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RGLD > SEC Filings for RGLD > Form 8-K on 6-Nov-2009All Recent SEC Filings

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Form 8-K for ROYAL GOLD INC


6-Nov-2009

Regulation FD Disclosure


Item 7.01 Regulation FD Disclosure

During the quarter ended September 30, 2009, Royal Gold, Inc. (the "Company") finalized the purchase accounting for the Barrick royalty portfolio acquisition. The Company has allocated the total purchase price of $181.3 million, plus direct transaction costs of approximately $3.1 million, to the acquired royalty interests according to their relative fair market values as follows:

                                                                                                                              (Amounts in thousands)
                                                                                       Final Purchase              Final Purchase                Final Purchase
                                              Royalty (Gold unless                   Price - Production          Price - Development           Price - Exploration              Total
Mine                                           otherwise stated)                          Stage(1)                    Stage(2)                      Stage(3)                Purchase Price
Mulatos(4)                          1.0%-5.0% sliding-scale NSR                     $             36,000        $                   -         $               4,650        $         40,650
Canadian Malartic                   2.0%-3.0% sliding-scale NSR                                        -                       35,500                         4,800                  40,300
Allan                               $0.36-$1.44 per ton sliding-scale;
                                    $0.25 per ton (potash)                                        17,000                            -                             -                  17,000
Siguiri                             0.0%-1.875% sliding-scale NSR                                 11,000                            -                             -                  11,000
Mt. Goode (Cosmos South)            1.50% NSR (nickel)                                             5,000                            -                         3,100                   8,100
El Toqui                            1.0%-3.0% sliding-scale NSR                                                                                                                        5,51
                                    (gold and zinc)                                                4,300                            -                         1,210                       0
Wharf                               0.0%-2.0% sliding-scale NSR                                    3,100                            -                           575                   3,675
Balcooma                            1.5% NSR (copper and zinc)                                     2,800                            -                           625                   3,425
Twin Creeks                         2.0% GPR                                                       1,600                            -                           825                   2,425
Others                              Various                                                            -                       22,350                        29,968                  52,318

                                    Total Purchase Price                            $             80,800        $              57,850         $              45,753        $        184,403

(1) Royalty is currently in production and is depleted using units of production method.

(2) Royalty (value) is associated with proven and probable reserves but is currently not in production or subject to depletion.

(3) Royalty (value) is not currently associated with proven and probable reserves or subject to depletion.

(4) Value represents the additional portion of the Mulatos royalty acquired from Barrick and does not include the value of the Mulatos royalty previously owned by the Company. Please refer to Note 3 of the Notes to Consolidated Financial Statements in the Company's Quarterly Report on Form 10-Q for the period ended September 30,2009, for the total value of the Mulatos royalty.


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