Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BMO Global Metals, Mining & Critical Minerals Conference 2023
31 slides from Royal Gold's conference presentation, Feb 28, 2023
Slide 1: BMO Global Metals, Mining & Critical Minerals Conference
BMO Global Metals, Mining & Critical Minerals Conference February 28, 2023
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements: This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward- looking statements are not guarantees of futu
Slide 3: Company Overview and 2022 Highlights
Company Overview and 2022 Highlights Opportunity to capture value in the precious metals sector without incurring many of the costs and risks associated with mining operations Dual Business Segments… …Across A Diverse, Gold-Focused Portfolio… …With Standout Performance Royalty Interests: 182 12 $603
Slide 4: Numerous Achievements in 2022
Numerous Achievements in 2022 Long Term Asset Acquisitions Portfolio Events Corporate MOUNT MILLIGAN Received full return of $781.5 million advance payment FINANCING DIVIDEND 2.0% 1.2% Extended mine life to 2033 Financed >$900 Increased dividend to million of acquisitions $1.50/sh, 22nd straight NSR
Slide 5: Acquisitions are Strategically Consistent
Acquisitions are Strategically Consistent Strategic objective: Further strengthen and diversify the portfolio by adding high quality precious metals assets • ~$1.2B of gold-focused Near Term Long Mine Lives investments without Revenue Contribution NX Gold raising equity since June Red Chris 20+ year
Slide 6: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 6
Slide 7: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 7
Slide 8: Exposure to Gold and Optionality with Reduced Risks
Exposure to Gold and Optionality with Reduced Risks Exploration No Direct No Direct Exposure Portfolio Sustainable Upside / Exposure to Exposure to to Gold Diversification Dividend Optionality Operating Costs Capital Costs ETFs, Bars and Coins Senior Operating Companies Junior Operating Companies De
Slide 9: Exposure to Resource Growth and Metal Price Optionality
Exposure to Resource Growth and Metal Price Optionality Mine expansions and resource growth can significantly enhance returns with no cost to Royal Gold PUEBLO VIEJO WASSA Millions of Gold Ounces5 76% Millions of Gold Ounces of Initial Investment Recovered6 0.3 124% of Initial Investment Recovered5
Slide 10: Cortez Provides Further Optionality to Resource Growth
Cortez Provides Further Optionality to Resource Growth Cortez Reserves & Resources (100% basis) (contained gold, 000 oz) 2022 - Royal Gold acquires Rio Tinto and Idaho royalties 2008 - Reserves and resources grew significantly from 2021 to 2022 - Barrick consolidates Cortez ownership Additional rese
Slide 11: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 11
Slide 12: Streaming is a Mainstream Source of Capital
Streaming is a Mainstream Source of Capital Streaming is a flexible product that is relevant throughout the commodity cycle Primarily Balance Sheet Primarily Project $5 Project Development Restructuring Development $2,000 $1,800 $4 $1,600 $1,400 $3 $1,200 $22.2B US$ Billions $1,000 Total Stream Inve
Slide 13: Competition Comes from Debt and Equity Alternatives
Competition Comes from Debt and Equity Alternatives Debt has become more expensive… …while equity has become more scarce Market Yields by Credit Quality Equity Index Performance 10 2.0 1.8 8 1.6 Percentage Rates Percentage Rates 6 1.4 4 1.2 1.0 2 0.8 0 0.6 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 J
Slide 14: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 14
Slide 15: Our Approach to ESG Is Unique by Design
Our Approach to ESG Is Unique by Design GOVERNANCE INVESTMENT STEWARDSHIP TRANSPARENCY & CULTURE STRATEGY “We will create a culture of “We will align our “We will be active owners “We will periodically responsible investing and business strategy with of our community. We will review and report on ou
Slide 16: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 16
