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Mining companies report Q4 results
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Mining companies report Q4 results

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Barrick Gold Corp.

The Carlin Trend “will be the primary hunting ground” for Nevada Gold Mines exploration this year, Mark Bristow, president and chief executive officer of Barrick Gold Corp. said in Barrick’s teleconference on earnings that showed a good fourth quarter for the company.

Barrick reported net earnings of $1.39 billion, or 78 cents per share, in the fourth quarter and adjusted net earnings of $300 million, of 17 cents per share, in the fourth quarter of 2019. The 17-cent earnings were higher than the 14-cent forecast from Wall Street, according to The Associated Press.

The earnings compared with net earnings of $69 million, or 6 cents per share, in the fourth quarter of 2018 and an adjusted loss of $1.2 billion, or $1.02 per share, because of impairment write-downs at the Lagunas Norte Mine in Peru and at Veladaro in Argentina in the 2018 quarter.

The fourth quarter of 2018 was prior to Barrick and Randgold Resources merging on Jan. 1, 2019, and the Nevada Gold Mines merger mid-year 2019.

For Nevada, Barrick will be looking at the near-mine extension potential at the Rita K and Greater Leeville deposits and potential at the area around the Goldstrike operations in Nevada, according to the Barrick presentation.

Toronto-based Barrick and Denver-based Newmont Corp. formed the joint venture called Nevada Gold Mines on July 1, 2019, combining their mines in Nevada. Barrick holds 61.5 percent of the JV, and Newmont, 38.5 percent.

The focus on exploration the Carlin Trend follows the major gold discoveries at Fourmile, a Barrick exploration project on the Cortez mining trend. Fourmile is outside the joint venture at this point, but Bristow said it is likely to be brought into the fold.

He said Barrick is “confident it is pointing to a multi-million-ounce, high-grade” gold project. Inferred mineral resources are now at 1.89 million ounces at Fourmile.

Goldrush nearby is now under Cortez management and a final feasibility study for the project is expected to be ready in early 2021. Goldrush is part of the joint venture. Construction of twin exploration declines at Goldrush is ahead of plan and now 61 percent complete, Barrick reported in its earnings slide presentation.

Barrick’s executive vice president for exploration and growth, Rob Krcmarov, stated in the earnings report that Cortez-Goldrush is a prime example of how orebody knowledge and quality geological work have delivered world-class discoveries.

Another Nevada Gold Mines operation, the underground Turquoise Ridge Mine in Humboldt County, is on schedule for completion of a third shaft that Bristow said will add value and allow Barrick “to debottleneck the mine,” with the extra ventilation.

He said Turquoise Ridge offers excellent opportunities.

Bristow also said remediation of the pit wall failure at the Gold Quarry Mine north of Carlin and a new pit design make the “potential to extend the mine life absolutely real.” Mining stopped at Gold Quarry after the wall failure in the fall of 2017.

Looking at the year and fourth quarter ending Dec. 31, Barrick reported the realized gold price for the fourth quarter was $1,483 per ounce, and the realized gold price for the year 2019 was $1,396 per ounce, which compared to the gold price of $1,270 per ounce for the 2018 year, according to the Barrick report.

Barrick also reported a dividend for the quarter ending Dec. 31, 2019, of 7 cents per share payable March 16. The dividend is up 40 percent over the last quarter.

The senior executive vice president and chief financial officer for Barrick, Graham Shuttleworth, said this was the third dividend increase this year and reflected Barrick’s performance for the year and the company’s profitability and financial strength.

Barrick’s fourth-quarter and year-end report showed that gold production companywide for the year totaled nearly 5.47 million ounces and copper production was 432 million pounds, and gold reserves are at 71 million ounces of gold companywide.

Mineral resources at a $1,500 gold price per ounce are at 170 million ounces.

For the fourth quarter, gold production was at 1.44 million ounces and cash costs averaged $692 per ounce. All-in sustaining costs averaged $923 per ounce. Copper’s cash cost was $1.90 per pound and all-sustaining costs, $2.82 per pound. The realized copper price in the quarter was $2.76 per pound.

Nevada’s fourth-quarter gold production was 585,000 ounces for Barrick’s share and 951,000 ounces on a 100 percent basis, according to the Barrick report. Cash costs in Nevada were $711 per ounce for gold, and the all-in sustaining costs averaged $944 per ounce.

On a 100 percent basis that includes Newmont’s share, Cortez produced 216,000 ounces, Carlin operations, 449,000 ounces, Turquoise Ridge, 181,000 ounces (including the Twin Creeks Mine), Phoenix copper and gold mine, 50,000 ounces and Long Canyon, 55,000 ounces, Barrick reported.

Bristow said Long Canyon is making good progress on its expansion and pit pushback and is still looking at going underground.

In the earnings report, the CEO stated that “in the year since the completion of Barrick’s merger with Randgold Resources, we have transformed the new company while creating the world’s largest gold mining complex in Nevada in a transaction that had been unsuccessfully pursued for two decades.”

Worldwide, Barrick made changes that included buying out Acacia to settle that company’s long-running dispute with the Tanzania government and selling its 50 percent stake in the Kalgoorlie operations in Australia and agreeing to sell the Massawa project in Senegal.

Barrick also stated that there were strong performances across the board in Latin America, the Asia Pacific and the Africa Middle East operations, and the expansion at the Pueblo Viejo Mine in the Dominican Republic will unlock new potential. Barrick is 60 percent owner and operator. Newmont Corp. holds the remaining 40 percent of the mine.

Newmont Corp.

Newmont Corp. reported fourth-quarter earnings that were much higher than the prior year and beat expectations, boosted by glittering gold prices, with the adjusted net earnings at $410 million, or 50 cents per share. The share price was up 10 cents over the 2018 quarter.

Wall Street predicted earnings of 48 cents per share, according to a survey by Zacks Investment Research.

The adjusted net income compared with $210 million in the fourth quarter of 2018.

Net income based on generally accepted accounting principles was $537 million, or 66 cents per share, in the quarter ending Dec. 31, according to Greenwood Village, Colo.-based Newmont, an increase of $540 million from the 2018 quarter primarily due to higher production from acquired assets and higher gold prices.

The spot gold price averaged $1,483 per ounce in the fourth quarter, up 21 percent over the 2018 quarter, and the price has gone above $1,600 an ounce in 2020.

Newmont Chief Financial Officer Nancy Buese said in the company’s Feb. 20 earnings teleconference that Newmont uses a gold price of $1,200 per ounce for not only figuring gold reserves but for a “disciplined approach” for planning purposes, so every $100 hike per ounce in the gold price results in a $400 million savings for Newmont.

The excess free cash flow goes for debt reduction and shareholder returns, she said.

Revenue also rose to $2.97 billion in the quarter, up 45 percent over the 2018 quarter, for the company that formed Nevada Gold Mines joint venture with Barrick Gold Corp. last July 1 and acquired Goldcorp Inc. on April 18, 2019.

The joint venture Nevada Gold Mines that combined both companies’ mines in the state is owned 61.5 percent by Barrick and 38.5 percent by Newmont and operated by Barrick, so Barrick reports on the Nevada operations. Newmont did report that earnings before interest, taxes and depreciation and amortization (EBITDA) from the joint venture totaled $267 million in the fourth quarter.

For the quarter ending Dec. 31, Newmont’s share of gold production from the joint venture was 366,000 ounces of gold at an all-in sustaining cost of $883 per ounce.

The company wrote that formation of the joint venture diversifies Newmont’s footprint in Nevada and allows Newmont to benefit from additional efficiencies through integrated mine planning and processing. The company accounts for its interest in NGM using the proportionate consolidation method, according to the report.

Looking at all of 2019, Newmont President and Chief Executive Officer Tom Palmer said in the earnings announcement that the company “returned $1.4 billion to shareholders through dividends and share repurchases and as we enter our centenary year, Newmont is well positioned with the industry’s largest reserve base strategically located in top-tier jurisdictions that enable us to sustain production and generate robust cash flow across price cycles.”

Buese said Newmont has bought back 500 million shares so far. Newmont announced on Dec. 2 it would buy back up to $1 billion in shares.

The company’s board has declared a dividend of 14 cents for the quarter and reiterated Newmont’s promise to raise the dividend 79 percent to 25 cents per share per quarter beginning in April for a dividend of $1 per year.

Companywide, Newmont reported gold production of 1.83 million ounces in the fourth quarter, up 27 percent, and all-in sustaining costs of $946 per ounce, up 12 percent over the 2018 quarter.

Both Newmont and Barrick sold their 50 percent shares of Kalgoorlie Consolidated Gold Mines in Australia in recent months, with Newmont’s portion closing in January. Newmont also sold the Red Lake Mine in Canada and its investment holdings in Continental Gold.

Newmont is working on an expansion at the Tanami Mine in Australia that will improve gold production by an average 150,000 to 200,000 gold ounces a year, and Chief Operating Officer Rob Atkinson said in the teleconference “Tanami is a terrific asset.”

Musselwhite in Canada poured its first gold since a conveyor fire last year. Normal production levels will be reached in early October. The company is constructing an underground shaft at Musselwhite, as well, to hoist ore from the underground crushers to reduce haulage costs and ventilation costs.

At Boddington in Australia, Newmont is planning an autonomous haulage system that should be fully operational in 2021, becoming the first open pit mine worldwide with an autonomous truck fleet. The new fleet of Caterpillar trucks is expected to save money and extend the mine life.

Palmer said in the teleconference that such a fleet may be used later at other Newmont operations but is only cost-effective with mines that have a long life ahead of them.

Penasquito Mine in Mexico, which had a rough 2019 with blockades over water issues, “delivered a strong finish to the year,” said Atkinson.

The company also announced that gold reserves were at a high of 100 million ounces, and that Newmont produced 6.29 million ounces of gold in 2019, up 23 percent over 2018, with the outlook to be 6.4 million ounces this year.

Coeur Mining

Chicago-based Coeur Mining Inc. reported a net loss of $270.9 million, or $1.13 per share, that included $277.7 million in write downs, in the fourth quarter of 2019, and an adjusted net loss of $3.3 million, or 1 cent per share, while revenue rose.

Much of the loss was due to the temporary suspension of mining and processing facilities at the Silvertip Mine in British Columbia driven by further deterioration in the zinc and lead market conditions, as well as processing facility-related challenges, according to Coeur.

The adjusted fourth-quarter loss compared with earnings of $16.1 million in the 2018 quarter. The net loss of $270.9 million compared with $400,000 in net income in the fourth quarter of 2018.

Revenue was up 14 percent at $195 million, and the company attributed much of that to higher precious metal prices and strong performance at its primary gold operations. The average realized gold price in the quarter was $1,407 per ounce, compared with $1,214 in 2018, and the average realized silver price was $16.99 per ounce, up from $14.59 the prior year.

The company’s president and chief executive officer, Mitchell Krebs, said in the earnings announcement that Coeur’s Rochester Mine in Nevada’s Pershing County has the most potential for the future.

“Despite a weaker than anticipated fourth quarter due to lower crushing rates, our Rochester open-pit, silver-gold mine in Nevada remains our top growth opportunity. We began processing ore through a new crushing circuit during the second half of the year utilizing HPGR (high pressure grinding roll) technology. Early indications suggest HPGR is having its intended impact by increasing and accelerating silver recovery rates,” he said.

