Cara Community GSM 50: Royal Gold

Royal Gold (NYSE: RGLD) reviewed 10-07-2020

Market Cap: 7.67 Billion (USD)

Share Price: $117.00 (USD)

Shares outstanding: 65,522,569

Cash:     $319 M (USD) at 30 Jun 2020

Debt:     $300 M (USD) at 30 Jun 2020

Current operations: Yes

Insiders: Low

Institutional: 500+ institutions hold approx 84% of float


Investor Presentations:

President & CEO: William H. Heisenbuttel

Royal Gold is a US-based royalty company

Owns a large global portfolio of producing, development, and exploration streams

The company lists seven primary and a total of 34 producing streams from currently producing mines and 15 in development. An additional 100 are non-producing and are mainly exploration

Free cash flow was about $185 M (USD) for FY 2020; the Market cap is approx. 41x that

Reported record revenue of almost $500 M and net earnings of about $200M or $3.03 a share, minus adjustments which brought it down to $162.4 M or $2.47 a share

The dividend payout is currently $1.12 or 0.95%

Bottom Line:

  • The company has repaired its balance sheet but still carries $300 M in debt
  • Dividend yield below 1% seems a bit low
  • Price has come down from the 52-week high of $147 which coincided with the 5 Aug peak in the gold price
  • No position and none to come. Much prefer WPM

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