Royal Gold Announces Record Fiscal 2007 Financial Results



    
    - Revenue and free cash flow* increase 70% and 85%, respectively,
    year-over-year

    - Earnings per share up 58% year-over-year

    - Fiscal 2007 free cash flow* totaled 78% of revenue

    - Production commences at the Taparko mine

    - Significant reserve expansion at the Penasquito property
    

    DENVER, Aug. 16 /CNW/ -- Royal Gold, Inc. (Nasdaq: RGLD; TSX: RGL), the
leading publicly-traded precious metals royalty company, today announced
record revenues of $48.4 million for fiscal 2007 (ended June 30), a 70%
increase over revenues of $28.4 million in fiscal 2006. The Company reported
net income of $19.7 million, or $0.79 per basic share, for fiscal 2007
compared to net income of $11.4 million, or $0.50 per basic share, for fiscal
2006. Free cash flow for fiscal 2007 was approximately $37.9 million, or 78%
of revenues, compared to $20.5 million or 72% of revenues, in fiscal 2006.
    For the fourth quarter ended June 30, 2007, royalty revenue reached a
record high of $14.4 million, or a 76% increase over royalty revenue of $8.2
million for the same period in fiscal 2006.  The Company reported fourth
quarter 2007 net income of $5.7 million, or $0.20 per basic share, as compared
to net income of $3.6 million, or $0.15 per basic share for the fourth quarter
of fiscal 2006. Free cash flow for the fourth quarter was approximately $11.3
million, or 78% of revenue compared with free cash flow of $6.5 million, or
79% of revenues, for the same period ended June 30, 2006.
    As of June 30, 2007, the Company had working capital of $91.0 million.
Current assets were $95.7 million, compared to current liabilities of $4.7
million, yielding a current ratio of 20 to 1.
    Tony Jensen, President and Chief Executive Officer, commented, "The
record-setting results we achieved in fiscal 2007 reflect the execution of our
growth and diversification plan over the past eighteen months, supported by
continued strength in commodity prices."  Jensen continued, "During the year
we completed the largest royalty acquisition in the history of the Company,
the Penasquito project, along with several other important royalty
transactions.  Our portfolio now includes nine producing royalty properties
and a strong pipeline of development stage projects scheduled to commence
production within the next year.  We also announced substantial growth in
reserves subject to our royalty properties and the beginning of revenue flow
from the Taparko project. The events over the past twelve months position us
well for future financial growth."

    REVIEW OF OPERATIONS

    
    PRODUCING PROPERTIES
    Pipeline Mining Complex (Lander County, Nevada)
    
    At the Pipeline Mining Complex, Royal Gold holds two sliding-scale gross
smelter return royalties ("GSR1" and "GSR2"), a fixed-rate gross smelter
return royalty ("GSR3"), and a net value royalty ("NVR1").  The GSR1 royalty
covers a majority of the Pipeline and South Pipeline deposits and the GSR2
("Super") royalty covers the Crossroads area and a portion of the Gap deposit.
The GSR2 royalty pays out at a rate that is 80% higher than that of GSR1, at
all gold prices.  The GSR3 royalty rate is fixed at 0.71% for the life of the
mine and covers the same area as GSR1 and GSR2 combined.  The 0.39% NVR1
royalty, net of minority interest, covers production from the GAS Claims, an
area of interest of approximately 4,000 acres that includes the South Pipeline
deposit and Crossroads area, but excludes the Pipeline deposit.  Current
production from the Pipeline Mining Complex is subject to all four royalties.
    The Pipeline Mining Complex is owned by the Cortez Joint Venture
("Cortez"), a joint venture between Barrick Cortez Inc. (60%), a subsidiary of
Barrick Gold Corporation ("Barrick"), and Kennecott Explorations (Australia)
Ltd. (40%), a subsidiary of Rio Tinto, plc.
    For the fourth fiscal quarter of 2007, metal sales attributable to the
Company's royalties at the Pipeline Mining Complex were approximately 140,000
ounces of gold, providing $6.4 million of royalty revenue to Royal Gold
(including $488,000 of minority interest).  This compares to metal sales of
approximately 76,000 ounces of gold, providing $2.7 million of royalty revenue
to Royal Gold, for the same quarter in fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalties at
the Pipeline Mining Complex were approximately 510,000 ounces of gold,
providing $21.5 million of royalty revenue (including $1.6 million of minority
interest), as compared to metal sales of approximately 599,000 ounces of gold,
which provided royalty revenues of $16.8 million for fiscal 2006.
    For the fourth quarter of fiscal 2007, the average gold price was $667
per ounce and Royal Gold's GSR1 royalty rate was 5.0% of metal sales and its
GSR2 royalty rate was 9.0% of metal sales.  This compares to an average gold
price of $627 per ounce for the fourth quarter of fiscal 2006 and a GSR1
royalty rate of 5.0 % of metal sales.  There was no production from GSR2
during fiscal 2006.
    For fiscal 2007, the average gold price was $638 per ounce compared to an
average gold price of $527 per ounce for fiscal 2006.  Royal Gold's GSR1
royalty rate for both fiscal years was 5.0% of metal sales.  The GSR2 royalty
rate in fiscal 2007 was 9.0%.  There was no production from GSR2 during fiscal
2006.
    The increase in royalty revenue at the Pipeline Mining Complex for fiscal
2007 was due largely to higher gold prices and increased metal sales related
to the Company's GSR2 royalty.
    
    Robinson (White Pine County, Nevada)
    
    Royal Gold holds a 3.0% net smelter return ("NSR") royalty on the
Robinson mine, an open pit copper mine with significant gold credits.  The
mine is operated by a subsidiary of Quadra Mining, Ltd. ("Quadra").
    At Robinson, revenues consist of provisional payments for concentrates
produced during the current period and final settlements for prior production
periods.
    For the fourth fiscal quarter of 2007, metal sales attributable to the
Company's royalty at the Robinson mine were 32.3 million pounds of copper and
23,607 ounces of gold, providing approximately $3.9 million in royalty
revenue.  This compares with metal sales of 27.2 million pounds of copper and
13,082 ounces of gold, providing approximately $2.2 million in royalty revenue
for the same quarter of fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalty at the
Robinson mine were 116.9 million pounds of copper and 80,603 ounces of gold,
providing approximately $12.6 million in royalty revenue.  Due to the fiscal
2006 acquisition date, a year-over-year comparison is not available.
    In July 2007, Quadra reported that it had revised its production guidance
for calendar 2007 from 68,000 ounces of gold to 90,000 ounces of gold, due to
higher than planned grade and recovery.
    
    SJ Claims - Goldstrike Mine (Eureka County, Nevada)
    
    Royal Gold holds a 0.9% NSR royalty covering a portion of the Betze-Post
mine, known as the SJ Claims.  The Betze-Post mine, which is a part of the
larger Goldstrike operation, is an open pit mine operated by a subsidiary of
Barrick.
    During the fourth fiscal quarter of 2007, metal sales attributable to the
Company's royalty at the SJ Claims were 245,894 ounces of gold, providing
Royal Gold with approximately $1.5 million in royalty revenue.  This compares
with metal sales of 242,350 ounces of gold, providing approximately $1.4
million in royalty revenue to Royal Gold in the same quarter of fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalty at the
SJ Claims were 950,462 ounces of gold, providing approximately $5.5 million of
royalty revenue.  This compares with metal sales of 1,005,549 ounces of gold,
providing approximately $4.8 million in royalty revenue during fiscal 2006.
    
    Troy Mine (Lincoln County, Montana)
    
    Royal Gold holds a 7.0% GSR royalty that covers the Troy underground mine
operated by a subsidiary of Revett Minerals, Inc. ("Revett").  This 7.0% GSR
royalty extends until either cumulative production reaches approximately 9.9
million ounces of silver and 84.6 million pounds of copper, or Royal Gold
receives $10.5 million in cumulative payments, whichever occurs first.  As of
June 30, 2007, the Company has received approximately $5.5 million in
cumulative payments from the Troy mine.
    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.
    During the fourth fiscal quarter of 2007, metal sales attributable to the
Company's royalty at the Troy mine were 375,573 ounces of silver and 3.6
million pounds of copper, providing approximately $1.2 million in royalty
revenue. This compares with 223,495 ounces of silver and 1.8 million pounds of
copper, providing approximately $612,000 in royalty revenue in the same
quarter of fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalty at the
Troy mine were 1,049,253 ounces of silver and 9.6 million pounds of copper,
providing about $3.1 million of royalty revenue.  This compares with 884,528
ounces of silver and 7.1 million pounds of copper, providing approximately
$1.7 million of royalty revenue for fiscal 2006.
    In July 2007, Revett announced preliminary results from their 2006/2007
exploration program which showed new mineralization at Troy below the
currently defined reserve.  The operator expects to complete a new reserve
estimate prior to the end of calendar 2007.  Revett also reported record metal
production for the quarter ended March 31, 2007, as a result of improvement in
the operating performance at the mine.
    
    Leeville Mining Complex (Eureka County, Nevada)
    
    Royal Gold holds a 1.8% carried working interest, which calculates as a
NSR royalty, covering a majority of the underground Leeville Mining Complex
("Leeville").  Leeville is operated by a subsidiary of Newmont Mining
Corporation.
    During the fourth fiscal quarter of 2007, metal sales attributable to the
Company's royalty at the Leeville property were 47,896 ounces of gold,
providing royalty revenue to Royal Gold of approximately $576,000.  This
compares with metal sales of 13,120 ounces of gold, providing approximately
$144,000 in royalty revenue to Royal Gold for the same quarter in fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalty at the
Leeville property were 230,458 ounces of gold, providing roughly $2.7 million
of royalty revenue. This compares with metal sales of 83,696 ounces of gold,
providing approximately $768,000 in royalty revenue to Royal Gold during
fiscal 2006.  The increase in metal sales for fiscal 2007 was due largely to
continuing ramp up by the operator at the mine.
    
    Bald Mountain (White Pine County, Nevada)
    
    Royal Gold holds a sliding-scale NSR royalty that covers a portion of the
Bald Mountain mine, operated by a subsidiary of Barrick.  For the fourth
fiscal quarter, the Company's royalty rate was 1.75%.
    During the fourth fiscal quarter of 2007, metal sales attributable to the
Company's royalty at the Bald Mountain mine were approximately 33,000 ounces
of gold, providing approximately $233,000 in royalty revenue.  This compares
with metal sales of 60,884 ounces of gold, providing approximately $853,000 in
royalty revenue for the same quarter of fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalty at the
Bald Mountain mine were approximately 109,000 ounces of gold, providing
approximately $1.3 million in royalty revenue.  This compares with metal sales
of 122,763 ounces of gold, providing approximately $1.5 million in royalty
revenue for fiscal year 2006.  The decrease in royalty revenue is the result
of a lower percentage of ore associated with Royal Gold's royalty interest
placed on the pad.
    
    Mulatos (Sonora, Mexico)
    
    Royal Gold holds a sliding-scale NSR royalty at Mulatos, an open pit,
heap leach gold mine, operated by a subsidiary of Alamos Gold, Inc.  The
sliding-scale ranges from 0.30%, at an average quarterly gold price of $299.99
per ounce or less, up to a maximum of 1.5% when the price of gold averages
$400 per ounce or higher. The royalty is capped at two million ounces of gold
production.  As of June 30, 2007, the Company has received payment for
approximately 127,000 ounces of gold since the royalty commenced.
    During the fourth fiscal quarter of 2007, estimated metal sales
attributable to the Company's royalty were approximately 30,000 ounces of
gold, providing about $317,000 in royalty revenue.  This compares with metal
sales of 23,912 ounces of gold, providing approximately $225,000 in royalty
revenue, for the same quarter of fiscal 2006.
    For fiscal 2007, estimated metal sales attributable to the Company's
royalty at the Mulatos mine were approximately 103,000 ounces of gold,
providing about $1.0 million in royalty revenue.  Due to the fiscal 2006
acquisition date, a year-over-year comparison is not available.
    
    Martha (Santa Cruz Province, Argentina)
    
    The Company holds a 2.0% NSR royalty on the Martha silver mine operated
by a subsidiary of Coeur d'Alene Mines Corporation ("Coeur").
    During the fourth quarter of fiscal 2007, estimated metal sales
attributable to the Company's royalty at the Martha mine were 494,219 ounces
of silver resulting in royalty revenue of approximately $130,000.  This
compares with metal sales of approximately 355,000 ounces of silver, providing
about $92,000 in royalty revenue for the same quarter of fiscal 2006.
    For fiscal 2007, metal sales attributable to the Company's royalty at
Martha were 2.9 million ounces of silver, providing approximately $714,000 in
royalty revenue.  This compares with 2.3 million ounces of silver, providing
approximately $402,000 of royalty revenue for fiscal 2006.
    In August 2007, Coeur announced an expanded reserve estimate at the
Martha mine of 7.6 million contained ounces of silver. The new reserve
estimate reflects a 49% increase in silver reserves over their December 31,
2006 reserve update, taking into account first half production.  The operator
also stated that they expect to complete construction on a mill facility
adjacent to the Martha mine by the end of the calendar year.
    
