Royal Gold Q3 Stream Sales Buoy Optimism, Analyst Highlights Exposure To Resource Growth As Key Catalyst

BMO Capital Markets analyst Jackie Przybylowski reiterated the Market Perform rating on Royal Gold, Inc RGLD, raising the price target to $139 from $137.

The company recently provided an update on its Q3 2023 Stream Segment Sales. 

Streaming sales for Q3/23 beat the analyst's estimates in terms of gold, copper, and overall gold equivalent stream ounces sold.

Royal Gold reported Q3 stream sales of 37.5koz gold (better than the analyst's estimate of 34.8koz and in line with Visible Alpha consensus of 38.0koz) and 3.3Mlb copper (better than the analyst's and consensus estimates of 2.6Mlb and 2.5Mlb, respectively).

The analyst thinks that recent successes and other near-term catalysts are primarily reflected in the current share price.

As of September 30, Royal Gold had 269.6koz of silver inventory (down from 331.3koz on June 30 and 512.3koz on March 31), notes the analyst. 

Gold inventory ended slightly higher on September 30 at ~18.6koz gold (versus ~17.1koz on June 30), with no copper inventory disclosed (versus 400t on June 30), the analyst adds.

The analyst views ongoing debt repayment and exposure to resource growth as key catalysts for the company.

Przybylowski also cites production ramp-up and metal price optionality, including from Pueblo Viejo, Khoemacau, Mount Milligan, and Wassa as additional royalty/stream opportunities. 

Price Action: RGLD shares are trading higher by 0.93% to $107.00 on the last check Wednesday.