Royal Gold Reigns Supreme: Setting Records and Returning Value to Shareholders
Royal Gold Inc. has just reported its 2024 full year and fourth quarter results, and the numbers are nothing short of impressive. In a recent conference call, the company's leadership team provided an overview of their outstanding performance, highlighting records set for revenue, operating cash flow, and earnings.
According to Bill Heissenbuttel, President and CEO, 2024 was an excellent year for Royal Gold, with record revenues of $719 million, operating cash flow of $530 million, and net income of $332 million. These figures represent a 19%, 27%, and 39% increase over the previous year, respectively.
The company's adjusted earnings per share (EPS) reached an all-time high of $5.26, while its adjusted EBITDA margin surpassed 81% for the full year and almost 84% in the fourth quarter. These impressive results demonstrate Royal Gold's business model, which is not directly exposed to inflationary cost pressures and has allowed it to maintain strong margins with the rising gold price.
Royal Gold has consistently demonstrated its commitment to returning value to shareholders. In 2024 alone, the company paid over $105 million in dividends, bringing its total dividend payments since inception to approximately $1 billion. This represents an unmatched record in the precious metals industry, with a 24th consecutive annual dividend increase.
The company's financial position is equally impressive. Royal Gold has completely repaid its revolving credit facility and finished the year with no debt and approximately $1.2 billion of available liquidity. This strong balance sheet provides a solid foundation for future growth and investments.
Additionally, Royal Gold has been actively expanding its portfolio through new revenue streams from mines such as Mara Rosa, Manh Choh, and Côté Gold, which all poured first gold in 2024. The company has also entered into agreements with Centerra at Mount Milligan and added new royalties on the Back River Gold District in Canada and the Cactus project in Arizona.
In conclusion, Royal Gold's 2024 full year and fourth quarter results are a testament to the company's strength and resilience. With records set for revenue, operating cash flow, and earnings, a solid balance sheet, and a commitment to returning value to shareholders, Royal Gold is well-positioned for continued success in the future.