    DEVELOPMENT PROPERTIES
    Taparko-Bouroum Project (Burkina Faso, West Africa)
    
    Royal Gold holds two initial concurrent production payments, both
equivalent to GSR royalties, and two subsequent GSR royalties at the
Taparko-Bouroum project, an open pit gold operation.  The project is operated
by a subsidiary of High River Gold Mines, Ltd. ("High River").
    The first GSR-equivalent royalty ("TB-GSR1") is fixed at a rate of 15.0%.
The second GSR-equivalent royalty ("TB-GSR2") is a sliding-scale royalty
ranging from 0.0% to 10.0%, depending upon the price of gold.  The TB-GSR2
royalty pays out at a rate of 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 $650 per ounce gold price results in
a rate of 650/100 = 6.5%).  Both TB-GSR1 and TB-GSR2 continue until either
production reaches 804,420 ounces of gold, or Royal Gold receives payments
totaling $35 million under TB-GSR1, whichever occurs first.
    The 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.
    High River recently commenced production and completed its initial gold
pour on July 17, 2007.  The operator expects to continue to ramp up production
over the next few months and has informed the Company that it anticipates
production of approximately 35,000 ounces of gold for calendar 2007 that are
subject to the Company's royalty interests.
    Royal Gold expects to report royalty revenue for the Taparko mine during
the Company's first quarter of fiscal 2008.
    
    Penasquito Project (State of Zacatecas, Mexico)
    
    Royal Gold holds a 2.0% NSR royalty on the Penasquito project located in
Zacatecas, Mexico.  The project, currently under development, is owned by a
subsidiary of Goldcorp, Inc.  In June 2007, the operator updated its reserve
estimate at the Penasquito project to 13 million contained ounces of gold and
864 million contained ounces of silver, a 31% and 50% increase in gold and
silver reserves, respectively, over its June 2006 reserve update. Goldcorp
also announced a 60% increase in both lead and zinc reserves to 5.9 million
contained pounds of lead and 12.8 million contained pounds of zinc. According
to the operator, production is expected to commence in the second half of
calendar 2008.
    
    Pascua-Lama Project (Argentina/Chile border)
    
    Royal Gold holds a 0.16% to 1.08% sliding-scale NSR royalty on the
Pascua-Lama project located on the border between Argentina and Chile.  The
project is owned by subsidiaries of Barrick. According to Barrick, the project
is in the permitting stage with no time frame for the beginning of
construction.
    
    Gold Hill Deposit (Nye County, Nevada)
    
    Royal Gold holds a 1.0% to 2.0% sliding-scale NSR royalty on the Gold
Hill deposit.  The Gold Hill deposit, located just north of the Round Mountain
gold mine in Nevada, is controlled by Round Mountain Gold Corporation
("RMGC"), a joint venture between Kinross Gold Corporation, the operator, and
Barrick. Production is expected to commence when permitting is completed and
equipment from the Round Mountain pit expansion becomes available.
    
    MERGER TRANSACTION WITH BATTLE MOUNTAIN GOLD EXPLORATION
    
    Royal Gold has agreed to acquire 100% of the fully diluted shares of
Battle Mountain for either cash consideration of $0.55 per Battle Mountain
share or from 0.0172 to 0.0179 shares of Royal Gold common stock per Battle
Mountain share, in each case assuming 91,563,506 Battle Mountain shares
outstanding at closing.  The share consideration will be based on the average
closing price per share of Royal Gold's common stock for the five trading day
period up to and including the second business day preceding (but not
including) the closing date of the merger transaction.  The share
consideration ranges from 0.0172 Royal Gold shares per Battle Mountain shares
held, if Royal Gold's stock price is at or above $30.18, to 0.0179 Royal Gold
shares per Battle Mountain shares held, if Royal Gold's stock price is at or
below $29.00.  A proportional adjustment will be made between these two
trading prices.
    The consideration payable to Battle Mountain's shareholders is subject to
a potential reduction or holdback for certain contingent liabilities.
    Royal Gold has obtained option and support agreements from Mark Kucher,
Chairman of Battle Mountain, and from IAMGOLD Corporation, providing that each
will vote its respective beneficially-owned shares in favor of the merger
transaction.  The other directors and officer of Battle Mountain have granted
Royal Gold irrevocable proxies to vote their beneficially owned shares in
favor of the merger transaction.  As a result of these agreements and
irrevocable proxies, together with the convertible Bridge Loan, Royal Gold
beneficially owns approximately 57% of the outstanding shares of Battle
Mountain.
    Battle Mountain's principal assets include a 3.25% NSR royalty on gold
production and a 2.0% NSR royalty on silver production from the Dolores
project in Mexico, which is under development by Minefinders Corporation, Ltd.
Dolores is scheduled to begin commercial production in early calendar 2008.
    
