Royal Gold Releases 2024 Sales Guidance

Royal Gold, Inc. (NASDAQ: RGLD) has released its guidance for the calendar year 2024, providing insights into its sales volume, depletion, depreciation and amortization expense (DD&A), and effective tax rate. The company expects total sales of 215,000 to 230,000 ounces of gold, 3.2 to 3.8 million ounces of silver, 14.0 to 16.0 million pounds of copper, and other metals totaling $17.0 to $20.0 million. The depletion, depreciation, and amortization expense is projected to range from $141 million to $157 million, with an effective tax rate of 17% to 22%.

In terms of revenue, gold, silver, and copper are anticipated to be the primary contributors, while sales from other metals are expected to be relatively minor. Royal Gold's sales guidance translates to approximately 290,000 to 315,000 gold equivalent ounces (GEOs) using specific metal prices. Notably, the company is aiming to enhance transparency and avoid the impact of volatile commodity prices in the conversion of revenue to gold equivalent ounces.

Moreover, the guidance is based on a review of confidential information and production forecasts provided to Royal Gold from certain operating counterparties, and publicly available production forecasts for interests where the company does not have rights to receive confidential information. The company's guidance is also contingent on key assumptions related to its principal properties, including factors such as production lag, plant recovery optimization, resource model changes, and water restrictions.

Additionally, Royal Gold has provided an update on the repayment of outstanding borrowings, having completed two recent repayments totaling $125 million on the company’s revolving credit facility. This includes a $100 million repayment from operating cash flow and a $25 million repayment from the proceeds of the repayment by MMG Limited to Royal Gold. As of April 17, 2024, the amount outstanding on the $1 billion revolving credit facility is $125 million at an all-in borrowing rate of 6.5%.

Royal Gold, Inc. is a precious metals stream and royalty company with interests in 177 properties on five continents, including interests in 37 producing mines and 24 development stage projects.

For more detailed information, please refer to the company's press release. Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $122.44. For the full picture, make sure to review Royal Gold's 8-K report.

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