Royal Gold Reports Record Revenue and Record Free Cash Flow for Fiscal 2008



    
    - Revenue and free cash flow* increased 43% and 47%, respectively,
    year-over-year

    - Fiscal 2008 free cash flow* totaled 80% of revenue

    - Significant portfolio expansion with planned acquisition of Barrick
    Gold's royalty portfolio

    
    DENVER, Aug. 14 /CNW/ -- Royal Gold, Inc. (Nasdaq:   RGLD; TSX: RGL), the
leading precious metals royalty company, today announced record revenues of
$69.4 million for fiscal 2008 (ended June 30), a 43% increase over revenues of
$48.4 million in fiscal 2007.  The Company also reported net income of $26.1
million for fiscal 2008, up 32% compared to net income of $19.7 million for
fiscal 2007.  Net income available to common stockholders for fiscal 2008 was
reduced by payment of preferred dividends and a non-cash preferred share
conversion adjustment totaling $4.8 million or $0.15 per basic share.  This
resulted in net income available to common stockholders for fiscal 2008 of
$21.3 million, or $0.69 per basic share, compared to $19.7 million, or $0.79
per basic share for fiscal 2007.
    For the fourth quarter ended June 30, 2008, royalty revenue totaled $21.7
million, a 51% increase over royalty revenue of $14.4 million for the same
period in fiscal 2007. The Company reported fourth quarter 2008 net income of
$7.9 million, or $0.24 per basic share, as compared to net income of $5.7
million, or $0.20 per basic share for the fourth quarter of fiscal 2007.
    Free cash flow for fiscal 2008 was $55.8 million, or 80% of revenues,
compared to $37.9 million, or 78% of revenues for fiscal 2007.  Free cash flow
for the fourth quarter was $18.3 million, or 84% of revenue compared with free
cash flow of $11.3 million, or 78% of revenues, for the same period ended June
30, 2007.
    As of June 30, 2008, the Company had a working capital surplus of $204.1
million.  Current assets were $211.4 million (including $192.0 million in
unrestricted cash), compared to current liabilities of $7.3 million, resulting
in a current ratio of 29 to 1.
    Tony Jensen, President and CEO, commented, "Our record results for fiscal
2008 reflect the continued execution of our long-term growth plan, as well as
strong performance from our producing properties and robust commodity prices.
Over 75% of our fiscal 2008 revenue was derived from precious metals as both
Leeville and Taparko, two of our key gold development-stage royalties, began
to make significant contributions over the past year.  Looking ahead to fiscal
2009, we expect three additional development projects in our current portfolio
-- Penasquito, Dolores and Benso -- to come online and provide additional
sources of new revenue."
    Jensen continued, "We are also pleased to have announced the expansion
and diversification of our portfolio with the planned acquisition of Barrick
Gold's royalty package.   Beyond providing immediate royalty revenue and cash
flow, this transaction will add significant strength to all phases of our
portfolio -- producing royalties, evaluation and development projects, and
exploration properties.  We are pleased with our progress in 2008 and believe
that we have taken the steps necessary to position Royal Gold as the leading
precious metals royalty company for years to come."
    
    PROPERTY HIGHLIGHTS
    
    Production declines for fiscal 2008 at the Cortez Pipeline Mining Complex
("Cortez") and the Goldstrike SJ Claims were more than offset by higher gold
prices, which averaged $821 in fiscal 2008 compared to $638 for fiscal 2007.
Increased commodity prices and greater production at Robinson and Leeville,
new revenue received from properties acquired during the year, and the start-
up of production at Taparko contributed to record financial results.
    
    Robinson
    
    Quadra Mining recently announced updated production guidance for calendar
year 2008 at its Robinson mine.  The yearly production estimate for calendar
2008 at the Robinson mine has increased from 100,000 ounces to 115,000 ounces
of gold and from 130 million pounds to 150 million pounds of copper.
    
    Martha
    
    Coeur d'Alene ("Coeur") reported that the Martha mine produced 1.3
million ounces of silver during the first half of calendar 2008.  Upon further
consultation with Coeur, annual production is budgeted at 3.2 million ounces
for calendar 2008 instead of 5.0 million ounces as previous reported to the
Company.  The new mill is now operating efficiently and Coeur expects
increased tons to be processed during the third and fourth calendar quarters,
resulting in higher production levels.
    
