Royal Gold, Inc. (RGLD) Q4 2022 Earnings Call Transcript

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Royal Gold, Inc. (NASDAQ:RGLD) Q4 2022 Results Conference Call February 16, 2023 12:00 PM ET

Company Participants

Alistair Baker - VP, IR and Business Development

Bill Heissenbuttel - President and CEO

Mark Isto - EVP and COO, Royal Gold Corp.

Martin Raffield - VP, Operations

Paul Libner - CFO and Treasurer

Dan Breeze - VP, Corporate Development of RGAG

Conference Call Participants

Cosmos Chiu - CIBC

Lawson Winder - Bank of America


Good afternoon. Thank you for attending today's Royal Gold, Inc. Calendar Year 2022 Fourth Quarter Conference Call. My sanction is Frances, and I'll beryllium your moderator today. [Operator Instructions]

I would now for illustration to walk nan convention complete to our host, Alistair Baker pinch Royal Gold.

Alistair Baker

Thank you, operator. Good morning, and invited to our chat of Royal Gold's 4th fourth and afloat twelvemonth 2022 results. This arena is being webcast live, and you will beryllium capable to entree a replay of this telephone connected our website.

Speaking connected nan telephone coming are Bill Heissenbuttel, President and CEO; Mark Isto, Executive Vice President and COO of Royal Gold Corporation; Martin Raffield, Vice President of Operations; and Paul Libner, CFO and Treasurer. Randy Shefman, General Counsel; and Dan Breeze, Vice President, Corporate Development of RGAG are besides disposable for questions.

During today's call, we will make forward-looking statements, including statements astir our projections and expectations for nan future. These statements are taxable to risks and uncertainties that could origin existent results to disagree materially from these statements. These risks and uncertainties are discussed successful yesterday's property merchandise and our filings pinch nan SEC. We will besides mention to definite non-GAAP financial measures, including adjusted nett income, adjusted nett income per share, adjusted EBITDA, adjusted EBITDA separator and nett debt. Reconciliations of these non-GAAP measures to nan astir straight comparable GAAP measures are disposable successful yesterday's press release, which tin beryllium recovered connected our website.

Bill will commencement nan telephone pinch an overview of 2022 results. Mark will supply immoderate commentary connected revenue. Martin will springiness immoderate spot updates. And Paul will wrap up pinch nan financial summary. After nan formal remarks, we'll unfastened nan lines for a Q&A session.

I'll now move nan telephone complete to Bill.

Bill Heissenbuttel

Good morning, and convey you for joining nan call. I'll statesman connected descent 4.

2022 was a successful twelvemonth for Royal Gold pinch beardown portfolio capacity successful statement pinch nan guidance we provided successful April. Our beardown 4th fourth helped america extremity 2022 connected a precocious statement and move successful immoderate beardown financial results for nan year.

We delivered gross of $603 million, operating rate travel of $417 cardinal and net of $239 cardinal aliases $3.63 per share. After adjustments, net were $3.43 per share.

We were very progressive successful 2022 successful deploying maturation capital, and we added 3 ample and agelong life royalty liking to nan portfolio, each of which fresh our acquisition strategy of high-quality assets operated by starring counterparties successful safe jurisdictions.

The first was nan acquisition of a royalty connected Kinross' Great Bear task successful Ontario. The 2nd was nan acquisition of an further royalty connected nan Cortez Complex successful Nevada from Rio Tinto. And nan 3rd was nan acquisition of a further royalty liking astatine Cortez, which we telephone nan Idaho Royalty.

We acquired nan Idaho Royalty from various backstage individuals who we person known for galore years. And this transaction came astir done conversations pinch those parties aft nan Rio Tinto Royalty acquisition. With this royalty, we now person vulnerability complete nan entirety of nan Cortez Complex, including nan Robertson project.

Cortez was Royal Gold's first royalty liking successful nan precocious 1980s, and we are pleased that our long-standing relationships location person allowed america to support increasing our vulnerability to 1 of nan world's astir prolific golden mining complexes.

Not only did we place caller finance opportunities, but we besides allocated superior wrong nan portfolio. For nan last $26.5 cardinal finance astatine Khoemacau, we accrued our metallic watercourse percent astatine that plus to 100%.

We deployed complete $900 cardinal during nan year, which makes 2022 our astir progressive twelvemonth of additions since 2015. We kept our attraction connected maintaining shareholder vulnerability to this growth, and we financed these acquisitions without issuing equity. While we took connected leverage during nan year, we person a accordant grounds of paying down debt, and we expect to trim our outstanding borrowings arsenic rate travel allows.

Within nan portfolio, we saw nan return of nan Mount Milligan beforehand payment, excavation life extensions astatine Mount Milligan and Rainy River and first accumulation astatine King of nan Hills.

We besides kept our attraction connected returning superior to shareholders and raised our dividend by 7%. This is nan 22nd yearly summation to nan dividend which is an unmatched grounds successful nan precious metallic sector.

While our G&A costs roseate successful portion owed to inflation, our adjusted EBITDA separator was 79% for 2022 versus 80% successful nan anterior year. Our unsocial business exemplary provides beardown leverage to golden without nonstop vulnerability to operating and superior costs. And while we are not immune from inflationary pressures, our debased and unchangeable costs supply protection against separator compression.

And finally, we issued our inaugural ESG study successful 2022. ESG has ever been important to Royal Gold, and we deliberation this study provides a coagulated instauration to picture our approach. We look guardant to pursuing up connected this study and advancing our disclosure successful this area successful nan adjacent future.

I'll now move nan telephone complete to Mark to supply immoderate comments connected nan portfolio.

Mark Isto

Thanks, Bill.

Turning to descent 5, I'll screen portfolio capacity complete nan twelvemonth compared to guidance. Portfolio capacity was beardown successful 2022. We met income guidance for golden balanced ounces aliases GEOs, some successful position of nan prices we usage to group guidance and nan existent mean marketplace prices.

Sales were astir 337,000 GEOs astatine guidance pricing, but statement that this included astir 3,000 GEOs from nan Rio Tinto and Idaho royalties successful nan 4th quarter. If you region this contribution, which was not included successful our April guidance, accumulation measurement was still successful nan apical half of nan guidance range.

Our DD&A and taxation rates were successful statement pinch guidance, and Paul will spell into much item connected these items successful his comments. 2022 was our first twelvemonth for providing afloat twelvemonth guidance, and we are pleased pinch our process and approach. We expect to supply 2023 guidance early successful nan 2nd quarter.

Turning to descent 6, I'll supply immoderate comments connected nan 4th fourth revenue. Overall measurement for nan 4th was a very beardown 94,000 GEOs. Our royalty conception contributed $54 cardinal successful revenue, a alteration of astir 7% from nan anterior twelvemonth 4th pinch little contributions from Peñasquito and Leeville, partially offset by stronger contributions from nan Cortez Legacy Zone and gross from our caller royalties connected nan Cortez CC Zone. I'll supply much item connected nan Legacy and CC zones and really we deliberation astir our various Cortez royalties connected a blended ground erstwhile I move to descent 7.

At Cortez, we received gross of astir $5.2 cardinal from these caller royalties pinch $4.5 cardinal from nan Rio Tinto Royalty complete nan afloat 4th and $700,000 from nan Idaho Royalty for nan period of December.

Our watercourse conception gross was $109 million, which is fundamentally level compared to nan anterior twelvemonth quarter, higher contributions from Mount Milligan and Xavantina were offset by little gross from Andacollo and Pueblo Viejo.

Turning to descent 7, I want to make a fewer comments connected our wide royalty position astatine nan Cortez Complex. Our royalty position astatine Cortez has grown importantly complete time, and we now ain royalties that overlap successful respective areas. It's a analyzable royalty position, and we've tried to simplify this by grouping our royalties together and providing a azygous blended royalty complaint for each of nan known deposits astatine nan Cortez Complex.

The array connected this descent looks complicated, but pinch a small explanation, I deliberation you'll find it's a useful simplification. Instead of reasoning astir our individual royalties successful nan grey columns connected nan right, we would for illustration you to deliberation astir each of nan mines and deposits shown successful nan rows and blended royalty rates successful nan bluish boxes that use to each of them.

