Royal Gold, Inc. (RGLD) exceeded analysts’ expectations in the second quarter of 2024, reporting adjusted earnings per share of $1.25, surpassing the Zacks Consensus Estimate of $1.17. This represents a 42% year-over-year increase in earnings.
The company’s revenue also saw significant growth, reaching $174 million, a 20.8% increase compared to the same period last year. This growth was primarily driven by higher metal prices and increased copper sales at Mount Milligan. The positive performance was also bolstered by increased gold and silver production at Peñasquito, though these gains were partially offset by lower gold and silver sales at Pueblo Viejo.
Stream revenues for the quarter reached $123 million, a 15.9% increase year-over-year, while royalty revenues grew by 34.5% to $51 million. Despite the strong performance, the company’s cost of sales increased slightly to $24 million from $23 million in the previous year. General and administrative expenses also rose by 16% to $10.5 million.
The company’s adjusted EBITDA for the quarter was $141 million, a 23.1% increase compared to the previous year. The adjusted EBITDA margin remained strong at 81%, only slightly higher than the previous year’s 80%.
Royal Gold’s financial position remains strong, with net cash from operating activities reaching $113.5 million in the second quarter compared to $108 million in the previous year. The company ended the quarter with cash and cash equivalents of approximately $74 million, a slight decrease from the $104 million recorded at the end of 2023.
Despite a challenging market environment, Royal Gold’s strong performance demonstrates the company’s ability to navigate fluctuations in metal prices and maintain a steady growth trajectory. This positive outlook positions the company well for continued success in the future.
