Royal Gold Inc (RGLD) 2024 Q3 法說會逐字稿

Hello, everyone, and welcome to Royal Gold's 2024 third-quarter conference call. My name is Emily, and I will be coordinating your call today. (Operator Instructions)

大家好，歡迎參加Royal Gold 2024年第三季電話會議。我的名字是艾米麗，今天我將負責協調您的通話。（操作員指令）

I will now turn the call over to our host, Alistair Baker, Senior Vice President of Investor Relations and Business Development. Please go ahead, Alistair.

現在，我將電話轉給主持人、投資者關係和業務發展高級副總裁阿利斯泰爾貝克 (Alistair Baker)。請繼續，阿利斯泰爾。

Thank you, operator. Good morning, and welcome to our discussion of Royal Gold's third-quarter 2024 results. This event is being webcast live, and a replay of this call will be available on our website.

謝謝您，接線生。早安，歡迎參加我們對 Royal Gold 2024 年第三季業績的討論。此次活動將進行網路直播，本次通話的重播將在我們的網站上提供。

Speaking on the call today are Bill Heissenbuttel, President and CEO; Paul Libner, Senior Vice President and CFO; and Martin Raffield, Senior Vice President of Operations; Randy Shefman, Senior Vice President and General Counsel; and Dan Breeze, Senior Vice President, Corporate Development of RG AG are also available for questions.

今天參加電話會議的有總裁兼執行長 Bill Heissenbuttel； Paul Libner，資深副總裁兼財務長；以及營運資深副總裁 Martin Raffield；蘭迪‧謝夫曼 (Randy Shefman)，資深副總裁兼總法律顧問；以及 RG AG 企業發展部資深副總裁 Dan Breeze 也可以回答問題。

During today's call, we will make forward-looking statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release and our filings with the SEC.

在今天的電話會議中，我們將做出前瞻性陳述，包括有關我們對未來的預測和期望的陳述。這些聲明受到風險和不確定性的影響，可能導致實際結果與這些聲明有重大差異。這些風險和不確定性在昨天的新聞稿和我們向美國證券交易委員會提交的文件中進行了討論。

We will also refer to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share adjusted EBITDA and cash G&A. Reconciliations of these measures to the most directly comparable GAAP measures are available in yesterday's press release, which can be found on our website.

我們也將參考某些非 GAAP 財務指標，包括調整後的淨收入、調整後的每股淨收入、調整後的 EBITDA 和現金 G&A。這些指標與最直接可比較的 GAAP 指標的對帳表可在昨天的新聞稿中查閱，您可以在我們的網站上找到。

So we'll start with an overview of the quarter. Martin will give some commentary on the portfolio, and Paul will provide a financial update. After the formal remarks, we'll open the lines for a Q&A session.

因此，我們將從本季的概述開始。馬丁將對投資組合發表一些評論，保羅將提供財務更新。正式發言結束後，我們將進入問答環節。

I'll now turn the call over to Bill.

我現在將電話轉給比爾。

Good morning, and thank you for joining the call. I'll begin on slide 4.

早上好，感謝您參加電話會議。我將從第 4 張投影片開始。

We had very strong financial performance during the quarter and recognized record revenue of $194 million, a 40% increase over the same period last year. Operating cash flow was $137 million, up 39% over last year, and earnings were $96 million or $1.46 per share, a 95% increase when compared to the third quarter of last year. On an adjusted basis, our earnings were a record $97 million or $1.47 per share.

本季我們的財務表現非常強勁，實現創紀錄的 1.94 億美元收入，比去年同期成長 40%。經營現金流為 1.37 億美元，較去年同期成長 39%，收益為 9,600 萬美元，即每股 1.46 美元，較去年同期第三季成長 95%。經過調整後，我們的收益達到創紀錄的 9,700 萬美元，即每股 1.47 美元。

Revenue was 76% gold and almost 60% of our revenue was generated from the US, Canada and Australia. Our adjusted EBITDA margin remained strong at 81% for the quarter. A key feature of our business model is that we're not directly exposed to inflationary cost pressures and we have not seen erosion in margins during the recent period of rising gold prices. We used our cash flow to pay our regular quarterly dividend of $26 million, and we also repaid the final $50 million outstanding on the revolving credit facility. We are now debt-free and have over $1.1 billion of available liquidity.

我們收入的 76% 來自黃金，近 60% 的收入來自美國、加拿大和澳洲。本季我們的調整後 EBITDA 利潤率仍保持強勁，達到 81%。我們的商業模式的一個關鍵特點是，我們不會直接受到通膨成本壓力的影響，並且在最近金價上漲期間，我們的利潤率也沒有受到侵蝕。我們利用現金流支付了 2,600 萬美元的定期季度股息，同時也償還了循環信貸額度中未償還的 5,000 萬美元。我們現在已經無債務，並擁有超過11億美元的可用流動資金。

During the quarter, we recognized first revenue from two of the newest producing assets in our portfolio. I'd like to congratulate IAMGOLD to Côté Gold in Kinross and Contango or at Mancha for bringing these projects into production on schedule.

在本季度，我們從投資組合中兩項最新生產的資產中首次獲得了收入。我要祝賀 IAMGOLD 和位於金羅斯 (Kinross) 和康坦戈 (Contango) 的 Côté Gold 以及位於曼恰 (Mancha) 的這些項目按時投入生產。

And finally, I'd like to mention a change to our disclosure. As a US domicile company, we are subject to the SEC's Regulation SK 1300, and we have recently learned that the SEC has taken a position that precludes the inclusion of some or all of the reserves and resources in our filings. As a passive investor, we do not have access to the information from our operators that would meet the SEC's interpretation of the standards of disclosure under SK 1300.

