RGLD - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the Royal Gold 6-month transition period in December quarter 2021 conference call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Alistair Baker, Vice President of Investor Relations and Business Development. Please go ahead.

Alistair Baker

Thank you operator. to December of quarter welcome transition Gold's and and period XXXX morning, our Royal discussion X-month Good results. on replay This and event this a you live, call of will be is able to being our website. webcast access

also of on General Corporation. and Paul for President President, Dan available Mark Executive Breeze, Libner, Bill COO Counsel, and Development and CEO; Vice Treasurer; Vice call President are RGAG; and of Speaking Shefman, the Isto, Heissenbuttel, are and today Randy CFO Royal questions. Corporate Gold

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

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

William Heissenbuttel

for joining you call. and morning, thank Good the

audit guidelines. from XXXX year out be first X we for months the our S-K want closed thank schedule. while reporting new hard our complete December And last after on XX, As a the forward, X-month another SEC's reporting incorporating calendar to we will work disclosures transition the also to property just team I under a point of this period.

for declining X-month solid on increase Slide from included results portfolio. to In posted still the the summary, metal $XXX revenue in period. posted which XX% begin million, precious we X. Turning royalty to our flat very excellent results we prices, Despite to I'll results. a

leverage January and precious be used of to we December, end share. ounces of like is Nike. debt-free included cash and alongside Our IBM our approximately flows were pleased and XXst index ending in on of their months of This and was was row, Index. years. per the at million XX, S&P Aristocrats year earnings added XXX $XXX from earnings our $X.XX very were only November least The business is $XXX in X the impressive gold raised the well-known above in the we're equivalent per $X.X revenue cash XX% adjustments, with We the XX indicative XX, our liquidity. is XXXX. of were XXX,XXX the repay volume an ability up this were increased for that to increase a December and We're company period million, to have we same over of to companies index, Dividend at our and cost share. After We every XX% percentage the low at metals dividend year flow year, for And flow base dividends in cash billion efficiency last inflation. of effects that consistently insulated likes larger of debt. Operating or $X.XX operating the a healthy High-Yield largely companies the made available up

on Mark Gold Royalty at give stream acquisitions his of our I'll with update period Stream Khoemacau. remarks. portfolio silver Khoemacau Red the rate the also NX and growth detailed previously increased the in to Mine We let added Chris during and a announced more the

Finally, held of our team add I'd Star. senior that, left and our team. role call corporate, participation he very over and our has and pleased Raffield know technical him for roles efforts and update Vice experience to in President due welcome development to team depth, Mark him Operations. got Martin consulting technical his With when to Star at to construction in some our he new project experience extensive welcome and through Golden to the to turn diligence I'll portfolio. will a skills after like are as of an Martin's operational, roles, Martin on further the Golden to in and we we

Mark Isto

we start period, on to Strong XXX,XXX guidance initial in the for reported I'll XX,XXX performance again XXX,XXX transition GEOs. the range of end period production. quarter guidance to the August on raised period for November in exceeding to production and reach X-month September December quarter. comments us We Thanks, record guidance a allowed with Slide of early our for our GEOs the revised our transition GEO of reflect XXX,XXX some GEOs the top X Bill. provided in

metal same rather As used GEOs Bill prices mentioned, price production metal due was most of were we this to our set approximately as than impacts XXX,XXX to guidance. outperformance volume using the

many Turning our December to some provide the commentary Slide reporting X. quarter. operating I'll I'll that before note of we're on counterparties.

our provide volume interests. million, XX,XXX able -- I on to revenue of all with won't Overall GEOs. was $XXX don't I of So specifics be

the total million that Voisey's year in Our metal the Bay quarter. increases prior of segment revenue representing following to into prices. attributed revenue, higher were Cortez first of to XX% $XX.X Notable quarter, an due contributed production pit base half increase stability a of XX% revenue the higher recovery for from with XXXX issue about Royalty impacted over wall

