ROYAL GOLD INC, 10-Q filed on 11/1/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
3 Months Ended
Sep. 30, 2018
Oct. 25, 2018
Document and Entity Information    
Entity Registrant Name ROYAL GOLD INC  
Entity Central Index Key 0000085535  
Document Type 10-Q  
Document Period End Date Sep. 30, 2018  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shares Outstanding   65,509,128
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2018
Jun. 30, 2018
ASSETS    
Cash and equivalents $ 117,078 $ 88,750
Royalty receivables 25,106 26,356
Income tax receivable 6,381 40
Stream inventory 10,011 9,311
Prepaid expenses and other 854 1,350
Total current assets 159,430 125,807
Stream and royalty interests, net 2,458,615 2,501,117
Other assets 54,821 55,092
Total assets 2,672,866 2,682,016
LIABILITIES    
Accounts payable 5,055 9,090
Dividends payable 16,376 16,375
Income tax payable 8,012 18,253
Withholding taxes payable 2,551 3,254
Other current liabilities 5,377 4,411
Total current liabilities 37,371 51,383
Debt 354,939 351,027
Deferred tax liabilities 91,356 91,147
Uncertain tax positions 36,659 33,394
Other long-term liabilities 13,275 13,796
Total liabilities 533,600 540,747
Commitments and contingencies (Note 10)
EQUITY    
Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,394,898 and 65,360,041 shares outstanding, respectively 654 654
Additional paid-in capital 2,195,034 2,192,612
Accumulated other comprehensive loss   (1,201)
Accumulated losses (92,467) (89,898)
Total Royal Gold stockholders’ equity 2,103,221 2,102,167
Non-controlling interests 36,045 39,102
Total equity 2,139,266 2,141,269
Total liabilities and equity $ 2,672,866 $ 2,682,016
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2018
Jun. 30, 2018
Consolidated Balance Sheets    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares outstanding 65,394,898 65,360,041
v3.10.0.1
Consolidated Statements of Operations and Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Consolidated Statements of Operations and Comprehensive Income    
Revenue $ 99,992 $ 112,476
Costs and expenses    
Cost of sales 16,527 20,419
General and administrative 9,927 6,899
Production taxes 1,292 543
Exploration costs 4,362 3,203
Depreciation, depletion and amortization 42,551 39,692
Total costs and expenses 74,659 70,756
Operating income 25,333 41,720
Fair value changes in equity securities (1,468)  
Interest and other income 103 989
Interest and other expense (7,877) (8,617)
Income before income taxes 16,091 34,092
Income tax expense (4,115) (7,544)
Net income 11,976 26,548
Net loss attributable to non-controlling interests 3,032 2,083
Net income attributable to Royal Gold common stockholders 15,008 28,631
Net income 11,976 26,548
Adjustments to comprehensive income, net of tax    
Unrealized change in market value of available-for-sale securities   197
Comprehensive income 11,976 26,745
Comprehensive loss attributable to non-controlling interests 3,032 2,083
Comprehensive income attributable to Royal Gold stockholders $ 15,008 $ 28,828
Net income per share available to Royal Gold common stockholders:    
Basic earnings per share (in dollars per share) $ 0.23 $ 0.44
Basic weighted average shares outstanding (in shares) 65,374,866 65,235,496
Diluted earnings per share (in dollars per share) $ 0.23 $ 0.44
Diluted weighted average shares outstanding (in shares) 65,497,159 65,404,680
Cash dividends declared per common share (in dollars per share) $ 0.25 $ 0.24
v3.10.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net income $ 11,976 $ 26,548
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 42,551 39,692
Amortization of debt discount and issuance costs 3,903 3,679
Non-cash employee stock compensation expense 2,444 2,373
Fair value changes in equity securities 1,468  
Deferred tax benefit (1,681) (727)
Other   (223)
Changes in assets and liabilities:    
Royalty receivables 1,250 (2,193)
Stream inventory (701) 89
Income tax receivable (6,341) (3,854)
Prepaid expenses and other assets 1,061 (1,654)
Accounts payable (4,060) (985)
Income tax payable (10,241) 6,035
Withholding taxes payable (703) 37
Uncertain tax positions 3,266 2,493
Other liabilities 445 299
Net cash provided by operating activities 44,637 71,609
Cash flows from investing activities:    
Acquisition of stream and royalty interests (3) (5)
Other (121) 100
Net cash (used in) provided by investing activities (124) 95
Cash flows from financing activities:    
Repayment of revolving credit facility   (50,000)
Net payments from issuance of common stock (1,972) (3,529)
Common stock dividends (16,376) (15,682)
Other 2,163 55
Net cash used in financing activities (16,185) (69,156)
Net increase in cash and equivalents 28,328 2,548
Cash and equivalents at beginning of period 88,750 85,847
Cash and equivalents at end of period $ 117,078 $ 88,395
v3.10.0.1
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS
3 Months Ended
Sep. 30, 2018
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS  
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

 1.    OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

 

Royal Gold, Inc. (“Royal Gold”, the “Company”, “we”, “us”, or “our”), together with its subsidiaries, is engaged in the business of acquiring and managing metal streams, royalties and similar interests.  We seek to acquire existing stream and royalty interests or to finance mining projects that are in production or in the development stage in exchange for stream or royalty interests.  A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement.  A royalty is a non-operating interest in a mining project that provides the right to revenue or metals produced from the project after deducting contractually specified costs, if any. 

 

Summary of Significant Accounting Policies

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements.  In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q.  Operating results for the three months ended September 30, 2018, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019.  These interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed with the Securities and Exchange Commission on August 9, 2018 (“Fiscal 2018 10-K”).

 

Recently Adopted Accounting Standards

 

Revenue Recognition

 

On July 1, 2018, we adopted Accounting Standards Codification 606 - Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method of transition.  Under this transition approach, we applied ASC 606 to all existing contracts for which all (or substantially all) of the revenue attributable to a contract had not been recognized under legacy revenue guidance.  The guidance of ASC 606 will also be applied to any new contracts entered into on or after July 1, 2018.

 

ASC 606 supersedes nearly all of the existing revenue recognition guidance under U.S. GAAP and sets out a five-step revenue recognition framework to recognize revenue upon the transfer of control of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services.

 

For the three months ended September 30, 2018, there was no impact to our reported revenue, operating costs and expenses or net income attributable to Royal Gold common stockholders as a result of adopting ASC 606, as compared to legacy revenue guidance under U.S. GAAP.  In addition, no cumulative catch-up adjustment to accumulated losses was required on July 1, 2018 as a result of adopting ASC 606.  Please refer to Note 4 for additional discussion.

 

Recognition and Measurement of Financial Instruments

 

On July 1, 2018, we adopted Accounting Standards Update (“ASU”) 2016-01 – Financial Instrument, which is guidance on the recognition and measurement of financial instruments.  The amended guidance requires, among other things, that equity securities previously classified as available-for-sale be measured at fair value with changes in fair value recognized in net income rather than other comprehensive income (loss) as required under previous guidance.  Upon adoption, the Company recorded a cumulative-effect adjustment in Accumulated losses of $1.2 million.  The change in fair value of our equity securities was approximately $1.5 million for the three months ended September 30, 2018 and is included in Fair value change of marketable equity securities on our consolidated statements of operations and comprehensive income.  The carrying value of the Company’s equity securities as of September 30, 2018 and June 30, 2018 was $17.8 million and $19.2 million, respectively, and is included in Other assets on the Company’s consolidated balance sheets. As of September 30, 2018, the Company owns 682,556 common shares of Contango Ore, Inc. (“CORE”) and 3,379,913 common shares of Rubicon Minerals Corporation.

 

Recently Issued Accounting Standards

 

Leases

 

In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (Topic 842) which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for virtually all leases currently classified as operating leasesUnder ASU 2016-02, companies are permitted to make a policy election to not recognize lease assets or liabilities when the term of the lease is less than twelve months.  The new guidance is effective for the Company’s fiscal year beginning July 1, 2019, and early adoption is permitted.  We are currently evaluating the transition effort and impact, if any, this guidance will have on our consolidated financial statements and footnote disclosures.

v3.10.0.1
STREAM AND ROYALTY INTERESTS, NET
3 Months Ended
Sep. 30, 2018
STREAM AND ROYALTY INTERESTS, NET  
STREAM AND ROYALTY INTERESTS, NET

2.    STREAM AND ROYALTY INTERESTS, NET

 

The following tables summarize the Company’s stream and royalty interests, net as of September 30, 2018 and June 30, 2018.