最後，我想提一下我們揭露內容的改變。作為一家美國公司，我們受美國證券交易委員會 (SEC) SK 1300 條例的約束，我們最近獲悉，SEC 已採取立場，禁止將部分或全部儲備和資源納入我們的文件中。作為被動投資者，我們無法從我們的營運商處獲取符合美國證券交易委員會對 SK 1300 規定的揭露標準的解釋的資訊。

Most of our operating counterparties that are foreign domiciled did not disclose information about the properties in accordance with SK 1300, but instead utilize other standard reporting guidelines like 43-101 and JORC, all of which are well established and were previously allowed for reporting purposes by the SEC before the introduction of SK 1300. As a result, we expect to amend our 2023 Form 10-K in the next few weeks. Reducing our disclosure in the 10-K does not imply any change to the risk profile of our business, our business model, our access to information or the status of our interest in any properties.

我們大多數在國外註冊的經營對手方沒有按照 SK 1300 披露有關房地產的信息，而是利用其他標準報告指南，如 43-101 和 JORC，這些指南都是完善的，並且之前已被SK 1300 推出之前的SEC。因此，我們預計將在未來幾週內修改 2023 年 10-K 表。減少我們在 10-K 文件中揭露的資訊並不意味著我們業務的風險狀況、業務模式、資訊取得方式或我們對任何財產的權益狀況發生任何改變。

There are also no changes to our previously designated principal properties. We will continue to include fulsome disclosure of all mineral resources and reserves attributable to our interest in 8-K filings that are furnished to the SEC and on our website under the our Portfolio tab and our asset handbook. I'll refer you to Part 2, Item 1A in the 10-Q we filed this morning for a more complete description of this issue.

我們之前指定的主要屬性也沒有發生任何變化。我們將繼續在提交給美國證券交易委員會的 8-K 文件中以及在我們網站的「投資組合」標籤和資產手冊中全面披露歸因於我們的權益的所有礦產資源和儲量。請您參閱我們今天上午提交的 10-Q 表第 2 部分第 1A 項，以獲得有關此問題的更完整描述。

With that, I'll hand the call over to Martin to discuss our portfolio performance.

說完這些，我將把電話交給馬丁，討論我們的投資組合表現。

Thanks, Bill. Turning to slide 5, I'll give some comments on third-quarter revenue.

謝謝，比爾。轉到第 5 張投影片，我將對第三季的收入發表一些評論。

Overall revenue was a record $194 million with volume of 78,400 GEOs. Higher prices were the primary driver for the increased revenue, but we also have several new assets contributing revenue compared to the same period last year. Our newest producers, including Bellevue, Mara Rosa, Wonder North, Mancha and Cote provided almost $13 million in revenue this quarter compared to last year.

總收入達到創紀錄的 1.94 億美元，GEO 交易量達到 78,400 份。價格上漲是營收增加的主要動力，但與去年同期相比，我們也有幾項新資產貢獻收入。我們最新的生產商，包括 Bellevue、Mara Rosa、Wonder North、Mancha 和 Cote，本季與去年同期相比創造了近 1,300 萬美元的收入。

Our royalty segment contributed $61 million, about 31% of total revenue for the quarter. Royalty revenue was up strongly by about 53% from the prior year quarter with higher contributions from Peñasquito and Robinson and first revenue from Manso and Côté Gold. These increases were partially offset by lower revenue from the Cote's legacy zone. Revenue from our stream segment was $133 million, up by about 34% from last year with increased contributions from Mount Milligan, Pueblo Viejo, Wassa and Xavantina, partially offset by lower revenue from Andacollo.

我們的特許權使用費部分貢獻了 6,100 萬美元，約佔本季總收入的 31%。特許權使用費收入較去年同期強勁增長約 53%，其中 Peñasquito 和 Robinson 的貢獻增加，以及來自 Manso 和 Côté Gold 的第一筆收入。這些成長被科特遺留區的收入減少部分抵銷。我們的溪流部門的收入為 1.33 億美元，比去年增長約 34%，其中來自 Mount Milligan、Pueblo Viejo、Wassa 和 Xavantina 的貢獻增加，但來自 Andacollo 的收入下降部分抵消了這一影響。

I'll turn to slide 6 and give some comments on notable developments at our principal properties. At Mount Milligan, Centerra reported last week that the production guidance for the year is unchanged, with gold expected to trend towards the lower end of the range. They also reported that the site optimization program continues and the PEA to evaluate opportunities to extend the mine life beyond 2035 is advancing and is expected to be complete towards the end of the first half of next year.

我將轉到第 6 張投影片並對我們主要物業的顯著發展發表一些評論。在 Mount Milligan，Centerra 上週報告稱，今年的生產預期保持不變，預計金價將趨向區間的低端。他們還報告稱，場地優化計劃仍在繼續，對延長礦山壽命至 2035 年以後的機會的初步經濟評估 (PEA) 正在推進，預計將於明年上半年末完成。

At (inaudible) reported an improvement in mill throughput during the third quarter as a result of increased water availability and during Tuesday's Investor Day, they commented that they have the water required to operate at full production moving forward. Drought conditions caused the water use restrictions that limited throughput earlier in the year. Recall that we typically see the impact in our results about five to six months after mine site production.

(聽不清楚) 報告稱，由於水資源供應增加，第三季工廠產量有所提高，在周二的投資者日上，他們表示，他們有足夠的水來保證今後全面生產。乾旱條件導致用水限制，限制了今年稍早的產量。回想一下，我們通常會在礦場生產後約五到六個月看到結果的影響。

Turning to slide 7, at Peñasquito, third-quarter production from the Chile Colorado pit was steady and mining is transition to the Peñasco pit ahead of plan. Newmont expects gold production to increase in the fourth quarter and into 2025 due to mining in the higher gold grade Peñasco pit. Newmont has also agreed on a new but collective bargaining agreement with the mining Union for the 2024 through 2026 period, which Newmont expects will provide a solid foundation for continued operations. Recall that we received no revenue in the third quarter of last year due to a strike at the mine.

