- Record revenues of $20.8 million, an 11% increase over comparable
quarter DENVER, May 7 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC.
(Nasdaq: RGLD; TSX: RGL), a leading precious metals royalty
company, today announced record royalty revenue of $20.8 million
for the third quarter of fiscal 2009 and net income of $4.1
million, or $0.12 per basic share. This compares to royalty revenue
of $18.7 million for the third quarter of fiscal 2008 and net
income of $6.9 million, or $0.11 per basic share.(2) For the
nine-month period ended March 31, 2009, royalty revenue was $51.5
million and net income was $31.3 million, or $0.92 per basic share.
Nine-month net income included the effects of a one-time, pre-tax
gain of $31.5 million, or $0.60 per basic share after taxes,
resulting from the Company's restructuring of its GSR2, GSR3 and
NVR1 royalties at the Cortez Pipeline Mining Complex ("Cortez").
Excluding this one-time gain, the Company's net income for the
nine-month period was $10.8 million, or $0.32 per basic share. This
compares to royalty revenue of $45.9 million and net income of
$17.0 million, or $0.41 per basic share, for the nine-month period
ended March 31, 2008. Increased royalty revenue for the third
fiscal quarter was largely driven by stronger production at Taparko
and contributions from various properties acquired in the Barrick
transaction, partially offset by lower gold and copper prices and
decreased contributions from Cortez and Robinson. Net income
decreased for the three month period ended March 31, 2009, due to
an increase in depreciation, depletion and amortization charges of
$4.0 million which was primarily attributable to increased
production from Taparko and new production from the Penasquito,
Dolores and the Barrick royalties. Free cash flow for the current
quarter was $17.5 million, representing 84% of revenues. This
compares to free cash flow for the third quarter of fiscal 2008 of
approximately $15.5 million, or 83% of revenues. For the nine-month
period ended March 31, 2009, free cash flow was $42.3 million,
representing 82% of revenues compared to free cash flow for the
nine-month period ended March 31, 2008, of $35.9 million, or 78% of
revenues. As of March 31, 2009, the Company had a working capital
surplus of $61.7 million. Current assets were $72.3 million
(including $50.5 million in cash and equivalents), compared to
current liabilities of $10.6 million, resulting in a current ratio
of 7 to 1. Tony Jensen, President and CEO, commented, "We are
pleased with the strong quarterly performance driven by our broad
and diversified royalty portfolio which is now comprised of 27
producing properties. We continue to execute on our strategic
growth plan. Our recent agreement with Teck on the Andacollo mine
further enhances our world-class gold royalty portfolio. This
transaction maintains our focus on gold and we expect it to be a
core royalty for years to come." (1) The Company defines free cash
flow, a non-GAAP financial measure, as operating income plus
depreciation, depletion and amortization, non-cash charges and
impairment of mining assets, if any, less minority interest in
operating income from consolidated subsidiary (see Schedule A). (2)
Certain figures in this press release related to prior quarter
information have been restated. See our amended 10-K/A filed with
the SEC on November 6, 2008. PROPERTY HIGHLIGHTS Taparko Taparko
sales for the quarter were approximately 23,000 ounces of gold for
which the Company recognized $5.1 million in royalty revenue.
