Royal Gold Posts Net Loss Due To U.S. Tax Law, 'Currency Election'
Royal Gold, Inc. (Nasdaq: RGLD)reports a net loss of $15 million, or 23 cents per share, despite increasedrevenue of $114 million in its fiscal second quarter that ended Dec. 31.“Second-quarter reported earnings reflected the impact of recently enacted U.S.tax legislation and a non-cash functional currency election,” the company says.Excluding these impacts, adjusted net income was $28 million, or 41 cents pershare, up 16% from the prior-year quarter. An expense of $26.4 million, or 40cents per share, related to U.S. tax legislation was recorded during thequarter. “As a United States-domiciled company, we expect that the U.S. taxlegislation will have a positive long-term impact on Royal Gold’s futurefinancial results through the reduction in the U.S. corporate tax rate from 35%to 21% and by allowing us to efficiently repatriate future foreign earnings,”Royal Gold says. The company also recorded an expense of $15.9 million, relatedto a “non-cash functional currency election to file certain Canadian income taxreturns in U.S. dollars,” intended to reduce the volatility of Royal Gold’seffective tax rate due to quarterly mark-to-market adjustments. The companyreports quarterly production of 89,700 gold-equivalent ounces, up 2%year-on-year. The average realized gold price of $1,275 was up 4%.
By Allen Sykoraof Kitco News; asykora@kitco.com
Red Eagle ExpectsSanta Rosa First Commercial Gold Pour This Month
Thursday February 08, 2018 09:04
Red Eagle MiningCorp. (TSX, BVL: R; OTCQX: RDEMF) saysthe first commercial gold pour for its Santa Rosa project in Colombia isexpected around the end of February. The mill started up on Jan. 2 and has beenoperating continuously, ramping up to 750 tonnes per day, the company says. Atest gold pour was completed at the end of January. The company estimates that1,500 to 2,000 ounces of gold will be poured in February during ramp-up, with2018 production estimated to be 45,000 to 50,000 ounces of gold.
By Allen SykoraFor Kitco News
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