A larger expansion is planned at Rochester during the next two years and that “is expected to position Rochester as a long-life, strong cash flow generator for the company,” Krebs said.

Coeur said the company expects a record of decision from the U.S. Bureau of Land Management on the expansion plans for Rochester that include a new leach pad and upgraded crushing circuit. Meanwhile, Coeur is completing engineering, procurement and construction planning and expects to seek board approval for the project in mid-2020.

Rochester produced 10,634 ounces of gold and 848,000 ounces of silver in the fourth quarter, compared with 15,926 gold ounces and 1.47 million ounces of silver in the 2018 quarter, because of lower than anticipated rates from the new secondary crusher, which reduced metal inventory on the stages III and IV leach pads, Coeur stated.

Costs applicable to sales at the Coeur Rochester Mine for gold and silver on a co-product basis averaged $13.25 per ounce for silver and $1,142 per gold ounce in the fourth quarter.

Coeur also reported that exploration continued at Rochester, including four holes in the center of the Rochester pit, and drilling at Lincoln Hill four miles west of Rochester was completed in the fourth quarter. Coeur acquired Lincoln Hill from Alio Gold Inc. in October 2018 for $19 million.

Companywide, Coeur produced 94,716 gold ounces and 3.1 million silver ounces in the fourth quarter ending Dec. 31, compared with 92,546 ounces of gold and 3.5 million ounces of silver in the 2018 quarter.

Palmarejo Mine in Mexico produced 27,952 ounces of gold and 1.98 million ounces of silver in the fourth quarter, compared with 31,239 ounces of gold and 1.89 million silver ounces in the 2018 fourth quarter, according to Coeur.

The Kensington Mine in Alaska produced 29,736 ounces of gold in the quarter, up from 28,421 gold ounces in the 2018 quarter, and Wharf in South Dakota produced 25,644 ounces of gold in the 2019 fourth quarter and 20,000 ounces of silver, compared with 16,960 gold ounces and 13,000 silver ounces in the 2018 quarter.

Coeur’s 2019 mineral reserves totaled 2.6 million ounces of gold, 182.9 million ounces of silver, 295.4 million pounds of zinc and 196.5 million pounds of lead. Rochester’s reserves rose for the year, silver by 11 percent and gold by 8 percent, according to the company’s reserve report.

Kinross Gold

Kinross Gold Corp. reported net earnings in the 2019 fourth quarter of $521.5 million, or 41 cents per share, and adjusted net earnings of $156 million, or 13 cents per share, and J. Paul Rollinson, president and chief executive officer, was optimistic for this year.

“In 2020, we expect to continue our strong performance, producing approximately 2.4 million gold equivalent ounces, with all-sustaining costs and capital expenditures guidance lower than last year,” he stated in the Toronto-based company’s earnings report.

Rollinson also said that in 2019 Kinross “made excellent progress at our U.S. projects, commencing production at our Round Mountain Phase W and Bald Mountain Vantage Complex projects in Nevada and advancing Fort Knox Gilmore in Alaska.”

The company also started an expansion project at Tasiast in West Africa and acquired the Chulbatkan project in Russia, along with beginning the restart-up project at the La Coipa Mine in Chile.

The net earnings for the quarter ending Dec. 31, 2019, compared with a $27.7 million loss in the 2018 quarter, and the adjusted net earnings were much higher than the $13.5 million, or 1 cent per share, in the fourth quarter of 2018.

Kinross produced 650,242 gold equivalent ounces in the 2019 quarter, up from 615,279 ounces in the 2018 quarter, and the company reported the increase was mainly due to higher production at Round Mountain and Bald Mountain and record production at Tasiast in West Africa.

Round Mountain in Nye County produced 203,501 gold ounces in the fourth quarter, up from 96,715 ounces in the 2018 quarter, and Bald Mountain Mine in White Pine County produced 66,147 ounces in the fourth quarter of 2019, compared with 47,211 ounces in the 2018 quarter.