    Penasquito
    
    Goldcorp recently reported that construction is progressing well at
Penasquito and that several construction milestones were completed during the
second quarter.  The oxide plant was commissioned and the first gold was
poured on May 10, 2008.  Production of 1,600 ounces of gold and 91,600 ounces
of silver was achieved in the quarter.  Goldcorp is estimating production of
approximately 67,000 ounces of gold and 2.3 million ounces of silver in
calendar 2008.
    
    Dolores
    
    Minefinders Corporation recently reported that its initial gold and
silver pour at the Dolores mine has been delayed from mid-July until later in
the third calendar quarter due to a blockade that was established in May by a
group of protesters.  Minefinders stated that they will provide an updated
2008 production schedule in the near future.   Their original production
estimate for calendar 2008 was 40,000 ounces of gold and 1.0 million ounces of
silver.
    
    Taparko
    
    The Taparko mine commenced gold production in July 2007 and contributed
$7.4 million in royalty revenue for the fiscal year.  Reserve characteristics,
mining activity, and gold recovery performance have been near feasibility
study estimates.  However, mill performance has suffered throughout the year
due to problems associated with the grinding mill drive-train.  This has
resulted in low mill availability and throughput.  Several problems with the
original installation were identified and corrected but mechanical problems
have persisted.  Production was ceased on June 11, 2008, and the entire drive-
train was re-evaluated and is now in the process of re-assembly with the
assistance of third party mill equipment specialists.  Continuous and
sustained production is dependent upon resolving the mill drive-train
problems.
    Fiscal year end and fourth quarter production and revenue for each of the
Company's active royalty interests are shown in Tables 1 and 2.  For more
detailed information about each of our royalty properties, please refer to the
Company's most recent Annual Report on Form 10-K or our website, located at
http://www.royalgold.com.
    
    OTHER DEVELOPMENTS
    Agreement to Acquire Barrick Gold Royalty Portfolio
    
    On July 31, 2008, the Company entered into a definitive agreement to
acquire a portfolio of royalties from Barrick Gold ("Barrick") for
consideration of $150 million in net cash and a restructuring of certain
Company royalty positions at Cortez in Nevada. The portfolio consists of
royalties on 77 properties, including eight producing properties.  Over 75% of
the portfolio consists of precious metals royalties.  The purchase price for
the acquisition will be paid from cash on hand and the transaction is expected
to close on October 1, 2008.
    Currently, Royal Gold holds four gold royalty interests at Cortez,
consisting of two sliding-scale gross smelter return ("GSR") royalties ("GSR1
and GSR2"), a fixed rate GSR royalty ("GSR3") and a net value return royalty
("NVR1").  As consideration for the acquisition, Royal Gold will pay Barrick
$150 million in net cash and reduce the GSR2 royalty, ranging from 0.72% to
9.0%, to match the current GSR1 royalty rate ranging from 0.40% to 5.0%. Royal
Gold also will eliminate its interest in the 0.71% GSR3 and the 0.39% NVR1
royalties on the mining claims that comprise the undeveloped Crossroads
deposit.  The GSR3 and NVR1 royalties that cover areas outside of the
Crossroads deposit at Cortez will not be affected by this transaction.  The
Crossroads deposit will continue to be subject to Royal Gold's GSR2 royalty at
the reduced royalty rate.
    Barrick has announced that it is currently investing exploration and
engineering resources to advance the development of the Crossroads project and
is targeting over 1.0 million ounces of reserves by year end.
    The transaction is expected to be immediately accretive on all key
financial measures.  Royalty revenue generated from the Barrick portfolio in
calendar 2007 was approximately $12.0 million.  This royalty package
complements Royal Gold's existing geographical royalty positions with
significant growth into Canada and Australia.
    
