Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BMO 26th Global Metals & Mining Conference 2017
17 slides from Royal Gold's conference presentation, Feb 28, 2017
Slide 1: BMO 26th Global Metals & Mining Conference
BMO 26th Global Metals & Mining Conference Tony Jensen, President and CEO February 28, 2017
Slide 2: Cautionary Statement
Cautionary Statement 2 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 factors that could cause actual results to differ
Slide 3: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 3 With just 21 employees and a scalable business model, our margins are significantly higher than the Margin 79% senior gold producers and the S&P 5002. Gross 1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue
Slide 4: Our Margins Outperform the Industry & S&P 500
Our Margins Outperform the Industry & S&P 500 4 Our gross margin1 exceeds the gold senior producer average2 and outperforms the S&P 500 79% 40% 32% Senior Gold Royal S&P 500 Producer Gold Average Average 2016 Gross Margin NASDAQ: RGLD 1 Gross Margin is calculated as revenue less cost of goods sold a
Slide 5: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 5 12% CAGR1 over the last 5 fiscal years while annual gold supply was flat Future near term growth driven by: Rainy River Cortez Crossroads 300,000 Royal Gold Volume Profile Peñasquito pyrite leach through 12-31-16 250,000 Net Gold Equivalent Ounces (GEO
Slide 6: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 6 We maintained a strong balance sheet and deployed capital opportunistically Committed $1.4 billion in mid-2015 Paid with cash on hand, cash flow, and incremental $345 million with credit facility Efficient leverage ratio currently at 2X Net Debt/EBITDA
Slide 7: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 7 Amending the gold-copper stream at Mount Milligan presented a unique opportunity in June 2016 35% of gold; payment of $435/oz of gold (previously 52.25% of gold) 18.75% of copper; payment of 15% of spot (previously no copper) First copper deliveries expe
Slide 8: Optionality at 38 Currently Producing Interests
Optionality at 38 Currently Producing Interests 8 Operators’ innovation, capital and exploration at no incremental capital cost to Royal Gold1 Tailings dam prefeasibility in CY2017 – potential to move 5.8-7.3Moz Au and 32.1-35.0Moz Ag to reserves Pueblo Viejo Significant exploration program plan
Slide 9: Track Record of Industry-Leading Returns
Track Record of Industry-Leading Returns 9 20% CAGR in dividends per share since 2001, and currently equates to 1.4% annual yield (February 21, 2017) $1.00 Dividend Per Share Average Gold Price (source: Kitco) $1,800 $0.90 $1,600 Average Annual Gold Price Per Ounce (Kitco) $0.80 $1,400 Annual Divide
Slide 10: Track Record of Industry-Leading Returns
Track Record of Industry-Leading Returns 10 Royal Gold has consistently generated higher gold equivalent ounces (GEOs) per share than its peers 4.00 3.50 3.00 Gold Equivalent Ounces(GEOs1) 2.50 Per 1000 Shares 2.00 1.50 1.00 0.50 0.00 CY2011 CY2012 CY2013 CY2014 CY2015 TTM SLW FNV RGLD NASDAQ: RGLD
Slide 11: Track Record of Industry-Leading Returns
Track Record of Industry-Leading Returns 11 Since last year’s BMO conference we’ve generated record operating cash flow and our total shareholder return has begun to rebound relative to GDX Record Operating Cash Flow RGLD - Dividend Adjusted Share Pricing 70 +34% from prior year quarter GDX - Divide
Slide 12: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 12 Trading at a discount to historical average and peer trading level RGLD FNV SLW 50x 45x 40x 35x Price to Cash Flow 30x 25x Historical average multiple 20x RGLD 15x 10x 5x 0x NASDAQ: RGLD Source: YCharts February 28, 2017
Slide 13: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 13 With just 21 employees and a scalable business model, our margins are significantly higher than the Margin 79% senior gold producers and the S&P 5002. Gross1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue
Slide 14: Appendix
My ROYALGOLD,INC Appendix
Slide 15: Portfolio of Assets
Portfolio of Assets 15 Diverse, Long Lived Properties Streams (at Dec 31, 2016) Reserve CY2017 RGLD RGLD RGLD pays RGLD pays Remaining Operator Operator Mine Metal RGLD interest until until until until until interest interest (per unit) (per ounce) Mine Life Guidance (Years) (oz/lbs)2 Mount LOM (lif
Slide 16: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 16 RGLD generates ~40% of Royal Gold and Franco-Nevada’s collective economics, but trades at just 28% of total market cap1 RGLD FNV Operating Cash Flow(TTM) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Net GEOs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mark
Slide 17: 1660 Wynkoop Street, Denver, CO
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
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