Streaming and Royalty Agency Posts Q2 FY19 Earnings Beat ‘Due to the IRS’

A report from BMO Capital Markets reviewed the corporate's figures and explored the elements that motivated them.

In a analysis notice from Feb. 6, analyst Andrew Kaip introduced that Royal Gold Inc. (RGLD: NASDAQ; RGL: TSX) had surged its earnings per share within the second quarter of fiscal 19.

Kaip introduced that the corporate's EPS on the finish of the quarter was $ zero.36, after delivering 79,600 ounces of gold equal and producing $ 97.6 million in income. Of this complete, $ 67.7 million got here from flows and $ 29.9 million from royalties. These figures have been consistent with EPS and consensus EPS of $ zero.31.

Nonetheless, Royal Gold's earnings per share have been crushed as a result of "US $ 6 million of right changes primarily based on not too long ago printed Treasury and Inside Income Service indications," defined Kaip.

Kaip famous that Royal Gold's second quarter 2007 working money circulate was decrease than anticipated, at $ 58.eight million in contrast with $ 65 million. This resulted from unfavourable working capital changes as the corporate didn’t spend a number of capital throughout the quarter.

On the finish of the second quarter of fiscal yr 19, Royal Gold had $ 157 million in money and money equivalents and full entry to its $ 1 billion revolving credit score facility.


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BMO Capital Markets Disclosures, Royal Gold, February 6, 2019


Certification of the analyst
Andrew Kaip hereby certifies that the opinions expressed on this report precisely mirror my private views on the securities or issuers in query. I additionally certify that no a part of my compensation has been or shall be, straight or not directly, associated to the particular suggestions or factors of view expressed on this report.

The analysts who ready this report are compensated primarily based (amongst different elements) on the general profitability of BMO Capital Markets and their associates, which incorporates the general profitability of funding banking. The compensation of the analysis depends on the effectivity of producing new concepts and speaking concepts to prospects, executing suggestions, the accuracy of income estimates and repair rendered to prospects.

Analysts employed by BMO Nesbitt Burns Inc. and / or BMO Capital Markets Restricted will not be registered as analysis analysts with FINRA. These analysts can’t be individuals related to BMO Capital Markets Corp. and due to this fact can’t be topic to the restrictions imposed by FINRA Rule 2241 concerning communications with a goal firm, public appearances and buying and selling securities held by a analysis analyst account.

Disclosures by Firm
Info 2: BMO Capital Markets has offered funding banking companies associated to New Gold within the final 12 months.
Disclosure four: BMO Capital Markets or a member of its group obtained from New Gold a price for its funding banking companies within the final 12 months.
Disclosure 5: BMO Capital Markets or a member of its group obtained compensation for services or products aside from funding banking companies within the final 12 months of Royal Gold and New Gold.
Disclosure 6A: New Gold is a buyer (or a buyer) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Restricted or a member of its affiliate within the final 12 months: A) Funding Banking Companies
Disclosure 6C: Royal Gold and New Gold are prospects (or have been prospects) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Restricted or a member of their group throughout the 12 previous months: C) Non-Securities Companies.
Disclosure 9B: BMO Capital Markets creates a marketplace for Royal Gold and New Gold in the USA.

For necessary info on the titles mentioned on this report, please click on right here.

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