Shares of Royal Gold, Inc. RGLD have dipped 5% since it reported third-quarter 2024 results on Nov. 6 on a muted guidance despite record revenues and improved earnings.
RGLD reported adjusted earnings per share (EPS) of $1.47 in third-quarter 2024, beating the Zacks Consensus Estimate of $1.34. The company had reported an EPS of 76 cents in the year-ago quarter.
Including one-time items, the company reported an EPS of $1.46 compared with the prior-year quarter’s 75 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
RGLD generated record revenues of $194 million, up 39.8% year over year. The upside was driven by higher average metal prices; gold sales from Mount Milligan; gold and silver sales from Pueblo Viejo; and gold, silver, zinc and lead production from Peñasquito. However, these factors were offset by lower gold sales from Andacollo, production from the Cortez Legacy Zone and silver sales from Khoemacau.
RGLD expects silver sales to fall slightly below the low end of the projection range due to decreased sales from Pueblo Viejo. Gold sales, which are the company's most important revenue driver, are expected to be at or below the mid-point of the company’s guidance range.
Stream revenues were $133 million and royalty revenues were $61 million in the September-end quarter. Stream revenues increased 34.4% year over year and royalty revenues rose 53.5%.
Royal Gold, Inc. Price, Consensus and EPS Surprise
Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote
The company’s cost of sales was $27 million in the third quarter compared with the prior-year quarter’s $21 million.
General and administrative expenses amounted to $10 million, up 2% year over year. The adjusted EBITDA was $156 million in the reported quarter, up 45.9% year over year. The adjusted EBITDA margin was 81% compared with the prior-year quarter’s 78%.
RGLD’s Q3 Cash Position
Net cash from operating activities was $137 million in the third quarter compared with the prior-year quarter’s $98 million. Royal Gold ended the quarter with cash and cash equivalents of around $128 million compared with $104 million at the end of 2023.
Royal Gold’s 2024 Outlook
The company expects silver sales to be below 3.2-3.8 million ounces. Total gold sales for 2024 are expected to be 215,000-230,000 ounces.
RGLD’s Price Performance
In the past year, shares of Royal Gold have gained 18.3% compared with the industry’s growth of 21.6%.
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Royal Gold’s Zacks Rank
RGLD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RGLD’s Peer Performances in Q3
Agnico Eagle Mines Limited AEM reported third-quarter 2024 adjusted earnings of $1.14 per share, up from 44 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 98 cents.
AEM generated revenues of $2.16 billion, up 31.2% year over year. The top line surpassed the Zacks Consensus Estimate of $1.83 billion.
Barrick Gold Corporation GOLD posted third-quarter 2024 adjusted earnings per share of 31 cents. The figure missed the Zacks Consensus Estimate of 33 cents.
Barrick Gold recorded total revenues of $3,368 million, up 17.7% year over year. Total gold production was 943,000 ounces in the quarter, down 9.2% year over year.
Kinross Gold Corporation’s KGC third-quarter 2024 adjusted earnings per share were 24 cents compared with 12 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 18 cents.
KGC’s revenues rose 29.9% year over year to $1,432 million, surpassing the Zacks Consensus Estimate of $1,186.7 million. The company benefited from higher average realized gold prices.
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