ROYAL GOLD INC, 10-K filed on 8/11/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Jun. 30, 2016
Jul. 28, 2016
Dec. 31, 2015
Document and Entity Information
 
 
 
Entity Registrant Name
ROYAL GOLD INC 
 
 
Entity Central Index Key
0000085535 
 
 
Document Type
10-K 
 
 
Document Period End Date
Jun. 30, 2016 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--06-30 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 2,361,359,998 
Entity Shares Outstanding
 
65,269,476 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Jun. 30, 2015
ASSETS
 
 
Cash and equivalents
$ 116,633 
$ 742,849 
Royalty receivables
17,990 
37,681 
Income tax receivable
20,043 
6,422 
Stream inventory
9,489 
2,287 
Available-for-sale securities (Note 5)
 
6,273 
Prepaid expenses and other
614 
1,511 
Total current assets
164,769 
797,023 
Stream and royalty interests, net (Note 4)
2,848,087 
2,083,608 
Other assets
53,696 
36,560 
Total assets
3,066,552 
2,917,191 
LIABILITIES
 
 
Accounts payable
4,114 
4,911 
Dividends payable
15,012 
14,341 
Other current liabilities
3,554 
5,721 
Total current liabilities
22,680 
24,973 
Debt (Note 6)
600,685 
313,869 
Deferred tax liabilities
133,867 
146,603 
Uncertain tax positions (Note 11)
16,996 
15,130 
Other long-term liabilities
6,439 
689 
Total liabilities
780,667 
501,264 
Commitments and contingencies (Note 15)
   
   
EQUITY
 
 
Preferred stock, $.01 par value, authorized 10,000,000 shares authorized; and 0 shares issued
   
   
Common stock, $.01 par value, 100,000,000 shares authorized; and 65,093,950 and 65,033,547 shares outstanding, respectively
651 
650 
Additional paid-in capital
2,179,781 
2,170,643 
Accumulated other comprehensive loss
 
(3,292)
Accumulated earnings
48,584 
185,121 
Total Royal Gold stockholders' equity
2,229,016 
2,353,122 
Non-controlling interests
56,869 
62,805 
Total equity
2,285,885 
2,415,927 
Total liabilities and equity
$ 3,066,552 
$ 2,917,191 
Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2016
Jun. 30, 2015
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
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares outstanding
65,093,950 
65,033,547 
Consolidated Statements of Operations and Comprehensive (Loss) Income (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Consolidated Statements of Operations and Comprehensive ( Loss) Income
 
 
 
Revenue
$ 359,790 
$ 278,019 
$ 237,162 
Costs and expenses
 
 
 
Cost of sales
70,979 
33,450 
9,158 
General and administrative
31,720 
24,873 
21,186 
Production taxes
3,978 
5,446 
6,756 
Exploration costs
8,601 
2,194 
 
Depreciation, depletion and amortization
141,108 
93,486 
91,342 
Impairments of stream and royalty interests and royalty receivables (Note 4)
98,588 
31,335 
 
Total costs and expenses
354,974 
190,784 
128,442 
Operating income
4,816 
87,235 
108,720 
Gain (loss) on available-for-sale securities
2,340 
(183)
(4,499)
Interest and other income
3,711 
883 
2,050 
Interest and other expense
(32,625)
(25,691)
(23,344)
(Loss) income before income taxes
(21,758)
62,244 
82,927 
Income tax expense
(60,680)
(9,566)
(19,455)
Net (loss) income
(82,438)
52,678 
63,472 
Net loss (income) attributable to non-controlling interests
5,289 
(713)
(831)
Net (loss) income attributable to Royal Gold common stockholders
(77,149)
51,965 
62,641 
Net (loss) income
(82,438)
52,678 
63,472 
Adjustments to comprehensive (Loss) income, net of tax
 
 
 
Unrealized change in market value of available-for-sale securities
5,632 
(3,292)
(98)
Reclassification adjustment for (gains) losses included in net (loss) income
(2,340)
160 
4,510 
Comprehensive (loss) income
(79,146)
49,546 
67,884 
Comprehensive loss (income) attributable to non-controlling interests
5,289 
(713)
(831)
Comprehensive (loss) income attributable to Royal Gold stockholders
$ (73,857)
$ 48,833 
$ 67,053 
Net (loss) income per share available to Royal Gold common stockholders:
 
 
 
Basic (loss) earnings per share (in dollars per share)
$ (1.18)
$ 0.80 
$ 0.96 
Basic weighted average shares outstanding (in shares)
65,074,455 
65,007,861 
64,909,149 
Diluted (loss) earnings per share (in dollars per share)
$ (1.18)
$ 0.80 
$ 0.96 
Diluted weighted average shares outstanding (in shares)
65,074,455 
65,125,173 
65,026,256 
Cash dividends declared per common share (in dollars per share)
$ 0.91 
$ 0.87 
$ 0.83 
Consolidated Statements of Changes in Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Common Shares
Exchangeable Shares
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Earnings
Noncontrolling Interests
Total
Balance at Jun. 30, 2013
$ 642 
$ 29,365 
$ 2,142,173 
$ (4,572)
$ 181,279 
$ 21,749 
$ 2,370,636 
Balance (in shares) at Jun. 30, 2013
64,184,036 
667,229 
 
 
 
 
 
Issuance of common stock for:
 
 
 
 
 
 
 
Exchange of exchangeable shares
(12,647)
12,644 
 
 
 
 
Exchange of exchangeable shares (in shares)
287,372 
(287,372)
 
 
 
 
 
Non-controlling interest assignment
 
 
(11,463)
 
 
(2,250)
(13,713)
Stock-based compensation and related share issuances
 
4,296 
 
 
 
4,297 
Stock-based compensation and related share issuances (in shares)
106,993 
 
 
 
 
 
 
Net (loss) income
 
 
 
 
62,641 
831 
63,472 
Other comprehensive income (loss)
 
 
 
4,412 
 
 
4,412 
Distribution to non-controlling interests
 
 
 
 
 
(2,498)
(2,498)
Dividends declared
 
 
 
 
(54,049)
 
(54,049)
Balance at Jun. 30, 2014
646 
16,718 
2,147,650 
(160)
189,871 
17,832 
2,372,557 
Balance (in shares) at Jun. 30, 2014
64,578,401 
379,857 
 
 
 
 
 
Issuance of common stock for:
 
 
 
 
 
 
 
Exchange of exchangeable shares
(16,718)
16,715 
 
 
 
 
Exchange of exchangeable shares (in shares)
379,857 
(379,857)
 
 
 
 
 
Peak Gold joint venture
 
 
 
 
 
45,700 
45,700 
Stock-based compensation and related share issuances
 
6,278 
 
 
 
6,279 
Stock-based compensation and related share issuances (in shares)
75,289 
 
 
 
 
 
 
Net (loss) income
 
 
 
 
51,965 
713 
52,678 
Other comprehensive income (loss)
 
 
 
(3,132)
 
 
(3,132)
Distribution to non-controlling interests
 
 
 
 
 
(1,440)
(1,440)
Dividends declared
 
 
 
 
(56,715)
 
(56,715)
Balance at Jun. 30, 2015
650 
 
2,170,643 
(3,292)
185,121 
62,805 
2,415,927 
Balance (in shares) at Jun. 30, 2015
65,033,547 
 
 
 
 
 
 
Issuance of common stock for:
 
 
 
 
 
 
 
Stock-based compensation and related share issuances
 
9,138 
 
 
 
9,139 
Stock-based compensation and related share issuances (in shares)
60,403 
 
 
 
 
 
 
Net (loss) income
 
 
 
 
(77,149)
(5,289)
(82,438)
Other comprehensive income (loss)
 
 
 
3,292 
 
 
3,292 
Distribution to non-controlling interests
 
 
 
 
 
(647)
(647)
Dividends declared
 
 
 
 
(59,388)
 
(59,388)
Balance at Jun. 30, 2016
$ 651 
 
$ 2,179,781 
 
$ 48,584 
$ 56,869 
$ 2,285,885 
Balance (in shares) at Jun. 30, 2016
65,093,950 
 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:
 
 
 
Net (loss) income
$ (82,438)
$ 52,678 
$ 63,472 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
 
Depreciation, depletion and amortization
141,108 
93,486 
91,342 
Impairment of stream and royalty interests
98,588 
31,335 
 
Amortization of debt discount and issuance costs
12,985 
12,100 
11,332 
Non-cash employee stock compensation expense
10,039 
5,141 
2,580 
Tax benefit of stock-based compensation exercises
548 
(364)
(597)
(Gain) loss on available-for-sale securities
(2,340)
183 
4,499 
Deferred tax benefit
(4,983)
(27,651)
(8,166)
Other
(390)
(46)
(259)
Changes in assets and liabilities:
 
 
 
Royalty receivables
17,221 
5,977 
3,731 
Stream inventory
(7,203)
1,110 
(3,396)
Income taxes receivable
(14,177)
15,525 
(6,183)
Prepaid expenses and other assets
(153)
2,527 
11,417 
Accounts payable
(849)
150 
1,105 
Foreign withholding taxes payable
(199)
(2,000)
(13,319)
Uncertain tax positions
1,867 
1,405 
(7,441)
Other liabilities
235 
543 
(2,915)
Net cash provided by operating activities
169,859 
192,099 
147,202 
Cash flows from investing activities:
 
 
 
Acquisition of stream and royalty interests
(1,346,109)
(60,429)
(80,019)
Andacollo royalty termination
345,000 
 
 
Golden Star term loan
(20,000)
 
 
Proceeds from sale of available-for-sale securities
11,905 
 
 
Tulsequah stream termination
 
10,000 
 
Other
(309)
(773)
(4,782)
Net cash used in investing activities
(1,009,513)
(51,202)
(84,801)
Cash flows from financing activities:
 
 
 
Borrowings from revolving credit facility
350,000 
 
 
Repayment of revolving credit facility
(75,000)
 
 
Net (payments) proceeds from issuance of common stock
(353)
775 
1,120 
Common stock dividends
(58,720)
(56,054)
(53,380)
Purchase of additional royalty interest from non-controlling interest
 
 
(11,522)
Debt issuance costs
(1,111)
(864)
(1,284)
Distribution to non-controlling interests
(830)
(1,805)
(2,431)
Tax (benefit) expense of stock-based compensation exercises
(548)
364 
597 
Net cash provided by (used in) financing activities
213,438 
(57,584)
(66,900)
Net (decrease) increase in cash and equivalents
(626,216)
83,313 
(4,499)
Cash and equivalents at beginning of period
742,849 
659,536 
664,035 
Cash and equivalents at end of period
$ 116,633 
$ 742,849 
$ 659,536 
THE COMPANY
THE COMPANY

1. THE COMPANY

        Royal Gold, Inc. ("Royal Gold", the "Company", "we", "us", or "our"), together with its subsidiaries, is engaged in the business of acquiring and managing precious me  tals royalties, metal streams, and similar interests. Royalties are non-operating interests in mining projects that provide the right to revenue or metals produced from the project after deducting specified costs, if any. 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS

Summary of Significant Accounting Policies

Use of Estimates

        The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.

        Our most critical accounting estimates relate to our assumptions regarding future gold, silver, copper, nickel and other metal prices and the estimates of reserves, production and recoveries of third-party mine operators. We rely on reserve estimates reported by the operators on the properties in which we have stream and royalty interests. These estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets. These estimates and assumptions also affect the rate at which we recognize revenue or charge depreciation, depletion and amortization to earnings. On an ongoing basis, management evaluates these estimates and assumptions; however, actual amounts could differ from these estimates and assumptions. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known.

Basis of Consolidation

        The consolidated financial statements include the accounts of Royal Gold, Inc., its wholly-owned subsidiaries and an entity over which control is achieved through means other than voting right (see Note 3). The Company follows the Accounting Standards Codification ("ASC") guidance for identification and reporting for entities over which control is achieved through means other than voting rights. All intercompany accounts, transactions, income and expenses, and profits or losses have been eliminated on consolidation.

Cash and Equivalents

        Cash and equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Cash and equivalents were primarily held in cash deposit accounts as of June 30, 2016 and 2015.

Stream and Royalty Interests

        Stream and royalty interests include acquired stream and royalty interests in production, development and exploration stage properties. The costs of acquired stream and royalty interests are capitalized as tangible assets as such interests do not meet the definition of a financial asset under the Accounting Standards Codification ("ASC") guidance.

        Acquisition costs of production stage stream and royalty interests are depleted using the units of production method over the life of the mineral property (as sales occur under stream interests or royalty payments are recognized), which are estimated using proven and probable reserves as provided by the operator. Acquisition costs of stream and royalty interests on development stage mineral properties, which are not yet in production, are not amortized until the property begins production. Acquisition costs of stream or royalty interests on exploration stage mineral properties, where there are no proven and probable reserves, are not amortized. At such time as the associated exploration stage mineral interests are converted to proven and probable reserves, the cost basis is amortized over the remaining life of the mineral property, using proven and probable reserves. The carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the production will not occur in the future. Exploration costs are expensed when incurred.

Available-for-Sale Securities

        Investments in securities that management does not have the intent to sell in the near term and that have readily determinable fair values are classified as available-for-sale securities. Unrealized gains and losses on these investments are recorded in accumulated other comprehensive (loss) income as a separate component of stockholders' equity, except that declines in market value judged to be other than temporary are recognized in determining net income. When investments are sold, the realized gains and losses on these investments, determined using the specific identification method, are included in determining net income.

        The Company's policy for determining whether declines in fair value of available-for-sale securities are other than temporary includes a quarterly analysis of the investments and a review by management of all investments for which the cost exceeds the fair value. Any temporary declines in fair value are recorded as a charge to other comprehensive (loss) income. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and management's ability and intent to hold the securities until fair value recovers. If such impairment is determined by the Company to be other-than-temporary, the investment's cost basis is written down to fair value and recorded in net income during the period the Company determines such impairment to be other-than-temporary. The new cost basis is not changed for subsequent recoveries in fair value. Refer to Note 5 for further discussion on our available-for-sale securities.

Asset Impairment

        We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable. The recoverability of the carrying value of stream and royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each stream and royalty interest using estimates of proven and probable reserves and other relevant information received from the operators. We evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold, silver, copper, nickel and other metals, and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur or may be reduced in the future, thus potentially affecting the future recoverability of our stream or royalty interests. Impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value, which is generally calculated using estimated future discounted cash flows.

        Estimates of gold, silver, copper, nickel and other metal prices, operators' estimates of proven and probable reserves or mineralized material related to our stream or royalty properties, and operators' estimates of operating and capital costs are subject to certain risks and uncertainties which may affect the recoverability of our investment in these stream and royalty interests in mineral properties. It is possible that changes could occur to these estimates, which could adversely affect the net cash flows expected to be generated from these stream and royalty interests. Refer to Note 4 for discussion and the results of our impairment assessments for the fiscal years ended June 30, 2016 and 2015.

Revenue

        Revenue is recognized pursuant to guidance in ASC 605 and based upon amounts contractually due pursuant to the underlying streaming or royalty agreement. Specifically, revenue is recognized in accordance with the terms of the underlying stream or royalty agreements subject to (i) the pervasive evidence of the existence of the arrangements; (ii) the risks and rewards having been transferred; (iii) the stream or royalty being fixed or determinable; and (iv) the collectability being reasonably assured. For our streaming agreements, we recognize revenue when the metal is sold.

Metal Sales

        Gold and silver received under our metal streaming agreements is taken into inventory, and this is sold primarily using average spot rate gold and silver forward contracts. The sales price for our gold and silver sold in average spot rate forward contracts is determined by the average daily gold or silver spot prices under the term of the contract, typically over a consecutive number of trading days between 10 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. Revenue from gold and silver sales is recognized on the date of the settlement, which is also the date that title to the gold or silver passes to the purchaser.

Cost of Sales

        Cost of sales is specific to our stream agreements and is the result of our purchase of gold and silver for a cash payment. The cash payment at Mount Milligan is the lesser of $435 per ounce or the prevailing market price of gold when purchased, while the cash payment for our other streams is a set contractual percentage of the gold or silver spot price near the date of metal delivery.

Production taxes

        Certain royalty payments are subject to production taxes (or mining proceeds taxes), which are recognized at the time of revenue recognition. Production taxes are not income taxes and are included within the costs and expenses section in the Company's consolidated statements of operations and comprehensive (loss) income.

Exploration Costs

        Exploration costs are specific to the Peak Gold LLC ("Peak Gold") joint venture for exploration and advancement of the Tetlin gold project, as discussed further in Note 3. Exploration costs associated with Peak Gold for the exploration and advancement of the Tetlin gold project are expensed when incurred.

Stock-Based Compensation

        The Company accounts for stock-based compensation in accordance with the guidance of ASC 718. The Company recognizes all share-based payments to employees, including grants of employee stock options, stock-settled stock appreciation rights ("SSARs"), restricted stock and performance shares, in its financial statements based upon their fair values.

Reportable Segments and Geographical 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) as of June 30, 2016 and 2015 are geographically distributed as shown in the following table:

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

As of June 30, 2015

 

 

 

Stream
interest

 

Royalty
interest

 

Total stream
and royalty
interests, net

 

Stream
interest

 

Royalty
interest

 

Total stream
and royalty
interests, net

 

Canada

 

$

809,692 

 

$

228,566 

 

$

1,038,258 

 

$

823,091 

 

$

251,688 

 

$

1,074,779 

 

Chile

 

 

369,896 

 

 

453,629 

 

 

823,525 

 

 

 

 

653,019 

 

 

653,019 

 

Dominican Republic

 

 

588,502 

 

 

 

 

588,502 

 

 

 

 

 

 

 

Mexico

 

 

 

 

118,899 

 

 

118,899 

 

 

 

 

131,742 

 

 

131,742 

 

United States

 

 

 

 

102,385 

 

 

102,385 

 

 

 

 

110,286 

 

 

110,286 

 

Africa

 

 

88,596 

 

 

697 

 

 

89,293 

 

 

 

 

12,760 

 

 

12,760 

 

Australia

 

 

 

 

42,547 

 

 

42,547 

 

 

 

 

50,119 

 

 

50,119 

 

Other

 

 

12,029 

 

 

32,649 

 

 

44,678 

 

 

8,183 

 

 

42,720 

 

 

50,903 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

$

1,868,715 

 

$

979,372 

 

$

2,848,087 

 

$

831,274 

 

$

1,252,334 

 

$

2,083,608 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The Company's revenue, cost of sales and net revenue by reportable segment for our fiscal year's ended June 30, 2016, 2015 and 2014 is geographically distributed as show in the following table:

                                                                                                                                                                                    

 

 

Fiscal Year Ended June 30, 2016

 

Fiscal Year Ended June 30, 2015

 

 

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

125,755 

 

$

47,417 

 

$

78,338 

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

Chile

 

 

49,243 

 

 

7,280 

 

 

41,963 

 

 

 

 

 

 

 

Dominican Republic

 

 

39,684 

 

 

11,625 

 

 

28,059 

 

 

 

 

 

 

 

Africa

 

 

23,346 

 

 

4,657 

 

 

18,689 

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total streams

 

$

238,028 

 

$

70,979 

 

$

167,049 

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

Royalties:

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Mexico

 

$

35,267 

 

$

 

$

35,267 

 

$

43,008 

 

$

 

$

43,008 

 

United States

 

 

35,483 

 

 

 

 

35,483 

 

 

42,675 

 

 

 

 

42,675 

 

Canada

 

 

30,676 

 

 

 

 

30,676 

 

 

37,496 

 

 

 

 

37,496 

 

Chile

 

 

84 

 

 

 

 

84 

 

 

39,508 

 

 

 

 

39,508 

 

Australia

 

 

10,462 

 

 

 

 

10,462 

 

 

8,494 

 

 

 

 

8,494 

 

Africa

 

 

1,868 

 

 

 

 

1,868 

 

 

3,075 

 

 

 

 

3,075 

 

Other

 

 

7,922 

 

 

 

 

7,922 

 

 

9,659 

 

 

 

 

9,659 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties

 

$

121,762 

 

$

 

$

121,762 

 

$

183,915 

 

$

 

$

183,915 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties and streams

 

$

359,790 

 

$

70,979 

 

$

288,811 

 

$

278,019 

 

$

33,450 

 

$

244,569 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Year Ended June 30, 2015

 

Fiscal Year Ended June 30, 2014

 

 

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

$

27,209 

 

$

9,158 

 

$

18,051 

 

Royalties:

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Mexico

 

$

43,008 

 

$

 

$

43,008 

 

$

43,093 

 

$

 

$

43,093 

 

United States

 

 

42,675 

 

 

 

 

42,675 

 

 

34,671 

 

 

 

 

34,671 

 

Chile

 

 

39,508 

 

 

 

 

39,508 

 

 

50,733 

 

 

 

 

50,733 

 

Canada

 

 

37,496 

 

 

 

 

37,496 

 

 

54,277 

 

 

 

 

54,277 

 

Australia

 

 

8,494 

 

 

 

 

8,494 

 

 

8,353 

 

 

 

 

8,353 

 

Africa

 

 

3,075 

 

 

 

 

3,075 

 

 

7,943 

 

 

 

 

7,943 

 

Other

 

 

9,659 

 

 

 

 

9,659 

 

 

10,883 

 

 

 

 

10,883 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties

 

$

183,915 

 

$

 

$

183,915 

 

$

209,953 

 

$

 

$

209,953 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties and streams

 

$

278,019 

 

$

33,450 

 

$

244,569 

 

$

237,162 

 

$

9,158 

 

$

228,004 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Income Taxes

        The Company accounts for income taxes in accordance with the guidance of ASC 740. The Company's annual tax rate is based on income, statutory tax rates in effect and tax planning opportunities available to us in the various jurisdictions in which the Company operates. Significant judgment is required in determining the annual tax expense, current tax assets and liabilities, deferred tax assets and liabilities, and our future taxable income, both as a whole and in various tax jurisdictions, for purposes of assessing our ability to realize future benefit from our deferred tax assets. Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year's liability by taxing authorities.