    FISCAL 2008 OUTLOOK
    
    Tony Jensen, President and CEO, stated, "The commencement of the Taparko
royalty, along with anticipated increased production levels at Leeville, will
be reflected in Royal Gold's revenues during fiscal 2008.  Penasquito, one of
the Company's new development stage royalties, is scheduled to begin
production during the second half of calendar 2008."
    Jensen also commented, "We anticipate that our core royalties, the SJ
Claims, Robinson, Pipeline and Troy, will continue to make solid contributions
to our revenue base.  In addition, the Battle Mountain transaction is expected
to add four new producing royalties to our royalty portfolio as well as one
development stage property that is expected to begin commercial production in
early calendar 2008."
    He continued, "These factors, along with continued strength in metal
prices, endorse our optimistic outlook on the growth of our cash flows,
revenues and earnings for the upcoming fiscal year."
    
    Royalty Definitions
    
    The Company's royalty portfolio contains several different types of
royalties which are defined as follows:

    
    Gross Smelter Return ("GSR") Royalty -- a defined percentage of the gross
    revenue from a resource extraction operation, with no deduction for any
    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 percentage of the gross revenue from a
    resource extraction operation, less certain contract-defined costs.
    

    
    Royalty -- the right to receive a percentage or other denomination of
    mineral production from a mining operation.
    


    
    * 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 from consolidated subsidiary (see, Schedule A).
    
    Royal Gold is a precious metals royalty company 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 results for fiscal 2007 will be held today at 10:00 a.m. Mountain Time
(noon Eastern Time) and is available by calling (800) 603-2779 or (706)
634-7230.  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.  Audio replays will also be available about two
hours after the call ends through August 23, 2007, by dialing (800) 642-1687
or (706) 645-9291, access #6144722.
    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 the Company's growth
plan, commencement of production of development stage projects, changes in
reserves subject to our royalty projects, commencement of revenue from the
Taparko project, commodity prices, the sliding-scale features of our royalty
structure at the Pipeline Mining Complex, Bald Mountain, Mulatos, Taparko,
Gold Hill, and Pascua-Lama, continued ramp up in production at Leeville, Troy
and Taparko, and changes in production estimates from the operators of certain
properties. Like any royalty on a non-producing or not yet in development
project, the Penasquito, Pascua-Lama and Dolores projects are subject to
certain risks, such as the ability of the operator to bring the project into
production and operate in accordance with the feasibility study and the
ability of Royal Gold to make accurate assumptions regarding valuation and
timing and amount of royalty payments.  In addition, acquired royalty
interests on certain projects are subject to risks associated with conducting
business in a foreign country, including application of foreign laws to
contract and other disputes, foreign environmental laws and enforcement and
uncertain political and economic environments.  Factors that could cause
actual results to differ materially from projections include, among others,
precious metals prices, 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, future interpretations and complexity
under FIN 46R and SAB 108 and related accounting rules and interpretations of
such rules in relation to the partnership that holds the NVR1 royalty and
otherwise, 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.
    



    
                               ROYAL GOLD, INC.
                         Consolidated Balance Sheets
                                As of June 30,
    

    
                                                     2007           2006
    Current assets:
     Cash and equivalents                       $ 82,841,861   $ 78,449,383
     Royalty receivables                          12,470,451      5,962,053
     Deferred tax assets                             154,050        131,621
     Prepaid expenses and other                      216,857        155,908
    

    Total current assets                          95,683,219     84,698,965

    
    Royalty interests in mineral properties,
     net                                         215,839,441     84,589,569
    Inventory - restricted                        10,611,562              -
    Restricted cash - compensating balance        15,750,000              -
    Available for sale securities                  1,995,041      1,988,443
    Note receivable - Battle Mountain Gold
     Exploration                                  14,493,878              -
    Other assets                                   2,276,049        487,826
    Total assets                                $356,649,190   $171,764,803
    