翻到幻燈片 7，在 Peñasquito，智利科羅拉多礦坑第三季的產量穩定，並且採礦正在提前過渡到 Peñasco 礦坑。紐蒙特預計，由於金品位較高的 Peñasco 礦坑的開採，第四季以及 2025 年的黃金產量將會增加。紐蒙特還與礦業工會達成了一項為期 2024 年至 2026 年的新集體談判協議，紐蒙特預計將為持續營運奠定堅實基礎。回想一下，由於礦井罷工，去年第三季我們沒有獲得任何收入。

At Con Macau, MMG reported improved mining and milling volumes and higher ore grades in the third quarter and MMG expects development efforts to support the ramp-up of production from Zone 5 over the next year. We recently visited the site and found that the transition to MMG ownership has been executed efficiently and the focus is turning towards constructing a paste backfill plant to improve ore body recovery and preparing the expansion plan feasibility study.

在澳門，MMG 報告第三季採礦和磨礦量增加，礦石品位也更高，MMG 預計開發工作將在未來一年支持 5 區產量的提升。我們最近訪問了該現場，發現向MMG所有權的過渡已經高效執行，重點轉向建造膏體回填廠以提高礦體回收率和準備擴建計劃的可行性研究。

With respect to the expansion time line, MMG expects to complete the feasibility study by the end of this year, begin construction in 2026 and produce first concentrate in 2028. Recall that Royal Gold Silver Stream interest covers expanded production from the Zone 5 mine and the Mango Northeast deposits.

至於擴建時間表，MMG預計將在今年年底前完成可行性研究，2026年開始建設，並於2028年生產第一批精礦。回想一下，Royal Gold Silver Stream 的權益涵蓋了 5 區礦場和 Mango Northeast 礦床的擴大產量。

Turning to slide 8, I'll add a few comments on other portfolio assets. We also recently visited Wasser and saw that both open pit and underground operations are progressing well. A high degree of strategic focus is being placed on extending the life of the operation through exploration and the deep extension of the Wassa ore bodies and developing options for additional satellite ore feed on the large land package.

轉到第 8 張投影片，我將對其他投資組合資產添加一些評論。我們最近也參觀了瓦瑟，發現露天和地下作業都進展順利。我們高度重視透過勘探和瓦薩礦體的深度延伸來延長礦山的使用壽命，並開發在大片土地上提供額外衛星礦石供應的選擇。

With respect to these future plans, Chifeng completed an independent competent person's report in late August that considers mining of open pit and underground reserves through 2028, followed by the mining of potentially economic material in the southern extension that could extend the mine life for multiple decades. At Great Bear, Kinross released the results of the preliminary economic assessment and highlighted a 12-year initial mine life averaging over 500,000 ounces of gold production per year in the first eight years. Kinross is continuing to advance exploration permitting and engineering work with a target for first production in mid-2029.

關於這些未來計劃，赤峰於8 月底完成了一份獨立合格人員報告，該報告考慮在2028 年之前開採露天和地下儲量，隨後在南部延伸區開採潛在的經濟材料，這可能會延長礦山壽命數十年。在 Great Bear，金羅斯公佈了初步經濟評估結果，並強調礦山初始壽命為 12 年，前八年平均每年黃金產​​量超過 50 萬盎司。金羅斯正在繼續推進勘探許可和工程工作，目標是在 2029 年中期實現首次生產。

And lastly, at (inaudible), we made the remaining $3.2 million exploration advanced payment during the quarter. Our stream agreement included $10 million in success-based payment to support Euro's efforts to add resources and complete regional exploration, and we have now fully paid this amount. Since our original investment, our reserves have increased by 120%, including depletion and significant increases have been made to the measured and indicated resource category.

最後，（聽不清楚）我們在本季支付了剩餘的 320 萬美元勘探預付款。我們的串流協議包括 1000 萬美元的基於成功的付款，以支持 Euro 增加資源和完成區域勘探的努力，我們現在已經全額支付了這筆款項。自從我們最初投資以來，我們的儲量增加了 120%，包括枯竭，測量和指示資源類別也有了顯著增加。

I'll now turn the call over to Paul for a review of our financial results.

現在我將把電話轉給保羅，讓他審查我們的財務結果。

Thanks, Martin. I will now turn to slide 9 and give an overview of the financial results for the quarter. For this discussion, I'll be comparing the quarter ended September 30, 2024, to the prior year quarter.

謝謝，馬丁。現在我將翻到第 9 頁，概述本季的財務結果。為了本次討論，我將把截至 2024 年 9 月 30 日的季度與去年同期進行比較。

Revenue for the quarter was up 40% to a record $194 million. Metal prices were a primary driver of the revenue increase with gold up 28%, silver up 25% and copper up 10% over the prior year. And as Martin also mentioned, new contributions within the Royalty segment of nearly $13 million or 5,000 GEOs also contributed to the overall increase.

本季營收成長 40%，達到創紀錄的 1.94 億美元。金屬價格是收入成長的主要推動力，其中黃金價格比前一年上漲了 28%，白銀價格上漲了 25%，銅價格上漲了 10%。正如馬丁所提到的，特許權使用費部分的新捐款（近 1,300 萬美元或 5,000 GEO）也為整體成長做出了貢獻。

Gold remains our dominant revenue source, making up 76% of our total revenue for the quarter, followed by silver, 12% and copper at 9%. Royal Gold continues to have the highest gold percentage when compared to our major peers in the royalty streaming sector.