For example, nan Pipeline and Crossroads mines are covered by an approximate 9.4% GSR royalty, while Cortez Hills, Cortez Pits, Fourmile and Goldrush are covered by an approximate 1.6% GSR. We're besides calling nan area covered by our oldest royalties nan Legacy Zone and nan further area covered by nan Rio Tinto and Idaho royalties, nan CC Zone.

The Cortez Complex is ample pinch respective producing mines and improvement projects. And pinch nan acquisition of nan Rio Tinto and Idaho royalties, we now person vulnerability to nan entirety of nan complex. We dream this caller position of our liking will thief you understand nan contributions to Royal Gold from these various areas.

I'll now move nan telephone complete to Martin to springiness an update connected circumstantial assets wrong nan portfolio.

Martin Raffield

Thanks, Mark. I'll now move to descent 8 pinch a fewer comments connected caller developments astatine nan operations.

At Khoemacau, KCM reported that nan ramp-up to nan target operating complaint of 10,000 tons a time was reached successful December, and mining operations continued astatine nameplate capacity successful January, successful statement pinch what we said connected our past quarterly call. They besides reported nan each cardinal operating and costs parameters are successful statement pinch expectations. We are pleased pinch this consequence and we commend nan KCM squad for successfully delivering this project, contempt challenges caused by nan COVID-19 pandemic.

At Pueblo Viejo, Barrick announced that commissioning of nan works description is expected to beryllium substantially complete by nan extremity of this 4th and a pre-feasibility study connected nan caller Naranjo tailings installation was completed successful nan 4th quarter. The completion of this study allowed nan summation of 6.5 cardinal ounces of reserves nett of depletion to Barrick's 60% liking successful Pueblo Viejo astatine nan extremity of '22, which Barrick expects will widen nan excavation life beyond 2040. The ESIA for nan caller tailings installation was submitted successful nan 4th fourth and Barrick expects a determination connected this ESIA during nan first half of this year.

Silver deliveries were astir 337,900 ounces successful nan quarter, including nan transportation of 17,700 deferred ounces, resulted successful a remaining equilibrium of 513,000 deferred ounces. We expect that metallic recoveries could stay highly adaptable until nan works description task is complete, and we don't expect worldly deliveries of deferred metallic this year. We proceed to spot this arsenic a rate travel timing issue, and we don't expect it to person immoderate lasting effect connected metallic revenue.

At Cortez, Barrick announced nan completion of a pre-feasibility study astatine nan Robertson task and declared a maiden reserve of 1.6 cardinal ounces. Barrick expects this will supply a cardinal root of oxide mill provender successful nan Cortez Complex excavation plan. Barrick besides provided an update connected permitting activity astatine nan Goldrush project, and expects nan Record of Decision to beryllium issued by nan extremity of nan first half of this year. In nan meantime, activity continues connected excavation improvement and trial stoping successful areas of Goldrush wherever dewatering is not required arsenic good arsenic exploration drifts supra nan orebody to supply early underground exploration access.

Turning to descent 9. At Wassa, 2022 accumulation was 171,000 ounces, exceeding nan precocious extremity of nan guidance range, chiefly done utilizing unfastened pit ore to supplement underground production. Chifeng is expecting to proceed mining from underground and aboveground operations this twelvemonth and is targeting 2023 accumulation of 180,000 ounces. Chifeng is besides moving connected respective projects successful 2023, including a caller meaning drilling thrust and geotechnical and shaft creation studies for nan South hold and a caller portal to entree ore beneath nan historical 242 pit.

I'll statement that we nary longer explanation Wassa arsenic a main property. We complete periodic reviews to find nan materiality of liking successful our portfolio. And fixed immoderate of our caller acquisitions, Wassa's comparative publication nary longer meets management's criteria to beryllium described arsenic a main property. However, Wassa remains an important plus wrong our portfolio, and we look guardant to seeing really Chifeng continues to beforehand nan various projects underway.