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018 (Amounts in thousands):

    

Cost

    

Accumulated Depletion

    

Net

Production stage stream interests:

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

790,635

 

$

(155,695)

 

$

634,940

Pueblo Viejo

 

 

610,404

 

 

(125,261)

 

 

485,143

Andacollo

 

 

388,182

 

 

(70,747)

 

 

317,435

Wassa and Prestea

 

 

146,475

 

 

(46,711)

 

 

99,764

Rainy River

 

 

175,727

 

 

(6,939)

 

 

168,788

Total production stage stream interests

 

 

2,111,423

 

 

(405,353)

 

 

1,706,070

Production stage royalty interests:

 

 

 

 

 

 

 

 

 

Voisey's Bay

 

 

205,724

 

 

(90,006)

 

 

115,718

Peñasquito

 

 

99,172

 

 

(39,054)

 

 

60,118

Holt

 

 

34,612

 

 

(21,569)

 

 

13,043

Cortez

 

 

20,878

 

 

(11,275)

 

 

9,603

Other

 

 

483,795

 

 

(371,074)

 

 

112,721

Total production stage royalty interests

 

 

844,181

 

 

(532,978)

 

 

311,203

Total production stage stream and royalty interests

 

 

2,955,604

 

 

(938,331)

 

 

2,017,273

 

 

 

 

 

 

 

 

 

 

Development stage stream interests:

 

 

 

 

 

 

 

 

 

Other

 

 

12,038

 

 

 —

 

 

12,038

 

 

 

 

 

 

 

 

 

 

Development stage royalty interests:

 

 

 

 

 

 

 

 

 

Cortez

 

 

59,803

 

 

 —

 

 

59,803

Other

 

 

74,329

 

 

 —

 

 

74,329

Total development stage royalty interests

 

 

134,132

 

 

 —

 

 

134,132

Total development stage stream and royalty interests

 

 

146,170

 

 

 —

 

 

146,170

 

 

 

 

 

 

 

 

 

 

Exploration stage royalty interests:

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

 

177,690

 

 

 —

 

 

177,690

Other

 

 

117,482

 

 

 —

 

 

117,482

Total exploration stage royalty interests

 

 

295,172

 

 

 —

 

 

295,172

Total stream and royalty interests, net

 

$

3,396,946

 

$

(938,331)

 

$

2,458,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2018 (Amounts in thousands):

    

Cost

    

Accumulated Depletion

    

Impairments

 

Net

Production stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

790,635

 

$

(152,833)

 

$

 —

 

$

637,802

Pueblo Viejo

 

 

610,404

 

 

(114,944)

 

 

 —

 

 

495,460

Andacollo

 

 

388,182

 

 

(59,851)

 

 

 —

 

 

328,331

Wassa and Prestea

 

 

146,475

 

 

(41,601)

 

 

 —

 

 

104,874

Rainy River

 

 

175,727

 

 

(4,028)

 

 

 —

 

 

171,699

Total production stage stream interests

 

 

2,111,423

 

 

(373,257)

 

 

 —

 

 

1,738,166

Total production stage stream and royalty interests

 

 

 

 

 

 

 

 

 

 

 

 

Production stage royalty interests:

 

 

 

 

 

 

 

 

 

 

 

 

Voisey's Bay

 

 

205,724

 

 

(86,933)

 

 

 —

 

 

118,791

Peñasquito

 

 

99,172

 

 

(38,426)

 

 

 —

 

 

60,746

Holt

 

 

34,612

 

 

(21,173)

 

 

 —

 

 

13,439

Cortez

 

 

20,878

 

 

(11,241)

 

 

 —

 

 

9,637

Other

 

 

483,795

 

 

(364,795)

 

 

 —

 

 

119,000

Total production stage royalty interests

 

 

844,181

 

 

(522,568)

 

 

 —

 

 

321,613

Total production stage stream and royalty interests

 

 

2,955,604

 

 

(895,825)

 

 

 —

 

 

2,059,779

Development stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

12,038

 

 

 —

 

 

 —

 

 

12,038

 

 

 

 

 

 

 

 

 

 

 

 

 

Development stage royalty interests:

 

 

 

 

 

 

 

 

 

 

 

 

Cortez

 

 

59,803

 

 

 —

 

 

 —

 

 

59,803

Other

 

 

74,610

 

 

 —

 

 

(284)

 

 

74,326

Total development stage royalty interests

 

 

134,413

 

 

 —

 

 

(284)

 

 

134,129

Total development stage stream and royalty interests

 

 

146,451

 

 

 —

 

 

(284)

 

 

146,167

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration stage royalty interests:

 

 

 

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

 

416,770

 

 

 —

 

 

(239,080)

 

 

177,690

Other

 

 

117,481

 

 

 —

 

 

 —

 

 

117,481

Total exploration stage royalty interests

 

 

534,251

 

 

 —

 

 

(239,080)

 

 

295,171

Total stream and royalty interests, net

 

$

3,636,306

 

$

(895,825)

 

$

(239,364)

 

$

2,501,117

 

 

Voisey’s Bay

 

The royalty on production of nickel, copper, cobalt and other minerals from the Voisey’s Bay mine in Newfoundland and Labrador, Canada is directly owned by the Labrador Nickel Royalty Limited Partnership (“LNRLP”), in which the Company’s wholly-owned indirect subsidiary is the general partner and 90% owner. The remaining 10% interest in LNRLP is owned by a subsidiary of Altius Minerals Corporation (“Altius”).

 

On September 13, 2018, LNRLP entered into an agreement with Vale Canada Limited and certain of its subsidiaries (collectively, the “Parties”) to comprehensively settle their long-standing litigation related to calculation of the royalty on the sale of all concentrates produced from the Voisey’s Bay mine.  Refer to Note 14 of our Fiscal 2018 10-K for further discussion on the claims previously asserted by LNRLP.

 

The Parties agreed to a new method for calculating the royalty in respect of concentrates processed at Vale’s Long Harbour Processing Plant, which will be effective for all Voisey’s Bay mine production after April 1, 2018.  Under the terms of the settlement, Royal Gold expects the 3% royalty rate will apply to approximately 50% of the gross metal value in the concentrates at the nickel, copper and cobalt prices prevailing at the time of settlement.  As those metal prices rise or fall, the percentage of gross metal value in the concentrates applicable to the royalty would correspondingly increase or decrease.

During the three months ended September 30, 2018, the Company recognized approximately $4.9 million in royalty revenue attributable to Voisey’s Bay metal production from the June 30 and September 30, 2018 quarters.  Royalty payments for each quarter are due 45 days after quarter-end.  Refer to Note 4 for further discussion on our revenue recognition.

v3.10.0.1
DEBT
3 Months Ended
Sep. 30, 2018
DEBT  
DEBT

3.    DEBT

 

The Company’s non-current debt as of September 30, 2018 and June 30, 2018 consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018

 

As of June 30, 2018

 

   

Principal

   

Unamortized Discount

   

Debt Issuance Costs

   

Total

   

Principal

   

Unamortized Discount

   

Debt Issuance Costs

   

Total

 

 

 

(Amounts in thousands)

 

 

(Amounts in thousands)

Convertible notes due 2019

 

$

370,000

 

$

(9,512)

 

$

(976)

 

$

359,512

 

$

370,000

 

$

(12,764)

 

$

(1,316)

 

$

355,920

Revolving credit facility

 

 

 —

 

 

 —

 

 

(4,573)

 

 

(4,573)

 

 

 —

 

 

 —

 

 

(4,893)

 

 

(4,893)

Total debt

 

$

370,000

 

$

(9,512)

 

$

(5,549)

 

$

354,939

 

$

370,000

 

$

(12,764)

 

$

(6,209)

 

$

351,027

 

Convertible Senior Notes Due 2019

 

In June 2012, the Company completed an offering of $370 million aggregate principal amount of 2.875% convertible senior notes due 2019 (“2019 Notes”).  The 2019 Notes bear interest at the rate of 2.875% per annum, and the Company is required to make semi-annual interest payments on the outstanding principal balance of the 2019 Notes on June 15 and December 15 of each year, beginning December 15, 2012.  The 2019 Notes mature on June 15, 2019.  Generally, we classify debt that is maturing within one year as a current liability.  However, the Company has the intent and ability to settle the principal amount of the 2019 Notes in cash primarily from its available revolving credit facility, a non-current liability, as of September 30 and June 30, 2018.

