Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — John Tumazos Metals Conference on the Jersey Shore 2019
15 slides from Royal Gold's conference presentation, Jun 19, 2019
Slide 1: John Tumazos Metals Conference
NASDAQ: RGLD Alistair Baker Director, Business Development John Tumazos Very Independent Research, LLC Metals Conference June 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: Royal Gold Attributes
NASDAQ: RGD Royal Gold Attributes Business Model Optionality Highly efficient Portfolio Diverse, gold focused High quality Generating organic growth Capital Deployment Discipline Accretive, non‐dilutive Financial Position Strong liquidity Solid capital structure Total Shareholder Return (TSR) Leadin
Slide 4: Business Model – Upside Exposure
NASDAQ: RGD Business Model – Upside Exposure Royal Gold seeks upside from metal prices, production expansion and reserve conversion with reduced downside from management risk Producer Royal Gold Illustrative Expected Return Return downside: Return upside: • Higher operating costs • Increased metal p
Slide 5: Business Model – Efficient
NASDAQ: RGD Business Model – Efficient Royal Gold revenue per employee ranks second compared to the S&P 500 5
Slide 6: Business Model – Efficient
NASDAQ: RGD Business Model – Efficient Royal Gold has a larger operating portfolio and a fraction of the employee count compared to the major gold and base metals producers 6
Slide 7: Portfolio – Diverse, Gold Focused
NASDAQ: RGD Portfolio – Diverse, Gold Focused * As of Mar. 31, 2019 ** Total Revenue for nine months ended Mar. 31, 2019 7
Slide 8: Portfolio – High Quality
NASDAQ: RGD Portfolio – High Quality 60% of net revenue from operations in 1st and 2nd quartile of cash cost curve 85% below 4th quartile 2018 Wassa 8
Slide 9: Portfolio – Generating Organic Growth
NASDAQ: RGD Portfolio – Generating Organic Growth Average remaining mine life of 14 years (weighted by revenue contribution) Asset maturity 9
Slide 10: Capital Deployment – Discipline
NASDAQ: RGD Capital Deployment – Discipline Transacting at the right times, not at all times Last wave of large financial restructuring has passed Equity scarcity could bring project development and M&A opportunities $1,900 Secondary Offering Financial Restructuring Lack of Equity $1,800 $1,700 $1,6
Slide 11: Capital Deployment – Accretive, Non Dilutive
NASDAQ: RGD Capital Deployment – Accretive, Non Dilutive Growth funded through cash flow and strategic use of debt, independent of the gold price Only $61M of additional debt December 31, 2012 to December 31, 2018 No shares issued in a follow‐on offering 11
Slide 12: Strong Financial Position – Capital Structure
NASDAQ: RGD Strong Financial Position – Capital Structure Royal Gold is well capitalized Expect to repay $370M June 2019 bonds with cash from Credit Facility $77.4M OCF FQ3 2019 Market Statistics(a) Share Price US$/share $93.57 52‐Week Range US$/share $70.16 ‐ $98.53 Shares Outstanding(b) M 65.5 Mar
Slide 13: TSR – Leading Commitment to Dividends
NASDAQ: RGD TSR – Leading Commitment to Dividends Dividend set at a sustainable level 18% CAGR in dividends per share 2001‐2019 $1.20 $1,800 $1,600 $1.00 $1,400 Annual Dividend (US$/share) Average Gold Price (US$/oz) $0.80 $1,200 $0.60 $1,000 $800 $0.40 36% 35% 34% 30% 29% 27% 26% 25% 25% 23% $600 2
Slide 14: TSR – Attractive Historical Return
NASDAQ: RGD TSR – Attractive Historical Return Efficient business model Strong financial position Diverse portfolio Competitive total shareholder Disciplined capital deployment return 14
Slide 15: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
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