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Royal Gold (RGLD) Issues Update on Mt. Milligan Mine - Analyst Blog

Royal Gold, Inc.RGLD announced that its fully-owned subsidiary - RGLD Gold AG -has received around 26,200 ounces of gold from the Mt. Milligan mine for the quarter ended Mar 31, 2015, as part of its purchase and sale deal with Thompson Creek Metals Company, Inc.

For the quarter, Royal Gold sold about 24,200 ounces of gold from Thompson Creek, an increase of about 70% from the sequentially prior quarter. Further, Royal Gold had about 6,800 ounces remaining in inventory as of Mar 31, 2015. The company sells a major part of the delivered gold within three weeks of receiving the metal and recognizes revenues on its streaming transactions once the metal is sold.

As of Mar 31, 2015, Royal Gold had one provisionally priced final shipment outstanding, which was the 75% balance on shipment 12. That balance of about 5,000 ounces was not received as of Mar 31, and was excluded from the inventory. Henceforth, all deliveries to Royal Gold will be based solely on final settlement timing and volumes, subject to Thompson Creek's smelter contracts, which can take 3-5 months after concentrate is produced at the mine.

Royal Gold, together with its subsidiaries, is engaged in acquiring and managing precious metals, royalties and similar interests. By partnering with capable operators, the company focuses on building and managing a diversified, cash-flowing portfolio of precious metal assets.

Royal Gold's shares rose roughly 0.7% to close at $62.32 last Friday. The stock currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the mining space include Pretium Resources Inc. PVG , Asanko Gold Inc. AKG and Newmont Mining Corp. NEM . While Pretium Resources sports a Zacks Rank #1 (Strong Buy), Asanko Gold and Newmont Mining carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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