Royal Gold Inc. (RGLD) reported third-quarter financials as expected, after it had previously reported preliminary revenues, with operating cash flow at $344 million a quarterly record, observes Adrian Day, editor of Global Analyst.
Several mines on which it holds royalties or streams did a little better than expected, driving results, including Mt. Milligan and Peñasquito. Royal maintained its guidance for gold, silver, and copper, expecting to near the top end, or above. It raised its estimate for other metals (which are only a small part of the total revenue).
Royal Gold Inc. (RGLD)
Royal also repaid the last balance on its revolver ($150 million), less than one year after taking on debt to acquire Sandstorm, leaving it with $226 million in cash and $1.4 billion available on its credit line.
Royal has strong management, growing diversification in projects, a strong growth profile, and a solid balance sheet. It is a new core holding.
Recommended Action: Buy RGLD.
