Watch List Profile: Royal Gold, Inc.

Royal Gold, Inc. (NASDAQ: RGLD)
Denver, CO  80202
http://www.royalgold.com/

52-week low / high: $23.25 / $37.50
Shares Outstanding:  28.66 million
Market Capitalization:  $942.18 million

Royal Gold, Inc. (RGLD) acquires and manages precious metals royalties by providing financing, engaging in exploration alliances or through outright purchase of a discounted future stream of revenues from exploration and mining companies.

Royal Gold has royalty interests in at least five mining operations in Nevada, and one each in Montana, Sonora, Mexico and Santa Cruz Province, Argentina. Royalties from each vary and some are dependent on the price of the underlying precious metal, i.e., higher prices bring higher royalties. During the fiscal year ended June 30, 2007, roughly 44% of revenues came from its first property: the Pipeline Mining Complex, near Elko, Nevada.

Royal Gold seems to have uncovered the secret to making lots of money without mussing their hair.

In the fiscal year ended June 2007, revenues were $48.4 million, up 70% from $28.4 million in 2006. Net income for fiscal 2007 was $19.7 million, or $0.79 per basic share, versus $11.4 million, or $0.50 per basic share, in 2006. Fourth quarter revenue (June 30, 2007) was $14.4 million, up 76% from $8.2 million in 2006.

Also as of June 300, 2007, the company had working capital of $91 million on hand, total current assets of $95.7 million and current liabilities of $4.7 million, a current ratio of 20 to 1. The company can be summed up in one word: outstanding.

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below