XXXX. December interest was the the We partially revenue in period revenue had of to underpayments contribution profits of quarter Laverton a also from revenue royalty, and were These due to the quarter net September lower large South quarter a NPI in We Leeville. of which our XXXX recognized increases from true-up recognition. timing mostly by the previous due in of revenue offset the

of million X% side, up $XXX prior was quarter. from stream about year revenue the On the

track from At sales Gold Pueblo due stream. issues XX,XXX continue lower of Mount by minimum to further continued delivery and during silver recovery now deferral the Milligan circuit. and the December silver was NX lower copper revenue the ounces approximately approximately New deliveries partially saw agreement, to prescribed were The levels Viejo, recovery of we with stream in is XXX,XXX sales near and ounces. Recoveries deferred Khoemacau the offset silver quarter. from balance

issue will recoveries don't addressed. variable be silver This it we remain associated our expect and perspective, revenue. the expansion fully completed project recovery and on timing have We cash a lasting to impact the until expect can silver and remains silver with bottlenecks is highly any circuit silver from flow

ramp-up ore XX% the an Turning a to with related with in XX% including impacts the to to from progress COVID-XX. due unavailable protocols, approximately about in startup was of and starting of the combined up of by mining which Botswana skilled I'll Botswana. typical than affected were of shifts. skilled Slide the operators When new hard give In operators quarterly but mine slower X. December, operational body about of on production mining quarter highest shortages issues operator last workforce, in work the a in KCM our -- was operation COVID since hit progress has to due expected. November, reported XX% was Khoemacau continued Omicron call Khoemacau December, in been to update exception. slow variant no

KCM appears tonne which of the only period ramp-up is our last passed. Fortunately, the has the XXXX later and per the worst to full and than mining fourth extended approximately the January production target. quarter reach now about the call. we is the you schedule to is by of was X workforce quarter gave have of day Omicron production XX,XXX X% wave and Currently, of self-isolating XX% expecting on

forecast It model, While next operational ramp-up we're I and flexibility more are to will worth as is metallurgical in Orebody ground open the conditions quarters, expectations. areas line for recoveries as resource are the not line highlighting expect providing expected. up. grades are with detailed wits mining continue in with increase the

the that With XXX% required confident Gold further interest also working levels. has planned per support be be any provided all Stream additional X aim the increase are respect project full to to manpower resources been payable available ensure position, KCM's stream to alongside event up. ramp to and The production reach to contribution. capital at due million, equipment is would the We the expected to we full equity impacted financial to has support production is the silver, liquidity allow Khoemacau available full the and as year. million million as ounces Stream. we're we In RK is to finance X.X well expect on the which of and million includes with ramp-up, Silver Mine parties $XX.X This that slower Royal and discussion of contribute will sufficient $XX.X discussions shareholders, to production providing currently KCM KCM in the under final

Slide earlier and expect production guidance million million is of plan an an started this towards was in update Milligan, of on to have I'll the expected challenge be recent at turn a high-quality unforeseen ounces of khoemacau.com, in quarter. KCM They COVID-XX Also brief pleased copper and development for project XX couple additional XX of ounces make which million handling X exposure Centerra half release second developments. this encourage plan KCM's gold review to pounds management XX% to on the progress. and to you situation XXX,XXX other the copper, to to to and and Mount of weighted project. an this compares increased in that XXXX XXXX. XXX,XXX At for week gold updated of ramp-up their a pounds website of to progress has of now on comments detail with provided I XXXX. an information production to While actual place, well well-engineered life production well provided XX.X is in when XXX,XXX we're second XXXX, the of some mine

increases XX,XXX also in They guidance plan ounces Turning the NX to in ounces, XXXX above into reserves NX have year-end expect of Matinha Ero and bring of production the XX,XXX to and actual M&I XXXX new XX,XXX project provided to vein XP and in started XX production pleased announced when resources of of XX% call mine Gold. XX% year. the achieved XXXX. near-term the the results. see per potential. stream, Ero and sustained to like ounces potential I'll Copper for XX,XXX in this we're to review long-term gold Paul to plans production realize financial approximately to has quickly Gold over now acquired We increase a of their our advanced how NX of we turn of the

Paul Libner

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

about had We the for $XX.X Revenue was increase segment, dominant, prices making silver during ended our production an a his sales, quarter. streaming XX,XXX be the which the from compared continued year our ounces and and Mark Most $X I DD&A XX% Also year about average and was the Gold, was by prior which driven over quarter to period. performance, strong With the compared increase discussion, mentioned followed to excludes steady prior down year million be revenue copper of of together XX% the were was price For period. metal million to total Gold quarter. December X% this $XXX million copper respect prior at revenue to prior increase of XX%. quarter, XX%. GEOs, X%, average by will strong specific the price Cost remarks. comparing prior at was quarter contributing to silver or in XXXX, contributed XX, to while revenue, the the of which to increased our equivalent the gold period. deliveries of $XX.X as NX the in up the XX% of million, about was at of second quarter, about and Khoemacau over gold up operating year

