ROYAL GOLD INC, 10-K filed on 8/7/2014
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Jun. 30, 2014
Jul. 28, 2014
Dec. 31, 2013
Document and Entity Information
 
 
 
Entity Registrant Name
ROYAL GOLD INC 
 
 
Entity Central Index Key
0000085535 
 
 
Document Type
10-K 
 
 
Document Period End Date
Jun. 30, 2014 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--06-30 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 2,891,571,031 
Entity Shares Outstanding
 
64,754,869 
 
Entity Exchangeable, Shares Outstanding
 
380,482 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Jun. 30, 2013
ASSETS
 
 
Cash and equivalents
$ 659,536 
$ 664,035 
Royalty receivables
46,654 
50,385 
Income tax receivable
21,947 
15,158 
Prepaid expenses and other
7,840 
14,919 
Total current assets
735,977 
744,497 
Royalty and stream interests, net (Note 4)
2,109,067 
2,120,268 
Available-for-sale securities (Note 5)
9,608 
9,695 
Other assets
36,892 
30,881 
Total assets
2,891,544 
2,905,341 
LIABILITIES
 
 
Accounts payable
3,897 
2,838 
Dividends payable
13,678 
13,009 
Foreign withholding taxes payable
2,199 
15,518 
Other current liabilities
2,730 
3,720 
Total current liabilities
22,504 
35,085 
Debt (Note 6)
311,860 
302,263 
Deferred tax liabilities
169,865 
174,267 
Uncertain tax positions (Note 12)
13,725 
21,166 
Other long-term liabilities
1,033 
1,924 
Total liabilities
518,987 
534,705 
Commitments and contingencies (Note 16)
   
   
EQUITY
 
 
Preferred stock, $.01 par value, authorized 10,000,000 shares authorized; and 0 shares issued
   
   
Common stock, $.01 par value, 100,000,000 shares authorized; and 64,578,401 and 64,184,036 shares outstanding, respectively
646 
642 
Exchangeable shares, no par value, 1,806,649 shares issued, less 1,426,792 and 1,139,420 redeemed shares, respectively
16,718 
29,365 
Additional paid-in capital
2,147,650 
2,142,173 
Accumulated other comprehensive loss
(160)
(4,572)
Accumulated earnings
189,871 
181,279 
Total Royal Gold stockholders' equity
2,354,725 
2,348,887 
Non-controlling interests
17,832 
21,749 
Total equity
2,372,557 
2,370,636 
Total liabilities and equity
$ 2,891,544 
$ 2,905,341 
Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2014
Jun. 30, 2013
Consolidated Balance Sheets
 
 
Preferred stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares outstanding
64,578,401 
64,184,036 
Exchangeable shares, no par value (in dollars per share)
   
   
Exchangeable shares, shares issued
1,806,649 
1,806,649 
Exchangeable shares, shares redeemed
1,426,792 
1,139,420 
Consolidated Statements of Operations and Comprehensive Income (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Consolidated Statements of Operations and Comprehensive Income
 
 
 
Revenue
$ 237,162 
$ 289,224 
$ 263,054 
Costs and expenses
 
 
 
Cost of sales
9,158 
 
 
General and administrative
21,186 
24,027 
20,647 
Production taxes
6,756 
9,010 
9,444 
Depreciation, depletion and amortization
91,342 
85,020 
75,001 
Restructuring on royalty interests
 
 
1,328 
Total costs and expenses
128,442 
118,057 
106,420 
Operating income
108,720 
171,167 
156,634 
Loss on available-for-sale securities
(4,499)
(12,121)
 
Interest and other income
2,132 
2,902 
3,836 
Interest and other expense
(23,426)
(24,780)
(7,451)
Income before income taxes
82,927 
137,168 
153,019 
Income tax expense
(19,455)
(63,759)
(54,710)
Net income
63,472 
73,409 
98,309 
Net income attributable to non-controlling interests
(831)
(4,256)
(5,833)
Net income attributable to Royal Gold common stockholders
62,641 
69,153 
92,476 
Net income
63,472 
73,409 
98,309 
Adjustments to comprehensive income, net of tax
 
 
 
Unrealized change in market value of available-for-sale securities
(98)
(4,526)
(13,817)
Recognized loss on available-for-sale securities
4,510 
13,716 
 
Comprehensive income
67,884 
82,599 
84,492 
Comprehensive income attributable to non-controlling interests
(831)
(4,256)
(5,833)
Comprehensive income attributable to Royal Gold stockholders
$ 67,053 
$ 78,343 
$ 78,659 
Net income per share available to Royal Gold common stockholders:
 
 
 
Basic earnings per share (in dollars per share)
$ 0.96 
$ 1.09 
$ 1.61 
Basic weighted average shares outstanding (in shares)
64,909,149 
63,250,247 
57,220,040 
Diluted earnings per share (in dollars per share)
$ 0.96 
$ 1.09 
$ 1.61 
Diluted weighted average shares outstanding (in shares)
65,026,256 
63,429,822 
57,463,850 
Cash dividends declared per common share (in dollars per share)
$ 0.83 
$ 0.75 
$ 0.56 
Consolidated Statements of Changes in Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Shares
Exchangeable Shares
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Earnings
Non-controlling interests
Balance at Jun. 30, 2011
$ 1,487,695 
$ 543 
$ 39,864 
$ 1,319,697 
$ 54 
$ 100,004 
$ 27,533 
Balance (in shares) at Jun. 30, 2011
 
54,231,787 
905,795 
 
 
 
 
Issuance of common stock for:
 
 
 
 
 
 
 
Equity offering
267,433 
40 
 
267,393 
 
 
 
Equity offering (in shares)
 
4,000,000 
 
 
 
 
 
Exchange of exchangeable shares
 
(4,708)
4,707 
 
 
 
Exchange of exchangeable shares (in shares)
 
106,969 
(106,969)
 
 
 
 
2019 convertible senior notes, net of tax
47,605 
 
 
47,605 
 
 
 
Stock-based compensation and related share issuances
16,957 
 
16,955 
 
 
 
Stock-based compensation and related share issuances (in shares)
 
275,465 
 
 
 
 
 
Net income
98,309 
 
 
 
 
92,476 
5,833 
Other comprehensive income (loss)
(13,817)
 
 
 
(13,817)
 
 
Distribution to non-controlling interests
(8,396)
 
 
 
 
 
(8,396)
Dividends declared
(32,357)
 
 
 
 
(32,357)
 
Balance at Jun. 30, 2012
1,863,429 
586 
35,156 
1,656,357 
(13,763)
160,123 
24,970 
Balance (in shares) at Jun. 30, 2012
 
58,614,221 
798,826 
 
 
 
 
Issuance of common stock for:
 
 
 
 
 
 
 
Equity offering
471,868 
53 
 
471,815 
 
 
 
Equity offering (in shares)
 
5,250,000 
 
 
 
 
 
Exchange of exchangeable shares
 
(5,791)
5,790 
 
 
 
Exchange of exchangeable shares (in shares)
 
131,597 
(131,597)
 
 
 
 
Other
765 
 
 
765 
 
 
 
Stock-based compensation and related share issuances
7,448 
 
7,446 
 
 
 
Stock-based compensation and related share issuances (in shares)
 
188,218 
 
 
 
 
 
Net income
73,409 
 
 
 
 
69,153 
4,256 
Other comprehensive income (loss)
9,191 
 
 
 
9,191 
 
 
Distribution to non-controlling interests
(7,477)
 
 
 
 
 
(7,477)
Dividends declared
(47,997)
 
 
 
 
(47,997)
 
Balance at Jun. 30, 2013
2,370,636 
642 
29,365 
2,142,173 
(4,572)
181,279 
21,749 
Balance (in shares) at Jun. 30, 2013
 
64,184,036 
667,229 
 
 
 
 
Issuance of common stock for:
 
 
 
 
 
 
 
Exchange of exchangeable shares
 
(12,647)
12,644 
 
 
 
Exchange of exchangeable shares (in shares)
 
287,372 
(287,372)
 
 
 
 
Non-controlling interest assignment
(13,713)
 
 
(11,463)
 
 
(2,250)
Stock-based compensation and related share issuances
4,297 
 
4,296 
 
 
 
Stock-based compensation and related share issuances (in shares)
 
106,993 
 
 
 
 
 
Net income
63,472 
 
 
 
 
62,641 
831 
Other comprehensive income (loss)
4,412 
 
 
 
4,412 
 
 
Distribution to non-controlling interests
(2,498)
 
 
 
 
 
(2,498)
Dividends declared
(54,049)
 
 
 
 
(54,049)
 
Balance at Jun. 30, 2014
$ 2,372,557 
$ 646 
$ 16,718 
$ 2,147,650 
$ (160)
$ 189,871 
$ 17,832 
Balance (in shares) at Jun. 30, 2014
 
64,578,401 
379,857 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:
 
 
 
Net income
$ 63,472 
$ 73,409 
$ 98,309 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation, depletion and amortization
91,342 
85,020 
75,001 
Recognized loss on available-for-sale securities
4,499 
12,121 
 
Non-cash employee stock compensation expense
2,580 
5,701 
6,507 
Gain on distribution to non-controlling interest
(259)
(2,837)
(3,725)
Amortization of debt discount
9,597 
9,015 
 
Restructuring on royalty interests
 
 
1,328 
Tax benefit of stock-based compensation exercises
(597)
(2,966)
(6,348)
Deferred tax (benefit) expense
(8,166)
(11,419)
1,571 
Other
 
100 
2,117 
Changes in assets and liabilities:
 
 
 
Royalty receivables
3,731 
3,562 
(5,118)
Prepaid expenses and other assets
9,756 
(12,300)
88 
Accounts payable
1,105 
113 
530 
Foreign withholding taxes payable
(13,319)
15,294 
19 
Income taxes receivable
(6,183)
(3,127)
(7,179)
Uncertain tax positions
(7,441)
1,697 
633 
Other liabilities
(2,915)
(753)
(1,569)
Net cash provided by operating activities
147,202 
172,630 
162,164 
Cash flows from investing activities:
 
 
 
Acquisition of royalty and stream interests
(80,019)
(314,262)
(276,683)
Other
(4,782)
4,820 
5,327 
Net cash used in investing activities
(84,801)
(309,442)
(271,356)
Cash flows from financing activities:
 
 
 
Net proceeds from issuance of common stock
1,120 
473,771 
271,536 
Net proceeds from debt
 
 
457,023 
Repayment of debt
 
 
(326,100)
Common stock dividends
(53,380)
(43,934)
(29,504)
Purchase of additional royalty interest from non-controlling interest
(11,522)
 
 
Debt issuance costs
(1,284)
 
 
Distribution to non-controlling interests
(2,431)
(7,412)
(8,810)
Tax expense of stock-based compensation exercises
597 
2,966 
6,348 
Net cash (used in) provided by financing activities
(66,900)
425,391 
370,493 
Net (decrease) increase in cash and equivalents
(4,499)
288,579 
261,301 
Cash and equivalents at beginning of period
664,035 
375,456 
114,155 
Cash and equivalents at end of period
$ 659,536 
$ 664,035 
$ 375,456 
THE COMPANY
THE COMPANY

1. THE COMPANY

        Royal Gold, Inc. ("Royal Gold", the "Company", "we", "us", or "our"), together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties, metal streams, and similar interests. Royalties are non-operating interests in mining projects that provide the right to revenue or metals produced from the project after deducting specified costs, if any. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. We may use the term "royalty interest" in these notes to the consolidated financial statements to refer to royalties, gold, silver or other metal stream interests, and other similar interests.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Summary of Significant Accounting Policies

Use of Estimates

        The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.

        Our most critical accounting estimates relate to our assumptions regarding future gold, silver, nickel, copper and other metal prices and the estimates of reserves, production and recoveries of third-party mine operators. We rely on reserve estimates reported by the operators on the properties in which we have royalty interests. These estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets. These estimates and assumptions also affect the rate at which we recognize revenue or charge depreciation, depletion and amortization to earnings. On an ongoing basis, management evaluates these estimates and assumptions; however, actual amounts could differ from these estimates and assumptions. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known.

Basis of Consolidation

        The consolidated financial statements include the accounts of Royal Gold, Inc. and its wholly-owned subsidiaries. All intercompany accounts, transactions, income and expenses, and profits or losses have been eliminated on consolidation.

Cash and Equivalents

        Cash and equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Cash and equivalents are primarily held in cash deposit accounts and United States treasury bills with maturities less than 90 days.

Royalty and Stream Interests

        Royalty and stream interests include acquired royalty and stream interests in production, development and exploration stage properties. The costs of acquired royalty and stream interests are capitalized as tangible assets as such interests do not meet the definition of a financial asset under Accounting Standards Codification ("ASC") guidance.

        Acquisition costs of production stage royalty and stream interests are depleted using the units of production method over the life of the mineral property (as royalty payments are recognized or sales occur under stream interests), which is estimated using proven and probable reserves as provided by the operator. Acquisition costs of royalty and stream interests on development stage mineral properties, which are not yet in production, are not amortized until the property begins production. Acquisition costs of royalty interests on exploration stage mineral properties, where there are no proven and probable reserves, are not amortized. At such time as the associated exploration stage mineral interests are converted to proven and probable reserves, the cost basis is amortized over the remaining life of the mineral property, using proven and probable reserves. The carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the costs may not be recoverable from future production. Exploration costs are charged to operations when incurred.

Available-for-Sale Securities

        Investments in securities that management does not have the intent to sell in the near term and that have readily determinable fair values are classified as available-for-sale securities. Unrealized gains and losses on these investments are recorded in accumulated other comprehensive income as a separate component of stockholders' equity, except that declines in market value judged to be other than temporary are recognized in determining net income. When investments are sold, the realized gains and losses on these investments, determined using the specific identification method, are included in determining net income.

        The Company's policy for determining whether declines in fair value of available-for-sale securities are other than temporary includes a quarterly analysis of the investments and a review by management of all investments for which the cost exceeds the fair value. Any temporary declines in fair value are recorded as a charge to other comprehensive income. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and management's ability and intent to hold the securities until fair value recovers. If such impairment is determined by the Company to be other-than-temporary, the investment's cost basis is written down to fair value and recorded in net income during the period the Company determines such impairment to be other-than-temporary. The new cost basis is not changed for subsequent recoveries in fair value. Refer to Note 5 for further discussion on our available-for-sale securities.

Asset Impairment

        We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable. The recoverability of the carrying value of royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each royalty interest property using estimates of proven and probable reserves and other relevant information received from the operator. We evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold, silver, copper, nickel and other metals, and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur in the future, thus affecting the future recoverability of our royalty interests. Impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value, which is generally calculated using estimated future discounted cash flows.

        Our estimates of gold, silver, copper, nickel and other metal prices, operator's estimates of proven and probable reserves related to our royalty interests, and operator's estimates of operating, capital and reclamation costs are subject to certain risks and uncertainties which may affect the recoverability of our investment in these royalty interests in mineral properties. Although we have made our best assessment of these factors based on current conditions, it is possible that changes could occur, which could adversely affect the net cash flows expected to be generated from these royalty interests.

Revenue

        Revenue is recognized in accordance with the guidance of ASC 605 and based upon amounts contractually due pursuant to the underlying royalty or stream agreement. Specifically, revenue is recognized in accordance with the terms of the underlying royalty or stream agreements subject to (i) the pervasive evidence of the existence of the arrangements; (ii) the risks and rewards having been transferred; (iii) the royalty or stream being fixed or determinable; and (iv) the collectability being reasonably assured. For royalty payments received in-kind, revenue is recorded at the average spot price of gold for the period in which the royalty was earned. For our streaming agreements, we sell most of the delivered gold within three weeks of receipt and recognize revenue when the metal received is sold.

Gold Sales

        Gold received under our metal streaming agreements is sold primarily in the spot market or under average rate gold forward contracts. For our gold sold in the spot market, the sales price is fixed at the delivery date based on the gold spot price, while the sales price for our gold sold under average rate gold forward contracts is determined by the average gold price under the term of the contract, typically 15 consecutive trading days shortly after the receipt and purchase of the gold. Revenue from gold sales is recognized on the date of the settlement, which is also the date that title to the gold passes to the purchaser.

