Royal Gold, Inc. (NASDAQ:RGLD) Q1 2020 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 12:00 pm ET


Royal Gold, Inc. (NASDAQ:RGLD) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Royal Gold Inc. Fiscal 2020 First Quarter Conference Call. [Operator Instructions].

I would now like to turn the conference over to Alistair Baker Director of Business Development. Please go ahead.

Alistair Baker

Thank you Kate, good morning and welcome to our discussion of Royal Gold's First Quarter 2020 Results. This event is being webcast live and you will be able to access a replay of this call on our website. Participating on the call today are Tony Jensen President and CEO; Bill Heissenbuttel CFO and Vice President Strategy; Mark Isto Vice President Operations; Dan Breeze Vice President Corporate Development of RG AG; and Bruce Kirchoff Vice President General Counsel and Secretary. This discussion falls under the safe harbor provision of the Private Securities Litigation Reform Act. A discussion of the company's current risks and uncertainties is included in the safe harbor and cautionary statement in today's press release and slide presentation and is presented in greater detail in our filings with the SEC. Tony will give you an overview of the quarter followed by Mark with an update on our operating results. Bill will then provide a financial update and Tony will wrap up the call with some closing comments. We'll then open the lines for Q&A session.

Now I will turn the call over to Tony.

Tony A. Jensen

Good morning and thank you for joining the call. I'll begin on slide four. This was another solid quarter for Royal Gold. Our revenue for the quarter was approximately $119 million a record for Royal Gold and up 3% from the previous June quarter and 19% year-on-year. Earnings for the quarter were $1.07 per share which included a $0.49 gain on tax and a $0.02 loss on mark-to-market of equity securities both of which Bill will discuss in his remarks. Operating cash flow was a solid $71 million which allowed us to pay $17 million in dividends and reduce our outstanding revolver balance by $50 million. Over the past year we have reduced our principal of our outstanding debt by $200 million. And our only remaining debt outstanding is the $170 million drawn on a revolver which we'll continue to pay down as our cash position allows.

With the undrawn revolver capacity and working capital our liquidity was approximately $1 billion at quarter end which positions us well for the opportunities we see in the market today. In addition to providing these solid operating and financial results, we also concluded our CEO succession process with the appointment of dough highs and bottle. As the new president and CEO upon my retirement on January 2 2020. The board completed a thorough review of both internal and external candidates. And it concluded that bills background experience and vision positions him best to lead the company in its next phase of growth. Phil has held roles within role gold in business development, operations and finance. So he knows the business well. You and I have worked closely together since he joined the company