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Royal Gold Reduces Cost Exposure With Hod Maden Stake Restructuring
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Key Takeaways
RGLD cut its Hod Maden stake from 30% to 15% for a new 2.5% NSR royalty interest.
SSR Mining will sell its Artmin stake to Lidya for an uncapped 4.0% NSR royalty on the project.
Royal Gold expects about 9,000 gold equivalent ounces annually in the first five production years.
Royal Gold, Inc. (RGLD - Free Report) announced that it has inked a deal to reduce its direct equity stake in Artmin Madençilik, the joint venture company that fully owns the Hod Maden Project in northeastern Turkey. Along with preserving the value of Royal Gold’s existing interests in the project, the deal is expected to reduce the company’s exposure to capital and operating costs.
Details of Royal Gold’s Restructuring Deal
Under the new agreement, Royal Gold is cutting its stake in the project from 30% to 15% in exchange for a new 2.5% net smelter return (NSR) royalty interest. Royal Gold’s joint venture partner, SSR Mining Inc. (SSRM - Free Report) , also inked a deal to sell its shares in Artmin to Lidya. SSR Mining will sell its stake in exchange for an uncapped 4% NSR royalty on 100% of the project. Lidya Mines will operate the project with an 85% stake without diminishing Royal Gold's economic exposure to its remaining equity interest in the project.
Following the restructuring, RGLD’s combined interest — comprising the 15% Hod Maden shares, the 2.5% New RG Royalty and the 2% Existing RG Royalty — is projected to remain steady at around 4% of the company's total net asset value. The company anticipates production of around 9,000 gold equivalent ounces per year from this restructuring during the first five years of full production.
RGLD’s 2026 Outlook
The company maintained its outlook framework for 2026 post-first-quarter 2026 performance. Guidance calls for gold sales of 290,000-320,000 ounces, silver sales of 3.0-3.5 million ounces and copper sales of 21.0-25.0 million pounds. Through March 31, 2026, these metrics remained within the guided ranges, supported by elevated metal prices and expanded portfolio contributions.
RGLD Stock’s Price Performance
In the past year, Royal Gold’s shares have increased 26.9% compared with the industry’s 72.2% growth. Meanwhile, the Basic Materials sector has jumped 43.3% and the S&P 500 has rallied 33.4%.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 201% so far this year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares soared 141% in a year.
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Royal Gold Reduces Cost Exposure With Hod Maden Stake Restructuring
Key Takeaways
Royal Gold, Inc. (RGLD - Free Report) announced that it has inked a deal to reduce its direct equity stake in Artmin Madençilik, the joint venture company that fully owns the Hod Maden Project in northeastern Turkey. Along with preserving the value of Royal Gold’s existing interests in the project, the deal is expected to reduce the company’s exposure to capital and operating costs.
Details of Royal Gold’s Restructuring Deal
Under the new agreement, Royal Gold is cutting its stake in the project from 30% to 15% in exchange for a new 2.5% net smelter return (NSR) royalty interest. Royal Gold’s joint venture partner, SSR Mining Inc. (SSRM - Free Report) , also inked a deal to sell its shares in Artmin to Lidya.
SSR Mining will sell its stake in exchange for an uncapped 4% NSR royalty on 100% of the project. Lidya Mines will operate the project with an 85% stake without diminishing Royal Gold's economic exposure to its remaining equity interest in the project.
Following the restructuring, RGLD’s combined interest — comprising the 15% Hod Maden shares, the 2.5% New RG Royalty and the 2% Existing RG Royalty — is projected to remain steady at around 4% of the company's total net asset value. The company anticipates production of around 9,000 gold equivalent ounces per year from this restructuring during the first five years of full production.
RGLD’s 2026 Outlook
The company maintained its outlook framework for 2026 post-first-quarter 2026 performance. Guidance calls for gold sales of 290,000-320,000 ounces, silver sales of 3.0-3.5 million ounces and copper sales of 21.0-25.0 million pounds. Through March 31, 2026, these metrics remained within the guided ranges, supported by elevated metal prices and expanded portfolio contributions.
RGLD Stock’s Price Performance
In the past year, Royal Gold’s shares have increased 26.9% compared with the industry’s 72.2% growth. Meanwhile, the Basic Materials sector has jumped 43.3% and the S&P 500 has rallied 33.4%.
Royal Gold’s Zacks Rank & Stocks to Consider
RGLD currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Albemarle Corporation (ALB - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . ALB sports a Zacks Rank #1 (Strong Buy) at present and ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 201% so far this year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares soared 141% in a year.