During the quarter, the mill availability was 68% as High River
completed maintenance focused on improving mill performance and
reducing drive train vibrations. Pursuant to the Amended and
Restated Funding Agreement dated February 22, 2006 (the "Funding
Agreement") between Royal Gold, Inc. and Somita SA ("Somita"), a
90% owned subsidiary of High River and the operator of Taparko,
Somita is in breach of certain obligations under the Funding
Agreement. As security for the Company's investment in Somita, two
of High River's subsidiaries have pledged their equity interests in
Somita and High River (West Africa) Ltd., the corporate parent of
Somita. In addition, Royal Gold obtained as collateral a pledge of
shares of certain equity investments in public companies held by
High River. Royal Gold has not agreed to forbear pursuing any of
its remedies under the Funding Agreement or other agreements with
High River and its affiliates. Cortez At the Cortez property, the
Company recognized $3.8 million in revenue on production of
approximately 64,000 ounces, compared to revenue of $5.3 million on
production of approximately 117,000 ounces for the comparable prior
year quarter. The production decrease was due mainly to lower
grades being mined during the current period. Barrick expects
production to improve in the coming quarters as higher grade
material is mined. Robinson For the quarter, the Company recognized
$1.8 million in revenue for the Robinson mine, compared to $4.4
million for the comparable prior year quarter. This decrease in
royalty revenue was due to lower copper prices, a decrease in gold
and copper sales, and negative final pricing adjustments of
approximately $210,000 during the current period. The average spot
price of copper for the quarter was $1.56 per pound as compared to
$3.52 per pound in the third quarter of fiscal 2008. Fiscal third
quarter production and revenue for the Company's principal active
royalty interests are shown in Table 1. For more detailed
information about each of our royalty properties, please refer to
the Company's most recent Annual Report on Form 10-K/A, filed with
the SEC on November 5, 2008, and our Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K, or our website located at
http://www.royalgold.com/. OTHER DEVELOPMENTS Andacollo Transaction
On April 6, 2009, the Company announced that it signed a definitive
agreement with a subsidiary of Teck Resources Limited ("Teck") to
acquire an interest in the gold production at the Andacollo mine in
Chile. The purchase price, after adjustments pursuant to the
definitive agreement, is $218 million in cash and 1,204,136 shares
of Royal Gold's Common Stock. Royal Gold will receive 75% of the
gold produced from the sulfide portion of the Andacollo deposit
until 910,000 payable ounces of gold have been sold, after which
Royal Gold will receive 50% of all future payable gold production.
Teck expects initial production from the sulfide deposit to begin
in late calendar 2009 and reach commercial production in the first
half of calendar 2010. Teck estimates the sulfide reserves to
contain proven and probable mineral reserves of approximately 393.5
million tonnes grading 0.13 grams of gold per tonne. This equates
to 1.6 million contained ounces of gold in the sulfide reserves,
which will be mined over 20 years of production. Over the first 10
years of the mine life, Teck expects production will average 53,000
ounces of gold and 76,000 tonnes of copper in concentrate annually.
Royal Gold's interest does not apply to the production of copper.
The transaction is subject to completion of concentrate marketing
for a specified percentage of production from the Andacollo mine,
the condition that material governmental approvals are not
withdrawn or challenged, satisfactory completion of certain limited
outstanding due diligence and other customary closing conditions.
Closing is scheduled prior to the end of October 2009. Equity
Offering In April 2009, Royal Gold sold 6,500,000 shares of common
stock at a price of $38.00 per share. Proceeds to the Company from
the offering, net of commission and estimated expenses, were
approximately $235 million. The proceeds from the offering will be
used primarily to pay the cash component of the Andacollo
transaction. The underwriters' over-allotment option for 975,000
additional shares of common stock is not expected to be exercised
and will expire on May 7, 2009. Battle Mountain Transaction On
October 24, 2007, Royal Gold completed the acquisition of Battle
Mountain Gold Exploration Corp. ("Battle Mountain") pursuant to an
Amended and Restated Agreement and Plan of Merger ("Merger
Agreement"). Pursuant to the Merger Agreement, consideration of
37,418 shares of Royal Gold common stock and approximately $100,000
in cash was held back from the Battle Mountain stockholders subject
to the settlement of certain Battle Mountain litigation. All of the
parties have agreed, in principal, to settle the litigation. Upon
settlement, each former Battle Mountain shareholder who made a cash
election will receive a payment of approximately $0.010897 per
share of Battle Mountain common stock, and each former Battle
Mountain shareholder who made, or was deemed to have made, a share
election will receive approximately 0.000327154 shares of Royal
Gold Common Stock for each share of Battle Mountain common stock.