million, $XX.X the year $XX.X up in million was from quarter. expense slightly DD&A Our prior

our for per our year. DD&A per a due increase per were $X.XX change operating result quarter quarter. in basis DD&A very adjusting within of year on which increase flow portfolio. expense the for per prior The After in expense was value GEO the performances and a GEO share, over proceeds a $X.X compared the reported $XXX our of both a royalty stream year million, the million share. to or Our was our We stronger GEO and dollars equity $X.XX adjusted $XX.X earnings another quarter $XXX royalty million the primarily were related securities, at cash received prior was a strong higher per fair from Earnings decrease $XXX in GEO prior to XX% per from XX% interest. was to

Turning comments period guidance. few to transition to the like Slide performance XX. make to our I'd a on relative

in guidance due our above to in As GEO within transition stronger revised period the his the remarks, slightly volumes Mark sales portfolio. covered came range

per below royalty GEO. range GEO to when lower of in to compared guidance transition of Our range due of GEO period provided guidance end slightly portfolio. contributions came earlier $XXX DD&A our the The the $XXX our our DD&A $XXX to bottom per from largely was per better-than-expected earlier

of most in the have portfolio carrying many lower they As depletion have years, our for rates. royalties overall been lower values then and

expect XX%. sales Our to effect during effective GEO move in XX.X%, the our tax guidance to of earlier was With calendar reported rate to line the period, begin period with rate XX.X%. tax the for the year-end effective our total X-year discrete range items guidance. transition which tax we XX% providing was Absent of reporting, was

their of provide GEO this several our we We the not able calendar quarter available. for to production today. XXXX, second counterparties own released sales As the in XXXX do provide or is made guidance guidance yet to early have all information were once expect guidance our

However, operational position the a potential Slide now the summary are start first from any year the will impacts we with segment slower of of range March XX and at quarter to the for and the to sales XX,XXX to looking quarter a GEOs. financial our end provide to quarter. absent turn forward XX,XXX of our I Stream expecting COVID,

debt-free and $XXX revolving growth tool as $X.X accretive the full position $X financing liquidity. working million of balance key shareholders. revolver operating as debt our with our repaid strategy Our year flow billion to cash of line In million liquidity quarter early with capital available provide $XX facility and remaining to the the million $XXX credit in we revolver view continued and of to December using we billion and a available. the undrawn cash, strengthen manage of with ended ended to a our We level,

generate Our debt that as are repaying Mark operating XXX%. the has the under measured to interest to would Silver continues in as flow stream business KCM advised later have draw and from we XX% million cash respect we our commitment flows, debt a using mentioned, $XX.X advanced it available million $XX.X February, currently in then which cash Khoemacau payment in KCM. With Stream to that strong remaining comfortable allows. outstanding agreement, intends stream our to to increase way

NX Copper Stream, million payments certain XXXX, Gold also we potential part the up of targets. As of meaning and have to through $XX depending Ero resource on exploration

expect turn Bill will made our That on for We either these to funding cash that quarter, for for comments. call and our will performance financial the the be available back concludes my I now from comments closing of resources.

William Heissenbuttel

a we looking very building and We we're Paul. on strength Thanks, calendar ended in as strong that XXXX XXXX. forward position, to start

new to perform Our diversified balance continues act position well, metals well flow on us strong to and cash and opportunities. portfolio sheet focused precious our

XXXX We ramp throughout to on expansion in half year several portfolio. study and up year. the expected from the continue project's also of a expected in second anticipate assets pre-feasibility to positive Khoemacau news is the is the the in

first is first Our payment from by of royalty due end quarter. Red the the Chris

XX mine Existing plan to New in looking Milligan release plans for and the royalty the to second and expected mine by And the to in plant optimized Hills may first first process of the Bellevue of for production in Centerra and the work year. Gold life technical production in Pueblo King Gold the while study continue Australia middle NX may complete at exploration We on project. is see be updated of expected quarter report with the Viejo year. longer-term an finally, the higher expansion at undertaken of River issue Rainy plan gold to Mount construction see of at is initiation NX the the quarter. underground further the interest end

the in in anticipate our plan compensation first ESG factors short-term the of the releasing certain front, was our include we to year. On and incentive half period first ESG modified this ESG report transition