 

Interest expense recognized on the 2019 Notes for the three months ended September 30, 2018, was $6.3 million compared to $6.0 million for the three months ended September 30, 2017, and included the contractual coupon interest, the accretion of the debt discount and amortization of the debt issuance costs.

 

Revolving credit facility

 

The Company maintains a $1 billion revolving credit facility.  As of September 30, 2018, the Company had no amounts outstanding and $1 billion available under the revolving credit facility.  Interest expense recognized on the revolving credit facility for the three months ended September 30, 2018 was $0.3 million (amortization of debt issuance costs only) and $1.8 million, for the three months ended September 30, 2017, which included interest on the outstanding borrowings and the amortization of the debt issuance costs.  Royal Gold may repay any borrowings under the revolving credit facility at any time without premium or penalty.

 

As discussed in Note 5 to the notes to consolidated financial statements in the Company’s Fiscal 2018 10-K, the Company has financial covenants associated with its revolving credit facility.  As of September 30, 2018, the Company was in compliance with each financial covenant.

v3.10.0.1
REVENUE
3 Months Ended
Sep. 30, 2018
REVENUE  
REVENUE

4.    REVENUE

 

Revenue Recognition

 

Under current ASC 606 guidance, a performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers.  The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement.  A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below.

 

Stream Interests

 

A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily using average spot rate gold, silver and copper forward contracts.  The sales price for these average spot rate forward contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive number of trading days between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time) commencing shortly after receipt and purchase of the metal. We settle our forward sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our forward sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the metal transfer to the purchaser.

 

Royalty Interests

 

Royalties are non-operating interests in mining projects that provide the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (monthly or quarterly average spot price) for the period in which metal production occurred.  As a royalty holder, we act as a passive entity in the production and operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to their ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer.  We have further determined that the transfer of each unit of metal production, comprising our royalty interest, to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time of metal production by the operator.  Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable offsite treatment, refining, transportation and, if applicable, mining costs.

 

Royalty Revenue Estimates

 

For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements.  As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator.  If adequate information is not available from the operator or from other public sources before we issue our financial statements, the Company will recognize royalty revenue during the period in which the necessary payment information is received.  Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known.  Please also refer to our “Use of Estimates” accounting policy discussed in our Fiscal 2018 10-K.   For the period ended September 30, 2018, royalty revenue that was estimated or was attributable to metal production for a period prior to September 30, 2018, was not material. 

 

Disaggregation of Revenue

 

We have identified two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 8.

 

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows:  

 

 

 

 

 

 

 

Three Months Ended

 

    

September 30, 2018

Stream revenue:

 

 

 

Gold

 

$

59,114

Silver

 

 

8,720

Copper

 

 

2,203

Total stream revenue

 

$

70,037

Royalty revenue:

 

 

 

Gold

 

$

18,554

Silver

 

 

1,352

Copper

 

 

3,615

Other

 

 

6,434

Total royalty revenue

 

$

29,955

Total revenue

 

$

99,992

 

Revenue attributable to our principal stream and royalty interests is disaggregated as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

    

 

Metal(s)

    

September 30, 2018

Stream revenue:

 

 

 

 

 

 

Andacollo

 

 

Gold

 

$

27,743

Pueblo Viejo

 

 

Gold & Silver

 

 

19,486

Mount Milligan

 

 

Gold & Copper

 

 

8,847

Wassa and Prestea

 

 

Gold

 

 

8,061

Other

 

 

Gold & Silver

 

 

5,900

Total stream revenue

 

 

 

 

$

70,037

Royalty revenue:

 

 

 

 

 

 

Peñasquito

 

 

Gold, Silver, Lead & Zinc

 

$

3,637

Cortez

 

 

Gold

 

 

603

Other

 

 

Various

 

 

25,715

Total royalty revenue

 

 

 

 

$

29,955

Total revenue

 

 

 

 

$

99,992

 

Please refer to Note 8 for the geographical distribution of our revenue by reportable segment.

 

Contract Receivables

 

Under our forward sales contracts related to our metal streaming arrangements, payment is due from the purchaser on the day of settlement. Accordingly, our metal stream sales contracts do not give rise to a receivable under ASC 606.

 

Under our royalty arrangements, payment is typically due by the royalty payor either (i) monthly, typically thirty days after month-end or (ii) quarterly, typically thirty to sixty days after the respective quarter-end.  Revenue related to production that has occurred as of the reporting date but for which payment has not been received represents a receivable (rather than a contract asset) under ASC 606, as payment by the operator is unconditional upon the production of metal.  As of September 30, 2018, and June 30, 2018, our royalty receivables were $25.1 million and $26.4 million, respectively.

 

Practical Expedients Utilized

 

Our forward sales contracts related to our metal streaming arrangements are short-term in nature with a term of one year or less. For these contracts, we have utilized the practical expedient allowed in ASC 606 that exempts us from presenting the transaction price allocated to remaining performance obligations (i.e. forecasts of unearned revenue) for contracts with an original expected term of one year or less.

 

Our royalty arrangements generally cover metal production over the life of a mine and, thus, have a contract term that is greater than one year.  Under these contracts, variability related to future production volumes and market pricing is allocated entirely to those future production volumes from the mining operation. Consequently, we have utilized an alternative practical expedient allowed in ASC 606 that exempts us from presenting the transaction price allocated to remaining performance obligations (i.e. forecasts of unearned revenue) if the variable consideration in a contract is allocated entirely to a wholly unsatisfied performance obligation.

v3.10.0.1
STOCK-BASED COMPENSATION
3 Months Ended
Sep. 30, 2018
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

5.    STOCK-BASED COMPENSATION

 

The Company recognized stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 

 

September 30, 

 

    

2018

    

2017

 

 

 

(Amounts in thousands)

Stock options

 

$

120

 

$

91

Stock appreciation rights

 

 

766

 

 

488

Restricted stock

 

 

1,280

 

 

1,426

Performance stock

 

 

278

 

 

368

Total stock-based compensation expense

 

$

2,444

 

$

2,373

 

Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income.

 

During the three months ended September 30, 2018, the Company granted the following stock-based compensation awards:

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30, 

 

 

September 30, 

 

    

 

2018

    

 

2017

 

 

 

(Number of shares)

Stock options

 

 

6,430

 

 

6,858

Stock appreciation rights

 

 

69,360

 

 

71,262

Restricted stock

 

 

42,260

 

 

50,380

Performance stock (at maximum 200% attainment)

 

 

57,420

 

 

68,020

Total equity awards granted

 

 

175,470

 

 

196,520

 

As of September 30, 2018, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

 

 

 

 

 

 

 

 

 

 

Unrecognized

    

Weighted-

 

 

compensation

 

average vesting

 

 

expense

    

period (years)

Stock options

 

$

227

 

 

2.2

Stock appreciation rights

 

 

2,949

 

 

2.2

Restricted stock

 

 

6,307

 

 

3.4

Performance stock

 

 

1,736

 

 

2.1

 

v3.10.0.1
EARNINGS PER SHARE ("EPS")
3 Months Ended
Sep. 30, 2018
EARNINGS PER SHARE ("EPS")  
EARNINGS PER SHARE ("EPS")

6.    EARNINGS PER SHARE (“EPS”)

 

Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities.  Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method.  The Company’s unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared.  The Company’s unexercised stock options, unexercised SSARs and unvested performance stock do not contain rights to dividends.  Under the two-class method, the earnings used to determine basic earnings per common share are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share.

