Loading...
01/10 17:53
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Positive aspects include expected revenue growth from new projects and acquisitions, and a comfortable debt level. However, the lack of long-term guidance, uncertainty in new transactions, and potential bumps in costs and depreciation create concerns. The Q&A reveals management's cautious approach to providing timelines and estimates, which may lead to investor uncertainty. Overall, the balance of positive growth expectations and cautious management responses results in a neutral sentiment.
Earnings for the quarter $127 million or $1.92 per share, and after adjusting for nonrecurring costs related to the Sandstorm and Horizon transactions, a record $136 million or $2.06 per share.
Revenue for the third quarter A record $252 million, up 30% year-over-year. This increase was driven by higher metal prices (gold up 40%, silver up 34%, and copper up 6%) and strong portfolio performance.
Royalty revenue $86 million, up about 41% from the prior year quarter. This was due to strong revenue from Peñasquito, the Cortez CC Zone, LaRonde Zone 5, and Voisey's Bay, partially offset by weaker revenue from the Cortez Legacy Zone.
Stream segment revenue $166 million, up about 25% from last year. This increase was driven by higher sales from Andacollo, Rainy River, Mount Milligan, Khoemacau, and Wassa, partially offset by lower sales from Xavantina.
Adjusted EBITDA margin Over 80% for the quarter, supported by strong gold prices and low, stable cash G&A expenses.
Operating cash flow A record $174 million, up from $137 million in the prior period. The increase was primarily due to higher net cash proceeds from stream and royalty interests.
G&A expense $10.2 million, relatively unchanged. Cash G&A dropped to less than 3% of revenue for the quarter, showcasing business model efficiency.
DD&A expense Decreased to $33 million from $36 million. The decrease was primarily due to lower depletion rates in the stream segment, driven by reserve increases, particularly at Mount Milligan.
Interest and other expense Increased to $8.6 million, primarily due to higher average amounts outstanding under the revolving credit facility compared to the previous year.
Tax expense $29 million, up from $22 million, with an effective tax rate of 17.9%.
Gold Stream Transaction: Added First Quantum to the portfolio with a $1 billion gold stream transaction, receiving the first gold delivery in October.
Sandstorm and Horizon Acquisitions: Completed acquisition of Sandstorm Gold and Horizon Copper, adding quality producing and development assets to the portfolio.
Revenue Growth: Achieved record revenue of $252 million, a 30% increase from the prior year, driven by higher gold, silver, and copper prices.
Portfolio Diversification: Expanded portfolio with diversified assets, including Mara, Hod Maden, Platreef, and Oyu Tolgoi, enhancing growth potential and duration.
Mount Milligan Mine Life Extension: Extended mine life from 2036 to 2045, with potential for further extension through resource expansion and new tailings facility.
Cortez Fourmile Project: Preliminary economic assessment indicates potential production of 600,000-750,000 ounces annually over a 25-year mine life.
Debt Management: Drew $1.225 billion on the credit facility for acquisitions, with plans to repay by mid-2027 using future cash flows.
Shareholder Returns: Maintained quarterly dividend of $0.45 per share, reflecting focus on shareholder value.
Market Conditions: Potential risks from fluctuating gold, silver, and copper prices, which are primary revenue drivers. A decline in these prices could adversely impact revenue and profitability.
Regulatory Hurdles: Mount Milligan mine life extension project depends on government support and fast-track status, which could face delays or changes in regulatory policies.
Strategic Execution Risks: Integration challenges from the recent acquisitions of Sandstorm Gold and Horizon Copper, including potential delays in realizing synergies and additional acquisition-related costs.
Supply Chain Disruptions: Potential delays in the delivery of gold and other metals, as seen with the timing of initial gold delivery under the Kansanshi stream.
Economic Uncertainties: Higher interest expenses due to increased borrowing under the revolving credit facility, which could strain financial resources if economic conditions worsen.
Operational Risks: Dependence on successful mine life extensions and expansions, such as Mount Milligan and Fourmile, which are subject to technical, environmental, and operational challenges.
Mount Milligan Mine Life Extension: Centerra expects an increase in the mine life from 2036 to 2045, with potential for further extension through resource expansion, tailings facility raises, and other opportunities. The project has received fast-track status from the government of British Columbia.
Fourmile Exploration and Development: Barrick's preliminary economic assessment indicates potential production of 600,000 to 750,000 ounces annually over a 25-year mine life. Initial test stoping is expected shortly after underground development is completed by 2029, with potential for increased production rates as confidence in the ore body grows.
Kansanshi S3 Expansion: First Quantum's S3 expansion is complete and transitioning to operations. Copper production in Q4 2025 is expected to exceed Q3 levels. Monthly gold deliveries under the new stream are expected to reach a regular cadence, with total deliveries and sales of approximately 7,500 ounces in 2025.
Rainy River Gold Production: New Gold expects 2025 gold production to exceed the midpoint of the 265,000 to 295,000 ounce guidance range, supported by higher-grade ore processing and advancing underground development.
Khoemacau Expansion Project: MMG plans to complete the feasibility study by the end of 2025, with first concentrate production expected in 2028.
Cactus Copper Project: Arizona Sonoran's PFS results indicate a 22-year mine life with average copper production of 198 million pounds per year. A feasibility study is expected in the second half of 2026, with first copper cathode production anticipated in the second half of 2029.
Red Chris Block Cave Expansion: Newmont aims to deliver a development proposal to its Board by mid-2026. The project has been granted priority status under Canada's Major Projects Office Fast Track initiative.
Xavantina Gold Concentrate: Ero plans to market a high-grade gold concentrate over the next 12 to 18 months, supported by exploration efforts to extend mineralization limits.
MARA Development: Glencore submitted the RIGI application to the Argentine government in August, marking a significant step towards development.
Platreef Phase 1 Concentrator: Ivanhoe expects the first concentrate from the Phase 1 concentrator in mid- to late November 2025, with the project transitioning to operations.
Quarterly Dividend: Paid a quarterly dividend of $0.45 per share.
The earnings call presents a mixed outlook. Positive aspects include expected revenue growth from new projects and acquisitions, and a comfortable debt level. However, the lack of long-term guidance, uncertainty in new transactions, and potential bumps in costs and depreciation create concerns. The Q&A reveals management's cautious approach to providing timelines and estimates, which may lead to investor uncertainty. Overall, the balance of positive growth expectations and cautious management responses results in a neutral sentiment.
The earnings call showed strong financial performance with record earnings, increased revenue, and a higher adjusted EBITDA margin. The Q&A revealed a focus on deleveraging and strategic investments, which are positive indicators. While there were some uncertainties regarding individual asset performance and the Sandstorm transaction, overall guidance was maintained, and the dividend increase suggests confidence in financial stability. These factors, combined with no immediate buyback plan and a focus on debt reduction, indicate a positive short-term outlook for the stock price.
The earnings call highlights strong financial performance with a 30% revenue increase and significant earnings growth. The dividend increase and debt repayment enhance shareholder value. Despite some risks like regulatory changes and supply chain challenges, the overall outlook is supported by optimistic guidance and improved recovery rates. The Q&A session did not reveal major concerns, and the company's strategic initiatives, including portfolio expansion and production forecasts, are promising. These factors collectively suggest a positive stock price movement, though the absence of a market cap limits precise prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
