EARNINGS PER SHARE ("EPS")

6 Months Ended

Dec. 31, 2011

EARNINGS PER SHARE ("EPS")

EARNINGS PER SHARE ("EPS")

8.             EARNINGS PER SHARE (“EPS”)

Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities.  Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method.  The Company’s unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared.  The Company’s unexercised stock options, unexercised SARs and unvested performance stock do not contain rights to dividends.  Under the two-class method, the earnings used to determine basic earnings per common share are reduced by an amount allocated to participating securities.  Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share.

The following tables summarize the effects of dilutive securities on diluted EPS for the period:

	For The Three Months Ended				For The Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2011		2010		2011		2010
	(in thousands, except share data)				(in thousands, except share data)
Net income available to Royal Gold common stockholders	$	23,411	$	18,312	$	45,906	$	30,144
Weighted-average shares for basic EPS	55,329,463		55,043,160		55,259,009		55,014,930
Effect of other dilutive securities	245,351		265,549		274,239		264,263
Weighted-average shares for diluted EPS	55,574,814		55,308,709		55,533,248		55,279,193
Basic earnings per share	$	0.42	$	0.33	$	0.83	$	0.55
Diluted earnings per share	$	0.42	$	0.33	$	0.82	$	0.55

Our calculation of weighted average shares includes all of our outstanding stock: common stock and exchangeable shares.  Exchangeable shares are the equivalent of common shares in that they have the same dividend rights and share equitably in undistributed earnings and are exchangeable on a one-for-one basis for shares of our common stock.