        The Company's deferred income taxes reflect the impact of temporary differences between the reported amounts of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations. In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies in each tax jurisdiction. A valuation allowance may be established to reduce our deferred tax assets to the amount that is considered more likely than not to be realized through the generation of future taxable income and other tax planning strategies.

        The Company has asserted the indefinite reinvestment of certain foreign subsidiary earnings as determined by management's judgment about and intentions concerning the future operations of the Company. As a result, the Company does not record a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in foreign corporations to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. Refer to Note 11 for further discussion on our assertion.

        The Company's operations may involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress of a tax audit; however, due to the complexity of some of these uncertainties, the ultimate resolution could result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period which they are determined. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Comprehensive (Loss) Income

        In addition to net income, comprehensive (loss) income includes changes in equity during a period associated with cumulative unrealized changes in the fair value of marketable securities held for sale, net of tax effects.

Earnings per Share

        Basic earnings per share is computed by dividing net income available to Royal Gold common stockholders by the weighted average number of outstanding common shares for the period, considering the effect of participating securities, and include the outstanding exchangeable shares. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts that may require issuance of common shares were converted. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted average number of common shares outstanding, including outstanding exchangeable shares, during each fiscal year.

Reclassification

        Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. Reclassified amounts were not material to the financial statements.

Recently Adopted Accounting Standards

        In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") guidance related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the updated guidance. Early adoption is permitted and the Company elected to early adopt this guidance as of June 30, 2016, and the effects of the updated guidance were applied retrospectively to our fiscal year ended June 30, 2015. The effect of the change in accounting principle as of June 30, 2016 and 2015, was that $7.4 million and $8.2 million, respectively, of our debt issuance costs have been reclassified from Other assets to Debt on the Company's consolidated financial statements.

        In February 2015, ASU guidance was issued related to consolidations. This update affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update will change how companies determine whether limited partnerships or similar entities are variable interest entities ("VIEs"). The Company adopted the updated guidance as of June 30, 2016. The effects of the adoption had no impact on the Company's consolidated financial statements.

        In November 2015, the FASB issued guidance on the presentation of deferred income taxes that requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as non-current on the balance sheet. As a result, each tax jurisdiction will now only have one net non-current deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The Company adopted the updated guidance as of June 30, 2016, on a prospective basis and it only resulted in a change of presentation of the deferred taxes on our consolidated balances sheet. The change in accounting principle was not retrospectively applied to prior period balances.

Recently Issued Accounting Standards

        In March 2016, the FASB issued ASU guidance to simplify several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation with actual forfeitures as they occur, as well as certain classifications on the statement of cash flows. The new guidance is effective for the Company's fiscal year beginning July 1, 2017. Early adoption is permitted, as long as all of the amendments are adopted in the same period. We are currently evaluating the impact this guidance will have on our consolidated financial statements and footnote disclosures.

        In February 2016, the FASB issued ASU guidance which changes the accounting for leases. 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 impact, if any, this guidance will have on our consolidated financial statements and footnote disclosures.

        In January 2016, the FASB issued ASU guidance on the recognition and measurement of financial instruments. The amended guidance requires, among other things that equity securities classified as available-for-sale be measured at fair value with changes in fair value recognized in net income rather than other comprehensive (loss) income as required under previous guidance. The new guidance is effective for the Company's fiscal year beginning July 1, 2018. We are currently evaluating the impact this guidance will have on our consolidated financial statements.

        In May 2014, the FASB issued ASU guidance for the recognition of revenue from contracts with customers. Subsequent to the issuance of this ASU guidance, the FASB issued additional related ASU's on revenue recognition. The effective date and transition requirements for all of these ASU's are the same. Specifically, the guidance under these ASU's is to be applied using a full retrospective method or a modified retrospective method, as described in the guidance, and is effective for the Company's fiscal year beginning July 1, 2018. The Company is currently evaluating the level of effort needed to implement the guidance, evaluating the provisions of each new guidance, and assessing their impact on the Company's consolidated financial statements and disclosures, as well as which transitions method we intend to use.

ACQUISITIONS
ACQUISITIONS

3. ACQUISITIONS

Acquisition of Gold and Silver Stream at Pueblo Viejo

        On September 29, 2015, RGLD Gold AG ("RGLD Gold") closed its Precious Metals Purchase and Sale Agreement with Barrick Gold Corporation ("Barrick") and its wholly-owned subsidiary, BGC Holdings Ltd. ("BGC") for a percentage of the gold and silver production attributable to Barrick's 60% interest in the Pueblo Viejo mine located in the Dominican Republic. Pursuant to the Precious Metals Purchase and Sale Agreement, RGLD Gold made a single advance payment of $610 million to BGC as part of the closing. The transaction is effective as of July 1, 2015 for the gold stream and January 1, 2016 for the silver stream.

        BGC will deliver gold to RGLD Gold in amounts equal to 7.50% of Barrick's interest in the gold produced at the Pueblo Viejo mine until 990,000 ounces of gold have been delivered, and 3.75% of Barrick's interest in gold produced thereafter. RGLD Gold will pay BGC 30% of the spot price per ounce of gold delivered until 550,000 ounces of gold have been delivered, and 60% of the spot price per ounce delivered thereafter. RGLD Gold began receiving gold deliveries during the quarter ended December 31, 2015.

        BGC will deliver silver to RGLD Gold in amounts equal to 75% of Barrick's interest in the silver produced at the Pueblo Viejo mine, subject to a minimum silver recovery of 70%, until 50 million ounces of silver have been delivered, and 37.50% of Barrick's interest in silver produced thereafter. RGLD Gold will pay BGC 30% of the spot price per ounce of silver delivered until 23.10 million ounces of silver have been delivered, and 60% of the spot price per ounce of silver delivered thereafter. RGLD Gold began receiving silver deliveries during the quarter ended March 31, 2016.

        The Pueblo Viejo gold and silver stream acquisition has been accounted for as an asset acquisition. The advance payment of $610 million, plus direct transaction costs, have been recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets. The acquisition cost of the Pueblo Viejo gold and silver stream interest will be depleted using the units of production method, which is estimated using aggregate proven and probable reserves, as provided by Barrick.

Acquisition and Amendment of Gold Stream on Wassa and Prestea

        On July 28, 2015, RGLD Gold, a wholly-owned subsidiary of the Company, closed a $130 million gold stream transaction with a wholly-owned subsidiary of Golden Star Resources Ltd. (together "Golden Star"). On December 30, 2015, the parties executed an amendment providing for an additional $15 million investment (for a total investment of $145 million) by RGLD Gold.

        Also on July 28, 2015 and separate from the stream transaction by RGLD Gold, the Company also funded a $20 million, 4-year term loan to Golden Star and received warrants to purchase 5 million shares of Golden Star common stock, with a grant date fair value of approximately $0.8 million. Interest under the term loan is due quarterly at a rate equal to 62.5% of the average daily gold price for the relevant quarter divided by 10,000, but not to exceed 11.5%. The warrants have a term of four years and an exercise price of $0.27.

        Funds will be used for ongoing development of Golden Star's Wassa and Prestea mines in Ghana. As of June 30, 2016, RGLD Gold has advanced $95 million. On July 1, 2016, RGLD Gold made an advance payment of $20 million and expects to advance the balance in two quarterly payments as follows: (i) $20 million on October 1, 2016, and (ii) $10 million on January 1, 2017; however this schedule may be modified based on the actual spending on the Wassa and Prestea underground projects and these funds are subject to satisfaction of certain conditions.

        In return, Golden Star will deliver to RGLD Gold 9.25% of gold produced from the Wassa and Prestea mines, until the earlier of (i) December 31, 2017 or (ii) the date at which the Wassa and Prestea underground projects achieve commercial production. At that point, the stream percentage will increase to 10.5% of gold produced from the Wassa and Prestea projects until an aggregate 240,000 ounces have been delivered. Once the applicable delivery threshold is met, the stream percentage will decrease to 5.5% for the remaining life of the mines.

        RGLD Gold will pay Golden Star a cash price equal to 20% of the spot price for each ounce of gold delivered at the time of delivery until the applicable delivery threshold is met, and 30% of the spot price for each ounce of gold delivered thereafter.

        The Wassa and Prestea gold stream acquisition has been accounted for as an asset acquisition. The $95 million paid as part of the aggregate advance payments of $145 million, plus direct acquisition costs, have been recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets. Future advance payments, plus any direct acquisition costs incurred, will be recorded as a production stage interest accordingly. The acquisition cost of the Wassa and Prestea gold stream interest will be depleted using the units of production method, which is estimated using aggregate proven and probable reserves, as provided by Golden Star.

        The $20 million four-year term loan and the received warrants have been recorded within Other assets on our consolidated balance sheets. The warrants have been classified as a financial asset instrument and are recorded at fair value at each reporting period using the Black-Scholes model. Any change in the fair value of the warrants at subsequent reporting periods will be recorded within Interest and other income on our consolidated statements of operations and comprehensive (loss) income.

Acquisition of Gold and Silver Stream at Rainy River

        On July 20, 2015, RGLD Gold entered into a $175 million Purchase and Sale Agreement with New Gold, Inc. ("New Gold"), for a percentage of the gold and silver production from the Rainy River Project located in Ontario, Canada ("Rainy River"). Pursuant to the Purchase and Sale Agreement, RGLD Gold made an advance payment to New Gold, consisting of $100 million on July 20, 2015, and will make an additional advance payment of $75 million once capital spending at Rainy River is 60% complete (currently expected during the second half of calendar 2016). Under the Purchase and Sale Agreement, New Gold will deliver to RGLD Gold 6.50% of the gold produced at Rainy River until 230,000 gold ounces have been delivered, and 3.25% thereafter. New Gold also will deliver to RGLD Gold 60% of the silver produced at Rainy River until 3.10 million silver ounces have been delivered, and 30% thereafter. RGLD Gold will pay New Gold 25% of the spot price per ounce of gold and silver at the time of delivery.

        The Rainy River gold and silver stream acquisition has been accounted for as an asset acquisition. The $100 million paid as part of the aggregate advance payments of $175 million, plus direct transaction costs, have been recorded as a development stage stream interest within Stream and royalty interests, net on our consolidated balance sheets.

Acquisition of Gold Stream at Carmen de Andacollo

        On July 9, 2015, RGLD Gold entered into a Long Term Offtake Agreement (the "Andacollo Stream Agreement") with Compañía Minera Teck Carmen de Andacollo ("CMCA"), a 90% owned subsidiary of Teck Resources Limited ("Teck"). Pursuant to the Andacollo Stream Agreement, CMCA will sell and deliver to RGLD Gold 100% of payable gold from the Carmen de Andacollo ("Andacollo") copper-gold mine located in Chile until 900,000 ounces have been delivered, and 50% thereafter, subject to a fixed payable percentage of 89%. RGLD Gold made a $525 million advance payment in cash to CMCA upon entry into the Andacollo Stream Agreement, and RGLD Gold will also pay CMCA 15% of the monthly average gold price for the month preceding the delivery date for all gold purchased under the Andacollo Stream Agreement.

        The transaction encompasses certain of CMCA's presently owned mining concessions on the Andacollo mine, as well as any other mining concessions presently owned or acquired by CMCA or any of its affiliates within an approximate 1.5 kilometer area of interest, and certain other mining concessions that CMCA or its affiliates may acquire. The Andacollo Stream Agreement was effective July 1, 2015, and applies to all final settlements of gold received on or after that date. Deliveries to RGLD Gold will be made monthly, and RGLD Gold began receiving gold deliveries during the quarter ended September 30, 2015.

        The Company accounted for the acquisition of the stream interest at Andacollo as an asset acquisition. For US GAAP financial reporting purposes on the date of acquisition, the Company's new consolidated carrying value in its stream interest at Andacollo was approximately $388.2 million, which included direct acquisition costs, and has been recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets. The Andacollo gold stream interest will be depleted using the units of production method, which is estimated using aggregate proven and probable reserves, as provided by Teck.

Termination of Royalty Interest at Carmen de Andacollo

        On July 9, 2015, Royal Gold Chile Limitada ("RG Chile"), a wholly owned subsidiary of the Company, entered into a Royalty Termination Agreement with CMCA. The Royalty Termination Agreement terminated an amended Royalty Agreement originally dated January 12, 2010, which provided RG Chile with a royalty equivalent to 75% of the gold produced from the sulfide portion of the Andacollo mine until 910,000 payable ounces have been produced, and 50% of the gold produced thereafter. CMCA paid total consideration of $345 million to RG Chile in connection with the Royalty Termination Agreement. The net carrying value of the Andacollo royalty on the date of termination was approximately $207.5 million. The royalty termination transaction was taxable in Chile and the United States.

Acquisition of Gold Stream on Euromax's Ilovica Project

        On October 20, 2014, RGLD Gold, a wholly owned subsidiary of the Company, entered into a $175.0 million gold stream transaction with Euromax Resources Ltd ("Euromax") that will finance a definitive feasibility study, permitting work, early stage engineering and a significant portion of the construction at Euromax's Ilovica gold-copper project located in southeast Macedonia. RGLD Gold will make two advance deposit payments to Euromax totaling $15.0 million, which are to be used for completion of the definitive feasibility study and permitting of the project, followed by payments aggregating $160 million towards project construction, in each case subject to certain conditions. Payment of the first $7.5 million deposit was completed in March 2015. RGLD Gold advanced $3.75 million of the second $7.5 million deposit in November 2015 and a decision to proceed with the remaining portion of the second deposit ($3.75 million) and the construction payments is conditioned upon, among other things, its satisfaction with the progress of definitive feasibility study and environmental evaluations, demonstrated project viability, and, in the case of the construction payments, sufficient project financing and permits to construct and operate the mine. The construction payments would be paid pro-rata with the balance of the project funding. In exchange, Euromax will deliver physical gold equal to 25% of gold produced from the Ilovica project until 525,000 ounces have been delivered, and 12.5% thereafter (in each case subject to adjustment). RGLD Gold's purchase price per ounce will be 25% of the spot price at the time of delivery.

        The Ilovica gold stream acquisition has been accounted for as an asset acquisition. The $11.25 million paid as part of the aggregate pre-production commitment of $175 million, plus direct transaction costs, have been recorded as a development stage stream interest within Stream and royalty interests, net on our consolidated balance sheets.

Tetlin Royalty Acquisitions and Peak Gold Joint Venture

        On September 30, 2014, Royal Gold acquired a 2.0% net smelter return ("NSR") royalty and a 3.0% NSR royalty held by private parties over areas comprising the Tetlin gold project located near Tok, Alaska, for total consideration of $6.0 million. As discussed below, the Tetlin gold project is now held by Peak Gold LLC ("Peak Gold"), a joint venture between subsidiaries of Royal Gold and Contango ORE Inc.

        The acquisition of the Tetlin royalties has been accounted for as an asset acquisition. The total purchase price of $6.0 million, plus direct transaction costs, has been recorded as an exploration stage royalty interest within Stream and royalty interests, net on our consolidated balance sheets.

        On January 8, 2015, Royal Gold, through its wholly-owned subsidiary, Royal Alaska, LLC ("Royal Alaska"), and Contango ORE, Inc., through its wholly-owned subsidiary CORE Alaska, LLC (together, "Contango"), entered into a limited liability company agreement for Peak Gold, a joint venture for exploration and advancement of the Tetlin gold project located near Tok, Alaska (the "Tetlin Project"). Contango contributed all of its assets relating to the Tetlin Project to Peak Gold, including a mining lease and certain state of Alaska mining claims. Royal Alaska contributed $5.0 million in cash to Peak Gold. Contango will initially hold a 100% membership interest in Peak Gold. Royal Alaska has the right to obtain up to 40% of the membership interest in Peak Gold by making contributions of up to $30.0 million (including Royal Alaska's initial $5.0 million contribution) in cash to Peak Gold by October 31, 2018. As of June 30, 2016, Royal Alaska has contributed $5.7 million and has obtained an 11% membership interest in Peak Gold.

        Royal Alaska will act as the manager of Peak Gold. As manager of Peak Gold, Royal Alaska is responsible for managing, directing and controlling the overall operations during the earn-in period, and thereafter, provided Royal Alaska holds at least a 40% interest. Royal Alaska will act as manager unless and until it is unanimously removed or resigns that position in the manner provided in Peak Gold's limited liability company agreement.

        The Company follows the ASC guidance for identification and reporting of entities for which control is achieved through means other than voting rights. The guidance defines such entities as VIEs. The Company has identified Peak Gold as a VIE, with Royal Alaska as the primary beneficiary, due to the legal structure and certain related factors of the limited liability company agreement for Peak Gold. The Company determined that Peak Gold should be fully consolidated at fair value initially. The fair value of the Company's non-controlling interest is $45.7 million and is based on the underlying value of the mineral property assigned to Peak Gold, which is recorded as an exploration stage property within Stream and royalty interests, net on our consolidated balance sheets.

