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Royal Gold's Q3: Struggling To Get To The Pre-Crisis Levels

May 06, 2021 4:19 AM ETRoyal Gold, Inc. (RGLD)7 Comments


  • Royal Gold's gold equivalent sales equaled 79,500 toz in Q3.
  • The revenues, operating cash flow and net income declined.
  • The net debt declined too, moreover, after the end of Q3, Royal Gold eliminated its remaining debt.
  • First silver deliveries from the Khoemacau mine should start soon.
  • Franco-Nevada and Wheaton Precious Metals made some big deals lately, it's Royal Gold's turn now.
stack of shiny gold bars 3d illustration
Photo by monsitj/iStock via Getty Images

Royal Gold (NASDAQ:RGLD) is the first of the precious metals royalty & streaming big three that reported the Q1 2021 (Royal Gold's financial Q3 2021) financial results. Compared to the previous quarter, the gold equivalent sales, as well as revenues, operating cash flow, and net

This article was written by

Peter Arendas profile picture

I am an associate professor at the University of Economics in Bratislava, Department of Banking and International Finance. My dissertation was focused on commodity markets and my habilitation was focused on the calendar anomalies. I have more than 15 years of investing experience. My investments mostly focus on small- and mid-cap companies in the resource sector. Since May 2019, I have been preparing regular monthly reports focused on the precious metals royalty & streaming industry. Based on positive feedbacks and numerous inquiries, I decided to launch a Marketplace Service named "Royalty & Streaming Corner", which provides an in-depth analysis of this exciting market segment, as well as investment ideas from the mining industry.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (7)

Yeah I wouldn’t be surprised if a cash balance and capital allocation became a quarterly analyst question
Asymmetric Upside profile picture
The chart looks bullish!
Is there too much competition in the Royalty and Streaming company space?
Chris Guenther profile picture
@TagHoyer I think so. It was a really uncrowded space when it was just Wheaton, Royal Gold and Franco Nevada pretty much. Now lots of companies are competing for royalties which makes the newer deals far less accretive to the royalty companies than they used to be. Its better for the miners who sell the royalties for capital, but not for the royalty cos.
Peter Arendas profile picture
@Chris Guenther Yes, the industry is much more crowded. However, the majority of companies are small. There are only 5 or 6 players that are able to make really big deals (valued at several hundred million $).
@Chris Guenther Maybe the advantage of not having employees,mines,, government regulations, is being arbitraged away; When FNV first came on the scene, they discovered that buying royalties and streaming is (much) more profitable than doing the work. As others get in the game, the advantage is less and less; When their is an ETF that only has Royalty and Streaming companies, we will know that the advantage has been totally arbitraged away. GOAU of course purports to weigh royalty and streaming companies more heavily, so that may be a sign of what I am talking about.
Sometimes NOT making a deal is the best decision.
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