DENVER - Royal Gold, Inc. (NASDAQ:RGLD), a precious metals stream and royalty company, disclosed its sales and inventory data for the quarter ending September 30, 2024. The company's wholly owned subsidiary, RGLD Gold AG, reported selling approximately 53,800 gold equivalent ounces (GEOs) during this period. The sales included about 40,700 ounces of gold, 688,200 ounces of silver, and 1,400 tonnes of copper, all derived from its streaming agreements.
The average realized prices for gold, silver, and copper in the third quarter were $2,459 per ounce, $29.10 per ounce, and $9,141 per tonne ($4.15 per pound), respectively. Royal Gold reported a cost of sales of approximately $506 per GEO for the quarter, which is specific to the streaming agreements. The cost of sales reflects the cash payments made for the purchase of gold, silver, or copper at a set contractual price or a percentage of the market price at the time of purchase.
As of September 30, 2024, Royal Gold had inventory holdings of approximately 17,000 ounces of gold, 219,100 ounces of silver, and 400 tonnes of copper.
The company is scheduled to release its full financial results for the third quarter after the market closes on November 6, 2024. A conference call to discuss these results is planned for the following day, Thursday, November 7, 2024, at 1:00 p.m. Eastern Time.
Royal Gold owns interests on 175 properties across five continents, including 40 producing mines and 19 development stage projects. The company's performance is closely watched by investors as it provides insights into the precious metals market and production-based interests.
The information disclosed is based on a press release statement from Royal Gold, Inc.
In other recent news, Royal Gold, Inc. has extended its consulting agreement with Mark Isto, former Executive Vice President and Chief Operating Officer, through December 31, 2025. This decision aligns with the company's strategic focus on leveraging Isto's industry expertise and knowledge of Royal Gold's operations. On the financial front, the company reported strong performance for the second quarter of 2024. Revenues reached near-record levels of $174 million, a 21% increase from the previous year, driven by higher metal prices and the acquisition of new royalties. Royal Gold also reported earnings per share of $1.23 and repaid $100 million of its credit facility, achieving a net cash position. Further, the company expanded its portfolio through the acquisition of two royalties in the Back River Gold District, enhancing its exposure to the Goose Gold Development Project, which is expected to commence gold production in 2025. These developments underscore Royal Gold's resilience and strategic focus on growth through acquisition in the dynamic mineral royalty trading industry.
InvestingPro Insights
Royal Gold's recent performance aligns with several key metrics and insights from InvestingPro. The company's impressive gross profit margin of 85.5% for the last twelve months as of Q2 2024 underscores its efficient streaming and royalty business model. This high margin is reflected in one of the InvestingPro Tips, which highlights Royal Gold's "impressive gross profit margins."
The company's solid financial position is further evidenced by its dividend history. An InvestingPro Tip notes that Royal Gold "has maintained dividend payments for 25 consecutive years," demonstrating a commitment to shareholder returns. This is particularly relevant given the recent disclosure of sales data and inventory holdings, as it suggests the company's ability to generate consistent cash flows from its diverse portfolio of interests.
Royal Gold's market performance has been strong, with the stock trading near its 52-week high, as indicated by another InvestingPro Tip. This aligns with the company's reported sales of 53,800 gold equivalent ounces in the recent quarter and could reflect investor confidence in the company's business model and market position.
It's worth noting that Royal Gold's P/E ratio stands at 37.34, which some investors might consider high. This valuation metric, combined with the InvestingPro Tip stating that the stock is "trading at a high earnings multiple," suggests that investors are pricing in expectations for continued strong performance and growth.
For investors seeking a deeper understanding of Royal Gold's financial health and market position, InvestingPro offers additional insights, with 11 more tips available for this stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.