STREAM AND ROYALTY INTERESTS, NET
STREAM AND ROYALTY INTERESTS, NET

4. STREAM AND ROYALTY INTERESTS, NET

        The following summarizes the Company's stream and royalty interests as of June 30, 2016 and 2015:

                                                                                                                                                                                    

As of June 30, 2016 (Amounts in thousands):

 

Cost

 

Accumulated
Depletion

 

Impairments

 

Net

 

Production stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

783,046

 

$

(74,060

)

$

 

$

708,986

 

Pueblo Viejo

 

 

610,404

 

 

(21,902

)

 

 

 

588,502

 

Andacollo

 

 

388,182

 

 

(18,286

)

 

 

 

369,896

 

Wassa and Prestea

 

 

96,413

 

 

(7,816

)

 

 

 

88,597

 

​  

​  

​  

​  

​  

​  

​  

​  

Total production stage stream interests          

 

 

1,878,045

 

 

(122,064

)

 

 

 

1,755,981

 

Production stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Voisey's Bay

 

 

205,724

 

 

(85,671

)

 

 

 

120,053

 

Peñasquito

 

 

99,172

 

 

(29,898

)

 

 

 

69,274

 

Holt

 

 

34,612

 

 

(17,124

)

 

 

 

17,488

 

Cortez

 

 

10,630

 

 

(10,000

)

 

 

 

630

 

Other

 

 

531,735

 

 

(342,460

)

 

(18,605

)

 

170,670

 

​  

​  

​  

​  

​  

​  

​  

​  

Total production stage royalty interests          

 

 

881,873

 

 

(485,153

)

 

(18,605

)

 

378,115

 

​  

​  

​  

​  

​  

​  

​  

​  

Production stage stream and royalty interests

 

 

2,759,918

 

 

(607,217

)

 

(18,605

)

 

2,134,096

 

Development stage stream interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Rainy River

 

 

100,706

 

 

 

 

 

 

100,706

 

Other

 

 

87,883

 

 

(153

)

 

(75,702

)

 

12,028

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage stream interests

 

 

188,589

 

 

(153

)

 

(75,702

)

 

112,734

 

Development stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Pascua-Lama

 

 

380,657

 

 

 

 

 

 

380,657

 

Other

 

 

66,414

 

 

 

 

 

 

66,414

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage royalty interests

 

 

447,071

 

 

 

 

 

 

447,071

 

​  

​  

​  

​  

​  

​  

​  

​  

Development stage stream and royalty interests

 

 

635,660

 

 

(153

)

 

(75,702

)

 

559,805

 

Exploration stage royalty interests

 

 

155,997

 

 

 

 

(1,811

)

 

154,186

 

​  

​  

​  

​  

​  

​  

​  

​  

Total stream and royalty interests

 

$

3,551,575

 

$

(607,370

)

$

(96,118

)

$

2,848,087

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

                                                                                                                                                                                    

As of June 30, 2015 (Amounts in thousands):

 

Cost

 

Accumulated
Depletion

 

Impairments

 

Net

 

Production stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

783,046

 

$

(35,195

)

$

 

$

747,851

 

Production stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Andacollo

 

 

272,998

 

 

(65,467

)

 

 

 

207,531

 

Voisey's Bay

 

 

150,138

 

 

(76,141

)

 

 

 

73,997

 

Peñasquito

 

 

99,172

 

 

(24,555

)

 

 

 

74,617

 

Mulatos

 

 

48,092

 

 

(32,313

)

 

 

 

 

15,779

 

Holt

 

 

34,612

 

 

(13,950

)

 

 

 

20,662

 

Robinson

 

 

17,825

 

 

(12,748

)

 

 

 

 

5,077

 

Cortez

 

 

10,630

 

 

(9,933

)

 

 

 

697

 

Other

 

 

495,763

 

 

(265,727

)

 

(27,586

)

 

202,450

 

​  

​  

​  

​  

​  

​  

​  

​  

Total production stage royalty interests          

 

 

1,129,230

 

 

(500,834

)

 

(27,586

)

 

600,810

 

​  

​  

​  

​  

​  

​  

​  

​  

Production stage stream and royalty interests

 

 

1,912,276

 

 

(536,029

)

 

(27,586

)

 

1,348,661

 

Development stage stream interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Phoenix Gold

 

 

75,843

 

 

 

 

 

 

75,843

 

Other

 

 

8,183

 

 

 

 

(603

)

 

7,580

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage stream interests

 

 

84,026

 

 

 

 

(603

)

 

83,423

 

Development stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Pascua-Lama

 

 

372,105

 

 

 

 

 

 

372,105

 

Other

 

 

67,017

 

 

 

 

 

 

67,017

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage royalty interests

 

 

439,122

 

 

 

 

 

 

439,122

 

​  

​  

​  

​  

​  

​  

​  

​  

Development stage stream and royalty interests

 

 

523,148

 

 

 

 

(603

)

 

522,545

 

Exploration stage royalty interests

 

 

212,552

 

 


 

 

(150


)

 

212,402

 

​  

​  

​  

​  

​  

​  

​  

​  

Total stream and royalty interests

 

$

2,647,976

 

$

(536,029

)

$

(28,339

)

$

2,083,608

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Impairment of stream and royalty interests and royalty receivables

        In accordance with our impairment accounting policy discussed in Note 1, impairments in the carrying value of each stream or royalty interest are measured and recorded to the extent that the carrying value in each stream or royalty interest exceeds its estimated fair value, which is generally calculated using estimated future discounted cash-flows. As part of the Company's regular asset impairment analysis, which included the presence of impairment indicators, the Company recorded impairment charges for the fiscal years ended June 30, 2016, 2015 and 2014, as summarized in the following table:

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Phoenix Gold(1)

 

$

75,702

 

$

 

$

 

Inata(2)

 

 

11,982

 

 

 

 

 

Wolverine(2)

 

 

5,307

 

 

25,967

 

 

 

Other

 

 

3,127

 

 

2,372

 

 

 

​  

​  

​  

​  

​  

​  

Total impairment of stream and royalty interests

 

$

96,118

 

$

28,339

 

$

 

Inata royalty receivable

 

 

2,855

 

 

 

 

 

Wolverine royalty receivable

 

 

(385

)

 

2,996

 

 

 

​  

​  

​  

​  

​  

​  

Total impairment of stream and royalty interests and royalty receivables

 

$

98,588

 

$

31,335

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

(1)          

Included in Other development stage stream interests in the above stream and royalty interests table.

(2)          

Included in Other production stage royalty interests in the above stream and royalty interests table.

Phoenix Gold

        RGLD Gold owns the right to purchase 6.30% of any gold produced from the Phoenix Gold Project until 135,000 ounces have been delivered, and 3.15% thereafter. The Phoenix Gold Project is located in Red Lake, Ontario, Canada, and operated by Rubicon Minerals Corporation ("Rubicon"). On January 11, 2016, Rubicon provided an updated geologic model and mineralized material statement for the Phoenix Gold Project, which included a significant reduction in mineralized material compared to previous statements provided by Rubicon. Rubicon also announced that they were evaluating strategic alternatives, including merger and divestiture opportunities either at the corporate or asset level, obtaining new financing or capital restructurings. A significant reduction in mineralized material, along with recent decreases in the long-term metal price assumptions used by the industry, are indicators of impairment.

        During the quarter ended March 31, 2016, the Company independently evaluated the updated geologic model and mineralized material statement in an effort to properly assess the recoverability of our carrying value. The Company's technical evaluation was completed by internal and external personnel and included an econcomic analysis of the Phoenix Gold Project and a detailed review of the geological model and mineralized material statement.

        Based upon the results of the Company's review of the updated geological model and mineralized material statement, and other factors, it was determined that our stream interest at the Phoenix Gold Project should be written down to zero as of March 31, 2016. The Company will continue to pursue commercial alternatives for potential recovery of our investment.

Inata

        The Company owns a 2.5% gross smelter return royalty on all gold and silver produced from the Inata mine, located in Burkina Faso, West Africa, and operated by a subsidiary of Avocet Mining PLC ("Avocet"). The Company's carrying value for its royalty interest at Inata was approximately $12.0 million as of December 31, 2015. As part of the Company's impairment assessment for the three months ended March 31, 2016, the Company was notified of an updated mine plan at Inata, which included a significant reduction in the life of the mine. Based upon our review of the updated mine plan, our royalty interest was written down to zero as of March 31, 2016.

        The Company also had a royalty receivable of approximately $2.8 million associated with past due royalty payments on the Inata interest. As a result of Avocet's financial and operational difficulties and our review of the updated mine plan at Inata, the Company believes payment of the receivable is uncertain and provided for an allowance against the entire royalty receivable as of March 31, 2016. The Company will continue to pursue collection of all past due payments.

Wolverine

        The Company owns a 0.00% to 9.445% sliding-scale NSR royalty on all gold and silver produced from the Wolverine underground mine and milling operation located in Yukon Territory, Canada, and operated by Yukon Zinc Corporation ("Yukon Zinc"). As part of the Company's impairment assessment for the three months ended December 31, 2014, the Company was notified of an updated mine plan at Wolverine, which included a significant reduction in reserves and resources when compared to the previous mine plan. A significant reduction in reserves and resources, along with decreases in the long-term metal price assumptions used by the industry, are indicators of impairment.

        As part of the impairment determination, the fair value for Wolverine was estimated by calculating the net present value of the estimated future cash-flows expected to be generated by the mining of the Wolverine deposits subject to our royalty interest. The estimates of future cash-flows were derived from a life-of-mine model developed by the Company using Yukon Zinc's updated mine plan information. The metal price assumptions used in the Company's model were supported by consensus price estimates obtained from a number of industry analysts. The future cash-flows were discounted using a discount rate which reflects specific market risk factors the Company associates with the Wolverine royalty interest. Following the impairment charge during the three months ended December 31, 2014, the Wolverine royalty interest has a carrying value of $5.3 million as of June 30, 2015.

        The Company had a royalty receivable of approximately $3.0 million associated with past due royalty payments on the Wolverine interest. As a result of recent financial and operational results experienced by Yukon Zinc and their decision to put the mine on care and maintenance, the Company believes payment of the receivable is uncertain and provided for an allowance against the entire receivable as of June 30, 2015. The expense associated with the allowance is recorded within General and administrative expense on the Company's consolidated statements of operations and comprehensive (loss) income.

        During the second half of calendar 2015, Yukon Zinc completed bankruptcy proceedings in the Supreme Court of British Columbia and during the quarter ended March 31, 2016, we were made aware of no further intentions to recommission the mine. Based upon the updated developments and limited remaining mineralized material at Wolverine, the Company wrote down the remaining carrying value at Wolverine to zero as of March 31, 2016.

Other

        As part of the Company's regular asset impairment analysis during the three months ended March 31, 2016, including consideration of recent operator/property updates and developments, the Company determined that one production stage royalty interest and three exploration stage royalty interests should be written down to zero for a total impairment of approximately $3.1 million.

        As part of the Company's regular asset impairment analysis during the three months ended September 30, 2014, the Company determined that one production stage royalty interest and one exploration stage royalty interest should be written down to zero for a total impairment of $1.8 million. As part of the termination of the Tulsequah Chief gold and silver stream, as discussed below, the Company wrote-off approximately $0.6 million of direct acquisition costs during the three months ended December 31, 2014.

Termination of the Tulsequah Chief Gold and Silver Stream

        On December 22, 2014, RGLD Gold terminated the Amended and Restated Gold and Silver Purchase and Sale Agreement (the "Tulsequah Agreement"), between RGLD Gold, the Company, Chieftain Metals Inc. and Chieftain Metals Corp. (together, "Chieftain"), relating to Chieftain's Tulsequah Chief mining project located in British Columbia, Canada. Pursuant to the terms of the Agreement, Chieftain repaid RGLD Gold's original $10.0 million advance payment. As a result of the termination of the Tulsequah Agreement and repayment of our investment, the carrying value of the Tulsequah Chief gold and silver stream, which included our $10.0 million investment and approximately $0.6 million of direct acquisition costs, was reduced to zero during the three months ended December 31, 2014.

AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES

5. AVAILABLE-FOR-SALE SECURITIES

        The Company's available-for-sale securities as of June 30, 2016 and 2015 consist of the following:

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

 

 

(Amounts in thousands)

 

 

 

 

 

Unrealized

 

 

 

 

 

Cost Basis

 

Fair Value

 

 

 

Gain

 

Loss

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

 

Seabridge

 

$

 

 

 

 

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

 

$

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

As of June 30, 2015

 

 

 

(Amounts in thousands)

 

 

 

 

 

Unrealized

 

 

 

 

 

Cost Basis

 

Gain

 

Loss

 

Fair Value

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

 

Seabridge

 

$

9,565

 

 

 

 

(3,292

)

$

6,273

 

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

9,565

 

$

 

$

(3,292

)

$

6,273

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Our only significant available-for-sale security was the investment in Seabridge Gold, Inc. ("Seabridge") common stock, acquired in June 2011. During the fiscal year ended June 30, 2016, the Company sold all of its Seabridge common stock, resulting in a realized gain of approximately $2.3 million.

DEBT
DEBT

6. DEBT

        The Company's debt as of June 30, 2016 and 2015 consists of the following:

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

As of June 30, 2015

 

 

 

Principal

 

Unmortized
Discount

 

Debt
Issuance
Costs

 

Total

 

Principal

 

Unmortized
Discount

 

Debt
Issuance
Costs

 

Total

 

 

 

(Amounts in thousands)

 

(Amounts in thousands)

 

Convertible notes due 2019

 

$

370,000

 

$

(36,943

)

$

(3,934

)

$

329,123

 

$

370,000

 

$

(47,890

)

$

(5,180

)

$

316,930

 

Revolving credit facility

 

 

275,000

 

 

 

 

(3,438

)

 

271,562

 

 

 

 

 

 

(3,061

)

 

(3,061

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total debt

 

$

645,000

 

$

(36,943

)

$

(7,372

)

$

600,685

 

$

370,000

 

$

(47,890

)

$

(8,241

)

$

313,869

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Convertible Senior Notes Due 2019

        In June 2012, the Company completed an offering of $370 million aggregate principal amount of 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. Interest expense recognized on the 2019 Notes for the fiscal years ended June 30, 2016, 2015 and 2014 was approximately $22.8 million, $22.1 million and $21.4 million, respectively. Interest expense recognized includes the contractual coupon interest, the accretion of the debt discount and amortization of the debt issuance costs, and is recorded in Interest and other expense consolidated statements of operations and comprehensive income. During the fiscal years ended June 30, 2016 and 2015, the Company made $10.6 million in interest payments on our 2019 Notes.

Revolving credit facility

        The Company maintains a $650 million revolving credit facility. As of June 30, 2016, the Company had $275.0 million outstanding and $375.0 million available under the revolving credit facility. The Company had no amount outstanding under the revolving credit facility as of June 30, 2015.

        Borrowings under the revolving credit facility bear interest at a floating rate of LIBOR plus a margin of 1.25% to 3.0%, based on Royal Gold's leverage ratio. As of June 30, 2016, the interest rate on borrowings under the revolving credit facility was LIBOR plus 2.25% for an all-in rate of 2.89%. Royal Gold may repay any borrowings under the revolving credit facility at any time without premium or penalty.

        On March 16, 2016, the Company entered into Amendment No. 2 (the "Amendment") to the Sixth Amended and Restated Revolving Credit Agreement, dated as of January 29, 2014 (as amended by Amendment No. 1 thereto as of April 29, 2015, the "Revolving Credit Agreement"), by and among the Company, certain subsidiaries of the Company as guarantors, certain lenders from time to time party thereto, and HSBC Bank USA, National Association, as administrative agent for the lenders. The Amendment revises the Revolving Credit Agreement to extend the scheduled maturity date from January 29, 2019 to March 16, 2021.

        At June 30, 2016, the Company was in compliance with each financial covenant (leverage ratio and consolidated net worth, as defined therein).

REVENUE
REVENUE

7. REVENUE

        Revenue is comprised of the following:

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Stream interests

 

$

238,028 

 

$

94,104 

 

$

27,209 

 

Royalty interests

 

 

121,762 

 

 

183,915 

 

 

209,953 

 

​  

​  

​  

​  

​  

​  

Total revenue

 

$

359,790 

 

$

278,019 

 

$

237,162 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

        In November 2015, shareholders of the Company approved the 2015 Omnibus Long-Term Incentive Plan ("2015 LTIP"). Under the 2015 LTIP, 2,500,000 shares of common stock have been authorized for future grants to officers, directors, key employees and other persons. The 2015 LTIP provides for the grant of stock options, unrestricted stock, restricted stock, dividend equivalent rights, SSARs and cash awards. Any of these awards may, but need not, be made as performance incentives. Stock options granted under the 2015 LTIP may be non-qualified stock options or incentive stock options.

        The Company recognized stock-based compensation expense as follows:

                                                                                                                                                                                    

 

 

For the Fiscal Years Ended
June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Stock options

 

$

454

 

$

417

 

$

468

 

Stock appreciation rights

 

 

1,687

 

 

1,422

 

 

1,305

 

Restricted stock

 

 

3,686

 

 

2,511

 

 

3,110

 

Performance stock

 

 

4,212

 

 

791

 

 

(2,303

)

​  

​  

​  

​  

​  

​  

Total stock-based compensation expense

 

$

10,039

 

$

5,141

 

$

2,580

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Stock-based compensation expense is included within General and administrative expense on the consolidated statements of operations and comprehensive (loss) income.

Stock Options and Stock Appreciation Rights

        Stock option and SSARs awards are granted with an exercise price equal to the closing market price of the Company's stock at the date of grant. Stock option and SSARs awards granted to officers, key employees and other persons vest based on one to three years of continuous service. Stock option and SSARs awards have 10 year contractual terms.

        To determine stock-based compensation expense for stock options and SSARs, the fair value of each stock option and SSAR is estimated on the date of grant using the Black-Scholes-Merton ("Black-Scholes") option pricing model for all periods presented. The Black-Scholes model requires key assumptions in order to determine fair value. Those key assumptions during the fiscal year 2016, 2015 and 2014 grants are noted in the following table:

                                                                                                                                                                                    

 

 

Stock Options

 

SSARs

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Weighted-average expected volatility

 

 

36.9 

%

 

37.3 

%

 

43.6 

%

 

36.9 

%

 

36.6 

%

 

41.3 

%

Weighted-average expected life in years

 

 

5.5 

 

 

5.5 

 

 

5.5 

 

 

5.4 

 

 

5.3 

 

 

4.8 

 

Weighted-average dividend yield

 

 

1.06 

%

 

1.00 

%

 

1.00 

%

 

1.00 

%

 

1.00 

%

 

1.00 

%

Weighted-average risk free interest rate

 

 

1.6 

%

 

1.7 

%

 

1.7 

%

 

1.6 

%

 

1.7 

%

 

1.5 

%

        The Company's expected volatility is based on the historical volatility of the Company's stock over the expected option term. The Company's expected option term is determined by historical exercise patterns along with other known employee or company information at the time of grant. The risk free interest rate is based on the zero-coupon U.S. Treasury bond at the time of grant with a term approximate to the expected option term.

Stock Options

        A summary of stock option activity for the fiscal year ended June 30, 2016, is presented below.

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Life (Years)

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at July 1, 2015

 

 

96,155

 

$

59.28

 

 

 

 

 

 

 

Granted

 

 

25,437

 

$

55.71

 

 

 

 

 

 

 

Exercised

 

 

(2,500

)

$

28.78

 

 

 

 

 

 

 

Forfeited

 

 

(1,269

)

$

69.94

 

 

 

 

 

 

 

​  

​  

​  

​  

Outstanding at June 30, 2016

 

 

117,823

 

$

59.04

 

 

6.4

 

$

1,632

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Exercisable at June 30, 2016

 

 

73,366

 

$

57.46

 

 

5.1

 

$

1,129

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The weighted-average grant date fair value of options granted during the fiscal years ended June 30, 2016, 2015 and 2014, was $18.05, $24.86 and $22.78, respectively. The total intrinsic value of options exercised during the fiscal years ended June 30, 2016, 2015 and 2014, were $0.1 million, $0.7 million, and $1.1 million, respectively.

        As of June 30, 2016, there was approximately $0.5 million of total unrecognized stock-based compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.7 years.

SSARs

        A summary of SSARs activity for the fiscal year ended June 30, 2016, is presented below.

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Life (Years)

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at July 1, 2015

 

 

277,118

 

$

63.91

 

 

 

 

 

 

 

Granted

 

 

97,817

 

$

56.54

 

 

 

 

 

 

 

Exercised

 

 

(7,000

)

$

30.96

 

 

 

 

 

 

 

Forfeited

 

 

(130

)

$

62.14

 

 

 

 

 

 

 

​  

​  

​  

​  

Outstanding at June 30, 2016

 

 

367,805

 

$

62.58

 

 

7.1

 

$

3,861

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Exercisable at June 30, 2016

 

 

194,863

 

$

62.24

 

 

5.7

 

$

2,106

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The weighted-average grant date fair value of SSARs granted during the fiscal years ended June 30, 2016, 2015 and 2014 was $18.35, $24.42 and $21.15, respectively. The total intrinsic value of SSARs exercised during the fiscal years ended June 30, 2016, 2015 and 2014, were $0.3 million, $0.2 million, and $0.1 million, respectively.

        As of June 30, 2016, there was approximately $1.9 million of total unrecognized stock-based compensation expense related to non-vested SSARs, which is expected to be recognized over a weighted-average period of 1.7 years.

Other Stock-based Compensation

Performance Shares

        During fiscal 2016, officers and certain employees were granted 48,422 shares of restricted common stock that can be earned only upon the Company's achievement of certain pre-defined performance measures. Specifically, for performance shares granted in fiscal 2016, one-half of the shares awarded may vest upon the Company's achievement of annual growth in Net Gold Equivalent Ounces ("Net GEOs") ("GEO Shares"). The second one-half of performance shares granted in fiscal 2016 may vest based on the Company's total shareholder return ("TSR") compared to the TSRs of other members of the Market Vectors Gold Miners ETF (GDX) ("TSR Shares"). GEO Shares and TSR Shares may vest by linear interpolation in a range between zero shares if neither threshold Net GEO and TSR metric is met; to 100% of GEO Shares and TSR Shares awarded if both target Net GEO and TSR metrics are met; to 200% of the Net GEO and TSR shares awarded if both the maximum Net GEO and TSR metrics are met. The GEO Shares will expire in five years from the date of grant if the performance measure is not met, while the TSR Shares will expire in three years from the date of grant if the TSR market condition and three year service condition are not met.

        Performance shares granted prior to fiscal 2016 can be earned only if a single pre-defined performance goal (growth of adjusted free cash flow on a per share, trailing twelve month basis) is met within five years of the date of grant. If the performance goal is not earned by the end of this five year period, the fiscal 2015 Performance Shares will be forfeited. Vesting of the fiscal 2015 performance shares is subject to certain performance measures being met and can be based on an interim earn out of 25%, 50%, 75% or 100%.

        The Company measures the fair value of the GEO Shares and performance shares granted prior to fiscal 2016 based upon the market price of our common stock as of the date of grant. In accordance with ASC 718, the measurement date for the GEO Shares and performance shares granted prior to fiscal 2016 will be determined at such time that the performance goals are attained or that it is probable they will be attained. At such time that it is probable that a performance condition will be achieved, compensation expense will be measured by the number of shares that will ultimately be earned based on the grant date market price of our common stock. For shares that were previously estimated to be probable of vesting and are no longer deemed to be probable of vesting, compensation expense is reversed during the period in which it is determined they are no longer probable of vesting. Interim recognition of compensation expense will be made at such time as management can reasonably estimate the number of shares that will be earned.

        In accordance with ASC 718, provided the market condition within the TSR Shares, the Company measured the grant date fair value using a Monte Carlo valuation model. The fair value of the TSR Shares ($35.15 per share) is multiplied by the target number of TSR Shares granted to determine total stock-based compensation expense. Total stock-based compensation expense of the TSR Shares is amortized on a straight-line basis over the requisite service period, or three years. Stock-based compensation expense for the TSR Shares is recognized provided the requisite service period is rendered, regardless of when, if ever, the TSR market condition is satisfied. The Company will reverse previously recognized stock-based compensation expense attributable to the TSR Shares only if the requisite service period is not rendered.

