Royal Gold posts record Q3 revenue, but misses estimates

Overview

• Royal Gold missed analysts' expectations for Q3 revenue despite record figure

• Adjusted net income for Q3 missed analyst expectations

• Company completed acquisitions of Sandstorm Gold and Horizon Copper

Outlook

• Royal Gold maintains 2025 guidance for metal sales and tax rates

• Company expects to repay credit facility balance by mid-2027

• Royal Gold anticipates growth from Sandstorm and Horizon acquisitions

Result Drivers

• HIGH METAL PRICES - Royal Gold's Q3 revenue was driven by higher gold and silver prices, benefiting from record gold prices

• ACQUISITIONS - Company completed acquisitions of Sandstorm Gold and Horizon Copper, enhancing portfolio scale and diversification

• MOUNT MILLIGAN EXTENSION - Extension of Mount Milligan mine life to 2045 supports long-term growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Royal Gold Inc is $250.00, about 32.4% above its November 4 closing price of $169.08

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw1ZX6dPa

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