Press release
Royal Gold Provides 2023 Guidance for GEO Sales, DD&A and Effective Tax Rate
DENVER--(BUSINESS WIRE)-- Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today its
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 its guidance for expected total stream and royalty sales volume; depletion, depreciation and amortization expense (“DD&A”); and effective tax rate for calendar year 2023.\n\n\nRoyal Gold expects 2023 gold equivalent ounce1 (“GEO”) sales, DD&A expense and effective tax rate to be as follows:\n\n\n\n\n \n\n\n\n\n\n\nJanuary 1 – December 31, 2023\n\n\n\n\n\n\n\n\nTotal GEO Sales\n\n\n\n\n\n\n320,000 – 345,000 GEO\n\n\n\n\n\n\n\n\nGold\n\n\n\n\n\n\n235,000 – 250,000 oz\n\n\n\n\n\n\n\n\nOther Metals\n\n\n\n\n\n\n85,000 – 95,000 GEO\n\n\n\n\n\n\n\n\nDD&A\n\n\n\n\n\n\n$490 – 540 / GEO\n\n\n\n\n\n\n\n\nEffective Tax Rate\n\n\n\n\n\n\n17 – 22%\n\n\n\n\n\n\n\nThe 2023 GEO sales guidance is based on publicly available production forecasts and certain confidential information and production forecasts provided to Royal Gold from certain operating counterparties. These third-party forecasts have been adjusted by Royal Gold where appropriate based on management’s experience. Additionally, this guidance is based on the following key assumptions, among others:\n\n\n\nThe following commodity prices for 2023 projections: $1,825/oz gold, $22.50/oz silver, $3.80/lb copper, $11.50/lb nickel, $0.90/lb lead, and $1.30/lb zinc;\n\n\n\nWith respect to our Principal Properties2:\n\n\nGold production at the Cortez mine from the Legacy Royalty area (gross royalty rate of approximately 9.4%) of 450,000 to 480,000 ounces with a midpoint of approximately 465,000 ounces, and estimated production from the Cortez Complex Zone (“CC Zone”) (gross royalty rate of approximately 1.6%) of approximately 535,000 ounces3;\n\n\n\nThe first full year of production at the target throughput rate of 10,000 tonnes per day at the Khoemacau mine;\n\n\n\nLower production in the first half of 2023 at the Mount Milligan mine compared to the second half, which is expected to impact sales in the second half of 2023 due to the normal-course lag in timing between concentrate shipments and stream deliveries;\n\n\n\nThe continued mining of lower grade ore from the Andacollo mine through 2023 as anticipated in the mine plan, as well as the remaining impact of extreme weather and unplanned maintenance in the third quarter of 2022, which i...