Cost of Sales

        Cost of sales is specific to our streaming agreement for Mt. Milligan and is the result of the Company's purchases of gold for a cash payment of the lesser of $435 per ounce, or the prevailing market price of gold when purchased.

Production taxes

        Certain royalty payments are subject to production taxes (or mining proceeds taxes), which are recognized at the time of revenue recognition. Production taxes are not income taxes and are included within the costs and expenses section in the Company's consolidated statements of operations and comprehensive income.

Stock-Based Compensation

        The Company accounts for stock-based compensation in accordance with the guidance of ASC 718. The Company recognizes all share-based payments to employees, including grants of employee stock options, stock-settled stock appreciation rights ("SSARs"), restricted stock and performance stock, in its financial statements based upon their fair values.

Operating Segments and Geographical Information

        The Company manages its business under a single operating segment, consisting of the acquisition and management of royalty and stream interests. Royal Gold's revenue and long-lived assets (royalty and stream interests, net) are geographically distributed as shown in the following table.

 
  Revenue   Royalty and Stream
Interests, net
 
 
  Fiscal Year Ended
June 30,
  Fiscal Year Ended
June 30,
 
 
  2014   2013   2012   2014   2013   2012  

Canada

    34 %   24 %   24 %   53 %   52 %   43 %

Chile

    21 %   29 %   25 %   31 %   30 %   35 %

Mexico

    18 %   19 %   20 %   7 %   7 %   9 %

United States

    15 %   17 %   18 %   3 %   4 %   5 %

Australia

    4 %   4 %   5 %   3 %   3 %   3 %

Africa

    3 %   3 %   4 %   1 %   1 %   1 %

Other

    5 %   4 %   4 %   2 %   3 %   4 %

Income Taxes

        The Company accounts for income taxes in accordance with the guidance of Accounting Standards Codification Topic 740. The Company's annual tax rate is based on income, statutory tax rates in effect and tax planning opportunities available to us in the various jurisdictions in which the Company operates. Significant judgment is required in determining the annual tax expense, current tax assets and liabilities, deferred tax assets and liabilities, and our future taxable income, both as a whole and in various tax jurisdictions, for purposes of assessing our ability to realize future benefit from our deferred tax assets. Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year's liability by taxing authorities.

        The Company's deferred income taxes reflect the impact of temporary differences between the reported amounts of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations. In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies in each tax jurisdiction. A valuation allowance may be established to reduce our deferred tax assets to the amount that is considered more likely than not to be realized through the generation of future taxable income and other tax planning strategies.

        The Company has asserted the indefinite reinvestment of certain foreign subsidiary earnings as determined by management's judgment about and intentions concerning the future operations of the Company. As a result, the Company does not record a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in foreign corporations to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. Refer to Note 12 for further discussion on our assertion.

        The Company's operations may involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress of a tax audit; however, due to the complexity of some of these uncertainties, the ultimate resolution could result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period which they are determined. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Comprehensive Income

        In addition to net income, comprehensive income includes changes in equity during a period associated with cumulative unrealized changes in the fair value of marketable securities held for sale, net of tax effects.

Earnings per Share

        Basic earnings per share is computed by dividing net income available to Royal Gold common stockholders by the weighted average number of outstanding common shares for the period, considering the effect of participating securities, and include the outstanding exchangeable shares. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts that may require issuance of common shares were converted. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted average number of common shares outstanding, including outstanding exchangeable shares, during each fiscal year.

Reclassification

        Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements.

Recently Issued Accounting Standards

        In May 2014, the Financial Accounting Standards Board issued Accounting Standards Updated ("ASU") 2014-09, which establishes a comprehensive new revenue recognition model designed to depict the transfer of good or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods and services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2018; early adoption is not permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements, as well as which transition method we intend to use.

ACQUISITIONS
ACQUISITIONS

3. ACQUISITIONS

Phoenix Gold Project Stream Acquisition

        On February 11, 2014, the Company, through its wholly-owned subsidiary RGLD Gold AG ("RGLD Gold"), entered into a $75 million Purchase and Sale Agreement (the "Agreement") for a gold stream transaction with Rubicon Minerals Corporation ("Rubicon"). Pursuant to the Agreement, the $75 million payment deposit from RGLD Gold is to be used by Rubicon to help pay a significant portion of the construction costs of the Phoenix Gold Project located in Ontario, Canada, which is currently in the development stage.

        Pursuant to the Agreement, the $75 million payment deposit to Rubicon is prepayment of the purchase price for refined gold and is payable in five installments. The first installment of $10 million was made in conjunction with execution of definitive documents on February 11, 2014. The second installment of $20 million was paid on March 20, 2014, while the third, fourth and fifth installments of $15 million each are payable upon satisfaction of certain conditions precedent.

        Upon commencement of production at the Phoenix Gold Project, RGLD Gold will purchase and Rubicon will sell 6.30% of any gold produced from the Phoenix Gold Project until 135,000 ounces have been delivered, and 3.15% thereafter. For each delivery of gold, RGLD Gold will pay a purchase price per ounce of 25% of the spot price of gold at the time of delivery. In the event that RGLD Gold's interests are subordinated to more than $50 million of senior debt, RGLD Gold's per ounce purchase price will be reduced by 5.4% times the amount of the senior debt outstanding and drawn in excess of $50 million, divided by $50 million.

        The Phoenix Gold Project gold stream acquisition has been accounted for as an asset acquisition. The $30 million paid as part of the aggregate pre-production commitment of $75 million, plus direct transaction costs, have been recorded as a development stage stream interest within Royalty and stream interests, net on our consolidated balance sheets.

Goldrush Royalty Acquisition

        On January 7, 2014, Royal Gold acquired a 1.0% net revenue royalty on the southern end of Barrick Gold Corporation's ("Barrick") Goldrush deposit in Nevada from a private landowner for total consideration of $8.0 million, of which $1.0 million was paid at closing and the remaining $7.0 million will be paid in seven annual installments. Goldrush is located approximately four miles from the Cortez mine. The acquisition has been recorded as an exploration stage royalty interest within Royalty and stream interests, net on our consolidated balance sheets.

NVR1 Royalty at Cortez

        On January 2, 2014, Royal Gold, through a wholly-owned subsidiary, increased its ownership interest in the limited partnership that owns the 1.25% net value royalty ("NVR1") covering certain portions of the Pipeline Complex at Barrick's Cortez gold mine in Nevada. As a result of the transaction, the NVR1 royalty rate attributable to our interest increased from 0.39% to 1.014% on production from all of the lands covered by the NVR1 royalty excluding production from the mining claims comprising the Crossroad deposit (the "Crossroad Claims"), and from zero to 0.618% on production from the Crossroad Claims. Total consideration for the transaction was approximately $11.5 million. Refer to Note 17 for a discussion of certain related party interests in this transaction.

El Morro Royalty Acquisition

        In August 2013, Royal Gold, through a wholly-owned Chilean subsidiary, acquired a 70% interest in a 2.0% net smelter return ("NSR") royalty on certain portions of the El Morro copper gold project in Chile ("El Morro"), from Xstrata Copper Chile S.A., for $35 million. Goldcorp Inc. holds 70% ownership of the El Morro project and is the operator, with the remaining 30% held by New Gold Inc.

        The acquisition of the El Morro royalty interest has been accounted for as an asset acquisition. The total purchase price of $35 million, plus direct transaction costs, has been recorded as a development stage royalty interest within Royalty and stream interests, net on our consolidated balance sheets.

Mt. Milligan II and III Gold Stream Acquisitions

        On December 14, 2011, Royal Gold and one of its wholly-owned subsidiaries entered into an Amended and Restated Purchase and Sale Agreement with Thompson Creek Metals Company Inc. ("Thompson Creek") and one of its wholly-owned subsidiaries. Among other things, Royal Gold agreed to purchase an additional 15% of the payable ounces of gold from the Mt. Milligan copper-gold project in exchange for payment advances totaling $270 million, of which $112 million was paid on December 19, 2011, and, when production is reached, cash payments for each payable ounce of gold delivered to Royal Gold.

        On August 8, 2012, Royal Gold entered into an amendment to its purchase and sale agreement with Thompson Creek whereby Royal Gold, among other things, agreed to purchase an additional 12.25% of the payable gold from the Mt. Milligan copper-gold project in exchange for a total of $200 million, of which $75 million was paid shortly after closing, and, when production is reached, cash payments for each payable ounce of gold delivered to Royal Gold (the "Milligan III Acquisition"). Under the Milligan III Acquisition, Royal Gold increased its aggregate pre-production commitment in the Mt. Milligan project from $581.5 million to $781.5 million and agreed to purchase a total of 52.25% of the payable ounces of gold produced from the Mt. Milligan project at a cash purchase price equal to the lesser of $435, with no inflation adjustment, or the prevailing market price for each payable ounce of gold (regardless of the number of payable ounces delivered to Royal Gold). As of June 30, 2014, the Company has paid the entire aggregate pre-production commitment of $781.5 million.

        The Mt. Milligan acquisitions have been accounted for as an asset acquisition. The aggregate pre-production commitment of $781.5 million, plus direct transaction costs, is recorded as a production stage stream interest within Royalty and stream interests, net on our consolidated balance sheets.

Acquisition of Royalty Options on the Kerr-Sulphurets-Mitchell Project and Investment in Seabridge Gold, Inc.

        On June 16, 2011, the Company, through its wholly-owned subsidiary RG Exchangeco Inc., ("RG Exchangeco") entered into a Subscription Agreement and an Option Agreement with Seabridge Gold, Inc. ("Seabridge") to (i) make a $30.7 million (C$30 million) initial equity investment in the common shares of Seabridge, (ii) acquire an option to purchase a 1.25% net smelter return royalty (the "Initial Royalty") on all of the gold and silver production from the Kerr-Sulphurets-Mitchell project (the "Project") in northwest British Columbia, (iii) acquire an option to make a second equity investment in the common shares of Seabridge of up to C$18 million and (iv) acquire a second option to increase the Initial Royalty to a 2.00% net smelter return royalty (the "Increased Royalty").

        Pursuant to the Subscription Agreement, on June 29, 2011, the Company purchased 1,019,000 common shares of Seabridge (the "Initial Shares") in a private placement for $30.7 million (C$30 million) at a per share price equal to $30.14 (C$29.4), which represented a premium of 15% to the volume weighted average trading price of the Seabridge common shares on the Toronto Stock Exchange ("TSX") for the five trading day period that ended June 14, 2011.

        Pursuant to the Option Agreement (as amended by the Amending Agreement dated October 28, 2011, the "Option Agreement"), by having held the Initial Shares for more than 270 days from the date they were acquired, the Company obtained the right to purchase the Initial Royalty for C$100 million, payable in three installments over a 540 day period, subject to currency rate adjustments. As of June 30, 2014, the Company continues to hold the Initial Shares but has not exercised its option to acquire the Initial Royalty.

        On December 13, 2012, RG Exchangeco exercised its option to make a second equity investment in the common shares of Seabridge and purchased 1,004,491 common shares of Seabridge (the "Additional Shares") at a 15% premium to the volume weighted-average trading price of the Seabridge common shares on the TSX for a five day trading period that ended December 11, 2012, for $18.3 million (C$18.0 million). Effective December 13, 2012, the Company entered into a Second Amending Agreement (the "Seabridge Amendment") to the Option Agreement to, among other things, remove the 270 day minimum holding period applicable to the Additional Shares.

        Upon the Company's purchase of the Additional Shares, the Company obtained the right, under the Option Agreement, as amended by the Seabridge Amendment, to purchase the Increased Royalty for C$60 million, payable in three installments over a 540 day period. Accordingly, the Company now holds the right to purchase either a 1.25% NSR royalty on all of the gold and silver production from the Project for C$100 million, or a 2.0% NSR royalty for C$160 million. Royal Gold sold the Additional Shares in a private transaction to an unrelated party for $14.6 million (C$14.4 million) on December 13, 2012.

        The options to purchase the Initial Royalty and the Increased Royalty will remain exercisable by the Company for 60 days following the Company's satisfaction that, among other items, the Project has received all material approvals and permits and that Seabridge has demonstrated that it has sufficient funding for construction of and commencement of commercial production from the Project.

        The investment in Initial Shares was accounted for as a purchase of securities and the investment in the Project was accounted for as an asset purchase. As such, the Company has recorded the Initial Shares as an investment in Available-for-sale securities on the consolidated balance sheets; refer to Note 5 for further detail on our investment in available-for-sale securities. The 15% premium on the Initial Shares and Additional Shares, which represented the value of the option to acquire the Initial Royalty and Increased Royalty, plus direct acquisition costs, has been recorded within Other assets on the consolidated balance sheets. The purchase and same day sale of the Additional Shares resulted in a realized loss on trading securities of approximately $1.3 million during our fiscal year ended June 30, 2013, which is recorded within Interest and other expense on our consolidated statements of operations and comprehensive income.

ROYALTY AND STREAM INTERESTS, NET
ROYALTY AND STREAM INTERESTS, NET

4. ROYALTY AND STREAM INTERESTS, NET

        The following summarizes the Company's royalty and stream interests as of June 30, 2014 and 2013:

As of June 30, 2014
(Amounts in thousands):
  Cost   Accumulated
Depletion
  Net  

Production stage royalty interests:

                   

Andacollo

  $ 272,998   $ (56,147 ) $ 216,851  

Voisey's Bay

    150,138     (67,377 )   82,761  

Peñasquito

    99,172     (17,801 )   81,371  

LasCruces

    57,230     (16,917 )   40,313  

Dolores

    55,820     (11,109 )   44,711  

Mulatos

    48,092     (28,548 )   19,544  

Wolverine

    45,158     (12,689 )   32,469  

Canadian Malartic

    38,800     (10,038 )   28,762  

Holt

    34,612     (10,474 )   24,138  

Gwalia Deeps

    31,070     (10,549 )   20,521  

Inata

    24,871     (12,161 )   12,710  

Ruby Hill

    24,335     (13,403 )   10,932  

Leeville

    18,322     (15,917 )   2,405  

Robinson

    17,825     (11,887 )   5,938  

Cortez

    10,630     (9,772 )   858  

Other

    192,703     (130,130 )   62,573  
               

 

    1,121,776     (434,919 )   686,857  

Production stage stream interests:

   
 
   
 
   
 
 

Mt. Milligan

    783,046     (7,741 )   775,305  
               

Production stage royalty and stream interests

    1,904,822     (442,660 )   1,462,162  

Development stage royalty interests:

   
 
   
 
   
 
 

Pascua-Lama

    372,105         372,105  

El Morro

    35,139         35,139  

Other

    34,349         34,349  

Development stage stream interests:

   
 
   
 
   
 
 

Phoenix Gold

    30,620         30,620  

Other

    10,483         10,483  
               

Development stage royalty and stream interests

    482,696         482,696  

Exploration stage royalty interests

   
164,209
   
   
164,209
 
               

Total royalty and stream interests

  $ 2,551,727   $ (442,660 ) $ 2,109,067  
               
               


 

As of June 30, 2013
(Amounts in thousands):
  Cost   Accumulated
Depletion
  Net  

Production stage royalty interests:

                   

Andacollo

  $ 272,998   $ (44,317 ) $ 228,681  

Voisey's Bay

    150,138     (51,881 )   98,257  

Peñasquito

    99,172     (12,393 )   86,779  

Las Cruces

    57,230     (11,713 )   45,517  

Mulatos

    48,092     (24,545 )   23,547  

Wolverine

    45,158     (7,891 )   37,267  

Dolores

    44,878     (8,186 )   36,692  

Canadian Malartic

    38,800     (6,320 )   32,480  

Holt

    34,612     (6,564 )   28,048  

Gwalia Deeps

    31,070     (7,194 )   23,876  

Inata

    24,871     (9,303 )   15,568  

Ruby Hill

    24,335     (3,054 )   21,281  

Leeville

    18,322     (15,484 )   2,838  

Robinson

    17,825     (11,224 )   6,601  

Cortez

    10,630     (9,716 )   914  

Other

    190,702     (121,654 )   69,048  
               

 

    1,108,833     (351,439 )   757,394  

Development stage royalty interests:

   
 
   
 
   
 
 

Pascua-Lama

    372,105         372,105  

Other

    32,934         32,934  

Development stage stream interests:

   
 
   
 
   
 
 

Mt. Milligan

    770,093         770,093  

Other

    10,418         10,418  
               

Development stage royalty and stream interests

    1,185,550         1,185,550  

Exploration stage royalty interests

   
177,324
   
   
177,324
 
               

Total royalty and stream interests

  $ 2,471,707   $ (351,439 ) $ 2,120,268  
               
               
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES

5. AVAILABLE-FOR-SALE SECURITIES

        The Company's available-for-sale securities as of June 30, 2014 and 2013 consist of the following:

 
  As of June 30, 2014  
 
   
  (Amounts
in thousands)
Unrealized
   
 
 
  Cost Basis   Gain   Loss   Fair Value  

Non-current:

                         

Seabridge

  $ 9,565           $ 9,565  

Other

    203         (160 )   43  
                   

 

  $ 9,768   $   $ (160 ) $ 9,608  
                   
                   


 

 
  As of June 30, 2013  
 
   
  (Amounts
in thousands)
Unrealized
   
 
 
  Cost Basis   Gain   Loss   Fair Value  

Non-current:

                         

Seabridge

  $ 14,064         (4,509 ) $ 9,555  

Other

    203         (63 )   140  
                   

 

  $ 14,267   $   $ (4,572 ) $ 9,695  
                   
                   

        The most significant available-for-sale security is the investment in Seabridge common stock, acquired in June 2011 and discussed in greater detail within Note 3 of our notes to consolidated financial statements. Based on our quarterly impairment analysis, the Company determined that the impairment of its investment in Seabridge common stock is other-than-temporary. As a result of the impairment, the Company recognized a loss on available-for-sale securities of $4.5 million during the fourth quarter of our fiscal year ended June 30, 2014. The Company also recognized a loss on available-for-sale securities related to our investment in Seabridge common stock of $12.1 million during the third quarter of our fiscal year ended June 30, 2013. The recognized losses have been reclassified out of comprehensive income in the respective periods. The Company will continue to evaluate its investment in Seabridge common stock considering additional facts and circumstances as they arise, including, but not limited to, the progress of development of Seabridge's KSM project.

