Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — TD Securities Mining Conference 2019
22 slides from Royal Gold's conference presentation, Jan 17, 2019
Slide 1: TD Securities Mining Conference
NASDAQ: RGLD Bill Heissenbuttel CFO and VP Strategy TD Securities Mining Conference January 17, 2019
Slide 2: Cautionary Statement
NASDAQ: RGD Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward‐looking statements in
Slide 3: Fiscal Q1 Financial Results
NASDAQ: RGD Fiscal Q1 Financial Results $100.0M revenue $15.0M earnings Lower earnings in fiscal Q1 2019 compared to fiscal Q4 2018: — $16.2M lower volume and prices — $1.5M equity recognition charge $0.23 3 Note: EPS numbers do not add due to rounding
Slide 4: Fiscal Q1 Results and Liquidity
NASDAQ: RGD Fiscal Q1 Results and Liquidity DD&A of $524/GEO1 25.7% effective tax rate OCF of $44.6M $1.1B of liquidity available Working capital increased to $122M Expect to repay $370M June 2019 bonds with cash from revolver September 30, 2018 Amount (US$ M) Undrawn revolver $1,000 Working capital
Slide 5: Strategy Score Card: Gold Focus
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Gold Focus 77% of FY 2018 revenue from gold, 9% from silver, 11% from copper Approximately 90% of FY 2018 revenue from North America, Dominican Republic and Chile 5
Slide 6: Strategy Score Card: Reinvest Cash Flow
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Reinvest Cash Flow Last secondary share offering in 2012 Cash flow increased 103% since 2012 $350 $1,800 $1,700 $300 $1,600 Average Gold Price (US$/oz) $250 $1,500 OCF (US$ million) $1
Slide 7: Disciplined Capital Allocation
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Disciplined Capital Allocation Transacting at the right times, not at all times Last wave of large financial restructuring streams seems to be gone…for now Next opportunity set could b
Slide 8: Growing and Sustainable Dividend
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Growing and Sustainable Dividend Dividend increased to $1.06/share for CY 2019 from $1.00/share for CY 2018 19% CAGR in dividends per share 2001‐2018 $1.20 $1,800 $1,600 $1.00 $1,400 A
Slide 9: Shareholder Return
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Shareholder Return FY 2018 second consecutive year of record volume, revenue, cash flow, dividends FY 2018 TSR of 20.2% – beat the S&P 500, GDX and gold 125 120 Indexed (June 30, 2017
Slide 10: Portfolio Optionality: Peak Gold Joint Venture
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peak Gold Joint Venture Success based investing to earn JV interest Contango Ore Inc. (CTGO): 60% JV interest Royal Gold: — 40% in JV — 13.2% equity interest in CTGO — 2% and 3% royalty interests —
Slide 11: Portfolio Optionality: Peak Gold Project
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peak Gold Project 2017 IMC resource estimate2 with September 2018 updates 2018 PEA (JDS Energy & Mining)2,3 — 1.1M oz gold production — 8 year mine life — 3,500 t/d throughput — 92% gold recovery —
Slide 12: Portfolio Optionality: Pueblo Viejo
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Pueblo Viejo (Barrick)4 PFS for combined expansion project advancing — Pilot pre‐oxidation leach pad in operation — Pilot flotation concentrator construction advanced — Evaluating additional tailin
Slide 13: Portfolio Optionality: Peñasquito
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peñasquito (Goldcorp)4 Pyrite Leach Project construction fully complete — Commissioning with low grade stockpiles in calendar Q3 — Commercial production achieved December 2018 — Carbon pre‐flotatio
Slide 14: Portfolio Optionality: Voisey's Bay
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Voisey’s Bay (Vale) Comprehensive settlement to long‐standing litigation — 2.7% royalty on all metals reinstated effective April 1, 2018 — New calculation method for royalty on nickel concentrate b
Slide 15: Portfolio Optionality: Cortez Crossroads
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Cortez Crossroads (Barrick) Crossroads adjacent to Pipeline and South Pipeline 4.5% NVR and 5% GSR royalty 3.2M oz in reserves4 Stripping continuing, ore has been placed on leach pad4 Expect increa
Slide 16: Portfolio Optionality: Wassa
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Wassa (Golden Star)4 20% increase in gold production comparing Q3 2017 to Q3 2018 Q3 2018 mining rate 3,400 t/day vs. 7,600 t/day mill capacity Work on underground potential underway — Inferred min
Slide 17: Portfolio Optionality: Mount Milligan and Rainy River
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Mount Milligan (Centerra)4 Milled 55k t/operating day calendar Q3 2018 Both ball mill circuits currently operating Work continuing on long‐term water solution 2018 production guidance reaffirmed: 1
Slide 18: Solid, Steady, Successful Performance
NASDAQ: RGD Solid, Steady, Successful Performance Cash flow and growth from broad portfolio Disciplined approach to capital deployment Strong financial position Record financial performance FY 2018 Leading shareholder return Royal Gold Board of Directors: William Hayes Tony Jensen Sybil Veenman Jami
Slide 19: Endnotes
NASDAQ: RGD Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. The Resource Estimate and Preliminary Economic Assessment (PEA) were prepared in accordance with Canadian National Instrument 43‐ 101 (NI 43‐101). The terms “me
Slide 20: Diverse Portfolio of Long-Lived Assets
NASDAQ: RGD Diverse Portfolio of Long-Lived Assets Operator Mine Metal Royal Gold Interest Ongoing Payment Remaining CY 2018 Operator Initial Until* Thereafter Until* Initial Until* Thereafter Until* Reserve Life Production (years) 1,2 Guidance Streams (at October 31, 2018) Centerra Mount Milligan G
Slide 21: Mount Milligan: Short Term Water Sources
Mount Milligan: Short Term Water Sources Source: Centerra Gold, November 2018
Slide 22: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com