Business
Royal Gold Reports Record Revenue, Net Income and Free Cash Flow in Second Quarter Of Fiscal 2007
Royal Gold Reports Record Revenue, Net Income and Free Cash Flow in Second Quarter Of Fiscal 2007.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\n* Revenue increases 62% on quarter-over-quarter basis\n\n* Net income increases 100% on per share basis\n\n* Record free cash flow (a non-GAAP financial measure) totals 84% of\nrevenue\n\n* Acquisition of royalties on Penasquito and Pascua Lama projects further\ndiversifies portfolio\n\n\nDENVER, Feb. 1 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the\nleading publicly-traded precious metals royalty company, today announced\nfiscal second quarter 2007 net income of $5.6 million, or $0.24 per basic\nshare, on royalty revenue of $12.3 million. This compares to net income for\nthe second quarter of fiscal 2006 of $2.9 million, or $0.12 per basic share,\non royalty revenue of $7.6 million. Higher revenues were largely derived from\nincreased production at several royalty properties, contributions from two new\nproducing royalty positions, and higher metal prices.\n\n\nNet income for the six-month period ended December 31, 2006, was $10.6\nmillion, or $0.45 per basic share, on royalty revenue of $22.0 million. This\ncompares to net income of $6.0 million, or $0.27 per basic share, for the\nsix-month period ended December 31, 2005, on royalty revenue of $14.4 million.\n\n\nFree cash flow for the quarter was approximately $10.3 million, making up\na record 84% of revenues. This compares to free cash flow for the second\nquarter of fiscal 2006 of approximately $5.4 million or 71% of revenues. For\nthe six-month period ended December 31, 2006, free cash flow was approximately\n$18.3 million, or 83% of revenues, compared with free cash flow for the same\nperiod ended December 31, 2005, of $10.5 million, or 73% of revenues. The\nCompany defines free cash flow, a non-GAAP financial measure, as operating\nincome plus depreciation, depletion and amortization, non-cash charges and any\nimpairment of mining assets (see, Schedule A- Reconciliation).\n\n\nAs of December 31, 2006, the Company had a working capital surplus of\n$74.4 million. Current assets were $80.1 million (including $70.9 million in\ncash) compared to current liabilities of $5.7 million resulting in a current\nratio of 14 to 1.\n\n\nIn addition, the Company expanded its royalty portfolio with the\nacquisition of a royalty on the Penasquito project in Mexico. The acquisition\nclosed in January 2007. Furthermore, in January 2007, the Company announced\nan agreement ...