DEBT
DEBT

6. DEBT

        The Company's debt as of June 30, 2014 and 2013 consists of the following:

 
  As of
June 30, 2014
  As of
June 30, 2013
 
 
  Non-current   Non-current  
 
  (Amounts in thousands)
 

Convertible notes due 2019, net

  $ 311,860   $ 302,263  
           

Total debt

  $ 311,860   $ 302,263  
           
           

Convertible Senior Notes Due 2019

        In June 2012, the Company completed an offering of $370 million aggregate principal amount of 2.875% convertible senior notes due 2019 ("2019 Notes"). The 2019 Notes bear interest at the rate of 2.875% per annum, and the Company is required to make semi-annual interest payments on the outstanding principal balance of the 2019 Notes on June 15 and December 15 of each year, beginning December 15, 2012. The 2019 Notes mature on June 15, 2019. Interest expense recognized on the 2019 Notes for the fiscal years ended June 30, 2014 and 2013 was approximately $21.4 million and $20.7 million, respectively, and included the contractual coupon interest, the accretion of the debt discount and amortization of the debt issuance costs. During the fiscal year ended June 30, 2014 and 2013, the Company made $10.6 million and $10.5 million, respectively, in interest payments on our 2019 Notes.

Revolving credit facility

        The Company maintains a $450 million revolving credit facility. Borrowings under the revolving credit facility bear interest at a floating rate of LIBOR plus a margin of 1.25% to 3.0%, based on Royal Gold's leverage ratio. As of June 30, 2014, the interest rate on borrowings under the revolving credit facility was LIBOR plus 1.25%. Royal Gold may repay any borrowings under the revolving credit facility at any time without premium or penalty. As of June 30, 2014, and during our fiscal year 2014, Royal Gold had no amounts outstanding under the revolving credit facility.

        Royal Gold amended and restated its revolving credit facility on January 29, 2014. Key modifications to the revolving credit facility include, among other items: (1) an increase in the maximum availability from $350 million to $450 million; (2) an extension of the final maturity from May 2017 to January 2019; (3) an increase of the accordion feature from $50 million to $150 million which allows the Company to increase availability under the revolving credit facility at its option, subject to satisfaction of certain conditions, to $600 million; (4) a reduction in the commitment fee from 0.375% to 0.25%; (5) a reduction in the drawn interest rate from LIBOR + 1.75% to LIBOR + 1.25%; (6) removal of the secured debt ratio, and (7) maintaining the leverage ratio (as defined therein) less than or equal to 3.5 to 1.0, with an increase to 4.0 to 1.0 for the two quarters following the completion of a material permitted acquisition, as defined. At June 30, 2014, the Company was in compliance with each financial covenant.

REVENUE
REVENUE

7. REVENUE

        Revenue is comprised of the following:

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Royalty interests

  $ 209,953   $ 289,224   $ 263,054  

Stream interests

    27,209          
               

Total revenue

  $ 237,162   $ 289,224   $ 263,054  
               
               
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

        In November 2004, the Company adopted the Omnibus Long-Term Incentive Plan ("2004 Plan"). Under the 2004 Plan, 2,600,000 shares of common stock have been authorized for future grants to officers, directors, key employees and other persons. The 2004 Plan provides for the grant of stock options, unrestricted stock, restricted stock, dividend equivalent rights, SSARs and cash awards. Any of these awards may, but need not, be made as performance incentives. Stock options granted under the 2004 Plan may be non-qualified stock options or incentive stock options.

        The Company recognized stock-based compensation expense as follows:

 
  For the Fiscal
Years Ended June 30,
 
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Stock options

  $ 468   $ 456   $ 446  

Stock appreciation rights

    1,305     1,107     1,219  

Restricted stock

    3,110     3,240     2,757  

Performance stock

    (2,303 )   898     2,085  
               

Total stock-based compensation expense

  $ 2,580   $ 5,701   $ 6,507  
               
               

        Stock-based compensation expense is included within general and administrative expense in the consolidated statements of operations and comprehensive income.

Stock Options and Stock Appreciation Rights

        Stock option and SSARs awards are granted with an exercise price equal to the closing market price of the Company's stock at the date of grant. Stock option and SSARs awards granted to officers, key employees and other persons vest based on one to three years of continuous service. Stock option and SSARs awards have 10 year contractual terms.

        To determine stock-based compensation expense for stock options and SSARs, the fair value of each stock option and SSAR is estimated on the date of grant using the Black-Scholes-Merton ("Black-Scholes") option pricing model for all periods presented. The Black-Scholes model requires key assumptions in order to determine fair value. Those key assumptions during the fiscal year 2014, 2013 and 2012 grants are noted in the following table:

 
  Stock Options   SSARs  
 
  2014   2013   2012   2014   2013   2012  

Weighted-average expected volatility

    43.6 %   43.1 %   45.1 %   41.3 %   43.7 %   45.3 %

Weighted-average expected life in years

    5.5     5.5     5.7     4.8     6.4     6.1  

Weighted-average dividend yield

    1.00 %   0.86 %   0.76 %   1.00 %   0.90 %   0.76 %

Weighted-average risk free interest rate

    1.7 %   0.8 %   1.1 %   1.5 %   1.0 %   1.2 %

        The Company's expected volatility is based on the historical volatility of the Company's stock over the expected option term. The Company's expected option term is determined by historical exercise patterns along with other known employee or company information at the time of grant. The risk free interest rate is based on the zero-coupon U.S. Treasury bond at the time of grant with a term approximate to the expected option term.

Stock Options

        A summary of stock option activity under the 2004 Plan for the fiscal year ended June 30, 2014, is presented below.

 
  Number
of Shares
  Weighted-
Average
Exercise
Price
  Weighted-
Average
Remaining
Contractual
Life (Years)
  Aggregate
Intrinsic Value
(in thousands)
 

Outstanding at July 1, 2013

    119,313   $ 46.12              

Granted

    24,775   $ 59.99              

Exercised

    (34,495 ) $ 32.48              

Forfeited

    (8,200 ) $ 68.11              
                       

Outstanding at June 30, 2014

    101,393   $ 52.37     6.4   $ 2,410  
                   
                   

Exercisable at June 30, 2014

    63,531   $ 45.16     5.1   $ 1,967  
                   
                   

        The weighted-average grant date fair value of options granted during the fiscal years ended June 30, 2014, 2013 and 2012, was $22.78, $26.76 and $27.23, respectively. The total intrinsic value of options exercised during the fiscal years ended June 30, 2014, 2013 and 2012, were $1.1 million, $4.1 million, and $8.7 million, respectively.

        As of June 30, 2014, there was approximately $0.5 million of total unrecognized stock-based compensation expense related to non-vested stock options granted under the 2004 Plan, which is expected to be recognized over a weighted-average period of 1.8 years.

SSARs

        A summary of SSARs activity under the 2004 Plan for the fiscal year ended June 30, 2014, is presented below.

 
  Number
of Shares
  Weighted-
Average
Exercise
Price
  Weighted-
Average
Remaining
Contractual
Life (Years)
  Aggregate
Intrinsic Value
(in thousands)
 

Outstanding at July 1, 2013

    162,284   $ 58.28              

Granted

    84,125   $ 62.13              

Exercised

    (1,614 ) $ 32.52              

Forfeited

    (15,739 ) $ 61.28              
                       

Outstanding at June 30, 2014

    229,056   $ 59.67     7.5   $ 3,770  
                   
                   

Exercisable at June 30, 2014

    108,586   $ 53.42     6.1   $ 2,466  
                   
                   

        The weighted-average grant date fair value of SSARs granted during the fiscal years ended June 30, 2014, 2013 and 2012 was $21.15, $29.78 and $28.04, respectively. The total intrinsic value of SSARs exercised during the fiscal years ended June 30, 2014, 2013 and 2012, were $0.1 million, $3.5 million, and $0, respectively.

        As of June 30, 2014, there was approximately $1.6 million of total unrecognized stock-based compensation expense related to non-vested SSARs granted under the 2004 Plan, which is expected to be recognized over a weighted-average period of 1.8 years.

Other Stock-based Compensation

Performance Shares

        During fiscal 2014, officers and certain employees were granted 71,700 shares of restricted common stock that can be earned only if a single pre-defined performance goal is met within five years of the date of grant ("Performance Shares"). If the performance goal is not earned by the end of this five year period, the Performance Shares will be forfeited. Vesting of Performance Shares is subject to certain performance measures being met and can be based on an interim earn out of 25%, 50%, 75% or 100%. For Performance Shares granted during fiscal year 2014, there is a single pre-defined performance goal, which is growth of adjusted free cash flow on a per share, trailing twelve month basis.

        The Company measures the fair value of the Performance Shares based upon the market price of our common stock as of the date of grant. In accordance with ASC 718, the measurement date for the Performance Shares will be determined at such time that the performance goals are attained or that it is probable they will be attained. At such time that it is probable that a performance condition will be achieved, compensation expense will be measured by the number of shares that will ultimately be earned based on the grant date market price of our common stock. For shares that were previously estimated to be probable of vesting and are no longer deemed to be probable of vesting, compensation expense is reversed during the period in which it is determined they are no longer probable of vesting. Interim recognition of compensation expense will be made at such time as management can reasonably estimate the number of shares that will be earned.

        A summary of the status of the Company's non-vested Performance Shares for the fiscal year ended June 30, 2014, is presented below:

 
  Number
of Shares
  Weighted-
Average
Grant Date
Fair Value
 

Non-vested at July 1, 2013

    107,850   $ 66.20  

Granted

    71,700   $ 61.39  

Vested

      $  

Forfeited

      $  
           

Non-vested at June 30, 2014

    179,550   $ 64.28  
           
           

        As of June 30, 2014, total unrecognized stock-based compensation expense related to Performance Shares was approximately $0.7 million, which is expected to be recognized over the average remaining vesting period of 3.5 years.

Restricted Stock

        As defined in the 2004 Plan, officers, non-executive directors and certain employees may be granted shares of restricted stock that vest on continued service alone ("Restricted Stock"). During fiscal 2014, officers and certain employees were granted 46,200 shares of Restricted Stock. Restricted Stock awards granted to officers and certain employees vest over three years beginning after a two-year holding period from the date of grant with one-third of the shares vesting in years three, four and five, respectively. Also during fiscal year 2014, our non-executive directors were granted 19,950 shares of Restricted Stock. The non-executive directors' shares of Restricted Stock vest 50% immediately and 50% one year after the date of grant.

        Shares of Restricted Stock represent issued and outstanding shares of common stock, with dividend and voting rights. The Company measures the fair value of the Restricted Stock based upon the market price of our common stock as of the date of grant. Restricted Stock is amortized over the applicable vesting period using the straight-line method. Unvested shares of Restricted Stock are subject to forfeiture upon termination of employment or service with the Company.

        A summary of the status of the Company's non-vested Restricted Stock for the fiscal year ended June 30, 2014, is presented below:

 
  Number
of Shares
  Weighted-
Average
Grant Date
Fair Value
 

Non-vested at July 1, 2013

    194,706   $ 52.15  

Granted

    66,150   $ 61.32  

Vested

    (71,707 ) $ 44.95  

Forfeited

    (12,058 ) $ 58.63  
           

Non-vested at June 30, 2014

    177,091   $ 58.06  
           
           

        As of June 30, 2014, total unrecognized stock-based compensation expense related to Restricted Stock was approximately $5.3 million, which is expected to be recognized over the weighted-average vesting period of 3.2 years.

STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY

9. STOCKHOLDERS' EQUITY

Preferred Stock

        The Company has 10,000,000 authorized and unissued shares of $.01 par value Preferred Stock as of June 30, 2014 and 2013.

Common Stock Issuances

Fiscal Year 2014

        During the fiscal year ended June 30, 2014, options to purchase 34,495 shares were exercised, resulting in proceeds of approximately $1.1 million.

Fiscal Year 2013

        During the fiscal year ended June 30, 2013, options to purchase 65,341 shares were exercised, resulting in proceeds of approximately $1.9 million.

        On October 15, 2012, we sold 5,250,000 shares of our common stock, at a price of $90.00 per share, resulting in proceeds of $472.5 million before expenses.

Exchangeable Shares

        In connection with the acquisition of International Royalty Corporation ("IRC") in February 2010, certain holders of IRC common stock received exchangeable shares of RG Exchangeco for each share of IRC common stock held. The exchangeable shares are convertible at any time, at the option of the holder, into shares of Royal Gold common stock on a one-for-one basis, and entitle holders to dividends and other rights economically equivalent to holders of Royal Gold common stock.

Stockholders' Rights Plan

        On September 10, 2007, the Company entered into the First Amended and Restated Rights Agreement, dated September 10, 2007 (the "Rights Agreement"). The Rights Agreement expires on September 10, 2017. The Rights Agreement was approved by the Company's board of directors (the "Board").

        The Rights Agreement is intended to deter coercive or abusive tender offers and market accumulations. The Rights Agreement is designed to encourage an acquirer to negotiate with the Board and to enhance the Board's ability to act in the best interests of all the Company's stockholders.

        Under the Rights Agreement, each stockholder of the Company holds one preferred stock purchase right (a "Right") for each share of Company common stock held. The Rights generally become exercisable only in the event that an acquiring party accumulates 15 percent or more of the Company's outstanding shares of common stock. If this were to occur, subject to certain exceptions, each Right (except for the Rights held by the acquiring party) would allow its holders to purchase one one-thousandth of a newly issued share of Series A junior participating preferred stock of Royal Gold or the Company's common stock with a value equal to twice the exercise price of the Right, initially set at $175 under the terms and conditions set forth in the Rights Agreement.

RESTRUCTURING ON ROYALTY AND STREAM INTERESTS
RESTRUCTURING ON ROYALTY AND STREAM INTERESTS

10. RESTRUCTURING ON ROYALTY AND STREAM INTERESTS

        The Company owns an NSR royalty on the Relief Canyon property located in Nevada. From November 2010 to October 2011, the Company was involved in managing this interest in bankruptcy proceedings of the former owner of the Relief Canyon project. On August 24, 2011, the Company entered into an Amended and Restated Net Smelter Return Royalty Agreement with the former property owner, pursuant to which the royalty rate was reduced from 4% to 2%, and the ten mile area of interest was eliminated. The Company elected to amend the royalty agreement in order to enhance project economics and the probability of recognizing royalty revenue. As a result of the amendment to the Relief Canyon royalty agreement, the Company recorded a restructuring charge of approximately $1.3 million during the fiscal year ended June 30, 2012, which was based on the Company's estimate of fair value. There were no additional impairments on our Relief Canyon royalty during the fiscal years ended June 30, 2014 and 2013. The Company's carrying value for the Relief Canyon royalty interest was approximately $1.2 million as of June 30, 2014 and 2013.

EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS")

11. EARNINGS PER SHARE ("EPS")

        Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company's unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. The Company's unexercised stock options, unexercised SSARs and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic earnings per common share are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share.

        The following table summarizes the effects of dilutive securities on diluted EPS for the period:

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (in thousands, except per share data)
 

Net income available to Royal Gold common stockholders

  $ 62,641   $ 69,153   $ 92,476  
               

Weighted-average shares for basic EPS

    64,909,149     63,250,247     57,220,040  

Effect of other dilutive securities

    117,107     179,575     243,810  
               

Weighted-average shares for diluted EPS

    65,026,256     63,429,822     57,463,850  
               
               

Basic earnings per share

  $ 0.96   $ 1.09   $ 1.61  
               
               

Diluted earnings per share

  $ 0.96   $ 1.09   $ 1.61  
               
               

        The calculation of weighted average shares includes all of the Company's outstanding stock: common stock and exchangeable shares. Exchangeable shares are the equivalent of common shares in that they have the same dividend rights and share equitably in undistributed earnings and are exchangeable on a one-for-one basis for shares of our common stock. With respect to the 2019 Notes as discussed in Note 6, the Company intends to settle the principal amount of 2019 Notes in cash. As a result, there will be no impact to diluted earnings per share unless the share price of the Company's common stock exceeds the conversion price of $105.31.

INCOME TAXES
INCOME TAXES

12. INCOME TAXES

        For financial reporting purposes, income before income taxes includes the following components:

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

United States

  $ 17,033   $ 65,851   $ 110,189  

Foreign

    65,894     71,317     42,830  
               

 

  $ 82,927   $ 137,168   $ 153,019  
               
               

        The Company's Income tax expense consisted of:

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Current:

                   

Federal

  $ (3,663 ) $ 30,061   $ 35,556  

State

    334     368     310  

Foreign

    30,950     44,749     17,273  
               

 

  $ 27,621   $ 75,178   $ 53,139  
               
               

Deferred and others:

                   

Federal

  $ (4,122 ) $ (4,341 ) $ 77  

State

    (26 )   (27 )    

Foreign

    (4,018 )   (7,051 )   1,494  
               

 

  $ (8,166 ) $ (11,419 ) $ 1,571  
               

Total income tax expense

  $ 19,455   $ 63,759   $ 54,710  
               
               

        The provision for income taxes for the fiscal years ended June 30, 2014, 2013 and 2012, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income (net of non-controlling interest in income of consolidated subsidiary and loss from equity investment) from operations as a result of the following differences:

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Total expense computed by applying federal rates

  $ 29,024   $ 48,009   $ 53,557  

State and provincial income taxes, net of federal benefit

    334     368     310  

Adjustments of valuation allowance

            (1,007 )

Excess depletion

    (1,114 )   (1,395 )   (1,416 )

Estimates for uncertain tax positions

    (7,386 )   1,868     551  

Statutory tax attributable to non-controlling interest

    (293 )   (1,236 )   (2,042 )

Effect of foreign earnings

    1,141     4,223     511  

Effect of foreign earnings indefinitely reinvested

    (1,700 )        

Effect of recognized loss on available-for-sale securities

    562     4,239      

Unrealized foreign exchange gains

    (367 )   1,146     (546 )

Changes in estimates and corrected errors of prior year tax

    (594 )   4,979     1,075  

Other

    (152 )   1,558     3,717  
               

 

  $ 19,455   $ 63,759   $ 54,710  
               
               

        The effective tax rate includes the impact of certain undistributed foreign subsidiary earnings for which we have not provided U.S. taxes because we plan to reinvest such earnings indefinitely outside the United States. The Company has the ability and intent to indefinitely reinvest these foreign earnings based on revenue and cash projections of our other investments, current cash on hand, and availability under our revolving credit facility. At June 30, 2014, the relevant foreign subsidiary had an accumulated earnings deficit due to costs incurred prior to earning income in fiscal 2014. No deferred tax has been provided on the difference between the tax basis in the stock of the consolidated subsidiary and the amount of the subsidiary's net equity determined for financial reporting purposes.

        During the quarter ended September 30, 2013 as a result of continued review of the June 30, 2012 tax return and financial statement impacts of the return results, the Company recorded a $1.7 million income tax benefit resulting from an identified error. Additionally, during the quarter ended June 30, 2014, the Company recorded a $2.6 million income tax expense as a result of continued review of prior year's tax accounts. In accordance with applicable U.S. GAAP, management quantitatively and qualitatively evaluated the materiality of these errors and determined them to be immaterial to the fiscal year 2014 or prior year consolidated financial statements.

        The tax effects of temporary differences and carryforwards, which give rise to our deferred tax assets and liabilities at June 30, 2014 and 2013, are as follows:

 
  2014   2013  
 
  (Amounts in thousands)
 

Deferred tax assets:

             

Stock-based compensation

  $ 3,511   $ 3,853  

Net operating losses

    19,322     25,943  

Other

    7,068     4,460  
           

Total deferred tax assets

    29,901     34,256  

Valuation allowance

    (4,933 )   (4,606 )
           

Net deferred tax assets

  $ 24,968   $ 29,650  
           

Deferred tax liabilities:

             

Mineral property basis

  $ (158,301 ) $ (165,936 )

Unrealized foreign exchange gains

    (3,072 )   (3,684 )

2019 Notes

    (20,002 )   (23,281 )

Other

    (2,239 )   (3,561 )
           

Total deferred tax liabilities

    (183,614 )   (196,462 )
           

Total net deferred taxes

  $ (158,646 ) $ (166,812 )
           
           

        The Company reviews the measurement of its deferred tax assets at each balance sheet date. All available evidence, both positive and negative, is considered in determining whether, based upon the weight of the evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. As of June 30, 2014 and 2013, the Company had $4.9 million and $4.6 million of valuation allowances recorded, respectively. The valuation allowance remaining at June 30, 2014 is primarily attributable to deferred tax asset generated by the recognized loss on available-for-sale securities and the tax basis difference as a result of unrealized losses on foreign exchange.

        At June 30, 2014 and 2013, the Company had $77 million and $108 million of net operating loss carry forwards, respectively. The decrease in the net operating loss carry forwards is attributable to utilization of net operating losses in non-U.S. subsidiaries. The majority of the tax loss carry forwards are in jurisdictions that allow a twenty year carry forward period. As a result, these losses do not begin to expire until the 2025 tax year, and the Company anticipates the losses will be fully utilized.

        As of June 30, 2014 and 2013, the Company had $13.7 million and $21.2 million of total gross unrecognized tax benefits, respectively. If recognized, these unrecognized tax benefits would positively impact the Company's effective income tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

 
  2014   2013   2012  
 
  (Amounts in
thousands)

   
 

Total gross unrecognized tax benefits at beginning of year

  $ 21,166   $ 19,469   $ 18,836  

Additions / Reductions for tax positions of current year

    (1,052 )   2,638     2,051  

Reductions due to settlements with taxing authorities

    (296 )   (941 )    

Reductions due to lapse of statute of limitations

    (6,093 )       (1,418 )
               

Total amount of gross unrecognized tax benefits at end of year

  $ 13,725   $ 21,166   $ 19,469  
               
               

        The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for fiscal years before 2009. As a result of (i) statute of limitations that will begin to expire within the next 12 months in various jurisdictions, (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, and (iii) and additional accrual of exposure and interest on existing items the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will not decrease in the next 12 months.

        The Company's continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At June 30, 2014 and 2013, the amount of accrued income-tax-related interest and penalties was $5.4 million and $4.3 million, respectively.

SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

13. SUPPLEMENTAL CASH FLOW INFORMATION

        The Company's supplemental cash flow information for the fiscal years ending June 30, 2014, 2013 and 2012 is as follows:

 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Cash paid during the period for:

                   

Interest

  $ 10,638   $ 10,490   $ 4,590  

Income taxes, net of refunds

  $ 27,322   $ 48,809   $ 58,520  

Non-cash investing and financing activities:

                   

Dividends declared

  $ 54,049   $ 47,997   $ 32,357  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

14. FAIR VALUE MEASUREMENTS

        ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

  • Level 1:    Quoted prices for identical instruments in active markets;

    Level 2:    Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

    Level 3:    Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

        The following table sets forth the Company's financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.

 
  At June 30, 2014  
 
   
  Fair Value  
 
  Carrying
Amount
 
 
  Total   Level 1   Level 2   Level 3  

Assets (In thousands):

                               

United States treasury bills(1)

  $ 499,992   $ 499,992   $ 499,992   $   $  

Marketable equity securities(2)

  $ 9,608   $ 9,608   $ 9,608   $   $  
                       

Total assets

        $ 509,600   $ 509,600   $   $  
                         
                         

Liabilities (In thousands):

                               

Debt(3)

  $ 388,860   $ 394,050   $ 394,050   $   $  
                       

Total liabilities

        $ 394,050   $ 394,050   $   $  
                         
                         

(1)
Included in Cash and equivalents in the Company's consolidated balance sheets.

(2)
Included in Available for sale securities in the Company's consolidated balance sheets.

(3)
Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within Additional paid-in capital in the Company's consolidated balance sheets.

        The Company invests primarily in United States treasury bills with maturities of 90 days or less, which are classified within Level 1 of the fair value hierarchy. The Company's marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets. The fair value of the Level 1 marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. The Company's debt classified within Level 1 of the fair value hierarchy is valued using quoted prices in an active market.

        As of June 30, 2014, the Company also had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with royalty interests in mineral properties, intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired. None of these assets were written down to fair value during the fiscal year ended June 30, 2014. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs.

MAJOR SOURCES OF REVENUE
MAJOR SOURCES OF REVENUE

15. MAJOR SOURCES OF REVENUE

        Operators that contributed greater than 10% of the Company's total revenue for any of fiscal years 2014, 2013 or 2012 were as follows (revenue amounts in thousands):

 
  Fiscal Year 2014   Fiscal Year 2013   Fiscal Year 2012  
Operator
  Revenue   Percentage
of total
revenue
  Revenue   Percentage
of total
revenue
  Revenue   Percentage
of total
revenue
 

Teck

  $ 48,777     20.6 % $ 82,272     28.4 % $ 64,075     24.4 %

Goldcorp, Inc. 

    32,339     13.6 %   32,461     11.2 %   31,407     11.9 %

Thompson Creek

    27,209     11.5 %   N/A     N/A     N/A     N/A  

Vale Newfoundland & Labrador Limited

    25,128     10.6 %   32,517     11.2 %   36,030     13.7 %
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

16. COMMITMENTS AND CONTINGENCIES

Phoenix Gold Project Stream Acquisition

        As of June 30, 2014, the Company has a remaining commitment of $45 million as part of its Phoenix Gold Project stream acquisition in February 2014 (Note 3).

Mt. Milligan Gold Stream Acquisition

        The Company's final commitment payment of $12.9 million to Thompson Creek as part of the Mt. Milligan gold stream acquisition was made in September 2013. The Company has no remaining commitment payments to Thompson Creek as part of the Mt. Milligan gold stream.

Tulsequah Chief Gold and Silver Stream Acquisition

        As of June 30, 2014, the Company has a remaining commitment of $45 million as part of its Tulsequah Chief gold and silver stream acquisition in December 2011, as amended in July 2014, payment of which is subject to satisfaction of certain conditions precedent.

Voisey's Bay

        The Company owns a royalty on the Voisey's Bay mine in Newfoundland and Labrador owned by Vale Newfoundland & Labrador Limited ("VNL"). The royalty is owned by the Labrador Nickel Royalty Limited Partnership ("LNRLP"), in which the Company's wholly-owned indirect subsidiary, Canadian Minerals Partnership, is the general partner and 89.99% owner. The remaining interests in LNRLP are owned by Altius Investments Ltd. (10%), a company unrelated to Royal Gold, and the Company's wholly-owned indirect subsidiary, Voisey's Bay Holding Corporation (0.01%).

        On October 16, 2009, LNRLP filed a claim in the Supreme Court of Newfoundland and Labrador Trial Division against Vale Inco Limited, now known as Vale Canada Limited ("Vale Canada") and its wholly-owned subsidiaries, Vale Inco Atlantic Sales Limited and VNL, related to the calculation of the NSR on the sale of concentrates, including nickel concentrates, from the Voisey's Bay mine to Vale Canada. The claim asserts that Vale Canada is incorrectly calculating the NSR and requests an order in respect of the correct calculation of future payments. The claim also requests specific damages for underpayment of past royalties to the date of the claim in an amount not less than $29 million, together with additional damages until the date of trial, interest, costs and other damages. The litigation is in the discovery phase.

RELATED PARTY
RELATED PARTY

17. RELATED PARTY

        Crescent Valley Partners, L.P. ("CVP") was formed as a limited partnership in April 1992. CVP owns the NVR1 royalty on production of minerals from a portion of Cortez. Denver Mining Finance Company ("DMFC"), our wholly-owned subsidiary, is the general partner and held an aggregate 31.633% limited partner interest as of December 31, 2013.

        On January 2, 2014, Royal Gold, through its wholly-owned subsidiary, DMFC, increased its ownership interest in the NVR1 royalty by acquiring all or a portion of the limited partnership interests of nine limited partners in CVP, aggregating 49.465% of the outstanding limited partnership interests, for approximately $11.5 million. The limited partners from whom DMFC acquired limited partnership interests included our former Chairman of the Board of Directors, who sold 3.0% out of his total 3.063% interest; one former member of our Board of Directors, who sold his entire 24.5% interest; and another former member of our Board of Directors, who sold his entire 8.0% interest. As a result of the transaction, DMFC now holds 81.098% of the outstanding limited partnership interests in CVP, equating to a 1.014% net value royalty on production from all of the lands covered by the NVR1 Royalty excluding production from the mining claims comprising the Crossroad Claims at Cortez, and a 0.618% net value royalty on production from the Crossroad Claims. The Crossroad Claims are part of the Pipeline Complex.

        CVP receives its royalty from the Cortez Joint Venture in-kind. The Company, as well as certain other limited partners, sell their pro-rata shares of such gold immediately and receive distributions in cash, while CVP holds gold for certain other limited partners. Such gold inventories, which totaled 7,708 and 9,742 ounces of gold as of June 30, 2014 and June 30, 2013, respectively, are held by a third party refinery in Utah for the account of the limited partners of CVP. The inventories are carried at historical cost and are classified within Other assets on the Company's consolidated balance sheets. The carrying value of the gold in inventory was approximately $5.0 million and $6.1 million as of June 30, 2014 and June 30, 2013, respectively, while the fair value of such ounces was approximately $10.1 million and $11.6 million as of June 30, 2014 and June 30, 2013, respectively. None of the gold currently held in inventory as of June 30, 2014 and 2013, is attributed to Royal Gold, as the gold allocated to Royal Gold's CVP partnership interest is typically sold within five days of receipt.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

18. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

        The following is a summary of selected quarterly financial information (unaudited). Some amounts in the below table may not sum-up in total as a result of rounding.

 
  Revenue   Operating
income
  Net income
attributable to
Royal Gold
stockholders
  Basic
earnings
per share
  Diluted
earnings
per share
 
 
  (Amounts in thousands except per share data)
 

Fiscal year 2014 quarter-ended:

                               

September 30

  $ 56,487   $ 25,738   $ 15,195   $ 0.23   $ 0.23  

December 31

    52,785     22,916     10,667     0.16     0.16  

March 31

    57,748     28,614     20,143     0.31     0.31  

June 30

    70,142     31,452     16,636     0.26     0.26  
                       

 

  $ 237,162   $ 108,720   $ 62,641   $ 0.96   $ 0.96  
                       
                       

Fiscal year 2013 quarter-ended:

                               

September 30

  $ 77,862   $ 47,646   $ 24,771   $ 0.42   $ 0.41  

December 31

    79,870     50,665     27,217     0.42     0.42  

March 31

    74,166     42,932     6,464     0.10     0.10  

June 30

    57,326     29,924     10,701     0.16     0.16  
                       

 

  $ 289,224   $ 171,167   $ 69,153   $ 1.09   $ 1.09  
                       
                       
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Policies)

Use of Estimates

        The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.

