By The Gold Report

Source: Streetwise Reports   02/09/2019

A BMO Capital Markets report reviewed the figures released by this company and explored contributing factors behind them.

In a Feb. 6 research note, analyst Andrew Kaip reported that Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX) achieved an earnings per share (EPS) beat in Q2 FY19.

Kaip relayed the company’s EPS at quarter end was $0.36, after having delivered 79,600 ounces of gold equivalent and generating $97.6 million in revenue. Of that total revenue, $67.7 million were from streams, and $29.9 million were from royalties. These figures were in line with BMO and consensus’ forecasted EPS of $0.31.

Yet Royal Gold’s EPS was a beat due to “$6 million positive true-up based on recently issued Treasury and Internal Revenue Service guidance,” Kaip explained.

Kaip noted Royal Gold’s Q2 FY19 operating cash flow was less than expected, at $58.8 million versus $65 million. That resulted from negative working capital adjustments as the company did not outlay a significant amount of capital during the quarter.

At the end of Q2 FY19, Royal Gold had $157 million in cash and cash equivalents, and full access to its $1 billion revolving credit facility.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from BMO Capital Markets, Royal Gold, Feb. 6, 2019

IMPORTANT DISCLOSURES

Analyst’s Certification
I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to New Gold within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from New Gold within the past 12 months.
Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Royal Gold and New Gold.
Disclosure 6A: New Gold is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services
Disclosure 6C: Royal Gold and New Gold are clients (or were clients) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services.
Disclosure 9B: BMO Capital Markets makes a market in Royal Gold and New Gold in United States.

For Important Disclosures on the stocks discussed in this report, please click here.

( Companies Mentioned: RGLD:NASDAQ; RGL:TSX,
)