Royal Gold (RGLD) 7 Nov 242024 Q3 Earnings call transcript

Hello, everyone, and welcome to Royal Gold's 2024 Third Quarter Conference Call. My name is Emily, and I will be coordinating your call today. [Operator Instructions] I will now turn the call over to our host, Alistair Baker, Senior Vice President of Investor Relations and Business Development. Please go ahead, Alastair.

Thank you, operator. to of welcome Quarter Gold's and Results. XXXX morning, our Royal discussion Third Good being and webcast this is event This live, be on call a available our website. will of replay

President available President, call General Dan are also Vice the AG Counsel; questions. and Martin Operations; and President and Corporate Breeze, RG Senior CFO; Paul are Vice Randy on Speaking Shefman, President Bill Heissenbuttel, Senior Development Libner, and of today for Senior Vice of Vice Raffield, Senior CEO; President and

During future. discussed forward-looking from press release our materially filings actual today's in yesterday's and statements, including with projections and cause we will are differ call, make are these risks statements statements. expectations These to could our to about for and SEC. subject These that the risks uncertainties results the uncertainties statements and

We adjusted refer press GAAP adjusted of can including found directly the our non-GAAP net per on release, be financial and most income, these cash will measures, share to in yesterday's income Reconciliations are available G&A. to EBITDA net also which certain measures measures website. adjusted comparable

So the commentary the formal session. and we'll quarter. will of overview After Paul update. a lines open on for provide financial a remarks, portfolio, give will we'll start the an Martin with some the Q&A

now the Bill. I'll call to over turn

per third last XX% when last XX% or earnings million, $XX $XXX had of Good over a thank up revenue Operating financial last increase was strong very performance same We $X.XX and flow a the begin I'll recognized during over were year. quarter $XXX X. record to the and morning, quarter period Slide you year, for call. XX% million compared of joining year. on the and increase cash the share, million,

generated per an Revenue was XX% adjusted of and was and share. $X.XX $XX were or our basis, almost revenue the Australia. record from U.S., XX% On gold a million Canada earnings our

recent of have seen feature XX% is we're for our inflationary we strong margins not that key regular $XX the in the $XX revolving quarterly We prices. outstanding to gold Our also final credit directly quarter. the not on our A margin pay of our to facility. at erosion million, remained the during and exposed rising business cash and repaid adjusted EBITDA model period million flow we of pressures dividend cost used

debt-free now are over We have billion liquidity. $X.X available of and

IAMGOLD recognized first the we quarter, Contango Kinross newest portfolio. from our and in projects into Gold for the of on these Manh in or During schedule. congratulate producing bringing X to revenue I'd production like assets Cote to Choh

our And mention like change finally, to a to I'd disclosure.

As a a U.S. SEC domicile the subject and company, inclusion have of recently that learned the precludes taken to filings. in our S-K resources the all Regulation we and position reserves the that we some or are SEC's of XXXX, has

access not As of passive have operating disclosure interpretation investor, SEC's disclose a that the do from under information did not to the of like guidelines S-K S-K of our the the instead were which well and utilize before all are about the XXXX. reporting XXXX, by for established accordance introduction reporting allowed foreign XXXX. information Most the our S-K standard and XX-XXX in meet domiciled that but with are counterparties purposes properties of JORC, operators we would SEC other of previously standards

properties. previously imply of the risk interest the to no to our in does disclosure status not designated expect in any a to changes information XXXX change profile XX-K of business, are our business the model, Form XX-K we weeks. any the our properties. our There As in or few next our also result, amend our principal to our access Reducing

our and and of Portfolio on all tab to X-K in filings under our interest furnished to fulsome reserves We include attributable SEC that handbook. the are our disclosure will and mineral the continue resources our asset to website

to this this of filed complete morning I'll for description a X, XA refer more we you Item issue. XX-Q the in Part

I'll that, hand to Martin discuss call over With performance. to the our portfolio

Thanks, Bill.

