Royal Gold(RGLD)2025-02-13 20:23Financial Data and Key Metrics Changes - For the full year 2024, revenue reached 530 million, and net income was 346 million or 1.2 billion in available liquidity [11][49] Business Line Data and Key Metrics Changes - Gold contributed approximately 76% of total revenue, with almost 60% generated from the US, Canada, and Australia [9] - Royalty revenue increased by about 43% year-over-year to 125 million, up by about 27% [24][41] - Silver sales were slightly lower than guidance due to lower deliveries from Pointe Lo Viejo, while gold sales exceeded expectations due to strong performance from Penasquito and Cortez royalties [13][14] Market Data and Key Metrics Changes - The company noted that gold prices remained a significant driver of revenue, with gold and silver prices up 35% and copper up 13% year-over-year [41] - The company has a strong position in the royalty and streaming sector, with the highest gold revenue percentage compared to peers [41] Company Strategy and Development Direction - The company plans to continue focusing on high-quality assets with upside potential, while remaining open to opportunistic investments in non-precious metals [16][52] - The acquisition of the Cactus Royalty is seen as an opportunistic purchase rather than a strategic shift away from precious metals [16] - The company aims to leverage its strong balance sheet and cash flow to compete for growth opportunities [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the uncertain global geopolitical and macroeconomic outlook, which may bias risk in gold prices to the upside [51] - The company anticipates providing full-year 2025 guidance in mid to late March, with expectations that guidance ranges will be similar to 2024 [51][47] Other Important Information - The company paid over 1.80 per share for 2025, marking the 24th consecutive annual dividend increase [10] - New revenue sources were noted from MarRosa, Manchow, and Cote gold mines, which each poured first gold during 2024 [11] Q&A Session Summary Question: Insights on Cortez and its growth potential - Management acknowledged the complexity of the Cortez royalty structure and indicated that they would provide more clarity in the upcoming guidance [55][56] Question: Impact of the Pueblo Viejo shutdown on deliveries - Management explained that the timing of the shutdown would affect deliveries and sales, with a lag of three to five months between production and sales [62][64] Question: Comments on the Cactus acquisition and revenue mix - Management expressed satisfaction with the current revenue mix, emphasizing a focus on precious metals while remaining open to other opportunities [73][75] Question: Capital allocation and deal pipeline - Management indicated that while there may be more capital than immediate opportunities, they remain open to transactions in the 300 million range and are cautious about future deal forecasts [134][135]