opening the how back to inflation insulates my namely in XX and to to business hosting direct pressures detail other have hope update well I faced us of as be year, I'd topics investor like and something go as as many you'll reported a to that April model finish coming by operating on inflation remarks, recent cost mentioned join we us exposure into will interest. these on this companies, our we X%. from virtual of by X% We of which

the margin to We have our XXXX. of disciplined unchanged XX% low quarter quarter of not XXXX the history of EBITDA margins December our seen compared maintaining With December inflation erode our and adjusted costs, I'll our G&A was that and expect prices high leverage remarks. consistent stable that our margins. maintain the concludes I questions. while prepared to line we'll open Operator, gold now for maintaining and continue high to in

Operator

Instructions] Langton Tyler from come [Operator Our first question with will JPMorgan.

Tyler Langton

reiterate Paul, I XX,XXX stream I the to Just -- for for volume, wanted that guidance got gave to Was XX,XXX? I start, QX. that just know sure make to could the correctly. you you

Paul Libner

It Tyler. XX,XXX segment the to correct, quarter sales, XX,XXX. That's was stream

Tyler Langton

have And at or you what just of Pueblo to decline, deferrals are you -- that the provide do with there? the can kind Viejo just kind anything of any just terms any sequential do color And color any of it? is driving assets in

Paul Libner

Yes.

there's Let me a turn it but over little timing. bit to Mark, of

But a some As turn and little we've may schedules timing over give items. sometimes notable more Mark I other bit have it color said, to delivery on as we changes such. to in

Mark Isto

XXX and item, the to think, ships you're is from related XXX They in Mount between having days. and Paul, exactly Sure. Yes. Milligan timing right, come really that shipments I around is vary big early.

them. to determine we can when So should be schedule exactly it difficult

fallen that March had quarter. December in the sales quarter into have -- could So the received or would we we --

item. really the So biggest that's

Tyler Langton

sort then of, Bill, risk, of geopolitical that you sort think And guess sort guess, sort helpful. new I headline sort I of seeing are new I ones look when like guess of even projects? Chile, you do pause in around like of sort and developers And any any Okay. looking you are at of in guess, of of and seeing headlines at nationalization. That's you investments? some Or we're these kind -- terms impact I proposals of of are causing sort you

William Heissenbuttel

take conditions seems Sure. industry a be mining It investments, current been into some to have to look the the country. operate our that I decades to influence our amazed extent. difficult does And we I've account how through decision-making you always to able situations. out. mean, very typically lot within of

So I but try yes, to unless at it's when act, market the a significant. to answer of your us trends those the looking out take those are is, absolutely consider countries. we question or of not moves a trends short let short-term balancing completely new But we're bit factors

Operator

will from with question [Operator Chiu Cosmos come Instructions] next Our CIBC.

Cosmos Chiu

first more much a additional shareholders. with or situation? can in tight I'm asking Maybe question with exercising Khoemacau. my share their the $XX.X and we sure not you you. how more impact. from concerned financial should is equity you lender the are liquidity need their for million how financial think I money us, situation? They're KCM terms concerned they They're of clearly, is support but bit on given or how be And how COVID-XX

William Heissenbuttel

question. for thanks Cosmos, the

that request association to with this the of because a sort see an review Mark, little have we do I'd okay how hopefully, funds it of done is opportunity I for give you? plan. in perhaps in give to talk think Mark the the one about is with will like things confidence you we

Mark Isto

Yes. Yes, sure.

do are of stream So things how draw, a on going. every Cosmos, level with we diligence

respect and -- works deep mine and their a a and out did found this a is. would would that the that share do I orebody confirm feel and definition fill together, putting we design with stoping substantially projected are took We usually look it and see XXXX. to side all look and the operating are I costs the of I see on definition the we productivities and in we drilling to than that by We flow all with were how sure exceeding carrying and and that perhaps they've with they're we could make do, I'll they look and confident drilling to did. I actually you are bit any out projected we what the we The and their think widths, that with logic the And we at dive sense all make into mean more liquidity to for grade what one, took assumed the these that things get we schedule on that at development now in or mean, line supportable. achieved of they're they've what happy -- cash schedule, gaps. recoveries. well-engineered out achieving -- and plan, try a in they've got very being the Khoemacau milling say

