Back to top

Image: Bigstock

Royal Gold (RGLD) Provides Operational Update for Q3

Read MoreHide Full Article

Royal Gold, Inc. (RGLD - Free Report) recently provided an update on third-quarter fiscal 2017 (ended Mar 31, 2017). During the quarter, RGLD Gold AG, the fully-owned subsidiary of Royal Gold, sold around 58,000 ounces of gold and 322,000 ounces of silver under streaming agreements. The company ended the quarter with 15,000 ounces of gold and 374,000 ounces of silver in its inventory.

Average realized prices of gold and silver were a respective $1,216 and $17.35 per ounce sold, slightly lower than the prior-quarter figures of $1,226 and $17.51.

In the quarter, the cost of sales was roughly $356 per gold equivalent ounce, down from $373 per gold equivalent ounce in the previous quarter. The cost of sales of the company is specific to stream agreements and is based on the quarterly average silver-gold ratio of roughly 70 to 1. Royal Gold will release third-quarter results before the market opens on May 11.

During the quarter, Royal Gold paid back the outstanding balance amount of $45 million on its revolving credit facility. As of Mar 31, 2017, the revolver had $300 million outstanding which translates into available revolver capacity of $350 million.

Royal Gold outperformed the Zacks categorized Mining-Gold industry in the last three months. Within the said timeframe, the company’s shares rallied around 6.3% compared with roughly 0.8% increase recorded by the industry.


 

Royal Gold reported net earnings of $28.1 million, or 43 cents per share, in second-quarter fiscal 2017, higher than net earnings of $15.1 million, or 23 cents, reported in the year-ago period. Total revenue of Royal Gold increased to $107 million in second-quarter fiscal 2017, up 9.1% from $98.1 million in the year-ago quarter. The increase in total revenue was mainly due to growth in stream revenues and higher average gold and silver prices.

Royal Gold, Inc. Price and Consensus

Royal Gold currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Better-ranked companies in the basic materials space include Hi-Crush Partners LP , Lundin Mining Corp. (LUNMF - Free Report) and BHP Billiton Limited (BHP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hi-Crush Partners has an expected long-term earnings growth of 20%.

Lundin has an expected long-term earnings growth of 34.1%.

BHP Billiton has an expected long-term earnings growth of 5.6%.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BHP Group Limited Sponsored ADR (BHP) - free report >>

Royal Gold, Inc. (RGLD) - free report >>

Lundin Mining Corp. (LUNMF) - free report >>

Published in