Business
Royal Gold Reports 43% Year-Over-Year Increase in Revenues for First Quarter of Fiscal 2007
Royal Gold Reports 43% Year-Over-Year Increase in Revenues for First Quarter of Fiscal 2007.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\n\n>\n\nDENVER, Nov. 2 /CNW/ -- Royal Gold, Inc. (Nasdaq: RGLD; TSX: RGL), the\nleading publicly traded precious metals royalty company, today announced\nfiscal first quarter 2007 net income of $5.0 million, or $0.21 per basic\nshare, on royalty revenue of $9.7 million. This compares to net income for\nthe first quarter of fiscal 2006 of $3.1 million, or $0.14 per basic share, on\nroyalty revenue of approximately $6.8 million. Higher revenues were largely\nderived from increased production at several royalty properties and full\nquarter revenue from Robinson. Higher gold prices also contributed to\nincreased revenue resulting in a quarter-over-quarter step-up of Royal Gold's\nsliding-scale royalty rate at the Pipeline Mining Complex to 5.0%, which was\npartially offset by a decline in production.\nFree cash flow for the quarter was approximately $7.9 million, totaling a\nrecord 81% of revenues. This compares to free cash flow for the first quarter\nof fiscal 2006 of approximately $5.2 million or 76% of revenues. The Company\ndefines free cash flow, a non-GAAP financial measure, as operating income plus\ndepreciation, depletion and amortization, non-cash charges and any impairment\nof mining assets (see, Schedule A-Reconciliation).\nAs of September 30, 2006, the Company had a working capital surplus of\napproximately $74.5 million. Current assets were $80.7 million (including\n$73.2 million in cash) compared to current liabilities of $6.2 million\nresulting in a current ratio of 13 to 1. The Company has no debt.\n\"Our strong first quarter results reflect the significant impact of last\nyear's royalty acquisitions and the continuing strength of the gold price,\"\nsaid Tony Jensen, President and CEO. \"In addition, the acquisition of the\nGold Hill royalty, which is a satellite deposit to the prolific Round Mountain\nmine in Nevada, is an example of our continued efforts to build a strong\npipeline of future royalty revenue.\"\n\n>\nAll production numbers in the following Review of Operations are provided\nto Royal Gold by the mine operators and reflect only that portion of the\noperators' production subject to the Company's royalty interests.\n\n>\nAt the Pipeline Mining Complex in Lander County, Nevada, the Company\nholds two sliding-scale gross smelter return royalties (\"GSR1\" and \"GSR2\"),\nand a fixed-rate gross sme...