Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q1 2014 Earnings Presentation
15 slides from Royal Gold's earnings presentation, Nov 7, 2013
Slide 1: First Quarter Fiscal 2014 Results
First Quarter Fiscal 2014 Results November 7, 2013
Slide 2: Today's Speakers
Today’s Speakers Tony Jensen Stefan Wenger Bill Zisch President and CEO CFO and Treasurer VP Operations November 7, 2013 2
Slide 3: Cautionary Statement
Cautionary Statement 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 4: First Quarter Fiscal 2014 Highlights
First Quarter Fiscal 2014 Highlights Financial and operational results as expected: Gold price 20% lower, and production ~10% lower than a year ago Gold price 6% lower, and production 5% higher than June quarter Operational matters worth noting for December quarter: Favorable volume trend at Peñasqu
Slide 5: Mt. Milligan Ramp-up Well Underway
Mt. Milligan Ramp-up Well Underway Aug. 15: Phased start-up, followed by copper and gold concentrate production in September Sept. 24: Trucking of concentrate to the load out facility in MacKenzie began Year end: Est. commercial production Both ball mills running at Mt. Milligan November 7, 2013 5
Slide 6: Inaugural Concentrate Shipment
Inaugural Concentrate Shipment November 7, 2013 6
Slide 7: Financial Highlights
Financial Highlights Q1FY2014 – Net income of $15M or $0.23/share – Cash dividend of $13M; payout ratio of 37% – Effective tax rate of 24% vs. 39%, year over year Full Year Outlook – Est. effective tax rate of 30% to 34% – Est. Adj. EBITDA at 80% to 85% of revenue – Est. DD&A of $425 to $500/GEO Nov
Slide 8: Continued Financial Strength and Flexibility
Continued Financial Strength and Flexibility Strong Balance Sheet and Cash Flow in an Attractive Market Liquidity at September 30, $687M $350M 2013 Working Capital Undrawn Credit $370M convertible Debt and Commitments Debt 2019 @2.875% * LTM Operating Cash Flow $154.5M $0 $200 $400 $600 $800 $1,000
Slide 9: Cornerstone Property Update
Cornerstone Property Update Producing Properties Andacollo Contribution to total Royalty: 1 75% of Au production (NSR) 2014 Q1 revenue 30% Reserves: 2 1.8M oz (Au) or $17.2M Estimated Mine Life: 20+ Years Estimated CY13 production: 3 63k oz (Au) Peñasquito Contribution to total Royalty: 2.0% NSR 201
Slide 10: Strong Positioning
Strong Positioning Robust balance sheet with nearly $1 billion in liquidity Strong and uncommitted cash flow Growth profile embedded in the company Attractive market environment where there is a demand for our investment November 7, 2013 10
Slide 11: Endnotes
Endnotes World Class Royalty Company <3 Ip ROYALGOLD,INC
Slide 12: Endnotes
Endnotes PAGE 7 CORNERSTONE PROPERTY UPDATES – Producing Properties 1. 75% of payable gold until 910,000 payable ounces; 50% thereafter. As of September 30, 2013, there have been approximately 184,000 cumulative payable ounces produced. 2. Reserves as of December 31, 2012, as reported by the operato
Slide 13: Appendix A: Property Portfolio
Appendix A: Property Portfolio
Slide 14: Diverse Portfolio of Assets
Diverse Portfolio of Assets November 7, 2013 14
Slide 15: 1660 Wynkoop Street Denver, CO 80202-1132 info@royalgold.com
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com