Cosmos Chiu

guess maybe of it -- impact I that to not what's variants you terms really in want start-up. know. you but going Could yes, around, Great. Yes. And an is the situation come the based COVID-XX like another never hopefully don't Botswana fact in on we the vaccination? talk on had about

an and bit to is it could the again would point something than So how to around, like time tighter like is financial liked. happening a they it once had situation that the it getting this be where because again, and impact have vulnerable the workforce sounds the country

Mark Isto

think Khoemacau, miners I to I just employees impacted Yes, he and over rate the and that It's of to contractors the vaccination by at impacted mentioned December is skilled Yes. in yesterday, actually mean skilled CEO quarantine. significantly amongst the good was XX%. I their speaking about. But a miners made XX% -- was probably production sure. question. many the XX% The as was comments with we

COVID very have the know can't and about very speak vaccination site have I but site don't well country, particularly the protocols is high rate. around they issues. management a I they -- So if testing rigorous vaccinated and

around they're lot that. So that a everything doing of they can confidence

Cosmos Chiu

quick of modeling Khoemacau, questions Labraton, here. this cost noticed than not the but one -- little South for $X.X million. X smaller bit, -- quarter Australia. that the small, smaller million. Maybe your in this was gears $X.X noticed one of around year I Last was ones Great. switching that a I time

I a question the representative And think rate? how how guess I beat my model we earlier what's drove look this? of we should going run is, at part, this, today. And in more forward? should

William Heissenbuttel

Yes. Cosmos. I Thanks to for the question, And referring NPI. our think you're

Cosmos Chiu

Yes.

William Heissenbuttel

of Which itself volatility. Paul, to maybe you just in But a give would in we there. help. little and I'm can sure you means much want not but Paul background give can terms of forecast,

Paul Libner

Yes. Thanks for the question.

heard believe, the within Corporation. of As XXXX, depth I International in past, and say is when royalty We Royalty one the portfolio acquired we our you've portfolio. acquired back the strengths in us of optionality the this

So Northern within on certainly days June But is from see us the bit dollars, to been actually to a and royalties, calculated as nice XXXX. Australian you which NPI XX. contributions of the to NPI in provide this XX it's some well paid is as fiscal Star's color due annually more XXXX, year-end, has in and

prior which in versus our as year. $X.X that XXXX Mark an received made as only cash So the large basis as during common the don't revenue on less mentioned revenue period can has his with so the is of -- calculation But accrual royalty in a receive but basis. recognized comments, NPI for much calculation up visibility December XXXX, was contracts, million more or the part which the that we and you in we have into and recognize mentioned many NPI

quarter. and of quarter, the would seeing at Northern NPI was recent the the is really received South acquisition during purchase its record by Laverton like XX I you're to December Northern which to XXXX XXXX recognized rules our that -- But add at Star, Star the accounting our While value. require Saracen in decrease interest why fair September would

the then Star's be this reducing depletion increase value Laverton, So to on property South Northern calculated accounting could may net profits which the calculation. attributable increase would thus NPI their at our that carrying exercise possibly

but help? accounting royalty Does are it Royal into this exercise, calculation, that So future. have again, the of could visibility much the this Gold we impact kind in owed don't that amounts to

Cosmos Chiu

it that. forecast might again Yes, Yes. to from And try our get we'll best you what does.

what taxes. I always guess, The other be that it to drove slightly on period, transitional modeling question again, rate? and should income we XX% basis? But what good, my It's under. to XX.X% forecasted I is when have it see comes was I you of a have lower-than-expected terms for XX%. in question to taxes go-forward the Paul, model tax And is, the

Paul Libner

I'll answer typically, -- provide our to guidance as you said, tax we annual our quarter. what first during we've

really I there or down we transaction of really a a authority confidential, much, too have not was but call. point on settlements Really, benefit, So tax rate -- the it's And during specifics. was But the I'm favorable effective for And was weren't lowering of rate that X settlement tax able the did drive our X. we'll period, a at provide by it item our that conference on There foreign the it our that, created quarterly small to in uncertain comment discrete that long-standing a RSC anticipate during of the period. would position received the tax be with couple that terms able the part so guidance next we quarter. -- taxing tax back did that result that discrete a agreement The of tax the can thus items agreement to I share are dispute. XXXX.

