Press release
Royal Gold Acquires Royalty on World-Class Red Chris Mine
DENVER--(BUSINESS WIRE)-- Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that
About this update from Royal Gold, Inc.
[{"type":"text","content":" DENVER--(BUSINESS WIRE)--\nRoyal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that its wholly owned subsidiary, International Royalty Corporation, has acquired a 1.0% Net Smelter Return Royalty (the “Royalty”) covering the currently known mineralization and prospective exploration areas that constitute a portion of the Red Chris Mine in British Columbia, Canada. Royal Gold paid $165 million in cash consideration for the Royalty to Glencore Canada Corporation, a wholly owned subsidiary of Glencore International AG. Red Chris is owned and operated by a joint venture (the “Red Chris JV”), which is owned 70% by Newcrest Mining Ltd. (“Newcrest”) and 30% by Imperial Metals Corporation (“Imperial Metals”), in which Newcrest is the operator.\n\n“The acquisition of this royalty adds another high-quality and long-duration asset to Royal Gold’s portfolio,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “The Red Chris Mine is a world-class copper/gold project in a mining-friendly jurisdiction operated by a leading global gold producer, and we believe this royalty has the potential to contribute significant revenue to Royal Gold for decades. We look forward to participating in the growth and development of this unique project as Newcrest advances its strategy to expand resources and develop the underground potential.”\n\nAcquisition Highlights\n\n\nImmediate and meaningful contribution: Royal Gold is entitled to royalty payments starting from January 1, 2021, and expects to receive its initial annual royalty payment within the first 90 days of calendar 2022. The 2020 actual royalty payment was approximately $3.5 million based on open pit production of 73,787 ounces of gold, 88.3 million pounds of copper, and 176,376 ounces of silver and average prices of approximately $1,771 per ounce of gold, $2.80 per pound of copper and $20.55 per ounce of silver.\n\n\nSignificant potential to increase production with the transition to underground mining: The Red Chris JV is advancing the conversion of the Red Chris Mine to an underground block cave operation within the next five to six years, which Newcrest anticipates will transform the Red Chris Mine into a Tier 1 asset1 (as defined by Newcrest). Newcrest is evaluating the mining of high-grade pods which could ...