Royal Gold announces record fiscal 2007 financial results

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Revenue and free cash flow increase 70% and 85%, respectively, year-over-year; earnings per share up 58% year-over-year; fiscal 2007 free cash flow totaled 78% of revenue; production commences at the Taparko mine; significant reserve expansion at the Penasquito property.

Royal Gold, Inc., the leading publicly-traded precious metals royalty company, today announced record revenues of $48.4 million for fiscal 2007 (ended June 30), a 70% increase over revenues of $28.4 million in fiscal 2006. The Company reported net income of $19.7 million, or $0.79 per basic share, for fiscal 2007 compared to net income of $11.4 million, or $0.50 per basic share, for fiscal 2006.

Free cash flow for fiscal 2007 was approximately $37.9 million, or 78% of revenues, compared to $20.5 million or 72% of revenues, in fiscal 2006. For the fourth quarter ended June 30, 2007, royalty revenue reached a record high of $14.4 million, or a 76% increase over royalty revenue of $8.2 million for the same period in fiscal 2006. The Company reported fourth quarter 2007 net income of $5.7 million, or $0.20 per basic share, as compared to net income of $3.6 million, or $0.15 per basic share for the fourth quarter of fiscal 2006.

Free cash flow for the fourth quarter was approximately $11.3 million, or 78% of revenue compared with free cash flow of $6.5 million, or 79% of revenues, for the same period ended June 30, 2006. As of June 30, 2007, the Company had working capital of $91.0 million. Current assets were $95.7 million, compared to current liabilities of $4.7 million, yielding a current ratio of 20 to 1. Tony Jensen, President and CEO, commented, "The record-setting results we achieved in fiscal 2007 reflect the execution of our growth and diversification plan over the past eighteen months, supported by continued strength in commodity prices."

Jensen continued, "During the year we completed the largest royalty acquisition in the history of the Company, the Penasquito project, along with several other important royalty transactions. Our portfolio now includes nine producing royalty properties and a strong pipeline of development stage projects scheduled to commence production within the next year. We also announced substantial growth in reserves subject to our royalty properties and the beginning of revenue flow from the Taparko project. The events over the past twelve months position us well for future financial growth." (media.prnewswire.com)

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