Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
DENVER-based Royal Gold Inc. (NASDAQ:RGLD), a $12.16 billion market cap company with impressive gross profit margins of 86%, has announced an updated employment contract for Senior Vice President of Corporate Development, Daniel Breeze. The amended agreement, effective since Tuesday, stipulates a new compensation package, including a base salary, bonus eligibility, and severance terms. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, suggesting strong operational execution.
Breeze’s new annual base salary is set at CHF 458,000, subject to potential increases at the company’s discretion in alignment with the Compensation, Nominating, and Governance Committee of Royal Gold’s Board of Directors. The contract also enables Breeze to partake in the company’s annual incentive bonus and equity award programs, with specific terms and conditions set by the company and the aforementioned committee.
In the event of termination, Breeze is entitled to severance pay equivalent to one year’s base salary and annual bonus, plus a prorated bonus. This amount increases to 1.5 times the base salary and annual bonus if the termination occurs within 24 months following a change in control, as defined in the contract.
The agreement also includes a non-compete clause, barring Breeze from engaging in competition with Royal Gold or its subsidiaries and from soliciting their employees, vendors, or business partners for a 12-month period after employment termination. The company’s strong position is reflected in its remarkable year-to-date return of 41.09% and its current trading near its 52-week high of $191.22.
The details of the amended and restated employment contract were filed with the SEC and are accessible in Exhibit 10.1 of the Form 8-K. This filing provides transparency on executive compensation practices and contractual obligations within Royal Gold, a company specializing in mineral royalty trading.
The information disclosed is based on a press release statement and is intended to provide shareholders and the public with key updates on the company’s executive management arrangements.
In other recent news, Royal Gold has provided its 2025 guidance for sales volume, anticipating gold sales between 210,000 to 230,000 ounces, silver sales from 2.7 to 3.3 million ounces, and copper sales reaching 13.5 to 16.0 million pounds. The company projects its depletion, depreciation, and amortization expenses to be between $126 to $142 million, with an effective tax rate of 17 to 22 percent. In addition, Royal Gold announced a quarterly dividend of $0.45 per share, payable on April 17, 2025, to shareholders of record as of April 4, 2025. Furthermore, BMO Capital Markets initiated coverage on Royal Gold with a Market Perform rating and a price target of $196, noting the company’s potential for robust free cash flow due to key asset developments. However, BMO also pointed out Royal Gold’s lower forward-looking growth compared to peers. Meanwhile, Royal Gold revised executive compensation agreements, setting new salary and severance terms for its top executives. Additionally, the company announced the resignation of board member Kevin McArthur, who will step down effective May 22, 2025, as he assumes a new role at First Quantum Minerals Ltd (TSX:FM). Royal Gold’s board will begin a search for his replacement.
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