        Our most critical accounting estimates relate to our assumptions regarding future gold, silver, nickel, copper and other metal prices and the estimates of reserves, production and recoveries of third-party mine operators. We rely on reserve estimates reported by the operators on the properties in which we have royalty interests. These estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets. These estimates and assumptions also affect the rate at which we recognize revenue or charge depreciation, depletion and amortization to earnings. On an ongoing basis, management evaluates these estimates and assumptions; however, actual amounts could differ from these estimates and assumptions. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known.

Basis of Consolidation

        The consolidated financial statements include the accounts of Royal Gold, Inc. and its wholly-owned subsidiaries. All intercompany accounts, transactions, income and expenses, and profits or losses have been eliminated on consolidation.

Cash and Equivalents

        Cash and equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Cash and equivalents are primarily held in cash deposit accounts and United States treasury bills with maturities less than 90 days.

Royalty and Stream Interests

        Royalty and stream interests include acquired royalty and stream interests in production, development and exploration stage properties. The costs of acquired royalty and stream interests are capitalized as tangible assets as such interests do not meet the definition of a financial asset under Accounting Standards Codification ("ASC") guidance.

        Acquisition costs of production stage royalty and stream interests are depleted using the units of production method over the life of the mineral property (as royalty payments are recognized or sales occur under stream interests), which is estimated using proven and probable reserves as provided by the operator. Acquisition costs of royalty and stream interests on development stage mineral properties, which are not yet in production, are not amortized until the property begins production. Acquisition costs of royalty interests on exploration stage mineral properties, where there are no proven and probable reserves, are not amortized. At such time as the associated exploration stage mineral interests are converted to proven and probable reserves, the cost basis is amortized over the remaining life of the mineral property, using proven and probable reserves. The carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the costs may not be recoverable from future production. Exploration costs are charged to operations when incurred.

Available-for-Sale Securities

        Investments in securities that management does not have the intent to sell in the near term and that have readily determinable fair values are classified as available-for-sale securities. Unrealized gains and losses on these investments are recorded in accumulated other comprehensive income as a separate component of stockholders' equity, except that declines in market value judged to be other than temporary are recognized in determining net income. When investments are sold, the realized gains and losses on these investments, determined using the specific identification method, are included in determining net income.

        The Company's policy for determining whether declines in fair value of available-for-sale securities are other than temporary includes a quarterly analysis of the investments and a review by management of all investments for which the cost exceeds the fair value. Any temporary declines in fair value are recorded as a charge to other comprehensive income. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and management's ability and intent to hold the securities until fair value recovers. If such impairment is determined by the Company to be other-than-temporary, the investment's cost basis is written down to fair value and recorded in net income during the period the Company determines such impairment to be other-than-temporary. The new cost basis is not changed for subsequent recoveries in fair value. Refer to Note 5 for further discussion on our available-for-sale securities.

Asset Impairment

        We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable. The recoverability of the carrying value of royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each royalty interest property using estimates of proven and probable reserves and other relevant information received from the operator. We evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold, silver, copper, nickel and other metals, and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur in the future, thus affecting the future recoverability of our royalty interests. Impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value, which is generally calculated using estimated future discounted cash flows.

        Our estimates of gold, silver, copper, nickel and other metal prices, operator's estimates of proven and probable reserves related to our royalty interests, and operator's estimates of operating, capital and reclamation costs are subject to certain risks and uncertainties which may affect the recoverability of our investment in these royalty interests in mineral properties. Although we have made our best assessment of these factors based on current conditions, it is possible that changes could occur, which could adversely affect the net cash flows expected to be generated from these royalty interests.

Revenue

        Revenue is recognized in accordance with the guidance of ASC 605 and based upon amounts contractually due pursuant to the underlying royalty or stream agreement. Specifically, revenue is recognized in accordance with the terms of the underlying royalty or stream agreements subject to (i) the pervasive evidence of the existence of the arrangements; (ii) the risks and rewards having been transferred; (iii) the royalty or stream being fixed or determinable; and (iv) the collectability being reasonably assured. For royalty payments received in-kind, revenue is recorded at the average spot price of gold for the period in which the royalty was earned. For our streaming agreements, we sell most of the delivered gold within three weeks of receipt and recognize revenue when the metal received is sold.

Gold Sales

        Gold received under our metal streaming agreements is sold primarily in the spot market or under average rate gold forward contracts. For our gold sold in the spot market, the sales price is fixed at the delivery date based on the gold spot price, while the sales price for our gold sold under average rate gold forward contracts is determined by the average gold price under the term of the contract, typically 15 consecutive trading days shortly after the receipt and purchase of the gold. Revenue from gold sales is recognized on the date of the settlement, which is also the date that title to the gold passes to the purchaser.

Cost of Sales

        Cost of sales is specific to our streaming agreement for Mt. Milligan and is the result of the Company's purchases of gold for a cash payment of the lesser of $435 per ounce, or the prevailing market price of gold when purchased.

Production taxes

        Certain royalty payments are subject to production taxes (or mining proceeds taxes), which are recognized at the time of revenue recognition. Production taxes are not income taxes and are included within the costs and expenses section in the Company's consolidated statements of operations and comprehensive income.

Stock-Based Compensation

        The Company accounts for stock-based compensation in accordance with the guidance of ASC 718. The Company recognizes all share-based payments to employees, including grants of employee stock options, stock-settled stock appreciation rights ("SSARs"), restricted stock and performance stock, in its financial statements based upon their fair values.

Operating Segments and Geographical Information

        The Company manages its business under a single operating segment, consisting of the acquisition and management of royalty and stream interests. Royal Gold's revenue and long-lived assets (royalty and stream interests, net) are geographically distributed as shown in the following table.

 
  Revenue   Royalty and Stream
Interests, net
 
 
  Fiscal Year Ended
June 30,
  Fiscal Year Ended
June 30,
 
 
  2014   2013   2012   2014   2013   2012  

Canada

    34 %   24 %   24 %   53 %   52 %   43 %

Chile

    21 %   29 %   25 %   31 %   30 %   35 %

Mexico

    18 %   19 %   20 %   7 %   7 %   9 %

United States

    15 %   17 %   18 %   3 %   4 %   5 %

Australia

    4 %   4 %   5 %   3 %   3 %   3 %

Africa

    3 %   3 %   4 %   1 %   1 %   1 %

Other

    5 %   4 %   4 %   2 %   3 %   4 %

Income Taxes

        The Company accounts for income taxes in accordance with the guidance of Accounting Standards Codification Topic 740. The Company's annual tax rate is based on income, statutory tax rates in effect and tax planning opportunities available to us in the various jurisdictions in which the Company operates. Significant judgment is required in determining the annual tax expense, current tax assets and liabilities, deferred tax assets and liabilities, and our future taxable income, both as a whole and in various tax jurisdictions, for purposes of assessing our ability to realize future benefit from our deferred tax assets. Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year's liability by taxing authorities.

        The Company's deferred income taxes reflect the impact of temporary differences between the reported amounts of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations. In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies in each tax jurisdiction. A valuation allowance may be established to reduce our deferred tax assets to the amount that is considered more likely than not to be realized through the generation of future taxable income and other tax planning strategies.

        The Company has asserted the indefinite reinvestment of certain foreign subsidiary earnings as determined by management's judgment about and intentions concerning the future operations of the Company. As a result, the Company does not record a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in foreign corporations to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. Refer to Note 12 for further discussion on our assertion.

        The Company's operations may involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress of a tax audit; however, due to the complexity of some of these uncertainties, the ultimate resolution could result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period which they are determined. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Comprehensive Income

        In addition to net income, comprehensive income includes changes in equity during a period associated with cumulative unrealized changes in the fair value of marketable securities held for sale, net of tax effects.

Earnings per Share

        Basic earnings per share is computed by dividing net income available to Royal Gold common stockholders by the weighted average number of outstanding common shares for the period, considering the effect of participating securities, and include the outstanding exchangeable shares. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts that may require issuance of common shares were converted. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted average number of common shares outstanding, including outstanding exchangeable shares, during each fiscal year.

Reclassification

        Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Tables)
Geographic distribution of revenue and long-lived assets (royalty and stream interests, net)

 

 
  Revenue   Royalty and Stream
Interests, net
 
 
  Fiscal Year Ended
June 30,
  Fiscal Year Ended
June 30,
 
 
  2014   2013   2012   2014   2013   2012  

Canada

    34 %   24 %   24 %   53 %   52 %   43 %

Chile

    21 %   29 %   25 %   31 %   30 %   35 %

Mexico

    18 %   19 %   20 %   7 %   7 %   9 %

United States

    15 %   17 %   18 %   3 %   4 %   5 %

Australia

    4 %   4 %   5 %   3 %   3 %   3 %

Africa

    3 %   3 %   4 %   1 %   1 %   1 %

Other

    5 %   4 %   4 %   2 %   3 %   4 %
ROYALTY AND STREAM INTERESTS, NET (Tables)
Schedule of royalty and stream interests

 

As of June 30, 2014
(Amounts in thousands):
  Cost   Accumulated
Depletion
  Net  

Production stage royalty interests:

                   

Andacollo

  $ 272,998   $ (56,147 ) $ 216,851  

Voisey's Bay

    150,138     (67,377 )   82,761  

Peñasquito

    99,172     (17,801 )   81,371  

LasCruces

    57,230     (16,917 )   40,313  

Dolores

    55,820     (11,109 )   44,711  

Mulatos

    48,092     (28,548 )   19,544  

Wolverine

    45,158     (12,689 )   32,469  

Canadian Malartic

    38,800     (10,038 )   28,762  

Holt

    34,612     (10,474 )   24,138  

Gwalia Deeps

    31,070     (10,549 )   20,521  

Inata

    24,871     (12,161 )   12,710  

Ruby Hill

    24,335     (13,403 )   10,932  

Leeville

    18,322     (15,917 )   2,405  

Robinson

    17,825     (11,887 )   5,938  

Cortez

    10,630     (9,772 )   858  

Other

    192,703     (130,130 )   62,573  
               

 

    1,121,776     (434,919 )   686,857  

Production stage stream interests:

   
 
   
 
   
 
 

Mt. Milligan

    783,046     (7,741 )   775,305  
               

Production stage royalty and stream interests

    1,904,822     (442,660 )   1,462,162  

Development stage royalty interests:

   
 
   
 
   
 
 

Pascua-Lama

    372,105         372,105  

El Morro

    35,139         35,139  

Other

    34,349         34,349  

Development stage stream interests:

   
 
   
 
   
 
 

Phoenix Gold

    30,620         30,620  

Other

    10,483         10,483  
               

Development stage royalty and stream interests

    482,696         482,696  

Exploration stage royalty interests

   
164,209
   
   
164,209
 
               

Total royalty and stream interests

  $ 2,551,727   $ (442,660 ) $ 2,109,067  
               
               


 

As of June 30, 2013
(Amounts in thousands):
  Cost   Accumulated
Depletion
  Net  

Production stage royalty interests:

                   

Andacollo

  $ 272,998   $ (44,317 ) $ 228,681  

Voisey's Bay

    150,138     (51,881 )   98,257  

Peñasquito

    99,172     (12,393 )   86,779  

Las Cruces

    57,230     (11,713 )   45,517  

Mulatos

    48,092     (24,545 )   23,547  

Wolverine

    45,158     (7,891 )   37,267  

Dolores

    44,878     (8,186 )   36,692  

Canadian Malartic

    38,800     (6,320 )   32,480  

Holt

    34,612     (6,564 )   28,048  

Gwalia Deeps

    31,070     (7,194 )   23,876  

Inata

    24,871     (9,303 )   15,568  

Ruby Hill

    24,335     (3,054 )   21,281  

Leeville

    18,322     (15,484 )   2,838  

Robinson

    17,825     (11,224 )   6,601  

Cortez

    10,630     (9,716 )   914  

Other

    190,702     (121,654 )   69,048  
               

 

    1,108,833     (351,439 )   757,394  

Development stage royalty interests:

   
 
   
 
   
 
 

Pascua-Lama

    372,105         372,105  

Other

    32,934         32,934  

Development stage stream interests:

   
 
   
 
   
 
 

Mt. Milligan

    770,093         770,093  

Other

    10,418         10,418  
               

Development stage royalty and stream interests

    1,185,550         1,185,550  

Exploration stage royalty interests

   
177,324
   
   
177,324
 
               

Total royalty and stream interests

  $ 2,471,707   $ (351,439 ) $ 2,120,268  
               
               
AVAILABLE-FOR-SALE SECURITIES (Tables)
Schedule of available-for-sale securities

 

 
  As of June 30, 2014  
 
   
  (Amounts
in thousands)
Unrealized
   
 
 
  Cost Basis   Gain   Loss   Fair Value  

Non-current:

                         

Seabridge

  $ 9,565           $ 9,565  

Other

    203         (160 )   43  
                   

 

  $ 9,768   $   $ (160 ) $ 9,608  
                   
                   


 

 
  As of June 30, 2013  
 
   
  (Amounts
in thousands)
Unrealized
   
 
 
  Cost Basis   Gain   Loss   Fair Value  

Non-current:

                         

Seabridge

  $ 14,064         (4,509 ) $ 9,555  

Other

    203         (63 )   140  
                   

 

  $ 14,267   $   $ (4,572 ) $ 9,695  
                   
                   
DEBT (Tables)
Schedule of debt

 

 
  As of
June 30, 2014
  As of
June 30, 2013
 
 
  Non-current   Non-current  
 
  (Amounts in thousands)
 

Convertible notes due 2019, net

  $ 311,860   $ 302,263  
           

Total debt

  $ 311,860   $ 302,263  
           
           
REVENUE (Tables)
Schedule of revenue

 

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Royalty interests

  $ 209,953   $ 289,224   $ 263,054  

Stream interests

    27,209          
               

Total revenue

  $ 237,162   $ 289,224   $ 263,054  
               
               
STOCK-BASED COMPENSATION (Tables)

 

 
  For the Fiscal
Years Ended June 30,
 
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Stock options

  $ 468   $ 456   $ 446  

Stock appreciation rights

    1,305     1,107     1,219  

Restricted stock

    3,110     3,240     2,757  

Performance stock

    (2,303 )   898     2,085  
               

Total stock-based compensation expense

  $ 2,580   $ 5,701   $ 6,507  
               
               

 

 
  Stock Options   SSARs  
 
  2014   2013   2012   2014   2013   2012  

Weighted-average expected volatility

    43.6 %   43.1 %   45.1 %   41.3 %   43.7 %   45.3 %

Weighted-average expected life in years

    5.5     5.5     5.7     4.8     6.4     6.1  

Weighted-average dividend yield

    1.00 %   0.86 %   0.76 %   1.00 %   0.90 %   0.76 %

Weighted-average risk free interest rate

    1.7 %   0.8 %   1.1 %   1.5 %   1.0 %   1.2 %

 

 
  Number
of Shares
  Weighted-
Average
Exercise
Price
  Weighted-
Average
Remaining
Contractual
Life (Years)
  Aggregate
Intrinsic Value
(in thousands)
 

Outstanding at July 1, 2013

    119,313   $ 46.12              

Granted

    24,775   $ 59.99              

Exercised

    (34,495 ) $ 32.48              

Forfeited

    (8,200 ) $ 68.11              
                       

Outstanding at June 30, 2014

    101,393   $ 52.37     6.4   $ 2,410  
                   
                   

Exercisable at June 30, 2014

    63,531   $ 45.16     5.1   $ 1,967  
                   
                   

 

 
  Number
of Shares
  Weighted-
Average
Exercise
Price
  Weighted-
Average
Remaining
Contractual
Life (Years)
  Aggregate
Intrinsic Value
(in thousands)
 

Outstanding at July 1, 2013

    162,284   $ 58.28              

Granted

    84,125   $ 62.13              

Exercised

    (1,614 ) $ 32.52              

Forfeited

    (15,739 ) $ 61.28              
                       

Outstanding at June 30, 2014

    229,056   $ 59.67     7.5   $ 3,770  
                   
                   

