What changed in this filing

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Item 1. Financial Statements

2024-11-07 compared with 2024-08-08 · 95 added, 86 removed, 478 unchanged (27% of the section changed)

3 unchanged sentences

(Unaudited, amounts in thousands except share data)

September 30,

2024 December 31,

10 unchanged sentences

Dividends payable 26,320 26,292

Current portion of long-term debt (Note 4) 50,000 —

Income tax payable 30,386 15,557

21 unchanged sentences

(Unaudited, amounts in thousands except share data)

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Revenue (Note 6) $ 193,837 $ 138,617 $ 516,835 $ 453,051

23 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

Three months ended June 30, 2024, and 2023

Three months ended September 30, 2024, and 2023

(unaudited, amounts in thousands except share data)

5 unchanged sentences

Shares Amount

Balance at March 31, 2024 65,648,831 $ 656 $ 2,223,021 $ 687,377 $ 12,312 $ 2,923,366

Balance at June 30, 2024 65,656,625 $ 656 $ 2,225,942 $ 742,270 $ 12,325 $ 2,981,193

Stock-based compensation and related share issuances 32,732 1 ( 154 ) — — ( 153 )

2 unchanged sentences

Dividends declared — — — ( 26,320 ) — ( 26,320 )

Balance at June 30, 2024 65,656,625 $ 656 $ 2,225,942 $ 742,270 $ 12,325 $ 2,981,193

Balance at September 30, 2024 65,689,357 $ 657 $ 2,225,788 $ 812,192 $ 12,291 $ 3,050,928

Royal Gold Stockholders

4 unchanged sentences

Shares Amount

Balance at March 31, 2023 65,599,348 $ 656 $ 2,215,362 $ 566,545 $ 12,369 $ 2,794,932

Balance at June 30, 2023 65,609,736 $ 656 $ 2,217,559 $ 605,347 $ 12,331 $ 2,835,893

Stock-based compensation and related share issuances 22,024 — 1,136 — — 1,136

2 unchanged sentences

Dividends declared — — — ( 24,649 ) — ( 24,649 )

Balance at June 30, 2023 65,609,736 $ 656 $ 2,217,559 $ 605,347 $ 12,331 $ 2,835,893

Balance at September 30, 2023 65,631,760 $ 656 $ 2,218,695 $ 630,035 $ 12,396 $ 2,861,782

ROYAL GOLD, INC.

Consolidated Statements of Changes in Stockholders’ Equity

Six months ended June 30, 2024, and 2023

Nine months ended September 30, 2024, and 2023

(unaudited, amounts in thousands except share data)

10 unchanged sentences

Dividends declared — — — ( 78,945 ) — ( 78,945 )

Balance at June 30, 2024 65,656,625 $ 656 $ 2,225,942 $ 742,270 $ 12,325 $ 2,981,193

Balance at September 30, 2024 65,689,357 $ 657 $ 2,225,788 $ 812,192 $ 12,291 $ 3,050,928

Royal Gold Stockholders

9 unchanged sentences

Dividends declared — — — ( 73,940 ) — ( 73,940 )

Balance at June 30, 2023 65,609,736 $ 656 $ 2,217,559 $ 605,347 $ 12,331 $ 2,835,893

Balance at September 30, 2023 65,631,760 $ 656 $ 2,218,695 $ 630,035 $ 12,396 $ 2,861,782

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(Unaudited, amounts in thousands)

Six Months Ended

2024 June 30,

Nine Months Ended

September 30,

2024 September 30,

Cash flows from operating activities:

4 unchanged sentences

Fair value changes in equity securities 42 171

Deferred tax expense (benefit) 3,419 ( 7,139 )

Deferred tax benefit 4,908 ( 6,011 )

Other 717 592

20 unchanged sentences

Net cash used in financing activities $ ( 333,961 ) $ ( 327,562 )

Net decrease in cash and equivalents ( 29,935 ) ( 12,429 )

Net increase (decrease) in cash and equivalents 23,715 ( 15,685 )

Cash and equivalents at beginning of period 104,167 118,586

15 unchanged sentences

In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q.

Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2024.

Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2024.

These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 15, 2024 (“2023 10-K”).

5 unchanged sentences

Back River is operated by B2Gold Corporation and is located in Western Nunavut, Canada.

The Back River royalties have been accounted for as an asset acquisition and the $ 51 million cash consideration, plus direct transaction costs, have been allocated to development ($ 42 million) and exploration ($ 9 million) stage royalty interests within S tream and royalty interests, net on our consolidated balance sheets.

The Back River royalties have been accounted for as an asset acquisition and the $ 51 million cash consideration, plus direct transaction costs, have been allocated to development ($ 42 million) and exploration ($ 9 million) stage royalty interests within Stream and royalty interests, net on our consolidated balance sheets.

The purchase price was funded with available cash on hand.

2 unchanged sentences

STREAM AND ROYALTY INTERESTS, NET

The following tables summarize our stream and royalty interests, net as of June 30, 2024 and December 31, 2023.