        A summary of the status of the Company's non-vested Performance Shares for the fiscal year ended June 30, 2016, is presented below:

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Grant Date
Fair Value

 

Non-vested at July 1, 2015

 

 

200,325

 

$

66.52

 

Granted

 

 

48,422

 

$

45.63

 

Vested

 

 

(10,781

)

$

75.06

 

Expired

 

 

(23,750

)

$

49.66

 

Forfeited

 

 

(4,038

)

$

35.15

 

​  

​  

​  

​  

Non-vested at June 30, 2016

 

 

210,178

 

$

63.78

 

​  

​  

​  

​  

​  

​  

​  

​  

        As of June 30, 2016, total unrecognized stock-based compensation expense related to Performance Shares was approximately $2.3 million, which is expected to be recognized over the average remaining vesting period of 1.5 years.

Restricted Stock

        Officers, non-executive directors and certain employees may be granted shares of restricted stock that vest on continued service alone ("Restricted Stock"). During fiscal 2016, officers and certain employees were granted 50,507 shares of Restricted Stock. Restricted Stock awards granted to officers and certain employees vest over three years beginning after a two-year holding period from the date of grant with one-third of the shares vesting in years three, four and five, respectively. Also during fiscal year 2016, our non-executive directors were granted 22,680 shares of Restricted Stock. The non-executive directors' shares of Restricted Stock vest 50% immediately and 50% one year after the date of grant.

        Shares of Restricted Stock represent issued and outstanding shares of common stock, with dividend and voting rights. The Company measures the fair value of the Restricted Stock based upon the market price of our common stock as of the date of grant. Restricted Stock is amortized over the applicable vesting period using the straight-line method. Unvested shares of Restricted Stock are subject to forfeiture upon termination of employment or service with the Company.

        A summary of the status of the Company's non-vested Restricted Stock for the fiscal year ended June 30, 2016, is presented below:

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Grant Date
Fair Value

 

Non-vested at July 1, 2015

 

 

154,807

 

$

66.23

 

Granted

 

 

73,187

 

$

56.25

 

Vested

 

 

(51,472

)

$

61.54

 

Forfeited

 

 

 

$

 

​  

​  

​  

​  

Non-vested at June 30, 2016

 

 

176,522

 

$

63.46

 

​  

​  

​  

​  

​  

​  

​  

​  

        As of June 30, 2016, total unrecognized stock-based compensation expense related to Restricted Stock was approximately $5.5 million, which is expected to be recognized over the weighted-average vesting period of 3.0 years.

STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY

9. STOCKHOLDERS' EQUITY

Preferred Stock

        The Company has 10,000,000 authorized and unissued shares of $.01 par value Preferred Stock as of June 30, 2016 and 2015.

Common Stock Issuances

        During the fiscal years ended June 30, 2016, 2015 and 2014, options to purchase 2,500, 20,488 and 34,495 shares, respectively, were exercised, resulting in proceeds of approximately $0.1 million, $0.8 million and $1.1 million, respectively.

Stockholders' Rights Plan

        On September 10, 2007, the Company entered into the First Amended and Restated Rights Agreement, dated September 10, 2007 (the "Rights Agreement"). The Rights Agreement expires on September 10, 2017. The Rights Agreement was approved by the Company's board of directors (the "Board").

        The Rights Agreement is intended to deter coercive or abusive tender offers and market accumulations. The Rights Agreement is designed to encourage an acquirer to negotiate with the Board and to enhance the Board's ability to act in the best interests of all the Company's stockholders.

        Under the Rights Agreement, each stockholder of the Company holds one preferred stock purchase right (a "Right") for each share of Company common stock held. The Rights generally become exercisable only in the event that an acquiring party accumulates 15 percent or more of the Company's outstanding shares of common stock. If this were to occur, subject to certain exceptions, each Right (except for the Rights held by the acquiring party) would allow its holders to purchase one one-thousandth of a newly issued share of Series A junior participating preferred stock of Royal Gold or the Company's common stock with a value equal to twice the exercise price of the Right, initially set at $175 under the terms and conditions set forth in the Rights Agreement.

EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS")

10. EARNINGS PER SHARE ("EPS")

        Basic earnings (loss) 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 (loss) used to determine basic earnings (loss) 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 (loss) per common share.

        The following table summarizes the effects of dilutive securities on diluted EPS for the period:

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(in thousands, except share data)

 

Net (loss) income available to Royal Gold common stockholders

 

$

(77,149

)

$

51,965

 

$

62,641

 

​  

​  

​  

​  

​  

​  

Weighted-average shares for basic EPS

 

 

65,074,455

 

 

65,007,861

 

 

64,909,149

 

Effect of other dilutive securities

 

 

 

 

117,312

 

 

117,107

 

​  

​  

​  

​  

​  

​  

Weighted-average shares for diluted EPS

 

 

65,074,455

 

 

65,125,173

 

 

65,026,256

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Basic (loss) earnings per share

 

$

(1.18

)

$

0.80

 

$

0.96

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Diluted (loss) earnings per share

 

$

(1.18

)

$

0.80

 

$

0.96

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        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. 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 $105.31.

INCOME TAXES
INCOME TAXES

11. INCOME TAXES

        For financial reporting purposes, Income before income taxes includes the following components:

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

United States

 

$

(230

)

$

17,569

 

$

17,033

 

Foreign

 

 

(21,528

)

 

44,675

 

 

65,894

 

​  

​  

​  

​  

​  

​  

 

 

$

(21,758

)

$

62,244

 

$

82,927

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The Company's Income tax expense consisted of:

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Current:

 

 

 

 

 

 

 

 

 

 

Federal

 

$

45,878

 

$

22,418

 

$

(3,663

)

State

 

 

135

 

 

(36

)

 

334

 

Foreign

 

 

19,650

 

 

14,835

 

 

30,950

 

​  

​  

​  

​  

​  

​  

 

 

$

65,663

 

$

37,217

 

$

27,621

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Deferred and others:

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(6,986

)

$

(5,506

)

$

(4,122

)

State

 

 

(78

)

 

(49

)

 

(26

)

Foreign

 

 

2,081

 

 

(22,096

)

 

(4,018

)

​  

​  

​  

​  

​  

​  

 

 

$

(4,983

)

$

(27,651

)

$

(8,166

)

​  

​  

​  

​  

​  

​  

Total income tax expense

 

$

60,680

 

$

9,566

 

$

19,455

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The provision for income taxes for the fiscal years ended June 30, 2016, 2015 and 2014, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income (net of non-controlling interest in income of consolidated subsidiary and loss from equity investment) from operations as a result of the following differences:

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Total expense computed by applying federal rates

 

$

(7,615

)

$

21,786

 

$

29,024

 

State and provincial income taxes, net of federal benefit

 

 

(1

)

 

25

 

 

334

 

Excess depletion

 

 

(882

)

 

(1,429

)

 

(1,114

)

Estimates for uncertain tax positions

 

 

1,866

 

 

1,404

 

 

(7,386

)

Statutory tax attributable to non-controlling interest

 

 

1,838

 

 

(211

)

 

(293

)

Effect of foreign earnings

 

 

61,576

 

 

6,536

 

 

1,141

 

Effect of foreign earnings indefinitely reinvested

 

 

3,406

 

 

(7,601

)

 

(1,700

)

Canadian rate adjustment

 

 

 

 

4,070

 

 

 

Chilean tax reform

 

 

 

 

(2,481

)

 

 

Unrealized foreign exchange gains

 

 

(2,439

)

 

(10,949

)

 

(367

)

Changes in estimates

 

 

1,641

 

 

(359

)

 

(594

)

Other

 

 

1,290

 

 

(1,225

)

 

410

 

​  

​  

​  

​  

​  

​  

 

 

$

60,680

 

$

9,566

 

$

19,455

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The effective tax rate includes the impact of certain undistributed foreign subsidiary earnings for which we have not provided U.S. taxes because we plan to reinvest such earnings indefinitely outside the United States. The Company has the ability and intent to indefinitely reinvest these foreign earnings based on revenue and cash projections of our other investments, current cash on hand, and availability under our revolving credit facility. No deferred tax has been provided on the difference between the tax basis in the stock of the consolidated subsidiary and the amount of the subsidiary's net equity determined for financial reporting purposes.

        The tax effects of temporary differences and carryforwards, which give rise to our deferred tax assets and liabilities at June 30, 2016 and 2015, are as follows:

                                                                                                                                                                                    

 

 

2016

 

2015

 

 

 

(Amounts in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

Stock-based compensation

 

$

5,691

 

$

4,393

 

Net operating losses

 

 

12,385

 

 

16,087

 

Other

 

 

4,610

 

 

3,904

 

​  

​  

​  

​  

Total deferred tax assets

 

 

22,686

 

 

24,384

 

Valuation allowance

 

 

(2,100

)

 

(4,262

)

​  

​  

​  

​  

Net deferred tax assets

 

$

20,586

 

$

20,122

 

​  

​  

​  

​  

Deferred tax liabilities:

 

 

 

 

 

 

 

Mineral property basis

 

$

(127,337

)

$

(133,646

)

Unrealized foreign exchange gains

 

 

(1,273

)

 

936

 

2019 Notes

 

 

(12,639

)

 

(16,384

)

Other

 

 

(124

)

 

(1,658

)

​  

​  

​  

​  

Total deferred tax liabilities

 

 

(141,373

)

 

(150,752

)

​  

​  

​  

​  

Total net deferred taxes

 

$

(120,787

)

$

(130,630

)

​  

​  

​  

​  

​  

​  

​  

​  

        The Company reviews the measurement of its deferred tax assets at each balance sheet date. All available evidence, both positive and negative, is considered in determining whether, based upon the weight of the evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. As of June 30, 2016 and 2015, the Company had $2.1 million and $4.3 million of valuation allowances recorded, respectively. The valuation allowance remaining at June 30, 2016 is attributable to capital loss carryforwards in non-US subsidiaries.

        At June 30, 2016 and 2015, the Company had $59.5 million and $55 million of net operating loss carry forwards, respectively. The increase in the net operating loss carry forwards is primarily attributable to the impairment charges in non-U.S. subsidiaries. The majority of the tax loss carry forwards are in jurisdictions that allow a twenty year carry forward period. As a result, these losses do not begin to expire until the 2028 tax year, and the Company anticipates the losses will be fully utilized.

        As of June 30, 2016 and 2015, the Company had $16.9 million and $15.1 million of unrecognized tax benefits, respectively. If recognized, these unrecognized tax benefits would positively impact the Company's effective income tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

                                                                                                                                                                                    

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Total gross unrecognized tax benefits at beginning of year

 

$

15,130

 

$

13,725

 

$

21,166

 

Additions / Reductions for tax positions of current year

 

 

1,866

 

 

1,662

 

 

(1,052

)

Reductions due to settlements with taxing authorities

 

 

 

 

(257

)

 

(296

)

Reductions due to lapse of statute of limitations

 

 

 

 

 

 

(6,093

)

​  

​  

​  

​  

​  

​  

Total amount of gross unrecognized tax benefits at end of year

 

$

16,996

 

$

15,130

 

$

13,725

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for fiscal years before 2010. As a result of (i) statutes of limitation that will begin to expire within the next 12 months in various jurisdictions, (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, and (iii) additional accrual of exposure and interest on existing items, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will not decrease in the next 12 months.

        The Company's continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At June 30, 2016 and 2015, the amount of accrued income-tax-related interest and penalties was $5.7 million and $4.6 million, respectively.

SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

12. SUPPLEMENTAL CASH FLOW INFORMATION

        The Company's supplemental cash flow information for the fiscal years ending June 30, 2016, 2015 and 2014 is as follows:

                                                                                                                                                                                    

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

 

 

Interest

 

$

17,691 

 

$

10,638 

 

$

10,638 

 

Income taxes, net of refunds

 

$

76,072 

 

$

20,272 

 

$

27,322 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

Dividends declared

 

$

59,388 

 

$

56,715 

 

$

54,049 

 

 

FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

13. FAIR VALUE MEASUREMENTS

        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.

                                                                                                                                                                                    

 

 

At June 30, 2016

 

 

 

 

 

Fair Value

 

 

 

Carrying
Amount

 

 

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Assets (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants(1)

 

$

2,438 

 

$

2,438 

 

$

 

$

2,438 

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total assets

 

 

 

 

$

2,438 

 

$

 

$

2,438 

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Liabilities (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt(2)

 

$

410,057 

 

$

390,813 

 

$

390,813 

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total liabilities

 

 

 

 

$

390,813 

 

$

390,813 

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

(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 in the Company's consolidated balance sheets.

        The Company's debt classified within Level 1 of the fair value hierarchy is valued using quoted prices in an active market. The carrying value of the Company's revolving credit facility (Note 6) approximates fair value as of June 30, 2016. During the fiscal year ended June 30, 2016, the warrants issued by Golden Star (Note 3) were added to the Level 2 fair value hierarchy.

        As of June 30, 2016, 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. Refer to Note 4 for discussion of inputs used to develop fair value for those stream and royalty interests that were determined to be impaired during the twelve months ended June 30, 2016 and 2015.

MAJOR SOURCES OF REVENUE
MAJOR SOURCES OF REVENUE

14. MAJOR SOURCES OF REVENUE

        Operators that contributed greater than 10% of the Company's total revenue for any of fiscal years 2016, 2015 or 2014 were as follows (revenue amounts in thousands):

                                                                                                                                                                                    

 

 

Fiscal Year 2016

 

Fiscal Year 2015

 

Fiscal Year 2014

 

Operator

 

Revenue

 

Percentage of
total
revenue

 

Revenue

 

Percentage of
total
revenue

 

Revenue

 

Percentage of
total
revenue

 

Thompson Creek

 

$

125,438 

 

 

34.9 

%

$

94,104 

 

 

33.8 

%

$

27,209 

 

 

11.5 

%

Barrick

 

 

49,683 

 

 

13.8 

%

 

24,849 

 

 

8.9 

%

 

19,456 

 

 

8.2 

%

Teck

 

 

49,243 

 

 

13.7 

%

 

38,033 

 

 

13.7 

%

 

48,777 

 

 

20.6 

%

 

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

15. COMMITMENTS AND CONTINGENCIES

Rainy River Gold and Silver Stream Acquisition

        As of June 30, 2016, the Company has a remaining commitment, subject to certain conditions, of $75.0 million as part of its Rainy River gold and silver stream acquisition in August 2015 (Note 3).

Wassa and Prestea Gold Stream Acquisition and Amendment

        As of June 30, 2016, the Company has a remaining commitment, subject to certain conditions, of $50.0 million as part of its Wassa and Prestea gold stream acquisition (July 2015) and amendment (December 2015) as discussed further in Note 3.

Ilovica Gold Stream Acquisition

        As of June 30, 2016, the Company has a remaining commitment, subject to certain conditions, of $163.75 million as part of its Ilovica gold stream acquisition in October 2014.

Voisey's Bay

        The Company indirectly owns a royalty on the Voisey's Bay mine in Newfoundland and Labrador owned by Vale Newfoundland & Labrador Limited ("VNL"). The royalty is directly owned by the Labrador Nickel Royalty Limited Partnership ("LNRLP"), in which the Company's wholly-owned indirect subsidiary, Voisey's Bay Holding Corporation, is the general partner and 90% owner. The remaining 10% interest in LNRLP is owned by Altius Investments Limited, a company unrelated to Royal Gold.

        On December 5, 2014, LNRLP filed amendments to its October 16, 2009 Statement of Claim in the Supreme Court of Newfoundland and Labrador Trial Division against Vale Inco Limited, now known as Vale Canada Limited ("Vale Canada") and its wholly-owned subsidiaries, Vale Inco Atlantic Sales Limited and VNL, related to calculation of the NSR on the sale of concentrates, including nickel concentrates, from the Voisey's Bay mine. LNRLP asserts that the defendants have incorrectly calculated the NSR since production at Voisey's Bay began in late 2005, have indicated an intention to calculate the NSR in a manner LNRLP believes will violate the royalty agreement as Voisey's Bay concentrates are processed at Vale's new Long Harbour processing facility, and have breached their contractual duties of good faith and honest performance in several ways. LNRLP requests an order in respect of the correct calculation of future payments, and unspecified damages for non-payment and underpayment of past royalties to the date of the claim, together with additional damages until the date of trial, interest, costs and other damages. The litigation is in the discovery phase.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

16. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

        The following is a summary of selected quarterly financial information (unaudited). Some amounts in the below table may not sum-up in total as a result of rounding.

                                                                                                                                                                                    

 

 

Revenue

 

Operating
income
(loss)

 

Net (loss) income
attributable to
Royal Gold
stockholders

 

Basic (loss)
earnings per
share

 

Diluted (loss)
earnings per
share

 

 

 

(Amounts in thousands except per share data)

 

Fiscal year 2016 quarter-ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

$

74,056

 

$

21,185

 

$

(45,046

)

$

(0.69

)

$

(0.69

)

December 31

 

 

98,118

 

 

27,173

 

 

15,114

 

 

0.23

 

 

0.23

 

March 31

 

 

93,487

 

 

(72,058

)

 

(67,656

)

 

(1.04

)

 

(1.04

)

June 30

 

 

94,129

 

 

28,516

 

 

20,439

 

 

0.32

 

 

0.32

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

359,790

 

$

4,816

 

$

(77,149

)

$

(1.18

)

$

(1.18

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 


 


(Amounts in thousands except per share data)


 

Fiscal year 2015 quarter-ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

$

69,026

 

$

29,539

 

$

18,680

 

$

0.29

 

$

0.29

 

December 31

 

 

61,304

 

 

(2,022

)

 

(6,548

)

 

(0.10

)

 

(0.10

)

March 31

 

 

74,110

 

 

32,150

 

 

25,014

 

 

0.38

 

 

0.38

 

June 30

 

 

73,579

 

 

27,568

 

 

14,819

 

 

0.23

 

 

0.23

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

278,019

 

$

87,235

 

$

51,965

 

$

0.80

 

$

0.80

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS

Mount Milligan Commitment Letter

        On July 5, 2016, we entered into a binding commitment letter with Centerra Gold Inc. ("Centerra") setting forth the key terms and conditions of a future amendment to our Mount Milligan streaming agreement in connection with the proposed acquisition by Centerra of Thompson Creek Metals Company Inc. ("Thompson Creek") by Plan of Arrangement under the Arrangement Agreement executed between Centerra and Thompson Creek, as announced on July 5, 2016 (the "Centerra Acquisition"). Thompson Creek is the parent company of Terrane Metals Corp. ("Terrane"), which owns and operates the Mount Milligan copper-gold mine. Our obligation to amend the Mount Milligan streaming agreement is subject to the consummation of the Centerra Acquisition and other customary conditions set forth in the commitment letter.

        Pursuant to the terms of the commitment letter, we and Centerra have agreed to amend the existing streaming agreement, whereby, among other things, the existing 52.25% gold streaming interest will be amended to 35.00% and we will obtain an 18.75% copper streaming interest at Mount Milligan at a price equal to 15% of the spot price for each metric tonne of copper delivered. The Centerra Acquisition is expected to close in our first or second quarter of fiscal 2017.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS (Policies)

Use of Estimates

        The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.

        Our most critical accounting estimates relate to our assumptions regarding future gold, silver, copper, nickel and other metal prices and the estimates of reserves, production and recoveries of third-party mine operators. We rely on reserve estimates reported by the operators on the properties in which we have stream and royalty interests. These estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets. These estimates and assumptions also affect the rate at which we recognize revenue or charge depreciation, depletion and amortization to earnings. On an ongoing basis, management evaluates these estimates and assumptions; however, actual amounts could differ from these estimates and assumptions. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known.

Basis of Consolidation

        The consolidated financial statements include the accounts of Royal Gold, Inc., its wholly-owned subsidiaries and an entity over which control is achieved through means other than voting right (see Note 3). The Company follows the Accounting Standards Codification ("ASC") guidance for identification and reporting for entities over which control is achieved through means other than voting rights. All intercompany accounts, transactions, income and expenses, and profits or losses have been eliminated on consolidation.

Cash and Equivalents

        Cash and equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Cash and equivalents were primarily held in cash deposit accounts as of June 30, 2016 and 2015.

Stream and Royalty Interests

        Stream and royalty interests include acquired stream and royalty interests in production, development and exploration stage properties. The costs of acquired stream and royalty interests are capitalized as tangible assets as such interests do not meet the definition of a financial asset under the Accounting Standards Codification ("ASC") guidance.