    ROYALTY DEFINITIONS
    
    The Company's royalty portfolio contains several different types of
royalties which are defined as follows:
    Royalty - the right to receive a percentage or other denomination of
mineral production from a resource extraction operation.
    Gross Smelter Return ("GSR") Royalty - a defined percentage of the gross
revenue from a resource extraction operation, less, if applicable, certain
contract-defined costs paid by or charged to the operator.
    Net Smelter Return ("NSR") Royalty - a defined percentage of the gross
revenue from a resource extraction operation, less a proportionate share of
incidental transportation, insurance, refining and smelting costs.
    Net Value Royalty ("NVR") - a defined percentage of the gross revenue
from a resource extraction operation, less certain contract-defined
transportation costs, milling costs and taxes.
    Net Profits Interest Royalty ("NPI") - a defined percentage of the gross
revenue from a resource extraction operation, after recovery of certain
contract-defined pre-production costs, and after deduction of certain
contract-defined mining, milling, processing, transportation, administrative,
marketing and other costs.
    Royal Gold, the leading precious metals royalty company, is engaged in
the acquisition and management of precious metals royalty interests.  Royal
Gold is publicly traded on the NASDAQ Global Select Market under the symbol
"RGLD," and on the Toronto Stock Exchange under the symbol "RGL."  The
Company's web page is located at http://www.royalgold.com.
    Note: Management's conference call reviewing the fourth quarter and year
end for fiscal 2008 will be held today at 10:00 a.m. Mountain Time (noon
Eastern Time) and will be available by calling (800) 603-2779 or (706) 634-
7230, access #43495505.  The call will be simultaneously broadcast on the
Company's web site at http://www.royalgold.com under the "Presentations"
section.  A replay of this web cast will be available on the Company's web
site approximately two hours after the call ends.
    Cautionary "Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995:  With the exception of historical matters, the
matters discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from projections or estimates contained herein.  Such
forward-looking statements include statements regarding strong financial
performance, continued execution of our long-term growth plan, robust
commodity prices, new revenue from three additional development stage projects
in fiscal 2009, receipt of immediate royalty revenues and cash flow from the
Barrick royalty package, the Barrick transaction being immediately accretive
on all key financial measures, and the addition of significant strength to
Royal Gold's royalty portfolio upon the completion of the Barrick transaction,
estimated closing of the Barrick transaction, operator's construction or
development timeframes, and operator reserve and production estimates. 
Factors that could cause actual results to differ materially from projections
include, among others, precious metals prices, performance of and production
at our royalty properties, decisions and activities of the operators of our
royalty properties, unanticipated grade, geological, metallurgical, processing
or other problems the operators of the mining properties may encounter,
changes in project parameters as plans continue to be refined, results of
current or planned exploration activities, management's ability to increase
our cash flow, revenues and margins, Royal Gold's  and Barrick's ability to
consummate the Barrick transaction, and economic and market conditions, as
well as other factors described elsewhere in this press release and in our
Annual Report on Form 10-K, and other filings with the Securities and Exchange
Commission. Most of these factors are beyond the Company's ability to predict
or control. The Company disclaims any obligation to update any forward-looking
statement made herein.  Readers are cautioned not to put undue reliance on
forward- looking statements.
    *Free Cash Flow:  The Company discloses information on free cash flow and
free cash flow as a percentage of revenues in its reporting.  The Company
defines free cash flow as operating income plus depreciation, depletion and
amortization, non-cash charges, and any impairment of mining assets less
minority interest in income of consolidated subsidiary.  While we believe free
cash flow is a useful measure of the Company's performance, we also want to
advise that this is not a measure recognized by generally accepted accounting
principles.  See Schedule A, attached to this press release.

    
    *  The Company defines free cash flow, a non-GAAP financial measure, as
       operating income plus depreciation, depletion and amortization,
       non-cash charges and impairment of mining assets, if any, less minority
       interest in income of consolidated subsidiary (see, Schedule A).
    


