Royal Gold stock (RGLD) is a precious metal royalty and streaming company that has been around since 1983. It has operations in 13 countries, including Canada and the United States. The company has seen its stock price drop 2.2% since its last earnings report was released on February 15, 2023. Investors are wondering if RGLD can rebound and make a comeback. In this article, we will look at the factors that may be causing the stock to drop and how the company can turn things around.
Company Overview
Royal Gold (RGLD) is a precious metals streaming and royalty company. It is headquartered in Denver, Colorado, and was founded in 1983. The company has operations in 13 countries, including Canada and the United States. It is a publicly traded company listed on the NASDAQ with a market capitalization of around $7.9 billion.
RGLD focuses on gold, silver, copper, zinc, and other metals. It has multiple streaming and royalty agreements with large mining companies, such as Barrick Gold and Newmont Mining. The company also has interests in a number of development-stage deposits. RGLD is well-positioned to benefit from an increase in the price of gold and other metals.
Recent Earnings Report
RGLD reported its fourth-quarter earnings on February 15th. The company reported Q4 adjusted EPS of 91c versus the consensus estimate of 81c. RevenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... came in at $163 million versus two estimates for $140.82M.
“Our solid fourth quarter results capped off another very successful year for Royal Gold,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “We manage our business adhering to a long term strategy that considers adding growth by acquiring high quality assets, funding that growth with limited equity dilution, maintaining a strong balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. and liquidity, and increasing our capital return to shareholders. Our activities in 2022 were consistent with that strategy, with several notable achievements:
- We added high-quality and long life assets to the portfolio with the acquisition of additional royalty interests at the Cortez Complex and a royalty on the Great Bear project.
- We grew our exposure to the Khoemacau project by increasing our silver stream from 90% to 100% of payable silver.
- We funded our acquisitions and investments using cash on hand and our revolving credit facility and did not dilute shareholders by issuing equity.
- We ended the year with total liquidity of approximately $550 million.
- We raised our dividend for the 22nd consecutive year and were added to the S&P High Yield Dividend Aristocrats Index.
Royal Gold Dividend
Royal Gold pays a dividend of 1.2% (annual yield).
Royal Gold Stock Chart
Can RGLD Rebound?
Yes, RGLD can rebound. The company has a number of factors in its favor that could help it make a comeback.
First, the company has a strong track record of growth. Over the past five years, its revenue and net income have increased significantly.
Second, the company has a strong balance sheet. It has no long-term debt and has a healthy cash balance.
Third, the company has a solid portfolio of streaming and royalty agreements. These agreements provide the company with steady cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... and gives it exposure to a variety of metal prices.
Finally, the company has a well-diversified portfolio of operations. This gives it flexibility to make changes when necessary and to take advantage of opportunities when they arise.
The Dividend Growth Stock You Never Heard of: Royal Gold $RGLD
Conclusion
Royal Gold (RGLD) has seen its stock price drop 2.2% since its last earnings report was released. There are a variety of factors that could be causing the stock to drop, including the volatile market, the company’s financial results, and investors’ concerns about the company’s outlook. However, the company has a number of factors in its favor that could help it make a comeback. Its strong financial performance, strong balance sheet, and well-diversified portfolio of operations all give it the potential to rebound.
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Do any famous investors hold gold?
Ray Dalio – Founder of Bridgewater Associates, one of the largest hedge funds in the world, has been a long-time advocate of holding gold as a hedge against inflation and economic uncertainty.
Paul Tudor Jones – Founder of Tudor Investment Corporation, is another investor who believes in holding gold as a hedge against inflation and geopolitical risks.
John Paulson – Founder of Paulson & Co., made billions of dollars by betting against the subprime mortgage market in 2008, is a well-known gold bull and has invested heavily in gold mining companies.
Warren Buffett – While not a fan of gold as an investment, Warren Buffett did invest in gold mining companies in the past. However, he has since divested from those positions.
David Einhorn – Founder of Greenlight Capital, is another investor who has advocated for holding gold as a hedge against economic uncertainty.
These investors have all recognized the value of gold as a safe-haven asset and an effective way to diversify their investment portfolios.
