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Royal Gold (RGLD) Q1 Earnings Top, Up Y/Y On Higher Prices

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Royal Gold, Inc. (RGLD - Free Report) reported adjusted earnings per share of 82 cents in first-quarter fiscal 2021 (ended Sep 30, 2020), beating the Zacks Consensus Estimate of 80 cents. The bottom-line increased 36.7% year over year.

Including one-time items, the company reported earnings per share of $1.63 compared with the prior-year quarter’s $1.07.

The company generated revenues of $147 million, reflecting year-over-year growth of 23.7%. Stream revenues increased 23% year over year to $107 million, while royalty revenues were up 25% to $40 million year over year. Gains from higher average gold, silver and copper prices contributed to this top-line growth.

Royal Gold, Inc. Price, Consensus and EPS Surprise

Royal Gold, Inc. Price, Consensus and EPS Surprise

Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote

Operational Highlights

Royal Gold reported volume of 76,900 GEOs (Gold Equivalent Ounces), down 4.6% from the year-earlier quarter. Average gold price was up 29.7% to $1,909 per ounce from the year-ago quarter.

The company’s cost of sales was up 10% year over year to $22 million in the fiscal first quarter, primarily on year-over-year increases in gold, silver and copper prices.

General and administrative expenses came in at $7 million, flat year on year. Adjusted EBITDA was $117 million, up from the year-ago period’s $91 million.

Financial Position

Net cash from operating activities was $94 million in the fiscal first quarter compared with the prior-year quarter’s $71 million. The company paid out dividends worth $18.4 million during fiscal first quarter. Royal Gold ended the reported quarter with $413 million cash in hand, up from the $319 million witnessed at the end of fiscal 2020.

At the end of the reported quarter, the company’s total debt was $271 million, down from the $300 million recorded at the end of fiscal 2020. As of Sep 30, 2020, Royal Gold had $725 million available and $275 million outstanding under the revolving credit facility with total liquidity of $1.1 billion.

Price Performance

Over the past year, Royal Gold has gained 8.1% compared with the industry’s rally of 49.5%.

Zacks Rank & Stocks to Consider

Royal Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Newmont Corporation (NEM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) . While Agnico Eagle Mines and Newmont sport a Zacks Rank #1 (Strong Buy), Barrick Gold carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle Mines Limited has an expected earnings growth rate of a whopping 103% for the current year. The company’s shares have rallied 38% over the past year.

Newmont has a projected earnings growth rate of 98% for 2020. The company’s shares have gained 72% in a year’s time.

Barrick Gold has an estimated earnings growth rate of 99% for the ongoing year. Its shares have appreciated 67% in the past year.

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