Royal Gold, Inc. (NASDAQ:RGLD) Q3 2022 Results Conference Call November 3, 2022 12:00 PM ET

Company Participants

Alistair Baker - VP, IR and Business Development

Bill Heissenbuttel - President and CEO

Mark Isto - EVP and COO, Royal Gold Corp.

Paul Libner - CFO and Treasurer

Dan Breeze - VP, Corporate Development, RG AG

Conference Call Participants

Cosmos Chiu - CIBC

Operator

Hello everyone. And welcome to the Royal Gold, Inc. Calendar Year 2022 Third Quarter Conference Call. My name is Charlie and I will be coordinating the call today. You’ll have the opportunity to ask a question at the end of the presentation. [Operator Instructions]

I’ll now hand over to your host, Alistair Baker, Vice President of Investor Relations and Business Development to being. Alistair, please go ahead.

Alistair Baker

Thank you, operator. Good morning and welcome to our discussion of Royal Gold’s third quarter 2022 results. This event is being webcast live and you will be able to access a replay of this call on our website.

Speaking on the call today are Bill Heissenbuttel, President and CEO; Mark Isto Executive Vice President and COO of Royal Gold Corporation; and Paul Libner, CFO and Treasurer. Randy Shefman, General Counsel; and Dan Breeze, Vice President Corporate Development of RG AG are also available for questions.

During today’s call we will make forward-looking statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday’s press release and our filings with the SEC.

We will also refer to certain non-GAAP financial measures including adjusted net income, adjusted net income per share, and adjusted EBITDA margin. Reconciliations of adjusted net income, adjusted net income per share, and adjusted EBITDA to the most directly comparable GAAP measures as well as a definition of adjusted EBITDA margin are available in yesterday’s press release, which can be found on our website.

Bill will start the call with an overview of the quarter, Mark will provide an operating update and Paul will provide a financial update. After the formal remarks, we’ll open the lines for Q&A session.

I’ll now turn the call over to Bill.

Bill Heissenbuttel

Good morning, and thank you for joining the call.

I’ll begin on slide four. We delivered solid operating and financial results in the third quarter, despite pressure from lower metal prices. Revenue for the quarter was $131 million, operating cash flow was $95 million, and earnings were $46 million, or $0.70 per share. After removing an FX loss related to the Great Bear acquisition and a minor change in the fair value of equity securities, adjusted earnings were $0.71 per share. Our adjusted EBITDA margin of 77% remained high and in line with last quarter.