Royal Gold (RGLD) Provides Updates On Operations For Q3
Zacks Investment Research | Apr 09, 2019 08:36AM ET
Royal Gold, Inc. (NASDAQ:RGLD) has provided an update on third-quarter fiscal 2019 (ended Mar 31, 2019) operations. During the quarter, RGLD Gold AG — the fully-owned subsidiary of Royal Gold — sold nearly 60,000 gold equivalent ounces consisting of around 48,000 gold ounces, 510,000 silver ounces and 1,200 tons of copper related to its streaming agreements. The company ended the reported quarter with 25,000 ounces of gold, 590,000 ounces of silver and 400 tons of copper.
Average realized prices of gold and silver were $1,303 per ounce, and $15.51 per ounce sold compared with the prior-quarter figure of $1,219 per ounce and $14.45 per ounce, respectively. Average realized copper prices were $6,051 per ton compared with $6,092 per ton recorded in the prior-year quarter.
In the fiscal third quarter, cost of sales was roughly $319 per gold equivalent ounce compared to the prior-quarter figure of $327 per gold equivalent ounce. The cost of sales is based on the quarterly average silver-gold ratio of roughly 84 to 1 and copper-gold ratio of around 0.21 ton per ounce.
Royal Gold's fiscal second-quarter 2019 sales performance was impacted by reduced sales at Mount Milligan. This was mainly caused by rail transportation issues experienced last July. The temporary shutdown of the mill processing facility in the beginning of calendar-year 2018 resulted due to lack of sufficient water sources. On Feb 27, 2019, Centerra — the operator of Mount Milligan mine — stated that it has received permit to access additional sources of groundwater and surface water. Centerra is upgrading water pumping structure to allow access to these water sources prior to the spring melt in April. Using the additional water captured during the spring melt will be enough to resume mill-processing operations at Mount Milligan to full capacity. Centerra expects following a ramp up of milling operations, mill throughput will average 55,000 tons per day through the remaining 2019.
Coming to the price performance, Royal Gold’s shares have gained around 7.4% over the past year, outperforming the Zacks Investment Research
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