Q2 2024 Royal Gold Inc Earnings Call Transcript
Key Points
- Royal Gold Inc (RGLD) reported near-record revenue of $174 million for the quarter, marking a 21% increase over the same period last year.
- The company achieved a strong adjusted EBITDA margin of 81%, demonstrating the scalability of its business model.
- Royal Gold Inc (RGLD) successfully reduced its debt, ending the quarter with $50 million outstanding and returning to a net cash position.
- The acquisition of additional royalties on the Back River Gold District enhances the company's exposure to the Goose Gold Development Project, a promising asset in a stable jurisdiction.
- The company maintained its strategy of capital allocation, including dividend payments and reinvestment in business growth, without diluting shareholder equity.
- Royal Gold Inc (RGLD) faced lower revenue contributions from the Cortez legacy zone, impacting overall revenue growth.
- Silver recovery at Pueblo Viejo remains below target, with deferred deliveries affecting revenue from this asset.
- The company experienced challenges at Khoemacau due to equipment availability and high turnover of skilled labor, impacting production.
- Interest expense, although decreased, was still significant at $2.5 million, reflecting the cost of previous borrowings.
- The effective tax rate increased to 18.9% from 3.1% in the prior year, due to the absence of a discrete tax benefit that was present in the previous period.
Hello, everyone, and welcome to the Royal Gold 2024 second-quarter conference call. My name is Seb, and I'll be operator for your call today (Operator Instructions)
I will now hand the floor to Alistair Baker to begin. Please go ahead.
Thank you, operator. Good morning, and welcome to our discussion of Royal Gold's second-quarter 2024 results. This event is being webcast live, and a replay of this call will be available on our website. Speaking on the call today are Bill Heissenbuttel, President and CEO; Paul Libner, Senior Vice President and CFO; Martin Raffield, Senior Vice President of Operations; and Dan Breeze, Senior Vice President, Corporate Development of RG AG. Randy Shefman, Senior Vice President and General Counsel is also available for questions.
During today's call, we will make forward-looking statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual
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