on to a these We within for have update we the to investor you organic assets. portfolio, growth from metal website as see encourage in the environment. a providing of hope fair review we good spent the of materials bit

line remain generation, opportunities. existing potential this With to quickly placed balances While for include precious for we are pleased ongoing $X the with with Operator, in pursuit are which in our the prepared credit fit with the business I'll to act and open respect for access of full cash we investment, organic being those preference concludes to gold a new metals remarks. opportunities that growth, well return. cash facility, now questions. disciplined that on we the for our active billion to addition and criteria

Operator

[Operator Instructions].

will first Langton Our question with from JPMorgan. come Tyler

Tyler Langton

deal Just you're type seeing terms kind about just activity, assets, talk there or any helpful. little of Bill, be sort of would whether of activities in sort of of increased locations? bit you could color a what

William Heissenbuttel

I to like get Dan the and Tyler. the can of input give his head Breeze is on if business what efforts. to Sure, development our - mean, do I'd we as unmute

Daniel Breeze

you're Sure. Yes. I hope doing Thanks, Tyler, well. Bill.

in it of of much market. mix in I of again, assets. And we've $XXX $XXX metal well last million or specifically, think consistent assets. the the the seeing gold seeing say year That's with the pretty message what that so. We're in to being been terms in on from saying few as - where healthy focused very over part pretty proceeds, assets, range. metal calls the line been And we're is million a really, primary base to byproducts I'd of it's as precious in use last terms development opportunities

we're market that So you? we're pretty answer your now. encouraged question the Does right for by seeing

Tyler Langton

of and you'll is kind of was XXX,XXX of kind kind expect mean, next question rough couple just No, ounces perfect. take The a that on should I something getting when we that silver of Yes. that? final sense just that Viejo. timing the where And quarters? we Just Pueblo of of receive,

Mark Isto

which on Yes. speed That's address the to with depends able are say. they issues. hard It to the operational

issues. right that best seeing we say want wouldn't point addressing we'll I the is could just think to you. I If start trends, I now a following kind quarter-to-quarter. out the now still But lay out So right certainly of frame to the of because they're time middle in

Operator

Cosmos question with CIBC. The next Chiu will from come

Cosmos Chiu

understanding confirm just on I it give here. at XXX,XXX royalty look about first. XXX,XXX is giving for to year, first - ground, saying ounces I guess about my have here. ounces question I Thanks your it's If you to for on us the wait guess it you're XXX,XXX production. to XXXX, for want But was ounces. calendar Maybe to Cortez. my that I you of to Barrick guidance last

to So were would in of XXXX kind that the double XXXX? prices revenue expect we calendar stay that versus same, if gold the does mean

William Heissenbuttel

to there say things? side on you is Mark, Yes. want the ounce anything of

Mark Isto

gross look guess, I good using give Well, is, is, could you to annual the us. just the way - I that at as and you disclose if explain we would look approximation range certainly was We'll what the provided I return very royalty at X% was will. would value tried factor, of the to XXX,XXX to how I to it XXX,XXX

half has the the that production So that going of the year Barrick first the to year. be weighted half to we than of back is stated know more

basis. we're quarters, X% feeling factor lumpier. is the an approximation it'll a range annual royalty [indiscernible] that a little equal bit It right is the and So be won't certainly on be but very

Cosmos Chiu

I grounds, year, from expecting look you disclosure about I not from And think year, mentioned but be on to your ounces XXX,XXX XXXX to were at XXXX. calendar if we're year it. your last to calendar royalty have Got it. Got here, pedantic

I with changed? estimates what you those have share you has and Now the of sort been us, do Mark, refined. extent guess, acknowledge, can to

Mark Isto

Well, your right. profile the has been bit. is production observation It out shifted has certainly a -

factors disclosed pipeline in the year year of last or in had year. that late pit, last quarter One fourth affecting issue fairly of [indiscernible] the occurred they this geotechnical a that's back which the

for impacting ounces the saw yes, been next that's sure. year, we X part some in certainly this years, out. being pulled So But

lower-margin seen what available is assessment. relegated think are correct, that materials material, to we've this. Cortez Crossroads being I see it's on - typically which you're That's a is other and I So it process. the based mean deposit we my

