Vancouver — Royalty companies are as obsessed with reserve replacement as any other mining company, but in the grand scheme of things, they’re at the mercy of the operators of the mines in which they hold royalty interests. That’s no hardship for
The Denver-based company has royalties at three large operations in Nevada, including the Pipeline complex, operated by
Other royalties cover Placer Dome’s Bald Mountain gold mine, also in Nevada, the Troy silver-copper mine, operated by
Royal Gold reports that last year’s exploration by the operating companies added 2.2 million oz. gold and 4.2 million oz. silver to reserves subject to its royalties.
President Stanley Dempsey describes reserve replacement as a “key value driver” for a royalty company. “We are pleased to be associated with high-quality mine operators who have the technical and financial capabilities to develop additional reserves subject to our royalties.”
The company expects the Pipeline complex to produce 860,000 oz. gold subject to its royalties this year, while Leeville North and South will together contribute 141,000 oz. (Note: these estimates do not reflect total production for the mine complexes).
The SJ claims are expected to produce 674,000 oz., while Bald Mountain will contribute 40,000 oz. subject to the company’s royalties this year.
The Martha mine expects to produce 1.7 million oz. silver subject to the company’s royalties this year, while the Troy mine anticipates production of 2.8 million oz. silver and 23.4 million lbs. copper subject to royalties.
Royal Gold earned US$5.1 million on royalty revenue of US$12 million in the last half 2004, compared with year-earlier earnings of US$3.6 million on revenue of US$9.3 million.
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