3.ROYALTY AND STREAM INTERESTS

The following tables summarize the Company’s royalty and stream interests as of March 31, 2016 and June 30, 2015.

As of March 31, 2016 (Amounts in thousands):	Cost		Accumulated Depletion			Impairments			Net
Production stage royalty interests:
Voisey’s Bay	$	205,724	$	(85,671	)	$	—		$	120,053
Peñasquito	99,172		(29,439		)	—			69,733
Holt	34,612		(16,391		)	—			18,221
Cortez	10,630		(9,987		)	—			643
Other	531,734		(333,196		)	(18,605		)	179,933

Total production stage royalty interests	881,872		(474,684		)	(18,605		)	388,583

Production stage stream interests:
Mount Milligan	783,046		(65,329		)	—			717,717
Pueblo Viejo	610,404		(13,344		)	—			597,060
Andacollo	388,182		(12,497		)	—			375,685
Wassa/Bogoso/Prestea	76,427		(6,000		)	—			70,427

Total production stage stream interests	1,858,059		(97,170		)	—			1,760,889

Production stage royalty and stream interests	2,739,931		(571,854		)	(18,605		)	2,149,472

Development stage royalty interests:
Pascua-Lama	380,657		—			—			380,657
Other	66,415		—			—			66,415

Total development stage royalty interests	447,072		—			—			447,072

Development stage stream interests:
Rainy River	100,684		—			—			100,684
Other	87,881		(153		)	(75,702		)	12,026

Total development stage stream interests	188,565		(153		)	(75,702		)	112,710

Development stage royalty and stream interests	635,637		(153		)	(75,702		)	559,782

Exploration stage royalty interests	155,997		—			(1,811		)	154,186
Exploration stage stream interests	—		—			—			—

Total royalty and stream interests	$	3,531,565	$	(572,007	)	$	(96,118	)	$	2,863,440

As of June 30, 2015 (Amounts in thousands):	Cost		Accumulated Depletion			Impairments			Net

Production stage royalty interests:
Andacollo	$	272,998	$	(65,467	)	$	—		$	207,531
Voisey’s Bay	150,138		(76,141		)	—			73,997
Peñasquito	99,172		(24,555		)	—			74,617
Mulatos	48,092		(32,313		)				15,779
Holt	34,612		(13,950		)	—			20,662
Robinson	17,825		(12,748		)				5,077
Cortez	10,630		(9,933		)	—			697
Other	495,763		(265,727		)	(27,586		)	202,450

Total production stage royalty interests	1,129,230		(500,834		)	(27,586		)	600,810

Production stage stream interests:
Mount Milligan	783,046		(35,195		)	—			747,851

Production stage royalty and stream interests	1,912,276		(536,029		)	(27,586		)	1,348,661

Development stage royalty interests:
Pascua-Lama	372,105		—			—			372,105
Other	67,017		—			—			67,017

Total development stage royalty interests	439,122		—			—			439,122

Development stage stream interests:
Phoenix Gold	75,843		—			—			75,843
Other	8,183		—			(603		)	7,580

Total development stage stream interests	84,026		—			(603		)	83,423

Development stage royalty and stream interests	523,148		—			(603		)	522,545

Exploration stage royalty interests	212,552		—			(150		)	212,402

Total royalty and stream interests	$	2,647,976	$	(536,029	)	$	(28,339	)	$	2,083,608

Impairment of royalty and stream interests and royalty receivables

In accordance with our impairment accounting policy discussed in Note 1, impairments in the carrying value of each royalty or stream interest are measured and recorded to the extent that the carrying value in each royalty or stream interest exceeds its estimated fair value, which is generally calculated using estimated future discounted cash-flows. As part of the Company’s regular asset impairment analysis, which included the presence of impairment indicators, the Company recorded impairment charges for the three and nine months ended March 31, 2016 and 2015, as summarized in the following table:

	For The Three Months Ended March 31,				For The Nine Months Ended March 31,
	2016		2015		2016			2015
	(Amounts in thousands)				(Amounts in thousands)
Phoenix Gold(1)	$	75,702	$	—	$	75,702		$	—
Inata(2)	11,982		—		11,982			—
Wolverine(2)	5,307		—		5,307			25,967
Other	3,127		—		3,127			2,372

Total impairment of royalty and stream interests	$	96,118	$	—	$	96,118		$	28,339
Inata	2,855		—		2,855			—
Wolverine	—		—		(385		)	2,996

Total impairment of royalty and stream interests and royalty receivables	$	98,973	$	—	$	98,588		$	31,335

(1)

Included in Other development stage stream interests in the above royalty and stream interests table.