    
    Current liabilities:
     Accounts payable                             $2,342,330     $1,075,644
     Income taxes payable                              5,064        334,767
     Dividend payable                              1,868,594      1,300,623
     Accrued compensation                            344,500        375,000
     Other                                           128,039        237,482
    

    Total current liabilities                      4,688,527      3,323,516

    
    Net deferred tax liabilities                   5,910,697      6,683,889
    Note payable                                  15,750,000              -
    Other long term liabilities                       98,173         97,749
    Total Liabilities                             26,447,397     10,105,154
    

    
    Commitments and contingencies
    Minority interest in subsidiary               11,120,797              -
    Stockholders' equity
     Common stock, $.01 par value, authorized
      40,000,000 shares; issued 28,892,980
      and 23,816,640 shares, respectively            288,929        238,165
       Additional paid-in capital                310,439,112    166,459,671
       Accumulated other comprehensive income        458,298        498,462
       Accumulated earnings (deficit)              8,991,529     (4,439,777)
       Treasury stock, at cost (229,224 shares)   (1,096,872)    (1,096,872)
    

    Total stockholders' equity                   319,080,996    161,659,649

    Total liabilities and stockholders' equity  $356,649,190   $171,764,803



    
                               ROYAL GOLD, INC.
        Consolidated Statements of Operations and Comprehensive Income
                         For the Years Ended June 30,
    

    
                                    2007            2006          2005
    Royalty revenues           $ 48,356,828     $28,380,143   $25,302,332
    

    
    Costs and expenses
      Costs of operations
       (exclusive of
       depreciation, depletion
       and amortization shown
       separately below)          3,264,762       2,288,347     1,847,343
      General and administrative  5,823,670       5,022,157     3,695,098
      Exploration and business
       development                2,493,452       3,396,733     1,892,865
      Depreciation, depletion and
       amortization               8,268,680       4,261,060     3,204,984
    Total costs and expenses     19,850,564      14,968,297    10,640,290
    

    Operating income             28,506,264      13,411,846    14,662,042

    
    Interest and other income     4,257,784       3,203,968       834,136
    Gain on sale of available
     for sale securities                 -                -       163,577
    Interest and other expense   (1,973,538)       (165,066)     (103,578)
    Income before income taxes   30,790,510      16,450,748    15,556,177
    

    
    Current tax expense         (10,309,558)     (5,973,878)   (3,047,551)
    Deferred tax benefit
     (expense)                      761,293         873,211    (1,054,911)
    Minority interest in income
     of consolidated subsidiary  (1,521,765)              -             -
    Net income                 $ 19,720,480     $11,350,081   $11,453,715
    

    
    Adjustments to other
     comprehensive income
     Unrealized change in
      market value of
      available for sale
      securities, net of tax        (40,164)        783,382      (208,328)
     Realization of the change
      in market value on sale of
      available for sale
      securities, net of tax              -               -      (104,689)
    Comprehensive income       $ 19,680,316     $12,133,463   $11,140,698
    

    
    Basic earnings per share          $0.79           $0.50         $0.55
    Basic weighted average
     shares outstanding          24,827,319      22,863,784    20,875,957
    

    
    Diluted earnings per share        $0.79           $0.49         $0.54
    Diluted weighted average
     shares outstanding          25,075,086      23,134,034    21,070,797
    



    
                               ROYAL GOLD, INC.
                    Consolidated Statements of Cash Flows
                         For the Years Ended June 30,
    

    
                                    2007            2006          2005
    Cash flows from operating
     activities
    Net income                $  19,720,480    $ 11,350,081   $11,453,715
    Adjustments to reconcile
     net income to net cash
     provided by operating
     activities:
      Depreciation, depletion
       and amortization           8,268,680       4,261,060     3,204,984
      Gain on available for sale
       securities                         -               -      (163,577)
      Deferred tax (benefit)
       expense                     (761,293)       (873,211)    1,054,911
      Non-cash employee stock
       compensation expense       2,663,189       2,777,686       205,301
      Tax (benefit) expense of
       stock-based compensation
       exercises                   (345,824)     (1,438,399)      387,942
      Changes in assets and
       liabilities:
        Royalty receivables      (6,508,398)        639,276    (1,380,022)
        Prepaid expenses and
         other assets               414,291         266,495       (65,889)
        Accounts payable          1,019,567         (64,865)     (141,502)
        Income taxes payable         16,121       1,519,670       253,496
        Accrued liabilities and
         other current liabilities (139,943)        165,577        17,388
        Other long-term liabilities     424           1,115        (6,455)
    

