Royal Gold's Q4 2024: Contradictions in Revenue Mix, Corporate Transactions, and Royalty Assumptions

These are the key contradictions discussed in Royal Gold's latest 2024Q4 earnings call, specifically including: Revenue Mix and Corporate Transactions Opportunities:



Revenue and Operational Performance:
- Royal Gold reported a stronger-than-anticipated fourth quarter with record revenue of $719 million, Operating cash flow of $530 million, and net income of $332 million.
- The growth was driven by higher-than-expected revenue from the Peñasquito and Cortez royalties and an earlier-than-expected delivery from Andacollo.

Dividend and Financial Stability:
- The company increased its dividend to $1.80 per share for 2025, marking the 24th consecutive annual dividend increase.
- Royal Gold maintained its financial stability by completely repaying its revolving credit facility and finishing the year with approximately $1.2 billion in available liquidity.

Asset and Royalties Acquisition:
- Royal Gold acquired a 2.5% NSR royalty over the Cactus project for $55 million, highlighting its interest in non-precious metal investments in markets it understands.
- This strategic acquisition is expected to generate 4,000 to 6,000 GEOs per year in the first 15 years at current prices.

Portfolio and Regional Contributions:
- Approximately 55% of Royal Gold's total revenue in 2024 was generated from its principal properties, including Andacollo, Cortez, Mount Milligan, and Pueblo Viejo.
- The company's revenue was mainly attributed to gold, with 76% of total revenue, and 60% from operations in the U.S., Canada, and Australia.