Note 8 - Investment in Peak Gold, LLC |
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Equity Method Investments and Joint Ventures Disclosure [Text Block] | 8. Investment in Peak Gold, LLCThe 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 June 30, 2018, Royal Gold has contributed approximately $31.7 million to the Joint Venture Company, and earned a cumulative interest of approximately 40.0%. Therefore, as of June 30, 2018, the Company holds a 60.0% interest in the Joint Venture Company. As of June 30, 2017, the Company held a 70.5% interest in the Joint Venture Company. The Royal Gold Initial Contribution did not entitle Royal Gold to a percentage interest in the Joint Venture Company. During fiscal year 2018 the Company contributed $2.6 million to the Joint Venture Company. The Company did not make any contributions during fiscal year 2017. The following table is a roll-forward of our investment in the Joint Venture Company from January 8, 2015 ( inception) to June 30, 2018:
The following table presents the condensed balance sheet for Peak Gold, LLC as of June 30, 2018 and 2017:
The Company's share of the Joint Venture Company's results of operations for the year ended June 30, 2018 was a loss of $5.8 million. The Company's share in the results of operations for the year ended June 30, 2017 was a loss of $10.3 million. The Peak Gold, LLC loss does not include any provisions related to income taxes as Peak Gold, LLC is treated as a partnership for income tax purposes. As of June 30, 2018 and June 30, 2017, the Company's share of the Joint Venture Company's inception-to-date cumulative loss of $27.0 million and $21.2 million, respectively, exceeds the sum of the historical book value of our initial investment in Peak Gold, LLC, of $1.4 million and our subsequent contributions of $2.6 million. Therefore, the investment in Peak Gold, LLC had a balance of zero as of June 30, 2018. The investment also had a balance of zero at June 30, 2017. The Company is currently not obligated to make additional capital contributions to the Joint Venture Company and therefore only records losses up to the point of its cumulative investment which is $4.0 million. 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 June 30, 2018 are $22.9 million. The following table presents the condensed results of operations for Peak Gold, LLC for the periods ended June 30, 2018 and 2017:
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