    
    Net cash provided by
     operating activities     $  24,347,295    $ 18,604,485   $ 14,820,292
    Cash flows from investing
     activities
      Capital expenditures for
       property and equipment $    (284,930)   $    (38,657)  $   (126,954)
      Acquisition of royalty
       interests in mineral
       properties              (120,808,163)    (43,931,448)    (7,514,947)
      Note receivable - Battle
       Mountain Gold
       Exploration              (14,493,878)              -              -
      Restricted cash -
       compensating balance     (15,750,000)              -              -
      Purchase of available
       for sale securities          (81,089)       (204,715)    (1,000,000)
      Deferred acquisition costs   (973,247)              -              -
      Proceeds from sale of
       available for sale
       securities                         -               -        539,960
    

    
    Net cash used in investing
     activities               $(152,391,307)   $(44,174,820)   $(8,101,941)
    Cash flows from financing
     activities
      Dividends paid          $  (5,721,203)   $ (4,807,505)   $(3,651,893)
      Debt issuance costs          (464,113)        (81,857)             -
      Issuance of note payable   15,750,000               -              -
      Tax benefit from
       stock-based compensation
       exercises                    345,824       1,438,399              -
      Net proceeds from
       issuance of common stock 122,525,982      58,630,310        973,012
    Net cash provided by
    (used in) financing
    activities                 $132,436,490    $ 55,179,347    $(2,678,881)
    Net increase in cash and
     equivalents                  4,392,478
     29,609,012      4,039,470
    Cash and equivalents at
     beginning of year           78,449,383      48,840,371     44,800,901
    Cash and equivalents at
     end of year               $ 82,841,861    $ 78,449,383    $48,840,371
    

    
    Supplemental cash flow
     information:
      Cash paid during the
       period for:
        Interest               $    801,350    $          -    $         -
        Income taxes           $ 10,293,437    $  4,610,911    $ 2,330,000
      Non-cash investing and
       financing activities:
        Dividends declared     $  6,289,174    $  5,057,500    $ 3,923,144
        Deferred compensation
         (equity offset)       $          -    $          -    $   729,960
        Acquisition of royalty
         interest in mineral
         property (with common
         stock)                $ 18,495,211    $          -    $    55,170
    Consolidation of Partnership
    
    In connection with the preparation of its financial statements for the
quarter ended March 31, 2007, the Company determined that the partnership that
owns the NVR1 royalty at Pipeline, and in which Royal Gold holds a 31.6%
economic interest, should have been fully consolidated since December 31, 2003
rather than consolidated based on the Company's proportional interest in the
partnership. Commencing with fiscal 2007, the Company is fully consolidating
the partnership. The Company determined that the effect of proportionately,
rather than fully, consolidating the partnership was not material to any
previously issued financial statements and would not have changed the
Company's proportionate share of earnings from the Partnership nor would it
have changed the Company's consolidated earnings or shareholders' equity for
any previous periods.  For additional information, see Note 12 to the
Company's Form 10-Q for the period ended March 31, 2007.
    
    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 Year Ended
                                  June 30,        June 30,       June 30,
                                    2007            2006           2005
    Operating income            $28,506,264     $13,411,846   $14,662,042
    Depreciation, depletion
     and amortization             8,268,680       4,261,060     3,204,984
    Non-cash employee stock
     compensation expense         2,663,189       2,777,686       205,301
    Minority interest in income
     of consolidated  subsidiary (1,521,765)              -             -
    Free cash flow              $37,916,368     $20,450,592   $18,072,327
    

    
                                               For The Fiscal Quarter Ended
                                                   June 30,       June 30,
                                                     2007           2006
    Operating income                              $8,345,695     $4,370,772
    Depreciation, depletion and amortization       2,518,268      1,326,125
    Non-cash employee stock compensation
     expense                                         938,435        769,102
    Minority interest in income of
     consolidated subsidiary                        (458,492)             -
    Free cash flow                               $11,343,906     $6,465,999
    




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

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ROYAL GOLD, INC.

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