Royal posts record income

Denver-based royalty company Royal Gold (RGLD-Q) has posted record third-quarter net income of US$1.6 million, or 9 per basic share.

That compares with year-ago net income of US$358,997 (or 2 per share). Revenue between the two third quarters climbed to US$3.1 million from US$1.4 million. Free cash flow rang in at US$2.2 million.

Royal holds two sliding scale gross smelter returns royalties, a fixed gross royalty and a net value royalty on the Pipeline mining complex in Lander County, Nevada. The complex is owned by a joint venture between Placer Dome (PDG-T) (60%), a subsidiary of and Rio Tinto (RTP-N) (40%). The Pipeline pumped out 278,008 oz. of gold during the quarter, generating US$3 million for Royal, well ahead of the year-ago pace. .

Royal’s 1.75% net smelter returns royalty on a portion of Placer’s Bald Mountain mine netted it 23,674 oz. of gold. The mine is expected to churn out about 70,000 oz. for Royal’s account in fiscal 2002.

The company also has a 2% net smelter returns royalty on mineral production from nearly 1,500-sq.-km of development and exploration properties in Santa Cruz Province, Southern Argentina, previously held by Yamana Resources. Coeur d’Alene Mines (CDE-N) acquired the properties in April.

At the end of March, the company had working capital of US$10.7 million.

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