Exercisable at June 30, 2014

    108,586   $ 53.42     6.1   $ 2,466  
                   
                   

 

 
  Number
of Shares
  Weighted-
Average
Grant Date
Fair Value
 

Non-vested at July 1, 2013

    107,850   $ 66.20  

Granted

    71,700   $ 61.39  

Vested

      $  

Forfeited

      $  
           

Non-vested at June 30, 2014

    179,550   $ 64.28  
           
           

 

 
  Number
of Shares
  Weighted-
Average
Grant Date
Fair Value
 

Non-vested at July 1, 2013

    194,706   $ 52.15  

Granted

    66,150   $ 61.32  

Vested

    (71,707 ) $ 44.95  

Forfeited

    (12,058 ) $ 58.63  
           

Non-vested at June 30, 2014

    177,091   $ 58.06  
           
           
EARNINGS PER SHARE ("EPS") (Tables)
Summary of the effects of dilutive securities on diluted EPS

 

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (in thousands, except per share data)
 

Net income available to Royal Gold common stockholders

  $ 62,641   $ 69,153   $ 92,476  
               

Weighted-average shares for basic EPS

    64,909,149     63,250,247     57,220,040  

Effect of other dilutive securities

    117,107     179,575     243,810  
               

Weighted-average shares for diluted EPS

    65,026,256     63,429,822     57,463,850  
               
               

Basic earnings per share

  $ 0.96   $ 1.09   $ 1.61  
               
               

Diluted earnings per share

  $ 0.96   $ 1.09   $ 1.61  
               
               
INCOME TAXES (Tables)

 

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

United States

  $ 17,033   $ 65,851   $ 110,189  

Foreign

    65,894     71,317     42,830  
               

 

  $ 82,927   $ 137,168   $ 153,019  
               
               

 

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Current:

                   

Federal

  $ (3,663 ) $ 30,061   $ 35,556  

State

    334     368     310  

Foreign

    30,950     44,749     17,273  
               

 

  $ 27,621   $ 75,178   $ 53,139  
               
               

Deferred and others:

                   

Federal

  $ (4,122 ) $ (4,341 ) $ 77  

State

    (26 )   (27 )    

Foreign

    (4,018 )   (7,051 )   1,494  
               

 

  $ (8,166 ) $ (11,419 ) $ 1,571  
               

Total income tax expense

  $ 19,455   $ 63,759   $ 54,710  
               
               

 

 
  Fiscal Years Ended June 30,  
 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Total expense computed by applying federal rates

  $ 29,024   $ 48,009   $ 53,557  

State and provincial income taxes, net of federal benefit

    334     368     310  

Adjustments of valuation allowance

            (1,007 )

Excess depletion

    (1,114 )   (1,395 )   (1,416 )

Estimates for uncertain tax positions

    (7,386 )   1,868     551  

Statutory tax attributable to non-controlling interest

    (293 )   (1,236 )   (2,042 )

Effect of foreign earnings

    1,141     4,223     511  

Effect of foreign earnings indefinitely reinvested

    (1,700 )        

Effect of recognized loss on available-for-sale securities

    562     4,239      

Unrealized foreign exchange gains

    (367 )   1,146     (546 )

Changes in estimates and corrected errors of prior year tax

    (594 )   4,979     1,075  

Other

    (152 )   1,558     3,717  
               

 

  $ 19,455   $ 63,759   $ 54,710  
               
               

 

 
  2014   2013  
 
  (Amounts in thousands)
 

Deferred tax assets:

             

Stock-based compensation

  $ 3,511   $ 3,853  

Net operating losses

    19,322     25,943  

Other

    7,068     4,460  
           

Total deferred tax assets

    29,901     34,256  

Valuation allowance

    (4,933 )   (4,606 )
           

Net deferred tax assets

  $ 24,968   $ 29,650  
           

Deferred tax liabilities:

             

Mineral property basis

  $ (158,301 ) $ (165,936 )

Unrealized foreign exchange gains

    (3,072 )   (3,684 )

2019 Notes

    (20,002 )   (23,281 )

Other

    (2,239 )   (3,561 )
           

Total deferred tax liabilities

    (183,614 )   (196,462 )
           

Total net deferred taxes

  $ (158,646 ) $ (166,812 )
           
           

 

 
  2014   2013   2012  
 
  (Amounts in
thousands)

   
 

Total gross unrecognized tax benefits at beginning of year

  $ 21,166   $ 19,469   $ 18,836  

Additions / Reductions for tax positions of current year

    (1,052 )   2,638     2,051  

Reductions due to settlements with taxing authorities

    (296 )   (941 )    

Reductions due to lapse of statute of limitations

    (6,093 )       (1,418 )
               

Total amount of gross unrecognized tax benefits at end of year

  $ 13,725   $ 21,166   $ 19,469  
               
               
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
Schedule of supplemental cash flow information

 

 
  2014   2013   2012  
 
  (Amounts in thousands)
 

Cash paid during the period for:

                   

Interest

  $ 10,638   $ 10,490   $ 4,590  

Income taxes, net of refunds

  $ 27,322   $ 48,809   $ 58,520  

Non-cash investing and financing activities:

                   

Dividends declared

  $ 54,049   $ 47,997   $ 32,357  
FAIR VALUE MEASUREMENTS (Tables)
Schedule of financial assets measured at fair value on recurring basis

 

 
  At June 30, 2014  
 
   
  Fair Value  
 
  Carrying
Amount
 
 
  Total   Level 1   Level 2   Level 3  

Assets (In thousands):

                               

United States treasury bills(1)

  $ 499,992   $ 499,992   $ 499,992   $   $  

Marketable equity securities(2)

  $ 9,608   $ 9,608   $ 9,608   $   $  
                       

Total assets

        $ 509,600   $ 509,600   $   $  
                         
                         

Liabilities (In thousands):

                               

Debt(3)

  $ 388,860   $ 394,050   $ 394,050   $   $  
                       

Total liabilities

        $ 394,050   $ 394,050   $   $  
                         
                         

(1)
Included in Cash and equivalents in the Company's consolidated balance sheets.

(2)
Included in Available for sale securities in the Company's consolidated balance sheets.

(3)
Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within Additional paid-in capital in the Company's consolidated balance sheets.
MAJOR SOURCES OF REVENUE (Tables)
Schedule of major sources of revenue

  Operators that contributed greater than 10% of the Company's total revenue for any of fiscal years 2014, 2013 or 2012 were as follows (revenue amounts in thousands):

 
  Fiscal Year 2014   Fiscal Year 2013   Fiscal Year 2012  
Operator
  Revenue   Percentage
of total
revenue
  Revenue   Percentage
of total
revenue
  Revenue   Percentage
of total
revenue
 

Teck

  $ 48,777     20.6 % $ 82,272     28.4 % $ 64,075     24.4 %

Goldcorp, Inc. 

    32,339     13.6 %   32,461     11.2 %   31,407     11.9 %

Thompson Creek

    27,209     11.5 %   N/A     N/A     N/A     N/A  

Vale Newfoundland & Labrador Limited

    25,128     10.6 %   32,517     11.2 %   36,030     13.7 %
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables)
Summary of selected quarterly financial information (unaudited)

 

 
  Revenue   Operating
income
  Net income
attributable to
Royal Gold
stockholders
  Basic
earnings
per share
  Diluted
earnings
per share
 
 
  (Amounts in thousands except per share data)
 

Fiscal year 2014 quarter-ended:

                               

September 30

  $ 56,487   $ 25,738   $ 15,195   $ 0.23   $ 0.23  

December 31

    52,785     22,916     10,667     0.16     0.16  

March 31

    57,748     28,614     20,143     0.31     0.31  

June 30

    70,142     31,452     16,636     0.26     0.26  
                       

 

  $ 237,162   $ 108,720   $ 62,641   $ 0.96   $ 0.96  
                       
                       

Fiscal year 2013 quarter-ended:

                               

September 30

  $ 77,862   $ 47,646   $ 24,771   $ 0.42   $ 0.41  

December 31

    79,870     50,665     27,217     0.42     0.42  

March 31

    74,166     42,932     6,464     0.10     0.10  

June 30

    57,326     29,924     10,701     0.16     0.16  
                       

 

  $ 289,224   $ 171,167   $ 69,153   $ 1.09   $ 1.09  
                       
                       
THE COMPANY (Details)
12 Months Ended
Jun. 30, 2014
item
THE COMPANY
 
Minimum number of metals produced from a mine of which right to purchase all or a portion available in exchange for upfront deposit
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details)
12 Months Ended
Jun. 30, 2014
Revenue
 
Length of time to recognize streaming revenue
21 days 
Gold forward contracts
 
Gold Sales
 
Term of the contract
15 days 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details 2)
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 
 
 
Cash payment for each ounce of gold (in dollars per ounce)
435 
 
 
Canada
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
34.00% 
24.00% 
24.00% 
Royalty and stream interests, net (as a percent)
53.00% 
52.00% 
43.00% 
Chile
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
21.00% 
29.00% 
25.00% 
Royalty and stream interests, net (as a percent)
31.00% 
30.00% 
35.00% 
Mexico
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
18.00% 
19.00% 
20.00% 
Royalty and stream interests, net (as a percent)
7.00% 
7.00% 
9.00% 
United States
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
15.00% 
17.00% 
18.00% 
Royalty and stream interests, net (as a percent)
3.00% 
4.00% 
5.00% 
Australia
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
4.00% 
4.00% 
5.00% 
Royalty and stream interests, net (as a percent)
3.00% 
3.00% 
3.00% 
Africa
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
3.00% 
3.00% 
4.00% 
Royalty and stream interests, net (as a percent)
1.00% 
1.00% 
1.00% 
Other
 
 
 
Geographic distribution of royalty revenue and long-lived assets (royalty and stream interests, net)
 
 
 
Revenue (as a percent)
5.00% 
4.00% 
4.00% 
Royalty and stream interests, net (as a percent)
2.00% 
3.00% 
4.00% 
ACQUISITIONS (Details)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended
Jun. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Jan. 2, 2014
DMFC
CVP
USD ($)
Jun. 30, 2013
Seabridge
Jun. 16, 2011
Seabridge
Initial Shares
USD ($)
Jun. 16, 2011
Seabridge
Initial Shares
CAD ($)
Oct. 28, 2011
Seabridge
Initial Royalty
CAD ($)
item
Jun. 16, 2011
Seabridge
Initial Royalty
Dec. 13, 2012
Seabridge
Additional Shares
USD ($)
Dec. 13, 2012
Seabridge
Additional Shares
CAD ($)
Jun. 30, 2013
Seabridge
Additional Shares
USD ($)
Jun. 16, 2011
Seabridge
Additional Shares
CAD ($)
Dec. 13, 2012
Seabridge
NSR Royalty Option 1
CAD ($)
Dec. 13, 2012
Seabridge
NSR Royalty Option 2
CAD ($)
Dec. 13, 2012
Seabridge
Increased Royalty
CAD ($)
item
Jun. 16, 2011
Seabridge
Increased Royalty
Jun. 30, 2014
Phoenix Gold Project
USD ($)
Mar. 20, 2014
Phoenix Gold Project
RGLD Gold
USD ($)
Feb. 11, 2014
Phoenix Gold Project
RGLD Gold
USD ($)
item
oz
Jun. 30, 2014
Phoenix Gold Project
RGLD Gold
USD ($)
Jan. 7, 2014
Goldrush
USD ($)
item
mi
Aug. 31, 2013
El Morro
Goldcorp Inc.
Aug. 31, 2013
El Morro
Chilean subsidiary
USD ($)
Aug. 31, 2013
El Morro
New Gold Inc.
Jan. 2, 2014
Cortez
CVP
Jan. 2, 2014
Cortez, excluding the Crossroad Claims
DMFC
CVP
Dec. 31, 2013
Cortez, excluding the Crossroad Claims
DMFC
CVP
Jan. 2, 2014
Crossroad Claims at Cortez
DMFC
CVP
Dec. 31, 2013
Crossroad Claims at Cortez
DMFC
CVP
Dec. 19, 2011
Milligan II Acquisition
USD ($)
Dec. 14, 2011
Milligan II Acquisition
USD ($)
item
Dec. 14, 2012
Milligan II Acquisition
Dec. 14, 2011
Milligan II Acquisition
Thompson Creek
item
Aug. 8, 2012
Milligan III Acquisition
USD ($)
Aug. 8, 2012
Mt. Milligan
USD ($)
Jul. 31, 2012
Mt. Milligan
USD ($)
Sep. 30, 2013
Mt. Milligan
USD ($)
Jun. 30, 2014
Mt. Milligan
USD ($)
Acquisition of Royalty Interest in Mineral Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total purchase amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 75,000,000 
 
$ 8,000,000 
 
$ 35,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total purchase amount
11,522,000 
 
 
11,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
270,000,000 
 
 
200,000,000 
781,500,000 
581,500,000 
 
 
Number of installments the purchase price of refined gold is payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installments paid in conjunction with executive definitive documents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment payable in conjunction with executive definitive documents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of produced gold to be purchased until 135,000 ounces have been delivered
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.30% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum quantity of gold with specified purchase price (in ounces)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
135,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of produced payable gold to be purchased after 135,000 ounces have been delivered
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.15% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price per ounce of gold as percentage of spot price at the time of delivery
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of senior debt prior to purchase price per ounce of gold of is reduced
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Factor to determine purchase price per ounce of gold at the time of delivery if senior secured debt exceeds stated level
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.40% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator to determine purchase price per ounce of gold at the time of delivery if senior secured debt exceeds stated level
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment of aggregate pre-production commitment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,900,000 
781,500,000 
Royalty interests in Mineral Property, net (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
70.00% 
2.00% 
30.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisition of royalty interests
80,019,000 
314,262,000 
276,683,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
112,000,000 
 
 
 
75,000,000 
 
 
 
 
Remaining consideration payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,000,000 
 
 
 
7,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distance of mining property from Cortez mine
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of royalty interests acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
70.00% 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
 
Percentage of royalty interests acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
1.014% 
0.39% 
0.618% 
 
 
 
 
 
 
 
 
 
 
Number of subsidiaries entering into the agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of payable ounces of gold purchased
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.00% 
 
12.25% 
52.25% 
 
 
 
Cash payment for each payable ounce of gold (in dollars per ounce)
435 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
435 
 
 
 
Payment made for common shares acquired
 
 
 
 
 
30,700,000 
30,000,000 
 
 
18,300,000 
18,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment made for common shares acquired (in dollars per share)
 
 
 
 
 
$ 30.14 
$ 29.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of royalty that can be acquired
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
1.25% 
2.00% 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agreement for acquisition of common shares
 
 
 
 
 
 
 
 
 
 
 
 
18,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares acquired in a private placement
 
 
 
 
 
1,019,000 
1,019,000 
 
 
1,004,491 
1,004,491 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium on share price as a percentage of the volume weighted average trading price of common shares
 
 
 
 
 
15.00% 
15.00% 
 
 
15.00% 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading period used to calculate premium on share price
 
 
 
 
 
5 days 
5 days 
 
 
5 days 
5 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Holding period of shares as a condition to acquire additional shares
 
 
 
 
 
 
 
270 days 
 
270 days 
270 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price of royalty
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
100,000,000 
160,000,000 
60,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of installments in which the purchase price of royalty is payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Installment period in which the purchase price of royalty is payable
 
 
 
 
 
 
 
540 days 
 
 
 
 
 
 
 
540 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of shares in private transaction
 
 
 
 
 
 
 
 
 
14,600,000 
14,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable period to acquire the Initial Royalty and the Increased Royalty
 
 
 
 
60 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized loss on trading securities
 
 
 
 
 
 
 
 
 
 
 
$ 1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROYALTY AND STREAM INTERESTS, NET (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Jun. 30, 2013
Royalty and stream interests, net
 
 
Cost
$ 2,551,727 
$ 2,471,707 
Accumulated Depletion
(442,660)
(351,439)
Net
2,109,067 
2,120,268 
Production stage royalty interests
 
 
Royalty and stream interests, net
 
 
Cost
1,121,776 
1,108,833 
Accumulated Depletion
(434,919)
(351,439)
Net
686,857 
757,394 
Production stage royalty interests |
Andacollo
 
