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Research Alert: CFRA Maintains Buy Opinion On Shares Of Royal Gold Inc.

· 02/05/2021 08:04

01:00 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $6 to $156, or 43.6x our FY21 (June) EPS estimate, in line with RGLD's three-year average forward P/E multiple. We reiterate our EPS estimates: $3.58 in FY21 and $3.86 in FY22. RGLD posts Dec-Q adjusted EPS of $0.92 vs. $0.63, $0.06 above consensus, driven by a top-line beat of 3.6%. Dec-Q revenue increased Y/Y by 28%, driven by higher prices, as gold was 27% higher, silver 41% higher, and copper 22% higher. RGLD has fully funded its commitment to the Khoemacau project (required to earn the 80% base silver stream) and construction has reached 85% completion as of Dec. 31 '20, with an expected commissioning late in calendar Q2. Barrick Gold also announced continued progress at Pueblo Viejo to expand the mining facilities that could significantly increase throughput and maintain the average annual gold production after calendar '22. RGLD ended the Dec-Q with $200 million in debt, a net cash position of $182 million, and around $1.2 billion in total available liquidity.