Royal Gold Inc (NASDAQ:RGLD)
Q2 2021 Earnings Call
Feb 4, 2021, 12:00 p.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Good day, and welcome to the Royal Gold, Fiscal 2021 Second Quarter Conference Call. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions].
I would now like to turn the conference over to Alistair Baker. Please go ahead.
Alistair Baker — Vice President Investor Relations and Business Development
Thank you, Operator. Good morning and welcome to our discussion of Royal Gold’s Second Quarter 2021 Results. This event is being webcast live and you will be able to access a replay of this call on our website. Participating on the call today are, Bill Heissenbuttel, President and CEO; Paul Libner, CFO and Treasurer; and Mark Isto, Executive Vice President and COO of Royal Gold Corporation. Dan Breeze, Vice President, Corporate Development of RG AG; and Randy Shefman, General Counsel are also available for questions.
During today’s call, we will make forward-looking statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday’s press release and our filings with the SEC.
We will also refer to certain non-GAAP financial measures including adjusted net income, adjusted net income per share, net debt and net cash. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are available in yesterday’s press release, which can be found on our website.
Bill will give you an overview of the quarter followed by Mark with an operating update. Paul will then provide a financial update and Bill will wrap up the call with some closing comments. We’ll then open the lines for a Q&A session.
Now, I will turn the call over to Bill.
William H. Heissenbuttel — President and Chief Executive Officer
Good morning and thank you for joining the call. Before beginning, I would like to remind you that, Royal Gold continues to operate remotely, and we’ll do our best to offer a coordinated response to any questions. Also, please bear in mind that this reporting period is quarterly for us, but annual for most of our operators. We may not be in a position to offer in-depth answers to questions on our operating assets to the extent the information for the December quarter has not yet been released.
I’ll begin on slide 4. We continued our strong start to fiscal 2021 with another quarter of record revenue. Total revenue of $158 million was driven by excellent operating results across the portfolio, particularly from our royalty segment. Relative to the prior year quarter, our Cortez revenue and our Australian royalty portfolio revenue were both up over 100%, while our Penasquito and Marigold revenue increased over 50%. We had a couple of new contributions this quarter from royalties that while small, demonstrate the optionality embedded in our portfolio.
Commercial production was declared at Relief Canyon in January and we received our first revenue from the 2% NSR during the quarter. We also received the first payment from our 4% NPI royalty at Kurnalpi, which is part of Saracen South Laverton mine in Australia. We acquired both these royalties over a decade ago as part of multi-asset transactions.
Earnings for the quarter were $60 million or $0.91 per share and operating cash flow came in slightly below $100 million. Adjusted earnings were $0.92 per share after adjusting for a minor mark-to-market change in the fair value of our equity securities. We raised our dividend in November for 20th consecutive year to $1.20 per share per year which represented a 7% increase over the prior year payout. This record of increasing annual dividends is unmatched in the precious metals space.
We paid down a further $75 million on our revolving credit facility during the quarter, leaving us with a net cash position of $182 million and over $1.2 billion of liquidity at the end of the quarter. We made a further reduction in the balance outstanding on the revolving credit shortly…