 
Royalty and stream interests, net
 
 
Cost
272,998 
272,998 
Accumulated Depletion
(56,147)
(44,317)
Net
216,851 
228,681 
Production stage royalty interests |
Voisey's Bay
 
 
Royalty and stream interests, net
 
 
Cost
150,138 
150,138 
Accumulated Depletion
(67,377)
(51,881)
Net
82,761 
98,257 
Production stage royalty interests |
Penasquito
 
 
Royalty and stream interests, net
 
 
Cost
99,172 
99,172 
Accumulated Depletion
(17,801)
(12,393)
Net
81,371 
86,779 
Production stage royalty interests |
Las Cruces
 
 
Royalty and stream interests, net
 
 
Cost
57,230 
57,230 
Accumulated Depletion
(16,917)
(11,713)
Net
40,313 
45,517 
Production stage royalty interests |
Dolores
 
 
Royalty and stream interests, net
 
 
Cost
55,820 
44,878 
Accumulated Depletion
(11,109)
(8,186)
Net
44,711 
36,692 
Production stage royalty interests |
Mulatos
 
 
Royalty and stream interests, net
 
 
Cost
48,092 
48,092 
Accumulated Depletion
(28,548)
(24,545)
Net
19,544 
23,547 
Production stage royalty interests |
Wolverine
 
 
Royalty and stream interests, net
 
 
Cost
45,158 
45,158 
Accumulated Depletion
(12,689)
(7,891)
Net
32,469 
37,267 
Production stage royalty interests |
Canadian Malartic
 
 
Royalty and stream interests, net
 
 
Cost
38,800 
38,800 
Accumulated Depletion
(10,038)
(6,320)
Net
28,762 
32,480 
Production stage royalty interests |
Holt
 
 
Royalty and stream interests, net
 
 
Cost
34,612 
34,612 
Accumulated Depletion
(10,474)
(6,564)
Net
24,138 
28,048 
Production stage royalty interests |
Gwalia Deeps
 
 
Royalty and stream interests, net
 
 
Cost
31,070 
31,070 
Accumulated Depletion
(10,549)
(7,194)
Net
20,521 
23,876 
Production stage royalty interests |
Inata
 
 
Royalty and stream interests, net
 
 
Cost
24,871 
24,871 
Accumulated Depletion
(12,161)
(9,303)
Net
12,710 
15,568 
Production stage royalty interests |
Ruby Hill
 
 
Royalty and stream interests, net
 
 
Cost
24,335 
24,335 
Accumulated Depletion
(13,403)
(3,054)
Net
10,932 
21,281 
Production stage royalty interests |
Leeville
 
 
Royalty and stream interests, net
 
 
Cost
18,322 
18,322 
Accumulated Depletion
(15,917)
(15,484)
Net
2,405 
2,838 
Production stage royalty interests |
Robinson
 
 
Royalty and stream interests, net
 
 
Cost
17,825 
17,825 
Accumulated Depletion
(11,887)
(11,224)
Net
5,938 
6,601 
Production stage royalty interests |
Cortez
 
 
Royalty and stream interests, net
 
 
Cost
10,630 
10,630 
Accumulated Depletion
(9,772)
(9,716)
Net
858 
914 
Production stage royalty interests |
Other
 
 
Royalty and stream interests, net
 
 
Cost
192,703 
190,702 
Accumulated Depletion
(130,130)
(121,654)
Net
62,573 
69,048 
Production stage stream interests |
Mt. Milligan
 
 
Royalty and stream interests, net
 
 
Cost
783,046 
 
Accumulated Depletion
(7,741)
 
Net
775,305 
 
Production stage royalty and stream interests
 
 
Royalty and stream interests, net
 
 
Cost
1,904,822 
 
Accumulated Depletion
(442,660)
 
Net
1,462,162 
 
Development stage royalty interests |
Pascua-Lama
 
 
Royalty and stream interests, net
 
 
Cost
372,105 
372,105 
Net
372,105 
372,105 
Development stage royalty interests |
El Morro
 
 
Royalty and stream interests, net
 
 
Cost
35,139 
 
Net
35,139 
 
Development stage royalty interests |
Other
 
 
Royalty and stream interests, net
 
 
Cost
34,349 
32,934 
Net
34,349 
32,934 
Development stage stream interests |
Mt. Milligan
 
 
Royalty and stream interests, net
 
 
Cost
 
770,093 
Net
 
770,093 
Development stage stream interests |
Phoenix Gold Project
 
 
Royalty and stream interests, net
 
 
Cost
30,620 
 
Net
30,620 
 
Development stage stream interests |
Other
 
 
Royalty and stream interests, net
 
 
Cost
10,483 
10,418 
Net
10,483 
10,418 
Development stage royalty and stream interests
 
 
Royalty and stream interests, net
 
 
Cost
482,696 
1,185,550 
Net
482,696 
1,185,550 
Exploration stage royalty interests
 
 
Royalty and stream interests, net
 
 
Cost
164,209 
177,324 
Net
$ 164,209 
$ 177,324 
AVAILABLE-FOR-SALE SECURITIES (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended
Jun. 30, 2014
Jun. 30, 2014
Jun. 30, 2013
Mar. 31, 2013
Seabridge
Jun. 30, 2014
Seabridge
Jun. 30, 2013
Seabridge
Jun. 30, 2014
Other
Jun. 30, 2013
Other
Available-for-sale securities
 
 
 
 
 
 
 
 
Cost Basis
$ 9,768 
$ 9,768 
$ 14,267 
 
$ 9,565 
$ 14,064 
$ 203 
$ 203 
Unrealized Loss
(160)
(160)
(4,572)
 
 
(4,509)
(160)
(63)
Fair Value
9,608 
9,608 
9,695 
 
9,565 
9,555 
43 
140 
Loss on available-for-sale securities due to impairment
$ 4,500 
$ 4,499 
$ 12,121 
$ 12,100 
 
 
 
 
DEBT (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2014
Convertible notes due 2019, net
Jun. 30, 2013
Convertible notes due 2019, net
Jun. 30, 2012
Convertible notes due 2019, net
Jan. 29, 2014
Revolving credit facility
Dec. 31, 2013
Revolving credit facility
Jun. 30, 2014
Revolving credit facility
Jun. 30, 2014
Revolving credit facility
Minimum
Jun. 30, 2014
Revolving credit facility
Maximum
Long-term debt disclosure
 
 
 
 
 
 
 
 
 
 
 
Total debt, non-current
$ 311,860,000 
$ 302,263,000 
 
$ 311,860,000 
$ 302,263,000 
 
 
 
 
 
 
Aggregate principal amount of convertible senior notes issued
 
 
 
 
 
370,000,000 
 
 
 
 
 
Interest rate on convertible senior notes (as a percent)
 
 
 
2.875% 
 
 
 
 
 
 
 
Interest expense recognized
 
 
 
21,400,000 
20,700,000 
 
 
 
 
 
 
Interest payments on notes
10,638,000 
10,490,000 
4,590,000 
10,600,000 
10,500,000 
 
 
 
 
 
 
Maximum availability under the revolving credit facility
 
 
 
 
 
 
450,000,000 
350,000,000 
450,000,000 
 
 
Amount of accordion feature
 
 
 
 
 
 
150,000,000 
50,000,000 
 
 
 
Maximum availability under the revolving credit facility including accordion
 
 
 
 
 
 
600,000,000 
 
 
 
 
Commitment fee (as a percent)
 
 
 
 
 
 
0.25% 
0.375% 
 
 
 
Revolving credit facility, description of interest rate basis
 
 
 
 
 
 
LIBOR 
LIBOR 
LIBOR 
LIBOR 
LIBOR 
Revolving credit facility, basis spread on interest rate (as a percent)
 
 
 
 
 
 
1.25% 
1.75% 
1.25% 
1.25% 
3.00% 
Leverage ratio, maximum
 
 
 
 
 
 
3.5 
 
 
 
 
Maximum leverage ratio for two quarters following the completion of a material permitted acquisition
 
 
 
 
 
 
4.0 
 
 
 
 
Outstanding amount under credit facility
 
 
 
 
 
 
 
 
$ 0 
 
 
REVENUE (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
REVENUE
 
 
 
 
 
 
 
 
 
 
 
Royalty interests
 
 
 
 
 
 
 
 
$ 209,953 
$ 289,224 
$ 263,054 
Stream interests
 
 
 
 
 
 
 
 
27,209 
 
 
Total revenue
$ 70,142 
$ 57,748 
$ 52,785 
$ 56,487 
$ 57,326 
$ 74,166 
$ 79,870 
$ 77,862 
$ 237,162 
$ 289,224 
$ 263,054 
STOCK-BASED COMPENSATION (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Nov. 30, 2004
STOCK-BASED COMPENSATION
 
 
 
 
Common stock authorized for future grants to officers, directors, key employees and other persons (in shares)
 
 
 
2,600,000 
Stock-based compensation expense
 
 
 
 
Stock-based compensation expense
$ 2,580 
$ 5,701 
$ 6,507 
 
Stock Options
 
 
 
 
Stock-based compensation expense
 
 
 
 
Stock-based compensation expense
468 
456 
446 
 
Stock Appreciation Rights
 
 
 
 
Stock-based compensation expense
 
 
 
 
Stock-based compensation expense
1,305 
1,107 
1,219 
 
Restricted Stock
 
 
 
 
Stock-based compensation expense
 
 
 
 
Stock-based compensation expense
3,110 
3,240 
2,757 
 
Performance Stock
 
 
 
 
Stock-based compensation expense
 
 
 
 
Stock-based compensation expense
$ (2,303)
$ 898 
$ 2,085 
 
STOCK-BASED COMPENSATION (Details 2) (USD $)
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Stock options, number of shares
 
 
 
Exercised (in shares)
(34,495)
(65,341)
 
Stock Options
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Contractual term of awards
10 years 
 
 
Key assumptions used in Black-Scholes model to determine the fair value of each stock option and SAR
 
 
 
Weighted-average expected volatility (as a percent)
43.60% 
43.10% 
45.10% 
Weighted-average expected life (in years)
5 years 6 months 
5 years 6 months 
5 years 8 months 12 days 
Weighted-average dividend yield (as a percent)
1.00% 
0.86% 
0.76% 
Weighted-average risk free interest rate (as a percent)
1.70% 
0.80% 
1.10% 
Stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
119,313 
 
 
Granted (in shares)
24,775 
 
 
Exercised (in shares)
(34,495)
 
 
Forfeited (in shares)
(8,200)
 
 
Outstanding at the end of the period (in shares)
101,393 
119,313 
 
Exercisable at the end of the period (in shares)
63,531 
 
 
Stock options, weighted-average exercise price
 
 
 
Outstanding at the beginning of the period (in dollars per share)
$ 46.12 
 
 
Granted (in dollars per share)
$ 59.99 
 
 
Exercised (in dollars per share)
$ 32.48 
 
 
Forfeited (in dollars per share)
$ 68.11 
 
 
Outstanding at the end of the period (in dollars per share)
$ 52.37 
$ 46.12 
 
Exercisable at the end of the period (in dollars per share)
$ 45.16 
 
 
Stock options, weighted-average remaining contractual life (in years)
 
 
 
Outstanding at the end of the period
6 years 4 months 24 days 
 
 
Exercisable at the end of the period
5 years 1 month 6 days 
 
 
Stock options, Aggregate Intrinsic Value
 
 
 
Outstanding at the end of the period
$ 2,410,000 
 
 
Exercisable at the end of the period
1,967,000 
 
 
Intrinsic value of options exercised
1,100,000 
4,100,000 
8,700,000 
Granted (in dollars per share)
$ 22.78 
$ 26.76 
$ 27.23 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
500,000 
 
 
Weighted-average vesting period
1 year 9 months 18 days 
 
 
Stock Options |
Minimum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
1 year 
 
 
Stock Options |
Maximum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
3 years 
 
 
Stock Appreciation Rights
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Contractual term of awards
10 years 
 
 
Key assumptions used in Black-Scholes model to determine the fair value of each stock option and SAR
 
 
 
Weighted-average expected volatility (as a percent)
41.30% 
43.70% 
45.30% 
Weighted-average expected life (in years)
4 years 9 months 18 days 
6 years 4 months 24 days 
6 years 1 month 6 days 
Weighted-average dividend yield (as a percent)
1.00% 
0.90% 
0.76% 
Weighted-average risk free interest rate (as a percent)
1.50% 
1.00% 
1.20% 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
1,600,000 
 
 
Weighted-average vesting period
1 year 9 months 18 days 
 
 
Other than stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
162,284 
 
 
Granted (in shares)
84,125 
 
 
Exercised (in shares)
(1,614)
 
 
Forfeited (in shares)
(15,739)
 
 
Outstanding at the end of the period (in shares)
229,056 
162,284 
 
Exercisable at the end of the period (in shares)
108,586 
 
 
Other than stock options, weighted-average exercise price
 
 
 
Non-vested at the beginning of the period (in dollars per share)
$ 58.28 
 
 
Granted (in dollars per share)
$ 62.13 
 
 
Exercised (in dollars per share)
$ 32.52 
 
 
Forfeited (in dollars per share)
$ 61.28 
 
 
Non-vested at the end of the period (in dollars per share)
$ 59.67 
$ 58.28 
 
Exercisable at the end of the period (in dollars per share)
$ 53.42 
 
 
Other than stock options, weighted-average remaining contractual life (in years)
 
 
 
Outstanding at the end of the period
7 years 6 months 
 
 
Exercisable at the end of the period
6 years 1 month 6 days 
 
 
Other than stock options, Aggregate Intrinsic Value
 
 
 
Outstanding at the end of the period
3,770,000 
 
 
Exercisable at the end of the period
2,466,000 
 
 
Total intrinsic value of SSARs exercised
100,000 
3,500,000 
Fair value granted (in dollars per share)
$ 21.15 
$ 29.78 
$ 28.04 
Stock Appreciation Rights |
Minimum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
1 year 
 
 
Stock Appreciation Rights |
Maximum
 
 
 
Stock Options and Stock Appreciation Rights
 
 
 
Continuous service period for awards to vest
3 years 
 
 
Performance Stock
 
 
 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
700,000 
 
 
Weighted-average vesting period
3 years 6 months 
 
 
Other than stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
107,850 
 
 
Granted (in shares)
71,700 
 
 
Outstanding at the end of the period (in shares)
179,550 
 
 
Other than stock options, weighted-average exercise price
 
 
 
Non-vested at the beginning of the period (in dollars per share)
$ 66.20 
 
 
Granted (in dollars per share)
$ 61.39 
 
 
Non-vested at the end of the period (in dollars per share)
$ 64.28 
 
 
Performance Shares
 
 
 
Period over which the multi-year performance goals must be achieved
5 years 
 
 
Percentage of interim earn out basis for vesting, one
25.00% 
 
 
Percentage of interim earn out basis for vesting, two
50.00% 
 
 
Percentage of interim earn out basis for vesting, three
75.00% 
 
 
Percentage of interim earn out basis for vesting, four
100.00% 
 
 
Trailing period for growth of free cash flow per share, a performance measure
12 months 
 
 
Restricted Stock
 
 
 
Unrecognized stock-based compensation expense
 
 
 
Unrecognized compensation expense
$ 5,300,000 
 
 
Weighted-average vesting period
3 years 2 months 12 days 
 
 
Other than stock options, number of shares
 
 
 
Outstanding at the beginning of the period (in shares)
194,706 
 
 
Granted (in shares)
66,150 
 
 
Vested (in shares)
(71,707)
 
 
Forfeited (in shares)
(12,058)
 
 
Outstanding at the end of the period (in shares)
177,091 
 
 
Other than stock options, weighted-average exercise price
 
 
 
Non-vested at the beginning of the period (in dollars per share)
$ 52.15 
 
 
Granted (in dollars per share)
$ 61.32 
 
 
Vested (in dollars per share)
$ 44.95 
 
 
Forfeited (in dollars per share)
$ 58.63 
 
 
Non-vested at the end of the period (in dollars per share)
$ 58.06 
 
 
Restricted Stock |
Officers and Certain Employees
 
 
 
Other than stock options, number of shares
 
 
 
Granted (in shares)
46,200 
 
 
Restricted Stock
 
 
 
