ROYAL GOLD INC 10-Q

ITEM 1. FINANCIAL STATEMENTS ​ ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, June 30, ​ 2020 ​ 2020 ASSETS ​ ​ ​ ​ ​ ​ Cash and equivalents ​ $ 413,116 ​ $ 319,128 Royalty receivables ​ ​ 33,573 ​ ​ 27,689 Income tax receivable ​ ​ 4,298 ​ ​ 2,435 Stream inventory ​ ​ 17,159 ​ ​ 11,671 Prepaid expenses and other ​ ​ 1,679 ​ ​ 1,227 Total current assets ​ ​ 469,825 ​ ​ 362,150 Stream and royalty interests, net (Note 3) ​ ​ 2,242,314 ​ ​ 2,318,913 Other assets ​ ​ 85,048 ​ ​ 85,224 Total assets ​ $ 2,797,187 ​ $ 2,766,287 LIABILITIES ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 2,901 ​ $ 2,484 Dividends payable ​ ​ 18,368 ​ ​ 18,364 Income tax payable ​ ​ 25,730 ​ ​ 13,323 Other current liabilities ​ ​ 9,140 ​ ​ 9,384 Total current liabilities ​ ​ 56,139 ​ ​ 43,555 Debt (Note 5) ​ ​ 270,696 ​ ​ 300,439 Deferred tax liabilities ​ ​ 85,784 ​ ​ 86,439 Uncertain tax positions ​ ​ 13,230 ​ ​ 25,427 Other long-term liabilities ​ ​ 8,117 ​ ​ 8,308 Total liabilities ​ ​ 433,966 ​ ​ 464,168 Commitments and contingencies (Note 13) ​ ​ ​ ​ ​ ​ EQUITY ​ ​ ​ ​ ​ ​ Preferred stock, $ .01 par value, 10,000,000 shares authorized; and 0 shares issued ​ ​ — ​ ​ — Common stock, $ .01 par value, 200,000,000 shares authorized; and 65,545,606 and 65,531,288 shares outstanding, respectively ​ ​ 656 ​ ​ 655 Additional paid-in capital ​ ​ 2,199,705 ​ ​ 2,210,429 Accumulated earnings ​ ​ 149,702 ​ ​ 61,133 Total Royal Gold stockholders’ equity ​ ​ 2,350,063 ​ ​ 2,272,217 Non-controlling interests ​ ​ 13,158 ​ ​ 29,902 Total equity ​ ​ 2,363,221 ​ ​ 2,302,119 Total liabilities and equity ​ $ 2,797,187 ​ $ 2,766,287 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ 3 ​ ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 Revenue (Note 7) ​ $ 146,880 ​ $ 118,774 ​ ​ ​ ​ ​ ​ ​ Costs and expenses ​ ​ ​ ​ ​ ​ Cost of sales (excludes depreciation, depletion and amortization) ​ ​ 21,902 ​ ​ 20,111 General and administrative ​ ​ 7,454 ​ ​ 7,443 Production taxes ​ ​ 1,355 ​ ​ 1,099 Exploration costs ​ ​ 563 ​ ​ 2,626 Depreciation, depletion and amortization ​ ​ 46,300 ​ ​ 38,714 Total costs and expenses ​ ​ 77,574 ​ ​ 69,993 ​ ​ ​ ​ ​ ​ ​ Gain on sale of Peak Gold JV interest ​ ​ 33,906 ​ ​ — Operating income ​ ​ 103,212 ​ ​ 48,781 ​ ​ ​ ​ ​ ​ ​ Fair value changes in equity securities ​ ​ 2,539 ​ ​ ( 1,375 ) Interest and other income ​ ​ 421 ​ ​ 775 Interest and other expense ​ ​ ( 1,875 ) ​ ​ ( 2,834 ) Income before income taxes ​ ​ 104,297 ​ ​ 45,347 ​ ​ ​ ​ ​ ​ ​ Income tax benefit ​ ​ 2,377 ​ ​ 23,525 Net income and comprehensive income ​ ​ 106,674 ​ ​ 68,872 Net loss and comprehensive loss attributable to non-controlling interests ​ ​ 265 ​ ​ 1,581 Net income and comprehensive income attributable to Royal Gold common stockholders ​ $ 106,939 ​ $ 70,453 Net income per share attributable to Royal Gold common stockholders: ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 1.63 ​ $ 1.07 Basic weighted average shares outstanding ​ ​ 65,537,714 ​ ​ 65,465,611 Diluted earnings per share ​ $ 1.63 ​ $ 1.07 Diluted weighted average shares outstanding ​ ​ 65,632,689 ​ ​ 65,615,926 Cash dividends declared per common share ​ $ 0.280 ​ $ 0.265 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 4 ​ ROYAL GOLD, INC. Consolidated Statements of Changes in Stockholders’ Equity (unaudited, amounts in thousands except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Royal Gold Stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Paid-In ​ Accumulated ​ Non-controlling ​ Total ​ ​ Shares ​ Amount ​ Capital ​ (Losses) Earnings ​ Interests ​ Equity Balance at June 30, 2020 65,531,288 ​ $ 655 $ 2,210,429 ​ $ 61,133 ​ $ 29,902 ​ $ 2,302,119 Stock-based compensation and related share issuances 14,318 ​ 1 105 ​ — ​ — ​ 106 Sale of Peak Gold JV interest ​ — ​ ​ — ​ ​ ( 10,829 ) ​ ​ — ​ ​ ( 16,218 ) ​ ​ ( 27,047 ) Distributions to non-controlling interests ​ — ​ — — ​ — ​ ( 261 ) ​ ( 261 ) Net income (loss) and comprehensive income (loss) — ​ — — ​ 106,939 ​ ( 265 ) ​ 106,674 Dividends declared — ​ — — ​ ( 18,370 ) ​ — ​ ( 18,370 ) Balance at September 30, 2020 65,545,606 ​ $ 656 $ 2,199,705 ​ $ 149,702 ​ $ 13,158 ​ $ 2,363,221 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Royal Gold Stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Paid-In ​ Accumulated ​ Non-controlling ​ Total ​ ​ Shares ​ Amount ​ Capital ​ (Losses) Earnings ​ Interests ​ Equity Balance at June 30, 2019 65,440,492 ​ $ 655 $ 2,201,773 ​ $ ( 65,747 ) ​ $ 33,772 ​ $ 2,170,453 Stock-based compensation and related share issuances 55,295 ​ — ( 323 ) ​ — ​ — ​ ( 323 ) Distributions from (to) non-controlling interests ​ — ​ — 900 ​ — ​ ( 192 ) ​ 708 Net income (loss) and comprehensive income (loss) — ​ — — ​ 70,453 ​ ( 1,581 ) ​ 68,872 Dividends declared — ​ — — ​ ( 17,382 ) ​ — ​ ( 17,382 ) Balance at September 30, 2019 65,495,787 ​ $ 655 $ 2,202,350 ​ $ ( 12,676 ) ​ $ 31,999 ​ $ 2,222,328 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 5 ​ ROYAL GOLD, INC. Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 Cash flows from operating activities: ​ ​ ​ ​ ​ ​ Net income and comprehensive income ​ $ 106,674 ​ $ 68,872 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation, depletion and amortization ​ ​ 46,300 ​ ​ 38,714 Gain on sale of Peak Gold JV interest ​ ​ ( 33,906 ) ​ ​ — Non-cash employee stock compensation expense ​ ​ 1,493 ​ ​ 2,101 Fair value changes in equity securities ​ ​ ( 2,539 ) ​ ​ 1,375 Deferred tax benefit ​ ​ ( 10,545 ) ​ ​ ( 33,139 ) Other ​ ​ 111 ​ ​ 281 Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ Royalty receivables ​ ​ ( 5,884 ) ​ ​ ( 5,902 ) Stream inventory ​ ​ ( 5,488 ) ​ ​ 608 Income tax receivable ​ ​ ( 1,864 ) ​ ​ ( 995 ) Prepaid expenses and other assets ​ ​ 260 ​ ​ ( 3,197 ) Accounts payable ​ ​ ( 235 ) ​ ​ 517 Income tax payable ​ ​ 12,408 ​ ​ ( 1,426 ) Uncertain tax positions ​ ​ ( 12,196 ) ​ ​ 1,748 Other liabilities ​ ​ ( 437 ) ​ ​ 1,682 Net cash provided by operating activities ​ $ 94,152 ​ $ 71,239 ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ ​ ​ ​ Acquisition of stream and royalty interests ​ ​ ( 11,304 ) ​ ​ ( 4,362 ) Proceeds from sale of Peak Gold JV interest ​ ​ 49,154 ​ ​ — Proceeds from sale of Contango shares ​ ​ 12,146 ​ ​ — Other ​ ​ ( 339 ) ​ ​ 4,858 Net cash provided by investing activities ​ $ 49,657 ​ $ 496 ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ ​ ​ ​ ​ Repayment of debt ​ ​ ( 30,000 ) ​ ​ ( 50,000 ) Net payments from issuance of common stock ​ ​ ( 1,389 ) ​ ​ ( 2,423 ) Common stock dividends ​ ​ ( 18,365 ) ​ ​ ( 17,373 ) Other ​ ​ ( 67 ) ​ ​ 556 Net cash used in financing activities ​ $ ( 49,821 ) ​ $ ( 69,240 ) Net increase in cash and equivalents ​ ​ 93,988 ​ ​ 2,495 Cash and equivalents at beginning of period ​ ​ 319,128 ​ ​ 119,475 Cash and equivalents at end of period ​ $ 413,116 ​ $ 121,970 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 6 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS ​ Royal Gold is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in production or in the development stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in a mining project that provide the right to revenue or metals produced from the project after deducting contractually specified costs, if any. ​ Summary of Significant Accounting Policies ​ The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. 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 months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. These interim unaudited financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the Securities and Exchange Commission on August 6, 2020 (“Fiscal 2020 10-K”). ​ Recently Adopted Accounting Standards ​ Current Expected Credit Loss ​ In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments , which, together with subsequent amendments, changes how an entity will record credit losses from an “incurred loss” approach to an “expected loss” approach. This update is effective for annual periods beginning after December 15, 2019 and interim financial statement periods within those years, with early adoption permitted. On July 1, 2020, we adopted the new guidance and, based on our assessment, the adoption of the new guidance did not have any impact on our consolidated financial statements. ​ 2. SALE OF PEAK GOLD JV INTEREST ​ On September 30, 2020, we entered into an agreement with an affiliate of Kinross Gold Corporation to sell our 40 % membership interest in the Peak Gold Project for cash consideration of $ 49.2 million and to sell our 809,744 common shares in Contango Ore, Inc. (“Contango”), our partner in Peak Gold, LLC, for cash consideration of $ 12.1 million. ​ In addition to the total cash consideration of $ 61.3 million, we received the following royalty interests: ​ ● An incremental 28 % net smelter royalty on silver produced from an area of interest which includes the current Peak Gold Project resource area, in respect of which Peak Gold, LLC retains the right to acquire 50 % of this royalty; and ● An incremental 1 % net smelter return royalty on certain State of Alaska mining claims, increasing our royalty on this area from 2 % to 3 %. ​ The royalties are recorded as exploration stage royalty interests in Stream and royalty interests, net in our consolidated balance sheets at September 30, 2020 and have a combined value of approximately $ 4.4 million. We recorded a gain of $ 33.9 million on the sale of our 40 % membership interest in the Peak Gold Project. The mark-to-market increase of $ 3.6 million on the sale of our 809,744 common shares in Contango is included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income. ​ ​ 7 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ 3. STREAM AND ROYALTY INTERESTS, NET ​ The following tables summarize our stream and royalty interests, net as of September 30, 2020 and June 30, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ Mount Milligan ​ $ 790,635 ​ $ ( 251,423 ) ​ $ 539,212 Pueblo Viejo ​ ​ 610,404 ​ ​ ( 215,824 ) ​ ​ 394,580 Andacollo ​ ​ 388,182 ​ ​ ( 116,328 ) ​ ​ 271,854 Rainy River ​ ​ 175,727 ​ ​ ( 30,480 ) ​ ​ 145,247 Wassa ​ ​ 146,475 ​ ​ ( 70,677 ) ​ ​ 75,798 Total production stage stream interests ​ ​ 2,111,423 ​ ​ ( 684,732 ) ​ ​ 1,426,691 Production stage royalty interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ Voisey's Bay ​ ​ 205,724 ​ ​ ( 103,271 ) ​ ​ 102,453 Peñasquito ​ ​ 99,172 ​ ​ ( 45,741 ) ​ ​ 53,431 Holt ​ ​ 34,612 ​ ​ ( 23,867 ) ​ ​ 10,745 Cortez ​ ​ 80,681 ​ ​ ( 15,657 ) ​ ​ 65,024 Other ​ ​ 485,504 ​ ​ ( 406,226 ) ​ ​ 79,278 Total production stage royalty interests ​ ​ 905,693 ​ ​ ( 594,762 ) ​ ​ 310,931 Total production stage stream and royalty interests ​ ​ 3,017,116 ​ ​ ( 1,279,494 ) ​ ​ 1,737,622 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Development stage stream interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ Khoemac a u ​ ​ 147,718 ​ ​ — ​ ​ 147,718 Other ​ ​ 12,037 ​ ​ — ​ ​ 12,037 Development stage royalty interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ 70,952 ​ ​ — ​ ​ 70,952 Total development stage stream and royalty interests ​ ​ 230,707 ​ ​ — ​ ​ 230,707 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exploration stage royalty interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ Pascua-Lama ​ ​ 177,690 ​ ​ — ​ ​ 177,690 Other ​ ​ 96,295 ​ ​ — ​ ​ 96,295 Total exploration stage royalty interests ​ ​ 273,985 ​ ​ — ​ ​ 273,985 Total stream and royalty interests, net ​ $ 3,521,808 ​ $ ( 1,279,494 ) ​ $ 2,242,314 ​ 8 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2020 (Amounts in thousands): Cost Accumulated Depletion Impairments ​ Net Production stage stream interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mount Milligan ​ $ 790,635 ​ $ ( 236,352 ) ​ $ — ​ $ 554,283 Pueblo Viejo ​ ​ 610,404 ​ ​ ( 203,935 ) ​ ​ — ​ ​ 406,469 Andacollo ​ ​ 388,182 ​ ​ ( 110,521 ) ​ ​ — ​ ​ 277,661 Rainy River ​ ​ 175,727 ​ ​ ( 27,278 ) ​ ​ — ​ ​ 148,449 Wassa ​ ​ 146,475 ​ ​ ( 67,619 ) ​ ​ — ​ ​ 78,856 Total production stage stream interests ​ ​ 2,111,423 ​ ​ ( 645,705 ) ​ ​ — ​ ​ 1,465,718 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production stage royalty interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Voisey's Bay ​ ​ 205,724 ​ ​ ( 101,381 ) ​ ​ — ​ ​ 104,343 Peñasquito ​ ​ 99,172 ​ ​ ( 44,614 ) ​ ​ — ​ ​ 54,558 Holt ​ ​ 34,612 ​ ​ ( 23,851 ) ​ ​ — ​ ​ 10,761 Cortez ​ ​ 80,681 ​ ​ ( 15,065 ) ​ ​ — ​ ​ 65,616 Other ​ ​ 487,225 ​ ​ ( 403,080 ) ​ ​ ( 1,341 ) ​ ​ 82,804 Total production stage royalty interests ​ ​ 907,414 ​ ​ ( 587,991 ) ​ ​ ( 1,341 ) ​ ​ 318,082 Total production stage stream and royalty interests ​ ​ 3,018,837 ​ ​ ( 1,233,696 ) ​ ​ ( 1,341 ) ​ ​ 1,783,800 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Development stage stream interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Khoemac a u ​ ​ 136,608 ​ ​ — ​ ​ — ​ ​ 136,608 Other ​ ​ 12,037 ​ ​ — ​ ​ — ​ ​ 12,037 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Development stage royalty interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ 70,952 ​ ​ — ​ ​ — ​ ​ 70,952 Total development stage royalty interests ​ ​ 70,952 ​ ​ — ​ ​ — ​ ​ 70,952 Total development stage stream and royalty interests ​ ​ 219,597 ​ ​ — ​ ​ — ​ ​ 219,597 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exploration stage royalty interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pascua-Lama ​ ​ 177,690 ​ ​ — ​ ​ — ​ ​ 177,690 Other ​ ​ 137,826 ​ ​ — ​ ​ — ​ ​ 137,826 Total exploration stage royalty interests ​ ​ 315,516 ​ ​ — ​ ​ — ​ ​ 315,516 Total stream and royalty interests, net ​ $ 3,553,950 ​ $ ( 1,233,696 ) ​ $ ( 1,341 ) ​ $ 2,318,913 ​ Separation of the Wassa and Prestea and Bogoso Stream Agreement ​ On October 1, 2020, we announced the separation of the Wassa, and Prestea and Bogoso gold stream agreements into separate stream agreements effective September 30, 2020. This separation was completed to facilitate the sale by Golden Star Resources Ltd. (“Golden Star”) of the Prestea and Bogoso mines to Future Global Resources (“FGR”). ​ The Wassa stream agreement, which remains with Golden Star, provides us the right to purchase 10.5 % of the gold produced from the Wassa mine until the delivery of 240,000 ounces, after which the stream percentage will decrease to 5.5 %. The cash purchase price for gold is 20 % of the spot price per ounce delivered until the delivery of 240,000 ounces, and 30 % of the spot price per ounce delivered thereafter. ​ The Prestea and Bogoso stream agreement with FGR provides us the right to purchase 5.5 % of the gold produced from the Prestea and Bogoso mines in return for a cash purchase price of 30 % of the spot price per ounce delivered. ​ The material terms of both the Wassa stream agreement and the Prestea/Bogoso stream agreement, including security and the rights and obligations of both Royal Gold and Golden Star, remain substantially consistent with those terms in the original agreement. The Wassa, and Prestea and Bogoso streams are recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets and have a carrying value of $ 75.9 million as of September 30, 2020. ​ 9 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ COVID-19 and current economic environment ​ Earlier in calendar 2020, several of our operating counterparties announced temporary operational curtailments or the withdrawal or review of disclosed guidance due to the ongoing COVID-19 pandemic. The economic and societal impacts associated with COVID-19 remain fluid and continue to change rapidly. We continue to monitor any developments that the COVID-19 pandemic may have on our stream or royalty interests as part of our regular asset impairment analysis. ​ 4. MARKETABLE EQUITY SECURITIES ​ As of September 30, 2020, our marketable equity securities include 3,949,575 common shares of Battle North Gold Corporation, and warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc. (“TriStar”). Our marketable equity