Royal Gold Kicks Off 2025 with Record-Breaking Earnings and Strategic Investments
Royal Gold, a leading precious metals streaming company, began 2025 on a high note by reporting record-breaking earnings for the first quarter. In a recent conference call, the company's leadership team provided an overview of its performance, highlighting key achievements and strategic investments.
The quarter saw Royal Gold deliver steady performance across its portfolio, with a strong and rising gold price serving as a significant tailwind. Earnings for the period reached a record $113 million or $1.72 per share, with adjusted earnings coming in at a strong $100 million or $1.51 per share after accounting for discrete tax items.
Gold continued to be the largest contributor to revenue for the quarter, making up around 75% of total revenue. The company's geographic weighting remained consistent, with over 53% of its revenue generated from the U.S., Canada, and Australia. Royal Gold maintained its high margins, boasting an adjusted EBITDA margin of 82% for the quarter.
In a significant move, the company paid its first dividend of 2025 at a new quarterly rate of $0.45 per share, representing a 12.5% increase over 2024. This marked the 25th consecutive year that Royal Gold has increased its annual dividend, solidifying its position as the only precious metals company in the S&P High Yield Dividend Aristocrats Index.
The company also achieved full repayment of the Rainy River advanced stream deposit during the quarter. Having invested in Rainy River's initial construction back in 2015, Royal Gold is pleased to see New Gold's plans for at least another 9 years of operation as they continue to expand the pit and ramp up underground production.
In other news, Royal Gold entered into an additional agreement with Ero Copper to acquire an incremental stream interest at Xavantina. This move is expected to increase the stream coverage in a very prospective area, where Ero has successfully added high-grade resources and increased production since its initial investment by Royal Gold in 2021.
The company invested $50 million for this additional interest from its cash balance, which left it with $1.25 billion of total available liquidity at the end of the quarter. Furthermore, Royal Gold published new editions of its Investment Stewardship Report and Asset Handbook in mid-April. These comprehensive documents aim to help the market understand the company's portfolio and outlook for its business.
"Our first quarter gave us a solid start to 2025," stated William Heissenbuttel, President and CEO of Royal Gold. "Our portfolio delivered steady performance, and the strong and rising gold price was a significant tailwind."
Royal Gold's quarterly results demonstrate its continued success in navigating the precious metals market while implementing strategic investments to further drive growth.