Slide 17: Reinvesting Cash Back into Our Business Creates Value
Reinvesting Cash Back into Our Business Creates Value 10 years from 2013-2022: • Reinvested cash flow: $2.9B $2.9B OPERATING INVESTMENTS CASH FLOW • Dividends paid: $0.7B • Financing sources: $0.2B ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 17
Slide 18: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 18
Slide 19: Financing and Capital Allocation Strategy Drives Shareholder Returns
Financing and Capital Allocation Strategy Drives Shareholder Returns Financing strategy – prioritizes non-dilutive forms of capital in the order of: • Existing cash balances • Cash flow from operations • Debt (revolving credit facility) • Equity, when accretive 2022 Sources / Uses Liquidity1 $US M $
Slide 20: A Fireside Discussion
A Fireside Discussion LOW RISK GOLD BUSINESS DEV. ESG OPTIONALITY ENVIRONMENT APPROACH CAPITAL BALANCE SHEET A UNIQUE ALLOCATION AND LIQUIDITY COMPANY ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 20
Slide 21: Domicile and Performance Makes Royal Gold Unique
Domicile and Performance Makes Royal Gold Unique • Only U.S. based streaming and royalty company U.S. BASED • Member of >200 U.S. indices GDX Fewest Shares Outstanding (mm) Royal Gold 66 66M Torex Gold 86 LOW SHARE • Lowest share count in the GDX Aya Gold & Silver 116 COUNT • Limited dilution in 41
Slide 22: Accretive Growth Financed Without Significant Equity Dilution
Accretive Growth Financed Without Significant Equity Dilution Since calendar year 2000: $5.5B Revenue 64x Cumulative Revenue Operating Cash Flow 99x $3.5B Cumulative Operating Cash Flow Cash G&A Expenses 16x $324M Cum. Cash G&A1 Expenses Avg. Gold Price 6x Up to $1,800 /ounce Shares Outstanding 4x O
Slide 23: Growing and Sustainable Dividend Despite Gold Price Volatility
Growing and Sustainable Dividend Despite Gold Price Volatility Royal Gold is the only precious metal company in the S&P High Yield Dividend Aristocrats Index US$/share US$/oz $1.60 $2,800 Dividend Payout Ratio Gold Price 16% $1.40 $2,400 $1.20 Dividend CAGR $2,000 (2000-2023) $1.00 $1,600 $0.80 $815
Slide 24: 2023 is Expected to Provide Further Positive News
2023 is Expected to Provide Further Positive News KHOEMACAU RAMP UP COMPLETE ROYAL GOLD, INC. | BMO MINING, METALS & CRITICAL MINERALS CONFERENCE | FEBRUARY 2023 24
Slide 25: Appendix
I> RoyALGOLD,INC
Slide 26: Non-GAAP Measures
Non-GAAP Measures Non-GAAP Financial Measures and Certain Other Measures Overview of non-GAAP financial measures: Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“GAAP”).
Slide 27: Non-GAAP Measures
Non-GAAP Measures Non-GAAP Financial Measures and Certain Other Measures Overview of non-GAAP financial measures: 4. Free cash flow is a non-GAAP financial measure that is calculated by the Company as net cash provided by operating activities for a period minus acquisition of stream and royalty inte
Slide 28: Non-GAAP Measures
Non-GAAP Measures Reconciliation of non-GAAP financial measures to U.S. GAAP measures Adjusted EBITDA, Adjusted EBITDA margin, net cash and net cash to TTM adjusted EBITDA: Three Months Ended December 31, September 30, June 30, March 31, (amounts in thousands) 2022 2022 2022 2022 Net income and comp
Slide 29: Non-GAAP Measures
Non-GAAP Measures Reconciliation of non-GAAP financial measures to U.S. GAAP measures (cont.) Cash G&A: Three Months Ended The Year Ended December 31, December 31, (amounts in thousands) 2022 2021 2022 2021 General and administrative expense $ 8,815 $ 8,034 $ 34,612 $ 29,306 Non-cash employee stock
Slide 30: Non-GAAP Measures
Non-GAAP Measures Reconciliation of non-GAAP financial measures to U.S. GAAP measures (cont.) Free cash flow: Three Months Ended The Year Ended December 31, December 31, (amounts in thousands) 2022 2021 2022 2021 Net cash provided by operating activities $ 101,026 $ 118,898 $ 417,345 $ 461,869 Acqui
Slide 31: Contact
Tel. 303.573.1660 investorrelations@royalgold.com www.royalgold.com
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