Mining News: Northern Neighbors: Mount Milligan gold deliveries rise

Royal Gold Inc. April 17 reported that its wholly owned subsidiary, RGLD Gold AG, received about 26,200 ounces of gold from the Mount Milligan copper-gold mine in British Columbia for the quarter ended March 31. As part of its purchase and sale agreement with Thompson Creek Metals Company Inc., Royal Gold can purchase 52.25 percent of the payable gold produced at Mount Milligan for US$435 per ounce, or the prevailing gold price, whichever is less. Royal Gold currently sells most of the delivered gold within three weeks of receipt, and recognizes revenue on its streaming transactions when the metal is sold. For the quarter ended March 31, Royal Gold sold about 24,200 ounces of gold from Thompson Creek, a nearly 70 percent increase over the December quarter. In addition, Royal Gold had roughly 6,800 ounces remaining in inventory at the end of the quarter. At March 31, Royal Gold had one provisionally priced final shipment of about 5,000 ounces outstanding and was not included in inventory. Hereafter, all deliveries to Royal Gold will be based solely on final settlement timing and volumes, subject to Thompson Creek’s smelter contracts, which can take three to five months after concentrate is produced at the mine.

- Shane Lasley