 

The following tables summarize the effects of dilutive securities on diluted EPS for the period:

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 

 

September 30, 

 

    

2018

    

2017

 

 

 

(in thousands, except per share data)

Net income available to Royal Gold common stockholders

 

$

15,008

 

$

28,631

Weighted-average shares for basic EPS

 

 

65,374,866

 

 

65,235,496

Effect of other dilutive securities

 

 

122,293

 

 

169,184

Weighted-average shares for diluted EPS

 

 

65,497,159

 

 

65,404,680

Basic earnings per share

 

$

0.23

 

$

0.44

Diluted earnings per share

 

$

0.23

 

$

0.44

 

The calculation of weighted average shares includes all of our outstanding common stock.  The Company intends to settle the principal amount of the 2019 Notes in cash from amounts available under our revolving credit facility.  As a result, there will be no impact to diluted earnings per share unless the share price of the Company’s common stock exceeds the conversion price of $102.43.

v3.10.0.1
INCOME TAXES
3 Months Ended
Sep. 30, 2018
INCOME TAXES  
INCOME TAXES

7.    INCOME TAXES

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 

 

September 30, 

 

    

2018

    

2017

 

 

(Amounts in thousands, except rate)

Income tax expense

 

$

4,115

 

$

7,544

Effective tax rate

 

 

25.6%

 

 

22.1%

 

The increase in the effective tax rate for the three months ended September 30, 2018 was primarily related to fewer discrete tax benefits attributable to equity award vesting and exercises in the current quarter as compared to the quarter ending September 30, 2017.

 

The Company will continue to analyze H.R. 1, originally known as the Tax Cuts and Jobs Act (the “Act”), for additional information and guidance including supplemental legislation, regulatory guidance, or evolving technical interpretations as they become available.  The final Act impacts may differ from the recorded amounts as of September 30, 2018 and the Company will continue to refine such amounts within the measurement period provided by Staff Accounting Bulletin No. 118.  The Company expects to complete its analysis during the second quarter of fiscal year 2019.

v3.10.0.1
SEGMENT INFORMATION
3 Months Ended
Sep. 30, 2018
SEGMENT INFORMATION  
SEGMENT INFORMATION

8.    SEGMENT INFORMATION

 

The Company manages its business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests.  Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018

 

As of June 30, 2018

 

 

 

 

 

 

 

 

Total stream

 

 

 

 

 

 

 

 

 

 

Total stream

 

 

Stream

 

Royalty

 

and royalty

 

Stream

 

Royalty

 

 

 

 

and royalty

 

  

interest

  

interest

  

interests, net

  

interest

  

interest

  

Impairments

  

interests, net

Canada

 

$

803,727

 

$

209,725

 

$

1,013,452

 

$

809,500

 

$

214,562

 

$

(284)

 

$

1,023,778

Dominican Republic

 

 

485,143

 

 

 —

 

 

485,143

 

 

495,460

 

 

 —

 

 

 —

 

 

495,460

Chile

 

 

317,434

 

 

214,226

 

 

531,660

 

 

328,331

 

 

453,306

 

 

(239,080)

 

 

542,557

Africa

 

 

99,764

 

 

495

 

 

100,259

 

 

104,874

 

 

502

 

 

 —

 

 

105,376

Mexico

 

 

 —

 

 

90,243

 

 

90,243

 

 

 —

 

 

93,277

 

 

 —

 

 

93,277

United States

 

 

 —

 

 

164,987

 

 

164,987

 

 

 —

 

 

165,543

 

 

 —

 

 

165,543

Australia

 

 

 —

 

 

33,622

 

 

33,622

 

 

 —

 

 

34,254

 

 

 —

 

 

34,254

Other

 

 

12,039

 

 

27,210

 

 

39,249

 

 

12,039

 

 

28,833

 

 

 —

 

 

40,872

Total

 

$

1,718,107

 

$

740,508

 

$

2,458,615

 

$

1,750,204

 

$

990,277

 

$

 (239,364)

 

$

2,501,117

 

The Company’s revenue, cost of sales and net revenue by reportable segment for the three months ended September 30, 2018 and 2017, is geographically distributed as shown in the following table:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

Three Months Ended September 30, 2017

 

    

Revenue

    

Cost of sales

    

Net revenue

    

Revenue

    

Cost of sales

    

Net revenue

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chile

 

$

27,742

 

$

4,278

 

$

23,464

 

$

12,337

 

$

1,812

 

$

10,525

Dominican Republic

 

 

19,486

 

 

6,324

 

 

13,162

 

 

25,403

 

 

7,588

 

 

17,815

Canada

 

 

14,747

 

 

4,265

 

 

10,482

 

 

31,952

 

 

9,223

 

 

22,729

Africa

 

 

8,062

 

 

1,660

 

 

6,402

 

 

9,070

 

 

1,796

 

 

7,274

Total streams

 

$

70,037

 

$

16,527

 

$

53,510

 

$

78,762

 

$

20,419

 

$

58,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

10,181

 

$

 —

 

$

10,181

 

$

6,092

 

$

 —

 

$

6,092

Mexico

 

 

7,996

 

 

 —

 

 

7,996

 

 

10,897

 

 

 —

 

 

10,897

United States

 

 

6,056

 

 

 —

 

 

6,056

 

 

10,429

 

 

 —

 

 

10,429

Australia

 

 

3,060

 

 

 —

 

 

3,060

 

 

3,320

 

 

 —

 

 

3,320

Africa

 

 

492

 

 

 —

 

 

492

 

 

462

 

 

 —

 

 

462

Chile

 

 

 -

 

 

 —

 

 

 -

 

 

 —

 

 

 —

 

 

 -

Other

 

 

2,170

 

 

 —

 

 

2,170

 

 

2,514

 

 

 —

 

 

2,514

Total royalties

 

$

29,955

 

$

 —

 

$

29,955

 

$

33,714

 

$

 —

 

$

33,714

Total streams and royalties

 

$

99,992

 

$

16,527

 

$

83,465

 

$

112,476

 

$

20,419

 

$

92,057

 

v3.10.0.1
FAIR VALUE MEASUREMENTS
3 Months Ended
Sep. 30, 2018
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

9.    FAIR VALUE MEASUREMENTS

 

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy under ASC 820 are described below:

 

Level 1:   Quoted prices for identical instruments in active markets;

 

Level 2:   Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

 

Level 3:   Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018

 

 

Carrying

 

Fair Value

 

    

Amount

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities(1)

 

$

17,771

 

$

17,771

 

$

17,771

 

$

 —

 

$

 —

Total assets

 

$

17,771

 

$

17,771

 

$

17,771

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt(2)

 

$

437,488

 

$

373,393

 

$

373,393

 

$

 —

 

$

 —

Total liabilities

 

$

437,488

 

$

373,393

 

$

373,393

 

$

 —

 

$

 —


(1)

Included in Other assets on the Company’s consolidated balance sheets.

(2)

Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within Additional paid-in capital on the Company’s consolidated balance sheets.

 

The Company’s marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets.  The fair value of the Level 1 marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.  The Company’s debt classified within Level 1 of the fair value hierarchy is valued using quoted prices in an active market. 

 

As of September 30, 2018, the Company also had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets.  For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired.  If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs. 

v3.10.0.1
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Sep. 30, 2018
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

10.COMMITMENTS AND CONTINGENCIES

 

Ilovica Gold Stream Acquisition

 

As of September 30, 2018, the Company’s conditional funding schedule for $163.75 million related to its Ilovica gold stream acquisition made in October 2014 remains subject to certain conditions.

 

v3.10.0.1
SUBSEQUENT EVENTS
3 Months Ended
Sep. 30, 2018
SUBSEQUENT EVENTS  
SUBSEQUENT EVENT

11. SUBSEQUENT EVENT

 

On October 3, 2018, the Company purchased the second and final tranche of CORE common stock (127,188 shares) for $26 per share.  Upon this acquisition, the Company owns 809,744 shares of CORE common stock.

v3.10.0.1
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS (Policies)
3 Months Ended
Sep. 30, 2018
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS  
Basis of Consolidation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements.  In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q.  Operating results for the three months ended September 30, 2018, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019.  These interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed with the Securities and Exchange Commission on August 9, 2018 (“Fiscal 2018 10-K”).