        Acquisition costs of production stage stream and royalty interests are depleted using the units of production method over the life of the mineral property (as sales occur under stream interests or royalty payments are recognized), which are estimated using proven and probable reserves as provided by the operator. Acquisition costs of stream and royalty interests on development stage mineral properties, which are not yet in production, are not amortized until the property begins production. Acquisition costs of stream or royalty interests on exploration stage mineral properties, where there are no proven and probable reserves, are not amortized. At such time as the associated exploration stage mineral interests are converted to proven and probable reserves, the cost basis is amortized over the remaining life of the mineral property, using proven and probable reserves. The carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the production will not occur in the future. Exploration costs are expensed when incurred.

Available-for-Sale Securities

        Investments in securities that management does not have the intent to sell in the near term and that have readily determinable fair values are classified as available-for-sale securities. Unrealized gains and losses on these investments are recorded in accumulated other comprehensive (loss) income as a separate component of stockholders' equity, except that declines in market value judged to be other than temporary are recognized in determining net income. When investments are sold, the realized gains and losses on these investments, determined using the specific identification method, are included in determining net income.

        The Company's policy for determining whether declines in fair value of available-for-sale securities are other than temporary includes a quarterly analysis of the investments and a review by management of all investments for which the cost exceeds the fair value. Any temporary declines in fair value are recorded as a charge to other comprehensive (loss) income. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and management's ability and intent to hold the securities until fair value recovers. If such impairment is determined by the Company to be other-than-temporary, the investment's cost basis is written down to fair value and recorded in net income during the period the Company determines such impairment to be other-than-temporary. The new cost basis is not changed for subsequent recoveries in fair value. Refer to Note 5 for further discussion on our available-for-sale securities.

Asset Impairment

        We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable. The recoverability of the carrying value of stream and royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each stream and royalty interest using estimates of proven and probable reserves and other relevant information received from the operators. We evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold, silver, copper, nickel and other metals, and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur or may be reduced in the future, thus potentially affecting the future recoverability of our stream or royalty interests. Impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value, which is generally calculated using estimated future discounted cash flows.

        Estimates of gold, silver, copper, nickel and other metal prices, operators' estimates of proven and probable reserves or mineralized material related to our stream or royalty properties, and operators' estimates of operating and capital costs are subject to certain risks and uncertainties which may affect the recoverability of our investment in these stream and royalty interests in mineral properties. It is possible that changes could occur to these estimates, which could adversely affect the net cash flows expected to be generated from these stream and royalty interests. Refer to Note 4 for discussion and the results of our impairment assessments for the fiscal years ended June 30, 2016 and 2015.

Revenue

        Revenue is recognized pursuant to guidance in ASC 605 and based upon amounts contractually due pursuant to the underlying streaming or royalty agreement. Specifically, revenue is recognized in accordance with the terms of the underlying stream or royalty agreements subject to (i) the pervasive evidence of the existence of the arrangements; (ii) the risks and rewards having been transferred; (iii) the stream or royalty being fixed or determinable; and (iv) the collectability being reasonably assured. For our streaming agreements, we recognize revenue when the metal is sold.

Metal Sales

        Gold and silver received under our metal streaming agreements is taken into inventory, and this is sold primarily using average spot rate gold and silver forward contracts. The sales price for our gold and silver sold in average spot rate forward contracts is determined by the average daily gold or silver spot prices under the term of the contract, typically over a consecutive number of trading days between 10 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. Revenue from gold and silver sales is recognized on the date of the settlement, which is also the date that title to the gold or silver passes to the purchaser.

Cost of Sales

        Cost of sales is specific to our stream agreements and is the result of our purchase of gold and silver for a cash payment. The cash payment at Mount Milligan is the lesser of $435 per ounce or the prevailing market price of gold when purchased, while the cash payment for our other streams is a set contractual percentage of the gold or silver spot price near the date of metal delivery.

Production taxes

        Certain royalty payments are subject to production taxes (or mining proceeds taxes), which are recognized at the time of revenue recognition. Production taxes are not income taxes and are included within the costs and expenses section in the Company's consolidated statements of operations and comprehensive (loss) income.

Exploration Costs

        Exploration costs are specific to the Peak Gold LLC ("Peak Gold") joint venture for exploration and advancement of the Tetlin gold project, as discussed further in Note 3. Exploration costs associated with Peak Gold for the exploration and advancement of the Tetlin gold project are expensed when incurred.

Stock-Based Compensation

        The Company accounts for stock-based compensation in accordance with the guidance of ASC 718. The Company recognizes all share-based payments to employees, including grants of employee stock options, stock-settled stock appreciation rights ("SSARs"), restricted stock and performance shares, in its financial statements based upon their fair values.

Reportable Segments and Geographical 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) as of June 30, 2016 and 2015 are geographically distributed as shown in the following table:

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

As of June 30, 2015

 

 

 

Stream
interest

 

Royalty
interest

 

Total stream
and royalty
interests, net

 

Stream
interest

 

Royalty
interest

 

Total stream
and royalty
interests, net

 

Canada

 

$

809,692 

 

$

228,566 

 

$

1,038,258 

 

$

823,091 

 

$

251,688 

 

$

1,074,779 

 

Chile

 

 

369,896 

 

 

453,629 

 

 

823,525 

 

 

 

 

653,019 

 

 

653,019 

 

Dominican Republic

 

 

588,502 

 

 

 

 

588,502 

 

 

 

 

 

 

 

Mexico

 

 

 

 

118,899 

 

 

118,899 

 

 

 

 

131,742 

 

 

131,742 

 

United States

 

 

 

 

102,385 

 

 

102,385 

 

 

 

 

110,286 

 

 

110,286 

 

Africa

 

 

88,596 

 

 

697 

 

 

89,293 

 

 

 

 

12,760 

 

 

12,760 

 

Australia

 

 

 

 

42,547 

 

 

42,547 

 

 

 

 

50,119 

 

 

50,119 

 

Other

 

 

12,029 

 

 

32,649 

 

 

44,678 

 

 

8,183 

 

 

42,720 

 

 

50,903 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

$

1,868,715 

 

$

979,372 

 

$

2,848,087 

 

$

831,274 

 

$

1,252,334 

 

$

2,083,608 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The Company's revenue, cost of sales and net revenue by reportable segment for our fiscal year's ended June 30, 2016, 2015 and 2014 is geographically distributed as show in the following table:

                                                                                                                                                                                    

 

 

Fiscal Year Ended June 30, 2016

 

Fiscal Year Ended June 30, 2015

 

 

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

125,755 

 

$

47,417 

 

$

78,338 

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

Chile

 

 

49,243 

 

 

7,280 

 

 

41,963 

 

 

 

 

 

 

 

Dominican Republic

 

 

39,684 

 

 

11,625 

 

 

28,059 

 

 

 

 

 

 

 

Africa

 

 

23,346 

 

 

4,657 

 

 

18,689 

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total streams

 

$

238,028 

 

$

70,979 

 

$

167,049 

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

Royalties:

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Mexico

 

$

35,267 

 

$

 

$

35,267 

 

$

43,008 

 

$

 

$

43,008 

 

United States

 

 

35,483 

 

 

 

 

35,483 

 

 

42,675 

 

 

 

 

42,675 

 

Canada

 

 

30,676 

 

 

 

 

30,676 

 

 

37,496 

 

 

 

 

37,496 

 

Chile

 

 

84 

 

 

 

 

84 

 

 

39,508 

 

 

 

 

39,508 

 

Australia

 

 

10,462 

 

 

 

 

10,462 

 

 

8,494 

 

 

 

 

8,494 

 

Africa

 

 

1,868 

 

 

 

 

1,868 

 

 

3,075 

 

 

 

 

3,075 

 

Other

 

 

7,922 

 

 

 

 

7,922 

 

 

9,659 

 

 

 

 

9,659 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties

 

$

121,762 

 

$

 

$

121,762 

 

$

183,915 

 

$

 

$

183,915 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties and streams

 

$

359,790 

 

$

70,979 

 

$

288,811 

 

$

278,019 

 

$

33,450 

 

$

244,569 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Year Ended June 30, 2015

 

Fiscal Year Ended June 30, 2014

 

 

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

$

27,209 

 

$

9,158 

 

$

18,051 

 

Royalties:

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Mexico

 

$

43,008 

 

$

 

$

43,008 

 

$

43,093 

 

$

 

$

43,093 

 

United States

 

 

42,675 

 

 

 

 

42,675 

 

 

34,671 

 

 

 

 

34,671 

 

Chile

 

 

39,508 

 

 

 

 

39,508 

 

 

50,733 

 

 

 

 

50,733 

 

Canada

 

 

37,496 

 

 

 

 

37,496 

 

 

54,277 

 

 

 

 

54,277 

 

Australia

 

 

8,494 

 

 

 

 

8,494 

 

 

8,353 

 

 

 

 

8,353 

 

Africa

 

 

3,075 

 

 

 

 

3,075 

 

 

7,943 

 

 

 

 

7,943 

 

Other

 

 

9,659 

 

 

 

 

9,659 

 

 

10,883 

 

 

 

 

10,883 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties

 

$

183,915 

 

$

 

$

183,915 

 

$

209,953 

 

$

 

$

209,953 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties and streams

 

$

278,019 

 

$

33,450 

 

$

244,569 

 

$

237,162 

 

$

9,158 

 

$

228,004 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

Income Taxes

        The Company accounts for income taxes in accordance with the guidance of ASC 740. The Company's annual tax rate is based on income, statutory tax rates in effect and tax planning opportunities available to us in the various jurisdictions in which the Company operates. Significant judgment is required in determining the annual tax expense, current tax assets and liabilities, deferred tax assets and liabilities, and our future taxable income, both as a whole and in various tax jurisdictions, for purposes of assessing our ability to realize future benefit from our deferred tax assets. Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year's liability by taxing authorities.

        The Company's deferred income taxes reflect the impact of temporary differences between the reported amounts of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations. In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies in each tax jurisdiction. A valuation allowance may be established to reduce our deferred tax assets to the amount that is considered more likely than not to be realized through the generation of future taxable income and other tax planning strategies.

        The Company has asserted the indefinite reinvestment of certain foreign subsidiary earnings as determined by management's judgment about and intentions concerning the future operations of the Company. As a result, the Company does not record a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in foreign corporations to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. Refer to Note 11 for further discussion on our assertion.

        The Company's operations may involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress of a tax audit; however, due to the complexity of some of these uncertainties, the ultimate resolution could result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period which they are determined. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Comprehensive (Loss) Income

        In addition to net income, comprehensive (loss) income includes changes in equity during a period associated with cumulative unrealized changes in the fair value of marketable securities held for sale, net of tax effects.

Earnings per Share

        Basic earnings per share is computed by dividing net income available to Royal Gold common stockholders by the weighted average number of outstanding common shares for the period, considering the effect of participating securities, and include the outstanding exchangeable shares. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts that may require issuance of common shares were converted. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted average number of common shares outstanding, including outstanding exchangeable shares, during each fiscal year.

Reclassification

        Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. Reclassified amounts were not material to the financial statements.

Recently Adopted Accounting Standards

        In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") guidance related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the updated guidance. Early adoption is permitted and the Company elected to early adopt this guidance as of June 30, 2016, and the effects of the updated guidance were applied retrospectively to our fiscal year ended June 30, 2015. The effect of the change in accounting principle as of June 30, 2016 and 2015, was that $7.4 million and $8.2 million, respectively, of our debt issuance costs have been reclassified from Other assets to Debt on the Company's consolidated financial statements.

        In February 2015, ASU guidance was issued related to consolidations. This update affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update will change how companies determine whether limited partnerships or similar entities are variable interest entities ("VIEs"). The Company adopted the updated guidance as of June 30, 2016. The effects of the adoption had no impact on the Company's consolidated financial statements.

        In November 2015, the FASB issued guidance on the presentation of deferred income taxes that requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as non-current on the balance sheet. As a result, each tax jurisdiction will now only have one net non-current deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The Company adopted the updated guidance as of June 30, 2016, on a prospective basis and it only resulted in a change of presentation of the deferred taxes on our consolidated balances sheet. The change in accounting principle was not retrospectively applied to prior period balances.

Recently Issued Accounting Standards

        In March 2016, the FASB issued ASU guidance to simplify several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation with actual forfeitures as they occur, as well as certain classifications on the statement of cash flows. The new guidance is effective for the Company's fiscal year beginning July 1, 2017. Early adoption is permitted, as long as all of the amendments are adopted in the same period. We are currently evaluating the impact this guidance will have on our consolidated financial statements and footnote disclosures.

        In February 2016, the FASB issued ASU guidance which changes the accounting for leases. 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 impact, if any, this guidance will have on our consolidated financial statements and footnote disclosures.

        In January 2016, the FASB issued ASU guidance on the recognition and measurement of financial instruments. The amended guidance requires, among other things that equity securities classified as available-for-sale be measured at fair value with changes in fair value recognized in net income rather than other comprehensive (loss) income as required under previous guidance. The new guidance is effective for the Company's fiscal year beginning July 1, 2018. We are currently evaluating the impact this guidance will have on our consolidated financial statements.

        In May 2014, the FASB issued ASU guidance for the recognition of revenue from contracts with customers. Subsequent to the issuance of this ASU guidance, the FASB issued additional related ASU's on revenue recognition. The effective date and transition requirements for all of these ASU's are the same. Specifically, the guidance under these ASU's is to be applied using a full retrospective method or a modified retrospective method, as described in the guidance, and is effective for the Company's fiscal year beginning July 1, 2018. The Company is currently evaluating the level of effort needed to implement the guidance, evaluating the provisions of each new guidance, and assessing their impact on the Company's consolidated financial statements and disclosures, as well as which transitions method we intend to use.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS (Tables)

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

As of June 30, 2015

 

 

 

Stream
interest

 

Royalty
interest

 

Total stream
and royalty
interests, net

 

Stream
interest

 

Royalty
interest

 

Total stream
and royalty
interests, net

 

Canada

 

$

809,692 

 

$

228,566 

 

$

1,038,258 

 

$

823,091 

 

$

251,688 

 

$

1,074,779 

 

Chile

 

 

369,896 

 

 

453,629 

 

 

823,525 

 

 

 

 

653,019 

 

 

653,019 

 

Dominican Republic

 

 

588,502 

 

 

 

 

588,502 

 

 

 

 

 

 

 

Mexico

 

 

 

 

118,899 

 

 

118,899 

 

 

 

 

131,742 

 

 

131,742 

 

United States

 

 

 

 

102,385 

 

 

102,385 

 

 

 

 

110,286 

 

 

110,286 

 

Africa

 

 

88,596 

 

 

697 

 

 

89,293 

 

 

 

 

12,760 

 

 

12,760 

 

Australia

 

 

 

 

42,547 

 

 

42,547 

 

 

 

 

50,119 

 

 

50,119 

 

Other

 

 

12,029 

 

 

32,649 

 

 

44,678 

 

 

8,183 

 

 

42,720 

 

 

50,903 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

$

1,868,715 

 

$

979,372 

 

$

2,848,087 

 

$

831,274 

 

$

1,252,334 

 

$

2,083,608 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

                                                                                                                                                                                    

 

 

Fiscal Year Ended June 30, 2016

 

Fiscal Year Ended June 30, 2015

 

 

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

125,755 

 

$

47,417 

 

$

78,338 

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

Chile

 

 

49,243 

 

 

7,280 

 

 

41,963 

 

 

 

 

 

 

 

Dominican Republic

 

 

39,684 

 

 

11,625 

 

 

28,059 

 

 

 

 

 

 

 

Africa

 

 

23,346 

 

 

4,657 

 

 

18,689 

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total streams

 

$

238,028 

 

$

70,979 

 

$

167,049 

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

Royalties:

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Mexico

 

$

35,267 

 

$

 

$

35,267 

 

$

43,008 

 

$

 

$

43,008 

 

United States

 

 

35,483 

 

 

 

 

35,483 

 

 

42,675 

 

 

 

 

42,675 

 

Canada

 

 

30,676 

 

 

 

 

30,676 

 

 

37,496 

 

 

 

 

37,496 

 

Chile

 

 

84 

 

 

 

 

84 

 

 

39,508 

 

 

 

 

39,508 

 

Australia

 

 

10,462 

 

 

 

 

10,462 

 

 

8,494 

 

 

 

 

8,494 

 

Africa

 

 

1,868 

 

 

 

 

1,868 

 

 

3,075 

 

 

 

 

3,075 

 

Other

 

 

7,922 

 

 

 

 

7,922 

 

 

9,659 

 

 

 

 

9,659 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties

 

$

121,762 

 

$

 

$

121,762 

 

$

183,915 

 

$

 

$

183,915 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties and streams

 

$

359,790 

 

$

70,979 

 

$

288,811 

 

$

278,019 

 

$

33,450 

 

$

244,569 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Year Ended June 30, 2015

 

Fiscal Year Ended June 30, 2014

 

 

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Revenue

 

Cost of
sales

 

Net
revenue

 

Streams:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

$

94,104 

 

$

33,450 

 

$

60,654 

 

$

27,209 

 

$

9,158 

 

$

18,051 

 

Royalties:

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Mexico

 

$

43,008 

 

$

 

$

43,008 

 

$

43,093 

 

$

 

$

43,093 

 

United States

 

 

42,675 

 

 

 

 

42,675 

 

 

34,671 

 

 

 

 

34,671 

 

Chile

 

 

39,508 

 

 

 

 

39,508 

 

 

50,733 

 

 

 

 

50,733 

 

Canada

 

 

37,496 

 

 

 

 

37,496 

 

 

54,277 

 

 

 

 

54,277 

 

Australia

 

 

8,494 

 

 

 

 

8,494 

 

 

8,353 

 

 

 

 

8,353 

 

Africa

 

 

3,075 

 

 

 

 

3,075 

 

 

7,943 

 

 

 

 

7,943 

 

Other

 

 

9,659 

 

 

 

 

9,659 

 

 

10,883 

 

 

 

 

10,883 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties

 

$

183,915 

 

$

 

$

183,915 

 

$

209,953 

 

$

 

$

209,953 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total royalties and streams

 

$

278,019 

 

$

33,450 

 

$

244,569 

 

$

237,162 

 

$

9,158 

 

$

228,004 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

STREAM AND ROYALTY INTERESTS, NET (Tables)

                                                                                                                                                                                    

As of June 30, 2016 (Amounts in thousands):

 

Cost

 

Accumulated
Depletion

 

Impairments

 

Net

 

Production stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

783,046

 

$

(74,060

)

$

 

$

708,986

 

Pueblo Viejo

 

 

610,404

 

 

(21,902

)

 

 

 

588,502

 

Andacollo

 

 

388,182

 

 

(18,286

)

 

 

 

369,896

 

Wassa and Prestea

 

 

96,413

 

 

(7,816

)

 

 

 

88,597

 

​  

​  

​  

​  

​  

​  

​  

​  

Total production stage stream interests          

 

 

1,878,045

 

 

(122,064

)

 

 

 

1,755,981

 

Production stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Voisey's Bay

 

 

205,724

 

 

(85,671

)

 

 

 

120,053

 

Peñasquito

 

 

99,172

 

 

(29,898

)

 

 

 

69,274

 

Holt

 

 

34,612

 

 

(17,124

)

 

 

 

17,488

 

Cortez

 

 

10,630

 

 

(10,000

)

 

 

 

630

 

Other

 

 

531,735

 

 

(342,460

)

 

(18,605

)

 

170,670

 

​  

​  

​  

​  

​  

​  

​  

​  

Total production stage royalty interests          

 

 

881,873

 

 

(485,153

)

 

(18,605

)

 

378,115

 

​  

​  

​  

​  

​  

​  

​  

​  

Production stage stream and royalty interests

 

 

2,759,918

 

 

(607,217

)

 

(18,605

)

 

2,134,096

 

Development stage stream interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Rainy River

 

 

100,706

 

 

 

 

 

 

100,706

 

Other

 

 

87,883

 

 

(153

)

 

(75,702

)

 

12,028

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage stream interests

 

 

188,589

 

 

(153

)

 

(75,702

)

 

112,734

 

Development stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Pascua-Lama

 

 

380,657

 

 

 

 

 

 

380,657

 

Other

 

 

66,414

 

 

 

 

 

 

66,414

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage royalty interests

 

 

447,071

 

 

 

 

 

 

447,071

 

​  

​  

​  

​  

​  

​  

​  

​  

Development stage stream and royalty interests

 

 

635,660

 

 

(153

)

 

(75,702

)

 

559,805

 

Exploration stage royalty interests

 

 

155,997

 

 

 

 

(1,811

)

 

154,186

 

​  

​  

​  

​  

​  

​  

​  

​  

Total stream and royalty interests

 

$

3,551,575

 

$

(607,370

)

$

(96,118

)

$

2,848,087

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

                                                                                                                                                                                    

As of June 30, 2015 (Amounts in thousands):

 

Cost

 

Accumulated
Depletion

 

Impairments

 

Net

 

Production stage stream interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mount Milligan

 

$

783,046

 

$

(35,195

)

$

 

$

747,851

 

Production stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Andacollo

 

 

272,998

 

 

(65,467

)

 

 

 

207,531

 

Voisey's Bay

 

 

150,138

 

 

(76,141

)

 

 

 

73,997

 

Peñasquito

 

 

99,172

 

 

(24,555

)

 

 

 

74,617

 

Mulatos

 

 

48,092

 

 

(32,313

)

 

 

 

 

15,779

 

Holt

 

 

34,612

 

 

(13,950

)

 

 

 

20,662

 

Robinson

 

 

17,825

 

 

(12,748

)

 

 

 

 

5,077

 

Cortez

 

 

10,630

 

 

(9,933

)

 

 

 

697

 

Other

 

 

495,763

 

 

(265,727

)

 

(27,586

)

 

202,450

 

​  

​  

​  

​  

​  

​  

​  

​  

Total production stage royalty interests          

 

 

1,129,230

 

 

(500,834

)

 

(27,586

)

 

600,810

 

​  

​  

​  

​  

​  

​  

​  

​  

Production stage stream and royalty interests

 

 

1,912,276

 

 

(536,029

)

 

(27,586

)

 

1,348,661

 

Development stage stream interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Phoenix Gold

 

 

75,843

 

 

 

 

 

 

75,843

 

Other

 

 

8,183

 

 

 

 

(603

)

 

7,580

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage stream interests

 

 

84,026

 

 

 

 

(603

)

 

83,423

 

Development stage royalty interests:

 

 


 

 

 


 

 

 


 

 

 


 

 

Pascua-Lama

 

 

372,105

 

 

 

 

 

 

372,105

 

Other

 

 

67,017

 

 

 

 

 

 

67,017

 

​  

​  

​  

​  

​  

​  

​  

​  

Total development stage royalty interests

 

 

439,122

 

 

 

 

 

 

439,122

 

​  

​  

​  

​  

​  

​  

​  

​  

Development stage stream and royalty interests

 

 

523,148

 

 

 

 

(603

)

 

522,545

 

Exploration stage royalty interests

 

 

212,552

 

 


 

 

(150


)

 

212,402

 

​  

​  

​  

​  

​  

​  

​  

​  

Total stream and royalty interests

 

$

2,647,976

 

$

(536,029

)

$

(28,339

)

$

2,083,608

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Phoenix Gold(1)

 

$

75,702

 

$

 

$

 

Inata(2)

 

 

11,982

 

 

 

 

 

Wolverine(2)

 

 

5,307

 

 

25,967

 

 

 

Other

 

 

3,127

 

 

2,372

 

 

 

​  

​  

​  

​  

​  

​  

Total impairment of stream and royalty interests

 

$

96,118

 

$

28,339

 

$

 

Inata royalty receivable

 

 

2,855

 

 

 

 

 

Wolverine royalty receivable

 

 

(385

)

 

2,996

 

 

 

​  

​  

​  

​  

​  

​  

Total impairment of stream and royalty interests and royalty receivables

 

$

98,588

 

$

31,335

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

(1)          

Included in Other development stage stream interests in the above stream and royalty interests table.