securities are measured at fair value (Note 12) each reporting period with any changes in fair value recognized in net income. ​ As discussed in Note 2, on September 30, 2020, we sold 809,744 common shares of Contango for total consideration of $ 12.1 million and recorded a mark-to-market increase of $ 3.6 million on the sale, which is included in Fair value changes in equity securities in our consolidated statement of operations and comprehensive income. ​ The fair value of our marketable equity securities increased $ 2.5 million and decreased $ 1.4 million for the three months ended September 30, 2020 and 2019, respectively, and are included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income. The carrying value of our marketable equity securities as of September 30, 2020 and June 30, 2020 was $ 8.3 million and $ 17.9 million, respectively, and is included in Other assets on our consolidated balance sheets. ​ 5. DEBT ​ Our debt as of September 30, 2020 and June 30, 2020 consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ As of June 30, 2020 ​ Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total ​ ​ ​ (Amounts in thousands) ​ ​ (Amounts in thousands) Revolving credit facility ​ $ 275,000 ​ $ ( 4,304 ) ​ $ 270,696 ​ $ 305,000 ​ $ ( 4,561 ) ​ $ 300,439 Total debt ​ $ 275,000 ​ $ ( 4,304 ) ​ $ 270,696 ​ $ 305,000 ​ $ ( 4,561 ) ​ $ 300,439 ​ Revolving credit facility ​ As of September 30, 2020, we had $ 275 million outstanding and $ 725 million available under our revolving credit facility. As of September 30, 2020, the interest rate on borrowings under our revolving credit facility was LIBOR plus 1.10 % for an all-in rate of 1.40 %. Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $ 1.3 million and $ 2.2 million for the three months ended September 30, 2020, and 2019, respectively. As discussed in Note 6 to the consolidated financial statements in our Fiscal 2020 10-K, we have financial covenants associated with our revolving credit facility. As of September 30, 2020, we were in compliance with each financial covenant. ​ On October 2, 2020, we repaid $ 75 million of the outstanding borrowings under our revolving credit facility. This increased the amount available under our revolving credit facility to $ 800 million and decreased the amount outstanding to $ 200 million. ​ Royal Gold may repay any borrowings under our revolving credit facility at any time without premium or penalty. Our revolving credit facility matures on June 3, 2024. ​ 6. LEASES ​ Our significant lease arrangements relate to our office spaces. These arrangements are for leases of assets such as corporate office space and office equipment. We lease office space and office equipment under operating leases expiring at various 10 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ dates through the fiscal year ending June 30, 2030. The following amounts were recorded in the consolidated balance sheets at September 30, 2020 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Classification ​ September 30, 2020 Operating Leases ​ ​ ​ ​ ​ Right-of-use assets - current Prepaid expenses and other $ 829 Right-of-use assets - non-current ​ Other assets ​ ​ 6,878 Total right-of-use assets ​ ​ ​ $ 7,707 ​ ​ ​ ​ ​ ​ Lease liabilities - current ​ Other current liabilities ​ $ 918 Lease liabilities - non-current ​ Other long-term liabilities ​ ​ 8,118 Total operating lease liabilities ​ ​ ​ $ 9,036 ​ Maturities of operating lease liabilities at September 30, 2020 were as follows (amounts in thousands): ​ ​ ​ ​ ​ Fiscal Years: ​ Operating Leases 2021 ​ $ 847 2022 ​ ​ 1,127 2023 ​ ​ 1,114 2024 ​ ​ 1,125 2025 ​ ​ 1,097 Thereafter ​ ​ 4,815 Total lease payments ​ $ 10,125 Less imputed interest ​ ​ ( 1,089 ) Total ​ $ 9,036 ​ Other information pertaining to leases consist of the following: ​ ​ ​ ​ ​ ​ ​ September 30, 2020 Operating Lease Term and Discount Rate ​ ​ ​ Weighted average remaining lease term in years ​ ​ 9 Weighted average discount rate ​ ​ 2.5 % ​ We did not have any finance leases as of September 30, 2020. ​ 7. REVENUE ​ Revenue Recognition ​ Under U.S. GAAP guidance, 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. 