William Heissenbuttel

I'll just add. ounce average. longer-term figures, we're average, start the we saying on When there can remember, some about talking just variability around and what be that

Cosmos Chiu

the fiscal That's Of your thanks than switching us much fiscal giving can? in XX,XXX GEOs. course. gears you a you the just quarter-over-quarter that bit. here, for realized again about the terms to to guidance GOEs of On XX,XXX QX you extent that Maybe QX. seasonality maybe little guidance, XX,XXX the us in remind Could higher

William Heissenbuttel

to to or not large we shipments. seasonality. paid of and I'll But he over It's get X then it's might a X say. produce it we our has the if I turn based - anything Yes. timing largest - X have those of producers, start, to further - and see on they Paul concentrate revenue

offset Milligan them variability. And kind that of from the together come other, see we happen deliveries lot really, we past, you much last when so the of the we each quarter and just and shipments last expect the sales shipments. had the when have this quarter, we was of fact timing to Andacollo had lower those just forecast, a we've the overlap. And to that In got and may and

anything is that? So you concentrates Paul, would timing. it just to really there add else

Paul Libner

call Cosmos, to going solely our that about did it's here from may talk last And we're timing just we the response, what's Bill, quarterly that be currently. That's recall of you kind No. experiencing my timing.

right I the Bill's think middle So down response there. is certainly

Cosmos Chiu

the that guidance. of almost Great. in I now quarterly have guidance, And Bill, your maybe thought that guidance, get thinking guidance. terms other the QX, you would consider? look peer even longer-term end that out something of putting was But the then terms of at fiscal companies you put it's Is I in out as in also peer that annual some given any we a good we group guidance. X-year If group,

William Heissenbuttel

know we all I going own conversation is The guidance, properties. the it's having it will guidance, is at if internally. offer thing properties different. Cosmos, what's time. that have the don't one We a we on We the we are say don't

well, to they to others, I and we've the last guidance, I've Newmont for had we learned a do don't us give I I've end they didn't hear have say about And we things. it it having that's give kind in something about we guidance and about few have properties do But where Peñasquito, come question, give it. from it. we for totally lot property why different We So it's it, learned don't And I'd don't about. change something's don't heard to you control then learned something examples foresee. the that we is when And either. although frequently. up then and guidance But you question your go, because X it and talk a to just want competitors, of of happened up our information the in months that rights. potentially

concern. about But my again, it. talking that's So we're

Cosmos Chiu

up Pueblo with the from remind percentage from on understanding us, silver that Got silver? you And your revenue of following just coming coming circuit, actually then Viejo here. is Could Viejo recovery maybe Pueblo issues what it. there's

William Heissenbuttel

me. Mark. have number Do of happen you Paul, don't that in or Paul right I front imagine, I it? have to

Paul Libner

silver I you. that do overall to - our and it But look on average roughly XX%. get I'd portfolio be to yes, is Bill. for certainly Cosmos, not, happy at is back just

do silver our Viejo. from and Pueblo primarily - So deliveries come

that piece larger the normally XX% we So get. of it would that make up

Cosmos Chiu

here Got Pueblo question Viejo. last one then it. on And

inventoried. revenue currently release? When shot? is to ounces coming be like peak, from we're several that Or is quarters? talked it, about about see that is a spike one sort in you XXX,XXX it going released, gets to And be going As over of a it going silver to of

William Heissenbuttel

shot come at they the I predict. to depends once, performs it as with do I in they depends that just come increase. the up all level piecemeal higher see quarters. can't how quickly. a of rates. that could number recovery recovery over rates but suddenly come very it's on if much It how It operation - might could mean that It you and a Cosmos, Well,

Operator

next will question with MacArthur Brian from come The James. Raymond

Brian MacArthur

First to smaller and us thing very I just going want comment you giving detail more some for the much say on of assets thank forward.

it helpful. think I be will

We follow do have that, I and do goes that's that think can it realize quarterlies to we PV requires very too. some question, I work. unfortunately But My helpful.

understand the it So little I and A quota receivable just deferral, this comes out to you just of later? amount the anything and couple want up delayed of it book to out? is just whole then a try This better. whenever Or actually cash comes technically do pick questions.