At Great Bear, Kinross released nan maiden assets connection earlier this week, on pinch a task update, and we are pleased to spot nan first 5 million-ounce assets made up of 2.7 cardinal ounces of indicated and 2.3 cardinal ounces of inferred resources. As they described successful their task update, their attraction truthful acold has been connected nan apical 500 meters of nan deposit pinch promising exploration results astatine extent exceeding 1,000 meters from surface.

They are readying a afloat drill run this twelvemonth to trial continuity astatine extent arsenic good arsenic continued drilling on onslaught and connected immoderate of nan parallel structures identified truthful far. And we deliberation location is bully imaginable to grow this maiden assets arsenic they get underground pinch an exploration diminution successful nan adjacent mates of years. We had an update pinch their method squad past week, and they are executing to a elaborate scheme pinch a attraction connected expanding their knowledge of nan orebody successful bid to beforehand nan task arsenic quickly arsenic possible.

Finally, affirmative developments continued astatine immoderate of our smaller portfolio assets complete nan quarter, which are mentioned successful yesterday's property release. For example, Xavantina’s golden accumulation guidance for 2023 is complete 20% higher than existent 2022 production. Red 5 reached commercialized accumulation astatine King of nan Hills successful mid-December. Hochschild reported nan full task advancement is 50% complete astatine Mara Rosa, and early useful person started astatine Manh Choh pinch first accumulation connected way for 2024.

I'll now move complete nan telephone to Paul for a reappraisal of our financial results.

Paul Libner

Thanks, Martin.

I'll now move to descent 10 and springiness an overview of nan financial results for nan quarter. For this discussion, I'll beryllium comparing nan 4th ended December 31, 2022 to nan anterior twelvemonth quarter.

Revenue was $163 cardinal for nan quarter, a alteration of 3%. The main driver of our little gross this 4th was a alteration successful nan mean commodity prices erstwhile compared to nan anterior twelvemonth period. Compared to nan anterior twelvemonth quarter, nan value of golden was down 4%, metallic was down 9% and copper was down 18%.

As Mark mentioned successful his remarks, we besides recognized conscionable complete $5 cardinal successful caller gross from nan precocious acquired Cortez interest, and had wide beardown performances wrong some our watercourse and royalty segments. Gold remains nan ascendant gross source, making up 73% of our full revenue, followed by copper astatine 12% and metallic astatine 11%.

Turning to descent 11. G&A disbursal accrued $8.8 cardinal from $8 cardinal successful nan anterior twelvemonth quarter. The summation was chiefly owed to higher ESG-related costs arsenic portion of our broader ESG initiatives. Specifically, during nan quarter, we contributed complete $800,000 to various programs successful nan communities wherever we person royalty aliases watercourse liking and successful nan communities wherever our labor unrecorded and work. Although inflationary pressures proceed to person an effect connected immoderate of our producing peers, our rate G&A costs person remained debased aliases little than 5% of full revenue.

Our DD&A disbursal was $49 million, which was level compared to nan anterior twelvemonth quarter. On a portion basis, this disbursal was $521 per GEO for nan 4th and $534 per GEO for nan afloat year. Full twelvemonth DD&A was successful statement pinch our earlier guidance scope of $510 to $560 per GEO.

With respect to nan Idaho Royalty, we acquired for $204 cardinal successful December, we allocated $73.4 cardinal aliases astir 36% of nan acquisition value to accumulation shape royalty interests. This will beryllium depleted utilizing units of accumulation based connected proven and probable reserves arsenic reported by NGM. The remainder of nan worth was allocated to exploration shape royalty interest, which is not presently taxable to depletion and will beryllium reclassed to accumulation shape arsenic further worldly is classified arsenic reserves.

Interest disbursal accrued to $6.1 cardinal during nan 4th fourth from $900,000 successful nan anterior period. The summation was owed to higher mean magnitude outstanding nether our revolving in installments installation and higher liking rates erstwhile compared to nan anterior period.

Tax disbursal for nan 4th was $13 million, resulting successful an effective taxation complaint of 18.2%. This compares to $14 cardinal and effective taxation complaint of 17% successful nan anterior twelvemonth period. For nan afloat year, taxation disbursal was $33 million, and nan effective taxation complaint was 12.1%. Our afloat twelvemonth taxation disbursal and effective taxation complaint benefited from a antecedently mentioned discrete taxation arena during nan June quarter, which was related to nan merchandise of a valuation allowance connected definite overseas deferred taxation assets.

Excluding this discrete item, nan effective taxation complaint for nan afloat twelvemonth was 19%, which was successful statement pinch our guidance scope of 17% to 22%. Earnings for nan 4th were down complete nan anterior twelvemonth to $56 cardinal aliases $0.86 per share. After adjusting for a onetime impairment of $4.3 cardinal connected a non-principal exploration shape royalty liking during nan quarter, our adjusted net were $60 cardinal aliases $0.91 per share. Earnings successful nan anterior twelvemonth 4th were $68 cardinal aliases $1.04 per share. The main contributors to decreased net this 4th erstwhile compared to nan anterior twelvemonth were little revenue, higher liking disbursal and nan impairment of nan exploration shape royalty interest.

Operating rate flows were beardown this 4th pinch $101 cardinal compared to $119 cardinal successful nan anterior year. The alteration during nan 4th was a consequence of little contributions from nan royalty segment.

As Mark mentioned, we expect to supply afloat guidance for 2023 early successful nan 2nd quarter, erstwhile astir of our counterparties person issued their ain accumulation guidance for almanac 2023. However, to thief you hole your March 4th estimates, we expect our watercourse conception income to scope betwixt 54,000 and 59,000 GEOs during nan first 4th of 2023. This estimate takes into information an early watercourse transportation we received from Mount Milligan this 4th and nan effect of dense rainfall and nan unplanned attraction during nan September 2022 4th astatine Andacollo.

I will now move to descent 12 and supply a summary of our financial position astatine nan extremity of nan quarter. During nan quarter, we drew $200 cardinal of nan revolving in installments installation to thief money nan Idaho Royalty, but besides made a $75 cardinal repayment connected nan revolver earlier successful December. As a result, we ended 2022 pinch $575 cardinal outstanding nether our revolving in installments installation astatine a existent all-in borrowing complaint of 5.9%.

The $425 cardinal undrawn revolver capacity mixed pinch $122 cardinal of moving superior provided a full disposable liquidity of astir $550 cardinal astatine nan extremity of nan quarter. In keeping pinch our attack to superior allocation, we expect to repay nan $575 cardinal outstanding revolver equilibrium arsenic rate travel allows and absent immoderate further business improvement activity. At existent metallic prices, we expect repaying this magnitude by astir mid-2024. Beyond our existent indebtedness outstanding, we person nary different important financial commitments arsenic of nan extremity of nan quarter.

That concludes my comments connected our financial capacity for nan quarter. And I will now move nan telephone backmost to Bill for closing comments.

Bill Heissenbuttel

Thanks, Paul. I americium pleased pinch our capacity successful 2022. We person a agelong history of managing our business astir a elemental group of strategical goals that see acquiring high-quality and long-life assets successful safe jurisdictions, backing our maturation pinch constricted equity dilution, maintaining a beardown equilibrium expanse and liquidity and expanding our return to shareholders. We achieved each of those.

Our portfolio besides performed well, and we successfully met our inaugural guidance. We spot continued advancement astatine respective assets successful nan portfolio and we expect immoderate of those to supply absorbing news travel successful nan adjacent to mean term.

We are readying to big a virtual investor update connected Thursday, April 20th, and we look guardant to giving you a further elaborate update connected our business during that session.

Operator, that concludes our prepared remarks. I'll now unfastened nan statement for questions.

Question-and-Answer Session


Thank you. [Operator Instructions] Our first mobility comes from Cosmos Chiu pinch CIBC. Please spell ahead.

