In a report released today, Lucas Pipes from B.Riley FBR assigned a Hold rating to Royal Gold (NASDAQ: RGLD), with a price target of $86. The company’s shares opened today at $90.95.
Pipes wrote:
“Gold (RGLD) provided a 4Q18 update on its most recent quarter. Results came in stronger than we anticipated, which led us to adjust our 4Q18 EBITDA estimate from $78.2M to $84.7M. The company stated that it produced about 64.0k gold equivalent ounces, which was above our estimate of 59.7k oz. The company also reported 4Q pricing, with a realized gold price of $1,314/oz, silver at $16.55/oz, and copper at $3.11/lb. Cost of sales came in at ~ $349/oz for the quarter. RGLD reminded investors that if approvals related to the water supply at Mount Milligan are not received in a timely manner, throughput levels at the facility could be reduced in the calendar year 4Q18. In the quarter, RGLD repaid the remaining $75M outstanding under its revolver, leaving $1B in availability.”
According to TipRanks.com, Pipes is a 4-star analyst with an average return of 6.8% and a 60.4% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Novagold Resources Inc New.
Royal Gold has an analyst consensus of Moderate Buy, with a price target consensus of $93.33.
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Based on Royal Gold’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $154 million. In comparison, last year the company had a net profit of $20.02 million.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock.
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Royal Gold, Inc. engages in the acquisition and management of metal streams, royalties, and similar interests. It operates through Acquisition and Management of Stream Interests and Acquisition and Management of Royalty Interests segments.
