DENVER--(BUSINESS WIRE)--
Royal Gold, Inc. (NASDAQ:RGLD; TSX:RGL) (“Royal Gold” or the
“Company”) announced that Barrick Gold Corporation (“Barrick”) today
reported it has decided to temporarily suspend construction activities
at Pascua-Lama, except those required for environmental protection and
regulatory compliance. Barrick said its decision to re-start will depend
on improved project economics such as go-forward costs, the outlook for
metal prices, and reduced uncertainty associated with legal and other
regulatory requirements. Barrick also indicated that its decision will
maintain the option value of this major world class resource and its
potential to generate significant cash flows during its 25 year mine
life and beyond.
Royal Gold holds a 0.78% to 5.23% sliding scale net smelter royalty on
the Chilean side of the Pascua-Lama project and is not responsible for
capital costs or other costs of the project. The Company does not expect
Barrick’s decision will have any impact on the carrying value of its
investment in the royalty at Pascua-Lama.
CORPORATE PROFILE
Royal Gold is a precious metals royalty and stream company engaged in
the acquisition and management of precious metal royalties, streams, and
similar production based interests. The Company owns interests on 204
properties on six continents, including interests on 36 producing mines
and 21 development stage projects. Royal Gold is publicly traded on the
NASDAQ Global Select Market under the symbol “RGLD,” and on the Toronto
Stock Exchange under the symbol “RGL.” The Company’s website is located
at www.royalgold.com.
Cautionary “Safe Harbor” Statement Under the Private Securities
Litigation Reform Act of 1995: With the exception of historical
matters, the matters discussed in this press release include
forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from projections or
estimates contained herein. Such forward-looking statements include
statements regarding the timing of Barrick’s environmental and
regulatory compliance, construction and initial production from and
capital costs related to Barrick’s Pascua-Lama project, as well as
possible slowdown or suspension of work on the project. Factors that
could cause actual results to differ materially from such
forward-looking statements include, among others, Barrick’s future
decisions about how to proceed with the project, its ability to bring
the project into production on time and with capital costs in accordance
with any revised budget, the outcome of legal and regulatory proceedings
regarding the project, precious metals prices, economic and market
conditions, as well as other factors described in our Annual Report on
Form 10-K, and other filings with the SEC. Most of these factors are
beyond the Company’s ability to predict or control. The Company
disclaims any obligation to update any forward-looking statement made
herein. Readers are cautioned not to put undue reliance on
forward-looking statements.
Source: Royal Gold, Inc.