Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Goldman Sachs Metals & Mining Conference 2015
21 slides from Royal Gold's conference presentation, December 2015
Slide 1: Goldman Sachs Metals & Mining Conference
Goldman Sachs Metals & Mining Conference Bill Heissenbuttel Vice President Corporate Development and Operations December 2015
Slide 2: 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 m
Slide 3: What Makes Royal Gold Unique
What Makes Royal Gold Unique Quality New portfolio additions such as Pueblo Viejo are projected to produce in the lower half of worldwide production costs, and Mount Milligan is already amongst the world’s lowest cost copper mines Growth Record volume in first fiscal quarter expected to grow increme
Slide 4: Quality – FY2015 Financial Results
Quality – FY2015 Financial Results Annual Net Gold Equivalent Ounces 250 (GEOs)1 Record volume of nearly 200,000 net Net Gold Equivalent Ounces gold equivalent ounces (GEOs) in Mt. Milligan 200 FY2015 (in thousands) 150 8% CAGR Strong increase since FY2010 100 Another record quarter in the fir
Slide 5: Quality – Strong 2015 Outcomes
Quality – Strong 2015 Outcomes All Values in $USD, Based on Trailing 12 Months Ended June 30, 2015 Operating Cash Flow Per Share Net Income Per Share $4.00 $2.00 NEM NEM $1.00 RGLD $3.00 RGLD FNV CG AEM JSE:ANG SLW $0.00 OR AEM TSX:ELD JSE:ANG $2.00 TSX:CG TSX:IMG FNV TSX:ABX -$1.00 TSX:NGD TSX:K TS
Slide 6: Quality – Investment History
Quality – Investment History Strong reserve profile amongst largest investments, plus significant upside $1,000,000,000 25 Estimated Years of Remaining Reserves $800,000,000 20 $600,000,000 15 $400,000,000 10 $200,000,000 5 $- 0 Initial investment Cumulative net revenue through September 30, 2015 Es
Slide 7: Quality – Mount Milligan Highlights
Quality – Mount Milligan Highlights Mount Milligan Payable gold production of nearly 54,000 70 Mount Milligan Quarterly Payable Gold Production1 ounces in the September quarter (100% 60 basis) 50 ~80% of design throughput achieved in 40 September quarter with additional 30 improvements recently comp
Slide 8: Growth – Investment Summary
Growth – Investment Summary Four new streams added to the portfolio in recent months that, collectively, add ~125,000 ounces of annual gold equivalent ounce production over the next two years Opportunistically reinvesting in our business Favorable point in the commodity cycle Focusing on high qu
Slide 9: Growth – New Stream Transactions
Growth – New Stream Transactions Estimated Effective Date or Annual Net Operator Property Strategic Rationale Estimated Current Status GEOs Startup (1 5 years)1 st Producing; one of only three mines in the world to produce >1m oz per July 1, 2015 - Au Gold deliveries begin Barrick Pueblo Viejo year;
Slide 10: Growth – Portfolio Transformation: Pueblo Viejo
Growth – Portfolio Transformation Pueblo Viejo – Barrick Gold (60% interest), Dominican Republic Project (100% basis): 2014 production of 1.1 million ounces (“Moz”) of gold and 3.8 Moz silver at all-in sustaining costs of $588 per ounce Proven and probable reserves of 15.5 Moz gold and 97.2 Moz
Slide 11: Growth – Portfolio Transformation: Rainy River
Growth – Portfolio Transformation Rainy River – New Gold, Canada Project: Over its first nine years of full production, the 21,000 tonne per day, combined open-pit underground operation is expected to produce an average of 325 koz of gold per year at all-in sustaining costs of approximately $670 p
Slide 12: Growth – Portfolio Transformation: Andacollo
Growth – Portfolio Transformation Andacollo – Teck, Chile Andacollo – Teck, Chile Project: Long operating history Well respected partner in Teck, Canada’s largest diversified resource company Proven and probable reserves of 1.6 Moz gold and a 22 year mine life Stream:1 100% gold stream to 90
Slide 13: Growth – Portfolio Transformation: Wassa and Prestea
Growth – Portfolio Transformation Wassa and Prestea – Golden Star Resources, Ghana Projects: Higher quality Wassa and Prestea underground projects under construction Proven and probable reserves of 1.9 Moz gold across all deposits Measured and indicated gold resources of 3.5 Moz at Wassa and 3
Slide 14: Opportunity – Liquidity
Opportunity – Liquidity Date Item ($USD millions) September 30, 2015 Undrawn Revolver $300.0m September 30, 2015 Working Capital $125.2m September 30, 2015 Total Available Liquidity $425.2m Remainder of Existing firm commitments expected to be FY2016 funded through total available liquidity and cash
Slide 15: Opportunity – Investment Diversity
Opportunity – Investment Diversity FY2015 GEO Volume Plus Relative Estimated Estimated Distribution of Future GEO Volume1 Contribution From New and Expanding Streams1 Mount Milligan 100.00% 100% Mount Milligan Golden Star 90.00% 300 Net Gold Equivalent Ounces (GEOs) in Thousands Rainy River Golden R
Slide 16: Opportunity – Price to Book
Opportunity – Price to Book Price to Book Value 2.5x 2.3x 2.1x 1.9x Avg: 1.7x 1.7x Price to Book Value 1.5x 1.3x 1.1x 0.9x 0.7x June 2013: RGLD net November 2015: RGLD net GEO’s of ~210koz over GEO’s of ~180koz last 4 quarters with a new phase of growth ahead 0.5x May-13 May-14 May-15 Apr-13 Dec-13
Slide 17: Opportunity – Return of Capital
Opportunity – Return of Capital $1.00 15 straight years of dividend $0.90 increases; demonstrates ability $0.80 to balance growth with return of capital $0.70 Dividend increasing in calendar Annual Dividends Paid Per Share 2016 to $0.92 per share $0.60 29% payout ratio of operating $0.50 cash flow1
Slide 18: Endnotes
QUALITY GROWTH OPPORTUNITY Endnotes ROYALGOLD,INC
Slide 19: Endnotes
Endnotes Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 4 QUALITY – FY2015 FINANCIAL RESULTS 1. Royal Gold defines
Slide 20: Endnotes (cont.)
Endnotes (cont.) Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 10 GROWTH – PORTFOLIO TRANSFORMATION, PUEBLO VIEJO
Slide 21: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
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