Royal Gold, a leading gold-focused royalty company, reported a strong performance for its 2024 second quarter, with a near record revenue of $174 million, a 21% increase over the same period last year. This impressive growth was driven by a combination of higher metal prices and solid portfolio performance, with gold making up 74% of total revenue. The company's adjusted EBITDA margin remained strong at 81%, demonstrating the scalability of its business model.
During the quarter, Royal Gold made strategic acquisitions, including the purchase of two royalties on the Back River gold district in Nunavut, Canada, for a cash consideration of $51 million. This acquisition significantly increases the company's exposure to the Goose Gold development project, a highly prospective and attractive project being developed by B2Gold. These royalties complement Royal Gold's existing position in the Back River district and align with the company's strategy of acquiring high-quality gold royalties in Tier 1 jurisdictions.
The company's financial position remains solid, with a repayment of $100 million on the revolving credit facility, allowing Royal Gold to return to a net cash position. This strategic debt reduction aligns with the company's long-standing strategy of allocating capital to its dividend, balance sheet, and new business opportunities. With the recent acquisition of royalties on Cortez, Great Bear, and Back River, Royal Gold is well-positioned for future growth, particularly in the context of current market volatility and political instability.
The earnings call also highlighted notable developments at several of Royal Gold's principal properties. At Penasquito, Newmont reported strong production driven by high gold and zinc production, while Mount Milligan and Xavantina saw increased contributions from mining and milling operations. At Pueblo Viejo, Barrick reported flat production, with the intention to optimize recovery rates in the second half of the year. These updates underscore the company's diverse portfolio and its ability to generate cash flow from various sources.
Looking ahead, Royal Gold's guidance for overall sales, DD&A, and effective tax rate is on track, reflecting the company's solid financial position and operational performance. With a focus on debt reduction and strategic acquisitions, Royal Gold is well-positioned to navigate the current market landscape and capitalize on opportunities for growth. The company's commitment to its long-standing strategy, combined with its robust portfolio and strategic acquisitions, positions it for continued success in the gold royalty sector.