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Royal Gold (RGLD) Provides Updates on Operations for Q2


Royal Gold, Inc. RGLD provided an update on second-quarter fiscal 2018 (ended Dec 31, 2017) operations. During the quarter, RGLD Gold AG, the fully-owned subsidiary of Royal Gold, sold approximately 62,000 gold equivalent ounces consisting of approximately 52,000 gold ounces, 470,000 silver ounces and 800 tons of copper related to its streaming agreements. The company ended the quarter with 14,000 ounces of gold and 273,000 ounces of silver and 400 tons of copper in its inventory.

Average realized prices of gold and silver were $1,272 and $16.79 per ounce sold, compared with the prior-quarter figures of $1,287 and $16.77, respectively. Average realized copper prices were $6,746 per ton compared with $6,562 per ton in the prior-year quarter.

In the quarter, cost of sales was roughly $319 per gold equivalent ounce, down from prior-quarter figure of $334. The cost of sales is based on the quarterly average silver-gold ratio of roughly 76 to 1 and gold-copper ratio of approximately 0.19 ton per ounce.

During the fiscal second quarter, Royal Gold paid back $50 million of the outstanding balance amount on its revolving credit facility. As of Dec 31, 2017, the revolver had $150 million outstanding which translates into available revolver capacity of $850 million.

Shares of Royal Gold have moved up 25.8% over a year, outperforming the industry’s 3.7% growth.

Royal Gold reported net income attributable to stockholders of $28.6 million, or 44 cents per share, in first-quarter fiscal 2018 (ended Sep 30, 2017), compared with a net income of $29.8 million or 46 cents recorded a year ago. Earnings per share beat the Zacks Consensus Estimate of 37 cents.

Total revenues were $112.5 million in the reported quarter, down about 4.6% from $117.9 million recorded a year ago. The figure trailed the Zacks Consensus Estimate of $114 million.

The Zacks Consensus Estimate for the fiscal second quarter for earnings is currently pegged at 42 cents, reflecting a year-over-year growth of 16.7%. The Zacks Consensus Estimate for revenues for the quarter is $116 million, reflecting a year-over-year growth of 8.5%.

Royal Gold, Inc. Price and Consensus

Zacks Rank & Other Stocks to Consider

Royal Gold currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Kronos Worldwide Inc. KRO, Koppers Holding Inc. KOP and Huntsman Corporation HUN, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have skyrocketed 105.5% over a year.

Koppers has expected long-term earnings growth of 18%. Shares of the company have rallied 23.6% over a year.

Huntsman has expected long-term earnings growth of 8%. Its shares have soared 72.6% over a year.

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