Turning quarter Higher revenue Overall to million a period of prices give $XXX volume also but compared XX,XXX record we contributing primary several GEOs. new comments for last the Slide have revenue. increased with some was on were I'll driver third revenue X, the revenue, assets same year. the to

Wonder revenue and including Choh $XX this producers, in North, quarter newest year. Our Bellevue, compared million last provided Mara almost Manh Cote to Rosa,

$XX and the million, Gold. Penasquito revenue up by by lower the Cote's Manh for contributed Royalty from Our higher were first increases revenue royalty revenue legacy from These contributions quarter total about Choh with quarter. strongly zone. revenue of prior Robinson from year about and was Cote partially segment XX% from XX% the and offset

stream partially offset by lower $XXX Viejo, from up from XX% million, contributions segment our Pueblo Andacollo. Xavantina, by Revenue with was increased Milligan, from year last Wassa about Mount from and revenue

towards They next first of evaluate and end and opportunities site our at lower Milligan, to of At is expected PEA trend that is production X the turn extend reported Mount also for of the half the give the to I'll week comments end last reported range. with principal to on guidance the year. some to is year Slide mine XXXX life advancing the that Centerra towards the unchanged, optimization notable the expected properties. developments gold and the continues to be beyond program complete

At X quarter earlier reported site production. the the they Day, that see water in that increased full months in Drought typically our an forward. Investor results impact after mill during commented mine and to production throughput as availability third the required in to water the Recall operate moving year. water restrictions a Andacollo, have they Tuesday's of Teck X about conditions throughput the improvement caused use we at result that limited during

quarter is of was Turning pit Penasco mining to to Penasquito, and At production from plan. the Chile pit third the Slide steady X. transition Colorado ahead

to pit. mining XXXX the gold in Newmont expects into Penasco grade due in gold the production and fourth to increase higher quarter

agreement Newmont which with continued has collective period, the XXXX also new Mining for Union for XXXX but solid a provide expects through will agreed the on Newmont operations. bargaining a foundation

backfill from turning the Zone ore ownership is and over efficiently We to recently of in visited body support strike constructing Recall that year and in to MMG we to that at improved received MMG and been quarter last transition the recovery a due quarter Khoemacau, the the milling X found the and expects MMG next executed expansion feasibility study. mining the grades improve the development efforts ore year. ramp-up of no the focus a site plan third to At paste third higher reported mine. preparing and plant the towards has and volumes revenue production

the XXXX. complete line, this study interest produce the feasibility Mango deposits. Stream the that to Gold time Silver expects to production in X the concentrate expansion Northeast in mine and year, by construction MMG respect covers and expanded Royal first Recall With begin Zone XXXX the of end from

a X. Slide comments portfolio to assets. add I'll Turning few other on

recently developing large strategic that progressing extending is and satellite We life bodies operation Wassa the of on are ore degree focus both ore for exploration being options Wassa well. through underground high extension placed additional the saw also visited the and the on of and A open land package. and deep pit operations the feed of

through in extension year Independent economic considers With the material Bear, of these Chifeng of highlighted the multiple XXXX, the the August extend preliminary respect XXX,XXX released by that production the late life for southern completed Kinross results first economic that in Report Person's potentially decades. gold open mining of an followed plans, in Competent and underground mine initial mining pit to XX-year years. life could ounces At mine Great per assessment future X the reserves of and over a averaging

is we in made exploration And advance a target advanced the with at during quarter. Xavantina, exploration Kinross work continuing engineering remaining permitting $X.X to first lastly, payment the for production mid-XXXX. and million

and have fully and Our the add complete Ero's $XX increased success-based in exploration, we investment, depletion stream been by our reserves to Since agreement increases have indicated paid included category. original made payment including efforts and to resource significant support regional amount. measured have now this and XXX%, our million to resources

over call results. review for Paul our financial to a I'll turn of now the

Thanks, Martin. quarter. for an to I results give will the X now Slide the financial turn overview of and

the ended For XX% a silver for $XXX XX% within XXXX, the copper were and to the up to prior over overall as record a the Martin XX, was quarter GEOs this XX% quarter quarter. nearly contributed increase. primary up gold year the X,XXX or prices prior up Metal discussion, And XX%, I'll new mentioned, increase up Revenue the million. $XX of million year. be Royalty with September also to revenue driver comparing contributions the also of segment

the royalty XX% X%. highest quarter, and of our making Gold dominant total major Royal and XX% continues to percentage streaming Gold in remains have by revenue sector. the our compared source, followed when our at peers copper silver, to revenue gold for the up

financial on year. excluding the XX. Turning G&A to million, the in was I'll specific expense in was with noncash line detail prior is Slide bit $X.X items year. the which provide for compensation quarter. also with stock a line million our After cash line and $XX.X expense, G&A more prior

revenue G&A costs have a cash of increase revenue the of X% remained the percentage in low decreased revenue Our quarter, our this total and G&A below stable to for as cash remained and quarter. with