So it's we forward. anticipate going seeing something that don't

Cosmos Chiu

for guidance Royal X-year Bill? of Is Gold wrap-up we're a XX-year Clearly, X bit. to that that you kind Great. you forward in your up guidance. peers longer-term of guidance in well? that be And considering, my Maybe looking as guidance, giving Some mentioned XXXX question is your little have terms memory you also the a jogged longer-term would given last Bill. Have given of out then guidance. any thought industry guidance, something

William Heissenbuttel

I say I'll I'm not control I'd just but know Cosmos, for in this a -- view, bit don't alone properties. XXXX. we these

We rights. we've we because have have lot good where visibility of and don't visibility, we have don't a assets contractual got some

that not with had give So change for we months to on year, we X-month to the range this that just close difficult. me X to And last guidance and we’re guidance is the started very later. properties

I might you you that. the up end think own if doing not properties,

own. the So when let's something guidance. we X on give I XX years properties, you, or don't we'll know would maybe, X again, it, that's -- if let's that consider maybe And worth term. to with about be don't annual start say see years, we longer guidance, good honest do with feel see you talking how respect you. to what we I we to

Operator

Wolfson RBC will Josh come Capital Our from [Operator question Markets. Instructions] with next

Josh Wolfson

discussion Back release the mentioned some to with Khoemacau, the lenders.

Given Royal with overrun part was group also its the Gold of facility.

any was there there other there? million. the investment and the is terms beyond of debt to think were outlined Royal place? Or considering I existing potential the that in revision here $XX stream Is means

William Heissenbuttel

right What $XX.X that's and overrun in is we're really release. press we're the it under Khoemacau stream to what we all has available have anticipating now million looking at. the

Josh Wolfson

the years. And terms Okay. was that X were revision is to in that something there existing for repayment So no think set I it debt? like

William Heissenbuttel

Correct.

Operator

Jakusconek question from come will Tanya with Scotiabank. next Our

Tanya Jakusconek

silver trying a I X. Viejo. understanding I to I Pueblo recovery. on just better Just to have on wanted get could, this back, if circle I'm just

to expansion it's going variable. I go think plant you Pueblo at that be through quite we mentioned as the Viejo,

minimal to should we year back contribution the of this deferred So these isn't may until or be Pueblo us the of through getting many that returning since going thinking from plant XXXX, not to expansion be ounces we Viejo? done be end that

William Heissenbuttel

but we've be Tanya, not sure you'd to that Mark, going we anything I much there's can commented add I'm turn is what to there to on. to? want Mark, But might over

Mark Isto

to variability predict It's as we've hard months the changing. don't XX to months, much you've a really isn't that that XX would of last add. to see say is recovery for really been seen lot I -- seen. very going full And there the variability Yes, over I what really quarter. be

steady would So we my bottlenecks that worked our thinking expectation will as expansion recovery continues. the situation. a then out we're variability is and see And informed with being more get silver is these the

Tanya Jakusconek

what and a what is bit you talk circuit the about [past now us can then give little is -- but you these and sales, the are them]? maybe Maybe issues what silver can't

Mark Isto

perspective bottlenecks folks a various on comes overwhelms and through and site focused reading silver that and circuit production up mean on as happens up and been -- would the the tonnes process is not plant. the what is there's it's I monthly talking is from the against silver happens with circuit you at gold with end what Yes, for push associated the in my bypassed the -- and And recovered. silver on really tons reports And expect. getting or when will push the reasons

the million going incentivized XX very they thing the site have the and I'd think reserve X the silver year silver. recover of a ounces is is you X I I over grade to of that with is million grams mean, circuit. processing, X leave at tonnes through

-- and credit a cost. a partner having nice on XX% JV on having cash So cash costs byproduct

to it we're and completed at So that. the incentivized managing that recovery. variable expect settle on expansion after think the will is comforted silver to we And proactive they're until site down it be very be

Tanya Jakusconek

that they have you do jam the mill just to with the gold? continue comfort don't What

Mark Isto

I Well, will get guidance -- that mean, circuit folks. push is -- they year. would tonnes continue that's they with sense the addressed site bottlenecks I my from silver but will -- we've in And expansion. continue received this to the that But the the in think the that associated

Tanya Jakusconek

Okay.

are so do a bit with So maybe on the bottlenecks I more you me could research could what that. just share

Mark Isto

lime afraid on Please, a least get the it bypassed I'm circuit a the heat are inputs not off of both into whole what the you the what's restricted. for or the hate is managing circuit, boil circuit, because of key and or to the correct. happening the gets circumstances both on my I -- to the which those is lime there into heat reasons effectively, important I on need inputs X But are top and a and of number managing most circuit get the go of will head where need the based you important lime

