Royal Gold Reports Record Revenues

DENVER, CO - Royal Gold, Inc. reported second quarter fiscal 2008 net income of $5.1 million, on record royalty revenue of $15.4 million. This compares to net income for the second quarter of fiscal 2007 of $5.6 million, on royalty revenue of approximately $12.9 million.
As of December 31, 2007, the Company had a working capital surplus of approximately $201.0 million. Current assets were $ 209.4 million (including $195.7 million in cash), compared to current liabilities of $8.4 million resulting in a current ratio of 25 to 1.
"Solid revenues from our core producing royalty properties, new contributions from the Taparko mine and continued strength in the price of gold resulted in near-record cash flow, even after several non-recurring expenses," said Tony Jensen, President and CEO. "During the quarter, we received our first revenue from royalties acquired in the Battle Mountain transaction. The closing of the AngloGold acquisition later this quarter will further enhance our pipeline of new revenue for the second half of fiscal 2008."
Higher revenues for the second quarter were largely derived from higher gold prices, increased production at the Pipeline Mining Complex and Mulatos, as well as new revenue contributions from Taparko and the royalties acquired from the Battle Mountain transaction. Production at Taparko was significantly lower than the operator's projected quarterly or calendar year estimates due to alignment issues at the mill and the continuing ramp up of production at the operation. High River, the operator of Taparko, is addressing these matters and is working toward achieving consistent mill operations.
The Company completed the merger agreement with Battle Mountain Gold Exploration Corp. in October 2007. In the transaction, Royal Gold acquired a 1.25% net smelter return ("NSR") royalty on gold production and a 2.0% NSR royalty on both gold and silver production from theDolores project in Mexico. Royal Gold also acquired eight exploration royalties and three producing royalties including: a 0.72% NSR royalty on the Williams mine in Ontario, Canada; a 3.0% NSR royalty on the Don Mario mine in Bolivia; and a 3.0% NSR royalty on the El Limon mine in Nicaragua. The total purchase price for the Battle Mountain acquisition was $65.8 million, consisting of Royal Gold common stock and cash.
The company's address is 1660 Wynkoop Street, Suite 1000, Denver, CO 80202, 303-573-1660, fax: 303-595-9385, email: [email protected].