Royal Gold Reports Record Annual Revenue

DENVER, CO - Royal Gold, Inc. reported a fiscal year 2018 net loss of $113.1 million on record revenue of $459.0 million and record operating cash flow of $328.8 million. Reported earnings included the negative impact of US tax reform legislation totaling $0.47 per share and several non-cash items (including a non-cash impairment of $239.1 million relating to the Pascua Lama project) totaling $3.03 per share. Absent these items, adjusted net income1 was $115.1 million, up 14% from the prior year.

Fiscal 2018 Highlights Compared to Fiscal 2017 were Record revenue of $459.0 million, an increase of 4%; Record operating cash flow of $328.8 million, an increase of 23%; Record volume of 354,000 GEOs2, an increase of 1%; Final $250.0 million outstanding on revolving credit facility paid off; Dividends paid of $64.1 million, an increase of 4%; and Average gold price of $1,297 per ounce, in line with the prior year.

The Company reported net income of $26.7 million on revenue of $116.2 million in its fiscal fourth quarter ended June 30, 2018. Reported earnings included further impacts of US tax reform legislation totaling $0.01 per share and a non-cash functional currency election totaling $0.01 per share. Absent these items, adjusted net income1 was $27.6 million, up 39% from the prior year quarter.

“Fiscal 2018 performance was solid, steady, and successful as evidenced by the second straight year of record revenue, cash flow and volume,” commented Tony Jensen, President and CEO. “Looking forward to fiscal 2019, we anticipate several positive catalysts, including the beginning of production at Cortez Crossroads, the early deployment of the Penasquito Pyrite Leach Project, production improvements at Rainy River, and progress at the pilot pre-oxidation plant at Pueblo Viejo, as well as a preliminary economic assessment at the Peak Gold joint venture.

As previously reported, Centerra Gold Inc. temporarily suspended mill operations at Mount Milligan on December 27, 2017 due to insufficient fresh water. Mill operations restarted on February 5, 2018 with a single ball mill, and the second ball mill restarted on March 23, 2018. For the quarter ended June 30, 2018, mill throughput averaged 47,000 tonnes per calendar day (roughly 52,000 tonnes per operating day), and the process plant operated for 30 consecutive days averaging greater than 60,000 tonnes per day.