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Royal Gold Inc. Reports Operating Results (10-Q)

February 02, 2012 | About:
10qk

10qk

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Royal Gold Inc. (RGLD) filed Quarterly Report for the period ended 2011-12-31.

Royal Gold Inc. has a market cap of $4.24 billion; its shares were traded at around $77.34 with a P/E ratio of 51.9 and P/S ratio of 19.6. The dividend yield of Royal Gold Inc. stocks is 0.8%. Royal Gold Inc. had an annual average earning growth of 22.2% over the past 10 years. GuruFocus rated Royal Gold Inc. the business predictability rank of 5-star.

Highlight of Business Operations:

For the quarter ended December 31, 2011, we recorded net income attributable to Royal Gold stockholders of $23.4 million, or $0.42 per basic and diluted share, as compared to net income attributable to Royal Gold stockholders of $18.3 million, or $0.33 per basic and diluted share, for the quarter ended December 31, 2010. The increase in our earnings per share was primarily attributable to an increase in royalty revenue, as discussed further below. This increase was partially offset by an increase in depletion expense during the period, which is also discussed further below.

During the quarter ended December 31, 2011, we recognized income tax expense totaling $14.1 million compared with $11.4 million during the quarter ended December 31, 2010. This resulted in an effective tax rate of 36.7% in the current period, compared with 35.4% in the quarter ended December 31, 2010. The increase in the effective tax rate for the three months ended December 31, 2010 is primarily related to an increase in tax expense related to earnings from non-U.S. subsidiaries.

For the six months ended December 31, 2011, we recorded net income attributable to Royal Gold stockholders of $45.9 million, or $0.83 per basic share and $0.82 per diluted share, as compared to net income attributable to Royal Gold stockholders of $30.1 million, or $0.55 per basic and diluted share, for the six months ended December 31, 2010. The increase in our earnings per share was primarily attributable to an increase in royalty revenue, as discussed further below. This increase was partially offset by an increase in production taxes, depletion expense and the royalty restructuring charge during the period, each of which are discussed further below.

For the six months ended December 31, 2011, we recognized total royalty revenue of $133.3 million, compared to total royalty revenue of $101.7 million for the six months ended December 31, 2010. Royalty revenue and the corresponding production, attributable to our royalty interests, for the six months ended December 31, 2011 compared to the six months ended December 31, 2010 is as follows:

Production taxes increased to $5.1 million for the six month ended December 31, 2011, from $3.7 million for the six months ended December 31, 2010. The increase was primarily due to an increase in the mining proceeds tax expense associated with our Voiseys Bay royalty, which was due to increased royalty revenue from the Voiseys Bay royalty during the period.

Read the The complete Report

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