As of June 30, 2024 (Amounts in thousands):

The following tables summarize our stream and royalty interests, net as of September 30, 2024 and December 31, 2023.

As of September 30, 2024 (Amounts in thousands):

Cost Accumulated Depletion Net

18 unchanged sentences

Development stage royalty interests:

Côté 45,421 — 45,421

Back River 42,948 — 42,948

49 unchanged sentences

Other 106,864 — 106,864

Total exploration stage royalty interests 1,048,209 — 1,048,209

Total exploration stage stream and royalty interests 1,048,209 — 1,048,209

Total stream and royalty interests, net $ 4,874,194 $ ( 1,798,620 ) $ 3,075,574

1 unchanged sentence

Notes to Consolidated Financial Statements

Our debt as of June 30, 2024 and December 31, 2023 consists of the following (amounts in thousands):

As of June 30, 2024 As of December 31, 2023

Our debt as of September 30, 2024 and December 31, 2023 consists of the following (amounts in thousands):

As of September 30, 2024 As of December 31, 2023

Principal Debt Issuance Costs (1)

Total Principal Debt Issuance Costs Total

Current portion of long-term debt $ 50,000 $ — $ 50,000 $ — $ — $ —

Long-term debt $ — $ — $ — $ 250,000 $ ( 4,033 ) $ 245,967

(Amounts in thousands) (Amounts in thousands)

Revolving credit facility $ — $ — $ — $ 250,000 $ ( 4,033 ) $ 245,967

Total debt $ — $ — $ — $ 250,000 $ ( 4,033 ) $ 245,967

2 unchanged sentences

Revolving credit facility

For the six months ended June 30, 2024, we repaid a total of $ 200 million on our outstanding revolving credit facility.

As of June 30, 2024, we had $ 50 million outstanding and $ 950 million available under our revolving credit facility.

The interest rate on borrowings under our revolving credit facility as of June 30, 2024, was Term SOFR plus 1.20 % for an all-in rate of 6.5 %.

Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $ 1.7 million and $ 5.6 million for the three and six months ended June 30, 2024, respectively, and $ 7.8 million and $ 16.3 million for the three and six months ended June 30, 2023, respectively.

We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of June 30, 2024.

On July 10, 2024, we repaid $ 25 million on our outstanding revolving credit facility, and on August 12, 2024, we plan to pay the remaining outstanding balance.

During the three months ended September 30, 2024, we repaid the remaining $ 50 million of outstanding borrowings on our revolving credit facility, making the entire $ 1 billion revolving credit facility available as of September 30, 2024.

Interest expense, which includes interest on borrowings and amortization of debt issuance costs, was $ 0.5 million and $ 6.1 million for the three and nine months ended September 30, 2024, respectively, and $ 6.7 million and $ 23.0 million for the three and nine months ended September 30, 2023, respectively.

We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of September 30, 2024.

We may repay any borrowings under our revolving credit facility at any time without premium or penalty.

3 unchanged sentences

The cost support allowed for the extension of the mine from 2032 to 2035 and the potential to extend the mine life beyond 2035.

The value of the cash consideration and free cash flow interest received from Centerra is recorded as a deferred liability in our consolidated balance sheets as of June 30, 2024.

The value of the cash consideration and free cash flow interest received from Centerra is recorded as a deferred liability in our consolidated balance sheets as of September 30, 2024.

This amount will be amortized as we provide future cost support to Centerra under the Mount Milligan Cost Support Agreement on a units of production basis over the Mount Milligan mine life beginning with the first cost support payment made after the First Threshold (defined below) is met.

6 unchanged sentences

Each of the Greenstone Deliveries will be delivered to Royal Gold within 30 days of such delivery to Centerra.

When the Deferred Gold Consideration is received and subsequently sold, we anticipate the value of the gold ounces sold will be recorded as a deferred liability and amortized on a units of production basis over the mine life of Mount Milligan as we provide future cost support.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Metal deliveries referenced in the Mount Milligan Cost Support Agreement are those with a bill of lading date on or after January 1, 2024 (the "Reference Date").

20 unchanged sentences

Nothing in the Mount Milligan Cost Support Agreement modifies the existing stream agreement, including the payment of $ 435 for each gold ounce delivered and 15 % of the spot price for each pound of copper delivered.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Revenue Recognition

A performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, a performance obligation is satisfied.

A contract’s transaction price is allocated to each distinct performance obligation

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

and recognized as revenue when, or as, a performance obligation is satisfied.

In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers.

21 unchanged sentences

Please also refer to our “Use of Estimates” accounting policy discussed in our 2023 10-K.

For the three months ended June 30, 2024, royalty revenue that was estimated or was attributable to metal production for a period prior to June 30, 2024, was not material.

For the three months ended September 30, 2024, royalty revenue that was estimated or was attributable to metal production for a period prior to September 30, 2024, was not material.