Vesting period of awards granted to officers and certain employees
3 years 
 
 
Holding period of awards granted to officers and certain employees, as a vesting condition
2 years 
 
 
Fraction of the shares granted to officers and certain employees, vesting in year three
0.33 
 
 
Fraction of the shares granted to officers and certain employees, vesting in year four
0.33 
 
 
Fraction of the shares granted to officers and certain employees, vesting in year five
0.33 
 
 
Restricted Stock |
Non-executive Directors
 
 
 
Other than stock options, number of shares
 
 
 
Granted (in shares)
19,950 
 
 
Restricted Stock
 
 
 
Vesting period of awards granted to officers and certain employees
1 year 
 
 
Percentage of shares granted to non-executive directors, vesting immediately upon grant
50.00% 
 
 
Percentage of shares granted to non-executive directors, vesting one year after date of grant
50.00% 
 
 
STOCKHOLDERS' EQUITY (Details) (USD $)
0 Months Ended 12 Months Ended
Oct. 15, 2012
Jun. 30, 2014
item
Jun. 30, 2013
Jun. 30, 2012
Preferred Stock
 
 
 
 
Number of authorized and unissued shares (in shares)
 
10,000,000 
10,000,000 
 
Preferred stock, par value (in dollars per share)
 
$ 0.01 
$ 0.01 
 
Common Stock Offering
 
 
 
 
Number of stock options exercised (in shares)
 
34,495 
65,341 
 
Proceeds from stock options exercised
 
$ 1,100,000 
$ 1,900,000 
 
Shares sold
5,250,000 
 
 
 
Sale price per share (in dollars per share)
$ 90.00 
 
 
 
Proceeds from common stock issued
$ 472,500,000 
$ 1,120,000 
$ 473,771,000 
$ 271,536,000 
Exchange ratio for conversion of exchangeable shares of RG Exchangeco into shares of Royal Gold common stock
 
 
 
Stockholders' Rights Plan
 
 
 
 
Number of preferred stock purchase rights for each share of Company common stock held
 
 
 
Minimum percentage of company's outstanding shares of common stock accumulated by acquiring party for rights to become exercisable
 
15.00% 
 
 
Fraction of newly issued share of Series A junior participating preferred stock that could be purchased, for each Right
 
0.001 
 
 
Value of a share of the Company's common stock allowed to be purchased for each Right, as a multiple of the exercise price of the Right
 
 
 
Initial exercise price of the Right (in dollars per right)
 
$ 175 
 
 
RESTRUCTURING ON ROYALTY AND STREAM INTERESTS (Details) (USD $)
In Thousands, unless otherwise specified
1 Months Ended 12 Months Ended
Aug. 31, 2011
mi
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Restructuring on royalty interests in mineral properties
 
 
 
 
Impairment charges
 
 
 
$ (1,328)
Carrying value for royalty interest
 
2,109,067 
2,120,268 
 
Relief Canyon
 
 
 
 
Restructuring on royalty interests in mineral properties
 
 
 
 
Royalty rate before reduction pursuant to the Amended and Restated Net Smelter Return Royalty Agreement (as a percent)
4.00% 
 
 
 
Royalty rate pursuant to the Amended and Restated Net Smelter Return Royalty Agreement (as a percent)
2.00% 
 
 
 
Area of interest eliminated pursuant to the Amended and Restated Net Smelter Return Royalty Agreement (in miles)
10 
 
 
 
Impairment charges
 
1,300 
Carrying value for royalty interest
 
$ 1,200 
$ 1,200 
 
EARNINGS PER SHARE ("EPS") (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
EARNINGS PER SHARE ("EPS")
 
 
 
 
 
 
 
 
 
 
 
Net income available to Royal Gold common stockholders (in dollars)
$ 16,636 
$ 20,143 
$ 10,667 
$ 15,195 
$ 10,701 
$ 6,464 
$ 27,217 
$ 24,771 
$ 62,641 
$ 69,153 
$ 92,476 
Weighted-average shares for basic EPS
 
 
 
 
 
 
 
 
64,909,149 
63,250,247 
57,220,040 
Effect of other dilutive securities (in shares)
 
 
 
 
 
 
 
 
117,107 
179,575 
243,810 
Weighted-average shares for diluted EPS
 
 
 
 
 
 
 
 
65,026,256 
63,429,822 
57,463,850 
Basic earnings per share (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.16 
$ 0.23 
$ 0.16 
$ 0.10 
$ 0.42 
$ 0.42 
$ 0.96 
$ 1.09 
$ 1.61 
Diluted earnings per share (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.16 
$ 0.23 
$ 0.16 
$ 0.10 
$ 0.42 
$ 0.41 
$ 0.96 
$ 1.09 
$ 1.61 
Exchange ratio for conversion of exchangeable shares of RG Exchangeco into shares of Royal Gold common stock
 
 
 
 
 
 
 
 
 
 
Impact on diluted earnings per share (in dollars per share)
 
 
 
 
 
 
 
 
$ 0 
 
 
2019 Conversion Notes, Initial conversion price per share of common stock (in dollars per share)
$ 105 
 
 
 
 
 
 
 
$ 105 
 
 
INCOME TAXES (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2014
Sep. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Income before income taxes
 
 
 
 
 
United States
 
 
$ 17,033,000 
$ 65,851,000 
$ 110,189,000 
Foreign
 
 
65,894,000 
71,317,000 
42,830,000 
Income before income taxes
 
 
82,927,000 
137,168,000 
153,019,000 
Current:
 
 
 
 
 
Federal
 
 
(3,663,000)
30,061,000 
35,556,000 
State
 
 
334,000 
368,000 
310,000 
Foreign
 
 
30,950,000 
44,749,000 
17,273,000 
Total current income tax expenses
 
 
27,621,000 
75,178,000 
53,139,000 
Deferred and others:
 
 
 
 
 
Federal
 
 
(4,122,000)
(4,341,000)
77,000 
State
 
 
(26,000)
(27,000)
 
Foreign
 
 
(4,018,000)
(7,051,000)
1,494,000 
Total deferred and other income tax expenses
 
 
(8,166,000)
(11,419,000)
1,571,000 
Total income tax expenses
 
 
19,455,000 
63,759,000 
54,710,000 
Differences between provision for income taxes and income tax expense computed by applying federal rates
 
 
 
 
 
Total expense computed by applying federal rates
 
 
29,024,000 
48,009,000 
53,557,000 
State and provincial income taxes, net of federal benefit
 
 
334,000 
368,000 
310,000 
Adjustments of valuation allowance
 
 
 
 
(1,007,000)
Excess depletion
 
 
(1,114,000)
(1,395,000)
(1,416,000)
Estimates for uncertain tax positions
 
 
(7,386,000)
1,868,000 
551,000 
Statutory tax attributable to non-controlling interest
 
 
(293,000)
(1,236,000)
(2,042,000)
Effect of foreign earnings
 
 
1,141,000 
4,223,000 
511,000 
Effect of foreign earnings indefinitely reinvested
 
 
(1,700,000)
 
 
Effect of recognized loss on available-for-sale securities
 
 
562,000 
4,239,000 
 
Unrealized foreign exchange gains
 
 
(367,000)
1,146,000 
(546,000)
Changes in estimates and corrected errors of prior year tax
 
 
(594,000)
4,979,000 
1,075,000 
Other
 
 
(152,000)
1,558,000 
3,717,000 
Total income tax expenses
 
 
19,455,000 
63,759,000 
54,710,000 
Income tax (benefit) expense resulting from continued review of prior year's tax accounts
(2,600,000)
1,700,000 
 
 
 
Deferred tax assets:
 
 
 
 
 
Stock-based compensation
3,511,000 
 
3,511,000 
3,853,000 
 
Net operating losses
19,322,000 
 
19,322,000 
25,943,000 
 
Other deferred tax assets
7,068,000 
 
7,068,000 
4,460,000 
 
Total deferred tax assets
29,901,000 
 
29,901,000 
34,256,000 
 
Valuation allowance
(4,933,000)
 
(4,933,000)
(4,606,000)
 
Net deferred tax assets
24,968,000 
 
24,968,000 
29,650,000 
 
Deferred tax liabilities:
 
 
 
 
 
Mineral property basis
(158,301,000)
 
(158,301,000)
(165,936,000)
 
Unrealized foreign exchange gains
(3,072,000)
 
(3,072,000)
(3,684,000)
 
2019 Notes
(20,002,000)
 
(20,002,000)
(23,281,000)
 
Other deferred tax liabilities
(2,239,000)
 
(2,239,000)
(3,561,000)
 
Total deferred tax liabilities
(183,614,000)
 
(183,614,000)
(196,462,000)
 
Total net deferred taxes
(158,646,000)
 
(158,646,000)
(166,812,000)
 
Net operating loss carry forwards
 
 
 
 
 
Net operating loss carry forwards
77,000,000 
 
77,000,000 
108,000,000 
 
Reconciliation of beginning and ending amount of gross unrecognized tax benefits
 
 
 
 
 
Total gross unrecognized tax benefits at beginning of year
 
21,166,000 
21,166,000 
19,469,000 
18,836,000 
Additions / Reductions for tax positions of current year
 
 
(1,052,000)
2,638,000 
2,051,000 
Reductions due to settlements with taxing authorities
 
 
(296,000)
(941,000)
 
Reductions due to lapse of statute of limitations
 
 
(6,093,000)
 
(1,418,000)
Total amount of gross unrecognized tax benefits at end of year
13,725,000 
 
13,725,000 
21,166,000 
19,469,000 
Net unrecognized tax benefits
 
 
 
 
 
Expiration period of statute of limitations for income tax examinations
 
 
12 months 
 
 
Accrued income-tax-related interest and penalties
$ 5,400,000 
 
$ 5,400,000 
$ 4,300,000 
 
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
Cash paid during the period for :
 
 
 
Interest
$ 10,638 
$ 10,490 
$ 4,590 
Income taxes, net of refunds
27,322 
48,809 
58,520 
Non-cash investing and financing activities:
 
 
 
Dividends declared
$ 54,049 
$ 47,997 
$ 32,357 
FAIR VALUE MEASUREMENTS (Details) (USD $)
Jun. 30, 2014
Jun. 30, 2013
Assets:
 
 
Marketable equity securities
$ 9,608,000 
$ 9,695,000 
Recurring basis |
Carrying Amount
 
 
Assets:
 
 
United States treasury bills
499,992,000 
 
Marketable equity securities
9,608,000 
 
Liabilities:
 
 
Debt
388,860,000 
 
Amount of equity component of convertible notes
77,000,000 
 
Recurring basis |
Fair value
 
 
Assets:
 
 
United States treasury bills
499,992,000 
 
Marketable equity securities
9,608,000 
 
Total assets
509,600,000 
 
Liabilities:
 
 
Debt
394,050,000 
 
Total liabilities
394,050,000 
 
Recurring basis |
Level 1
 
 
Assets:
 
 
United States treasury bills
499,992,000 
 
Marketable equity securities
9,608,000 
 
Total assets
509,600,000 
 
Liabilities:
 
 
Debt
394,050,000 
 
Total liabilities
$ 394,050,000 
 
MAJOR SOURCES OF REVENUE (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
MAJOR SOURCES OF REVENUE
 
 
 
Minimum percentage required for qualifying as major operator
10.00% 
 
 
Teck |
Royalty revenue |
Concentration of risk by operator
 
 
 
Major sources of revenue
 
 
 
Revenue
$ 48,777 
$ 82,272 
$ 64,075 
Percentage of total revenue
20.60% 
28.40% 
24.40% 
Goldcorp, Inc. |
Royalty revenue |
Concentration of risk by operator
 
 
 
Major sources of revenue
 
 
 
Revenue
32,339 
32,461 
31,407 
Percentage of total revenue
13.60% 
11.20% 
11.90% 
Thompson Creek |
Royalty revenue |
Concentration of risk by operator
 
 
 
Major sources of revenue
 
 
 
Revenue
27,209 
 
 
Percentage of total revenue
11.50% 
 
 
Vale Newfoundland & Labrador Limited |
Royalty revenue |
Concentration of risk by operator
 
 
 
Major sources of revenue
 
 
 
Revenue
$ 25,128 
$ 32,517 
$ 36,030 
Percentage of total revenue
10.60% 
11.20% 
13.70% 
COMMITMENTS AND CONTINGENCIES (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Jun. 30, 2014
Canadian Minerals Partnership
Jun. 30, 2014
Altius
Oct. 16, 2009
Voisey's Bay Holding Corporation
Jun. 30, 2014
Voisey's Bay Holding Corporation
Jun. 30, 2014
Phoenix
Sep. 30, 2013
Mt. Milligan
Jun. 30, 2014
Mt. Milligan
Jun. 30, 2014
Tulsequah
Commitments and Contingencies
 
 
 
 
 
 
 
 
Final commitment payment made
 
 
 
 
 
$ 12.9 
$ 781.5 
 
Remaining commitment amount
 
 
 
 
45.0 
 
45.0 
Percentage of ownership interest held in Labrador Nickel Royalty Limited Partnership ("LNRLP")
89.99% 
10.00% 
 
0.01% 
 
 
 
 
Minimum damage amount claimed by Labrador Nickel Royalty Limited Partnership ("LNRLP")
 
 
$ 29 
 
 
 
 
 
RELATED PARTY (Details) (USD $)
12 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2014
Jun. 30, 2014
Crescent Valley Partners, L.P. ("CVP")
oz
Jun. 30, 2013
Crescent Valley Partners, L.P. ("CVP")
oz
Dec. 31, 2012
Crescent Valley Partners, L.P. ("CVP")
Former Chairman of the Board of Directors
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
DMFC
item
Dec. 31, 2013
Crescent Valley Partners, L.P. ("CVP")
DMFC
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
DMFC
Former Chairman of the Board of Directors
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
DMFC
Former member of Board of Directors
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
DMFC
Second former member of Board of Directors
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
Cortez
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
Cortez, excluding the Crossroad Claims
DMFC
Dec. 31, 2013
Crescent Valley Partners, L.P. ("CVP")
Cortez, excluding the Crossroad Claims
DMFC
Jan. 2, 2014
Crescent Valley Partners, L.P. ("CVP")
Crossroad Claims at Cortez
DMFC
Related party
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of royalty interests acquired
 
 
 
 
 
 
 
 
 
1.25% 
1.014% 
0.39% 
0.618% 
Ownership percentage held
 
 
 
3.063% 
81.098% 
31.633% 
 
 
 
 
 
 
 
Number of limited partners from whom partner ownership interest was acquired
 
 
 
 
 
 
 
 
 
 
 
 
Additional ownership interest acquired (as a percent)
 
 
 
 
49.465% 
 
3.00% 
24.50% 
8.00% 
 
 
 
 
Total purchase amount
$ 11,522,000 
 
 
 
$ 11,500,000 
 
 
 
 
 
 
 
 
Quantity of gold inventories (in ounces)
 
7,708 
9,742 
 
 
 
 
 
 
 
 
 
 
Carrying value of the gold in inventory
 
5,000,000 
6,100,000 
 
 
 
 
 
 
 
 
 
 
Fair value of the gold in inventory
 
$ 10,100,000 
$ 11,600,000 
 
 
 
 
 
 
 
 
 
 
Maximum period of days gold inventory allocated to Royal Gold in an in-kind distribution will be held before sale
5 days 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2012
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 70,142 
$ 57,748 
$ 52,785 
$ 56,487 
$ 57,326 
$ 74,166 
$ 79,870 
$ 77,862 
$ 237,162 
$ 289,224 
$ 263,054 
Operating income
31,452 
28,614 
22,916 
25,738 
29,924 
42,932 
50,665 
47,646 
108,720 
171,167 
156,634 
Net income attributable to Royal Gold Stockholders
$ 16,636 
$ 20,143 
$ 10,667 
$ 15,195 
$ 10,701 
$ 6,464 
$ 27,217 
$ 24,771 
$ 62,641 
$ 69,153 
$ 92,476 
Basic earnings per share (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.16 
$ 0.23 
$ 0.16 
$ 0.10 
$ 0.42 
$ 0.42 
$ 0.96 
$ 1.09 
$ 1.61 
Diluted earnings per share (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.16 
$ 0.23 
$ 0.16 
$ 0.10 
$ 0.42 
$ 0.41 
$ 0.96 
$ 1.09 
$ 1.61