Royal Gold (RGLD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $174.1 million, up 21% year-over-year, with net income of $81.2 million ($1.23/share) and record adjusted net income of $82.6 million ($1.25/share), driven by higher gold, silver, and copper prices and strong production at key assets.

• Operating cash flow was $113.5 million, and the company returned to a net cash position after repaying $225 million in debt year-to-date.

• Acquired additional royalty interests in the Back River Gold District for $51 million, expanding the development portfolio and increasing exposure to the Goose Gold Project.

• Stream interests contributed 71–74% of Q2 revenue, with royalty interests at 26–29%.

• Total available liquidity at quarter-end was approximately $1 billion.

Financial highlights

• Adjusted EBITDA margin remained strong at 81% for Q2 2024.

• G&A expense was $10.5 million; DD&A expense was $35.7 million ($480 per GEO); interest expense was $2.5 million.

• Effective tax rate was 18.9% for Q2 2024.

• Net income margin for Q2 2024 was 47%.

• Sales volume was 74,500 gold equivalent ounces (GEOs) in Q2 2024.

Outlook and guidance

• Tracking well toward full-year guidance for sales, DD&A, and effective tax rate.

• Goose Project (Back River) first gold expected Q2 2025, ramping to full production in Q3 2025, with a 15-year mine life forecast.

• Mount Milligan 2024 guidance unchanged: 180,000–200,000 oz gold, 55–65M lb copper.

• Peñasquito production expected to be second-half weighted in 2024 due to improved grades.

• Khoemacau ramp-up to 60,000 tonnes copper by 2026, expanding to 130,000 tonnes by 2029.