Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Scotia Capital Precious Metals Conference 2009
32 slides from Royal Gold's conference presentation, December 2009
Slide 1: Scotia Capital Precious Metals Conference 2009
Scotia Capital Precious Metals Conference 2009 December 2009
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act
Cautionary Statement Under the Private Securities Litigation Reform Act This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other f
Slide 3: Key Attributes
Key Attributes Efficient and effective business model Proven performance Core royalties on high-quality, long-lived mines Strong development pipeline Growing cash flow Royalty Asset Distribution Revenue by Metal Type (number of properties) (fiscal 2009) 13% Producing 3% Development Evaluation Explor
Slide 4: Performance
fp if A ROYALGOLD,ING The Gold Standard of Royalty Companies Performance
Slide 5: Execution on Growth Strategy
Execution on Growth Strategy Increased reserves Portfolio growth Diversification of revenue Strong financial position Enhanced shareholder return
Slide 6: Reserve Growth
Reserve Growth 1 Gold reserves increased 30% to 64.2M ounces 2 Precious metals account for 82% of gold equivalent reserves 3 Organic growth has offset consumption over the last five years Gold Reserves Subject to Royalty Interests Gold Reserves Subject to Royalties (calendar years) 120 60 100 Gold E
Slide 7: Asset Growth (December 2004)
Asset Growth (December 2004) 1 1 Pipeline, including Crossroads deposit
Slide 8: Asset Growth (December 2009)
Asset Growth (December 2009) 1 Pipeline, including Crossroads deposit
Slide 9: Asset Growth (December 2009)
Asset Growth (December 2009) 1 Pipeline, including Crossroads deposit 2 Royal Gold acquired this property in the Battle Mountain transaction. The parties claiming interests in the mining concessions subject to this royalty have disputed any royalty obligation 3 Closing of Andacollo transaction pendi
Slide 10: Asset Growth (December 2009)
Asset Growth (December 2009) 1 Pipeline, including Crossroads deposit 2 Royal Gold acquired this property in the Battle Mountain transaction. The parties claiming interests in the mining concessions subject to this royalty have disputed any royalty obligation 3 Closing of Andacollo transaction pendi
Slide 11: Asset Growth (December 2009)
Asset Growth (December 2009) 1 Pipeline, including Crossroads deposit 2 Royal Gold acquired this property in the Battle Mountain transaction. The parties claiming interests in the mining concessions subject to this royalty have disputed any royalty obligation 3 Closing of Andacollo transaction pendi
Slide 12: Revenue Diversification
Revenue Diversification 80 70 60 millions) 50 ($ mi 40 30 20 10 2005 2006 2007 2008 2009 (fiscal years ended June 30) Cortez - Pipeline Troy Peñasquito Dolores Twin Creeks Los Chancas Goldstrike - SJ Claims Robinson Joe Mann Benso El Toqui Leeville Mulatos El Limon El Chanate Mt. Goode Bald Mountain
Slide 13: Principal Producing Properties
Principal Producing Properties Cortez (Pipeline Mining Complex – Nevada) Operator: Barrick Royalty: GSR1 and GSR2: 0.4% to 5.0% GSR3: 0.71% NVR1: 0.39% CY 2009 Production (Est.): 346,000 oz (Au) FY 2009 Revenue: $16.3M Reserves: 1 4.3M oz (Au) Taparko (Burkina Faso) Operator: High River Royalty: TB-
Slide 14: Principal Producing Properties
Principal Producing Properties Leeville (Nevada) Operator: Newmont Royalty: 1.8% NSR CY 2009 Production (Est.): 426,000 oz (Au) FY 2009 Revenue: $6.7M Reserves: 1 2.5M oz (Au) Mulatos (Mexico) Operator: Alamos Gold Royalty: 1.0% to 5.0% NSR CY 2009 Production (Est.): 2 160,000 oz (Au) FY 2009 Revenu
Slide 15: Strong Financial Growth
Strong Financial Growth Gross Financial Results Per Share Financial Results 90 2.25 80 2.00 70 1.75 60 1.50 llions) ($ millions ($ per share) 50 1.25 40 1.00 30 0.75 20 0.50 10 0.25 0 0.00 2005 2006 2007 2008 1 2009 2 2005 2006 2007 2008 1 2009 2,3 (fiscal years ended June 30) (fiscal years ended Ju
Slide 16: Property Overview
Tq Ip A ROYALGOLD,ING The Gold Standard of Royalty Companies Property Overview
Slide 17: Key Growth Properties
The Gold Standard of Royalty Compantes
Slide 18: Peñasquito (Goldcorp – Mexico)
Peñasquito (Goldcorp – Mexico) Reserve Profile 50 Royalty: 2.0% NSR (all metals) Gold Equivalent Ounces 4 40 Reserves: 1,2 17.4M oz (Au) 1.0B oz (Ag) (millions) 30 CY’09 production (est.): 20 70,000 oz (Au) 10 2.3M oz (Ag) Estimated production start-up: 2006 2007 2008 Total Gold Reserves Silver Rese