黃金仍然是我們的主要收入來源，佔本季總收入的 76%，其次是白銀（12%）和銅（9%）。與特許權使用費串流媒體領域的主要同行相比，皇家黃金繼續擁有最高的黃金比例。

Turning to slide 10, I'll provide a bit more detail on specific financial line items for the quarter. G&A expense was $10.1 million and in line with the prior year. After excluding non-cash stock compensation expense, our cash G&A was $7.1 million, which is also in line with the prior year. Our cash G&A costs have remained stable and with the increase in revenue this quarter, our cash G&A as a percentage of revenue remained low and decreased to below 4% of total revenue for the quarter. Our DD&A expense decreased slightly to $36 million from $40 million in the prior year.

前往第 10 張投影片，我將提供有關本季度具體財務項目的更多詳細資訊。一般及行政開支為 1,010 萬美元，與上年持平。扣除非現金股票薪酬費用後，我們的現金 G&A 為 710 萬美元，與前一年持平。我們的現金 G&A 成本保持穩定，隨著本季營收的增加，我們的現金 G&A 佔收入的百分比仍然保持在低位，並下降至本季總收入的 4% 以下。我們的 DD&A 費用從上年的 4,000 萬美元略微下降至 3,600 萬美元。

On a unit basis, this expense was $462 per GEO for the quarter compared to $558 per GEO in the prior year. The lower overall depletion expense and DD&A per GEO this quarter was due to lower stream depletion rates as a result of reserve increases, lower server sales at Comical, lower gold sales at (inaudible) and lower gold production at Cortez. The decrease was partially offset by higher gold sales at Mount Milligan and higher gold and silver sales at Pablo Viejo.

以單位計算，本季每 GEO 的費用為 462 美元，而去年同期為每 GEO 558 美元。本季每個 GEO 的整體耗竭費用和 DD&A 較低，是由於儲量增加導致流量耗竭率較低、Comical 伺服器銷售下降、(聽不清楚) 黃金銷售下降以及 Cortez 黃金產量下降。但 Mount Milligan 的黃金銷量以及 Pablo Viejo 的黃金和白銀銷量的增加，部分抵消了下降。

Interest expense decreased significantly to $1.2 million from $7.3 million in the prior year. The decrease was primarily due to lower average amounts outstanding under the revolving credit facility. Tax expense for the quarter was $22 million, resulting in an effective tax rate of 18.3%. This compares to a tax expense of $11 million and at a better tax rate of 17.8% in the prior year. The higher tax expense in the current period was due to higher pretax income, driven primarily by higher revenue.

利息支出從上年的730萬美元大幅下降至120萬美元。下降的主要原因是循環信貸額度下平均未償還金額較低。本季稅費為 2,200 萬美元，有效稅率為 18.3%。相較之下，前一年的稅費為 1,100 萬美元，稅率更優惠，為 17.8%。本期稅費增加是因為稅前收入增加，而稅前收入增加主要是因為收入增加。

Net income for the quarter was up over the prior year to $96 million or $1.46 per share. The increase in net income was primarily due to higher revenue and lower interest expense. After adjusting for a minor change in the fair value of equity securities, net income for the quarter was a record $97 million or $1.47 per share. Our operating cash flow supported was nearly $137 million, up 39% over the prior year. The increase in operating cash flow was primarily due to higher stream and royalty cash receipts.

本季淨收入較上年同期增加至 9,600 萬美元，即每股 1.46 美元。淨收入的增加主要歸因於收入增加和利息支出減少。在對股權證券公允價值的小幅變動進行調整後，本季淨收入達到創紀錄的 9,700 萬美元，即每股 1.47 美元。我們支持的營運現金流接近1.37億美元，比上年增長39%。經營現金流的增加主要由於流量和特許權使用費現金收入的增加。

I will now turn to slide 11 and provide a summary of our financial position as of September 30. As we've discussed during our last quarterly call, we repaid the remaining $50 million outstanding on our credit facility in early August and are currently debt free. We now have the full $1 billion revolving credit facility undrawn and available and combined with approximately $160 million of working capital, we had a total liquidity of approximately $1.1 billion at the end of the quarter.

現在我將翻到第 11 張投影片，並提供截至 9 月 30 日的財務狀況摘要。正如我們在上次季度電話會議上所討論的那樣，我們於 8 月初償還了信貸額度中剩餘的 5000 萬美元未償還金額，目前已無債務。我們目前擁有尚未提取且可用的 10 億美元循環信貸額度，加上約 1.6 億美元的營運資金，截至本季末，我們的總流動資金約為 11 億美元。

I will now turn to slide 12 to briefly review where we are relative to the 2024 guidance we provided in April. With respect to sales, we are tracking well compared to our original guidance for gold, copper and revenue from other metals. Gold is our dominant revenue driver, and we expect gold sales to come in at or below the midpoint of the guidance range with copper and revenue from other metals to come in at or above the higher end of the respective ranges.

現在，我將轉到第 12 張投影片，簡要回顧我們相對於 4 月提供的 2024 年指導的現狀。就銷售而言，我們的黃金、銅和其他金屬收入表現與我們最初的預期相比表現良好。黃金是我們的主要收入來源，我們預計黃金銷售額將達到或低於指導範圍的中點，而銅和其他金屬的收入將達到或超過各自範圍的高端。

With respect to Summer, we expect sales to come in modestly below the low end of the guidance range, mostly due to low sales at (inaudible). Silver recoveries have been an issue throughout the year at Pueblo Viejo and the low deliveries we received in September will translate into lower sales in the fourth quarter. While our results are generally within guidance, we do expect a slightly softer Q4 based on the timing of certain metal deliveries under our streaming segment.

就夏季而言，我們預計銷售額將略低於指導範圍的低端，主要是由於（聽不清楚）。銀礦回收一直是 Pueblo Viejo 全年面臨的問題，9 月份銀礦交付量較低，這將導致第四季度銷售額下降。雖然我們的業績總體上在指導範圍內，但根據串流媒體部門下某些金屬交付的時間，我們預計第四季度的業績會略顯疲軟。

With respect to DDA and our effective tax rate, we expect both will be within the respective guidance ranges. This, of course, assumes no unusual or discrete tax items.

對於 DDA 和我們的有效稅率，我們預計兩者都將在各自的指導範圍內。當然，這假設不存在不尋常或離散的稅項。

That concludes my comments on our financial performance for the quarter, and I'll now turn the call back to Bill for closing comments.

這就是我對本季財務業績的評論，現在我將電話轉回給比爾進行結束語。

Thanks, Paul.

謝謝，保羅。

Our third quarter was very strong. Our portfolio performed well and our financial results show how our business benefits directly from a strong and rising gold price. The strong gold price creates a great backdrop for the organic growth we're seeing from our newest producing assets, and I'm pleased to see much of that growth coming from the US, Canada and Australia.

我們的第三季表現非常強勁。我們的投資組合表現良好，我們的財務表現顯示我們的業務直接受益於強勁且上漲的金價。強勁的金價為我們最新生產資產的有機成長創造了良好的背景，我很高興看到大部分成長來自美國、加拿大和澳洲。

As we look forward, we remain busy on the business development front. Not only has the rising gold price directly benefited the operating side of our business, it has also brought opportunities forward as developers try to advance new projects.

展望未來，我們仍將忙於業務發展。金價上漲不僅直接使我們的業務營運受益，也為開發商推動新專案帶來了機會。

Our balance sheet and liquidity allow us to be competitive and you can expect us to stick to our strategy of adding exposure in metals markets with which we are familiar in safe jurisdictions and with quality counterparties. While elevated metal prices may appear to mask or mitigate certain project risks, we will remain disciplined with respect to our due diligence standards on the technical, financial and political aspects of our project reviews, so that we can deliver disciplined growth.

我們的資產負債表和流動性使我們具有競爭力，您可以期待我們堅持我們的策略，即在安全的司法管轄區和優質的交易對手中增加我們熟悉的金屬市場的風險敞口。儘管金屬價格上漲可能掩蓋或減輕某些專案風險，但我們將繼續嚴格遵守專案審查的技術、財務和政治方面的盡職調查標準，以實現有紀律的成長。

Operator, that concludes our prepared remarks. I'll now open the line for questions.

接線員，我們的準備好的發言到此結束。我現在開始回答大家的提問。

(Operator Instructions) Cosmos Chiu, CIBC.

(操作員指示) Cosmos Chiu，CIBC。

Maybe my question is on the SK 1300 standard. Bill, I know you kind of talked about it, but could you maybe give me a bit more clarity, so it sounds like even though some of these reserve resources are under 43-101, they don't meet the standard of SK 1300 given that you're an SEC registered -- and it never sounds great when you have an amendment to your SEC filings. I'm just wondering like how extensive is this filing that you need to do?

也許我的問題是關於 SK 1300 標準。比爾，我知道你談論過這個問題，但你能不能再給我解釋一下，聽起來雖然其中一些儲備資源低於 43-101，但它們不符合 SK 1300 的標準，因為您已在證券交易委員會( SEC) 註冊— — 但當您對SEC 文件進行修改時，這聽起來總是不太好。我只是想知道您需要做多少準備？

Yes. Cosmos, thanks for the question. And you kind of hit it on the head. It never sounds good, when you have an amendment to the 10-K. And that's why we wanted to raise it because we may end up filing this thing somewhere between US Thanksgiving and the end of the year when things are quieter. We just didn't want it to land in the market and not have an explanation. Look, it's all about reporting. We used to report under Guide that went away with SK 1300. And the SEC has basically said that is our standard.

是的。Cosmos，謝謝你的提問。你確實擊中了它的要害。當你對 10-K 進行修改時，聽起來總是不太好。這就是我們想要提出這項要求的原因，因為我們可能會在美國感恩節到年底之間某個時候提出這項要求，因為那時情況會比較平靜。我們只是不想讓它進入市場卻沒有任何解釋。你看，這都是為了報道。我們過去常常根據隨 SK 1300 一起消失的指南進行報告。美國證券交易委員會基本上已經表示，這就是我們的標準。

We do have a couple of properties operated by our joint venture with Newmont, PV, Cortez, Peñasquito. But there are also some QP requirements that the SEC has that really doesn't allow us to put those reserves and resources in the filing. The reason we brought it up is there's actually nothing to see here. All we want people to understand is to the extent you use the 10-K, to get the reserve and resource information.

我們確實與 Newmont、PV、Cortez、Peñasquito 合資經營一些資產。但美國證券交易委員會 (SEC) 也有一些 QP 要求，實際上不允許我們將這些儲備和資源放入文件中。我們之所以提起這件事，是因為這裡其實沒什麼好看的。我們希望人們了解使用 10-K 的程度，以獲取儲備和資源資訊。

You just go somewhere else and I actually think the addition that we've made under the (inaudible) portfolio (inaudible) is really, really helpful. You want to reserves just go there. They're all there -- we can continue to make it available to people, and we'll continue to update the asset handbook every year. So I just wanted people to know about it. We're not concerned about it. There's nothing else wrong. It's just the amendment will just deal with the property section of the 10-K.