sales per GEO overall basis, rates production DD&A increases, from for in a lower $XXX gold quarter depletion sales gold result the was prior slightly quarter to $XX and this prior expense $XXX lower due year. Andacollo million at million lower The of GEO stream Cortez. to in expense DD&A as year. depletion the unit decreased lower server this a GEO to $XX per and On compared was reserve Khoemacau, at lower the per at Our expense

and partially due significantly silver gold decrease and outstanding was lower decrease prior at amounts million facility. $X.X expense credit decreased offset under million to year. the Mount from Milligan higher Pueblo The sales primarily at The $X.X higher by was revolving sales in Viejo. Interest average the to gold

tax resulting tax and of the higher an higher in the was XX.X%. $XX rate driven an a Tax million, the pretax in This due expense of primarily year. for The was tax higher compares period effective to income, million $XX revenue. expense current of prior in effective tax by quarter at XX.X% expense to rate

interest prior the expense. or $X.XX per revenue net and of value share. share. for up was After net fair was $XX a $XX adjusting equity higher the for million or the record quarter minor to to lower due a securities, increase over The change per income primarily was million for income in income Net year $X.XX quarter in the

and cash Our year. to operating $XXX higher receipts. was due increase flow was nearly primarily million, cash cash prior stream flow the The in up XX% over royalty this quarter operating

I provide September financial position as turn a our will now of summary to XX and of Slide XX.

$X facility credit are As we've last now early we repaid free. our call, August full debt quarterly remaining our and $XX $XXX credit billion during and $X.X approximately the quarter. of had undrawn We a million have on approximately in the end revolving we discussed the the outstanding million facility currently of liquidity billion capital, of at and with combined available total working

revenue to to from relative now our come in Gold above or we turn we copper briefly respective will metals end range where to expect driver, to higher the the to sales guidance ranges. at and tracking I With gold, are to to XXXX revenue or we we at dominant in respect the midpoint original come sales, guidance review our are and well other from Slide metals. XX of April. is the the below for compared revenue gold guidance copper of in and provided with other

in the silver, Pueblo Viejo received below Pueblo range, translate to and been expect Silver year at fourth in September quarter. respect mostly the to the we low recoveries come end guidance sales the deliveries throughout sales Viejo. will low have of sales modestly the low at an issue into to lower With we in due

slightly we a segment. guidance, deliveries results timing on the QX based under softer our certain within generally our streaming of While are metal do expect

our no the back financial tax This, items. respect and turn my discrete to call DD&A quarter, within concludes unusual the ranges. tax to course, comments. of effective With Bill performance guidance assumes I'll now comments for we expect closing and be the rate, That or our respective for on both will

Thanks, Paul.

was very quarter strong. third Our

organic from assets from directly producing Australia. Our and portfolio pleased to strong well backdrop for much results our newest the rising our Canada performed growth that seeing coming and business benefits we're gold price a I'm U.S., growth price. great from show strong financial gold of and see how creates a The the our and

developers has we business, forward, remain forward projects. try it the only the look we to development also rising the front. our of on busy As price gold operating advance side directly opportunities has business as brought benefited Not new

strategy allow and to balance with and to and can counterparties. stick markets our with to us safe we in which in competitive jurisdictions expect familiar Our metals adding us are exposure sheet quality liquidity of be you

certain political aspects reviews, elevated may so will to with prices mask we appear our to can the on While respect standards disciplined financial remain and diligence project disciplined due metal of or we deliver mitigate that our project technical, growth. risks,

concludes line for open Operator, the that prepared our I'll now remarks. questions.

[Operator Chiu with from today comes CIBC. Cosmos Instructions] question Our first

SEC so to Maybe under my registered how is a and the resources don't XXXX Bill, question XX-XXX, it meet the great never give need maybe kind I I'm though -- it, just to like standard of your like that sounds these wondering bit of is they amendment standard. talked that even you of an this it you're XXXX but do? on you more SEC know about sounds filing are S-K clarity, extensive you when you me some could S-K an filings. have given reserve

our we Yes. the to And it you of said We under are when went up that's to XX-K. didn't an the this Cosmos, has we thing somewhere We used about Look, because kind not is market year between an amendment in of that away thanks why the and it to And raise reporting. wanted XXXX. SEC U.S. the the and it X basically question. want filing hit quieter. on to have standard. the end head. just land end S-K have may Guide with it's when explanation. never things good, for that all sounds Thanksgiving And you It the report

have really reserves do us Penasquito. use those nothing by there's to get put QP of PV, couple our All with to allow and the But in we actually resource is are the reserve brought Cortez, The also that a doesn't people the the that see has We operated properties joint some reason venture the there to requirements extent Newmont, filing. want resources and to it here. we up you is understand to SEC information. XX-K,

You the else is Portfolio under our think and really, somewhere addition really we've just actually made tab helpful. the go that I

just to reserves we'll there. You the there. go continue people, all handbook available want it They're and year. can make to continue update to asset We every

the about wrong. to deal people know We're the I property about concerned amendment of else just There's XX-K. the So nothing it. just just wanted with not it. It's will section

Sounds good.