Recently Issued and Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

 

Revenue Recognition

 

On July 1, 2018, we adopted Accounting Standards Codification 606 - Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method of transition.  Under this transition approach, we applied ASC 606 to all existing contracts for which all (or substantially all) of the revenue attributable to a contract had not been recognized under legacy revenue guidance.  The guidance of ASC 606 will also be applied to any new contracts entered into on or after July 1, 2018.

 

ASC 606 supersedes nearly all of the existing revenue recognition guidance under U.S. GAAP and sets out a five-step revenue recognition framework to recognize revenue upon the transfer of control of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services.

 

For the three months ended September 30, 2018, there was no impact to our reported revenue, operating costs and expenses or net income attributable to Royal Gold common stockholders as a result of adopting ASC 606, as compared to legacy revenue guidance under U.S. GAAP.  In addition, no cumulative catch-up adjustment to accumulated losses was required on July 1, 2018 as a result of adopting ASC 606.  Please refer to Note 4 for additional discussion.

 

Recognition and Measurement of Financial Instruments

 

On July 1, 2018, we adopted Accounting Standards Update (“ASU”) 2016-01 – Financial Instrument, which is guidance on the recognition and measurement of financial instruments.  The amended guidance requires, among other things, that equity securities previously classified as available-for-sale be measured at fair value with changes in fair value recognized in net income rather than other comprehensive income (loss) as required under previous guidance.  Upon adoption, the Company recorded a cumulative-effect adjustment in Accumulated losses of $1.2 million.  The change in fair value of our equity securities was approximately $1.5 million for the three months ended September 30, 2018 and is included in Fair value change of marketable equity securities on our consolidated statements of operations and comprehensive income.  The carrying value of the Company’s equity securities as of September 30, 2018 and June 30, 2018 was $17.8 million and $19.2 million, respectively, and is included in Other assets on the Company’s consolidated balance sheets. As of September 30, 2018, the Company owns 682,556 common shares of Contango Ore, Inc. (“CORE”) and 3,379,913 common shares of Rubicon Minerals Corporation.

 

Recently Issued Accounting Standards

 

Leases

 

In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (Topic 842) which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for virtually all leases currently classified as operating leasesUnder ASU 2016-02, companies are permitted to make a policy election to not recognize lease assets or liabilities when the term of the lease is less than twelve months.  The new guidance is effective for the Company’s fiscal year beginning July 1, 2019, and early adoption is permitted.  We are currently evaluating the transition effort and impact, if any, this guidance will have on our consolidated financial statements and footnote disclosures.

v3.10.0.1
STREAM AND ROYALTY INTERESTS, NET (Tables)
3 Months Ended
Sep. 30, 2018
STREAM AND ROYALTY INTERESTS, NET  
Schedule of stream and royalty interests

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018 (Amounts in thousands):

    

Cost

    

Accumulated Depletion

    

Net

Production stage stream interests:

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

790,635

 

$

(155,695)

 

$

634,940

Pueblo Viejo

 

 

610,404

 

 

(125,261)

 

 

485,143

Andacollo

 

 

388,182

 

 

(70,747)

 

 

317,435

Wassa and Prestea

 

 

146,475

 

 

(46,711)

 

 

99,764

Rainy River

 

 

175,727

 

 

(6,939)

 

 

168,788

Total production stage stream interests

 

 

2,111,423

 

 

(405,353)

 

 

1,706,070

Production stage royalty interests:

 

 

 

 

 

 

 

 

 

Voisey's Bay

 

 

205,724

 

 

(90,006)

 

 

115,718

Peñasquito

 

 

99,172

 

 

(39,054)

 

 

60,118

Holt

 

 

34,612

 

 

(21,569)

 

 

13,043

Cortez

 

 

20,878

 

 

(11,275)

 

 

9,603

Other

 

 

483,795

 

 

(371,074)

 

 

112,721

Total production stage royalty interests

 

 

844,181

 

 

(532,978)

 

 

311,203

Total production stage stream and royalty interests

 

 

2,955,604

 

 

(938,331)

 

 

2,017,273

 

 

 

 

 

 

 

 

 

 

Development stage stream interests:

 

 

 

 

 

 

 

 

 

Other

 

 

12,038

 

 

 —

 

 

12,038

 

 

 

 

 

 

 

 

 

 

Development stage royalty interests:

 

 

 

 

 

 

 

 

 

Cortez

 

 

59,803

 

 

 —

 

 

59,803

Other

 

 

74,329

 

 

 —

 

 

74,329

Total development stage royalty interests

 

 

134,132

 

 

 —

 

 

134,132

Total development stage stream and royalty interests

 

 

146,170

 

 

 —

 

 

146,170

 

 

 

 

 

 

 

 

 

 

Exploration stage royalty interests:

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

 

177,690

 

 

 —

 

 

177,690

Other

 

 

117,482

 

 

 —

 

 

117,482

Total exploration stage royalty interests

 

 

295,172

 

 

 —

 

 

295,172

Total stream and royalty interests, net

 

$

3,396,946

 

$

(938,331)

 

$

2,458,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2018 (Amounts in thousands):

    

Cost

    

Accumulated Depletion

    

Impairments

 

Net

Production stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

790,635

 

$

(152,833)

 

$

 —

 

$

637,802

Pueblo Viejo

 

 

610,404

 

 

(114,944)

 

 

 —

 

 

495,460

Andacollo

 

 

388,182

 

 

(59,851)

 

 

 —

 

 

328,331

Wassa and Prestea

 

 

146,475

 

 

(41,601)

 

 

 —

 

 

104,874

Rainy River

 

 

175,727

 

 

(4,028)

 

 

 —

 

 

171,699

Total production stage stream interests

 

 

2,111,423

 

 

(373,257)

 

 

 —

 

 

1,738,166

Total production stage stream and royalty interests

 

 

 

 

 

 

 

 

 

 

 

 

Production stage royalty interests:

 

 

 

 

 

 

 

 

 

 

 

 

Voisey's Bay

 

 

205,724

 

 

(86,933)

 

 

 —

 

 

118,791

Peñasquito

 

 

99,172

 

 

(38,426)

 

 

 —

 

 

60,746

Holt

 

 

34,612

 

 

(21,173)

 

 

 —

 

 

13,439

Cortez

 

 

20,878

 

 

(11,241)

 

 

 —

 

 

9,637

Other

 

 

483,795

 

 

(364,795)

 

 

 —

 

 

119,000

Total production stage royalty interests

 

 

844,181

 

 

(522,568)

 

 

 —

 

 

321,613

Total production stage stream and royalty interests

 

 

2,955,604

 

 

(895,825)

 

 

 —

 

 

2,059,779

Development stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

12,038

 

 

 —

 

 

 —

 

 

12,038

 

 

 

 

 

 

 

 

 

 

 

 

 

Development stage royalty interests:

 

 

 

 

 

 

 

 

 

 

 

 

Cortez

 

 

59,803

 

 

 —

 

 

 —

 

 

59,803

Other

 

 

74,610

 

 

 —

 

 

(284)

 

 

74,326

Total development stage royalty interests

 

 

134,413

 

 

 —

 

 

(284)

 

 

134,129

Total development stage stream and royalty interests

 

 

146,451

 

 

 —

 

 

(284)

 

 

146,167

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration stage royalty interests:

 

 

 

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

 

416,770

 

 

 —

 

 

(239,080)

 

 

177,690

Other

 

 

117,481

 

 

 —

 

 

 —

 

 

117,481

Total exploration stage royalty interests

 

 

534,251

 

 

 —

 

 

(239,080)

 

 

295,171

Total stream and royalty interests, net

 

$

3,636,306

 

$

(895,825)

 

$

(239,364)

 

$

2,501,117

 

v3.10.0.1
DEBT (Tables)
3 Months Ended
Sep. 30, 2018
DEBT  
Schedule of non-current debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018