(2)          

Included in Other production stage royalty interests in the above stream and royalty interests table.

 

AVAILABLE-FOR-SALE SECURITIES (Tables)
Schedule of available-for-sale securities

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

 

 

(Amounts in thousands)

 

 

 

 

 

Unrealized

 

 

 

 

 

Cost Basis

 

Fair Value

 

 

 

Gain

 

Loss

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

 

Seabridge

 

$

 

 

 

 

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

 

$

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

As of June 30, 2015

 

 

 

(Amounts in thousands)

 

 

 

 

 

Unrealized

 

 

 

 

 

Cost Basis

 

Gain

 

Loss

 

Fair Value

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

 

Seabridge

 

$

9,565

 

 

 

 

(3,292

)

$

6,273

 

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

9,565

 

$

 

$

(3,292

)

$

6,273

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

DEBT (Tables)
Schedule of debt

                                                                                                                                                                                    

 

 

As of June 30, 2016

 

As of June 30, 2015

 

 

 

Principal

 

Unmortized
Discount

 

Debt
Issuance
Costs

 

Total

 

Principal

 

Unmortized
Discount

 

Debt
Issuance
Costs

 

Total

 

 

 

(Amounts in thousands)

 

(Amounts in thousands)

 

Convertible notes due 2019

 

$

370,000

 

$

(36,943

)

$

(3,934

)

$

329,123

 

$

370,000

 

$

(47,890

)

$

(5,180

)

$

316,930

 

Revolving credit facility

 

 

275,000

 

 

 

 

(3,438

)

 

271,562

 

 

 

 

 

 

(3,061

)

 

(3,061

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total debt

 

$

645,000

 

$

(36,943

)

$

(7,372

)

$

600,685

 

$

370,000

 

$

(47,890

)

$

(8,241

)

$

313,869

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

REVENUE (Tables)
Schedule of revenue

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Stream interests

 

$

238,028 

 

$

94,104 

 

$

27,209 

 

Royalty interests

 

 

121,762 

 

 

183,915 

 

 

209,953 

 

​  

​  

​  

​  

​  

​  

Total revenue

 

$

359,790 

 

$

278,019 

 

$

237,162 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

STOCK-BASED COMPENSATION (Tables)

                                                                                                                                                                                    

 

 

For the Fiscal Years Ended
June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Stock options

 

$

454

 

$

417

 

$

468

 

Stock appreciation rights

 

 

1,687

 

 

1,422

 

 

1,305

 

Restricted stock

 

 

3,686

 

 

2,511

 

 

3,110

 

Performance stock

 

 

4,212

 

 

791

 

 

(2,303

)

​  

​  

​  

​  

​  

​  

Total stock-based compensation expense

 

$

10,039

 

$

5,141

 

$

2,580

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Stock Options

 

SSARs

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Weighted-average expected volatility

 

 

36.9 

%

 

37.3 

%

 

43.6 

%

 

36.9 

%

 

36.6 

%

 

41.3 

%

Weighted-average expected life in years

 

 

5.5 

 

 

5.5 

 

 

5.5 

 

 

5.4 

 

 

5.3 

 

 

4.8 

 

Weighted-average dividend yield

 

 

1.06 

%

 

1.00 

%

 

1.00 

%

 

1.00 

%

 

1.00 

%

 

1.00 

%

Weighted-average risk free interest rate

 

 

1.6 

%

 

1.7 

%

 

1.7 

%

 

1.6 

%

 

1.7 

%

 

1.5 

%

 

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Life (Years)

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at July 1, 2015

 

 

96,155

 

$

59.28

 

 

 

 

 

 

 

Granted

 

 

25,437

 

$

55.71

 

 

 

 

 

 

 

Exercised

 

 

(2,500

)

$

28.78

 

 

 

 

 

 

 

Forfeited

 

 

(1,269

)

$

69.94

 

 

 

 

 

 

 

​  

​  

​  

​  

Outstanding at June 30, 2016

 

 

117,823

 

$

59.04

 

 

6.4

 

$

1,632

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Exercisable at June 30, 2016

 

 

73,366

 

$

57.46

 

 

5.1

 

$

1,129

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Life (Years)

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at July 1, 2015

 

 

277,118

 

$

63.91

 

 

 

 

 

 

 

Granted

 

 

97,817

 

$

56.54

 

 

 

 

 

 

 

Exercised

 

 

(7,000

)

$

30.96

 

 

 

 

 

 

 

Forfeited

 

 

(130

)

$

62.14

 

 

 

 

 

 

 

​  

​  

​  

​  

Outstanding at June 30, 2016

 

 

367,805

 

$

62.58

 

 

7.1

 

$

3,861

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Exercisable at June 30, 2016

 

 

194,863

 

$

62.24

 

 

5.7

 

$

2,106

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Grant Date
Fair Value

 

Non-vested at July 1, 2015

 

 

200,325

 

$

66.52

 

Granted

 

 

48,422

 

$

45.63

 

Vested

 

 

(10,781

)

$

75.06

 

Expired

 

 

(23,750

)

$

49.66

 

Forfeited

 

 

(4,038

)

$

35.15

 

​  

​  

​  

​  

Non-vested at June 30, 2016

 

 

210,178

 

$

63.78

 

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Number of
Shares

 

Weighted-
Average
Grant Date
Fair Value

 

Non-vested at July 1, 2015

 

 

154,807

 

$

66.23

 

Granted

 

 

73,187

 

$

56.25

 

Vested

 

 

(51,472

)

$

61.54

 

Forfeited

 

 

 

$

 

​  

​  

​  

​  

Non-vested at June 30, 2016

 

 

176,522

 

$

63.46

 

​  

​  

​  

​  

​  

​  

​  

​  

 

EARNINGS PER SHARE ("EPS") (Tables)
Summary of the effects of dilutive securities on diluted EPS

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(in thousands, except share data)

 

Net (loss) income available to Royal Gold common stockholders

 

$

(77,149

)

$

51,965

 

$

62,641

 

​  

​  

​  

​  

​  

​  

Weighted-average shares for basic EPS

 

 

65,074,455

 

 

65,007,861

 

 

64,909,149

 

Effect of other dilutive securities

 

 

 

 

117,312

 

 

117,107

 

​  

​  

​  

​  

​  

​  

Weighted-average shares for diluted EPS

 

 

65,074,455

 

 

65,125,173

 

 

65,026,256

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Basic (loss) earnings per share

 

$

(1.18

)

$

0.80

 

$

0.96

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Diluted (loss) earnings per share

 

$

(1.18

)

$

0.80

 

$

0.96

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

INCOME TAXES (Tables)

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

United States

 

$

(230

)

$

17,569

 

$

17,033

 

Foreign

 

 

(21,528

)

 

44,675

 

 

65,894

 

​  

​  

​  

​  

​  

​  

 

 

$

(21,758

)

$

62,244

 

$

82,927

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Current:

 

 

 

 

 

 

 

 

 

 

Federal

 

$

45,878

 

$

22,418

 

$

(3,663

)

State

 

 

135

 

 

(36

)

 

334

 

Foreign

 

 

19,650

 

 

14,835

 

 

30,950

 

​  

​  

​  

​  

​  

​  

 

 

$

65,663

 

$

37,217

 

$

27,621

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Deferred and others:

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(6,986

)

$

(5,506

)

$

(4,122

)

State

 

 

(78

)

 

(49

)

 

(26

)

Foreign

 

 

2,081

 

 

(22,096

)

 

(4,018

)

​  

​  

​  

​  

​  

​  

 

 

$

(4,983

)

$

(27,651

)

$

(8,166

)

​  

​  

​  

​  

​  

​  

Total income tax expense

 

$

60,680

 

$

9,566

 

$

19,455

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Fiscal Years Ended June 30,

 

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Total expense computed by applying federal rates

 

$

(7,615

)

$

21,786

 

$

29,024

 

State and provincial income taxes, net of federal benefit

 

 

(1

)

 

25

 

 

334

 

Excess depletion

 

 

(882

)

 

(1,429

)

 

(1,114

)

Estimates for uncertain tax positions

 

 

1,866

 

 

1,404

 

 

(7,386

)

Statutory tax attributable to non-controlling interest

 

 

1,838

 

 

(211

)

 

(293

)

Effect of foreign earnings

 

 

61,576

 

 

6,536

 

 

1,141

 

Effect of foreign earnings indefinitely reinvested

 

 

3,406

 

 

(7,601

)

 

(1,700

)

Canadian rate adjustment

 

 

 

 

4,070

 

 

 

Chilean tax reform

 

 

 

 

(2,481

)

 

 

Unrealized foreign exchange gains

 

 

(2,439

)

 

(10,949

)

 

(367

)

Changes in estimates

 

 

1,641

 

 

(359

)

 

(594

)

Other

 

 

1,290

 

 

(1,225

)

 

410

 

​  

​  

​  

​  

​  

​  

 

 

$

60,680

 

$

9,566

 

$

19,455

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

2016

 

2015

 

 

 

(Amounts in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

Stock-based compensation

 

$

5,691

 

$

4,393

 

Net operating losses

 

 

12,385

 

 

16,087

 

Other

 

 

4,610

 

 

3,904

 

​  

​  

​  

​  

Total deferred tax assets

 

 

22,686

 

 

24,384

 

Valuation allowance

 

 

(2,100

)

 

(4,262

)

​  

​  

​  

​  

Net deferred tax assets

 

$

20,586

 

$

20,122

 

​  

​  

​  

​  

Deferred tax liabilities:

 

 

 

 

 

 

 

Mineral property basis

 

$

(127,337

)

$

(133,646

)

Unrealized foreign exchange gains

 

 

(1,273

)

 

936

 

2019 Notes

 

 

(12,639

)

 

(16,384

)

Other

 

 

(124

)

 

(1,658

)

​  

​  

​  

​  

Total deferred tax liabilities

 

 

(141,373

)

 

(150,752

)

​  

​  

​  

​  

Total net deferred taxes

 

$

(120,787

)

$

(130,630

)

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Total gross unrecognized tax benefits at beginning of year

 

$

15,130

 

$

13,725

 

$

21,166

 

Additions / Reductions for tax positions of current year

 

 

1,866

 

 

1,662

 

 

(1,052

)

Reductions due to settlements with taxing authorities

 

 

 

 

(257

)

 

(296

)

Reductions due to lapse of statute of limitations

 

 

 

 

 

 

(6,093

)

​  

​  

​  

​  

​  

​  

Total amount of gross unrecognized tax benefits at end of year

 

$

16,996

 

$

15,130

 

$

13,725

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
Schedule of supplemental cash flow information

                                                                                                                                                                                    

 

 

2016

 

2015

 

2014

 

 

 

(Amounts in thousands)

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

 

 

Interest

 

$

17,691 

 

$

10,638 

 

$

10,638 

 

Income taxes, net of refunds

 

$

76,072 

 

$

20,272 

 

$

27,322 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

Dividends declared

 

$

59,388 

 

$

56,715 

 

$

54,049 

 

 

FAIR VALUE MEASUREMENTS (Tables)
Schedule of financial assets measured at fair value on recurring basis

                                                                                                                                                                                    

 

 

At June 30, 2016

 

 

 

 

 

Fair Value

 

 

 

Carrying
Amount

 

 

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Assets (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants(1)

 

$

2,438 

 

$

2,438 

 

$

 

$

2,438 

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total assets

 

 

 

 

$

2,438 

 

$

 

$

2,438 

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Liabilities (In thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt(2)

 

$

410,057 

 

$

390,813 

 

$

390,813 

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total liabilities

 

 

 

 

$

390,813 

 

$

390,813 

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 

 

(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 in the Company's consolidated balance sheets.

 

MAJOR SOURCES OF REVENUE (Tables)
Schedule of major sources of revenue

        Operators that contributed greater than 10% of the Company's total revenue for any of fiscal years 2016, 2015 or 2014 were as follows (revenue amounts in thousands):

                                                                                                                                                                                    

 

 

Fiscal Year 2016

 

Fiscal Year 2015

 

Fiscal Year 2014

 

Operator

 

Revenue

 

Percentage of
total
revenue

 

Revenue

 

Percentage of
total
revenue

 

Revenue

 

Percentage of
total
revenue

 

Thompson Creek

 

$

125,438 

 

 

34.9 

%

$

94,104 

 

 

33.8 

%

$

27,209 

 

 

11.5 

%

Barrick

 

 

49,683 

 

 

13.8 

%

 

24,849 

 

 

8.9 

%

 

19,456 

 

 

8.2 

%

Teck

 

 

49,243 

 

 

13.7 

%

 

38,033 

 

 

13.7 

%

 

48,777 

 

 

20.6 

%

 

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables)
Summary of selected quarterly financial information (unaudited)

                                                                                                                                                                                    

 

 

Revenue

 

Operating
income
(loss)

 

Net (loss) income
attributable to
Royal Gold
stockholders

 

Basic (loss)
earnings per
share

 

Diluted (loss)
earnings per
share

 

 

 

(Amounts in thousands except per share data)

 

Fiscal year 2016 quarter-ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

$

74,056

 

$

21,185

 

$

(45,046

)

$

(0.69

)

$

(0.69

)

December 31

 

 

98,118

 

 

27,173

 

 

15,114

 

 

0.23

 

 

0.23

 

March 31

 

 

93,487

 

 

(72,058

)

 

(67,656

)

 

(1.04

)

 

(1.04

)

June 30

 

 

94,129

 

 

28,516

 

 

20,439

 

 

0.32

 

 

0.32

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

359,790

 

$

4,816

 

$

(77,149

)

$

(1.18

)

$

(1.18

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  


 


 


(Amounts in thousands except per share data)


 

Fiscal year 2015 quarter-ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

$

69,026

 

$

29,539

 

$

18,680

 

$

0.29

 

$

0.29

 

December 31

 

 

61,304

 

 

(2,022

)

 

(6,548

)

 

(0.10

)

 

(0.10

)

March 31

 

 

74,110

 

 

32,150

 

 

25,014

 

 

0.38

 

 

0.38

 

June 30

 

 

73,579

 

 

27,568

 

 

14,819

 

 

0.23

 

 

0.23

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

278,019

 

$

87,235

 

$

51,965

 

$

0.80

 

$

0.80

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

THE COMPANY (Details)
12 Months Ended
Jun. 30, 2016
item
THE COMPANY
 
Minimum number of metals produced from a mine of which right to purchase all or a portion available in exchange for upfront deposit
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS (Details) (Gold forward contracts)
12 Months Ended
Jun. 30, 2016
Minimum
 
Metal Sales
 
Term of the contract
10 days 
Maximum
 
Metal Sales
 
Term of the contract
3 months 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2016
segment
Jun. 30, 2015
Jun. 30, 2014
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Number of reportable segments
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
$ 2,848,087 
 
 
 
$ 2,083,608 
 
 
 
$ 2,848,087 
$ 2,083,608 
 
Revenue
94,129 
93,487 
98,118 
74,056 
73,579 
74,110 
61,304 
69,026 
359,790 
278,019 
237,162 
Cost of sales
 
 
 
 
 
 
 
 
70,979 
33,450 
9,158 
Net Revenue
 
 
 
 
 
 
 
 
288,811 
244,569 
228,004 
Cost of Sales
 
 
 
 
 
 
 
 
 
 
 
Cash payment for each ounce of gold (in dollars per ounce)
435 
 
 
 
 
 
 
 
435 
 
 
Canada
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
1,038,258 
 
 
 
1,074,779 
 
 
 
1,038,258 
1,074,779 
 
Chile
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
823,525 
 
 
 
653,019 
 
 
 
823,525 
653,019 
 
Dominican Republic
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
588,502 
 
 
 
 
 
 
 
588,502 
 
 
Mexico
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
118,899 
 
 
 
131,742 
 
 
 
118,899 
131,742 
 
United States
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
102,385 
 
 
 
110,286 
 
 
 
102,385 
110,286 
 
Africa
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
89,293 
 
 
 
12,760 
 
 
 
89,293 
12,760 
 
Australia
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
42,547 
 
 
 
50,119 
 
 
 
42,547 
50,119 
 
Other
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
44,678 
 
 
 
50,903 
 
 
 
44,678 
50,903 
 
Stream Interest
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
1,868,715 
 
 
 
831,274 
 
 
 
1,868,715 
831,274 
 
Revenue
 
 
 
 
 
 
 
 
238,028 
94,104 
27,209 
Cost of sales
 
 
 
 
 
 
 
 
70,979 
33,450 
9,158 
Net Revenue
 
 
 
 
 
 
 
 
167,049 
60,654 
18,051 
Stream Interest |
Canada
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
809,692 
 
 
 
823,091 
 
 
 
809,692 
823,091 
 
Revenue
 
 
 
 
 
 
 
 
125,755 
94,104 
 
Cost of sales
 
 
 
 
 
 
 
 
47,417 
33,450 
 
Net Revenue
 
 
 
 
 
 
 
 
78,338 
60,654 
 
Stream Interest |
Chile
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
369,896 
 
 
 
 
 
 
 
369,896 
 
 
Revenue
 
 
 
 
 
 
 
 
49,243 
 
 
Cost of sales
 
 
 
 
 
 
 
 
7,280 
 
 
Net Revenue
 
 
 
 
 
 
 
 
41,963 
 
 
Stream Interest |
Dominican Republic
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
588,502 
 
 
 
 
 
 
 
588,502 
 
 
Revenue
 
 
 
 
 
 
 
 
39,684 
 
 
Cost of sales
 
 
 
 
 
 
 
 
11,625 
 
 
Net Revenue
 
 
 
 
 
 
 
 
28,059 
 
 
Stream Interest |
Africa
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
88,596 
 
 
 
 
 
 
 
88,596 
 
 
Revenue
 
 
 
 
 
 
 
 
23,346 
 
 
Cost of sales
 
 
 
 
 
 
 
 
4,657 
 
 
Net Revenue
 
 
 
 
 
 
 
 
18,689 
 
 
Stream Interest |
Other
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
12,029 
 
 
 
8,183 
 
 
 
12,029 
8,183 
 
Royalty Interest
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
979,372 
 
 
 
1,252,334 
 
 
 
979,372 
1,252,334 
 
Revenue
 
 
 