    
                                   TABLE 1
                 Royalty Production and Revenue - Fiscal 2008
    

    
    PROPERTY        ROYALTY      OPERATOR     METAL      YEAR ENDED
                                                        JUNE 30, 2008
                                                     Royalty
                                                     Revenue     Reported
                                                  ($ Millions)  Production(1)
    Cortez           GSR1(2)      Barrick       Gold   25.1    436,000 oz.
     (Pipeline       GSR2
     Mining          GSR3
     Complex)        NVR1
    

    
    Robinson(3)     3.0% NSR       Quadra       Gold   16.6    121,000 oz.
                                              Copper           139.0M lbs.
    Goldstrike
    (SJ Claims)     0.9% NSR      Barrick       Gold    5.1    698,000 oz.
    

    
    Leeville        1.8% NSR      Newmont       Gold    5.6    361,000 oz.
    

    
    Taparko         TB-GSR14   High River       Gold    7.4     36,000 oz.
                     TB-GSR2                                         (5,6)
    

    
    Don Mario       3.0% NSR       Orvana       Gold    1.4  63,000 oz.(6)
    Mulatos    0.30-1.5% NSR       Alamos       Gold    1.5 121,000 oz.(8)
              (sliding-scale)
    

    
    Troy            7.0% GSR       Revett     Silver    2.5 744,000 oz.(9)
                                              Copper             7.1M lbs.
    

    
    Martha          2.0% NSR        Coeur     Silver  0.983       3.2M oz.
                                  d'Alene
    

    
    Williams       0.72% NSR     Barrick/       Gold  0.613 106,000 oz.(6)
                             Teck Cominco
    

    
    El Limon        3.0% NSR  Central Sun       Gold  0.708  28,000 oz.(6)
                                   Mining
    

    
    Bald       1.75-3.5% NSR      Barrick       Gold  0.607     50,000 oz.
    Mountain  (sliding-scale)
    

    
    El Chanate  2.0-4.0% NSR      Capital       Gold    1.1     21,000 oz.
              (sliding-scale)        Gold                           (6,10)
                     10% NPI
    

    
    Penasquito      2.0% NSR     Goldcorp       Gold  0.059   1,600 oz.(6)
                                              Silver            92,000 oz.
    


    
    PROPERTY        ROYALTY      OPERATOR     METAL       YEAR ENDED
                                                       JUNE 30, 2007
                                                    Royalty
                                                    Revenue     Reported
                                                  ($ Millions) Production(1)
    Cortez           GSR1(2)     Barrick       Gold   21.5    510,000 oz.
     (Pipeline       GSR2
     Mining          GSR3
     Complex)        NVR1
    

    
    Robinson(3)     3.0% NSR      Quadra       Gold   12.6     81,000 oz.
                                             Copper           116.9M lbs.
    Goldstrike
     (SJ Claims)    0.9% NSR     Barrick       Gold    5.5    950,000 oz.
    

    
    Leeville        1.8% NSR     Newmont       Gold    2.7    230,000 oz.
    

    
    Taparko         TB-GSR14  High River       Gold  --(7)          --(7)
                     TB-GSR2
    

    
    Don Mario        3.0% NSR      Orvana       Gold  --(7)          --(7)
    

    
    Mulatos    0.30-1.5% NSR      Alamos       Gold    1.0    103,000 oz.
              (sliding-scale)
    

    
    Troy            7.0% GSR      Revett     Silver    3.1       1.0M oz.
                                             Copper             9.6M lbs.
    

    
    Martha          2.0% NSR       Coeur     Silver  0.714       2.9M oz.
                                 d'Alene
    

    
    Williams       0.72% NSR    Barrick/       Gold  --(7)          --(7)
                             Teck Cominco
    

    
    El Limon        3.0% NSR Central Sun       Gold  --(7)          --(7)
                                  Mining
    

    
    Bald       1.75-3.5% NSR
    Mountain  (sliding-scale)     Barrick       Gold    1.3   109,000 oz.
    

    
    El Chanate  2.0-4.0% NSR     Capital       Gold  --(7)          --(7)
              (sliding-scale)      Gold
                     10% NPI
    

    
    Penasquito      2.0% NSR    Goldcorp       Gold  --(7)          --(7)
                                             Silver
    

    
    *  Footnotes follow on page 9.
    


    
                                   TABLE 2
             Royalty Production and Revenue - Fourth Quarter 2008
    

    
    PROPERTY         ROYALTY     OPERATOR     METAL      QUARTER ENDED
                                                        JUNE 30, 2008
                                                     Royalty
                                                     Revenue     Reported
                                                   ($ Millions) Production(1)
    Cortez           GSR1(2)     Barrick       Gold    6.4     70,000 oz.
     (Pipeline       GSR2
     Mining          GSR3
     Complex)        NVR1
    

    
    Robinson(3)     3.0% NSR      Quadra       Gold    5.5     35,000 oz.
                                             Copper            38.7M lbs.
    

    
    Goldstrike
     (SJ Claims)    0.9% NSR     Barrick       Gold    1.4    182,000 oz.
    

    
    Leeville        1.8% NSR     Newmont       Gold    1.6     99,000 oz.
    

    
    Taparko       TB-GSR1(4)  High River       Gold    2.8     13,000 oz.
                  TB-GSR2                                        (5,6)
    

    
    Don Mario       3.0% NSR      Orvana       Gold  0.545  23,000 oz.(6)
    

    
    Mulatos    0.30-1.5% NSR
              (sliding-scale)     Alamos       Gold  0.493  36,000 oz.(8)
    

    
    Troy            7.0% GSR      Revett     Silver  0.882 244,000 oz.(9)
                                             Copper             2.4M lbs.
    

    
    Martha          2.0% NSR       Coeur     Silver  0.331    964,000 oz.
                                 d'Alene
    

    
    Williams       0.72% NSR    Barrick/       Gold  0.210  37,000 oz.(6)
                             Teck Cominco
    

    
    El Limon        3.0% NSR Central Sun       Gold  0.224   9,000 oz.(6)
                                  Mining
    

    
    Bald       1.75-3.5% NSR     Barrick       Gold  0.156     10,000 oz.
    Mountain  (sliding-scale)
    

    
    El Chanate  2.0-4.0% NSR  Capital Gold     Gold  0.929     12,000 oz.
               (sliding-scale)                                   (6,10)
                     10% NPI
    

    
    Penasquito      2.0% NSR    Goldcorp       Gold  0.059   1,600 oz.(6)
                                             Silver            92,000 oz.
    


    
    PROPERTY         ROYALTY    OPERATOR      METAL       QUARTER ENDED
                                                          JUNE 30, 2007
                                                     Royalty
                                                     Revenue     Reported
                                                  ($ Millions) Production(1)
    Cortez           GSR1(2)     Barrick       Gold    6.4    140,000 oz.
     (Pipeline       GSR2
     Mining          GSR3
     Complex)        NVR1
    

    
    Robinson(3)     3.0% NSR      Quadra       Gold    3.9     23,600 oz.
                                             Copper            32.3M lbs.
    

    
    Goldstrike
     (SJ Claims)    0.9% NSR     Barrick       Gold    1.5    246,000 oz.
    

    
    Leeville        1.8% NSR     Newmont       Gold  0.576     48,000 oz.
    

    
    Taparko       TB-GSR1(4)  High River       Gold  --(7)          --(7)
                  TB-GSR2
    

    
    Don Mario       3.0% NSR      Orvana       Gold  --(7)          --(7)
    

    
    Mulatos    0.30-1.5% NSR      Alamos       Gold  0.317     30,000 oz.
              (sliding-scale)
    

    
    Troy            7.0% GSR      Revett     Silver    1.2    376,000 oz.
                                             Copper             3.6M lbs.
    

    
    Martha          2.0% NSR       Coeur     Silver  0.130    494,000 oz.
                                 d'Alene
    

    
    Williams       0.72% NSR    Barrick/       Gold  --(7)          --(7)
                             Teck Cominco
    

    
    El Limon        3.0% NSR   Central Sun     Gold  --(7)          --(7)
                                 Mining
    

    
    Bald
    Mountain   1.75-3.5% NSR     Barrick       Gold  0.233     33,000 oz.
              (sliding-scale)
    

    
    El Chanate  2.0-4.0% NSR     Capital       Gold  --(7)          --(7)
               (sliding-scale)    Gold
                     10% NPI
    

    
    Penasquito      2.0% NSR    Goldcorp       Gold  --(7)          --(7)
                                             Silver
    

    
    *  Footnotes follow on page 9.
    