 

As of June 30, 2018

 

   

Principal

   

Unamortized Discount

   

Debt Issuance Costs

   

Total

   

Principal

   

Unamortized Discount

   

Debt Issuance Costs

   

Total

 

 

 

(Amounts in thousands)

 

 

(Amounts in thousands)

Convertible notes due 2019

 

$

370,000

 

$

(9,512)

 

$

(976)

 

$

359,512

 

$

370,000

 

$

(12,764)

 

$

(1,316)

 

$

355,920

Revolving credit facility

 

 

 —

 

 

 —

 

 

(4,573)

 

 

(4,573)

 

 

 —

 

 

 —

 

 

(4,893)

 

 

(4,893)

Total debt

 

$

370,000

 

$

(9,512)

 

$

(5,549)

 

$

354,939

 

$

370,000

 

$

(12,764)

 

$

(6,209)

 

$

351,027

 

v3.10.0.1
REVENUE (Tables)
3 Months Ended
Sep. 30, 2018
REVENUE  
Summary of disaggregated revenue

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows:  

 

 

 

 

 

 

 

Three Months Ended

 

    

September 30, 2018

Stream revenue:

 

 

 

Gold

 

$

59,114

Silver

 

 

8,720

Copper

 

 

2,203

Total stream revenue

 

$

70,037

Royalty revenue:

 

 

 

Gold

 

$

18,554

Silver

 

 

1,352

Copper

 

 

3,615

Other

 

 

6,434

Total royalty revenue

 

$

29,955

Total revenue

 

$

99,992

 

Revenue attributable to our principal stream and royalty interests is disaggregated as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

    

 

Metal(s)

    

September 30, 2018

Stream revenue:

 

 

 

 

 

 

Andacollo

 

 

Gold

 

$

27,743

Pueblo Viejo

 

 

Gold & Silver

 

 

19,486

Mount Milligan

 

 

Gold & Copper

 

 

8,847

Wassa and Prestea

 

 

Gold

 

 

8,061

Other

 

 

Gold & Silver

 

 

5,900

Total stream revenue

 

 

 

 

$

70,037

Royalty revenue:

 

 

 

 

 

 

Peñasquito

 

 

Gold, Silver, Lead & Zinc

 

$

3,637

Cortez

 

 

Gold

 

 

603

Other

 

 

Various

 

 

25,715

Total royalty revenue

 

 

 

 

$

29,955

Total revenue

 

 

 

 

$

99,992

 

v3.10.0.1
STOCK-BASED COMPENSATION (Tables)
3 Months Ended
Sep. 30, 2018
STOCK-BASED COMPENSATION  
Schedule of recognized stock-based compensation expense

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 

 

September 30, 

 

    

2018

    

2017

 

 

 

(Amounts in thousands)

Stock options

 

$

120

 

$

91

Stock appreciation rights

 

 

766

 

 

488

Restricted stock

 

 

1,280

 

 

1,426

Performance stock

 

 

278

 

 

368

Total stock-based compensation expense

 

$

2,444

 

$

2,373

 

Schedule of stock-based compensation awards

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30, 

 

 

September 30, 

 

    

 

2018

    

 

2017

 

 

 

(Number of shares)

Stock options

 

 

6,430

 

 

6,858

Stock appreciation rights

 

 

69,360

 

 

71,262

Restricted stock

 

 

42,260

 

 

50,380

Performance stock (at maximum 200% attainment)

 

 

57,420

 

 

68,020

Total equity awards granted

 

 

175,470

 

 

196,520

 

Schedule of unrecognized compensation expense

As of September 30, 2018, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

 

 

 

 

 

 

 

 

 

 

Unrecognized

    

Weighted-

 

 

compensation

 

average vesting

 

 

expense

    

period (years)

Stock options

 

$

227

 

 

2.2

Stock appreciation rights

 

 

2,949

 

 

2.2

Restricted stock

 

 

6,307

 

 

3.4

Performance stock

 

 

1,736

 

 

2.1

 

v3.10.0.1
EARNINGS PER SHARE ("EPS") (Tables)
3 Months Ended
Sep. 30, 2018
EARNINGS PER SHARE ("EPS")  
Summary of the effects of dilutive securities on diluted EPS

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 

 

September 30, 

 

    

2018

    

2017

 

 

 

(in thousands, except per share data)

Net income available to Royal Gold common stockholders

 

$

15,008

 

$

28,631

Weighted-average shares for basic EPS

 

 

65,374,866

 

 

65,235,496

Effect of other dilutive securities

 

 

122,293

 

 

169,184

Weighted-average shares for diluted EPS

 

 

65,497,159

 

 

65,404,680

Basic earnings per share

 

$

0.23

 

$

0.44

Diluted earnings per share

 

$

0.23

 

$

0.44

 

v3.10.0.1
INCOME TAXES (Tables)
3 Months Ended
Sep. 30, 2018
INCOME TAXES  
Schedule of income tax expense and effective tax rate

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 

 

September 30, 

 

    

2018

    

2017

 

 

(Amounts in thousands, except rate)

Income tax expense

 

$

4,115

 

$

7,544

Effective tax rate

 

 

25.6%

 

 

22.1%

 

v3.10.0.1
SEGMENT INFORMATION (Tables)
3 Months Ended
Sep. 30, 2018
SEGMENT INFORMATION  
Schedule of geographical distribution of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018

 

As of June 30, 2018

 

 

 

 

 

 

 

 

Total stream

 

 

 

 

 

 

 

 

 

 

Total stream

 

 

Stream

 

Royalty

 

and royalty

 

Stream

 

Royalty

 

 

 

 

and royalty

 

  

interest

  

interest

  

interests, net

  

interest

  

interest

  

Impairments

  

interests, net

Canada

 

$

803,727

 

$

209,725

 

$

1,013,452

 

$

809,500

 

$

214,562

 

$

(284)

 

$

1,023,778

Dominican Republic

 

 

485,143

 

 

 —

 

 

485,143

 

 

495,460

 

 

 —

 

 

 —

 

 

495,460

Chile

 

 

317,434

 

 

214,226

 

 

531,660

 

 

328,331

 

 

453,306

 

 

(239,080)

 

 

542,557

Africa

 

 

99,764

 

 

495

 

 

100,259

 

 

104,874

 

 

502

 

 

 —

 

 

105,376

Mexico

 

 

 —

 

 

90,243

 

 

90,243

 

 

 —

 

 

93,277

 

 

 —

 

 

93,277

United States

 

 

 —

 

 

164,987

 

 

164,987

 

 

 —

 

 

165,543

 

 

 —

 

 

165,543

Australia

 

 

 —

 

 

33,622

 

 

33,622

 

 

 —

 

 

34,254

 

 

 —

 

 

34,254

Other

 

 

12,039

 

 

27,210

 

 

39,249

 

 

12,039

 

 

28,833

 

 

 —

 

 

40,872

Total

 

$

1,718,107

 

$

740,508

 

$

2,458,615

 

$

1,750,204

 

$

990,277

 

$

 (239,364)

 

$

2,501,117

 

Schedule of revenue, cost of sales and net revenue by reportable segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

Three Months Ended September 30, 2017

 

    

Revenue

    

Cost of sales

    

Net revenue

    

Revenue

    

Cost of sales

    

Net revenue

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chile

 

$

27,742

 

$

4,278

 

$

23,464

 

$

12,337

 

$

1,812

 

$

10,525

Dominican Republic

 

 

19,486

 

 

6,324

 

 

13,162

 

 

25,403

 

 

7,588

 

 

17,815

Canada

 

 

14,747

 

 

4,265

 

 

10,482

 

 

31,952

 

 

9,223

 

 

22,729

Africa

 

 

8,062

 

 

1,660

 

 

6,402

 

 

9,070

 

 

1,796

 

 

7,274

Total streams

 

$

70,037

 

$

16,527

 

$

53,510

 

$

78,762

 

$

20,419

 

$

58,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

10,181

 

$

 —

 

$

10,181

 

$

6,092

 

$

 —

 

$

6,092

Mexico

 

 

