Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — FY2018 Earnings Presentation
15 slides from Royal Gold's earnings presentation, Aug 9, 2018
Slide 1: Cautionary Statement
Cautionary Statement NASDAQ: RGLD Forward-Looking Statements: 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 th
Slide 2: Today's Speakers
Today’s Speakers NASDAQ: RGLD Tony Jensen President and CEO Bill Heissenbuttel CFO and Vice President Strategy | 3
Slide 3: FY18 Highlights
FY18 Highlights Financial and operating highlights versus the prior year: Record revenue of $459.0 million, up 4% Record operating cash flow of $328.8 million, up 23% Record GEO 1 volume of 354,000 up 1% Record dividends paid of $64.1 million, up 4% Remaining $250.0 million outstanding revolver bala
Slide 4: Cash Flow Generation
Cash Flow Generation 22% compound annual growth rate despite flat gold price NASDAQ: RGLD $350 $1,400 $1,350 $300 $1,300 $250 $1,250 $200 $1,200 $150 $1,150 $100 $1,100 $50 $1,050 $0 $1,000 12 months Jun-30-2014 12 months Jun-30-2015 12 months Jun-30-2016 12 months Jun-30-2017 12 months Jun-30-2018
Slide 5: Recent Developments
Recent Developments NASDAQ: RGLD Rainy River, Wassa & Prestea, Mount Milligan, as reported by the operators 87% average gold recovery in second calendar quarter3 24k tonnes per day (“tpd”) planned by Q4C183 2018 updated guidance: 210-250koz gold3 Rainy River 20% increase in Wassa gold production in
Slide 6: Upcoming Catalysts
Upcoming Catalysts Sources of embedded growth, as reported by the operators NASDAQ: RGLD Initial ore has been placed on leach pad3 4.5% NVR & 5% GSR royalty3 3.2Moz gold in reserves3,4 Cortez Crossroads Construction completed, commissioning accelerated to Q3C183 First gold expected Q4C183 Est. annua
Slide 7: Q4FY18 Versus Q4FY17
Q4FY18 Versus Q4FY17 Revenue of $116.2 million, up 7% Gold price up 4% Volume of 89,300 GEOs1, up 3% Reported net income of $0.41 per share Adjusted Net Income2 of $0.43 per share, up 39% Cash flow from operations of $77.0 million, up 17% Dividends of $16.4 million, up 5%, bringing FY 18 dividends p
Slide 8: Financial Results
Financial Results NASDAQ: RGLD Q4F18 ending inventory 22,000 gold ounces and 573,000 silver ounces Q1F19 stream sales expected to be ~10% lower than Q4F18 due to lower deliveries from Mount Milligan due to the suspension experienced earlier in the year Expect to repay $370 million bonds maturing Jun
Slide 9: Solid, Steady, Performance
Solid, Steady, Performance NASDAQ: RGLD Over 70% of Revenue from Gold Reinvest Free Cash Flow in Long Lived Properties Invest at the Troughs and be Patient at the Top Pay a Be the Most Valuable, Not Necessarily the Largest d e d We create long term value by: Being a gold-focused stream and royalty c
Slide 10: Strong cash flow generation, solid balance sheet, organic growth, robust liquidity
Strong cash flow generation Solid balance sheet Organic growth Robust liquidity NASDAQ: RGLD
Slide 11: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at August 3, 2018) Operator interest interest (per unit) (per ounce) Mine Life (oz/Mlbs)5 Milligan mine) Mount Milligan Centerra Gold Copper 18.75% LOM - - - - 15% of spot LOM - - 20 47,000-52,000 LOM LOM 75% at fixed 70% recov
Slide 12: Endnotes
Endnotes NASDAQ: RGLD 1. 2. 3. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. Adjusted Net Income is a non-GAAP measure. Please see page 14 for reconciliation. Information has been provided to the Company by the operators of those pro
Slide 13: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation Non-GAAP Financial Measures NASDAQ: RGLD Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be consid
Slide 14: 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
Slide 15: New Phase of Growth
NEW PHASE OF 1660 Wynkoop Street, #1000) Denver, CO 80202 303.573.1660 info@royalgold.com www. royalgold.com I ROYALGOLD,INC NASDAQ: RGLD