(2)

Included in Other production stage royalty interests in the above royalty and stream interests table.

Phoenix Gold

RGLD Gold owns the right to purchase 6.30% of any gold produced from the Phoenix Gold Project until 135,000 ounces have been delivered, and 3.15% thereafter. The Phoenix Gold Project is located in Red Lake, Ontario, Canada, and operated by Rubicon Minerals Corporation (“Rubicon”). On January 11, 2016, Rubicon provided an updated geologic model and mineralized material statement for the Phoenix Gold Project, which included a significant reduction in mineralized material compared to previous statements provided by Rubicon. Rubicon also announced that they are evaluating strategic alternatives, including merger and divestiture opportunities either at the corporate or asset level, obtaining new financing or capital restructurings. A significant reduction in mineralized material, along with recent decreases in the long-term metal price assumptions used by the industry, are indicators of impairment.

During the quarter ended March 31, 2016, the Company independently evaluated the updated geologic model and mineralized material statement in an effort to properly assess the recoverability of our carrying value. The Company’s technical evaluation was completed by internal and external qualified personnel and included an econcomic analysis of the Phoenix Gold Project and a detailed review of the geological model and mineralized material statement.

Based upon the results of the Company’s review of the updated geological model and mineralized material statement, and other factors, it was determined that our stream interest at the Phoenix Gold Project should be written down to zero as of March 31, 2016. The Company will continue to pursue commercial alternatives for potential recovery of our investment.

Inata

The Company owns a 2.5% gross smelter return royalty on all gold and silver produced from the Inata mine, located in Burkina Faso, West Africa, and operated by a subsidiary of Avocet Mining PLC (“Avocet”). The Company’s carrying value for its royalty interest at Inata was approximately $12.0 million as of December 31, 2015. As part of the Company’s impairment assessment for the three months ended March 31, 2016, the Company was notified of an updated mine plan at Inata, which included a significant reduction in the life of the mine. Based upon our review of the updated mine plan, it was determined that our royalty interest should be written down to zero as of March 31, 2016.

The Company also has a royalty receivable of approximately $2.8 million associated with past due royalty payments on the Inata interest. As a result of Avocet’s financial and operational difficulties and our review of the updated mine plan at Inata, the Company believes payment of the receivable is uncertain and provided for an allowance against the entire royalty receivable as of March 31, 2016. The Company will continue to pursue collection of all past due payments.

Wolverine

The Company owns a 0.00% to 9.445% sliding-scale NSR royalty on all gold and silver produced from the Wolverine underground mine and milling operation located in Yukon Territory, Canada, and formerly operated by Yukon Zinc Corporation (“Yukon Zinc”). As discussed further in the Company’s Fiscal 2015 10-K, the Company recognized an impairment of approximately $26.0 million on the Wolverine royalty interest and an allowance against the entire royalty receivable of approximately $3.0 million during the three months ended December 31, 2014. The Company’s remaining carrying value at Wolverine as of December 31, 2015, was approximately $5.3 million.

During the second half of calendar 2015, Yukon Zinc completed bankruptcy proceedings in the Supreme Court of British Columbia and during the quarter ended March 31, 2016, we were made aware of no further intentions to recommission the mine. Based upon the updated developments and limited remaining mineralized material at Wolverine, the Company determined the remaining carrying value at Wolverine should be written down to zero as of March 31, 2016.

Other

As part of the Company’s regular asset impairment analysis during the three months ended March 31, 2016, including consideration of recent operator/property updates and developments, the Company determined that one production stage royalty interest and three exploration stage royalty interests should be written down to zero for a total impairment of approximately $3.1 million.