 
 
 
 
 
121,762 
183,915 
209,953 
Net Revenue
 
 
 
 
 
 
 
 
121,762 
183,915 
209,953 
Royalty Interest |
Canada
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
228,566 
 
 
 
251,688 
 
 
 
228,566 
251,688 
 
Revenue
 
 
 
 
 
 
 
 
30,676 
37,496 
54,277 
Net Revenue
 
 
 
 
 
 
 
 
30,676 
37,496 
54,277 
Royalty Interest |
Chile
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
453,629 
 
 
 
653,019 
 
 
 
453,629 
653,019 
 
Revenue
 
 
 
 
 
 
 
 
84 
39,508 
50,733 
Net Revenue
 
 
 
 
 
 
 
 
84 
39,508 
50,733 
Royalty Interest |
Mexico
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
118,899 
 
 
 
131,742 
 
 
 
118,899 
131,742 
 
Revenue
 
 
 
 
 
 
 
 
35,267 
43,008 
43,093 
Net Revenue
 
 
 
 
 
 
 
 
35,267 
43,008 
43,093 
Royalty Interest |
United States
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
102,385 
 
 
 
110,286 
 
 
 
102,385 
110,286 
 
Revenue
 
 
 
 
 
 
 
 
35,483 
42,675 
34,671 
Net Revenue
 
 
 
 
 
 
 
 
35,483 
42,675 
34,671 
Royalty Interest |
Africa
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
697 
 
 
 
12,760 
 
 
 
697 
12,760 
 
Revenue
 
 
 
 
 
 
 
 
1,868 
3,075 
7,943 
Net Revenue
 
 
 
 
 
 
 
 
1,868 
3,075 
7,943 
Royalty Interest |
Australia
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
42,547 
 
 
 
50,119 
 
 
 
42,547 
50,119 
 
Revenue
 
 
 
 
 
 
 
 
10,462 
8,494 
8,353 
Net Revenue
 
 
 
 
 
 
 
 
10,462 
8,494 
8,353 
Royalty Interest |
Other
 
 
 
 
 
 
 
 
 
 
 
Long Lived Assets and Pre-Tax Income by Geographical Information
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
32,649 
 
 
 
42,720 
 
 
 
32,649 
42,720 
 
Revenue
 
 
 
 
 
 
 
 
7,922 
9,659 
10,883 
Net Revenue
 
 
 
 
 
 
 
 
$ 7,922 
$ 9,659 
$ 10,883 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS (Details 3) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Jun. 30, 2015
Recently Adopted Accounting Standards
 
 
Other assets
$ 53,696 
$ 36,560 
Debt (Note 6)
600,685 
313,869 
ASU 2015-03 |
Retrospective Adjustment
 
 
Recently Adopted Accounting Standards
 
 
Other assets
7,400 
8,200 
Debt (Note 6)
$ (7,400)
$ (8,200)
ACQUISITIONS (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
0 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Chile
Jun. 30, 2015
Chile
Jun. 30, 2016
Peak Gold
Royal Alaska
Jul. 9, 2015
Carmen de Andacollo
RG Chile
Jul. 9, 2015
Carmen de Andacollo
Stream and royalty interests, net
RGLD Gold
Oct. 20, 2014
Ilovica
RGLD Gold
item
Oct. 20, 2014
Ilovica
RGLD Gold
Initial Royalty
oz
Oct. 20, 2014
Ilovica
RGLD Gold
Initial Royalty
Oct. 20, 2014
Ilovica
RGLD Gold
Subsequent Royalty
Oct. 20, 2014
Ilovica
RGLD Gold
Subsequent Royalty
Oct. 20, 2014
Ilovica
RGLD Gold
First Condition
Oct. 20, 2014
Ilovica
RGLD Gold
Second Condition
Nov. 30, 2015
Ilovica
RGLD Gold
Second Condition
Jun. 30, 2016
Ilovica
RGLD Gold
Second Condition
Jun. 30, 2016
Ilovica
Stream and royalty interests, net
RGLD Gold
Sep. 30, 2014
Tetlin
Sep. 30, 2014
Tetlin
NSR Royalty Option 1
Sep. 30, 2014
Tetlin
NSR Royalty Option 2
Jun. 30, 2016
Tetlin
Royal Alaska
Jun. 30, 2016
Tetlin
Peak Gold
Jan. 8, 2015
Tetlin
Peak Gold
Royal Alaska
Jun. 30, 2016
Tetlin
Peak Gold
Royal Alaska
Jan. 8, 2015
Tetlin
Peak Gold
Royal Alaska
Maximum
Jan. 8, 2015
Tetlin
Peak Gold
Contango
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
Initial Royalty
oz
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
Initial Royalty
oz
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
Subsequent Royalty
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
First Condition
oz
Sep. 29, 2015
BGC
Pueblo Viejo
RGLD Gold
First Condition
oz
Jun. 30, 2016
BGC
Pueblo Viejo
Stream and royalty interests, net
RGLD Gold
Jul. 28, 2015
Golden Star
Jul. 28, 2015
Golden Star
Jul. 28, 2015
Golden Star
Maximum
Jul. 1, 2016
Golden Star
Wassa and Prestea
RGLD Gold
payment
Dec. 30, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Jul. 1, 2016
Golden Star
Wassa and Prestea
RGLD Gold
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Initial Royalty
oz
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Initial Royalty
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Subsequent Royalty
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
First Condition
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Subsequent Two Royalty
Jul. 28, 2015
Golden Star
Wassa and Prestea
RGLD Gold
Second Condition
Jun. 30, 2016
Golden Star
Wassa and Prestea
Stream and royalty interests, net
RGLD Gold
Jul. 20, 2015
New Gold Inc
Rainy River
RGLD Gold
Jul. 20, 2015
New Gold Inc
Rainy River
RGLD Gold
Jul. 20, 2015
New Gold Inc
Rainy River
RGLD Gold
Initial Royalty
oz
Jul. 20, 2015
New Gold Inc
Rainy River
RGLD Gold
Initial Royalty
oz
Jul. 20, 2015
New Gold Inc
Rainy River
RGLD Gold
Subsequent Royalty
Jul. 20, 2015
New Gold Inc
Rainy River
RGLD Gold
Subsequent Royalty
Jun. 30, 2016
New Gold Inc
Rainy River
Stream and royalty interests, net
RGLD Gold
Jul. 9, 2015
CMCA
Teck
Jul. 9, 2015
CMCA
Carmen de Andacollo
RGLD Gold
Jul. 9, 2015
CMCA
Carmen de Andacollo
RGLD Gold
Jul. 9, 2015
CMCA
Carmen de Andacollo
RGLD Gold
Chile
oz
Jul. 9, 2015
CMCA
Carmen de Andacollo
RGLD Gold
Maximum
km
Jul. 9, 2015
CMCA
Carmen de Andacollo
RG Chile
Jan. 12, 2010
CMCA
Carmen de Andacollo
RG Chile
Initial Royalty
oz
Jan. 12, 2010
CMCA
Carmen de Andacollo
RG Chile
Initial Royalty
Jan. 12, 2010
CMCA
Carmen de Andacollo
RG Chile
Subsequent Royalty
Acquisition of Royalty Interest in Mineral Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90.00% 
 
 
 
 
 
 
 
 
Total purchase amount
 
 
 
 
 
 
 
$ 175,000,000 
 
 
 
 
 
 
 
 
 
$ 6,000,000 
 
 
 
 
 
 
 
 
$ 610,000,000 
 
 
 
 
 
 
$ 610,000,000 
 
 
 
 
$ 145,000,000 
$ 130,000,000 
 
 
 
 
 
 
 
 
$ 95,000,000 
$ 175,000,000 
 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
$ 345,000,000 
 
 
 
Percentage of royalty interests acquired
 
 
 
 
 
 
 
 
 
25.00% 
 
12.50% 
 
 
 
 
 
 
2.00% 
3.00% 
 
 
 
 
 
 
 
 
 
7.50% 
3.75% 
 
 
 
 
 
 
 
 
 
 
 
 
9.25% 
10.50% 
 
5.50% 
 
 
 
 
 
6.50% 
 
3.25% 
 
 
 
 
 
 
 
 
75.00% 
50.00% 
Gold delivered (in ounces)
 
 
 
 
 
 
 
 
525,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
990,000 
 
 
550,000 
 
 
 
 
 
 
 
 
 
 
240,000 
 
 
 
 
 
 
 
 
230,000 
 
 
 
 
 
 
 
 
 
 
910,000 
 
 
Purchase price per ounce of gold as percentage of spot price at the time of delivery
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60.00% 
 
 
 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
30.00% 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
Percentage of silver royalty interests acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
75.00% 
37.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60.00% 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
Percentage of minimum silver recovery
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
70.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum quantity of silver with specified purchase price (in ounces)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
23,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Additional investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of loan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
 
 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock that can be purchased by the warrants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grant date fair value on exercise of warrants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarterly interest rate based on average gold rate divided by 10,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
62.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator used in calculation of quarterly interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of warrants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise price of warrants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.27 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisition of royalty interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
 
 
95,000,000 
100,000,000 
 
 
 
 
 
 
 
525,000,000 
 
 
 
 
 
 
 
Number of installments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Installment Scheduled Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Second Installment Scheduled Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payable upon meeting capital spending requirement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
75,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital spending requirement (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of produced payable gold to be purchased have been delivered
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
Maximum quantity of gold with specified purchase price (in ounces)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
900,000 
 
 
 
 
 
Percentage of produced payable gold to be purchased after 135,000 ounces have been delivered
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
Fixed percentage of produced gold payable (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
89.00% 
 
 
 
 
 
 
Purchase price per ounce as a percentage of monthly average gold price for the month preceding the delivery date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
Area of mining to be eligible for concessions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.5 
 
 
 
 
Carrying value
3,551,575,000 
2,647,976,000 
 
 
 
 
388,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stream and royalty interests, net
2,848,087,000 
2,083,608,000 
823,525,000 
653,019,000 
 
207,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feasibility costs
 
 
 
 
 
 
 
15,000,000 
 
 
 
 
7,500,000 
7,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction costs
 
 
 
 
 
 
 
160,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price per ounce of silver as percentage of spot price at the time of delivery
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60.00% 
 
 
 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
Payments to acquire interest in joint venture
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,700,000 
 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Membership interest controlled
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11.00% 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of membership interest that can be obtained
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount that can be contributed to purchase membership interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum percentage of membership interest required to be manager
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of non-controlling interest
 
 
 
 
45,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment of aggregate pre-production commitment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,750,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining consideration payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,750,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STREAM AND ROYALTY INTERESTS, NET (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Other
Jun. 30, 2015
Other
Mar. 31, 2016
Other
Jun. 30, 2016
Phoenix Gold
Mar. 31, 2016
Phoenix Gold
Jun. 30, 2016
Wolverine
Jun. 30, 2015
Wolverine
Mar. 31, 2016
Wolverine
Dec. 31, 2014
Wolverine
Jun. 30, 2016
Wolverine
Minimum
Jun. 30, 2016
Wolverine
Maximum
Jun. 30, 2016
Inata
Mar. 31, 2016
Inata
Dec. 31, 2015
Inata
Jun. 30, 2016
Inata
Avocet
Dec. 31, 2014
Tulsequah
Dec. 31, 2014
Chieftain
Jun. 30, 2016
Production Stage Stream Interests
Jun. 30, 2016
Production Stage Stream Interests
Andacollo
Jun. 30, 2016
Production Stage Stream Interests
Mt. Milligan
Jun. 30, 2015
Production Stage Stream Interests
Mt. Milligan
Jun. 30, 2016
Production Stage Stream Interests
Pueblo Viejo
Jun. 30, 2016
Production Stage Stream Interests
Wassa and Prestea
Jun. 30, 2016
Production Stage Royalty Interests
Jun. 30, 2015
Production Stage Royalty Interests
Jun. 30, 2016
Production Stage Royalty Interests
Voisey's Bay
Jun. 30, 2015
Production Stage Royalty Interests
Voisey's Bay
Jun. 30, 2015
Production Stage Royalty Interests
Andacollo
Jun. 30, 2016
Production Stage Royalty Interests
Penasquito
Jun. 30, 2015
Production Stage Royalty Interests
Penasquito
Jun. 30, 2016
Production Stage Royalty Interests
Holt
Jun. 30, 2015
Production Stage Royalty Interests
Holt
Jun. 30, 2015
Production Stage Royalty Interests
Mulatos
Jun. 30, 2016
Production Stage Royalty Interests
Cortez
Jun. 30, 2015
Production Stage Royalty Interests
Cortez
Jun. 30, 2015
Production Stage Royalty Interests
Robinson
Jun. 30, 2016
Production Stage Royalty Interests
Other
Jun. 30, 2015
Production Stage Royalty Interests
Other
Jun. 30, 2016
Production Stage Stream and Royalty Interests
Jun. 30, 2015
Production Stage Stream and Royalty Interests
Jun. 30, 2016
Development Stage Royalty Interests
Jun. 30, 2015
Development Stage Royalty Interests
Jun. 30, 2016
Development Stage Royalty Interests
Other
Jun. 30, 2015
Development Stage Royalty Interests
Other
Jun. 30, 2016
Development Stage Royalty Interests
Pascua Lama
Jun. 30, 2015
Development Stage Royalty Interests
Pascua Lama
Jun. 30, 2016
Development Stage Stream Interests
Jun. 30, 2015
Development Stage Stream Interests
Jun. 30, 2016
Development Stage Stream Interests
Other
Jun. 30, 2015
Development Stage Stream Interests
Other
Jun. 30, 2016
Development Stage Stream Interests
Rainy River
Jun. 30, 2015
Development Stage Stream Interests
Pascua Lama
Jun. 30, 2016
Development Stage Stream and Royalty Interests
Jun. 30, 2015
Development Stage Stream and Royalty Interests
Jun. 30, 2016
Exploration Stage Royalty Interest
Jun. 30, 2015
Exploration Stage Royalty Interest
Jun. 30, 2016
Initial Royalty
RGLD Gold
Phoenix Gold
Rubicon Minerals Corporation
oz
Jun. 30, 2016
Subsequent Royalty
RGLD Gold
Phoenix Gold
Rubicon Minerals Corporation
Sep. 30, 2014
Production Stage and Exploration Stage Royalty Interest
Mar. 31, 2016
Production Stage and Exploration Stage Royalty Interest
Other
Stream and royalty interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
$ 3,551,575,000 
$ 2,647,976,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,878,045,000 
$ 388,182,000 
$ 783,046,000 
$ 783,046,000 
$ 610,404,000 
$ 96,413,000 
$ 881,873,000 
$ 1,129,230,000 
$ 205,724,000 
$ 150,138,000 
$ 272,998,000 
$ 99,172,000 
$ 99,172,000 
$ 34,612,000 
$ 34,612,000 
$ 48,092,000 
$ 10,630,000 
$ 10,630,000 
$ 17,825,000 
$ 531,735,000 
$ 495,763,000 
$ 2,759,918,000 
$ 1,912,276,000 
$ 447,071,000 
$ 84,026,000 
$ 66,414,000 
$ 8,183,000 
$ 380,657,000 
$ 75,843,000 
$ 188,589,000 
$ 439,122,000 
$ 87,883,000 
$ 67,017,000 
$ 100,706,000 
$ 372,105,000 
$ 635,660,000 
$ 523,148,000 
$ 155,997,000 
$ 212,552,000 
 
 
 
 
Accumulated Depletion
(607,370,000)
(536,029,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(122,064,000)
(18,286,000)
(74,060,000)
(35,195,000)
(21,902,000)
(7,816,000)
(485,153,000)
(500,834,000)
(85,671,000)
(76,141,000)
(65,467,000)
(29,898,000)
(24,555,000)
(17,124,000)
(13,950,000)
(32,313,000)
(10,000,000)
(9,933,000)
(12,748,000)
(342,460,000)
(265,727,000)
(607,217,000)
(536,029,000)
 
 
 
 
 
 
(153,000)
 
(153,000)
 
 
 
(153,000)
 
 
 
 
 
 
 
Impairments
(96,118,000)
(28,339,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(18,605,000)
(27,586,000)
 
 
 
 
 
 
 
 
 
 
 
(18,605,000)
(27,586,000)
(18,605,000)
(27,586,000)
 
(603,000)
 
(603,000)
 
 
(75,702,000)
 
(75,702,000)
 
 
 
(75,702,000)
(603,000)
(1,811,000)
(150,000)
 
 
 
 
Net
2,848,087,000 
2,083,608,000 
 
 
 
 
5,300,000 
 
 
 
 
12,000,000 
 
 
1,755,981,000 
369,896,000 
708,986,000 
747,851,000 
588,502,000 
88,597,000 
378,115,000 
600,810,000 
120,053,000 
73,997,000 
207,531,000 
69,274,000 
74,617,000 
17,488,000 
20,662,000 
15,779,000 
630,000 
697,000 
5,077,000 
170,670,000 
202,450,000 
2,134,096,000 
1,348,661,000 
447,071,000 
83,423,000 
66,414,000 
7,580,000 
380,657,000 
75,843,000 
112,734,000 
439,122,000 
12,028,000 
67,017,000 
100,706,000 
372,105,000 
559,805,000 
522,545,000 
154,186,000 
212,402,000 
 
 
 
 
Impairments of stream and royalty interests
96,118,000 
28,339,000 
3,127,000 
2,372,000 
 
75,702,000 
 
5,307,000 
25,967,000 
 
 
 
 
11,982,000 
 
 
 
600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,800,000 
3,100,000 
Allowance for royalty receivables
 
 
 
 
 
 
 
(385,000)
2,996,000 
 
 
 
 
2,855,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return of advance payment
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total impairments of stream and royalty interests and royalty receivables
98,588,000 
31,335,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of royalty interests acquired
 
 
 
 
 
 
 
 
 
 
 
0.00% 
9.445% 
 
 
 
2.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.30% 
3.15% 
 
 
Gold delivered (in ounces)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
135,000 
 
 
 
Royalty receivables
17,990,000 
37,681,000 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
2,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Material properties net related to investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Material properties net direct acquisition costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVAILABLE-FOR-SALE SECURITIES (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Available-for-sale securities
 
 
 
Cost Basis
 
$ 9,565 
 
Unrealized Loss
 
(3,292)
 
Fair Value
 
6,273 
 
Realized gain on available-for-sale security
2,340 
(183)
(4,499)
Seabridge
 
 
 
Available-for-sale securities
 
 
 
Cost Basis
 
9,565 
 
Unrealized Loss
 
(3,292)
 
Fair Value
 
6,273 
 
Realized gain on available-for-sale security
$ 2,300 
 
 
DEBT (Details) (USD $)
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2012
Long-term debt disclosure
 
 
 
 
Principal
$ 645,000,000 
$ 370,000,000 
 
 
Unamortized Discount
(36,943,000)
(47,890,000)
 
 
Debt Issuance Costs
(7,372,000)
(8,241,000)
 
 
Total debt
600,685,000 
313,869,000 
 
 
Interest payments on notes
17,691,000 
10,638,000 
10,638,000 
 
Convertible notes due 2019
 
 
 
 
Long-term debt disclosure
 
 
 
 
Principal
370,000,000 
370,000,000 
 
 
Unamortized Discount
(36,943,000)
(47,890,000)
 
 
Debt Issuance Costs
(3,934,000)
(5,180,000)
 
 
Total debt
329,123,000 
316,930,000 
 
 
Aggregate principal amount of convertible senior notes issued
 
 
 
370,000,000 
Interest rate on convertible senior notes (as a percent)
 
 
 
2.875% 
Interest expense recognized
22,800,000 
22,100,000 
21,400,000 
 
Interest payments on notes
10,600,000 
10,600,000 
 
 
Revolving credit facility
 
 
 
 
Long-term debt disclosure
 
 
 
 
Principal
275,000,000 
 
 
 
Debt Issuance Costs
(3,438,000)
(3,061,000)
 
 
Total debt
271,562,000 
(3,061,000)
 
 
Maximum availability under the revolving credit facility
650,000,000 
 
 
 
Outstanding amount under credit facility
275,000,000 
 
 
Available under the revolving credit facility
$ 375,000,000 
 
 
 
Revolving credit facility |
LIBOR
 
 
 
 
Long-term debt disclosure
 
 
 
 
Revolving credit facility, basis spread on interest rate (as a percent)
2.25% 
 
 
 
Effective interest rate (as percent)
2.89% 
 
 
 
Revolving credit facility |
Minimum |
LIBOR
 
 
 
 
Long-term debt disclosure
 
 
 
 
Revolving credit facility, basis spread on interest rate (as a percent)
1.25% 
 
 
 
Revolving credit facility |
Maximum |
LIBOR
 
 
 
 
Long-term debt disclosure
 
 
 
 
Revolving credit facility, basis spread on interest rate (as a percent)
3.00% 
 
 
 
REVENUE (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
REVENUE
 
 
 
 
 
 
 
 
 
 
 
Stream interests
 
 
 