你只需去其他地方，我實際上認為我們在（聽不清楚）投資組合（聽不清楚）下所做的補充確實非常有幫助。如果你想保留，就去那裡。它們都在那裡——我們可以繼續向人們提供它們，我們每年都會繼續更新資產手冊。所以我只是想讓人們知道這件事。我們對此並不擔心。沒什麼其他問題。該修正案僅涉及 10-K 中的財產部分。

Sounds good. So Bill, I'd like to clarify. So your handbook doesn't change. The only really -- the only change will be in your 10-K and in that one section of reserve resources information is still there elsewhere, just not in the 10-Q.

聽起來不錯。所以比爾，我想澄清一下。所以您的手冊不會改變。唯一真正——唯一的變化是在您的 10-K 中，並且其中一部分儲備資源資訊仍然存在於其他地方，只是不在 10-Q 中。

Exactly. I just wanted you to know where to go.

確切地。我只是想讓你知道該去哪裡。

(Operator Instructions) Tanya Jakusconek, Scotiabank.

(操作員指示) Tanya Jakusconek，加拿大豐業銀行。

Just wanted to circle back on the guidance for 2024. I think -- I'm sorry, I'm on the phone, so it went in and out, so I just want to make sure I heard it correctly. You are going to be at the mid to the lower portion of the range on the gold front and you're going to be the higher end on the copper and other front. Is that correct, on the higher end and then below on the silver?

只是想回顧一下 2024 年的指導。我想——抱歉，我正在打電話，所以說了好幾句話，我只是想確保我聽得沒錯。在黃金方面，您將處於該範圍的中下部，而在銅和其他方面，您將處於該範圍的高端。這是正確的嗎？

We're going to be -- I think we're going to end up being below the low range (inaudible) million Yes, we'll be a bit below that figure. So that's the only one that would be outside the range.

我認為我們最終會低於低範圍（聽不清楚）百萬是的，我們會略低於這個數字。所以這是唯一一個超出範圍的。

Okay. And the softer Q4, and you said it would be weaker deliveries. So can you just remind me what assets we would be expecting weaker deliveries or timing?

好的。第四季表現較疲軟，您說交付量也會減少。那麼，您能否提醒我一下，我們預期哪些資產的交付或時間會較弱？

Yes, it's not so much weaker, it's timing. And assets like Milligan, Milligan can swing a number of GEOs with just one delivery. And we've seen some advanced deliveries arrived earlier this year than we had expected. So we wanted to let people know it might be softer, but we may also see an early delivery from Milligan. But it's the bigger on TV, we always know, but it's Milligan and sometimes it's Andacollo, the ones that have these five- or six-month delays that were -- you get to the end of the year, and we're just really unsure about the timing.

是的，這並不是弱多少，而是時機問題。而像 Milligan 這樣的資產，只需一次交付，Milligan 就可以轉移多個 GEO。我們看到，今年一些提前交付的貨物比我們預期的要早。因此，我們想讓人們知道，情況可能會更溫和，但我們也可能會看到米利根提前交貨。但我們一直都知道，電視上播出的節目更大，但米利根和安達科洛的節目有時要推遲五到六個月播出——到年底時，我們真的不確定時間。

Okay. That's helpful. And then I wanted to circle back, if I could, on your -- just on the transaction environment. With gold price moving quite volatile things change on a daily basis. So I know I ask this every quarter, but maybe something has changed.

好的。這很有幫助。然後，如果可以的話，我想回頭談談您的交易環境。由於金價波動很大，情況每天都在改變。所以我知道我每個季度都會問這個問題，但也許情況已經改變了。

I just want to kind of come back and see what are you seeing? You said you're busy. What are you seeing in terms of opportunities on the precious metals front? Are you still in that $100 million to $300 million range and then the royalties in the sub-$100 million range? And then are you still seeing the money towards funding for development companies and/or buying operating cash flow.

我只是想回來看看你看到了什麼？你說你很忙。您認為貴金屬方面有哪些機會？您的收入範圍仍處於 1 億至 3 億美元之間，而版稅則在 1 億美元以下嗎？那麼，您是否仍看到這些資金用於資助開發公司和/或購買營運現金流？

I'm just trying to see if anything has changed there for you. And in this competitive environment, has the way you approach your agreement changed as well in terms of having to modify include different things?

我只是想看看你那裡是否有任何變化。在這種競爭環境下，你們處理協議的方式是否也發生了改變，需要修改包含不同內容的內容？

Yes, Tanya, let me see if I can get Dan Breeze on the line here to help you out there.

是的，Tanya，我看看能不能讓 Dan Breeze 來幫忙。

Sure, Bill. Thanks for the question, Tanya. So just to address your question specifically in terms of what might have changed or what we're seeing right now. I think the way we would describe it is very robust. And I would say there's a notable increase in the number of opportunities that we're reviewing now versus, say, three or four months ago. And I'd also add that the types of opportunities that we're seeing now, I'd say it's more broad than what we've seen in the recent past as well.

當然，比爾。謝謝你的提問，Tanya。因此，我只想具體回答你的問題，看看可能發生了什麼變化，或者我們現在看到什麼。我認為我們描述它的方式非常可靠。我想說的是，與三、四個月前相比，我們現在審查的機會數量明顯增加了。我還要補充一點，我們現在看到的機會類型比我們最近看到的更廣泛。

And what I mean by that is we're seeing things across the board, whether it's financings for project development, acquisition financing opportunities. The third-party royalties are still around. We're looking at some of those. And the new -- new royalties over earlier stage projects in some cases. I think the range we always talk about, Tanya, the $100 million to $300 million, that's still there. We're aware of a couple of things that are a bit bigger than that. But that's -- I think that's the range you could still think about.