7,996

 

 

 —

 

 

7,996

 

 

10,897

 

 

 —

 

 

10,897

United States

 

 

6,056

 

 

 —

 

 

6,056

 

 

10,429

 

 

 —

 

 

10,429

Australia

 

 

3,060

 

 

 —

 

 

3,060

 

 

3,320

 

 

 —

 

 

3,320

Africa

 

 

492

 

 

 —

 

 

492

 

 

462

 

 

 —

 

 

462

Chile

 

 

 -

 

 

 —

 

 

 -

 

 

 —

 

 

 —

 

 

 -

Other

 

 

2,170

 

 

 —

 

 

2,170

 

 

2,514

 

 

 —

 

 

2,514

Total royalties

 

$

29,955

 

$

 —

 

$

29,955

 

$

33,714

 

$

 —

 

$

33,714

Total streams and royalties

 

$

99,992

 

$

16,527

 

$

83,465

 

$

112,476

 

$

20,419

 

$

92,057

 

v3.10.0.1
FAIR VALUE MEASUREMENTS (Tables)
3 Months Ended
Sep. 30, 2018
FAIR VALUE MEASUREMENTS  
Schedule of financial assets and liabilities measured at fair value on recurring basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2018

 

 

Carrying

 

Fair Value

 

    

Amount

    

Total

    

Level 1

    

Level 2

    

Level 3

Assets (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities(1)

 

$

17,771

 

$

17,771

 

$

17,771

 

$

 —

 

$

 —

Total assets

 

$

17,771

 

$

17,771

 

$

17,771

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt(2)

 

$

437,488

 

$

373,393

 

$

373,393

 

$

 —

 

$

 —

Total liabilities

 

$

437,488

 

$

373,393

 

$

373,393

 

$

 —

 

$

 —


(1)

Included in Other assets on the Company’s consolidated balance sheets.

(2)

Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within Additional paid-in capital on the Company’s consolidated balance sheets.

v3.10.0.1
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS (Details)
3 Months Ended
Sep. 30, 2018
item
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS  
Minimum number of metals produced from a mine 1
v3.10.0.1
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS - Recently Adopted Accounting Standards (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Jul. 01, 2018
Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Accumulated (losses) earnings $ (92,467)   $ (89,898)
Change in fair value of equity securities (1,468)    
Carrying value of equity securities $ 17,800   $ 19,200
Contango      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Investment shares owned (in shares) 682,556    
Rubicon      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Investment shares owned (in shares) 3,379,913    
ASU 2016-01      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Accumulated (losses) earnings   $ 1,200  
v3.10.0.1
STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Jun. 30, 2018
Cost $ 3,396,946 $ 3,636,306
Accumulated Depletion (938,331) (895,825)
Impairments   (239,364)
Net 2,458,615 2,501,117
Total production stage stream and royalty interests    
Cost 2,955,604 2,955,604
Accumulated Depletion (938,331) (895,825)
Net 2,017,273 2,059,779
Production stage stream interests    
Cost 2,111,423 2,111,423
Accumulated Depletion (405,353) (373,257)
Net 1,706,070 1,738,166
Production stage stream interests | Mount Milligan    
Cost 790,635 790,635
Accumulated Depletion (155,695) (152,833)
Net 634,940 637,802
Production stage stream interests | Pueblo Viejo    
Cost 610,404 610,404
Accumulated Depletion (125,261) (114,944)
Net 485,143 495,460
Production stage stream interests | Andacollo    
Cost 388,182 388,182
Accumulated Depletion (70,747) (59,851)
Net 317,435 328,331
Production stage stream interests | Wassa and Prestea    
Cost 146,475 146,475
Accumulated Depletion (46,711) (41,601)
Net 99,764 104,874
Production stage stream interests | Rainy River    
Cost 175,727 175,727
Accumulated Depletion (6,939) (4,028)
Net 168,788 171,699
Production stage royalty interests    
Cost 844,181 844,181
Accumulated Depletion (532,978) (522,568)
Net 311,203 321,613
Production stage royalty interests | Voisey's Bay    
Cost 205,724 205,724
Accumulated Depletion (90,006) (86,933)
Net 115,718 118,791
Production stage royalty interests | Penasquito    
Cost 99,172 99,172
Accumulated Depletion (39,054) (38,426)
Net 60,118 60,746
Production stage royalty interests | Holt    
Cost 34,612 34,612
Accumulated Depletion (21,569) (21,173)
Net 13,043 13,439
Production stage royalty interests | Cortez    
Cost 20,878 20,878
Accumulated Depletion (11,275) (11,241)
Net 9,603 9,637
Production stage royalty interests | Other    
Cost 483,795 483,795
Accumulated Depletion (371,074) (364,795)
Net 112,721 119,000
Total development stage stream and royalty interests    
Cost 146,170 146,451
Impairments   (284)
Net 146,170 146,167
Development stage stream interests | Other    
Cost 12,038 12,038
Net 12,038 12,038
Development stage royalty interests    
Cost 134,132 134,413
Impairments   (284)
Net 134,132 134,129
Development stage royalty interests | Cortez    
Cost 59,803 59,803
Net 59,803 59,803
Development stage royalty interests | Other    
Cost 74,329 74,610
Impairments   (284)
Net 74,329 74,326
Exploration stage royalty interests    
Cost 295,172 534,251
Impairments   (239,080)
Net 295,172 295,171
Exploration stage royalty interests | Pascua-Lama    
Cost 177,690 416,770
Impairments   (239,080)
Net 177,690 177,690
Exploration stage royalty interests | Other    
Cost 117,482 117,481
Net $ 117,482 $ 117,481
v3.10.0.1
STREAM AND ROYALTY INTERESTS, NET (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Royalty Revenue $ 99,992 $ 112,476
Royalty payments quarterly due period 45 days  
Royalty interest    
Royalty Revenue $ 29,955 $ 33,714
Voisey's Bay    
Net smelter return (NSR) (as a percent) 3.00%  
Gross metal value (as a percent) 50.00%  
Voisey's Bay | LNRLP    
Ownership percentage held 90.00%  
Voisey's Bay | LNRLP | Altius    
Ownership percentage held 10.00%  
Voisey's Bay | Royalty interest    
Royalty Revenue $ 4,900  
v3.10.0.1
DEBT (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Jun. 30, 2018
Jun. 30, 2012
Long-term debt disclosure        
Principal $ 370,000   $ 370,000  
Unamortized Discount (9,512)   (12,764)  
Debt Issuance Costs (5,549)   (6,209)  
Total debt 354,939   351,027  
2019 Notes        
Long-term debt disclosure        
Principal 370,000   370,000  
Unamortized Discount (9,512)   (12,764)  
Debt Issuance Costs (976)   (1,316)  
Total debt 359,512   355,920  
Principal amount of debt issued       $ 370,000
Interest rate on convertible senior notes (as a percent)       2.875%
Interest expense recognized 6,300 $ 6,000    
Credit Facility        
Long-term debt disclosure        
Debt Issuance Costs (4,573)   $ (4,893)  
Interest expense recognized 300 $ 1,800    
Maximum availability under the revolving credit facility 1,000,000      
Outstanding amount under credit facility 0      
Available under the revolving credit facility $ 1,000,000      
v3.10.0.1
REVENUE (Details)
3 Months Ended
Sep. 30, 2018
Minimum  
Average sale price determination period 10 days
Maximum  
Average sale price determination period 3 months
v3.10.0.1
REVENUE - Disaggregation (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2018
USD ($)
item
Sep. 30, 2017
USD ($)
Disaggregation of Revenue    
Number of revenue sources | item 2  
Royalty Revenue $ 99,992 $ 112,476
Stream interest    
Disaggregation of Revenue    
Royalty Revenue 70,037 78,762
Stream interest | Andacollo    
Disaggregation of Revenue    
Royalty Revenue 27,743  
Stream interest | Pueblo Viejo    
Disaggregation of Revenue    
Royalty Revenue 19,486  
Stream interest | Mount Milligan    
Disaggregation of Revenue    
Royalty Revenue 8,847  
Stream interest | Wassa and Prestea    
Disaggregation of Revenue    
Royalty Revenue 8,061  
Stream interest | Other    
Disaggregation of Revenue    
Royalty Revenue 5,900  
Stream interest | Gold    
Disaggregation of Revenue    
Royalty Revenue 59,114  
Stream interest | Silver    
Disaggregation of Revenue    
Royalty Revenue 8,720  
Stream interest | Copper    
Disaggregation of Revenue    
Royalty Revenue 2,203  
Royalty interest    
Disaggregation of Revenue    
Royalty Revenue 29,955 $ 33,714
Royalty interest | Penasquito    
Disaggregation of Revenue    
Royalty Revenue 3,637  
Royalty interest | Cortez    
Disaggregation of Revenue    
Royalty Revenue 603  
Royalty interest | Other    
Disaggregation of Revenue    
Royalty Revenue 25,715  
Royalty interest | Gold    
Disaggregation of Revenue    
Royalty Revenue 18,554  
Royalty interest | Silver    
Disaggregation of Revenue    
Royalty Revenue 1,352  
Royalty interest | Copper    
Disaggregation of Revenue    
Royalty Revenue 3,615  
Royalty interest | Other Metals    
Disaggregation of Revenue    
Royalty Revenue $ 6,434  
v3.10.0.1
REVENUE - Contract Receivables (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Jun. 30, 2018
Contract Receivables    
Royalty payments monthly due period 30 days  
Royalty payments quarterly due period 45 days  
Royalty receivables $ 25,106 $ 26,356
Minimum    
Contract Receivables    
Royalty payments quarterly due period 30 days  
Maximum    
Contract Receivables    
Royalty payments quarterly due period 60 days  
v3.10.0.1
REVENUE - Practical expedients (Details)
3 Months Ended
Sep. 30, 2018
Practical Expedients  
Obligation period practical expedient true
Transaction price allocated to remaining performance obligations true
v3.10.0.1
STOCK-BASED COMPENSATION (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Stock-based compensation    
Stock-based compensation expense $ 2,444 $ 2,373
Stock-based compensation awards granted (in shares) 175,470 196,520
Stock options    
Stock-based compensation    
Stock-based compensation expense $ 120 $ 91
Stock options granted (in shares) 6,430 6,858
Unrecognized compensation expense $ 227  
Weighted-average vesting period (years) 2 years 2 months 12 days  
Stock appreciation rights    
Stock-based compensation    
Stock-based compensation expense $ 766 $ 488
Other than options granted (in shares) 69,360 71,262
Unrecognized compensation expense $ 2,949  
Weighted-average vesting period (years) 2 years 2 months 12 days  
Restricted stock    
Stock-based compensation    
Stock-based compensation expense $ 1,280 $ 1,426
Other than options granted (in shares) 42,260 50,380
Unrecognized compensation expense $ 6,307  
Weighted-average vesting period (years) 3 years 4 months 24 days  
Performance stock    
Stock-based compensation    
Stock-based compensation expense $ 278 $ 368
Other than options granted (in shares) 57,420 68,020
Unrecognized compensation expense $ 1,736  
Weighted-average vesting period (years) 2 years 1 month 6 days  
Performance stock | Maximum    
Stock-based compensation    
Earn out basis if all goals are met (as a percent) 200.00% 200.00%
v3.10.0.1
EARNINGS PER SHARE ("EPS") (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
EARNINGS PER SHARE ("EPS")    
Net income available to Royal Gold common stockholders $ 15,008 $ 28,631
Weighted-average shares for basic EPS 65,374,866 65,235,496
Effect of other dilutive securities (in shares) 122,293 169,184
Weighted-average shares for diluted EPS 65,497,159 65,404,680
Basic earnings per share (in dollars per share) $ 0.23 $ 0.44
Diluted earnings per share (in dollars per share) 0.23 $ 0.44
Initial conversion price (in dollars per share) $ 102.43  
v3.10.0.1
INCOME TAXES (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2018
Sep. 30, 2017
INCOME TAXES    
Income tax expense $ 4,115 $ 7,544
Effective tax rate (as a percent) 25.60% 22.10%
v3.10.0.1
SEGMENT INFORMATION (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2018
USD ($)
segment
Sep. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Long Lived Assets and Pre-Tax Income by Geographical Information      
Number of reportable segments | segment 2    
Cost $ 3,396,946   $ 3,636,306
Impairments     (239,364)
Stream and royalty interests, net 2,458,615   2,501,117
Revenue 99,992 $ 112,476  
Cost of sales 16,527 20,419  
Net revenue 83,465 92,057  
Chile      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Impairments     (239,080)
Stream and royalty interests, net 531,660   542,557
Dominican Republic      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Stream and royalty interests, net 485,143   495,460
Canada      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Impairments     (284)
Stream and royalty interests, net 1,013,452   1,023,778
Africa      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Stream and royalty interests, net 100,259   105,376
Mexico      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Stream and royalty interests, net 90,243   93,277
United States      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Stream and royalty interests, net 164,987   165,543
Australia      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Stream and royalty interests, net 33,622   34,254
Other      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Stream and royalty interests, net 39,249   40,872
Stream interest      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 1,718,107   1,750,204
Revenue 70,037 78,762  
Cost of sales 16,527 20,419  
Net revenue 53,510 58,343  
Stream interest | Chile      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 317,434   328,331
Revenue 27,742 12,337  
Cost of sales 4,278 1,812  
Net revenue 23,464 10,525  
Stream interest | Dominican Republic      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 485,143   495,460
Revenue 19,486 25,403  
Cost of sales 6,324 7,588  
Net revenue 13,162 17,815  
Stream interest | Canada      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 803,727   809,500
Revenue 14,747 31,952  
Cost of sales 4,265 9,223  
Net revenue 10,482 22,729  
Stream interest | Africa      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 99,764   104,874
Revenue 8,062 9,070  
Cost of sales 1,660 1,796  
Net revenue 6,402 7,274  
Stream interest | Other      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 12,039   12,039
Royalty interest      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 740,508   990,277
Revenue 29,955 33,714  
Net revenue 29,955 33,714  
Royalty interest | Chile      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 214,226   453,306
Royalty interest | Canada      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 209,725   214,562
Revenue 10,181 6,092  
Net revenue 10,181 6,092  
Royalty interest | Africa      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 495   502
Revenue 492 462  
Net revenue 492 462  
Royalty interest | Mexico      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 90,243   93,277
Revenue 7,996 10,897  
Net revenue 7,996 10,897  
Royalty interest | United States      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 164,987   165,543
Revenue 6,056 10,429  
Net revenue 6,056 10,429  
Royalty interest | Australia      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 33,622   34,254
Revenue 3,060 3,320  
Net revenue 3,060 3,320  
Royalty interest | Other      
Long Lived Assets and Pre-Tax Income by Geographical Information      
Cost 27,210   $ 28,833
Revenue 2,170 2,514  
Net revenue $ 2,170 $ 2,514  
v3.10.0.1
FAIR VALUE MEASUREMENTS (Details) - Recurring basis
$ in Thousands
Sep. 30, 2018
USD ($)
Carrying Amount  
Assets:  
Marketable equity securities $ 17,771
Total assets 17,771
Liabilities:  
Debt 437,488
Total liabilities 437,488
Amount of equity component of convertible notes 77,000
Fair Value  
Assets:  
Marketable equity securities 17,771
Total assets 17,771
Liabilities:  
Debt 373,393
Total liabilities 373,393
Level 1  
Assets:  
Marketable equity securities 17,771
Total assets 17,771
Liabilities:  
Debt 373,393
Total liabilities $ 373,393
v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2018
USD ($)
Ilovica  
Commitments and Contingencies  
Scheduled payment amount $ 163,750
v3.10.0.1
SUBSEQUENT EVENTS (Details) - Contango - $ / shares
Oct. 03, 2018
Sep. 30, 2018
Subsequent events    
Investment shares owned (in shares)   682,556
Subsequent Event    
Subsequent events    
Shares purchased (in shares) 127,188  
Price per purchased share (in dollars per share) $ 26  
Investment shares owned (in shares) 809,744