William Heissenbuttel

going handle I'm you ask Paul, one. to that to

Paul Libner

appreciate Yes. Brian. No, it. I Thanks for question, the

these revenue here, GAAP So that ounces. been accrued silver or we just follow with there accordance association obviously, U.S. with no in in has level, the general, high rules deferred recognized in and

a an in don't issue, Mark did which the have XX,XXX spoke do are to this December revenue." that made price, deferrals we quarter. ounces As But ounces ounces shortfall of just anticipate that expect we really start of we contractual remarks, improved certainly flow of mainly mention the "lost deferred just policy. and our delivered, balance growth, according booked was as cash the do view that asset performance and our cash with It's as Mark take but we'll timing be to payable selling we to of kind XXX,XXX those price nominal of inventory But far for the that did pay the we sheet to approximately small, cash date, have we that a will into as our ounces because the actually on a number our and up it earlier. of about result very so was when silver And attributable in these receive. paid his books. We

ounces when contractually pay So later are that us we those date. to will delivered a ultimately at

Brian MacArthur

does And too? Do because not does XXX,XXX I does here of you happens protected if kind it's those it's XX%, the a or $X noncontractual, price a know Or adjusted not because you because volume going but I take function? it's when get a Or get to of too? that but the given may is - into market. get a in this hitting And delayed guess get do if price want of - issue? risk all price - does is and this, you just nonperformance, it it delay I'm a where risk non- ounce don't is volume that silver just point the what you get it's is the

Paul Libner

receive I different a it's of yes, be volume obviously, function. do it more And would say ounces, when could is then than we price the today.

again, those may be today. than lower pay price So or higher ounces again, or when sell correspondingly we ounces, down. could we will go then we price And up when do take those in inventory, cash our the

but market," that - to nature. anything of period So to nothing have or anything "mark we'll for that the

Brian MacArthur

probably is And I Great. accounting. because question guess you my it's second too

repaid. - stream, assume and but just there's the then it? there's obviously debt until on off there, just that as clip just to as Is move increased and to Khoemacau the - I you've putting book forward I it's obviously coupons the in. way part contractual just - a investment the an think going about on it's should the going as you're that Is now it we go just go you because So with debt

Paul Libner

Well, yes.

in did in that again, close quick, - we real April just so on April here. And

is QX for So us. this a transaction

contributed we'll similar. period note be so receivable haven't on for corresponding be do we April. treatment, And our interest as And on that we interest recorded would if quite recall, statement. anticipate that income you amount finalized then that record that Brian, our that. our on we a income balance would I in during this And But a accounting sheet any received there

If you that with a recall XXXX. back loan a when Star similar Golden we in had loan -

move treatment would to to similar be here. going say QX I when So that to we it's

Operator

of Bank America. The next Jalonen question will come from with Mike

Michael Jalonen

Barrick at have a asked had I Gold asset, he is or an on and commenting few one the Barrick called royalties it. that Mines Bristow questions. X Comos was Nevada looking you But yesterday. Tier from still old of which Mark call my pipeline,

So just Sounds there. Royal - up has or Royal What's Gold Mr. doesn't. background very to? Bristow Gold. wondering, Mark And for some promising maybe

William Heissenbuttel

perhaps sure have over sure turn much Mark, you. but we I'll I'm do. more not not I'm to it color, you

Mark Isto

It's I the - we're Yes, comments. - the they're from pipeline out deposit, pipeline of I material. pit. did still co-mingled the - the read And Crossroads with producing the

reference pit the a ground so between pipeline Robertson in our between pit and related the X and interesting. also So royalty Crossroads statement, not really much. He the he found But which looking referenced to to made I made property. pipeline

- the in So have the comments, seemed concepts he he but X the one had does respect area with his between to to pipeline and us crossroads X relate to deposit.

