Slide 1: Fiscal Second Quarter Results
Fiscal Second Quarter Results Royal Gold, Inc. February 2, 2017
Slide 2: Cautionary Statement
Cautionary Statement 2 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
Slide 3: Today's Speakers
Today’s Speakers 3 Tony Jensen Mark Isto Stefan Wenger President Vice President CFO and and CEO Operations Treasurer NASDAQ: RGLD February 2, 2017
Slide 4: Strong Performance in Q2 FY17
Strong Performance in Q2 FY17 4 Record operating cash flow and favorable results from 38 producing interests Operating Cash Flow +34% from prior year quarter Revenue + 9% from prior year quarter 70 120 60 100 50 80 $USD Millions $USD Millions 40 60 30 40 20 10 20 0 0 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY
Slide 5: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 5 Impressive contributions from our recent acquisitions Future growth from new contributions from Rainy River and Crossroads 300,000 250,000 Net Gold Equivalent Ounces(GEOs)1 200,000 150,000 100,000 50,000 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 H1 FY 2017
Slide 6: Optionality at Currently Producing Interests
Optionality at 38 Currently Producing Interests 6 Operators’ innovation, capital and exploration at no incremental capital cost to Royal Gold1 Pueblo Viejo – Potential Resource Conversion Mount Milligan Enhancements Peñasquito Mount Milligan Enhancements Peñasquito Wassa Underground Development Peña
Slide 7: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 7 Rainy River will contribute incremental stream volume, with production estimated to begin in September 2017 New Gold’s Rainy River project is located 65 km northwest of Fort Frances, Ontario. Photo from New Gold. NASDAQ: RGLD February 2, 2017
Slide 8: Mount Milligan Gold-Copper Stream
Mount Milligan Gold-Copper Stream 8 Prior stream: 52.25% of gold Amended gold-copper stream: 35% of gold, payment - $435/oz of gold delivered 18.75% of copper, payment – 15% of prevailing copper spot price per metric tonne delivered Expected transition to gold-copper stream deliveries in April 2
Slide 9: FQ2 Financial Results and Liquidity
FQ2 Financial Results and Liquidity 9 FQ2 Revenue of $107 million Effective tax rate of ~15.7% for Q2 and 18.5% for six months ended 12/31/16 FQ2 DD&A of ~$451 per GEO, at low end of expected range of $450-$475 for FY2017 Final scheduled payments to Rainy River and Golden Star completed No additiona
Slide 10: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 10 With just 21 employees and a scalable business model, our margins are significantly higher than the Margin senior gold producers and the S&P 5002. Gross1 Our portfolio has embedded growth with new business already bought and paid for at Rainy Growth River
Slide 11: Board of Directors
Board of Directors 11 Gordon Bogden William Hayes M. Craig Haase Tony Jensen Kevin McArthur Independent Director; Former Independent Director Independent Director; Director; President and Independent Director; Vice Chairman, Mining & and Chairman of the Former EVP and Chief CEO, Royal Gold, Inc. Exe
Slide 12: 1660 Wynkoop Street, #1000 Denver, CO 80202-1132 info@royalgold.com
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com