 
 
 
 
 
$ 121,762 
$ 183,915 
$ 209,953 
Royalty interests
 
 
 
 
 
 
 
 
238,028 
94,104 
27,209 
Total revenue
$ 94,129 
$ 93,487 
$ 98,118 
$ 74,056 
$ 73,579 
$ 74,110 
$ 61,304 
$ 69,026 
$ 359,790 
$ 278,019 
$ 237,162 
STOCK-BASED COMPENSATION (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Nov. 30, 2015
Stock-based compensation
 
 
 
 
Common stock authorized for future grants to officers, directors, key employees and other persons (in shares)
 
 
 
2,500,000 
Stock-based compensation expense
$ 10,039 
$ 5,141 
$ 2,580 
 
Stock Options
 
 
 
 
Stock-based compensation
 
 
 
 
Stock-based compensation expense
454 
417 
468 
 
Stock Appreciation Rights
 
 
 
 
Stock-based compensation
 
 
 
 
Stock-based compensation expense
1,687 
1,422 
1,305 
 
Restricted stock
 
 
 
 
Stock-based compensation
 
 
 
 
Stock-based compensation expense
3,686 
2,511 
3,110 
 
Performance Shares
 
 
 
 
Stock-based compensation
 
 
 
 
Stock-based compensation expense
4,212 
791 
 
 
Stock-based compensation expense (reversal)
 
 
$ (2,303)
 
STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE (Details) (USD $)
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Stock options, number of shares
 
 
 
Exercised (in shares)
(2,500)
(20,488)
(34,495)
Stock Options
 
 
 
Key assumptions used in Black-Scholes model to determine the fair value of each stock option and SAR
 
 
 
Weighted-average expected volatility (as a percent)
36.90% 
37.30% 
43.60% 
Weighted-average expected life (in years)
5 years 6 months 
5 years 6 months 
5 years 6 months 
Weighted-average dividend yield (as a percent)
1.06% 
1.00% 
1.00% 
Weighted-average risk free interest rate (as a percent)
1.60% 
1.70% 
1.70% 
Stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
96,155 
 
 
Granted (in shares)
25,437 
 
 
Exercised (in shares)
(2,500)
 
 
Forfeited (in shares)
(1,269)
 
 
Outstanding at the end of the period (in shares)
117,823 
96,155 
 
Exercisable at the end of the period (in shares)
73,366 
 
 
Stock options, weighted-average exercise price
 
 
 
Outstanding at the beginning of the period (in dollars per share)
$ 59.28 
 
 
Granted (in dollars per share)
$ 55.71 
 
 
Exercised (in dollars per share)
$ 28.78 
 
 
Forfeited (in dollars per share)
$ 69.94 
 
 
Outstanding at the end of the period (in dollars per share)
$ 59.04 
$ 59.28 
 
Exercisable at the end of the period (in dollars per share)
$ 57.46 
 
 
Stock options, weighted-average remaining contractual life (in years)
 
 
 
Outstanding at the end of the period
6 years 4 months 24 days 
 
 
Exercisable at the end of the period
5 years 1 month 6 days 
 
 
Stock options, Aggregate Intrinsic Value
 
 
 
Outstanding at the end of the period
$ 1,632,000 
 
 
Exercisable at the end of the period
1,129,000 
 
 
Granted (in dollars per share)
$ 18.05 
$ 24.86 
$ 22.78 
Intrinsic value of options exercised
100,000 
700,000 
1,100,000 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
500,000 
 
 
Weighted-average vesting period (years)
1 year 8 months 12 days 
 
 
Contractual term of awards
10 years 
 
 
Stock Options |
Minimum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
1 year 
 
 
Stock Options |
Maximum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
3 years 
 
 
Stock Appreciation Rights
 
 
 
Key assumptions used in Black-Scholes model to determine the fair value of each stock option and SAR
 
 
 
Weighted-average expected volatility (as a percent)
36.90% 
36.60% 
41.30% 
Weighted-average expected life (in years)
5 years 4 months 24 days 
5 years 3 months 18 days 
4 years 9 months 18 days 
Weighted-average dividend yield (as a percent)
1.00% 
1.00% 
1.00% 
Weighted-average risk free interest rate (as a percent)
1.60% 
1.70% 
1.50% 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
1,900,000 
 
 
Weighted-average vesting period (years)
1 year 8 months 12 days 
 
 
Contractual term of awards
10 years 
 
 
Granted (in dollars per share)
$ 18.35 
$ 24.42 
$ 21.15 
Non-vested other than stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
277,118 
 
 
Granted (in shares)
97,817 
 
 
Exercised (in shares)
(7,000)
 
 
Forfeited (in shares)
(130)
 
 
Outstanding at the end of the period (in shares)
367,805 
277,118 
 
Exercisable at the end of the period (in shares)
194,863 
 
 
Other than stock options, weighted-average exercise price
 
 
 
Outstanding at the beginning of the period (in dollars per share)
$ 63.91 
 
 
Granted (in dollars per share)
$ 56.54 
 
 
Exercised (in dollars per share)
$ 30.96 
 
 
Forfeited (in dollars per share)
$ 62.14 
 
 
Outstanding at the end of the period (in dollars per share)
$ 62.58 
$ 63.91 
 
Exercisable at the end of the period (in dollars per share)
$ 62.24 
 
 
Other than stock options, weighted-average remaining contractual life (in years)
 
 
 
Outstanding at the end of the period
7 years 1 month 6 days 
 
 
Exercisable at the end of the period
5 years 8 months 12 days 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value
 
 
 
Outstanding at the end of the period
3,861,000 
 
 
Exercisable at the end of the period
2,106,000 
 
 
Weighted-average grant date fair value (in dollars per share)
$ 18.35 
$ 24.42 
$ 21.15 
Total intrinsic value of SSARs exercised
300,000 
200,000 
100,000 
Other than stock options, weighted-average grant date fair value
 
 
 
Non-vested at the beginning of the period (in dollars per share)
$ 24.42 
$ 21.15 
 
Non-vested at the end of the period (in dollars per share)
$ 18.35 
$ 24.42 
$ 21.15 
Stock Appreciation Rights |
Minimum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
1 year 
 
 
Stock Appreciation Rights |
Maximum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
3 years 
 
 
Performance Shares
 
 
 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
2,300,000 
 
 
Weighted-average vesting period (years)
1 year 6 months 
 
 
Granted (in dollars per share)
$ 63.78 
 
 
Non-vested other than stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
200,325 
 
 
Granted (in shares)
48,422 
 
 
Vested (in shares)
(10,781)
 
 
Expired (in shares)
(23,750)
 
 
Forfeited (in shares)
(4,038)
 
 
Outstanding at the end of the period (in shares)
210,178 
 
 
Other than stock options, weighted-average exercise price
 
 
 
Granted (in dollars per share)
$ 45.63 
 
 
Expired (in dollars per share)
$ 49.66 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value
 
 
 
Weighted-average grant date fair value (in dollars per share)
$ 63.78 
 
 
Other than stock options, weighted-average grant date fair value
 
 
 
Non-vested at the beginning of the period (in dollars per share)
$ 66.52 
 
 
Vested (in dollars per share)
$ 75.06 
 
 
Forfeited (in dollars per share)
$ 35.15 
 
 
Non-vested at the end of the period (in dollars per share)
$ 63.78 
 
 
Performance Shares
 
 
 
Percentage of interim earn out basis for vesting, one
25.00% 
 
 
Percentage of interim earn out basis for vesting, two
50.00% 
 
 
Percentage of interim earn out basis for vesting, three
75.00% 
 
 
Percentage of interim earn out basis for vesting, four
100.00% 
 
 
Gold Equivalent Ounces Shares
 
 
 
Unrecognized stock-based compensation expense
 
 
 
Contractual term of awards
5 years 
 
 
Gold Equivalent Ounces Shares |
Vesting upon achievement of annual growth in Net GEOs
 
 
 
Unrecognized stock-based compensation expense
 
 
 
SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage
0.50% 
 
 
Total Shareholder Return Shares
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
3 years 
 
 
Unrecognized stock-based compensation expense
 
 
 
Contractual term of awards
3 years 
 
 
Granted (in dollars per share)
$ 35.15 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value
 
 
 
Weighted-average grant date fair value (in dollars per share)
$ 35.15 
 
 
Other than stock options, weighted-average grant date fair value
 
 
 
Non-vested at the end of the period (in dollars per share)
$ 35.15 
 
 
Total Shareholder Return Shares |
Vesting upon achievement of annual growth in Net TSR
 
 
 
Unrecognized stock-based compensation expense
 
 
 
SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage
0.50% 
 
 
Restricted stock
 
 
 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
$ 5,500,000 
 
 
Weighted-average vesting period (years)
3 years 
 
 
Granted (in dollars per share)
$ 63.46 
 
 
Non-vested other than stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
154,807 
 
 
Granted (in shares)
73,187 
 
 
Vested (in shares)
(51,472)
 
 
Outstanding at the end of the period (in shares)
176,522 
 
 
Other than stock options, weighted-average exercise price
 
 
 
Granted (in dollars per share)
$ 56.25 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value
 
 
 
Weighted-average grant date fair value (in dollars per share)
$ 63.46 
 
 
Other than stock options, weighted-average grant date fair value
 
 
 
Non-vested at the beginning of the period (in dollars per share)
$ 66.23 
 
 
Vested (in dollars per share)
$ 61.54 
 
 
Non-vested at the end of the period (in dollars per share)
$ 63.46 
 
 
Restricted stock |
Officers and Certain Employees
 
 
 
Non-vested other than stock options, number of shares
 
 
 
Granted (in shares)
50,507 
 
 
Restricted Stock
 
 
 
Vesting period of awards granted to officers and certain employees
3 years 
 
 
Holding period of awards granted to officers and certain employees, as a vesting condition
2 years 
 
 
Fraction of the shares granted to officers and certain employees, vesting in year three
0.33% 
 
 
Fraction of the shares granted to officers and certain employees, vesting in year four
0.33% 
 
 
Fraction of the shares granted to officers and certain employees, vesting in year five
0.33% 
 
 
Restricted stock |
Non Executive Directors
 
 
 
Non-vested other than stock options, number of shares
 
 
 
Granted (in shares)
22,680 
 
 
Restricted Stock
 
 
 
Vesting period of awards granted to officers and certain employees
1 year 
 
 
Percentage of shares granted to non-executive directors, vesting immediately upon grant
50.00% 
 
 
Percentage of shares granted to non-executive directors, vesting one year after date of grant
50.00% 
 
 
STOCKHOLDERS' EQUITY (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2016
item
Jun. 30, 2015
Jun. 30, 2014
Preferred Stock
 
 
 
Number of authorized and unissued shares (in shares)
10,000,000 
10,000,000 
 
Preferred stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
 
Common Stock Issuances
 
 
 
Number of stock options exercised (in shares)
2,500 
20,488 
34,495 
Proceeds from stock options exercised
$ 0.1 
$ 0.8 
$ 1.1 
Stockholders' Rights Plan
 
 
 
Number of preferred stock purchase rights for each share of Company common stock held
 
 
Minimum percentage of company's outstanding shares of common stock accumulated by acquiring party for rights to become exercisable
15.00% 
 
 
Fraction of newly issued share of Series A junior participating preferred stock that could be purchased, for each Right
0.001 
 
 
Value of a share of the Company's common stock allowed to be purchased for each Right, as a multiple of the exercise price of the Right
2.00 
 
 
Initial exercise price of the Right (in dollars per right)
$ 175 
 
 
EARNINGS PER SHARE ("EPS") (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
EARNINGS PER SHARE ("EPS")
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to Royal Gold common stockholders
$ 20,439 
$ (67,656)
$ 15,114 
$ (45,046)
$ 14,819 
$ 25,014 
$ (6,548)
$ 18,680 
$ (77,149)
$ 51,965 
$ 62,641 
Weighted-average shares for basic EPS
 
 
 
 
 
 
 
 
65,074,455 
65,007,861 
64,909,149 
Effect of other dilutive securities (in shares)
 
 
 
 
 
 
 
 
 
117,312 
117,107 
Weighted-average shares for diluted EPS
 
 
 
 
 
 
 
 
65,074,455 
65,125,173 
65,026,256 
Basic (loss) earnings per share (in dollars per share)
$ 0.32 
$ (1.04)
$ 0.23 
$ (0.69)
$ 0.23 
$ 0.38 
$ (0.10)
$ 0.29 
$ (1.18)
$ 0.80 
$ 0.96 
Diluted (loss) earnings per share (in dollars per share)
$ 0.32 
$ (1.04)
$ 0.23 
$ (0.69)
$ 0.23 
$ 0.38 
$ (0.10)
$ 0.29 
$ (1.18)
$ 0.80 
$ 0.96 
Impact on diluted earnings per share (in dollars per share)
 
 
 
 
 
 
 
 
$ 0 
 
 
2019 Conversion Notes, Initial conversion price per share of common stock (in dollars per share)
$ 105 
 
 
 
 
 
 
 
$ 105 
 
 
INCOME TAXES (Details) (USD $)
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Income before income taxes
 
 
 
United States
$ (230,000)
$ 17,569,000 
$ 17,033,000 
Foreign
(21,528,000)
44,675,000 
65,894,000 
Income before income taxes
(21,758,000)
62,244,000 
82,927,000 
Current:
 
 
 
Federal
45,878,000 
22,418,000 
(3,663,000)
State
135,000 
(36,000)
334,000 
Foreign
19,650,000 
14,835,000 
30,950,000 
Total current income tax expenses
65,663,000 
37,217,000 
27,621,000 
Deferred and others:
 
 
 
Federal
(6,986,000)
(5,506,000)
(4,122,000)
State
(78,000)
(49,000)
(26,000)
Foreign
2,081,000 
(22,096,000)
(4,018,000)
Total deferred and other income tax expenses
(4,983,000)
(27,651,000)
(8,166,000)
Total income tax expenses
60,680,000 
9,566,000 
19,455,000 
Differences between provision for income taxes and income tax expense computed by applying federal rates
 
 
 
Total expense computed by applying federal rates
(7,615,000)
21,786,000 
29,024,000 
State and provincial income taxes, net of federal benefit
(1,000)
25,000 
334,000 
Excess depletion
(882,000)
(1,429,000)
(1,114,000)
Estimates for uncertain tax positions
1,866,000 
1,404,000 
(7,386,000)
Statutory tax attributable to non-controlling interest
1,838,000 
(211,000)
(293,000)
Effect of foreign earnings
61,576,000 
6,536,000 
1,141,000 
Effect of foreign earnings indefinitely reinvested
3,406,000 
(7,601,000)
(1,700,000)
Unrealized foreign exchange gains
(2,439,000)
(10,949,000)
(367,000)
Changes in estimates
1,641,000 
(359,000)
(594,000)
Other
1,290,000 
(1,225,000)
410,000 
Total income tax expenses
60,680,000 
9,566,000 
19,455,000 
Deferred tax assets:
 
 
 
Stock-based compensation
5,691,000 
4,393,000 
 
Net operating losses
12,385,000 
16,087,000 
 
Other
4,610,000 
3,904,000 
 
Total deferred tax assets
22,686,000 
24,384,000 
 
Valuation allowance
(2,100,000)
(4,262,000)
 
Net deferred tax assets
20,586,000 
20,122,000 
 
Deferred tax liabilities:
 
 
 
Mineral property basis
(127,337,000)
(133,646,000)
 
Unrealized foreign exchange gains
(1,273,000)
 
 
Unrealized foreign exchange losses
 
936,000 
 
2019 Notes
(12,639,000)
(16,384,000)
 
Other
(124,000)
(1,658,000)
 
Total deferred tax liabilities
(141,373,000)
(150,752,000)
 
Total net deferred taxes
(120,787,000)
(130,630,000)
 
Net operating loss carry forwards
 
 
 
Net operating loss carry forwards
59,500,000 
55,000,000 
 
Reconciliation of beginning and ending amount of gross unrecognized tax benefits
 
 
 
Total gross unrecognized tax benefits at beginning of year
15,130,000 
13,725,000 
21,166,000 
Additions / Reductions for tax positions of current year
1,866,000 
1,662,000 
(1,052,000)
Reductions due to settlements with taxing authorities
 
(257,000)
(296,000)
Reductions due to lapse of statute of limitations
 
 
(6,093,000)
Total amount of gross unrecognized tax benefits at end of year
16,996,000 
15,130,000 
13,725,000 
Net unrecognized tax benefits
 
 
 
Expiration period of statute of limitations for income tax examinations
12 months 
 
 
Accrued income-tax-related interest and penalties
5,700,000 
4,600,000 
 
Canada
 
 
 
Differences between provision for income taxes and income tax expense computed by applying federal rates
 
 
 
Income tax rate adjustment/ reform
 
4,070,000 
 
Chile
 
 
 
Differences between provision for income taxes and income tax expense computed by applying federal rates
 
 
 
Income tax rate adjustment/ reform
 
$ (2,481,000)
 
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Cash paid during the period for :
 
 
 
Interest
$ 17,691 
$ 10,638 
$ 10,638 
Income taxes, net of refunds
76,072 
20,272 
27,322 
Non-cash investing and financing activities:
 
 
 
Dividends declared
$ 59,388 
$ 56,715 
$ 54,049 
FAIR VALUE MEASUREMENTS (Details) (Recurring basis, USD $)
Jun. 30, 2016
Carrying Amount
 
Assets:
 
Warrants
$ 2,438,000 
Liabilities:
 
Debt
410,057,000 
Amount of equity component of convertible notes
77,000,000 
Fair Value
 
Assets:
 
Warrants
2,438,000 
Total assets
2,438,000 
Liabilities:
 
Debt
390,813,000 
Total liabilities
390,813,000 
Level 1
 
Liabilities:
 
Debt
390,813,000 
Total liabilities
390,813,000 
Level 2
 
Assets:
 
Warrants
2,438,000 
Total assets
$ 2,438,000 
MAJOR SOURCES OF REVENUE (Details) (Sales Revenue, Services, Net, Customer Concentration Risk, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
Thompson Creek
 
 
 
Major sources of revenue
 
 
 
Revenue
$ 125,438 
$ 94,104 
$ 27,209 
Percentage of total revenue
34.90% 
33.80% 
11.50% 
Barrick
 
 
 
Major sources of revenue
 
 
 
Revenue
49,683 
24,849 
19,456 
Percentage of total revenue
13.80% 
8.90% 
8.20% 
Teck
 
 
 
Major sources of revenue
 
 
 
Revenue
$ 49,243 
$ 38,033 
$ 48,777 
Percentage of total revenue
13.70% 
13.70% 
20.60% 
COMMITMENTS AND CONTINGENCIES (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jun. 30, 2016
Rainy River
 
Commitments and Contingencies
 
Remaining commitment amount
$ 75.00 
Wassa and Prestea
 
Commitments and Contingencies
 
Remaining commitment amount
50.00 
Ilovica
 
Commitments and Contingencies
 
Remaining commitment amount
$ 163.75 
Voisey's Bay |
Altius
 
Commitments and Contingencies
 
Percentage of ownership interest held in Labrador Nickel Royalty Limited Partnership ("LNRLP")
10.00% 
Voisey's Bay |
Voisey's Bay Holding Corporation
 
Commitments and Contingencies
 
Percentage of ownership interest held in Labrador Nickel Royalty Limited Partnership ("LNRLP")
90.00% 
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2014
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 94,129 
$ 93,487 
$ 98,118 
$ 74,056 
$ 73,579 
$ 74,110 
$ 61,304 
$ 69,026 
$ 359,790 
$ 278,019 
$ 237,162 
Operating income (loss)
28,516 
(72,058)
27,173 
21,185 
27,568 
32,150 
(2,022)
29,539 
4,816 
87,235 
108,720 
Net (loss) income attributable to Royal Gold stockholders
$ 20,439 
$ (67,656)
$ 15,114 
$ (45,046)
$ 14,819 
$ 25,014 
$ (6,548)
$ 18,680 
$ (77,149)
$ 51,965 
$ 62,641 
Basic (loss) earnings per share (in dollars per share)
$ 0.32 
$ (1.04)
$ 0.23 
$ (0.69)
$ 0.23 
$ 0.38 
$ (0.10)
$ 0.29 
$ (1.18)
$ 0.80 
$ 0.96 
Diluted (loss) earnings per share (in dollars per share)
$ 0.32 
$ (1.04)
$ 0.23 
$ (0.69)
$ 0.23 
$ 0.38 
$ (0.10)
$ 0.29 
$ (1.18)
$ 0.80 
$ 0.96 
SUBSEQUENT EVENTS (Details) (Subsequent events, Mount Milligan streaming agreement, Centerra, Thompson Creek)
0 Months Ended
Jul. 5, 2016
Jul. 4, 2016
Subsequent events |
Mount Milligan streaming agreement |
Centerra |
Thompson Creek
 
 
Subsequent event
 
 
Gold streaming interest
35.00% 
52.25% 
Copper streaming interest
18.75% 
 
Percentage Of spot price
15.00%