Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q1 FY2019 Earnings Presentation
13 slides from Royal Gold's earnings presentation, Nov 1, 2018
Slide 1: First Fiscal Quarter 2019 Results
NASDAQ: RGLD First Fiscal Quarter 2019 Results November 1, 2018
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 i
Slide 3: Today's Speakers
NASDAQ: RGD Today’s Speakers Tony Jensen Bill Heissenbuttel President and CEO CFO and Vice President Strategy 3
Slide 4: Q1 FY19 Performance Highlights
NASDAQ: RGD Q1 FY19 Performance Highlights Highlights: Revenue of $100.0M Earnings of $0.23/share Volume of 82,400 GEO’s1 Cash flow from operations of $44.6M Dividends of $16.4M Other accomplishments: Resolution of Voisey’s Bay royalty dispute Positive PEA on the Peak Gold Project Balance sheet liqu
Slide 5: Recent Developments
NASDAQ: RGD Recent Developments Significant value surfaced at Voisey’s Bay and Peak Gold Project Settled long-standing royalty dispute with Vale $4.9M royalty payment recognized this quarter (100% basis) $2.7M fiscal Q4 2018, $2.2M fiscal Q1 2019 Long Harbour processing plant ramping up to 45-50k t/
Slide 6: Recent Developments
NASDAQ: RGD Recent Developments Rainy River, Mount Milligan, Peñasquito as reported by the operators Mill modifications lead to record 20,462 t/d in September2 Launched near-term operational plan to drive efficiency2 On track to achieve low end of revised 2018 guidance2 Rainy River Wassa and Prestea
Slide 7: Upcoming Catalysts
NASDAQ: RGD Upcoming Catalysts Sources of embedded growth, as reported by the operators Pre-stripping continuing, initial ore placed on leach pad2 4.5% NVR & 5% GSR royalty 3.2M oz gold in reserves2 Cortez Crossroads Pilot pre-oxidationMount leachMilligan pad in operation 2 Enhancements Pilot flotat
Slide 8: Fiscal Q1 Financial Results
NASDAQ: RGD Fiscal Q1 Financial Results $100.0M revenue $15.0M earnings Lower earnings this quarter compared to fiscal Q4 2018: — $16.2M lower volume and prices — $1.5M equity recognition charge $0.23 8 Note: EPS numbers do not add due to rounding
Slide 9: Fiscal Q1 Results and Liquidity
NASDAQ: RGD Fiscal Q1 Results and Liquidity DD&A of $524/GEO 25.7% effective tax rate OCF of $44.6M Expect flat fiscal Q2 sales, lower inventories due to delivery timing $1.1B of liquidity available Working capital increased to $122M Expect to repay $370M June 2019 bonds with cash from revolver Sept
Slide 10: Solid, Steady, Successful
NASDAQ: RGD Solid, Steady, Successful Continued focus on total shareholder returns • $44.6M Q1 • $1.1B liquidity from 40 • $370M bonds producing due June 2019 mines Portfolio Balance cash flow sheet New Dividends investments • Fund with cash flow and •$16.4M Q1 revolver capacity 10
Slide 11: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
Slide 12: Endnotes
Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. Information has been provided to the Company by the operators of these properties or is publicly available information disclosed by the operators. Reserves information show
Slide 13: 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) Guidance1,2 Streams (at October 31, 2018) Centerra Mount Milligan Go