Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q1 FY2018 Earnings Presentation
15 slides from Royal Gold's earnings presentation, Nov 2, 2017
Slide 1: First Fiscal Quarter 2018 Results
First Fiscal Quarter 2018 Results Royal Gold, Inc. November 2, 2017 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement NASDAQ: RGLD 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 result
Slide 3: Today's Speakers
Today’s Speakers NASDAQ: RGLD Tony Jensen Stefan Wenger President CFO and and CEO Treasurer | 3
Slide 4: Solid Performance in Q1 FY18
Solid Performance in Q1 FY18 NASDAQ: RGLD Revenue of $112 million Earnings of $0.44 per share Cash flow from operations of $72 million Volume of 88,000 GEOs Dividends of $16 million Repayment of another $50 million of debt >$900 million of liquidity No capital commitments Rainy River – declared comm
Slide 5: CY 2017 Update
CY 2017 Update NASDAQ: RGLD Notable volume guidance updates going into the end of calendar 2017 Gold forecast 235koz-255koz from low end of 260k-290koz 1 Copper guidance unchanged at low end of 55-65Mlbs 1 Stream on 35% of gold and 18.75% of silver2 Mount Milligan Gold narrowed to 635koz-650koz from
Slide 6: Embedded Growth
Embedded Growth NASDAQ: RGLD Sequential growth catalysts in calendar 2017 and 2018, bought and paid for New Gold: Commercial production began October 20171 Stream on 6.5% of gold and 60% of silver1 3.9Moz gold in reserves; 10.0Moz silver in reserves1,2 Rainy River - 2017 Barrick: CY18 startup expect
Slide 7: Commercial Production at Rainy River
Commercial Production at Rainy River NASDAQ: RGLD Commercial production declared October 19, which was 2 weeks ahead of schedule1 Achieved 18,500 tonnes per day, or 88% of capacity for the period Oct 1-241 Ball Rainy Mill and SAG Mill River - 2017 Rainy River - 2017 Schedule 2 Amendment completed Ap
Slide 8: Diverse Portfolio
Diverse Portfolio NASDAQ: RGLD Rainy River is our 40th producing property 195 total property interests (all minerals); 40 producing and 21 in development2 87% of revenue from precious metals3 89% of revenue from Canada, Chile, US, Mexico and Dominican Republic3 1 Producing properties not highlighted
Slide 9: Quickly Delevering
Quickly Delevering NASDAQ: RGLD <1.6x net debt to EBITDA,1 liquidity of over $900 million, both at 9-30-17 $45m Repaid March 31, 2017 $50m Repaid June 30, 2017 $50m Repaid Sept 5, 2017 | 9 1 The term “EBITDA” is a non-GAAP financial measure. See slide 14 for additional information.
Slide 10: FQ1 Financial Results
FQ1 18 Financial Results NASDAQ: RGLD FQ1 Revenue of $112 million Effective tax rate of 22.1% for FQ1 FY18 effective tax rate forecast range is 20%- 25% FQ1 DD&A of $450 per GEO FY18 DD&A forecast range is $450 - $500 per GEO Strong liquidity of >$900 million Focus on using free cash flow to reduce
Slide 11: 20+ Years of Solid Performance
Performance 20+ Years of Solid Performance NASDAQ: RGLD Our focus is total shareholder return (TSR) 20-year total shareholder return RGLD 1,400 % +1261% Percentage Change in Total Return Price 1,200 % 1,000 % 800 % 600 % Gold Price 400 % +313% 200 % S&P 500 +287% 0% -200 % Gold Price in US Dollars %
Slide 12: 1660 Wynkoop Street, #1000 Denver, CO 80202 info@royalgold.com
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
Slide 13: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at September 30, 2017) CY2017 Reserve Operator RGLD RGLD RGLD pays RGLD pays Remaining Operator Mine Metal RGLD interest until until until until until Production interest interest (per unit) (per ounce) Mine Life Guidance (Year
Slide 14: Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation NASDAQ: RGLD Non-GAAP Financial Measures 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
Slide 15: 1660 Wynkoop Street, #1000 Denver, CO 80202 info@royalgold.com
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD