(RTTNews) - Gold mining properties developer Royal Gold, Inc. (RGLD: News ,RGL.TO: News ) reported Thursday an increase in first-quarter profit, helped by higher production and prices of gold. On a per share basis, earnings came in above analysts' estimate by a penny.

For the first quarter, net income attributable to Royal Gold stockholders advanced to $7.13 million from $5.75 million in the past year. On a per share basis, earnings was $0.17, flat from the previous year. On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share in the first quarter. Analysts' estimate typically excludes special items.

Comprehensive income attributable to Royal Gold stockholders rose to $7.18 million from $5.44 million. Comprehensive income attributable to non-controlling interests increased to $1.99 million from $237 thousand in the prior-year period.

Royal Gold recorded a net income of $9.12 million, up from $5.98 million a year earlier.

Royalty revenues for the quarter surged 62% to $26.11 million from $16.08 million, chiefly attributable to higher production at Taparko and Cortez, commencement of production at Dolores, new contributions from royalties obtained in the Barrick transaction and higher year-over-year gold prices.

The company noted that Gold accounted for 86% of the revenues in first quarter of fiscal 2010, compared to 69% for the same period in the previous year.
Total costs and expenses for the three month period more than doubled to $15.36 million from $7.62 million in the comparable quarter of fiscal 2008.

Commenting on the results, Tony Jensen, chief executive of Royal Gold, said, "Our long-term strategy of increased revenue diversification is now paying off in the form of strong quarterly revenue which we have seen over the past several quarters."

Goldcorp, the operator of Royal Gold's Peñasquito property, revealed that the first lead and zinc concentrates from the initial sulfide circuit was produced and the first shipment to the smelter is planned for later in calendar 2009. Goldcorp expects to attain commercial production in the first three months of calendar 2010. Further, Goldcorp said that construction of the second sulfide circuit is progressing toward planned completion in the third quarter of calendar 2010.

In October 2009, Revett Silver Company's unit Genesis, Inc, and Royal Gold completed a restructuring of the Company's royalties at the Troy mine. Royal Gold said that two of the remaining gross smelter return, or GSR, royalties, which were scheduled to produce royalty revenue in mid-2012, were restructured into a perpetual 3.0% GSR royalty which will take effect on July 1, 2010. Royal Gold reimbursed Genesis $1.5 million in consideration for the restructured royalty.

To receive FREE breaking news email alerts for Royal Gold Inc. and others in your portfolio

 1   2   Next Page