In an Oct. 8 research note, BMO Capital Markets analyst Andrew Kaip reported that Royal Gold Inc.’s (RGLD:NASDAQ; RGL:TSX) Q1 FY20 revenue was higher than anticipated and costs, lower. Accordingly, “we expect positive revisions to Q1 FY20 earnings and cash flow,” he added.
Kaip highlighted the U.S. firm’s sales during the quarter, which amounted to about 60,000 ounces (60 Koz) of gold equivalent. The total was 13% higher than BMO’s estimate despite expectations for lower streaming sales resulting from production limitations at Mt. Milligan during calendar Q1/19.
The total gold equivalent ounces sold with respect to Royal Gold’s streaming agreements constituted 50 Koz gold, 510 Koz silver and 1,100 tons of copper.
Of the three metals, only gold sales were higher, thus primarily accounting for the beat. The reason for that was a drawdown and sellout of gold inventory, leaving the company with 18 Koz of the precious metal currently in inventory.
Royal Gold intends to release its Q1 FY20 results on Nov. 6, 2019, after the market closes and hold a conference call the following day at noon EST.
BMO has a Market Perform rating on Royal Gold. It is currently trading at around $129.88 per share.
Royal Gold’s Q1 FY20 Sales Top Expectations
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