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. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below. ​ Stream Interests ​ A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily using average spot rate gold, silver and copper forward contracts. The sales price for these average spot rate forward contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive number of trading days between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time) commencing shortly after 11 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ receipt and purchase of the metal. We settle our forward sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our forward sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the metal transfer to the purchaser. ​ Royalty Interests ​ Royalties are non-operating interests in mining projects that provide the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (for example, a monthly or quarterly average spot price) for the period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to their ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer. We have further determined that the transfer of each unit of metal production comprising our royalty interest to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time of metal production by the operator. Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable offsite treatment, refining, transportation and, if applicable, mining costs. ​ Royalty Revenue Estimates ​ For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements for that period. As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator. If adequate information is not available from the operator or from other public sources before we issue our financial statements, we will recognize royalty revenue during the period in which the necessary payment information is received. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known. Please also refer to our “Use of Estimates” accounting policy discussed in our Fiscal 2020 10-K. For the three months ended September 30, 2020, royalty revenue that was estimated or was attributable to metal production for a period prior to September 30, 2020, was not material. ​ Disaggregation of Revenue ​ We have identified two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 11. ​ Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ September 30, ​ September 30, ​ 2020 ​ 2019 Stream revenue: ​ ​ ​ ​ ​ Gold $ 83,597 ​ $ 72,224 Silver ​ 10,898 ​ ​ 8,436 Copper ​ 12,008 ​ ​ 6,321 Total stream revenue $ 106,503 ​ $ 86,981 Royalty revenue: ​ ​ ​ ​ ​ Gold $ 26,904 ​ $ 21,757 Silver ​ 3,441 ​ ​ 1,829 Copper ​ 4,060 ​ ​ 2,980 Other ​ 5,972 ​ ​ 5,227 Total royalty revenue $ 40,377 ​ $ 31,793 Total revenue $ 146,880 ​ $ 118,774 ​ 12 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ September 30, ​ September 30, ​ ​ Metal(s) ​ 2020 ​ 2019 Stream revenue: ​ ​ ​ ​ ​ ​ ​ ​ Mount Milligan ​ Gold & Copper ​ $ 34,620 ​ $ 30,497 Pueblo Viejo ​ Gold & Silver ​ ​ 31,270 ​ ​ 21,618 Andacollo ​ Gold ​ ​ 23,509 ​ ​ 20,604 Wassa ​ Gold ​ ​ 9,108 ​ ​ 5,319 Other ​ Gold & Silver ​ ​ 7,996 ​ ​ 8,943 Total stream revenue ​ ​ ​ $ 106,503 ​ $ 86,981 Royalty revenue: ​ ​ ​ ​ ​ ​ ​ ​ Peñasquito ​ Gold, Silver, Lead & Zinc ​ $ 10,209 ​ $ 4,420 Cortez ​ Gold ​ ​ 5,684 ​ ​ 4,417 Other ​ Various ​ ​ 24,484 ​ ​ 22,956 Total royalty revenue ​ ​ ​ $ 40,377 ​ $ 31,793 Total revenue ​ ​ ​ $ 146,880 ​ $ 118,774 ​ Please refer to Note 11 for the geographical distribution of our revenue by reportable segment. ​ 8. STOCK-BASED COMPENSATION ​ We recognized stock-based compensation expense as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 ​ ​ ​ (Amounts in thousands) Stock options ​ $ 15 ​ $ 31 Stock appreciation rights ​ ​ 371 ​ ​ 442 Restricted stock ​ ​ 997 ​ ​ 1,243 Performance stock ​ ​ 110 ​ ​ 385 Total stock-based compensation expense ​ $ 1,493 ​ $ 2,101 ​ Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income. ​ During the three months ended September 30, 2020 and 2019, we granted the following stock-based compensation awards: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ September 30, ​ ​ September 30, ​ ​ 2020 ​ 2019 ​ ​ ​ (Number of shares) Stock options ​ ​ 2,860 ​ ​ 1,604 Stock appreciation rights ​ ​ 64,100 ​ ​ 46,726 Restricted stock ​ ​ 26,104 ​ ​ 23,976 Performance stock (at maximum 200 % attainment) ​ ​ 35,380 ​ ​ 28,560 Total equity awards granted ​ ​ 128,444 ​ ​ 100,866 ​ 13 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ As of September 30, 2020, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized Weighted- ​ ​ compensation ​ average vesting ​ ​ expense period (years) Stock options ​ $ 138 ​ ​ 2.5 Stock appreciation rights ​ ​ 3,552 ​ ​ 2.5 Restricted stock ​ ​ 5,499 ​ ​ 3.6 Performance stock ​ ​ 2,120 ​ ​ 2.6 ​ ​ 9. EARNINGS PER SHARE (“EPS”) ​ Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method. Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. Our unexercised stock option awards, unexercised stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic earnings per common share are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share. ​ The following tables summarize the effects of dilutive securities on diluted EPS for the period (amounts in thousands, except share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 Net income attributable to Royal Gold common stockholders ​ $ 106,939 ​ $ 70,453 Weighted-average shares for basic EPS ​ ​ 65,537,714 ​ ​ 65,465,611 Effect of other dilutive securities ​ ​ 94,975 ​ ​ 150,315 Weighted-average shares for diluted EPS ​ ​ 65,632,689 ​ ​ 65,615,926 Basic earnings per share ​ $ 1.63 ​ $ 1.07 Diluted earnings per share ​ $ 1.63 ​ $ 1.07 ​ ​ 10. INCOME TAXES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 ​ ​ (Amounts in thousands, except rate) Income tax benefit ​ $ ( 2,377 ) ​ $ ( 23,525 ) Effective tax rate ​ ​ ( 2.3 %) ​ ​ ( 51.9 %) ​ The effective tax rate for the three months ended September 30, 2020, included discrete tax benefits ($ 24.5 million) attributable to the settlement of an uncertain tax position with a foreign jurisdiction and the release of a valuation allowance related to deferred tax assets. The effective tax rate for the three months September 30, 2019 included a discrete tax benefit ($ 32.3 million) primarily related to the remeasurement of certain deferred tax assets and a net step-up in the basis of tax assets due to the enactment of Swiss Tax Reform. ​ 14 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ 11. SEGMENT INFORMATION ​ We manage our business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ As of June 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ Total stream ​ ​ ​ ​ ​ ​ ​ Total stream ​ ​ Stream ​ Royalty ​ and royalty ​ Stream ​ Royalty ​ and royalty ​ interest interest interests, net interest interest ​ interests, net Canada ​ $ 684,459 ​ $ 186,958 ​ $ 871,417 ​ $ 702,732 ​ $ 189,855 ​ $ 892,587 Dominican Republic ​ ​ 394,580 ​ ​ — ​ ​ 394,580 ​ ​ 406,469 ​ ​ — ​ ​ 406,469 Chile ​ ​ 271,854 ​ ​ 224,116 ​ ​ 495,970 ​ ​ 277,661 ​ ​ 223,922 ​ ​ 501,583 Africa ​ ​ 223,515 ​ ​ 321 ​ ​ 223,836 ​ ​ 215,463 ​ ​ 321 ​ ​ 215,784 Mexico ​ ​ — ​ ​ 74,273 ​ ​ 74,273 ​ ​ — ​ ​ 75,951 ​ ​ 75,951 United States ​ ​ — ​ ​ 116,723 ​ ​ 116,723 ​ ​ — ​ ​ 159,445 ​ ​ 159,445 Australia ​ ​ — ​ ​ 29,649 ​ ​ 29,649 ​ ​ — ​ ​ 30,006 ​ ​ 30,006 Rest of world ​ ​ 12,038 ​ ​ 23,828 ​ ​ 35,866 ​ ​ 12,038 ​ ​ 25,050 ​ ​ 37,088 Total ​ $ 1,586,446 ​ $ 655,868 ​ $ 2,242,314 ​ $ 1,614,363 ​ $ 704,550 ​ $ 2,318,913 ​ Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests ​ $ 106,503 ​ $ 21,902 ​ $ — ​ $ 39,027 ​ $ 45,574 Royalty interests ​ ​ 40,377 ​ ​ — ​ ​ 1,355 ​ ​ 7,187 ​ ​ 31,835 Total ​ $ 146,880 ​ $ 21,902 ​ $ 1,355 ​ $ 46,214 ​ $ 77,409 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2019 ​ Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests ​ $ 86,981 ​ $ 20,111 ​ $ — ​ $ 31,462 ​ $ 35,408 Royalty interests ​ ​ 31,793 ​ ​ — ​ ​ 1,099 ​ ​ 7,199 ​ ​ 23,495 Total ​ $ 118,774 ​ $ 20,111 ​ $ 1,099 ​ $ 38,661 ​ $ 58,903 ​ (1) Excludes depreciation, depletion and amortization (2) Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income. ​ 15 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ ​ 2019 Total segment gross profit ​ $ 77,409 ​ $ 58,903 ​ ​ ​ ​ ​ ​ ​ Costs and expenses ​ ​ ​ ​ ​ ​ General and administrative expenses ​ ​ 7,454 ​ ​ 7,443 Exploration costs ​ ​ 563 ​ ​ 2,626 Depreciation and amortization ​ ​ 86 ​ ​ 53 Gain on sale of Peak Gold member interest ​ ​ 33,906 ​ ​ — Operating income ​ ​ 103,212 ​ ​ 48,781 Fair value changes in equity securities ​ ​ 2,539 ​ ​ ( 1,375 ) Interest and other income ​ ​ 421 ​ ​ 775 Interest and other expense ​ ​ ( 1,875 ) ​ ​ ( 2,834 ) Income before income taxes ​ $ 104,297 ​ $ 45,347 ​ Our revenue by reportable segment for the three months ended September 30, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 Stream interests: ​ ​ ​ ​ ​ ​ Canada ​ $ 41,586 ​ $ 37,663 Dominican Republic ​ ​ 31,270 ​ ​ 21,618 Chile ​ ​ 23,509 ​ ​ 20,604 Africa ​ ​ 10,138 ​ ​ 7,096 Total stream interests ​ $ 106,503 ​ $ 86,981 ​ ​ ​ ​ ​ ​ ​ Royalty interests: ​ ​ ​ ​ ​ ​ United States ​ $ 13,698 ​ $ 10,602 Mexico ​ ​ 11,577 ​ ​ 6,387 Canada ​ ​ 7,410 ​ ​ 8,921 Australia ​ ​ 4,542 ​ ​ 3,802 Africa ​ ​ 750 ​ ​ 470 Rest of world ​ ​ 2,400 ​ ​ 1,611 Total royalty interests ​ $ 40,377 ​ $ 31,793 Total revenue ​ $ 146,880 ​ $ 118,774 ​ ​ 12. FAIR VALUE MEASUREMENTS ​ Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ​ Level 1: Quoted prices for identical instruments in active markets; ​ Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and ​ 16 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) ​ Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). ​ The following table sets forth our financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ ​ ​ ​ Fair Value ​ Carrying Amount Total Level 1 Level 2 Level 3 Assets (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable equity securities (1) ​ $ 8,256 ​ $ 8,256 ​ $ 5,274 ​ $ 2,982 ​ $ — (1) Included in Other assets on our consolidated balance sheets. ​ Our marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets multiplied by the quantity of shares held. The carrying value of our revolving credit facility (Note 5) approximates fair value as of September 30, 2020. The TriStar Gold warrants classified within Level 2 of the fair value hierarchy are model-derived (Black-Scholes) valuations in which the significant inputs are observable in active markets. ​ As of September 30, 2020, 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. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs. ​ ​ 13. COMMITMENTS AND CONTINGENCIES ​ Khoemac a u Silver Stream Acquisition ​ Pursuant to our Khoemac a u silver stream transaction in February 2019, we made the following advance payments under our conditional funding schedule: ​ ● $ 65.8 million – November 5, 2019 ● $ 22.0 million – February 2, 2020 ● $ 47.9 million – April 3, 2020 ● $ 11.1 million – July 5, 2020 ● $ 32.5 million – October 5, 2020 ​ Including the fifth advance payment made on October 5, 2020, we have made total contributions of $ 179.3 million. We expect to commit the remaining $ 32.7 million in calendar year 2021 for the Base Silver Stream and $ 85.7 million should Khoemacau Copper Mining (Pty.) Limited elect to fully exercise the Option Silver Stream. Further payments are subject to certain conditions and are scheduled to be made on a quarterly basis using an agreed formula and certification process as project spending progresses. Refer to our Fiscal 2020 10-K for further details on the Khoemac a u silver stream acquisition. ​ Ilovica Gold Stream Acquisition ​ As of September 30, 2020, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition in October 2014, remains subject to certain conditions. ​ ​ ​ ​ ​ ​ 17 ​