我的意思是，我們正在全面審視各種情況，無論是專案開發融資還是收購融資機會。第三方版稅仍然存在。我們正在研究其中的一些。在某些情況下，還有新的——早期項目的新版稅。塔妮婭，我認為我們一直在談論的範圍，1 億美元到 3 億美元，這個數字仍然存在。我們知道一些比這更大的事情。但那是——我認為這是你仍然可以考慮的範圍。

Having said that, you saw us transact a few months ago with the Back River royalties that we acquired for approximately $50 million. I think you'll still see us look at those kinds of things as well. But again, Bill talked about this a fair bit in his prepared comments, we're just going to stay really focused on where we think our shareholders want us to place value, which is quality projects, operators, that long-term optionality in good jurisdictions.

話雖如此，您看到我們幾個月前以約 5000 萬美元的價格收購了 Back River 特許權使用費。我想你仍然會看到我們關注這些事情。但比爾在他準備好的評論中再次談到了這一點，我們只是將真正專注於我們認為股東希望我們賦予價值的地方，即優質項目、運營商、良好的長期選擇權司法管轄區。

And what about the structure of the deal. I just noticed a recent one had (inaudible) on it and different bells and (inaudible). I'm just kind of wondering, as you look at these structures are you finding that they're getting more complicated than just above and beyond the stream or the royalty plus the debt plus the equity financing plus X, Y, Z. What are you seeing? And how are you thinking about your agreement?

那麼交易的結構如何？我剛剛注意到最近的一個上面有（聽不清楚）和不同的鈴聲和（聽不清楚）。我只是有點好奇，當你看到這些結構時，你是否發現它們變得越來越複雜，不僅僅是流或特許權使用費加上債務加上股權融資加上 X、Y、Z。你看到了嗎？你對於你的協議有什麼看法？

Bill, do you want me to give a bit of color there as well? Or do you want to.

比爾，你想讓我也跟你講點顏色看看嗎？或者你想這麼做。

Sure, go ahead.

當然，請說。

Yes. So Tanya, I think just to step back. Again, I think it's fair to say that our products have become pretty mainstream over the last decade or so. And they're evolving. And I think what we're seeing in the market is a reflection of that.

是的。所以 Tanya，我認為只是退一步。再次，我認為可以公平地說，我們的產品在過去十年左右的時間裡已經成為主流。而它們正在不斷進化。我認為我們在市場上看到的情況就反映了這一點。

So I know you're referring to some of the more specific things that we've seen in the market alongside of core products, debt equity, prepays. I'd say we're certainly open to that, and we do look at those things. And if you look at our Khoemacau transaction, we actually had a debt facility that was put in there, which was approximately 10% of the size of the funding that we provided for that opportunity. So we are open to those things.

所以我知道您指的是我們在市場上看到的一些更具體的東西，以及核心產品、債務權益、預付款。我想說我們對此當然持開放態度，而且我們確實在關注這些事情。如果你看一下我們的 Khoemacau 交易，你會發現我們實際上已經投入了一筆債務融資，這大約占我們為該機會提供的資金規模的 10%。所以我們對這些事情持開放態度。

We obviously want to make sure that we're getting the core product right and getting that long-term optionality. Those products that we're seeing in the market, they're great to complete a package, but they don't get what shareholders really want in the long term, which is that long-term optionality. So the core still has to be around the main products that we offer.

我們顯然希望確保我們獲得正確的核心產品並獲得長期的選擇權。我們在市場上看到的那些產品，它們對於完善一攬子計劃非常有用，但它們並沒有滿足股東真正的長期需求，也就是長期可選性。因此核心仍然必須圍繞我們提供的主要產品。

Okay. Understood. It's just as you know, as it gets more competitive, right, everyone is trying to add something new to maybe entice the agreement. Okay. I really appreciate that. And thank you for the SK standard explanation because at the end of the day, like nobody wants to wake up and think reserves and resources have evaporated. Right, somewhere you will have the disclosure in your asset handbook and on your website that we can refer to.

好的。明白了。如你所知，隨著競爭越來越激烈，每個人都在嘗試添加一些新內容來吸引協議。好的。我真的很感激。感謝 SK 標準的解釋，因為歸根結底，沒有人願意醒來後發現儲備和資源已經蒸發了。好的，你們的資產手冊和網站上會有相關披露信息，我們可以參考一下。

Absolutely.

絕對地。

Lawson Winder, Bank of America Securities.

勞森·溫德（Lawson Winder），美國銀行證券。

Thank you for the update today. I wanted to ask about, I guess, political risk and Botswana in (inaudible), I think when you guys originated the (inaudible) acquisition, it was originally assessed as a very high-quality jurisdiction, very low risk. And I think the market agreed. Does the recently historic change in government change that assessment in any way?

感謝您今天的更新。我想問政治風險和博茨瓦納（聽不清楚），我認為當你們發起（聽不清楚）收購時，它最初被評估為一個非常高品質的司法管轄區，風險非常低。我認為市場也同意這一點。最近政府的歷史性變革是否會改變這項評估？

I think it's too early to tell. I mean, the election just happened. And obviously, there's what was it, six decades of one party running the country, and now we've got a new one. Through everything I've read, they're going to have their hands full, at least they're going to be focused on the relationship with (inaudible). But after that, we'll just have to see.

我認為現在說還為時過早。我的意思是，選舉剛結束。顯然，六十年來我們一直由一個政黨執政，而現在我們有了一個新的政黨。從我所讀到的一切來看，他們將會忙得不可開交，至少他們會專注於與（聽不清楚）。但在那之後，我們就只能拭目以待了。

We haven't seen anything in the press that would make us change our assessment. And I'll leave it at that. I don't know, Martin, is there anything because you were just there. And I think we've recently spoken to the projects, is there anything you would add to that?

