Slide 1: Fourth Quarter and Fiscal Year 2018 Results
Fourth Quarter and Fiscal Year 2018 Results Royal Gold, Inc. August 9, 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: Today's Speakers
Today’s Speakers NASDAQ: RGLD Tony Jensen Bill Heissenbuttel President and CEO CFO and Vice President Strategy | 3
Slide 4: FY18 Highlights
FY18 Highlights NASDAQ: RGLD Financial and operating highlights versus the prior year: Record revenue of $459.0 million, up 4% Record operating cash flow of $328.8 million, up 23% Record GEO 1 volume of 354,000 up 1% Record dividends paid of $64.1 million, up 4% Remaining $250.0 million outstanding
Slide 5: Cash Flow Generation
Cash Flow Generation NASDAQ: RGLD 22% compound annual growth rate despite flat gold price $350 $1,400 $1,350 Fiscal Year Cash from Operations $USD millions $300 Average Annual Gold Price per ounce (Kitco) $1,300 $250 $1,250 $200 $1,200 $150 $1,150 $100 $1,100 $50 $1,050 $0 $1,000 12 months 12 months
Slide 6: Recent Developments
Recent Developments NASDAQ: RGLD Rainy River, Wassa & Prestea, Mount Milligan, as reported by the operators 87% average gold recovery in second calendar quarter3 24k tonnes per day (“tpd”) planned by Q4C183 2018 updated guidance: 210-250koz gold3 Rainy River 20% increase in Wassa gold production in
Slide 7: Upcoming Catalysts
Upcoming Catalysts NASDAQ: RGLD Sources of embedded growth, as reported by the operators Initial ore has been placed on leach pad3 4.5% NVR & 5% GSR royalty3 3.2Moz gold in reserves3,4 Cortez Crossroads Pueblo Viejo – Potential Resource Conversion Construction completed, commissioning Mount Milligan
Slide 8: Q4FY18 Versus Q4FY17
Q4FY18 Versus Q4FY17 NASDAQ: RGLD Revenue of $116.2 million, up 7% Gold price up 4% Volume of 89,300 GEOs1, up 3% Reported net income of $0.41 per share Adjusted Net Income2 of $0.43 per share, up 39% Cash flow from operations of $77.0 million, up 17% Dividends of $16.4 million, up 5%, bringing FY 1
Slide 9: Financial Results
Financial Results NASDAQ: RGLD Q4F18 ending inventory 22,000 gold ounces and 573,000 silver ounces Q1F19 stream sales expected to be ~10% lower than Q4F18 due to lower deliveries from Mount Milligan due to the suspension experienced earlier in the year Expect to repay $370 million bonds maturing Jun
Slide 10: Solid, Steady, Performance
Solid, Steady, Performance NASDAQ: RGLD Over 70% of Reinvest Free Invest at the Pay a Be the Most Revenue Cash Flow in Troughs and Growing and Valuable, Not from Gold Long Lived be Patient at Sustainable Necessarily Properties the Top Dividend the Largest We create long term value by: Being a gold-f
Slide 11: Strong cash flow generation, solid balance sheet, organic growth, robust liquidity
Strong cash flow generation Solid balance sheet Organic growth Robust liquidity NASDAQ: RGLD
Slide 12: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at August 3, 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 13: Endnotes
Endnotes NASDAQ: RGLD 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. Adjusted Net Income is a non-GAAP measure. Please see page 14 for reconciliation. 3. Information has been provided to the Company by the operators of those pro
Slide 14: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) 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 should not be consid
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