For all of 2019, Kinross produced a little more than 2.5 million ounces, compared with 2.45 million ounces in 2018.

Production cost of sales was $744 per ounce in the fourth quarter and $706 per ounce for the year. The all-in sustaining cost for the quarter was $1,050 per ounce, up from $961 in the 2018 quarter.

The company reported the average realized gold price was up 21 percent to $1,485 per ounce from $1,226 per ounce in the fourth quarter of 2018.

Kinross reported gold reserves of 24.3 million ounces for 2019, down from 25.5 million in 2018.

The company’s outlook for 2020 is to produce 2.4 million ounces of gold, and Round Mountain is expected to have higher production in the second half of the year as benefits from the Phase W expansion continue to be realized.

Hecla Mining

Hecla Mining Co. reported a fourth-quarter 2019 net loss of $8. 1 million, or 2 cents per share, compared with $23.8 million, or 5 cents per share, in the prior year, and President and Chief Executive Officer Phillips S. Baker Jr. was optimistic about 2020.

He said that “2019 was a tale of two halves where the second half had higher production, higher prices, better earnings and more cash flow.”

In the earnings teleconference Baker said that the key to turning around the company’s finances was “to quickly recognize the plan that we had for Nevada was not working, and the best action was to stop that plan, take the time to re-evaluate and then restart.”

Baker said regarding Nevada that Hecla is “in the early stages of the re-evaluation, but our belief was that these mines and exploration targets that we bought when the gold price was $1,200 an ounce will have great value in the future, and that view has not diminished.”

Idaho-based Hecla acquired the Fire Creek, Hollister and Midas mines in Nevada in July 2018 and has since halted production at Hollister, while exploring on the surface, and stopped mining at Midas. Both Midas and Hollister are in Elko County. Fire Creek in Lander County is still producing, but the company plans to pause production in mid-year for studies.

The Lucky Friday Mine in Idaho is returning to full production after a strike and should be completed by the end of this year, which will be a boost this year.

“In 2020, at current prices, we expect continued strong cash flow generation with the ongoing solid performance at Greens Creek, the ramp-up of Lucky Friday, expected improvements at Casa Berardi and the potential mine life extension at San Sebastian from the Hugh Zone,” Baker said in the earnings report.

The average realized silver prices in the fourth quarter was $17.47 per ounce, up from $14.58 in the 2018 quarter, and the average realized gold price for the quarter was $1,488 per ounce, up 20 percent from the 2018 quarter, according to the report.

Companywide, silver production in the fourth quarter totaled a little more than 3.41 million ounces, compared with a little less than 2.72 million ounces in the 2018 quarter. Gold production was 74,733 ounces, up from 70,987 ounces in the prior year’s quarter. Lead production totaled 6,804 tons, up from 4,704 tons in the 2018 quarter, and zinc production was 16,185 tons, up from 13,711 tons.

Looking at Nevada operations, fourth-quarter 2019 production was 20,727 ounces of gold and 21,476 ounces of silver. That compared with 88,156 ounces of silver and 19,099 ounces of gold in the 2018 quarter.

At Fire Creek, Hecla’s study includes mining methods, processing of refractory ore, including by a third party, and hydrology, according to Hecla’s earnings report.

Companywide, Hecla produced 12.6 million ounces of silver in 2019, up 22 percent, and posted record gold production of 272,873 ounces, up 4 percent over 2018. Proven and probable reserves also rose 11 percent to 212 million ounces of silver, while the 2.71 million ounces of gold reserves was down 5 percent.

SSR Mining

SSR Mining Inc. posted net income attributable to shareholders of $19.5 million in the fourth quarter, or 16 cents per share, up from a loss of $3.5 million, or 3 cents per share, in the 2018 quarter, and the company credited the gain to more gold production and a higher gold price.

The average realized gold price was $1,478 per ounce in the fourth quarter at the Marigold Mine in Nevada and $1,391 for 2019, compared with $1,261 per ounce in 2018, according to the earnings report.

