Business
Royal Gold Reports Fiscal Second Quarter 2009 Results
- Free cash flow(1) of $11.5 million, representing 79% of revenues - Net income of $21.4 million,...
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\n- Free cash flow(1) of $11.5 million, representing 79% of revenues\n\n\n\n- Net income of $21.4 million, or $0.63 per basic share, driven by gain\non Cortez royalty restructuring\n\n\n\n- Newly acquired Barrick portfolio contributes $4.0 million in royalty\nrevenue\n\n\n\nDENVER, Feb. 5 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD;\nTSX: RGL), a leading precious metals royalty company, today announced second\nquarter fiscal 2009 net income of $21.4 million, or $0.63 per basic share, on\nroyalty revenue of $14.6 million. This compares to net income for the second\nquarter of fiscal 2008 of $4.6 million, or $0.11 per basic share, on royalty\nrevenue of $14.7 million.(2) Net income for the six-month period ended\nDecember 31, 2008, was $27.1 million, or $0.80 per basic share, on royalty\nrevenue of $30.7 million. This compares to net income of $10.1 million, or\n$0.30 per basic share, for the six-month period ended December 31, 2007, on\nroyalty revenue of $27.2 million.\n\n\n\n\n\nSecond quarter and six-month net income for fiscal 2009 include the\neffects of a one-time gain of $31.5 million, or $0.60 per basic share after\ntaxes, resulting from the Company's restructuring of the royalties at the\nCortez Pipeline Mining Complex ("Cortez") on October 1, 2008, and a decrease\nin revenue of $3.3 million, or $0.06 per basic share after taxes, due to\nprovisional pricing adjustments on the Robinson mine royalty resulting from\nthe significant decrease in copper prices during the quarter. Excluding these\nitems, the Company's net income was $3.0 million for the second fiscal\nquarter, or $0.09 cents per basic share. For the six-month period, excluding\nthese items, net income was $8.8 million, or $0.26 per basic share.\n\n\n\n\n\nRoyalty revenue for the second fiscal quarter was largely driven by\nincreased production at the Leeville and Goldstrike mines, initial production\nat Benso, and $4.0 million in revenue from the Barrick royalty portfolio which\nwas acquired in October 2008. This was offset by a significant decline in\nroyalty revenue at the Cortez and Robinson mines.\n\n\n\n\n\nFree cash flow for the current quarter was $11.5 million, representing\n79% of revenues. This compares to free cash flow for the second quarter of\nfiscal 2008 of approximately $10.6 million, or 72% of revenues. Free cash\nf...