About Royal Gold Royal Gold is a precious metals royalty company
engaged in the acquisition and management of precious metal royalty
interests. The Company owns royalties on 117 properties on five
continents, including royalties on 27 producing mines and 8
development stage projects. Royal Gold is publicly traded on the
NASDAQ Global Select Market under the symbol "RGLD," and on the
Toronto Stock Exchange under the symbol "RGL." The Company's
website is located at http://www.royalgold.com/. ROYALTY
DEFINITIONS The Company's producing and development royalty
portfolio contains several different types of royalties which are
defined as follows: Royalty - the right to receive a percentage or
other denomination of mineral production from a resource extraction
operation. Gross Smelter Return ("GSR") Royalty - a defined
percentage of the gross revenue from a resource extraction
operation, less, if applicable, certain contract-defined costs paid
by or charged to the operator. Net Smelter Return ("NSR") Royalty -
a defined percentage of the gross revenue from a resource
extraction operation, less a proportionate share of incidental
transportation, insurance, refining and smelting costs. Net Value
Royalty ("NVR") - a defined percentage of the gross revenue from a
resource extraction operation, less certain contract-defined
transportation costs, milling costs and taxes. Gross Proceeds
Royalty ("GPR") - a royalty in which payments are made on contained
ounces rather than recovered ounces. Note: Management's conference
call reviewing the third quarter fiscal 2009 results will be held
today at 10:00 a.m. Mountain Time (noon Eastern Time) and will
available by calling (800) 603-2779 (North America) or (973)
200-3960 (international), access #84855470. The call will be
simultaneously broadcast on the Company's web site at
http://www.royalgold.com/ under the "Presentations" section. A
replay of this web cast will be available on the Company's website
approximately two hours after the call ends. Cautionary "Safe
Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995: With the exception of historical matters, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from projections or estimates contained herein.
Such forward-looking statements include statements regarding Royal
Gold's broad and diversified royalty portfolio, the expectation of
Royal Gold's strategic growth plan, the Andacollo transaction's
focus on gold and that the Andacollo royalty will be a core royalty
for years to come, Barrick's expectation of improved production and
higher grade material at Cortez, operators' expectations on the
commencement or ramp up of production, operator's reserve or
production estimates, operator's expectations of mine life and the
expectation of when the Andacollo transaction will close. Factors
that could cause actual results to differ materially from the
projections include, among others, precious metals prices,
performance of and production at the Company's royalty properties,
decisions and activities of the operators of the Company's royalty
properties, unanticipated grade, geological, metallurgical,
processing or other problems the operators of the mining properties
may encounter, changes in project parameters as plans continue to
be refined, economic and market conditions, liquidity and
production problems at Taparko and other royalty properties, the
Company's exercise of its rights under the Taparko Funding
Agreement, buy down rights at Malartic, litigation, the closing of
the Andacollo transaction, the ability of the operator to bring the
Andacollo project into production as expected, and other subsequent
events, as well as other factors described in the Company's Annual
Report on Form 10-K and other filings with the Securities and
Exchange Commission. Most of these factors are beyond the Company's
ability to predict or control. The Company disclaims any obligation
to update any forward-looking statement made herein. Readers are
cautioned not to put undue reliance on forward-looking statements.
*Free Cash Flow: The Company discloses information on free cash
flow and free cash flow as a percentage of revenues in its
reporting. Free cash flow is a non-GAAP financial measure. The
Company defines free cash flow as operating income plus
depreciation, depletion and amortization, non-cash charges, and any
impairment of mining assets less minority interest in operating
income of consolidated subsidiary. While we believe free cash flow
is a useful measure of the Company's performance, we also want to
advise that this is not a measure recognized by generally accepted
accounting principles. See Schedule A, attached to this press
release for a GAAP reconciliation. TABLE 1 Third Quarter Fiscal
2009 Royalty Production and Revenue for Principal Royalty Interests
QUARTER ENDED MARCH 31, 2009 (Unaudited) Royalty Reported Revenue
Production PROPERTY ROYALTY OPERATOR METAL ($Millions) (1) Taparko
TB-GSR1(2) High River Gold 5.1 22,963 oz. TB-GSR2(2) Cortez GSR1
and Barrick Gold 3.8 63,956 oz. GSR2(3) GSR3(3) NVR1(3) Mulatos 1.0
- 5.0% Alamos Gold 1.9 41,871 oz. NSR(5) Robinson(6) 3.0% NSR
Quadra Gold 1.8 30,257 oz. Copper 34.5M lbs. Leeville 1.8% NSR
Newmont Gold 1.7 106,767 oz. Siguiri 0.00 - 1.875% AngloGold Gold
1.3 79,836 oz. NSR(7) Ashanti Goldstrike 0.9% NSR Barrick Gold 1.1
136,733 oz. Penasquito 2.0% NSR Goldcorp Gold 0.4 12,027 oz.
(oxide) Silver 0.6M oz. Dolores 1.25% NSR(9) Minefinders Gold 0.2
14,169 oz. 2.0% NSR Silver - Other Royalty Properties(10) - -
Various 3.5 - Total Royalty Revenue 20.8 QUARTER ENDED MARCH 31,
2008 Royalty Reported Revenue Production PROPERTY ROYALTY OPERATOR
METAL ($Millions) (1) Taparko TB-GSR1(2) High River Gold 3.1 14,224
oz. TB-GSR2(2) Cortez GSR1 and Barrick Gold 5.3(4) 116,749 oz.