“SSR Mining had another successful year in 2019 as we continued our track record of achieving production and cost guidance for the eighth consecutive year. We delivered reserve growth at Marigold and resource growth at Seabee, which continue to support mine life extensions at both assets,” said Paul Benson, president and chief executive officer.

Adjusted net income was nearly $36.6 million in the fourth quarter, or 30 cents per share, compared with a little less than $4.4 million, or 4 cents per share, in the 2018 quarter. The Associated Press reported three analysts surveyed by Zacks Investment Research expected earnings of 31 cents per share.

Gold reserves grew at Marigold after successful exploration work to 3.9 million ounces, SSR reported. At the Seabee Gold Operation in Saskatchewan, Canada, the measured and indicated gold resources rose to 1.1 million ounces, according to the earnings report.

Total companywide gold reserves for 2019 are 4.4 million ounces. Silver reserves totaled 49.7 million ounces.

The Vancouver-based company produced 421,828 ounces of gold in 2019, compared with more than 345,000 ounces in 2018.

For the fourth quarter, Marigold produced 59,186 ounces of gold and total 2019 production was 220,227 ounces, a record for the mine located just off Interstate 80 at Valmy in Humboldt County, compared with 205,161 ounces in 2018.

Exploration continued at Marigold in the fourth quarter in the Red Dot area and at Trenton Canyon, SSR Mining reported. Drilling this year will be at the Trenton Canyon, Valmy, East Basalt and Mackay targets, along with two recently acquired small land parcels that were internal to the company’s claim package.

SSR Mining acquired a large land package in 2019 contiguous to Marigold, including the Trenton Canyon and Buffalo Valley properties, from Newmont Corp. and Fairmile Gold Mining Inc. for $22 million and a 0.5 percent net smelter returns royalty.

“Looking ahead, 2020 consolidated production is forecast to grow to approximately 425,000 gold equivalent ounces. With our over $500 million of cash and an outlook of increasing production and higher margins at today’s precious metal prices, we are well positioned to continue our track record of creating value for our shareholders,” Benson said.

The company reported it expects production at Marigold to increase this year to between 225,000 and 240,000 ounces as the mine benefits from an additional hydraulic loading unit purchased in 2019 which is expected to be commissioned in the current quarter.

SSR Mining also reported a successful ramp-up at its Puna operations in Argentina. Puna produced 7.7 million ounces of silver in 2019 at a cash cost of $10.38 per ounce, compared with approximately 3.75 million ounces in 2018, and for the fourth quarter produced 2.1 million silver ounces at a cash cost of $8.90 per ounce.

Puna also produced 24 million pounds of lead and 8.4 million pounds of zinc in 2019.

The company consolidated ownership of Puna in 2019, completing the purchase of the remaining 25 percent interest from Golden Arrow Resources Corp. for an aggregate cost of $32.4 million.

The Seabee underground mine produced 22,069 ounces of gold in the fourth quarter and 112,137 ounces for all of 2019, up from 95,602 ounces in 2018, at a cash cost of $505 per ounce and an all-in sustainable cost of $751 per ounce. SSR expects production to increase this year, mainly in the first of the year with higher grades mined.

While the mineral reserves were down 18 percent due to mining depletion, the resources rose, and SSR stated that Gap HW is a significant discovery, remaining open on strike and at depth.

Fiore Gold

Vancouver-based Fiore Gold Ltd.’s gold production from the company’s Pan Mine in Nevada’s White Pine County totaled 8,750 ounces in the quarter ending Dec. 31, and Fiore reported Pan was ramping up to higher production levels with the installation of a primary crusher.

The ore had been placed run of mine on the leach pad before the crusher.