Slide 19: Dolores (Minefinders – Mexico)
Dolores (Minefinders – Mexico) Royalty: 3.25% NSR (Au) 2.0% NSR (Ag) Reserves: 1 2.4M oz (Au) 126.6M oz (Ag) CY’09 production (est.): 2 80,000 oz (Au) 1.4M oz (Ag) Mine life: 15 years Production Profile 250 Annual royalty revenue potential: 200 ~ $5.0M 3 Gold Equivalent Ounces 3 150 (thousands) 100
Slide 20: Andacollo (Teck – Chile)
Andacollo (Teck – Chile) Royalty: 75% of gold until 910,000 payable ounces; 50% thereafter Ownership: 90% CDA (subsidiary of Teck Resources Limited) 10% Empresa Nacional de Minería (Chilean, state-owned mining company) Total consideration: $218M cash 1.2M shares Closing by January 29, 2010
Slide 21: Andacollo Hypogene Project
Andacollo Hypogene Project Sulfide plant production: Construction complete: 4Q’09 Commercial production: first half 2010 55,000 tonnes/day mill capacity Proven and probable reserves: 1 1.6M oz Au (394M tonnes at 0.13 gpt) Estimated annual production: 2 53,000 oz gold 76,000 tonnes copper 3 Estimated
Slide 22: Pascua-Lama (Barrick – Chile)
Pascua-Lama (Barrick – Chile) Royalty: 0.16% to 1.08% NSR > $800/oz gold = 1.08% royalty rate Reserves: 1,2 14.6M oz (Au) Estimated production: 3 Start-up – 2013 750,000 to 800,000 ounces of gold (average during first five years) 600,000 to 700,000 ounces of gold (average during life of mine) $200 t
Slide 23: Canadian Malartic (Osisko – Canada)
Canadian Malartic (Osisko – Canada) Royalty: 1 2.0% to 3.0% NSR Reserves: 2 4.7M oz (Au) Estimated production start-up: 2011 Mine life: 10 years Annual royalty revenue potential: ~ $6.0M 3 Production Profile 3 700 (thousands) 600 Gold Ounce 500 400 300 200 100 2011 2012 2013 2014 2015 2016 2017 2018
Slide 24: Holt (St Andrew Goldfields – Canada)
Holt (St Andrew Goldfields – Canada) Royalty: 1 0.00013 X gold price (NSR) $1,000/oz gold = 13% royalty rate Party responsible for royalty in dispute Reserves: 2 0.5M oz (Au) Estimated production start-up: 2010 Mine life: 7 years Annual royalty revenue potential: Production Profile 3 120 ~ $8.0M 3 (
Slide 25: Drivers For Future Growth
Tq Ip A ROYALGOLD,ING The Gold Standard of Royalty Companies Drivers For Future Growth
Slide 26: Estimated Revenue Contribution – New Assets
Estimated Revenue Contribution – New Assets 1 100 90 80 70 60 ($ millions) 50 40 30 20 10 0 Dolores Andacollo Holt Peñasquito Canadian Pascua-Lama Estimated Total 2009 2010 2 2010 2 2011 2 Malartic 2013 2 New Revenue 2011 2 1 Refer to prior property slides for applicable footnotes 2 As estimated by
Slide 27: Estimated Revenue Contribution – New Assets
Estimated Revenue Contribution – New Assets 1 100 90 80 70 60 ($ millions) 50 40 30 20 10 0 Dolores Andacollo Holt Peñasquito Canadian Pascua-Lama Estimated Total Fiscal 2009 2009 2010 2 2010 2 2011 2 Malartic 2013 2 New Revenue Actual Royalty 2011 2 Revenue 1 Refer to prior property slides for appl
Slide 28: Declining World Gold Mine Production
Declining World Gold Mine Production Supply from Mine Production vs. Price Few Major Gold Discoveries 1 2,500 1,000 12 900 10 2,000 800 700 Number of Discoveries Tonnes 8 1,500 600 $ Per Ounce 500 6 1,000 400 4 300 500 200 2 100 0 0 0 Production Gold Price Source: CPM Group Source: Metals Economics
Slide 29: Expanding Money Supply and Deficit
Expanding Money Supply and Deficit Total Revenues and Outlays Exchange Value of the Dollar (Percentage of Gross Domestic Product) (Index, January 1997– 100) Source: Congressional Budget Office based on data from the Office of Sources: Congressional Budget Office; Federal Reserve Board Management and
Slide 30: Low Cost Structure
Low Cost Structure Insulated from increased operating costs No capital cost contributions required No environmental or closure costs incurred Total Cash Production Costs for Royal Gold’s Asset Nevada Gold Producers, 1996 – 2008 1 and Revenue Growth vs. Cost 950 140 850 120 750 100 ($ per ounce) 650
Slide 31: Financial Strength
Financial Strength Market Information (as of 11/23/09) Dividend Growth 0.36 NASDAQ: RGLD; TSX: RGL 0.28 0.32 0.26 Market cap: $2.2B 0.22 Average daily volume (TTM): 891,000 Shares Outstanding 2006 2007 2008 2009 2010 Common: 40.7M ($ per share per calendar year) Insider ownership: 8% Dividend Yield:
Slide 32: Royal Gold, Inc. Contact Details
ROYAL GOLD, INC. 1660 Wynkoop Street Denver, CO 80202-1132 PHONE 303.573.1660 FAX 303.595.9385 EMAIL info@royalgold.com WEB www.royalgold.com 32
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