GSR2(3) GSR3(3) NVR1(3) Mulatos 1.0 - 5.0% Alamos Gold 0.4 32,081
oz. NSR(5) Robinson(6) 3.0% NSR Quadra Gold 4.4 32,313 oz. Copper
38.9M lbs. Leeville 1.8% NSR Newmont Gold 1.9 113,685 oz. Siguiri
0.00 - 1.875% AngloGold Gold -(8) -(8) NSR(7) Ashanti Goldstrike
0.9% NSR Barrick Gold 1.2 145,369 oz. Penasquito 2.0% NSR Goldcorp
Gold -(8) -(8) (oxide) Silver Dolores 1.25% NSR(9) Minefinders Gold
-(8) -(8) 2.0% NSR Silver Other Royalty Properties(10) - - Various
2.4 - Total Royalty 18.7 Revenue (As Restated) Footnotes follow on
page 7. FOOTNOTES (1) Reported production relates to the amount of
metal sales that are subject to our royalty interests for the
periods ended March 31, 2009 and March 31, 2008, as reported to us
by the operators of the mines. (2) Royalty percentages: TB-GSR1 -
15.0%; TB-GSR2 - 4.3% when the average monthly gold price ranges
between $385 and $430 per ounce. Outside of this range, the royalty
rate is calculated by dividing the average monthly gold price by
100 for gold prices above $430 per ounce, or by dividing the
average monthly gold price by 90 for gold prices below $385 per
ounce (e.g., a $900 per ounce gold price results in a rate of
900/100 = 9.0%). Two subsequent royalties consist of a 2.0% GSR
perpetual royalty ("TB-GSR3"), applicable to gold production from
defined portions of the Taparko-Bouroum project area, and a 0.75%
GSR milling royalty ("TB-MR1"). The TB-MR1 royalty applies to ore
that is mined outside of the defined area of the Taparko-Bouroum
project that is processed through the Taparko facilities up to a
maximum of 1.1 million tons per year. Both the TB-GSR3 and TB-MR1
royalties commence once TB-GSR1 and TB-GSR2 have ceased. Both
TB-GSR1 and TB-GSR2 continue until either production reaches
804,420 ounces of gold, or payments totaling $35 million under
TB-GSR1 are received, whichever comes first. As of March 31, 2009,
Royal Gold has recognized approximately $8.8 million in royalty
revenue under TB-GSR1 which is attributable to cumulative
production of 67,000 ounces of gold. (3) Royalty percentages: GSR1
and GSR2 - 0.40 - 5.0% (sliding-scale); GSR3 - 0.71%; NVR1 - 0.39%.
As of October 1, 2008, the GSR2 royalty percentage was restructured
to match the current GSR1 rate. (4) Royalty revenue has been
restated for fiscal 2008. (5) The Company's sliding-scale royalty
is subject to a 2.0 million ounce cap on gold production. There
have been approximately 370,000 ounces of cumulative production, as
of March 31, 2009. (6) Revenues consist of provisional payments for
concentrates produced during the current period and final
settlements for prior production periods. (7) The Company's royalty
is capped once payments of approximately $12.0 million have been
received. As of March 31, 2009, approximately $9.3 million remains
unrecognized under the cap. NSR sliding-scale schedule (price of
gold per ounce - royalty rate as of 3/31/09): $0 to $478.10 -
0.00%; $478.11 to $546.41 - 0.625%; $546.42 to $580.57 - 0.875%;
$580.58 to $614.72 - 1.125%; $614.73 to $648.87 - 1.50%; $648.88
and above - 1.875%. The sliding-scale schedule is adjusted based on
the average of the United States, Australian and Canadian Consumer
Price Indices on a quarterly basis. The most current rate available
is reflected herein. (8) Royalty revenue commenced in June 2008 for
Penasquito; October 2008 for Siguiri; and December 2008 for
Dolores. (9) Revenue only pertains to the 1.25% NSR royalty. The
2.0% NSR royalty becomes effective once the mine reaches 75% of
commercial production, which the operator expects to be reached
during the second quarter of calendar 2009. (10) Royalties included
in the "Other" category that were acquired in the Barrick
transaction in October 2008 contributed aggregate royalty revenue
of $967,000 in the three month period ended March 31, 2009, not
including royalty revenue from Siguiri and Mulatos, which are shown
in the table. The remaining royalties in the "Other" category
contributed aggregate royalty revenue of $2.6 million in the three
month period ended March 31, 2009, compared to $2.4 million in the
three month period ended March 31, 2008. Of this royalty revenue,
Benso contributed $627,000, El Chanate contributed $529,000 and
Troy contributed $504,000 for the current period, compared to $0,
$152,000 and $747,000 for the prior period, respectively. ROYAL
GOLD, INC. Consolidated Balance Sheets (In thousands except share
data) March 31, June 30, 2009 2008 (As Restated) Current assets
Cash and equivalents $50,538 $192,035 Royalty receivables 18,248
16,317 Income taxes receivable 2,038 2,186 Deferred tax assets 91
131 Prepaid expenses and other 1,429 308 Total current assets
72,344 210,977 Royalty interests in mineral properties, net 466,282
300,670 Restricted cash - compensating balance 19,250 15,750
Inventory - restricted 11,052 11,170 Other assets 5,786 7,283 Total
assets $574,714 $545,850 Current liabilities Accounts payable
$5,702 $4,753 Dividends payable 2,738 2,384 Other 2,135 1,797 Total
current liabilities 10,575 8,934 Net deferred tax liabilities
23,468 26,034 Term loan facility 19,250 15,750 Other long-term
liabilities 688 504 Total liabilities 53,981 51,222 Commitments and
contingencies Minority interest in subsidiary 11,416 11,411
Stockholders' equity Common stock, $0.01 par value, authorized
100,000,000 shares; and issued 33,958,082 and 33,926,495 shares,
respectively 340 339 Additional paid-in capital 466,100 463,335
Accumulated other comprehensive (loss) income (32) 65 Accumulated
earnings 42,909 19,478 Total stockholders' equity 509,317 483,217
Total liabilities and stockholders' equity $574,714 $545,850 ROYAL
GOLD, INC. Consolidated Statements of Operations and Comprehensive
Income (Unaudited, in thousands except share data) For The Three
Months Ended March 31, March 31, 2009 2008 (As Restated) Royalty
revenues $20,797 $18,731 Costs and expenses Costs of operations
(exclusive of depreciation, depletion and amortization shown
separately below) 1,154 1,006 General and administrative 1,812
1,981 Exploration and business development 732 817 Depreciation,
depletion and amortization 9,960 5,925 Total costs and expenses
13,658 9,729 Operating income 7,139 9,002 Interest and other income
1,075 1,715 Interest and other expense (266) (330) Income before
income taxes 7,948 10,387 Income tax expense (2,534) (3,358)
Minority interest in income of consolidated subsidiary (1,272)
(140) Net income $4,142 $6,889 Adjustments to comprehensive income
Unrealized change in market value of available for sale securities,
net of tax (24) (109) Comprehensive income $4,118 $6,780 Net income
$4,142 $6,889 Preferred dividends - (3,584) Net income available to
common stockholders $4,142 $3,305 Basic earnings per share $0.12
$0.11 Basic weighted average shares outstanding 34,008,758
30,932,084 Diluted earnings per share $0.12 $0.11 Diluted weighted
average shares outstanding 34,447,169 31,213,663 ROYAL GOLD, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited, in thousands except share data) For The Nine Months
Ended March 31, March 31, 2009 2008 (As Restated) Royalty revenues
$51,499 $45,944 Costs and expenses Costs of operations (exclusive
of depreciation, depletion and amortization shown separately below)
2,615 2,748 General and administrative 5,604 5,509 Exploration and
business development 2,369 3,298 Depreciation, depletion, and
amortization 22,921 11,933 Total costs and expenses 33,509 23,488
Operating income 17,990 22,456 Gain on royalty restructuring 31,500
- Interest and other income 2,198 5,667 Interest and other expense
(929) (1,492) Income before income taxes 50,759 26,631 Income tax
expense (17,660) (8,362) Minority interest in income of
consolidated subsidiary (1,810) (682) Loss from equity investment -
(550) Net income $31,289 $17,037 Adjustments to comprehensive
income Unrealized loss in market value of available for sale
securities, net of tax (97) (282) Comprehensive income $31,192
$16,755 Net income $31,289 $17,037 Preferred dividends - (4,788)
Net income available to common stockholders $31,289 $12,249 Basic
earnings per share $0.92 $0.41 Basic weighted average shares
outstanding 33,965,171 29,808,962 Diluted earnings per share $0.91
$0.41 Diluted weighted average shares outstanding 34,402,551
30,134,888 ROYAL GOLD, INC. Consolidated Statements of Cash Flows
(Unaudited, in thousands) For The Nine Months Ended March 31, March
31, 2009 2008 (As Restated) Cash flows from operating activities
Net income $31,289 $17,037 Adjustments to reconcile net income to
net cash provided by operating activities: Depreciation, depletion
and amortization 22,921 11,933 Deferred tax benefit (2,072) (1,154)
Non-cash employee stock compensation expense 2,225 2,145 Gain on
royalty restructuring (31,500) - Loss on available for sale
securities - 49 Note receivable - Battle Mountain Gold Exploration
- (713) Tax benefit of stock-based compensation exercises (289)
(515) Changes in assets and liabilities: Royalty receivables
(1,931) (695) Prepaid expenses and other assets (857) (2,199)
Accounts payable 1,457 2,921 Income taxes receivable 190 67 Other
(28) (171) Net cash provided by operating activities $21,405
$28,705 Cash flows from investing activities Acquisition of royalty
interests in mineral properties (186,110) (15,939) Proceeds from
royalty restructuring 31,500 - Restricted cash - compensating
balance (3,500) - Proceeds on sale of inventory - restricted 1,016
- Deferred acquisition costs (967) (63) Battle Mountain
acquisition, net of cash acquired of $1,398,181 - (2,933) Other
(97) (12) Net cash used in investing activities $(158,158)
$(18,947) Cash flows from financing activities: Tax benefit of
stock-based compensation exercises $289 $515 Debt issuance costs
(785) (26) Term loan facility 3,500 - Common dividends paid (7,504)
(5,869) Distribution to minority interest holder (1,016) -
Preferred stock dividends paid - (2,802) Gold loan payoff - Battle
Mountain - (6,852) Net proceeds from issuance of common stock 772
675 Net proceeds from issuance of preferred stock - 111,098 Net
cash (used in) provided by financing activities $(4,744) $91,223
Net (decrease) increase in cash and equivalents (141,497) 100,981
Cash and equivalents at beginning of period 192,035 82,842 Cash and
equivalents at end of period $50,538 $183,823 Supplemental cash
flow information: Non-cash financing activities: Conversion of
preferred stock to common stock $- $116,946 Battle Mountain
acquisition (with common stock) $- $35,832 SCHEDULE A Non-GAAP
Financial Measures The Company computes and discloses free cash
flow and free cash flow as a percentage of revenues. Free cash flow
is a non-GAAP financial measure. Free cash flow is defined by the
Company as operating income plus depreciation, depletion and
amortization, non-cash charges, and any impairment of mining
assets, less minority interest in operating income of consolidated
subsidiary. Management believes that free cash flow and free cash
flow as a percentage of revenues are useful measures of performance
of our royalty portfolio. Free cash flow identifies the cash
generated in a given period that will be available to fund the
Company's future operations, growth opportunities, and shareholder
dividends. Free cash flow, as defined, is most directly comparable
to operating income in the Statements of Operations. Below is the
reconciliation to operating income: For the Three Months Ended
March 31, (unaudited) 2009 2008 (As restated) Operating income
$7,139 $9,002 Depreciation, depletion and amortization 9,960 5,925
Non-Cash employee stock compensation 674 727 Minority interest in
operating income of consolidated subsidiary(1) (256) (140) Free
cash flow $17,517 $15,514 For the Nine Months Ended March 31,
(unaudited) 2009 2008 (As restated) Operating income $17,990
$22,456 Depreciation, depletion and amortization 22,921 11,933
Non-Cash employee stock compensation 2,225 2,145 Minority interest
in operating income of consolidated subsidiary(1) (794) (682) Free
cash flow $42,342 $35,852 (1) Only the portion of minority interest
included in operating income of Royal Gold was subtracted in the
reconciliation of free cash flow to operating income. DATASOURCE:
Royal Gold, Inc. CONTACT: Karen Gross, Vice President and Corporate
Secretary of Royal Gold, Inc., +1-303-575-6504 Web Site:
http://www.royalgold.com/
Copyright