我們還沒有在媒體上看到任何能讓我們改變評估的報導。我就講到這裡。馬丁，我不知道有什麼事，因為你剛剛在那裡。我想我們最近已經討論過這些項目，您還有什麼要補充嗎？

No. I mean we've obviously contacted the company. When we were on site, we talked to them about the upcoming elections. They did not have I think it was a bit of a surprise to everyone in Botswana, the results of the elections. I think that it was more expected that a coalition government would be formed.

不。我的意思是我們顯然已經聯繫過該公司了。當我們到達現場時，我們與他們談論即將舉行的選舉。他們沒有，我想選舉結果對博茨瓦納的每個人來說都有點意外。我認為，組成聯合政府是更令人期待的。

The outright win by the new party was a surprise. But in talking to them over the past few days about the results, they don't have any particular concerns in the short term certainly, and they believe that the expansion at the mine is actually going to be seen well by the government who are obviously looking to improve employment within the country. So no particular concerns at the moment, Lawson.

新政黨的徹底勝利令人意外。但在過去幾天與他們談論結果時，他們肯定在短期內沒有任何特別的擔憂，他們相信礦場的擴張實際上會得到政府的認可，政府顯然希望改善國內的就業狀況。因此目前沒有什麼特別的擔心，勞森。

Okay. Fantastic. And then thinking about the deal pipeline and potential deals going forward, I mean, one is, how is your appetite today for further deals in Africa? And then looking at the pipeline, from which jurisdictions are you predominantly seeing potential transactions?

好的。極好的。然後考慮未來的交易管道和潛在交易，我的意思是，第一，你今天對在非洲的進一步交易有何興趣？然後看一下管道，您主要看到哪些司法管轄區的潛在交易？

Dan, I'll give that right back to you.

丹，我會把它還給你的。

Yes, sure. So I think, Lawson, we certainly do look at areas in Africa. We have -- as you know, we have a couple of investments there already. And so we'll selectively look at areas there. We do see things that pop up from time to time, and we'll spend the time to evaluate.

是的，當然。因此我認為，勞森，我們確實關注非洲地區。正如你所知，我們已經在那裡進行了一些投資。因此我們將有選擇地關注那裡的區域。我們確實會看到不時出現的事情，我們會花時間進行評估。

But we're really looking for safe jurisdictions, as you know, and right now, most of the opportunities fit in that category through the Americas and places like Australia. So it fits with where we are with our risk profile in general, which is which is great to see. And I think it's just a function of the market right now.

但如你所知，我們確實在尋找安全的司法管轄區，目前，大多數機會都屬於這一類，透過美洲和澳洲等地。因此，這符合我們整體的風險狀況，這是令人高興的。我認為這只是目前市場的功能。

As I mentioned, to Tanya. It's a pretty robust market right now. So there are a lot of opportunities to look at. We're not having to deviate and look at things that we may not be very comfortable with.

正如我向 Tanya 提到的。目前這個市場相當活躍。因此有很多機會可以關注。我們沒必要偏離主題去看待那些我們可能不太滿意的事情。

Okay. Great. And then looking to 2025, I mean, it's very early at this point, but I'm sure you have started some of your 2025 planning discussion. I mean, directionally with quite a few number of new assets starting up and ramping up. I mean, it seems like there's a potential for pretty material growth in GEOs into 2025.

好的。偉大的。然後展望 2025 年，我的意思是，現在還為時過早，但我相信你們已經開始了一些 2025 年規劃討論。我的意思是，從方向上看，相當多的新資產正在啟動和增加。我的意思是，到 2025 年，GEO 似乎有相當大的成長潛力。

But I mean there's obviously a lot of big unknowns as well that I don't think we have a lot of great insight into right now, particularly some of the (inaudible) assets. I mean, would it be fair to characterize the risk to 2025 GEO guidance to higher than '24 more so than lower than '24?

但我的意思是，顯然還有很多未知數，我認為我們現在對這些金額還沒有太多的了解，特別是一些（聽不清楚）資產。我的意思是，將 2025 年 GEO 指導的風險定性為高於 '24 而不是低於 '24 是否公平？

Yes, Lawson, I mean, I'd love to give you a steer here, but I've learned over the years that surprises go both ways. There are a number of reasons to be positive about what's going on in our portfolio. But I will tell you at the beginning of this year when Barrick's Cortez production went from 870,000 to a range of 620 to 680 didn't expect it. And those are the kinds of things that can take what is a positive picture and mute the positive effects.

是的，勞森，我的意思是，我很樂意在這裡給你一些指導，但多年來我已經了解到，驚喜是雙向的。有許多理由讓我們對我們的投資組合的進展感到樂觀。但我要告訴你，今年年初，當巴里克的 Cortez 產量從 870,000 降至 620 至 680 的範圍內時，我並沒有想到這一點。這些都是會破壞正面形象並削弱其正面影響的事情。

So look, we don't really start thinking about -- of course, we have mine plans, we have estimates, but it's really when the operators start coming out with their guidance that we're going to really have a better sense for what our numbers are, and I expect we'll come out with '25 guidance along the same time frame as we usually do.

所以，我們並沒有真正開始思考——當然，我們有開採計劃，有估算，但只有當運營商開始發布他們的指導時，我們才能真正更好地了解我們的數字是，我預計我們將在與往常相同的時間範圍內推出25 年指導。

(Operator Instructions) We have no further questions, and so this concludes today's call. Thank you, everyone, for joining us today. You may now disconnect your lines.

（操作員指示）我們沒有其他問題，今天的電話會議到此結束。感謝大家今天的參與。現在您可以斷開線路了。