So like clarify. Bill, I'd to

reserve So XX-K still change handbook the XX-K. not The only doesn't your the that change. -- just really section there in and only will information is be of your elsewhere, X resources in in

I where to know you to go. wanted Exactly. just

comes ahead. Jakusconek Tanya, Instructions] go [Operator Tanya please question Our next Scotiabank. with from

circle XXXX. Just back guidance wanted to for on the

out, sorry, I'm just I'm I it -- think so to make I want in on phone, and it the sure heard correctly. I so went

the the silver? be end range and on on copper at be going then to correct, higher portion going gold you're front. of Is end and and that front on lower below to higher are to You the on the the the mid the the other

be going a going think being million. to We're to Yes, bit we're that low we'll I figure. up end range the the below below -- be X.X

only that's the would range. one So that outside the be

Okay. And softer QX, would said deliveries. and weaker the you be it

So timing? expecting just what or assets we weaker remind deliveries me can be would you

a seen arrived swing had timing. with Yes, can some number it's And Milligan than Milligan, earlier And it's this like so expected. not weaker, just assets much one year delivery. we've deliveries GEOs of we advanced

an Milligan. may we also early let know delivery people it we softer, So to be but from might wanted see

Andacollo, were sometimes you or -- have X-month really know, just and the it's end Milligan the we're unsure get always the year, ones these that of the that on it's but bigger the delays timing. But to it's about X- PV, and we

Okay. on circle That's on daily if things quite just With volatile helpful. back, could, on moving to And I then environment. transaction gold I -- a change price wanted basis. the your

on precious changed. but said in come are So kind you seeing? I and you're are something what I maybe every I quarter, of see metals this seeing has want to opportunities What ask the busy. just terms back front? you know You of

you in And that Are million million and/or to still buying still seeing sub-$XXX development then the the cash royalties then range? companies $XXX And to there anything operating just the things? see this $XXX you include way agreement you. competitive the changed money towards funding million and range flow. to are I'm having for trying for if in modify changed of as in different environment, has well has approach your you in terms

Yes, see Tanya, the I on let help to you out me here can line get if there. Breeze Dan

the Sure, Bill. Thanks for Tanya. question,

what question address specifically we're what of have now. might to just your right or terms in seeing So changed

the I add of versus, in a notable months describe recent say it say, would would types think reviewing or we're ago. opportunities more X broad that I'd now number increase say we're the And of what seen as And the we way than we've that I'd seeing robust. now, is well. I X past it's very in also opportunities the that there's

I that And for across it's mean acquisition opportunities. by financing what the financings development, we're board, seeing is whether project things

The around. projects over those. third-party royalties at some of are new new still royalties the stage some -- cases. earlier And in looking We're

bit range you the think a there. bigger that's still the to We're million, But things aware always the than about. that. about, million $XXX think still couple think -- of we that that's Tanya, $XXX of could range that's talk are I I a

approximately royalties few with that that, River transact said acquired Having the we ago a for $XX months you saw Back us million.

to going jurisdictions. stay on kinds at value, as is fair But that things long-term shareholders we're think see prepared in I this we a us well. to operators, in good again, projects, place our optionality really want those about talked which bit quality us Bill just where still of think you'll comments, look his focused

the about that just more the X, what you beyond the ] plus your seeing? at debt deal. than a of above plus they're are royalty and structure look one these Y, stream I'm getting how bells complicated agreement? kind the had wondering, Z. are just of recent the [ and plus just you finding equity you it financing about collars or And and different thinking you And as I noticed are on the whistles. structures What

there do a bit of want color to. Bill, want you to Or do well? me you give as

Sure, go ahead.

