Slide 1: First Quarter 2015 Results
First Quarter 2015 Results October 30, 2014 SOLID PORTFOLIO. SOLID FUTURE.
Slide 2: Cautionary Statement
Cautionary Statement 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 results to differ m
Slide 3: Today’s Speakers
Today’s Speakers Tony Jensen Bill Zisch Bill Heissenbuttel President and CEO VP Operations VP Corporate Development October 2014 3
Slide 4: First Quarter 2015 Highlights
First Quarter 2015 Highlights Financial Results Net income up 23% from a year ago despite a 3% decline in gold price Adjusted EBITDA of $0.86 per basic share, or 81% of revenue Fourth consecutive quarter of increased revenue from Mt Milligan $13.7 million in dividends paid New Business Tetlin projec
Slide 5: Mt. Milligan Ramp Up
Mt. Milligan Ramp Up 180 160 Mt. Milligan reported payable production 140 Cumulative ounces 120 100 Production subject to 80 RGLD stream (payable Gold in the system of production *.5225) 60 ~39koz at Sept 30 40 20 RGLD gold received to date 0 CQ4 '13 CQ1 '14 CQ2 '14 CQ3 '14 Calendar year to date pro
Slide 6: Phoenix Project Construction
Phoenix Project Construction Rubicon Minerals photo of Phoenix mill construction, September 2014 Aerial View, June 2014 As of early September: – Over half of the project has been completed – Mill assembly and construction well underway – 24% of lateral and vertical development complete as of early S
Slide 7: Revenue and Production Waterfall
Revenue and Production Waterfall Revenue Waterfall vs Prior Quarter Production Waterfall vs Prior Quarter $70 54,000 52,000 $65 Gold Equivalent Ounces (GEO’s) 50,000 $SUD Millions 48,000 $60 46,000 $55 44,000 42,000 $50 40,000 Includes Mt. Milligan GEO’s net of our stream payment October 2014 7
Slide 8: CY14 Estimated Production vs CYTD Actuals
CY14 Estimated Production vs CYTD Actuals 1 Reported Production through Calendar 2014 Operator’s Production Estimate 2 September 30, 2014 Gold Silver Base Metals Gold Silver Base Metals Royalty/Stream (oz.) (oz.) (lbs.) (oz.) (oz.) (lbs.) 3 Andacollo 38,500 - - 31,500 - - Cortez GSR1 125,000 - - 48,
Slide 9: Portfolio Quality
Portfolio Quality Cash Margin by Operating Property, First Half 2014 100% 90% 80% 70% The operators of our royalties and streams recognized an average 57%, or $576 per gold equivalent ounce, gross margin in the first half of 2014 on properties 60% subject to our interest 57% average 50% 40% 30% 20%
Slide 10: New Business – Ilovitza project, Macedonia
New Business – Ilovitza project, Macedonia View towards Ilovitza village Core shed, Ilovitza Pre-feasibility study envisions a conventional open pit mine using large scale fleet for a planned 10 million tonne per year mill operation Current reserve of 2.45 million ounces of gold and 905 million poun
Slide 11: New Business – Tetlin Exploration Project, Alaska
New Business – Tetlin Exploration Project, Alaska 700,000 acre property located within the Tintina Gold Belt Located near Tok, Alaska, on the Alcan highway, via an all- weather gravel road Royal Gold purchased a 2.0% NSR and a 3.0% NSR on the property in late September Royal Gold signed a master agr
Slide 12: Liquidity
Liquidity ~$900 million uncommitted at a time when royalty/stream financing is needed Capital to invest… Net of future commitments ($m) $1,187 Working capital & undrawn credit at 9-30-14 -$17.0 Phoenix payment (10-3-14) Liquidity at 9/30/2014 $737M Working Capital $450M Undrawn Credit -$7.5 Ilovitza
Slide 13: What Makes Royal Gold Unique
What Makes Royal Gold Unique Growth Near-term growth from Mt. Milligan, Phoenix History of resource to reserve conversion World class portfolio Quality Long mine lives amongst largest investments >$900M uncommitted capital to invest Opportunity >$100M deals are meaningful Strong per share metrics Va
Slide 14: Endnotes
Endnotes SOLID PORTFOLIO. SOLID FUTURE.
Slide 15: Endnotes
Endnotes Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 4 First Quarter 2015 Highlights 1. Initial stream percenta
Slide 16: Property Portfolio
Property Portfolio October 2014 16
Slide 17: Solid Portfolio. Solid Future.
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com SOLID PORTFOLIO. SOLID FUTURE.