    
                                 FOOTNOTES TO
                                TABLES 1 AND 2
    

    
    (1)  Reported production relates to the amount of metal sales that are
         subject to our royalty interests for the periods ended June 30, 2008
         and June 30, 2007, as reported to us by the operators of the mines.
    

    
    (2)  Royalty percentages:  GSR1 - 0.40-5.0% (sliding-scale);
         GSR2 - 0.72-9.0% (sliding-scale); GSR3 - 0.71%; NVR1 - 0.39%.
    

    
    (3)  Revenues consist of provisional payments for concentrates produced
         during the current period and final settlements for prior production
         periods.
    

    
    (4)  Royalty percentages:  TB-GSR1 - 15.0%; TB-GSR2 - 4.3% when the
         average monthly gold price ranges between $385 and $430 per ounce.
         Outside of this range, the royalty rate is calculated by dividing the
         average monthly gold price by 100 for gold prices above $430 per
         ounce, or by dividing the average monthly gold price by 90 for gold
         prices below $385 per ounce (e.g., a $900 per ounce gold price
         results in a rate of 900/100 = 9.0%).  Two subsequent royalties
         consist of a 2.0% GSR perpetual royalty ("TB-GSR3"), applicable to
         gold production from defined portions of the Taparko-Bouroum project
         area, and a 0.75% GSR milling royalty ("TB-MR1").  The TB-MR1 royalty
         applies to ore that is mined outside of the defined area of the
         Taparko-Bouroum project that is processed through the Taparko
         facilities up to a maximum of 1.1 million tons per year.  Both the
         TB-GSR3 and TB-MR1 royalties commence once TB-GSR1 and TB-GSR2,
         described earlier, have ceased.
    (5)  Both TB-GSR1 and TB-GSR2 continue until either production reaches
         804,420 ounces of gold, or payments totaling $35 million under
         TB-GSR1 are received, whichever comes first.  As of June 30, 2008,
         Royal Gold has recognized $4.7 million in cumulative royalty revenue
         under TB-GSR1.
    (6)  Receipt of royalty revenue commenced in July 2007 for Taparko;
         October 2007 for Don Mario, Williams and El Limon; February 2008 for
         El Chanate; and June 2008 for Penasquito.
    (7)  Receipt of royalty revenue commenced in FY2008.
    (8)  The Company's royalty is subject to a 2.0 million ounce cap on gold
         production.  There have been approximately 248,000 ounces of
         cumulative production, as of June 30, 2008.
    (9)  The 7.0% GSR royalty extends until either cumulative production
         reaches approximately 9.9 million ounces of silver and 84.7 million
         pounds of copper, or Royal Gold receives $10.5 million in cumulative
         payments, whichever occurs first.  As of June 30, 2008, the Company
         has recognized approximately $8.0 million in cumulative payments from
         the Troy mine attributable to cumulative production of approximately
         3.2 million ounces of silver and 33.0 million pounds of copper.
         Royal Gold also holds a perpetual GSR royalty that begins at 6.1% on
         any production in excess of 11.0 million ounces of silver and
         94.1 million pounds of copper.  This 6.1% GSR steps down to a
         perpetual 2.0% GSR royalty after cumulative production exceeds
         12.7 million ounces of silver and 108.2 million pounds of copper.
    (10) The sliding-scale NSR royalty is capped once payments of
         approximately $17 million have been received and the 10.0% net
         profits interest royalty is capped at $1.0 million.  As of June 30,
         2008, payments of $600,000 for the sliding-scale NSR royalty and
         $500,000 for the NPI royalty have been recognized.
    