Michael Jalonen

they Are this drilling? at is first.... the just point, - have Or this you

Mark Isto

gave I couldn't point. yesterday what know I detail think you this were his you, at just I give we any more than comments about

Michael Jalonen

great in future. mine the like Sounds maybe a sometime tour,

Operator

will come from next Jakusconek from Tanya Scotiabank. The Instructions]. [Operator question

Tanya Jakusconek

Pueblo understanding come in exactly to much I'm Just trying noted of was happening I for get thank you back much up? the Viejo. to is what's off, back appreciated. that - these And thing circuit? your silver want just first wanted Barrick very is and is second what to to recoveries what I disclosure, circuit to understand doing at the do that additional

William Heissenbuttel

one you. like sounds for Mark,

Mark Isto

Yes. Okay.

rebuilding to problem the up been line an three that relates preheaters slurry what X boil issue the what they there. the into recovery. of heat the They've process preheaters. those the going those call There Our the preheaters. in been understanding thrives the, for circuit, X which the preheaters And in call they of have are

So quarters. has the period bouncing of last around bit been several the quite time, over recovery a

Tanya Jakusconek

Okay.

understanding to your is So need these preheaters? that X they replace

Mark Isto

a it don't understood They've rebuilt two actually them. and maintained We rebuilt information of rebuilt, can that status - be was can't They're on third unit the rebuilt. April, in one current have been - understand I yet. don't of them we know and have particular of one. Two the that be but we to

Tanya Jakusconek

Okay.

just I'm understand. once trying the to So yes, -

to your this silver Is going to heat have understanding? slurry preheaters X that go recovery? these appropriately and once it's rebuilt, in So get been the

Mark Isto

the that the the recoverable, slurry of they it's temperature. It interrupted. - does have solution heat a But one be of one treated been And process the to the to a up ore has the It's to that so the allows make of to components to certain boil circuit. that exactly. certain for silver line pieces

Tanya Jakusconek

And quarter. you you that remarks opening thought resolved - you this your in was Okay. being this that said

Mark Isto

That correct. - yes. That's quarter, current is this

Tanya Jakusconek

Okay.

then, calendar forward QX. let's should we sort of improvement So fully say, in see going

Mark Isto

guess, maintenance. it I come I active Yes, informed our process come to everything to working of still expect know can't that it's we And and not have recoveries is - they've properly be we that seen, been yet. up is back. an we understanding. normal But to

Tanya Jakusconek

clarity there for if be and I'm are companies maybe anywhere project $XXX that anywhere can M&A, available sale? that some And royalty build. those done? Are within to ask, in up were able of between million couple thanks opportunities just a to up just million. all these once to on I heard are portfolios on I there for Okay. at still wondering, the looking in $XXX any

William Heissenbuttel

Dan, do you to want off? start that

Daniel Breeze

for Sure. Thanks Dan it's Yes. Tanya, here. question. the

So market. of trading you've portfolios the the number seen a

for is pretty healthy at the so look sellers. market most And And those. of we the

is cornerstone portfolios. two, a assets hard And the things. to some really have justify couple pricing number with to time cases. We in of find a One trying a

have issues So of most of don't trading, on are well. And we're that things we these are perfect looking at as coming those packages but across. been we've that those information the course,

active certainly, you other Bill, want So the to and to market, But that's very it something closely. add an it's we're do monitoring challenge that? too.

William Heissenbuttel

it. look mean, at I we yes, Yes.

from be they on that focused heavily perspective, or sold very been exploration of to tend not I portfolios think my the sort assets. have development

it So and - and so and I I finding just I portfolio. that something as harder you That's said, that grab onto, harder asset really my do. really, Dan in like can cornerstone want getting to

Tanya Jakusconek

Okay.

the ones easy cornerstone with royalties statement assets that it value? be going that those portfolios, portfolio, ones So fair gone? of $XXX So be to have like are a sort would then - million the left have significantly like gone under and the under the these

William Heissenbuttel

would we're the trend based that statement. seeing, every say I say, company's valid is of because I can't portfolio. on a probably I But know what that's don't

Tanya Jakusconek

Okay.

heard and pretty that. that I wondered, portfolios, are that much something just with there's done was these It Okay. we all I just

William Heissenbuttel

seller's out. said, it I Dan a as can't rule And it's market.

could now companies that sell they to there value that want portfolio the like right out there So a be get. mining together putting because they they can

Operator

would back any This over to for will conclude like conference closing Heissenbuttel session. remarks. turn now today's I the Bill to question-and-answer

William Heissenbuttel

join our quarterly you for to interest, Stay us healthy. look we you, updating the our Take Great. taking We appreciate to forward today. during your progress call. time Thank and certainly care. on everyone, next

Operator

has conference now Thank you you now attending and for presentation, today's concluded. The may disconnect.

Royal Gold (RGLD) 6 May 212021 Q3 Earnings call transcript