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.
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 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.