XML 28 R10.htm IDEA: XBRL DOCUMENT
v3.19.1

Note 4 - Investment in the Joint Venture Company | 9 Months Ended
--- | ---
Mar. 31, 2019
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 4 . Investment in the Joint Venture Company The Company recorded its investment at the historical book value of the assets contributed to the Joint Venture Company which was approximately $1.4 million. As of March 31, 2019, Royal Gold has contributed approximately $33.9 million to the Joint Venture Company, and earned a cumulative economic interest of 40.0%. As of March 31, 2019, the Company held a 6 0.0% economic interest in the Joint Venture Company. The following table is a roll-forward of our investment in the Joint Venture Company from January 8, 2015 ( inception) to March 31, 2019:
|  | Investment |
|  | in Peak Gold, LLC |
Investment balance at June 30, 2014 |  | $ | — |
Investment in Peak Gold, LLC, at inception January 8, 2015 |  |  | 1,433,886 |
Loss from equity investment in Peak Gold, LLC |  |  | (1,433,886 | )
Investment balance at June 30, 2015 |  | $ | — |
Investment in Peak Gold, LLC |  |  | — |
Loss from equity investment in Peak Gold, LLC |  |  | — |
Investment balance at June 30, 2016 |  | $ | — |
Investment in Peak Gold, LLC |  |  | — |
Loss from equity investment in Peak Gold, LLC |  |  | — |
Investment balance at June 30, 2017 |  | $ | — |
Investment in Peak Gold, LLC |  |  | 2,580,000 |
Loss from equity investment in Peak Gold, LLC |  |  | (2,580,000 | )
Investment balance as June 30, 2018 |  | $ | — |
Investment in Peak Gold, LLC |  |  | 3,210,000 |
Loss from equity investment in Peak Gold, LLC |  |  | (3,210,000 | )
Investment balance at March 31, 2019 |  | $ | — |
The following table presents the condensed balance sheet for the Joint Venture Company as of March 31, 2019 and June 30, 2018:
|  | March 31, 2019 |  |  | June 30, 2018 |
ASSETS |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 134,158 |  |  | $ | 2,628,195 |
Mineral properties |  |  | 1,433,886 |  |  |  | 1,433,886 |
TOTAL ASSETS |  | $ | 1,568,044 |  |  | $ | 4,062,081 |
LIABILITIES AND MEMBERS’ EQUITY |  |  |  |  |  |  |  |
Accounts payable and other liabilities |  | $ | 375,773 |  |  | $ | 2,403,257 |
TOTAL LIABILITIES |  |  | 375,773 |  |  |  | 2,403,257 |
MEMBERS’ EQUITY |  |  | 1,192,271 |  |  |  | 1,658,824 |
TOTAL LIABILITIES AND MEMBERS’ EQUITY |  | $ | 1,568,044 |  |  | $ | 4,062,081 |
The Company’s share of the Joint Venture Company’s results of operations for the three and nine months ended March 31, 2019 was a loss of approximately $0.2 million and $3.5 million, respectively. The Company’s share in the results of operations for the three and nine months ended March 31 , 2018 was a loss of approximately $0.3 million. and $3.4 million, respectively. The Joint Venture Company loss does not include any provisions related to income taxes as the Joint Venture Company is treated as a partnership for income tax purposes. As of March 31, 2019 and June 30, 2018, the Company’s share of the Joint Venture Company’s inception-to-date cumulative loss of approximately $30.4 million and $27.0 million, respectively, exceeded the historical book value of our investment in the Joint Venture Company, of $1.4 million. Therefore, the investment in the Joint Venture Company had a balance of zero as of March 31, 2019 and June 30, 2018. The Company is currently obligated to make additional capital contributions to the Joint Venture Company in proportion to its percentage interest in the Joint Venture Company. Failure to make such additional capital contributions would cause the Company's ownership in the Joint Venture Company to be diluted. Therefore, the Company only records losses up to the point of its cumulative investment which was approximately $7.2 million as of December 31, 2018. The portion of the cumulative loss that exceeds the Company’s investment will be suspended and recognized against earnings, if any, from the Company’s investment in the Joint Venture Company in future periods. The suspended losses for the period from inception to March 31, 2019 are approximately $23.2 million. The following table presents the condensed results of operations for Joint Venture Company for the three and nine month periods ended March 31, 2019 and 2017:
|  | Three Months Ended |  |  | Three Months Ended |  |  |  | Nine Months Ended |  |  |  | Nine Months Ended |  |  | Period from Inception January 8, 2015 to |
|  | March 31, 2019 |  |  | March 31, 2018 |  |  |  | March 31, 2019 |  |  |  | March 31, 2018 |  |  | March 31, 2019 |
EXPENSES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exploration expense |  | $ | 215,930 |  |  | $ | 356,092 |  |  | $ | 4,403,170 |  |  | $ | 4,450,614 |  |  | $ | 32,956,779 |
General and administrative |  |  | 130,625 |  |  |  | 207,352 |  |  |  | 1,413,383 |  |  |  | 902,178 |  |  |  | 6,948,726 |
Total expenses |  |  | 346,555 |  |  |  | 563,444 |  |  |  | 5,816,553 |  |  |  | 5,352,792 |  |  |  | 39,905,505 |
NET LOSS |  | $ | 346,555 |  |  | $ | 563,444 |  |  | $ | 5,816,553 |  |  | $ | 5,352,792 |  |  | $ | 39,905,505 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration