Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — RBC Capital Markets Global Mining & Materials Conference 2017
20 slides from Royal Gold's conference presentation, Jun 13, 2017
Slide 1: RBC Capital Markets Global Mining & Materials Conference
RBC Capital Markets Global Mining & Materials Conference Stefan Wenger, CFO June 13, 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: Recent Developments
Recent Developments 3 $95 million of debt repaid over the last 90 days Expanded revolving credit facility to $1 billion Total liquidity >$800 million Reported 2 straight quarters of record operating cash flow Approximately 1.3 million gold1 ounces in M&I resources2 reported in at the Peak Gold joint
Slide 4: Step Change in Operating Cash Flow
Step Change in Operating Cash Flow 4 Q3 results contributed to step Higher Q3 revenue from change in operating cash flow (OCF) Mount Milligan, Pueblo Viejo, $250m Peñasquito, Wassa and $250 $1,800 Prestea over the prior year Last 4 fiscal years’ average OCF was $170m per year $1,600 quarter $200 $1,
Slide 5: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 5 With just 22 employees and a scalable business model, our margins are significantly higher than the Margin senior gold producers and the S&P 5002. 79% Gross 1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue
Slide 6: Our Margins Outperform the Industry & S&P 500
Our Margins Outperform the Industry & S&P 500 6 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 7: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 7 12% CAGR1 over the last 5 fiscal years while annual gold supply was flat Future near term growth driven by: Rainy River (2017) Cortez Crossroads (2018) 300,000 Royal Gold Volume Profile Peñasquito pyrite leach (2019) through 3-31-17 Forecast Net Gold E
Slide 8: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 8 Sequential growth catalyst in each of calendar 2017, 2018, and 2019 Commission plant in CQ2 and CQ3, first ore to mill in C3Q1 Stream on 6.5% of gold and 60% of silver2 3.8Moz gold in reserves; 9.4Moz Silver in reserves Rainy River - 2017 Pueblo Viejo
Slide 9: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 9 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 ~1.9x Net Debt/EBI
Slide 10: Mount Milligan stream amendment and gold/copper ratio
Volume Growth Already Bought & Paid For 10 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 rec
Slide 11: Optionality at 38 Currently Producing Interests
Optionality at 38 Currently Producing Interests 11 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 Moz Ag to reserves Pueblo Viejo Significant exploration program plan
Slide 12: Annual Dividends Paid Per Share
Track Record of Industry-Leading Returns 12 20% CAGR in dividends per share since 2001, and currently equates to $0.96 per share, a 1.3% annual yield, and an average 25% OCF yield1 Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) $1.00 $1,800 $0.90 $1,600 Average Annua
Slide 13: Gold Equivalent Ounces per Share vs Peers
Track Record of Industry-Leading Returns 13 Royal Gold has consistently generated higher gold equivalent ounces (GEOs) per share than its peers 4.50 4.00 3.50 Gold Equivalent Ounces(GEOs1) 3.00 Per 1000 Shares 2.50 2.00 1.50 1.00 0.50 0.00 CY2011 CY2012 CY2013 CY2014 CY2015 TTM SLW FNV RGLD NASDAQ:
Slide 14: Record Operating Cash Flow and Total Return
Track Record of Industry-Leading Returns 14 Over the last few quarters we’ve generated record operating cash flow and outperformed the GDX on a total return basis Record Operating Cash Flow +15% from prior year quarter Royal Gold Total Return +27% 80 VanEck Vectors Gold Miners ETF Total Return -7% 6
Slide 15: Trading at a Discount to Historical Average and Peers
A High Quality Precious Metals Investment 15 Trading at a discount to historical average and peer trading level Royal Gold Price to CFO Per Share (TTM) Franco-Nevada Price to CFO Per Share (TTM) Wheaton Precious Metals Price to CFO Per Share (TTM) 40x 35x 30x Price to TTM Cash Flow 25x Historical av
Slide 16: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 16 With just 22 employees and a scalable business model, our margins are significantly higher than the Margin senior gold producers and the S&P 5002. 79% Gross1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue
Slide 17: Appendix
I ROYALGOLD,INC mee Appendix
Slide 18: Portfolio of Assets
Portfolio of Assets 18 Diverse, Long Lived Properties Streams (at March 31, 2017) 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 (l
Slide 19: Tetlin Project – Peak Gold Joint Venture
Tetlin Project – Peak Gold Joint Venture 19 Located in Eastern Interior Large gold-silver-copper skarn Alaska on Alcan Hwy, 200 paved road miles from deposit with a strong grade Fairbanks, 15 miles south profile, near surface and near of Tok All season gravel road existing infrastructure allowing ye
Slide 20: Contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
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