NEVADA — South Pipeline interest adds to Royal revenue

Net income of US$1.1 million (or 7 cents per share) was reported by Royal Gold (RGLD-Q) for the second quarter of its 1997 fiscal year, compared with a loss of US$268,647 in the same period last year.

Royal Gold’s 1997 fiscal second quarter ended Dec. 31, 1996. Income for the first half of the 1997 fiscal year totalled US$2.6 million, compared with a net loss of US$439,809 in the first half of the previous year. At year-end, the company held a working capital surplus of US$12.2 million.

The Denver-based company says the increased earnings relate to the receipt of US$4.8 million, attributable to a 20% net profits royalty interest on both the Crescent pit mill and heap-leach operation at the South Pipeline gold project. South Pipeline is operated by the Cortez joint-Venture, in which Placer Dome (PDG-T) has a 60% interest.

On its own, Royal Gold is exploring gold and diamond prospects in California and other parts of the western U.S.

The company holds a sizable land package in Nevada, including about 5,000 acres near the past-producing Buckhorn gold mine, in Eurkea Cty. The Nevada portfolio includes the Nad property, 4 miles southwest of the South Pipeline deposit in Lander Cty.

A drill program has been proposed for the Signal Peak property, 4 miles west of Homestake Mining’s West Archimedes gold deposit in Eureka Cty.