Tanya Jakusconek

offline. we'll All it right. Maybe take

to back the which can talk Bill my come maybe on. question, to second want just can talk team or I Okay.

environment. your the because strategies to I review the Just last have just back strategy changed little to to wanted come deal some want while. over

space in what gold? it to Or to precious your whether continues anything there at? metals changed review want the focus, looking in Just has you're with be metal

William Heissenbuttel

changed. Yes. Nothing to answer has Tanya, that. happy

probably and that, that good projects something gold look been within X you'd have entertain we project, precious. and given heard you've at not be times consider in the them then precious I to than silver find probably quality if X will me are think is we absolutely was hear revenue I that is X I we ruled we operator, is if and gold it quality we'll you X metal our say But more order. that something like jurisdiction, say we and to silver first for non-precious, believe, we mix that that I've ones and clear non-precious think take that

nothing's So changed.

Tanya Jakusconek

on just then to metals we talking And there's battery energy non-precious and/or side, and/or about clarify metals there? or that. the just anything base else no in want are still I coal other Okay. or

William Heissenbuttel

totally And not and to feel that that have think will on market some I we skills also I think be mining of comfortable Yes, that think, it, operation, where in. think market, are mean mining But the I I to say apply risk profile understand. could operation understand, would I a have metals battery want not might I side. it metallurgical energy. side, Mark's the the to on -- the by I I be being there a I'd

understand market, the So that's think if the it. I understand can operation, can we we

Tanya Jakusconek

Is circle you're balance Last still what $XXX sheet the precious back repair. project we to the space. seeing? million we can the talked funding just just then that And development opportunities $XXX range quarter, million about Okay. in metal and for to

William Heissenbuttel

Breeze of give answering to like Dan questions. I'd shot a Tanya, these some at

Tanya Jakusconek

Absolutely.

William Heissenbuttel

are you Dan, available?

Dan Breeze

well. are hope Tanya, question. good Bill. you And Sure,

what talked pretty $XXX the in the that seeing about size of I think now, terms $XXX range we we're consistent range. is million million to

perhaps you if look equity year issuance I year-over-year. precious what's the metals, down think last it at -- newer for is was and

pressure to equity. hard what's developer raise companies, And companies, of it's happening, think the the so smaller on Tanya, is some I

opportunities seeing better which we're market so attract And for royalty interesting. equity is and financings that a in -- probably would

could opportunities. the smaller, sub-$XX interesting. over there packages, looking So I They're be And these meaningful we're example, think for the upside of but eyes term. are longer through where at these our land million

think seeing we're opportunities newer I in part that the terms that's the So more of recently.

Tanya Jakusconek

development how understood on assets packages or So I it. development is of on royalties that

Dan Breeze

Yes.

We are -- development seeing but for third-party on primarily royalties, capital. some

So you to could million type imagine $XX a structure company that If would open a unavailable, for potentially markets that's say, million. $XX they're look then at the royalty financing. to equity for,

a newer And as I mentioned. that's focus, so

Tanya Jakusconek

opportunities that million still, $XXX in $XXX assuming then some And that range. million are I'm stream to there Okay.

Dan Breeze

kind right use set is well, in see last capital sheet at opportunity help as we well that weighted like There of terms year. last I'd you still it purchases proceeds. like development on know, that in say to are. it's We good market that the say saw see I'd year. we We A now. of right last another as well. seeing purchase, now a looking back what transacted the pipeline. just -- you back opportunities. have balance the level XXXX much to as then And but bit We're see not strengthening, go towards as of volume And year, to was little asset as very looking of to we much as fund

Tanya Jakusconek

to have I some check appreciate moment wanted I to that. those strategies moment from just changed.

So really the insights. I appreciate

Operator

our This back session. to remarks. I to Heissenbuttel for like would the turn conference question-and-answer closing over Bill concludes any

William Heissenbuttel

today. time interest thank on quarterly to our updating want Royal and for Take Gold, us the during I really taking to We the Well, in progress next look you appreciate you care. we call. your to just forward join

Operator

The Thank presentation. today's now for conference has concluded. you attending

may now disconnect. You

Royal Gold (RGLD) 17 Feb 222022 Q2 Earnings call transcript