Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 001-13357 | |
Entity Registrant Name | Royal Gold, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-0835164 | |
Entity Address, Address Line One | 1144 15th Street, Suite 2500 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 573-1660 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RGLD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Shares Outstanding | 65,639,022 | |
Entity Central Index Key | 0000085535 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and equivalents | $ 183,707 | $ 143,551 |
Royalty receivables | 53,518 | 54,088 |
Income tax receivable | 4,397 | 4,915 |
Stream inventory | 8,490 | 11,607 |
Prepaid expenses and other | 8,533 | 1,835 |
Total current assets | 258,645 | 215,996 |
Stream and royalty interests, net (Note 3) | 2,433,689 | 2,443,752 |
Other assets | 97,518 | 97,284 |
Total assets | 2,789,852 | 2,757,032 |
LIABILITIES | ||
Accounts payable | 6,267 | 6,475 |
Dividends payable | 22,984 | 22,966 |
Income tax payable | 8,160 | 19,070 |
Other current liabilities | 12,132 | 12,917 |
Total current liabilities | 49,543 | 61,428 |
Deferred tax liabilities | 87,760 | 87,705 |
Other liabilities | 6,435 | 6,688 |
Total liabilities | 143,738 | 155,821 |
Commitments and contingencies (Note 12) | ||
EQUITY | ||
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,568,799 and 65,564,364 shares outstanding, respectively | 656 | 656 |
Additional paid-in capital | 2,208,425 | 2,206,159 |
Accumulated earnings | 424,608 | 381,929 |
Total Royal Gold stockholders' equity | 2,633,689 | 2,588,744 |
Non-controlling interests | 12,425 | 12,467 |
Total equity | 2,646,114 | 2,601,211 |
Total liabilities and equity | $ 2,789,852 | $ 2,757,032 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 65,568,799 | 65,564,364 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Operations and Comprehensive Income | ||
Revenue (Note 6) | $ 162,355 | $ 142,589 |
Costs and expenses | ||
Cost of sales (excludes depreciation, depletion and amortization) | 22,639 | 21,469 |
General and administrative | 8,931 | 6,932 |
Production taxes | 2,221 | 1,835 |
Depreciation, depletion and amortization | 47,988 | 41,296 |
Total costs and expenses | 81,779 | 71,532 |
Operating income | 80,576 | 71,057 |
Fair value changes in equity securities | 613 | 1,902 |
Interest and other income | 975 | 733 |
Interest and other expense | (898) | (1,820) |
Income before income taxes | 81,266 | 71,872 |
Income tax expense | (15,304) | (17,679) |
Net income and comprehensive income | 65,962 | 54,193 |
Net income and comprehensive income attributable to non-controlling interests | (287) | (167) |
Net income and comprehensive income attributable to Royal Gold common stockholders | $ 65,675 | $ 54,026 |
Net income per share attributable to Royal Gold common stockholders: | ||
Basic earnings per share | $ 1 | $ 0.82 |
Basic weighted average shares outstanding | 65,565,735 | 65,550,400 |
Diluted earnings per share | $ 1 | $ 0.82 |
Diluted weighted average shares outstanding | 65,644,668 | 65,621,603 |
Cash dividends declared per common share | $ 0.35 | $ 0.30 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Accumulated Earnings | Non-controlling Interests | Total |
Balance at Dec. 31, 2020 | $ 656 | $ 2,201,076 | $ 189,910 | $ 13,037 | $ 2,404,679 |
Balance (in shares) at Dec. 31, 2020 | 65,548,415 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 1,334 | 1,334 | |||
Stock-based compensation and related share issuances (in shares) | 2,030 | ||||
Distributions to non-controlling interests | (399) | (399) | |||
Net income and comprehensive income | 54,026 | 167 | 54,193 | ||
Dividends declared | (19,682) | (19,682) | |||
Balance at Mar. 31, 2021 | $ 656 | 2,202,410 | 224,254 | 12,805 | 2,440,125 |
Balance (in shares) at Mar. 31, 2021 | 65,550,445 | ||||
Balance at Dec. 31, 2021 | $ 656 | 2,206,159 | 381,929 | 12,467 | 2,601,211 |
Balance (in shares) at Dec. 31, 2021 | 65,564,364 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation and related share issuances | 2,266 | 2,266 | |||
Stock-based compensation and related share issuances (in shares) | 4,435 | ||||
Distributions to non-controlling interests | (329) | (329) | |||
Net income and comprehensive income | 65,675 | 287 | 65,962 | ||
Dividends declared | (22,996) | (22,996) | |||
Balance at Mar. 31, 2022 | $ 656 | $ 2,208,425 | $ 424,608 | $ 12,425 | $ 2,646,114 |
Balance (in shares) at Mar. 31, 2022 | 65,568,799 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income and comprehensive income | $ 65,962 | $ 54,193 |
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 47,988 | 41,296 |
Non-cash employee stock compensation expense | 2,124 | 1,344 |
Fair value changes in equity securities | (613) | (1,902) |
Deferred tax expense (benefit) | 688 | (645) |
Other | 245 | 286 |
Changes in assets and liabilities: | ||
Royalty receivables | 569 | (1,111) |
Stream inventory | 3,118 | (591) |
Income tax receivable | 518 | (5,731) |
Prepaid expenses and other assets | (7,309) | 98 |
Accounts payable | (208) | 1,793 |
Income tax payable | (10,910) | 2,342 |
Uncertain tax positions | (310) | |
Other liabilities | (1,039) | 1,171 |
Net cash provided by operating activities | 101,133 | 92,233 |
Cash flows from investing activities: | ||
Acquisition of stream and royalty interests | (37,800) | (33,656) |
Other | (11) | (87) |
Net cash used in investing activities | (37,811) | (33,743) |
Cash flows from financing activities: | ||
Repayment of debt | (50,000) | |
Net payments from issuance of common stock | 141 | (10) |
Common stock dividends | (22,978) | (19,682) |
Other | (329) | (397) |
Net cash used in financing activities | (23,166) | (70,089) |
Net increase (decrease) in cash and equivalents | 40,156 | (11,599) |
Cash and equivalents at beginning of period | 143,551 | 381,859 |
Cash and equivalents at end of period | $ 183,707 | $ 370,260 |
OPERATIONS, SUMMARY OF SIGNIFIC
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2022 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS Royal Gold Inc., together with its subsidiaries (“Royal Gold,” the “Company,” “we,” “us,” or “our”), 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 March 31, 2022 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2022. These interim unaudited consolidated financial statements should be read in conjunction with our Transition Report on Form 10-K for the six months ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022 (“Transition Report”). Recent Accounting Standards We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2022 | |
ACQUISITIONS | |
ACQUISITIONS | 2. ACQUISITIONS Lawyers Royalty Acquisition On March 24, 2022, we acquired a 0.5% net smelter returns royalty (“NSR”) on production from the Lawyers Project, currently operated by Benchmark Metals Inc., which is located in British Columbia, Canada. As part of this transaction, we also acquired a right of first offer (“ROFO”) for an existing 2.0% NSR royalty over the Ranch Project that is located adjacent to the Lawyers Project. We paid $8.0 million in cash consideration for the royalty and ROFO to Guardsmen Resources Inc. The Lawyers Project acquisition has been accounted for as an asset acquisition. The $8.0 million cash consideration, plus direct acquisition costs, have been recorded as an exploration stage royalty interest (Note 3) within Stream and royalty interests, net Khoemac a u Silver Stream On February 23, 2022, we made an advance payment of $10.0 million toward the option stream which increased our right to receive payable silver produced from Khoemac a Stream and royalty interests, net As of March 31, 2022, $25.0 million of the subordinated debt facility, and $2.6 million of accrued interest remains outstanding on the Khoemac a Other assets consolidated balance sheets. Refer to our Transition Report for further details on the Khoemac a |
STREAM AND ROYALTY INTERESTS, N
STREAM AND ROYALTY INTERESTS, NET | 3 Months Ended |
Mar. 31, 2022 | |
STREAM AND ROYALTY INTERESTS, NET | |
STREAM AND ROYALTY INTERESTS, NET | Click or tap here to enter text. As of March 31, 2022 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (352,165) $ 438,470 Pueblo Viejo 610,405 (267,872) 342,533 Andacollo 388,182 (143,144) 245,038 Khoemac a 265,911 (4,963) 260,948 Rainy River 175,727 (53,285) 122,442 Wassa 146,475 (87,597) 58,878 Other 69,100 (6,254) 62,846 Total production stage stream interests 2,446,435 (915,280) 1,531,155 Production stage royalty interests: Voisey's Bay 205,724 (115,738) 89,986 Red Chris 116,187 (1,797) 114,390 Peñasquito 99,172 (54,243) 44,929 Cortez 80,681 (26,693) 53,988 Other 447,014 (390,227) 56,787 Total production stage royalty interests 948,778 (588,698) 360,080 Total production stage stream and royalty interests 3,395,213 (1,503,978) 1,891,235 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Côté 45,421 — 45,421 Other 62,797 — 62,797 Total development stage stream and royalty interests 120,256 — 120,256 Exploration stage stream interests: NX Gold 34,213 — 34,213 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 29,610 Other 131,790 — 131,790 Total exploration stage stream and royalty interests 422,198 — 422,198 Total stream and royalty interests, net $ 3,937,667 $ (1,503,978) $ 2,433,689 |
MARKETABLE EQUITY SECURITIES
MARKETABLE EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
MARKETABLE EQUITY SECURITIES | |
MARKETABLE EQUITY SECURITIES | 4. MARKETABLE EQUITY SECURITIES As of March 31, 2022, our marketable equity securities include warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc. Our marketable equity securities are measured at fair value (Note 11) each reporting period with any changes in fair value recognized in net income. The fair value of our marketable equity securities increased $0.6 million and $1.9 million for the three months ended March 31, 2022, and 2021, respectively, and these changes are included in Fair value changes in equity securities Other assets |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
DEBT | |
DEBT | 5. DEBT Revolving credit facility As of March 31, 2022, we had no amounts outstanding under our revolving credit facility dated June 2, 2017, and as amended. Interest expense recognized on the revolving credit facility for the three months ended March 31, 2022, and 2021, was approximately $0.2 million and $0.8 million, respectively, and included the amortization of the debt issuance costs and interest on the outstanding borrowings. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under the revolving credit facility as of March 31, 2022. We may repay any borrowings under the revolving credit facility at any time without premium or penalty. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
REVENUE | |
REVENUE | 6. REVENUE 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. 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 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 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 Transition Report. For the three months ended March 31, 2022, royalty revenue that was estimated or was attributable to metal production for a period prior to March 31, 2022, 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 10. Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended March 31, March 31, 2022 2021 Stream revenue: Gold $ 77,502 $ 65,511 Silver 11,439 12,805 Copper 16,310 17,030 Total stream revenue $ 105,251 $ 95,346 Royalty revenue: Gold $ 37,917 $ 31,245 Silver 4,317 4,208 Copper 6,705 4,015 Other 8,165 7,775 Total royalty revenue $ 57,104 $ 47,243 Total revenue $ 162,355 $ 142,589 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended March 31, March 31, Metal(s) 2022 2021 Stream revenue: Mount Milligan Gold & Copper $ 42,416 $ 33,803 Pueblo Viejo Gold & Silver 23,264 30,173 Andacollo Gold 15,674 13,022 Wassa Gold 7,202 8,774 Khoemac a Silver 2,389 — Other Gold & Silver 14,306 9,574 Total stream revenue $ 105,251 $ 95,346 Royalty revenue: Cortez Gold $ 16,714 $ 8,609 Peñasquito Gold, Silver, Lead & Zinc 13,094 13,128 Other Various 27,296 25,506 Total royalty revenue $ 57,104 $ 47,243 Total revenue $ 162,355 $ 142,589 Please refer to Note 10 for the geographical distribution of our revenue by reportable segment. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 7. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended March 31, March 31, 2022 2021 Restricted stock $ 1,155 $ 533 Performance stock 631 364 Stock appreciation rights 332 430 Stock options 6 17 Total stock-based compensation expense $ 2,124 $ 1,344 Stock-based compensation expense is included within General and administrative During the three months ended March 31, 2022 and 2021, we granted the following stock-based compensation awards: Three Months Ended March 31, March 31, 2022 2021 (Number of shares) Performance stock (at maximum 200% attainment) 39,380 — Restricted stock 28,220 — Total equity awards granted 67,600 — As of March 31, 2022, 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) Restricted stock $ 9,377 2.6 Performance stock 6,760 2.5 Stock appreciation rights 1,296 1.2 Stock options 43 1.3 |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE ("EPS") | |
EARNINGS PER SHARE ("EPS") | 8. EARNINGS PER SHARE (“EPS”) Basic EPS 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 EPS 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 EPS 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 EPS. The following tables summarize the effects of dilutive securities on diluted EPS for the periods shown below (amounts in thousands, except share data): Three Months Ended March 31, March 31, 2022 2021 Net income attributable to Royal Gold common stockholders $ 65,675 $ 54,026 Weighted-average shares for basic EPS 65,565,735 65,550,400 Effect of other dilutive securities 78,933 71,203 Weighted-average shares for diluted EPS 65,644,668 65,621,603 Basic EPS $ 1.00 $ 0.82 Diluted EPS $ 1.00 $ 0.82 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 9. INCOME TAXES Three Months Ended March 31, March 31, 2022 2021 Income tax expense $ 15,304 $ 17,679 Effective tax rate 18.8% 24.6% The effective tax rate for the three months ended March 31, 2021, included an income tax expense attributable to an increase in valuation allowance on certain deferred tax assets. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 10. 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. Our long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands): As of March 31, 2022 As of December 31, 2021 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 560,911 $ 415,905 $ 976,816 $ 579,326 $ 412,419 $ 991,745 Chile 245,038 224,116 469,154 249,147 224,116 473,263 Dominican Republic 342,532 — 342,532 350,083 — 350,083 Africa 319,827 321 320,148 297,569 321 297,890 United States — 103,855 103,855 — 107,761 107,761 Mexico — 58,276 58,276 — 60,977 60,977 Australia — 27,193 27,193 — 27,496 27,496 Rest of world 109,098 26,617 135,715 107,920 26,617 134,537 Total $ 1,577,406 $ 856,283 $ 2,433,689 $ 1,584,045 $ 859,707 $ 2,443,752 Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended March 31, 2022 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 105,251 $ 22,639 $ — $ 36,378 $ 46,234 Royalty interests 57,104 — 2,221 11,485 43,398 Total $ 162,355 $ 22,639 $ 2,221 $ 47,863 $ 89,632 Three Months Ended March 31, 2021 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 95,346 $ 21,469 $ — $ 32,595 $ 41,282 Royalty interests 47,243 — 1,835 8,607 36,801 Total $ 142,589 $ 21,469 $ 1,835 $ 41,202 $ 78,083 (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. A reconciliation of total segment gross profit to the consolidated Income before income taxes Three Months Ended March 31, March 31, 2022 2021 Total segment gross profit $ 89,632 $ 78,083 Costs and expenses General and administrative expenses 8,931 6,932 Depreciation and amortization 125 94 Operating income 80,576 71,057 Fair value changes in equity securities 613 1,902 Interest and other income 975 733 Interest and other expense (898) (1,820) Income before income taxes $ 81,266 $ 71,872 Our revenue by reportable segment for the three months ended March 31, 2022 and 2021 is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended March 31, March 31, 2022 2021 Stream interests: Canada $ 51,485 $ 42,609 Dominican Republic 23,264 30,173 Chile 15,674 13,022 Africa 8,446 9,542 Rest of world 6,382 — Total stream interests $ 105,251 $ 95,346 Royalty interests: United States $ 24,358 $ 16,474 Mexico 15,881 15,270 Canada 10,778 8,612 Australia 4,046 4,360 Africa 316 748 Rest of world 1,725 1,779 Total royalty interests $ 57,104 $ 47,243 Total revenue $ 162,355 $ 142,589 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 11. 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 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 March 31, 2022 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 2,346 $ 2,346 $ — $ 2,346 $ — (1) Other assets The TriStar Gold Inc. warrants (Note 4) 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. The carrying value of our revolving credit facility (Note 5) approximates fair value as of March 31, 2022. As of March 31, 2022, 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES NX Gold Exploration Payment On March 22, 2022, we made a payment of $3.2 million to a subsidiary of Ero Copper Corporation (“Ero”) as part of our commitment to support the achievement of success-based targets related to regional exploration and mineral resource additions. This payment has been recorded to exploration stage stream interests (Note 3) within Stream and royalty interests, net Ilovica Gold Stream Acquisition As of March 31, 2022, 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. |
OPERATIONS, SUMMARY OF SIGNIF_2
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS | |
Basis of Consolidation | 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 March 31, 2022 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2022. These interim unaudited consolidated financial statements should be read in conjunction with our Transition Report on Form 10-K for the six months ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022 (“Transition Report”). |
Recently Accounting Standards | Recent Accounting Standards We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements. |
STREAM AND ROYALTY INTERESTS,_2
STREAM AND ROYALTY INTERESTS, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
STREAM AND ROYALTY INTERESTS, NET | |
Schedule of stream and royalty interests | Click or tap here to enter text. As of March 31, 2022 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (352,165) $ 438,470 Pueblo Viejo 610,405 (267,872) 342,533 Andacollo 388,182 (143,144) 245,038 Khoemac a 265,911 (4,963) 260,948 Rainy River 175,727 (53,285) 122,442 Wassa 146,475 (87,597) 58,878 Other 69,100 (6,254) 62,846 Total production stage stream interests 2,446,435 (915,280) 1,531,155 Production stage royalty interests: Voisey's Bay 205,724 (115,738) 89,986 Red Chris 116,187 (1,797) 114,390 Peñasquito 99,172 (54,243) 44,929 Cortez 80,681 (26,693) 53,988 Other 447,014 (390,227) 56,787 Total production stage royalty interests 948,778 (588,698) 360,080 Total production stage stream and royalty interests 3,395,213 (1,503,978) 1,891,235 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Côté 45,421 — 45,421 Other 62,797 — 62,797 Total development stage stream and royalty interests 120,256 — 120,256 Exploration stage stream interests: NX Gold 34,213 — 34,213 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 29,610 Other 131,790 — 131,790 Total exploration stage stream and royalty interests 422,198 — 422,198 Total stream and royalty interests, net $ 3,937,667 $ (1,503,978) $ 2,433,689 As of December 31, 2021 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ (336,921) $ 453,714 Pueblo Viejo 610,405 (260,321) 350,084 Andacollo 388,182 (139,035) 249,147 Khoemac a 239,411 (3,402) 236,009 Rainy River 175,727 (50,115) 125,612 Wassa 146,475 (84,915) 61,560 Other 69,101 (4,193) 64,908 Total production stage stream interests 2,419,936 (878,902) 1,541,034 Production stage royalty interests: Voisey's Bay 205,724 (113,602) 92,122 Red Chris 116,187 — 116,187 Peñasquito 99,172 (53,022) 46,150 Cortez 80,681 (23,225) 57,456 Other 447,799 (387,364) 60,435 Total production stage royalty interests 949,563 (577,213) 372,350 Total production stage stream and royalty interests 3,369,499 (1,456,115) 1,913,384 Development stage stream interests: Other 12,037 — 12,037 Development stage royalty interests: Côté 45,421 — 45,421 Other 54,755 — 54,755 Total development stage stream and royalty interests 112,213 — 112,213 Exploration stage stream interests: NX Gold 30,974 — 30,974 Exploration stage royalty interests: Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 130,986 — 130,986 Total exploration stage royalty interests 418,155 — 418,155 Total stream and royalty interests, net $ 3,899,867 $ (1,456,115) $ 2,443,752 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
REVENUE | |
Summary of disaggregated revenue | Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended March 31, March 31, 2022 2021 Stream revenue: Gold $ 77,502 $ 65,511 Silver 11,439 12,805 Copper 16,310 17,030 Total stream revenue $ 105,251 $ 95,346 Royalty revenue: Gold $ 37,917 $ 31,245 Silver 4,317 4,208 Copper 6,705 4,015 Other 8,165 7,775 Total royalty revenue $ 57,104 $ 47,243 Total revenue $ 162,355 $ 142,589 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended March 31, March 31, Metal(s) 2022 2021 Stream revenue: Mount Milligan Gold & Copper $ 42,416 $ 33,803 Pueblo Viejo Gold & Silver 23,264 30,173 Andacollo Gold 15,674 13,022 Wassa Gold 7,202 8,774 Khoemac a Silver 2,389 — Other Gold & Silver 14,306 9,574 Total stream revenue $ 105,251 $ 95,346 Royalty revenue: Cortez Gold $ 16,714 $ 8,609 Peñasquito Gold, Silver, Lead & Zinc 13,094 13,128 Other Various 27,296 25,506 Total royalty revenue $ 57,104 $ 47,243 Total revenue $ 162,355 $ 142,589 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
STOCK-BASED COMPENSATION | |
Schedule of recognized stock-based compensation expense | Three Months Ended March 31, March 31, 2022 2021 Restricted stock $ 1,155 $ 533 Performance stock 631 364 Stock appreciation rights 332 430 Stock options 6 17 Total stock-based compensation expense $ 2,124 $ 1,344 |
Schedule of stock-based compensation awards | Three Months Ended March 31, March 31, 2022 2021 (Number of shares) Performance stock (at maximum 200% attainment) 39,380 — Restricted stock 28,220 — Total equity awards granted 67,600 — |
Schedule of unrecognized compensation expense | As of March 31, 2022, 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) Restricted stock $ 9,377 2.6 Performance stock 6,760 2.5 Stock appreciation rights 1,296 1.2 Stock options 43 1.3 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE ("EPS") | |
Summary of the effects of dilutive securities on diluted EPS | The following tables summarize the effects of dilutive securities on diluted EPS for the periods shown below (amounts in thousands, except share data): Three Months Ended March 31, March 31, 2022 2021 Net income attributable to Royal Gold common stockholders $ 65,675 $ 54,026 Weighted-average shares for basic EPS 65,565,735 65,550,400 Effect of other dilutive securities 78,933 71,203 Weighted-average shares for diluted EPS 65,644,668 65,621,603 Basic EPS $ 1.00 $ 0.82 Diluted EPS $ 1.00 $ 0.82 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
Components of income tax expense (benefit) | Three Months Ended March 31, March 31, 2022 2021 Income tax expense $ 15,304 $ 17,679 Effective tax rate 18.8% 24.6% |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SEGMENT INFORMATION | |
Schedule of geographical distribution of long-lived assets | As of March 31, 2022 As of December 31, 2021 Total stream Total stream Stream Royalty and royalty Stream Royalty and royalty interest interest interests, net interest interest interests, net Canada $ 560,911 $ 415,905 $ 976,816 $ 579,326 $ 412,419 $ 991,745 Chile 245,038 224,116 469,154 249,147 224,116 473,263 Dominican Republic 342,532 — 342,532 350,083 — 350,083 Africa 319,827 321 320,148 297,569 321 297,890 United States — 103,855 103,855 — 107,761 107,761 Mexico — 58,276 58,276 — 60,977 60,977 Australia — 27,193 27,193 — 27,496 27,496 Rest of world 109,098 26,617 135,715 107,920 26,617 134,537 Total $ 1,577,406 $ 856,283 $ 2,433,689 $ 1,584,045 $ 859,707 $ 2,443,752 |
Schedule of reportable segments for assessing performance | Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended March 31, 2022 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 105,251 $ 22,639 $ — $ 36,378 $ 46,234 Royalty interests 57,104 — 2,221 11,485 43,398 Total $ 162,355 $ 22,639 $ 2,221 $ 47,863 $ 89,632 Three Months Ended March 31, 2021 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 95,346 $ 21,469 $ — $ 32,595 $ 41,282 Royalty interests 47,243 — 1,835 8,607 36,801 Total $ 142,589 $ 21,469 $ 1,835 $ 41,202 $ 78,083 (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. |
Schedule of reconciliation of segment gross profit to consolidated income (loss) | A reconciliation of total segment gross profit to the consolidated Income before income taxes Three Months Ended March 31, March 31, 2022 2021 Total segment gross profit $ 89,632 $ 78,083 Costs and expenses General and administrative expenses 8,931 6,932 Depreciation and amortization 125 94 Operating income 80,576 71,057 Fair value changes in equity securities 613 1,902 Interest and other income 975 733 Interest and other expense (898) (1,820) Income before income taxes $ 81,266 $ 71,872 |
Schedule of revenue by reportable segment geographically distributed | Our revenue by reportable segment for the three months ended March 31, 2022 and 2021 is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended March 31, March 31, 2022 2021 Stream interests: Canada $ 51,485 $ 42,609 Dominican Republic 23,264 30,173 Chile 15,674 13,022 Africa 8,446 9,542 Rest of world 6,382 — Total stream interests $ 105,251 $ 95,346 Royalty interests: United States $ 24,358 $ 16,474 Mexico 15,881 15,270 Canada 10,778 8,612 Australia 4,046 4,360 Africa 316 748 Rest of world 1,725 1,779 Total royalty interests $ 57,104 $ 47,243 Total revenue $ 162,355 $ 142,589 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on recurring basis | As of March 31, 2022 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Assets (amounts in thousands): Marketable equity securities (1) $ 2,346 $ 2,346 $ — $ 2,346 $ — (1) Other assets |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Mar. 24, 2022 | Mar. 14, 2022 | Feb. 23, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 22, 2022 | Dec. 31, 2021 |
Acquisitions | |||||||
Acquisition consideration paid | $ 37,800 | $ 33,656 | |||||
Cost | 3,937,667 | $ 3,899,867 | |||||
Production stage stream interests | |||||||
Acquisitions | |||||||
Cost | 2,446,435 | 2,419,936 | |||||
Lawyers Project [Member] | |||||||
Acquisitions | |||||||
Net smelter return (NSR) (as a percent) | 0.50% | ||||||
Acquisition consideration paid | $ 8,000 | ||||||
Lawyers Project [Member] | Exploration stage royalty interest | |||||||
Acquisitions | |||||||
Cost | $ 8,000 | ||||||
Ranch Project [Member] | |||||||
Acquisitions | |||||||
Royalty that can be acquired (as a percent) | 2.00% | ||||||
Khoemacau | |||||||
Acquisitions | |||||||
Acquisition consideration paid | $ 16,500 | $ 10,000 | |||||
Variable loan receivable | 25,000 | ||||||
Interest receivable | 2,600 | ||||||
Silver production acquired (as a percent) | 100.00% | 93.00% | 90.00% | ||||
Khoemacau | Production stage stream interests | |||||||
Acquisitions | |||||||
Cost | $ 265,000 | $ 265,911 | $ 239,411 |
STREAM AND ROYALTY INTERESTS,_3
STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 14, 2022 | Dec. 31, 2021 |
Cost | $ 3,937,667 | $ 3,899,867 | |
Accumulated Depletion | (1,503,978) | (1,456,115) | |
Net | 2,433,689 | 2,443,752 | |
Production stage royalty and stream interests | |||
Cost | 3,395,213 | 3,369,499 | |
Accumulated Depletion | (1,503,978) | (1,456,115) | |
Net | 1,891,235 | 1,913,384 | |
Production stage stream interests | |||
Cost | 2,446,435 | 2,419,936 | |
Accumulated Depletion | (915,280) | (878,902) | |
Net | 1,531,155 | 1,541,034 | |
Production stage stream interests | Mt. Milligan | |||
Cost | 790,635 | 790,635 | |
Accumulated Depletion | (352,165) | (336,921) | |
Net | 438,470 | 453,714 | |
Production stage stream interests | Pueblo Viejo | |||
Cost | 610,405 | 610,405 | |
Accumulated Depletion | (267,872) | (260,321) | |
Net | 342,533 | 350,084 | |
Production stage stream interests | Andacollo | |||
Cost | 388,182 | 388,182 | |
Accumulated Depletion | (143,144) | (139,035) | |
Net | 245,038 | 249,147 | |
Production stage stream interests | Khoemacau | |||
Cost | 265,911 | $ 265,000 | 239,411 |
Accumulated Depletion | (4,963) | (3,402) | |
Net | 260,948 | 236,009 | |
Production stage stream interests | Rainy River | |||
Cost | 175,727 | 175,727 | |
Accumulated Depletion | (53,285) | (50,115) | |
Net | 122,442 | 125,612 | |
Production stage stream interests | Wassa | |||
Cost | 146,475 | 146,475 | |
Accumulated Depletion | (87,597) | (84,915) | |
Net | 58,878 | 61,560 | |
Production stage stream interests | Other Mines | |||
Cost | 69,100 | 69,101 | |
Accumulated Depletion | (6,254) | (4,193) | |
Net | 62,846 | 64,908 | |
Production stage royalty interest | |||
Cost | 948,778 | 949,563 | |
Accumulated Depletion | (588,698) | (577,213) | |
Net | 360,080 | 372,350 | |
Production stage royalty interest | Voiseys Bay | |||
Cost | 205,724 | 205,724 | |
Accumulated Depletion | (115,738) | (113,602) | |
Net | 89,986 | 92,122 | |
Production stage royalty interest | Red Chris | |||
Cost | 116,187 | 116,187 | |
Accumulated Depletion | (1,797) | ||
Net | 114,390 | 116,187 | |
Production stage royalty interest | Penasquito | |||
Cost | 99,172 | 99,172 | |
Accumulated Depletion | (54,243) | (53,022) | |
Net | 44,929 | 46,150 | |
Production stage royalty interest | Cortez | |||
Cost | 80,681 | 80,681 | |
Accumulated Depletion | (26,693) | (23,225) | |
Net | 53,988 | 57,456 | |
Production stage royalty interest | Other Mines | |||
Cost | 447,014 | 447,799 | |
Accumulated Depletion | (390,227) | (387,364) | |
Net | 56,787 | 60,435 | |
Development stage royalty and stream interest | |||
Cost | 120,256 | 112,213 | |
Net | 120,256 | 112,213 | |
Development stage stream interest | Other Mines | |||
Cost | 12,038 | 12,037 | |
Net | 12,038 | 12,037 | |
Development stage royalty interest | Cote | |||
Cost | 45,421 | 45,421 | |
Net | 45,421 | 45,421 | |
Development stage royalty interest | Other Mines | |||
Cost | 62,797 | 54,755 | |
Net | 62,797 | 54,755 | |
Exploration stage stream and royalty interests | |||
Cost | 422,198 | 418,155 | |
Net | 422,198 | 418,155 | |
Exploration stage stream interests | NX Gold | |||
Cost | 34,213 | 30,974 | |
Net | 34,213 | 30,974 | |
Exploration stage royalty interest | Red Chris | |||
Cost | 48,895 | 48,895 | |
Net | 48,895 | 48,895 | |
Exploration stage royalty interest | Cote | |||
Cost | 29,610 | 29,610 | |
Net | 29,610 | 29,610 | |
Exploration stage royalty interest | Pascua Lama | |||
Cost | 177,690 | 177,690 | |
Net | 177,690 | 177,690 | |
Exploration stage royalty interest | Other Mines | |||
Cost | 131,790 | 130,986 | |
Net | $ 131,790 | $ 130,986 |
MARKETABLE EQUITY SECURITIES (D
MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Marketable Securities | |||
Increase (decrease) in fair value of equity securities | $ 0.6 | $ 1.9 | |
Investment value | $ 2.3 | $ 1.7 | |
TriStar | |||
Marketable Securities | |||
Stock that can be purchased by warrants (in shares) | 19,640,000 |
DEBT (Details)
DEBT (Details) - Credit Facility - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Long-term debt disclosure | ||
Outstanding amount under credit facility | $ 0 | |
Interest expense recognized | $ 0.2 | $ 0.8 |
REVENUE (Details)
REVENUE (Details) - 3 months ended Mar. 31, 2022 | Total | item | segment |
Number of reportable segments | 2 | 2 | |
Minimum | |||
Average sale price determination period | 10 days | ||
Maximum | |||
Average sale price determination period | 3 months |
REVENUE - Metal Disaggregation
REVENUE - Metal Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Revenue | $ 162,355 | $ 142,589 |
Stream interests | ||
Disaggregation of Revenue | ||
Revenue | 105,251 | 95,346 |
Stream interests | Gold | ||
Disaggregation of Revenue | ||
Revenue | 77,502 | 65,511 |
Stream interests | Silver | ||
Disaggregation of Revenue | ||
Revenue | 11,439 | 12,805 |
Stream interests | Copper | ||
Disaggregation of Revenue | ||
Revenue | 16,310 | 17,030 |
Royalty interests | ||
Disaggregation of Revenue | ||
Revenue | 57,104 | 47,243 |
Royalty interests | Gold | ||
Disaggregation of Revenue | ||
Revenue | 37,917 | 31,245 |
Royalty interests | Silver | ||
Disaggregation of Revenue | ||
Revenue | 4,317 | 4,208 |
Royalty interests | Copper | ||
Disaggregation of Revenue | ||
Revenue | 6,705 | 4,015 |
Royalty interests | Other | ||
Disaggregation of Revenue | ||
Revenue | $ 8,165 | $ 7,775 |
REVENUE - Property Disaggregati
REVENUE - Property Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Revenue | $ 162,355 | $ 142,589 |
Stream interests | ||
Disaggregation of Revenue | ||
Revenue | 105,251 | 95,346 |
Stream interests | Mt. Milligan | ||
Disaggregation of Revenue | ||
Revenue | 42,416 | 33,803 |
Stream interests | Pueblo Viejo | ||
Disaggregation of Revenue | ||
Revenue | 23,264 | 30,173 |
Stream interests | Andacollo | ||
Disaggregation of Revenue | ||
Revenue | 15,674 | 13,022 |
Stream interests | Wassa | ||
Disaggregation of Revenue | ||
Revenue | 7,202 | 8,774 |
Stream interests | Khoemacau | ||
Disaggregation of Revenue | ||
Revenue | 2,389 | |
Stream interests | Other Mines | ||
Disaggregation of Revenue | ||
Revenue | 14,306 | 9,574 |
Royalty interests | ||
Disaggregation of Revenue | ||
Revenue | 57,104 | 47,243 |
Royalty interests | Cortez | ||
Disaggregation of Revenue | ||
Revenue | 16,714 | 8,609 |
Royalty interests | Penasquito | ||
Disaggregation of Revenue | ||
Revenue | 13,094 | 13,128 |
Royalty interests | Other Mines | ||
Disaggregation of Revenue | ||
Revenue | $ 27,296 | $ 25,506 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock-based compensation | ||
Stock-based compensation expense | $ 2,124 | $ 1,344 |
Other than options granted (in shares) | 67,600 | |
Restricted stock | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 1,155 | 533 |
Other than options granted (in shares) | 28,220 | |
Unrecognized compensation expense | $ 9,377 | |
Weighted-average recognition period | 2 years 7 months 6 days | |
Performance stock | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 631 | 364 |
Other than options granted (in shares) | 39,380 | |
Earn out basis if all goals are met (as a percent) | 200.00% | |
Unrecognized compensation expense | $ 6,760 | |
Weighted-average recognition period | 2 years 6 months | |
Stock appreciation rights | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 332 | 430 |
Unrecognized compensation expense | $ 1,296 | |
Weighted-average recognition period | 1 year 2 months 12 days | |
Stock options | ||
Stock-based compensation | ||
Stock-based compensation expense | $ 6 | $ 17 |
Unrecognized compensation expense | $ 43 | |
Weighted-average recognition period | 1 year 3 months 18 days |
EARNINGS PER SHARE ("EPS") (Det
EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
EARNINGS PER SHARE ("EPS") | ||
Net income attributable to Royal Gold common stockholders | $ 65,675 | $ 54,026 |
Weighted-average shares for basic EPS | 65,565,735 | 65,550,400 |
Effect of other dilutive securities | 78,933 | 71,203 |
Weighted-average shares for diluted EPS | 65,644,668 | 65,621,603 |
Basic EPS | $ 1 | $ 0.82 |
Diluted EPS | $ 1 | $ 0.82 |
INCOME TAXES - Quarterly (Detai
INCOME TAXES - Quarterly (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | ||
Income tax expense | $ 15,304 | $ 17,679 |
Effective tax rate (as a percent) | 18.80% | 24.60% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2022USD ($)item | Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Number of reportable segments | 2 | 2 | |||
Stream and royalty interest | $ 2,433,689 | $ 2,433,689 | $ 2,433,689 | $ 2,443,752 | |
Revenue | 162,355 | $ 142,589 | |||
Cost of sales | 22,639 | 21,469 | |||
Production taxes | 2,221 | 1,835 | |||
Depletion | 47,863 | 41,202 | |||
Total segment gross profit | 89,632 | 78,083 | |||
Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 976,816 | 976,816 | 976,816 | 991,745 | |
Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 469,154 | 469,154 | 469,154 | 473,263 | |
Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 342,532 | 342,532 | 342,532 | 350,083 | |
Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 320,148 | 320,148 | 320,148 | 297,890 | |
United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 103,855 | 103,855 | 103,855 | 107,761 | |
Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 58,276 | 58,276 | 58,276 | 60,977 | |
Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 27,193 | 27,193 | 27,193 | 27,496 | |
Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 135,715 | 135,715 | 135,715 | 134,537 | |
Stream interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 1,577,406 | 1,577,406 | 1,577,406 | 1,584,045 | |
Revenue | 105,251 | 95,346 | |||
Cost of sales | 22,639 | 21,469 | |||
Depletion | 36,378 | 32,595 | |||
Total segment gross profit | 46,234 | 41,282 | |||
Stream interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 560,911 | 560,911 | 560,911 | 579,326 | |
Revenue | 51,485 | 42,609 | |||
Stream interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 245,038 | 245,038 | 245,038 | 249,147 | |
Revenue | 15,674 | 13,022 | |||
Stream interests | Dominican Republic | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 342,532 | 342,532 | 342,532 | 350,083 | |
Revenue | 23,264 | 30,173 | |||
Stream interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 319,827 | 319,827 | 319,827 | 297,569 | |
Revenue | 8,446 | 9,542 | |||
Stream interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 109,098 | 109,098 | 109,098 | 107,920 | |
Revenue | 6,382 | ||||
Royalty interests | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 856,283 | 856,283 | 856,283 | 859,707 | |
Revenue | 57,104 | 47,243 | |||
Production taxes | 2,221 | 1,835 | |||
Depletion | 11,485 | 8,607 | |||
Total segment gross profit | 43,398 | 36,801 | |||
Royalty interests | Canada | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 415,905 | 415,905 | 415,905 | 412,419 | |
Revenue | 10,778 | 8,612 | |||
Royalty interests | Chile | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 224,116 | 224,116 | 224,116 | 224,116 | |
Royalty interests | Africa | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 321 | 321 | 321 | 321 | |
Revenue | 316 | 748 | |||
Royalty interests | United States | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 103,855 | 103,855 | 103,855 | 107,761 | |
Revenue | 24,358 | 16,474 | |||
Royalty interests | Mexico | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 58,276 | 58,276 | 58,276 | 60,977 | |
Revenue | 15,881 | 15,270 | |||
Royalty interests | Australia | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 27,193 | 27,193 | 27,193 | 27,496 | |
Revenue | 4,046 | 4,360 | |||
Royalty interests | Rest of world | |||||
Long Lived Assets and Pre-Tax Income by Geographical Information | |||||
Stream and royalty interest | 26,617 | $ 26,617 | $ 26,617 | $ 26,617 | |
Revenue | $ 1,725 | $ 1,779 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
SEGMENT INFORMATION | ||
Total segment gross profit | $ 89,632 | $ 78,083 |
Costs and expenses | ||
General and administrative expenses | 8,931 | 6,932 |
Depreciation and amortization | 125 | 94 |
Operating income | 80,576 | 71,057 |
Fair value changes in equity securities | 613 | 1,902 |
Interest and other income | 975 | 733 |
Interest and other expense | (898) | (1,820) |
Income before income taxes | $ 81,266 | $ 71,872 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] $ in Thousands | Mar. 31, 2022USD ($) |
Reported Value Measurement [Member] | |
Assets: | |
Marketable equity securities | $ 2,346 |
Estimate of Fair Value Measurement [Member] | |
Assets: | |
Marketable equity securities | 2,346 |
Level 2 | |
Assets: | |
Marketable equity securities | $ 2,346 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 22, 2022 | Mar. 14, 2022 | Feb. 23, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Commitments and Contingencies | |||||
Payment to acquire interest | $ 37,800 | $ 33,656 | |||
Ilovica | |||||
Commitments and Contingencies | |||||
Conditional funding from acquisition | 163,750 | ||||
NX Gold | |||||
Commitments and Contingencies | |||||
Payment to acquire interest | $ 3,200 | ||||
Future commitment | $ 6,800 | ||||
Khoemacau | |||||
Commitments and Contingencies | |||||
Payment to acquire interest | $ 16,500 | $ 10,000 |