Royal Gold, Inc. (NASDAQ:RGLD) Q4 2019 Earnings Conference Call Transcript

Aug 08, 2019 • 12:00 pm ET

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Royal Gold, Inc. (NASDAQ:RGLD) Q4 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

[Operator Instructions] Today's first question comes from Tanya Jakusconek of Scotiabank. Please go ahead.

Analyst
Tanya Jakusconek

Good morning, everybody. Just wanted to ask some guidance questions if I could for the new fiscal year maybe just on taxes and depreciation levels.

Executive
William H. Heissenbuttel

Yes, Tanya. We're going to do that probably after our first fiscal quarter. I just like to give our team a chance to see how the early part of the year develops. So we'll deal with that on the next quarterly call.

Analyst
Tanya Jakusconek

Okay. And maybe then Tony, on to you for just the M&A, what you're seeing out there with the movement in the gold price. Do you see gold opportunities at this point?

Executive
Tony A. Jensen

Yes, Tanya, first of all, let's -- I'd like to have more of the team be heard from. So let me just turn to Dan Breeze who's in our Zug office and ask him to comment on what he is seeing there. He's leading that initiative for us.

Analyst
Tanya Jakusconek

Great, thank you. Thank you, Dan.

Executive
Daniel K. Breeze

Hi, Tanya. Sure. So we're seeing a pretty robust set of opportunities right now. We're looking at things that are coming into us, but also be proactive on the outgoing basis, to be a bit creative and look for those opportunities as well. And I'd say, despite the gold price move, there've not been very many -- certainly not very large equity raises to date. So that means that Royal Gold is a pretty healthy basket of early stage opportunities for us to review as well. So we feel very good about the environment right now. We're very busy.

Analyst
Tanya Jakusconek

And in terms of the opportunities that you're seeing, is it more on the financing side? Is it in that $200 million to $300 million range that we previously talked about?

Executive
Daniel K. Breeze

Yes. We're seeing those opportunities still, Tanya, but also -- and again, I think it goes back to the smaller opportunities that are still there for us. The equity has not really come through yet. And we're also seeing earlier stage opportunities. So, it's a pretty wide range across the spectrum that we're looking at right now, up to that $200 million to $300 million level.

Analyst
Tanya Jakusconek

Okay. Great. Thank you so much.

Executive
Tony A. Jensen

Thanks, Tanya. Thanks for the questions.

Operator
Operator

And the next question today comes from Carey MacRury of Canaccord Genuity. Please go ahead.

Analyst
Carey MacRury

Hi. Good morning, guys. Two questions for me. One on Penasquito. Given that the mine just ramped up at the end of Q2, just wondering what the lag is between concentrate production there and when you receive royalty revenue. And then secondly on Cortez. With the new Nevada JV, how do you see that Cortez Crossroads pipeline ramping up over the next year or so? Do you expect that to change at all?

Executive
Tony A. Jensen

Carey, let me ask Mark to talk to Penasquito and then I'll probably jump in on some Cortez questions there.

Executive
Mark E. Isto

Yes. As far as the Penasquito question, we get receipts on shipments at the end of each quarter.