DENVER - Royal Gold, Inc. (NASDAQ:RGLD), a precious metals stream and royalty company, disclosed its sales figures for the first quarter ended March 31, 2024. The company's wholly-owned subsidiary, RGLD Gold AG, sold approximately 49,500 gold equivalent ounces (GEOs), which included about 38,100 ounces of gold, 635,000 ounces of silver, and 1,100 tonnes of copper. These sales are related to the company's streaming agreements.
The average realized prices for the sold metals during the quarter were $2,054 per ounce of gold, $23.22 per ounce of silver, and $8,453 per tonne of copper ($3.83 per pound). Additionally, the cost of sales was reported at approximately $436 per GEO for the quarter. This cost is specific to Royal Gold's streaming agreements and represents the amount the company pays for the metals, which is either a set contractual price or a percentage of the metals' prevailing market prices at the time of purchase.
As of the end of the first quarter, Royal Gold had an inventory consisting of approximately 16,800 ounces of gold, 349,400 ounces of silver, and 400 tonnes of copper.
Royal Gold's portfolio includes interests on 177 properties across five continents, with 37 producing mines and 24 development-stage projects. The GEOs for the quarter were calculated by dividing Royal Gold's revenue by the average London PM gold fixing price for the quarter, which was $2,070 per ounce.
This information is based on a press release statement from Royal Gold.
InvestingPro Insights
As Royal Gold, Inc. (NASDAQ:RGLD) reports its first quarter sales and prepares to share comprehensive results, investors are closely watching the company's performance metrics. According to the latest data from InvestingPro, Royal Gold boasts a market capitalization of $8.05 billion, reflecting its significant presence in the precious metals streaming and royalty sector.
InvestingPro Tips highlight that Royal Gold has been consistent in rewarding its shareholders, having increased its dividend for eight consecutive years and maintained dividend payments for an impressive 25 years. This commitment to shareholder returns is bolstered by the company's strong gross profit margins, which stand at 84.87% for the last twelve months as of Q4 2023. Such high margins are indicative of the company's operational efficiency and its ability to manage costs effectively in relation to its revenue.
Another key financial metric for Royal Gold is its Price to Earnings (P/E) ratio. The adjusted P/E ratio as of Q4 2023 is 33.62, which suggests that the stock is trading at a high earnings multiple. This could indicate that investors have high expectations for the company's future growth and profitability. It's worth noting that analysts predict the company will be profitable this year, which may justify the current valuation.
For investors seeking more in-depth analysis and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/RGLD. These include observations on the company's liquidity, debt levels, and profitability over the last twelve months. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
With Royal Gold's next earnings date on the horizon, the company's financial health and operational performance will be under scrutiny. The InvestingPro platform lists several additional tips for those interested in a deeper dive into the company's prospects.
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