Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — CIBC 21st Annual Whistler Institutional Investor Conference (January 2018)
21 slides from Royal Gold's conference presentation, Jan 24, 2018
Slide 1: Tony Jensen, President and CEO
Tony Jensen President and CEO January 2018 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: Recent Developments
Recent Developments NASDAQ: RGLD Rainy River declared commercial production in October 2017 Rainy became our 40th1 producing property within a portfolio of 197 total interests Centerra announced temporary suspension of Mount Milligan Restart at partial capacity expected late January, full capacity i
Slide 4: 20+ Year Track Record
20+ Year Track Record NASDAQ: RGLD Performance Efficiency Discipline Cash flow generation Diverse portfolio Strategic capital allocation Quickly delevering Strong margins Equity stewardship Embedded growth Lean structure Dividend returns | 4
Slide 5: Cash Flow Generation
Cash Flow Generation NASDAQ: RGLD Q1FY18 cash flow growth ..yet RGLD is trading at a building on FY17 records… discount to historical levels Cash from operations vs gold price Historical OCF multiple1 $300 $2,000 40x $282 OCF Multiple +1 Standard Deviation $266 $1,800 35x $250 $1,600 OCF average = $
Slide 6: Quickly Delevering
Performance Quickly Delevering NASDAQ: RGLD Another $50 million in debt repaid in December, 2017 quarter $45m Repaid March 31, 2017 $50m Repaid June 30, 2017 $50m Repaid Sept 5, 2017 $50m Repaid December, 2017 | 6
Slide 7: Embedded Growth
Performance 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 silver1,2 Rainy Rainy River River -- 2017 2017 3.9Moz gold in reserves; 10.0Moz silver in reserves
Slide 8: Commercial Production at Rainy River
Performance 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 1-241,2 Ball Rainy Mill and SAG Mill River - 2017 Rainy River - 2017 Schedule 2 Amendmen
Slide 9: Diverse Portfolio
Efficiency Diverse Portfolio NASDAQ: RGLD Rainy River is our 40th producing property1 197 total property interests (all minerals); 40 producing and 23 in development2 87% of revenue from precious metals3 89% of revenue from Canada, Chile, US, Mexico and Dominican Republic3 1 Producing properties not
Slide 10: Strong Margins
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 500 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 NYSE
Slide 12: Strategic Capital Allocation
Discipline Strategic Capital Allocation NASDAQ: RGLD We maintained a strong balance sheet and deployed capital opportunistically Gold price at the time of recent transaction agreements $1,900 $700 $USD Millions of Consideration paid by Royal Gold Pueblo Viejo $600 $1,700 Andacollo $500 Gold Price in
Slide 13: Strategic Capital Allocation: Net Revenue on Capital Deployed
Discipline Strategic Capital Allocation NASDAQ: RGLD Strong net revenue on capital deployed, with significant mine life remaining Net revenue on capital 1991-2014 Net revenue3 on capital 2015-2017 $3,000 $3,000 Remaining Years of Mine Life 20 Remaining Years of Mine Life 20 $2,500 $2,500 17 years 12
Slide 14: Equity Stewardship
Millions of Shares Outstanding * at June 30, 2017 Discipline 200 400 800 600 1,000 1,200 1,400 1,600 1,800 0 Royal Gold, Inc. *Torex Gold Resources Inc Endeavour Mining Corporation Randgold Resources Limited Osisko Gold Royalties Ltd. *SSR Mining Inc. Fortuna Silver Mines Inc. *Pan American Silver C
Slide 15: Dividend Returns
Discipline Dividend Returns NASDAQ: RGLD 19% CAGR in dividends per share since 2001, and currently equates to $1.00 per share, a 1.2% annual yield, and an average 22% OCF yield1 Latest increase Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) $1.00 $1,800 $0.90 $1,600
Slide 16: Highly Skilled Board Leadership
Discipline Highly Skilled Board Leadership NASDAQ: RGLD William Hayes Tony Jensen Kevin McArthur Jamie Sokalsky Independent Director and Director; President and CEO, Independent Director; Independent Director; Chairman of the Board; Royal Gold, Inc. Executive Chair, Tahoe Former President and CEO, F
Slide 17: 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 % Percentage Change in Total Return Price +1261% 1,200 % 1,000 % 800 % 600 % Gold Price 400 % +313% 200 % S&P 500 +287% 0% -200 % Gold Price in US Dollars %
Slide 18: 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 19: 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 20: 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 40 producing mines & 197 total pro
Slide 21: 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
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