    
                               ROYAL GOLD, INC.
                         Consolidated Balance Sheets
                                As of June 30,
                       (In thousands except share data)
    

    
                                                          2008        2007
    Current assets
       Cash and equivalents                         $  192,035   $  82,842
       Royalty receivables                              17,627      12,470
       Income tax receivable                             1,310           -
       Deferred tax assets                                 131         154
       Prepaid expenses and other                          308         217
    

    
    Total current assets                               211,411      95,683
    

    
    Royalty interests in mineral properties, net       300,670     215,839
    Restricted cash - compensating balance              15,750      15,750
    Inventory - restricted                              11,170      10,612
    Note receivable - Battle Mountain Gold
    Exploration                                              -      14,494
    Other assets                                         7,283       4,271
    Total assets                                    $  546,284   $ 356,649
    

    
    Current liabilities
       Accounts payable                             $    3,122   $   2,342
        Income taxes payable                                 -           5
       Dividends payable                                 2,384       1,869
       Other                                             1,797         472
    Total current liabilities                            7,303       4,688
    

    
    Net deferred tax liabilities                        26,034       5,911
    Note payable                                        15,750      15,750
    Other long-term liabilities                            504          98
    Total liabilities                                   49,591      26,447
    

    
    Commitments and contingencies
    Minority interest in subsidiary                     11,411      11,121
    Stockholders' equity
       Preferred stock, $0.01 par value,
        10,000,000 shares authorized                         -           -
       Common stock, $0.01 par value,
        authorized     100,000,000 shares; and
        issued 33,926,495 and     28,892,980
        shares, respectively                               339         289
    Additional paid-in capital                         463,335     310,439
    Accumulated other comprehensive income                  65         458
    Accumulated earnings                                21,543       8,992
    Less treasury stock, at cost (0 and
     229,224 shares, respectively)                           -      (1,097)
    Total stockholders' equity                         485,282     319,081
    

    
    Total liabilities and stockholders' equity      $  546,284   $ 356,649
    


    
                               ROYAL GOLD, INC.
        Consolidated Statements of Operations and Comprehensive Income
                         For the Years Ended June 30,
                       (In thousands except share data)
    

    
                                             2008        2007        2006
    Royalty revenues                       $69,393     $48,357     $28,380
    

    
    Costs and expenses
     Costs of operations (exclusive of
      depreciation, depletion and
      amortization shown separately below)   3,819       3,265       2,288
     General and administrative              7,208       5,824       5,022
     Exploration and business development    4,079       2,493       3,397
     Depreciation, depletion and
      amortization                          18,364       8,269       4,261
    Total costs and expenses                33,470      19,851      14,968
    

    
    Operating income                        35,923      28,506      13,412
    

    
    Interest and other income                6,742       4,258       3,204
    Interest and other expense              (1,729)     (1,973)       (165)
    Income before income taxes              40,936      30,791      16,451
    

    
    Current tax expense                    (12,811)    (10,310)     (5,974)
    Deferred tax (expense) benefit            (115)        761         873
    Minority interest in income of
     consolidated subsidiary                (1,352)     (1,522)          -
    Loss from equity investment               (550)          -           -
    Net income                             $26,108     $19,720     $11,350
    

    
    Adjustments to other comprehensive
     income
     Unrealized change in market value of
      available for sale securities, net
      of tax                                  (393)        (40)        783
    Comprehensive income                   $25,715     $19,680     $12,133
    

    
    Net income                             $26,108     $19,720     $11,350
    Preferred stock dividends and deemed
     dividend                              (4,788)           -           -
    Net income available to common
     stockholders                          $21,320     $19,720     $11,350
    

    
    Basic earnings per share                 $0.69       $0.79       $0.50
    Basic weighted average shares
     outstanding                        31,054,725  24,827,319  22,863,784
    

    
    Diluted earnings per share               $0.68       $0.79       $0.49
    Diluted weighted average shares
     outstanding                        31,390,293  25,075,086  23,134,034
    


    
                               ROYAL GOLD, INC.
                    Consolidated Statements of Cash Flows
                         For the Years Ended June 30,
                       (In thousands except share data)
    