Disaggregation of Revenue

5 unchanged sentences

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands):

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Stream revenue:

11 unchanged sentences

Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands):

Three Months Ended Six Months Ended

Metal(s) June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

Metal(s) September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Stream revenue:

12 unchanged sentences

Total revenue $ 193,837 $ 138,617 $ 516,835 $ 453,051

Peñasquito Revenue

During the three months ended September 30, 2023, no royalty revenue from Peñasquito was recognized due to the suspension of operations resulting from a strike action on June 7, 2023, by the National Union of Mine and Metal Workers of the Mexican Republic (the "Union").

Newmont Corporation and the Union reached a definitive agreement on October 13, 2023 and Peñasquito's operations reached full operating capacity by the end of the fourth quarter of 2023.

Please refer to Note 10 for the geographical distribution of our revenue by reportable segment.

3 unchanged sentences

We recognized stock-based compensation expense as follows (amounts in thousands):

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Restricted stock $ 1,667 $ 1,538 $ 5,562 $ 4,692

5 unchanged sentences

We granted the following stock-based compensation awards:

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

(Number of shares) (Number of shares)

3 unchanged sentences

Total equity awards granted — 560 159,690 139,450

As of June 30, 2024, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

As of September 30, 2024, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

expense Weighted-

13 unchanged sentences

The following table summarizes the effects of dilutive securities on diluted EPS for the periods shown below (amounts in thousands, except share data):

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Net income attributable to Royal Gold common stockholders $ 96,242 $ 49,337 $ 224,615 $ 176,661

5 unchanged sentences

The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated:

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Income tax expense $ 21,510 $ 10,752 $ 67,535 $ 28,652

Effective tax rate 18.3 % 17.8 % 23.1 % 13.9 %

The effective tax rate for the six months ended June 30, 2024, included a $ 13.0 million discrete U.S.

The effective tax rate for the nine months ended September 30, 2024, included a $ 13.0 million discrete U.S.

GILTI income tax expense related to the consideration from the Mount Milligan Cost Support Agreement.

The effective tax rates for the three and six months ended June 30, 2023 included a discrete income tax benefit of $ 8.5 million attributable to the release of a valuation allowance on certain foreign deferred tax assets.

The effective tax rate for the nine months ended September 30, 2023 included a discrete income tax benefit of $ 8.5 million attributable to the release of a valuation allowance on certain foreign deferred tax assets.

SEGMENT INFORMATION

1 unchanged sentence

Our long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands):

As of June 30, 2024 As of December 31, 2023

As of September 30, 2024 As of December 31, 2023

interest Royalty

16 unchanged sentences

Our reportable segments for purposes of assessing performance are shown below (amounts in thousands):

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Revenue Cost of sales (1)

4 unchanged sentences

Total $ 193,837 $ 27,192 $ 1,520 $ 36,091 $ 129,034

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Revenue Cost of sales (1)

4 unchanged sentences

Total $ 138,617 $ 21,351 $ 1,671 $ 39,989 $ 75,606

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Revenue Cost of sales (1)

4 unchanged sentences

Total $ 516,835 $ 73,116 $ 4,550 $ 110,433 $ 328,736

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Revenue Cost of sales (1)

10 unchanged sentences

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Total segment gross profit $ 129,034 $ 75,606 $ 328,736 $ 253,878

7 unchanged sentences

Income before income taxes $ 117,840 $ 60,251 $ 292,493 $ 205,822

Our revenue by reportable segment for the three and six months ended June 30, 2024 and 2023, is geographically distributed as shown in the following table (amounts in thousands):

Three Months Ended Six Months Ended

2024 June 30,

2023 June 30,

2024 June 30,

Our revenue by reportable segment for the three and nine months ended September 30, 2024 and 2023, is geographically distributed as shown in the following table (amounts in thousands):

Three Months Ended Nine Months Ended

September 30,

2024 September 30,

2023 September 30,

2024 September 30,

Stream interests:

Canada $ 66,372 $ 42,577 $ 173,737 $ 150,405

Africa 20,396 18,763 39,497 36,301

Dominican Republic 26,585 16,688 64,147 62,586

Africa 19,973 18,092 59,470 54,394

Chile 9,652 14,644 31,949 35,401

20 unchanged sentences

Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

As of June 30, 2024 and December 31, 2023, we had financial assets in the form of marketable securities which are measured at fair value on a recurring basis;

As of September 30, 2024 and December 31, 2023, we had financial assets in the form of marketable securities which are measured at fair value on a recurring basis;

however, the carrying value of such financial assets is not material.

The carrying value of our revolving credit facility (Note 4) approximates fair value as of June 30, 2024.

As of June 30, 2024, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets.

The carrying value of our revolving credit facility (Note 4) approximates fair value as of September 30, 2024.

As of September 30, 2024, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets.

For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired.

2 unchanged sentences

Ilovica Gold Stream Acquisition

As of June 30, 2024, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions.

As of September 30, 2024, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements