Business
Royal Gold Announces First Quarter Fiscal 2008 Results
Royal Gold Announces First Quarter Fiscal 2008 Results.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\n- Year-over-year revenue increase of 29%\n\n- Free cash flow* (a non-GAAP financial measure) totals 79% of revenue\n\n- First quarter of revenue from Taparko royalty\n\n- Battle Mountain Gold Exploration transaction completed\n\n\nDENVER, Nov. 1 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the\nleading publicly-traded precious metals royalty company, today announced first\nquarter fiscal 2008 net income of $5.8 million, or $0.20 per basic share, on\nroyalty revenue of $12.8 million. This compares to net income for the first\nquarter of fiscal 2007 of $5.0 million, or $0.21 per basic share, on royalty\nrevenue of approximately $9.9 million. The increase in earnings of 16% was\noffset on a per share basis due to new capital issued to finance the Company's\nsubstantial growth in reserves and royalty ounces over the last year.\n\n\nHigher revenues were largely derived from increased production at several\nroyalty properties including Pipeline, Robinson, Leeville and the SJ Claims,\nand initial revenue from the Taparko mine. Higher gold prices also\ncontributed to the increase in first quarter revenue.\n\n\nFree cash flow* for the quarter was approximately $10.1 million, totaling\n79% of revenue. This compares to free cash flow for the first quarter of\nfiscal 2007 of approximately $8.0 million or 81% of revenues.\n\n\n* The Company defines free cash flow, a non-GAAP financial measure, as\n operating income plus depreciation, depletion and amortization,\n non-cash charges and impairment of mining assets, if any, less\n minority interest in income from consolidated subsidiary\n (see, Schedule A).\n\n\nAs of September 30, 2007, the Company had a working capital surplus of\napproximately $93.7 million. Current assets were $102.8 million (including\n$90.8 million in cash), compared to current liabilities of $9.1 million\nresulting in a current ratio of 11 to 1.\n\n\n"Our first quarter results reflect solid contributions from our core\nproducing royalty properties along with continued strength in the price of\ngold," said Tony Jensen, President and CEO. "During the quarter, we received\nour first revenue from the Taparko mine and look forward to increasing\nrevenues from this property as the ramp up continues. Also, we are pleased to\nhave recently completed the merger with Battle Mountain Gold Exploration. T...