    
                                               2008       2007        2006
    Cash flows from operating activities
    Net income                              $ 26,108   $ 19,720   $  11,350
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
     Depreciation, depletion and
      amortization                            18,364      8,269       4,261
     Loss on available for sale securities        49          -           -
     Deferred tax expense (benefit)              115       (761)       (873)
     Non-cash employee stock compensation
      expense                                  2,869      2,663       2,778
     Interest income accrued for Battle
      Mountain note receivable                  (713)         -           -
     Tax benefit of stock-based compensation
      exercises                                 (722)      (346)     (1,438)
     Changes in assets and liabilities:
      Royalty receivables                     (4,430)    (6,508)        639
      Prepaid expenses and other assets         (232)       414         266
      Accounts payable                           580      1,020         (65)
      Income taxes (receivable) payable         (970)        16       1,520
      Other                                   (1,891)      (140)        167
    

    
    Net cash provided by operating
     activities                             $ 39,127   $ 24,347   $  18,605
    Cash flows from investing activities
     Capital expenditures for property
      and equipment                         $    (42)  $   (285)  $     (39)
     Acquisition of royalty interests in
      mineral properties                     (16,246)  (120,808)    (43,931)
     Note receivable - Battle Mountain
      Gold Exploration                             -    (14,494)          -
     Restricted cash - compensating balance        -    (15,750)          -
     Purchase of available for sale securities     -        (81)       (205)
     Deferred acquisition costs                 (157)      (973)          -
     Battle Mountain acquisition, net of cash
      acquired of $1,398                      (2,933)         -           -
    

    
    Net cash used in investing activities   $(19,378)  $(152,391) $ (44,175)
    Cash flows from financing activities
       Common stock dividends               $ (8,253)  $  (5,721) $  (4,807)
       Preferred stock dividends              (2,802)          -          -
       Debt issuance costs                       (27)       (464)       (82)
       Issuance of Note payable                    -      15,750          -
       Tax benefit from stock-based
        compensation exercises                   722         346      1,438
       Gold loan payoff - Battle Mountain     (6,476)          -          -
       Net proceeds from issuance of
        common stock                             698     122,526     58,630
       Net proceeds from issuance of
        preferred stock                      111,098           -          -
       Stock repurchase program               (5,516)          -          -
    Net cash provided by financing
     activities                             $ 89,444   $ 132,437  $  55,179
    Net increase in cash and equivalents     109,193       4,393     29,609
    Cash and equivalents at beginning of
     year                                     82,842      78,449     48,840
    Cash and equivalents at end of year     $192,035   $  82,842  $  78,449
    


    
                                  SCHEDULE A
    Non-GAAP Financial Measures
    
    The Company computes and discloses free cash flow and free cash flow as a
percentage of revenues. Free cash flow is a non-GAAP financial measure.  Free
cash flow is defined by the Company as operating income plus depreciation,
depletion and amortization, non-cash charges, and any impairment of mining
assets, less minority interest in income of consolidated subsidiary.
Management believes that free cash flow and free cash flow as a percentage of
revenues are useful measures of performance of our royalty portfolio.  Free
cash flow identifies the cash generated in a given period that will be
available to fund the Company's future operations, growth opportunities, and
shareholder dividends.  Free cash flow, as defined, is most directly
comparable to operating income in the Statements of Operations.  Below is the
reconciliation to operating income:

    
                                       For the Fiscal Years Ended
                                                June 30,
                                             (in thousands)
                                   2008            2007                2006
    

    
    Operating income             $35,923         $28,506             $13,412
    Depreciation, depletion
     and amortization             18,364           8,269               4,261
    Non-Cash employee stock
     compensation                  2,869           2,663               2,778
    Minority interest in income
     of consolidated subsidiary   (1,352)         (1,522)                  -
    Free cash flow               $55,804         $37,916             $20,451
    


    
                               For the Fiscal Quarters Ended
                                         June 30,
                                      (in thousands)
    

    
                                   2008            2007
    

    
    Operating income             $11,772          $8,346
    Depreciation, depletion
     and amortization              6,431           2,518
    Non-Cash employee stock
     compensation                    724             938
    Minority interest in income
     of consolidated subsidiary     (670)           (458)
    Free cash flow               $18,257         $11,344
    Royal Gold, Inc.
    




For further information:

For further information: Karen Gross, Vice President and Corporate
Secretary of Royal Gold, Inc., +1-303-573-1660 Web Site:
http://www.royalgold.com/

Organization Profile

ROYAL GOLD, INC.

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