Royal Gold(US:RGLD)2021-11-03 16:00Revenue and Sales Performance - Total revenue for the quarter ended September 30, 2021, was $174.4 million, an increase from $146.9 million in the same quarter of 2020, driven by higher gold sales and an increase in average copper prices[112]. - Revenue for the three months ended September 30, 2021, was reported at $174.4 million, with an average gold price of $1,790 per ounce, silver at $24.36 per ounce, and copper at $4.25 per pound[135]. - A 10% increase in the average gold price would have increased total reported revenue by $12.9 million, while a 10% increase in copper and silver prices would have increased revenue by $4.0 million and $0.6 million, respectively[135]. Metal Prices and Market Conditions - Average gold price for the three months ended September 30, 2021, was $1,790 per ounce, contributing 73% to total revenue, compared to $1,909 per ounce and 75% in the same period of 2020[81]. - The average copper price for the three months ended September 30, 2021, was $4.25 per pound, contributing 14% to total revenue, compared to $2.96 per pound and 11% in the same period of 2020[81]. - The company anticipates continued volatility in metal prices, which significantly impacts revenue[80]. - The company reported a significant impact on earnings and cash flows due to fluctuations in the market prices of gold, silver, copper, and other metals[134]. Production and Deliveries - For the three months ended September 30, 2021, gold stream deliveries from Mount Milligan were approximately 10,800 ounces, down from 19,600 ounces in the same period of 2020[102]. - Silver deliveries for the quarter ended September 30, 2021, included approximately 377,800 ounces of normal-course stream deliveries and approximately 18,700 ounces of previously deferred deliveries, with 418,300 ounces remaining deferred as of September 30, 2021[104]. - Production attributable to royalty interest at Cortez was approximately 99,600 ounces of gold for the quarter ended September 30, 2021, compared to approximately 37,600 ounces for the same period in 2020, reflecting a significant increase[108]. - Barrick expects Pueblo Viejo to deliver gold production guidance of 470,000 to 510,000 ounces for calendar 2021, representing a 60% interest[106]. Acquisitions and Investments - The company acquired a 1.0% net smelter return royalty for $165 million covering the Red Chris Mine, which produces gold, copper, and silver[86][87]. - The NX Gold Mine acquisition involved a $100 million advance payment for 25% of gold produced until 93,000 ounces are delivered, with a price of 20% of the spot gold price for each ounce[84]. - Net cash used in investing activities totaled $272.7 million for the three months ended September 30, 2021, compared to net cash provided of $49.7 million in the same period of 2020, mainly due to the Red Chris royalty acquisition of $165 million and the NX Gold Stream acquisition of $100 million[125]. Financial Position and Liquidity - As of September 30, 2021, the company had current assets of $232.1 million and current liabilities of $60.3 million, resulting in a current ratio of 4 to 1[119]. - The company had total liquidity of approximately $1.1 billion as of September 30, 2021, including $900 million available under its revolving credit facility[121]. - Net cash provided by operating activities was $129.9 million for the three months ended September 30, 2021, up from $94.2 million in the same period of 2020, primarily due to an increase in cash proceeds from stream and royalty interests of approximately $33.1 million[124]. - Net cash provided by financing activities was $77.1 million for the three months ended September 30, 2021, compared to net cash used of $49.8 million in the same period of 2020, attributed to increased borrowings from the revolving credit facility[126]. Operational Challenges and Risks - The COVID-19 pandemic has caused temporary operational curtailments, but the overall financial condition has not been materially affected to date[82]. - The company highlighted risks associated with lower metal prices, operational disruptions, and changes in regulations that could materially affect future performance[132]. - Forward-looking statements indicate expectations regarding financial performance, including sales volume and revenue, but actual results may differ materially[130]. - The company emphasized the importance of monitoring macroeconomic conditions and market trends that could influence its operations and financial results[131]. Cost and Income - Cost of sales increased to $27.2 million for the quarter ended September 30, 2021, from $21.9 million in the prior year, primarily due to increased gold and copper sales from Mount Milligan[116]. - The company recorded net income of $70.2 million, or $1.07 per share, for the quarter ended September 30, 2021, down from $106.9 million, or $1.63 per share, in the same quarter of 2020[111].