Yes.

back. to or step And decade last Again, seeing the think fair evolving. have what pretty of So become reflection And we're just products so. in over Tanya, to I that the I mainstream it's think our a that. I they're market say is think

I alongside you're and market that know that, I'd So say equity, seen at look the those referring some we things of more debt things. we've certainly to of core open products, do the in to specific prepays. we're

And of Khoemacau transaction, at there, our had a that provided actually funding you facility XX% was the was for opportunity. that of in look if we which our size approximately we that the put debt

So those we open are to things.

sure getting package, but the products to seeing We long long-term is the we're complete that obviously optionality. right in don't want to Those great make what long-term which term, that they they're optionality. a and the core want that that shareholders really getting product market, in we're get

around we still products So to offer. main has the core that the be

as know, is right, Okay. as trying gets Understood. It's more add you competitive, to everyone agreement. maybe something the new entice to just it

we and and you think reserves on day, evaporated, the the and the website disclosure to handbook nobody because right? can asset have Okay. Somewhere end wake the at up resources will to. your that. your explanation standard for I of like And thank appreciate that refer you S-K really in have wants

Absolutely.

question Bank Winder Our comes Lawson America from with of next Securities.

you risk in And recently I I in and wanted a think acquisition, the the Thank guess, jurisdiction, when low today. Khoemacau in you the very as Does I it change assessed any government originated to change the I guys market way? about, update very think that ask originally assessment Botswana was Khoemacau, high-quality political for historic risk. agreed.

full, a was to Through the the early focused be now with on mean, at least one. new running the that, the read, party they're ] everything I we've just [ to going their tell. after too one it's see. and there's to they're it, to But think And what happened. going got have decades I've hands election I just of country, X bears have relationship obviously, we'll

that. the I that you in I'll Martin, just were We anything make haven't seen add think there it because know, assessment. is you our don't projects, anything And to I spoken there. to is would anything us that? change press the leave we've at recently would there And

mean elections. Botswana, They we've it contacted of company. No. we to upcoming them have the to the surprise the was -- bit I When think did were not talked everyone of about I we the on results elections. obviously site, in a a

I be that would think that coalition it was a more expected government formed.

a party But are any mine the new The short is in to don't within the certainly, over employment actually win results, term outright the particular country. they them few going by was talking that at government and well who past the about the concerns obviously by the surprise. have the looking expansion believe improve to days be seen to the in they

particular no So at moment, Lawson. the concerns

the which predominantly And Okay. jurisdictions seeing is in then how thinking and going the forward, deals at potential are your transactions? And I deal looking for one then pipeline, from you pipeline mean, further is, today Africa? deals potential appetite Fantastic. about

Dan, you. I'll to right give that back

sure. Yes,

in think, at Lawson, we Africa. areas certainly I So look do

as know, We already. you of we have have investments there a -- couple

time, pop for we'll and as you there. really But time look we'll fit of And know, We areas evaluate. looking selectively the in and safe at spend things places and from now, to through Australia. like opportunities so to see up time the that that right category Americas the most do we're jurisdictions,

market our in of function now. to just which the it's right I think which is is are And we risk general, see. where great with So it fits with profile a

It's right As I market robust pretty to Tanya. a mentioned, now.

things look be a opportunities to may look at that very at. we are with. and having of there So We're lot not comfortable not deviate to

very early I'm quite of but at ramping then and with some I mean, planning XXXX mean, GEOs you it's material growth mean, directionally And have of seems Great. up sure this a a XXXX, I it like number pretty looking there's assets your I discussion. for new potential few into Okay. in started starting point, to up. lot insight now, there's unknowns XXXX. than 'XX great that some 'XX? mean lot the than right of fair a obviously to assets. be more a well to into big I GEO But to of mean, it particularly XXXX don't we than I lower so I of the think Barrick as characterize risk higher guidance have would

Yes, beginning kinds effects. XXX,XXX, at when XXX,XXX of that to the can those didn't over here, Lawson, give a to tell in Cortez a the mute reasons of to this XXX,XXX And a expect you are take Barrick's surprises of of our from what positive positive I mean, There learned positive to on I'd things production years went that the love range both the you and are a But steer about portfolio. go I going picture but will it. ways. I've be year what's number is

same really look, So along start we coming time the plans, our we'll sense for expect and -- 'XX have with don't frame we going thinking about usually as we mine really their do. come operators that out have the we numbers but really estimates, a guidance guidance out have better start to are, when what it's we're of I with course,

for everyone, have Instructions] Thank concludes further We call. joining no today. so questions, us [Operator and you, this today's

disconnect lines. You now your may