“While the changeover at the Pan Mine from ROM to crushing took longer than anticipated, our experienced operating and technical teams have addressed and corrected the key issues we encountered. As a result, gold production has increased steadily over the quarter, reaching almost 4,000 ounces in December,” Chief Executive Officer Tim Warman said in a Feb. 3 news release.

He said that although total ounces recovered was lower than expected in the first two months of the quarter, “management believes these ounces are simply delayed and will likely be recovered over the coming months.”

Warman said the company’s guidance for the 2020 fiscal year shows a significant increase in gold production over the prior fiscal year “as the benefits of the crushing circuit are fully felt.” Fiore’s fiscal year ends Sept.30.

The forecast is for 45,000 to 48,000 ounces of gold production in the fiscal year, and total cash costs are expected to be in the range of $975 to $1,025 per ounce.

Fiore’s report released Jan. 24 for the fiscal year ending Sept. 30 showed full-year production of 41,491 ounces, 21 percent higher than the prior year. Annual revenues totaled $53.74 million, with mine operating income of $11.97 million.

Net income for the fiscal year was $2.42 million, compared with $1.18 million in the 2018 fiscal year, and adjusted net earnings totaled nearly $3.36 million, down from $3.6 million the prior year.

The average realized price for gold in the fiscal year was $1,392 per ounce, compared with $1,208 in 2018.

The company also reported it completed a detailed development plan for the Gold Rock project adjacent to the Pan Mine, as well as continuing exploration drilling in support of a preliminary economic assessment. Fiore hopes to have a construction decision by mid-2021.

Fiore stated that exploration also continues at Pan.

Royal Gold

Royal Gold Inc. posted net income of $41.3 million, or 63 cents per share, in the quarter ending Dec. 30, 2019, and revenue of $123.6 million from the company’s royalty and streaming holdings that include royalties on gold production in Nevada.

“Royal Gold delivered another solid operating quarter. Continuing our disciplined approach to capital allocation, we strengthened the balance sheet further by paying down our credit facility, and we remain well positioned with approximately $1 billion of liquidity available for new business opportunities,” Royal Gold President and Chief Executive Officer Bill Heissenbuttel said.

He took over as president and CEO in the new year when Tony Jensen officially retired. Heissenbuttel had been chief financial officer and vice president of strategy for the Denver-based company.

The company stated that the average price of gold in the quarter was $1,481 per ounce, up 20.8 percent from the 2018 quarter. Royal Gold credited higher gold and silver prices for the higher revenue, compared with $97.6 million in the same quarter of 2018.

The net income was up from $23.59 million, or 36 cents per share, in the 2018 quarter. Dividends were up 6.1 percent, according to the earnings report. Royal Gold operates on a fiscal year calendar, so the Dec. 30 results are for the company’s second quarter.

The company reported $3.29 million in royalties on 28,000 ounces of gold from the Cortez Mine operated by Nevada Gold Mines during the quarter. That was up from $2.34 million on 19,900 ounces of gold in the 2018 quarter.

Royal Gold included Cortez in the list of principal streaming and royalty interests for the quarter, but the company also has smaller interests in other Nevada operations, including Goldstrike, Leeville and Twin Creeks operated by Nevada Gold Mines, Bald Mountain and Gold Hill operated by Kinross Gold, Marigold Mine operated by SSR Mining Inc. and the Robinson Mine owned by KGHM Corp.

One of the newer projects is Khoemacau in Botswanna, which is under construction and was 26 percent complete at the end of the quarter. Royal Gold has a silver stream on the project.

Royal Gold also has a major interest in Teck Resources Ltd.’s Andacollo Mine in Chili and reported a collective agreement had been reached with the union there following a strike, which impacted revenue.

A protest at the Penasquito Mine in Mexico also affected royalty payments. The mine operated by Newmont Mining returned to full operation in October, and Newmont and the local community reached an agreement in December over water concerns.

As of the end of 2019, Royal Gold has interest in 187 projects on five continents, including on 43 producing mines and 15 development stage projects.


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