Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Scotiabank Senior Precious Metals Day (June 2018)
24 slides from Royal Gold's conference presentation, Jun 4, 2018
Slide 1: Scotiabank
Scotiabank Bill Heissenbuttel Vice President Corporate Development June 4, 2018 NASDAQ: RGLD
Slide 2: 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 3: 20+ Year Track Record
20+ Year Track Record NASDAQ: RGLD Performance Efficiency Discipline Cash flow generation Strong margins Strategic capital allocation Quickly delevering Lean structure Equity stewardship Embedded growth Dividend returns Diverse portfolio | 3
Slide 4: Cash Flow Generation
Performance Cash Flow Generation NASDAQ: RGLD Steady performance with another step-up in cash flow over last 12 months $350 $1,600 $317m $1,400 $300 $266m $1,200 $250 $1,000 $200 $192m $172m $170m $800 $147m $150 $600 $100 $400 $50 $200 $0 $0 12 months 12 months 12 months 12 months 12 months LTM 3-3
Slide 5: Quickly Delevering
Performance Quickly Delevering NASDAQ: RGLD Net Debt/EBITDA1 1.0x at 3-31-18 Focus on using cash flow to reduce debt, paid another $75m in March At current metals prices and assuming no changes to portfolio, we expect to: Repay the $75 million outstanding on our revolver before June 30, 2018 Repay p
Slide 6: Embedded Growth
Performance Embedded Growth NASDAQ: RGLD Rainy River, Cortez Crossroads and Peñasquito Leach Focused on increasing and stabilizing process availability2 Study to increase throughput to 24ktpd from 21kptd2 Expected to become a Top 10 revenue generator for RGLD2 Rainy River Stripping continues, produc
Slide 7: Embedded Growth
Performance Embedded Growth NASDAQ: RGLD Rainy River, Wassa & Prestea, Mount Milligan 17.5kptd average throughput in second quarter of operation2 87% average gold recovery achieved April 1-232 Throughput, grade and recovery expected to increase2 Rainy River Wassa UG inferred resource more than doubl
Slide 8: Diverse Portfolio
Performance Diverse Portfolio NASDAQ: RGLD Updates from our portfolio2 of 192 total assets (39 operating & 22 development) Development/permitting activity at: Back River (1.95% and 2.35% NSR after threshold production achieved) Production startup activity at: LaRonde Zone 5 (2% NSR) to begin CQ3 201
Slide 9: Diverse Portfolio: Long-Term Optionality
Performance Diverse Portfolio NASDAQ: RGLD Long-Term Optionality Pre-oxidation heap leach & flotation concentrate Potential ~7Moz resource to reserve conversion (100%) 2017 scoping study followed by 2018 PFS Pueblo Viejo 1.4% NSR on gold and copper on ~30% of La Fortuna PFS recently completed, feasi
Slide 10: Gross Margin
Gross Margin Efficiency 20% 40% 60% 80% 100% 0% NYSE:FLR NYSE:ADM NasdaqGS:ESRX NYSE:LLL NYSE:SLB NasdaqGS:EXPD NasdaqGS:PCAR NYSE:FTI NYSE:TXT NYSE:CNC NYSE:LYB NYSE:UPS NYSE:GD NYSE:DLPH NYSE:ADS NYSE:HRL NYSE:ALL NasdaqGS:PDCO NYSE:CSRA NYSE:PH NYSE:CMI NYSE:DTE NYSE:DVA NasdaqGS:HSIC NYSE:HPE NY
Slide 11: Lean Structure
Efficiency Lean Structure NASDAQ: RGLD Our revenue per employee is higher than 497 of the S&P 5007 Revenue per employee NYSE:VTR NasdaqGS:GILD NasdaqGS:CBOE NYSE:DHI NYSE:NBL NYSE:NRG NYSE:PXD NYSE:CF NasdaqGS:VRSN $3m $11m $19m $25m (REIT) NYSE:HPQ NasdaqGS:SNI NYSE:TRV (REIT) NYSE:AIG NYSE:UNH NYS
Slide 12: Strategic Capital Allocation
Discipline Strategic Capital Allocation NASDAQ: RGLD Strong net revenue on capital deployed, with significant mine life remaining8 Net revenue8 on capital 1991-2014 Net revenue10 on capital 2015-2017 Remaining Years of Mine Life Remaining Years of Mine Life $3,000 $3,000 20 20 $2,500 $2,500 17 years
Slide 13: Strategic Capital Allocation: Peak Gold Joint Venture
Discipline Strategic Capital Allocation NASDAQ: RGLD Peak Gold Joint Venture is an example of success-based investing Gold-silver-copper skarn deposit with a strong grade profile, near surface and near existing infrastructure Royal Gold holds 2% and 3% NSR royalties over certain areas and is managin
Slide 14: Equity Stewardship
Discipline Equity Stewardship NASDAQ: RGLD RGLD has 14 million outstanding shares less than the next-highest GDX member 1,800 GDX constituents sorted by shares outstanding12 1,600 1,400 Millions of Shares Outstanding at December 31, 201712 1,200 1,000 800 600 400 200 0 | 14
Slide 15: Dividend Returns
Discipline Dividend Returns NASDAQ: RGLD $1.00/share, a 1.1% annual yield, and an average 22% OCF yield13 19% CAGR in dividends per share since 2001 Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) $1.00 $1,800 $0.90 $1,600 $0.80 Gold Price in US Dollars Annual Dividen
Slide 16: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at April 30, 2018) CY2018 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 (Years) (
Slide 17: About Royal Gold
About Royal Gold NASDAQ: RGLD Gold Investment Opportunity with a Dividend and Reserve Optionality We provide capital in exchange for a life-of-mine percentage of the production • via a streaming or royalty interest • we do not operate any mines Diverse portfolio of 39 producing mines & 192 total int
Slide 18: Highly Experienced Board Leadership
Highly Experienced Board Leadership NASDAQ: RGLD Strong cash flow generation Solid balance sheet Organic growth Robust liquidity William Hayes Tony Jensen Kevin McArthur Independent Director and Director; President and CEO, Independent Director; Chairman of the Board; Royal Gold, Inc. Executive Chai
Slide 19: Endnotes
Endnotes NASDAQ: RGLD 1. Adjusted EBITDA is a non-GAAP measure. See page 20 for reconciliation. 2. Information has been provided to the Company by the operators of those properties or is publicly available information filed by those operators. Reserves information shown is as of December 31, 2017. R
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation NASDAQ: RGLD Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating
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Slide 24: Contact
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
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