Cosmos Chiu

Thanks, Bill and team. Maybe my first mobility is connected Great Bear. As you mentioned, you benignant of touched connected it. Kinross precocious published its first resource, 2.7 cardinal indicated, 2.3 cardinal ounces inferred. I guess, my mobility is, really does that comparison to your models erstwhile you execute a owed diligence past twelvemonth earlier nan acquisition of nan Great Bear Royalties. The numbers that came retired earlier this week, really do they comparison to your soul models?

Bill Heissenbuttel

Cosmos, it's Bill. Thanks for nan question. I'll astir apt move it complete to Martin successful a second, but I deliberation nan 1 point I conscionable -- nan overarching remark I want to make is, we ne'er expected nan first assets to beryllium nan eventual resource, and we had expected things to beryllium staged a small bit. I deliberation nan attraction presently is down 500 meters. And I deliberation we felt beautiful bully astir it. But Martin, is location thing you'd for illustration to add?

Martin Raffield

Yes. Thanks, Bill, and hullo Cosmos. So I deliberation Bill has really said it each there. But erstwhile we did our owed diligence, we did a batch of activity connected evaluating nan orebody from nan accusation that was location astatine nan time. And I deliberation this is very overmuch successful statement pinch what we expected from nan first 500 meters. The drilling beneath nan 500 meters is starting to show really bully results arsenic reported by Kinross earlier successful nan week. And we're excited to spot what happens complete nan adjacent year. But yes, surely successful statement pinch our expectations erstwhile we made nan purchase.

Cosmos Chiu

Great. And then, possibly switching gears to Pueblo Viejo. You benignant of touched connected this arsenic well, but nan deferred metallic ounces, I cognize there's still immoderate uncertainties coming up. But I guess, my mobility is what conditions benignant of came together successful Q4 to let them to present connected immoderate of those deferred metallic ounces? And what's nan read-through successful short word and agelong word into what that intends for metallic production?

Bill Heissenbuttel

Yes. Martin, I mightiness move that 1 correct backmost to you arsenic well.

Martin Raffield

Thanks. I deliberation nan deferred metallic transportation was conscionable a consequence of nan accumulation during nan 4th and nan people that they saw successful various months and nan betterment that they saw pinch that. We are still firmly of nan sentiment that erstwhile nan upgrades are made to nan works that that is going to hole nan rumor that they person pinch metallic recovery. And that's erstwhile we'll really commencement seeing our metallic travel backmost to us. But looking astatine -- looking astir apt astatine nan second, 3rd 4th to commencement seeing nan works ramp up.

Cosmos Chiu

Great. And possibly taking a measurement backmost here, I appreciate, arsenic you said, you don't person nan 2023 yearly guidance yet, conscionable fixed that immoderate of nan operators are still putting retired their ain guidances. But 1 institution has fixed you guidance, Barrick, much specifically. I deliberation you mentioned successful nan property release, 580,000 to 650,000 ounces astatine Cortez for their 61.5% interest. I conjecture 2 parts: Number one, is that benignant of successful statement pinch what you had expected; and number two, acknowledgment for giving america nan specifications successful descent number 7 successful position of nan different components of nan Cortez royalty these days. But to benignant of return a measurement back, really tin we usage that array to thief america pinch modeling, what nan publication is yet to Royal Gold utilizing this 580,000 to 650,000 ounces fixed today?

Bill Heissenbuttel

Yes. Cosmos, you didn't recognize my existent occupation present is to drawback nan mobility and pivot location else, so.

Cosmos Chiu

Very good…

Bill Heissenbuttel

Yes, right. Exactly. And Mark covered Cortez, and I will inquire if he's sewage thing to add. I deliberation correct now, nan 100% number is simply a small difficult for america to show you because we've surgery nan royalty up into zones, and until we person nan area production, I can't show you what’s astatine 9.4%, I can't show you what’s astatine 1.6%. So I'm not judge I could thief you, but that's why I'm going to spell to Mark and say, is location thing I'm missing here?

Mark Isto

No, you're right, Bill. Normally, Cosmos, we usually get accumulation guidance that we springiness astatine nan extremity of nan -- aliases for nan Q1 convention call. So -- and I would expect nan same. So, we request Cortez to show america what's associated astatine this constituent pinch nan various pieces and chiefly nan Crossroads and Pipeline portion that gets surgery out. So, we really can't supply overmuch different than nan world number astatine this point. But nan world number is surely successful statement pinch our expectations.

Cosmos Chiu

Great. Perfectly understood. Maybe 1 past question. And first off, I request to congratulate you, Bill, for making it to nan S&P High Yield Dividend Aristocrats Index. I cognize that was almost a twelvemonth now, but I deliberation immoderate group don't admit really overmuch of an accomplishment that is. And past connected that, to travel up, Bill, intelligibly dividend is very important to you. Could you punctual america successful position of superior allocation? How you look astatine dividend versus growth, royalty, acquisitions? And what's nan marketplace retired there? How does that look correct now?

Bill Heissenbuttel

Yes. Well, connected nan superior allocation, our position is nan champion point we tin do for shareholder worth is to find caller assets. Because you return rate that worth 1 times NAV connected our equilibrium sheet, and you invested successful thing that hopefully commands a premium to that. So, that's ever going to beryllium privilege number one. Priority number 2 is to salary down debt. If we've taken connected indebtedness to make acquisitions, we want to salary that down arsenic quickly arsenic possible, reconstruct that liquidity. But I mightiness rank dividends third, but it's evidently very important to us. And I convey you for noting our achievement. We're very proud of it. And again, conscionable admit your comments.

I deliberation nan 2nd portion of your mobility had to do pinch nan marketplace successful wide and benignant of business development. If that's nan case, I'd spot if Dan tin hop connected present and springiness america -- springiness you his thoughts.

Dan Breeze

Yes, happy to, Bill. Hi Cosmos, dream you are doing well. Look, I deliberation nan themes that we saw past year, Cosmos, nan indebtedness being much expensive, equity -- peculiarly precious metallic equity to raise that successful nan market, I deliberation those proceed to beryllium challenging. So I deliberation that's good. I deliberation that's what we're seeing correct now. I'd opportunity we're seeing benignant of 3 buckets of opportunities. I'd opportunity nan first 1 is we're seeing nan larger financing for task developments, that $100 cardinal to $300 cardinal scope we've been talking astir for a number of quarters. That's still very overmuch applicable correct now successful position of nan size that we're seeing, and that's bully for us. We person nan liquidity, arsenic you heard, to grip that benignant of a size of a transaction.

And then, if you look astatine our size versus our peers, that's rather worldly for us. So, we for illustration that portion of nan marketplace correct now. We're besides seeing rather a fewer smaller, I'd say, earlier shape royalties, $10 cardinal to $30 cardinal benignant of sizing. And again, I deliberation that's related to nan equity being challenged correct now. We're very busy. We person been very engaged looking astatine a number of opportunities and really leaning connected nan method squad to effort to place those opportunities, those onshore packages that person upside. So, that's been engaged for us.

And then, nan 3rd bucket, smaller bucket is M&A. And we person seen a fewer opportunities wherever streaming has been considered to thief an usability get an plus aliases get a company. And so, that's been absorbing arsenic well. And I'd opportunity that's benignant of popped up present successful nan last, say, six months aliases truthful arsenic nan 3rd bucket.

That's benignant of what we're seeing correct now. I deliberation we for illustration nan pipeline, chiefly complete superior golden assets, but we person seen a fewer guidelines metallic opportunities pinch precious metallic byproducts arsenic well. We for illustration that, obviously, nan longer excavation lives, it fits our merchandise very well. So hopefully, that helps you pinch a spot of colour successful nan market.

Cosmos Chiu

Yes, it does. So, acknowledgment again, Bill, Martin, Mark and Dan for answering each my questions. And congrats connected a very successful 2022.


Our adjacent mobility comes from Lawson Winder pinch Bank of America. Please spell ahead.

Lawson Winder

Hello gentlemen. Thank you for nan update today. I wanted to inquire 1 aliases 2 questions, astatine slightest 1 connected ESG. So first of all, congratulations connected publishing your first ESG study past year. I look guardant to nan caller 1 coming this year. I surely deliberation those reports tin thief pinch nan rankings. But I wanted to benignant of get your thoughts connected that a small bit, conscionable fixed that nan royalty streamers successful general, but Royal Gold arsenic good continues to benignant of lag nan miners successful position of improvements successful ESG scores pinch nan various scoring companies. Bill, I'd emotion to get your thoughts connected what you deliberation nan industry, but successful particular, Royal Gold tin do to amended that.

Bill Heissenbuttel

Given that -- Lawson acknowledgment for that. Given nan quality of our business, I can't look astatine nan scores and say, well, I deliberation we tin spell -- we tin get it improved pinch Sustainalytics aliases amended pinch MSCI. I mean, I deliberation we're already classed AA for illustration number 2 aliases 3 amongst nan golden sector, and one, our Sustainalytics people has improved rather a spot complete nan past fewer years.

And I deliberation nan different point is that because we're specified a unsocial business, sometimes nan questions we get from these firms benignant of overgarment america arsenic a mining company, and past we can't reply nan mobility nan measurement they want america to and that sometimes tin effect our score. So, I'm happy pinch wherever nan scores are. I'm very happy pinch nan betterment we've seen complete nan past fewer years. I conscionable -- I can't really springiness you a way guardant arsenic to really we would return actual steps to amended it. But we're ever successful discussions pinch them. So, ever trying to study much astir really they do their rankings.

Lawson Winder

Now, nan adjacent report, erstwhile astir tin we expect that? And what benignant of caller specifications mightiness we expect?

Bill Heissenbuttel

Well, nan extremity present is our Investor Day is April 20th, would beryllium to person it retired successful beforehand of that meeting, truthful that we tin return questions from folks who person had a chance to get done it. A batch of it, I think, will look similar. I deliberation nan 1 point that we've made a batch of awesome strides connected it, and Mark deserves each nan in installments for it aliases astir of nan in installments for it, is TCFD disclosure. And I deliberation you'll spot -- compared to what we did past year, you're going to spot a batch much item connected that analysis.

Lawson Winder

All right. That's fantastic. I look guardant to that. Can I really -- follow-up connected nan woody pipeline mobility that was asked earlier by Cosmos. So you've had a batch of occurrence expanding exposure, peculiarly to high-quality North American-based assets successful nan past year. I deliberation it's awesome for nan Company. What are you seeing successful nan pipeline successful position of akin kinds of North American-based assets, peculiarly successful that $200 cardinal to $300 cardinal range, but possibly extracurricular of that? And past possibly conscionable jumping disconnected from that, if it's not North America, what are nan geographies that benignant of characteristic successful nan existent pipeline?

Bill Heissenbuttel

Yes. I'm not judge we tin break it down geographically excessively much. But Dan, is location thing you would adhd there?

Dan Breeze

Yes. I deliberation it's reasonably broad. And you're right, looking backmost complete 2022, 2021, moreover nan $1.3 cardinal aliases truthful that we deployed, we were very happy pinch nan value of nan assets that we were capable to acquire. There is -- surely is value retired location still. Lawson, we're focused on, arsenic I mentioned, some royalties and streams correct now. But we're besides very, very disciplined. And I mentioned astir these smaller royalties complete earlier shape projects. We're very focused connected nan people, task and spot criteria that we've talked to successful nan past. And we don't person to do anything. We're very, very patient. So, I'd say, nan value is still there. We've been capable to transact, but we're besides really observant astatine nan infinitesimal pinch immoderate of these royalty opportunities that are possibly a small spot excessively early for america to consider.


[Operator Instructions] There are nary questions waiting astatine this time. So, I'll walk nan convention backmost complete to nan guidance squad for immoderate closing remarks.

Bill Heissenbuttel

Thank you. Thank you for taking nan clip to subordinate america today. We surely admit your liking successful Royal Gold. And we look guardant to updating you connected our advancement during our Investor Day and nan adjacent quarterly call. Have a bully day.


That concludes nan Royal Gold, Inc. almanac twelvemonth 2022 4th fourth convention call. Thank you for your participation. You whitethorn now disconnect your lines.

Editor: Naga

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