Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — European Gold Forum 2012
29 slides from Royal Gold's conference presentation, April 2012
Slide 1: European Gold Forum
European Gold Forum April 2012 World Class Royalty Company
Slide 2: Cautionary Statement
Cautionary Statement Under the Private Securities Litigation Reform Act 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
Slide 3: Introduction
Introduction Company Performance Revenue profile Efficient business model Reserve growth Cornerstone Assets Positioned for Growth World Class Royalty Company 3
Slide 4: Revenue Profile
Revenue Profile Historical Royalty Revenues By Property 250 225 200 175 150 Dollars (millions) 125 100 75 50 25 0 2007 2008 2009 2010 2011 (Fiscal Years) Wolverine Voisey's Bay Robinson ~ Penasquito Mulatos Leeville Las Cruces Inata Holt Gwalia Deeps Dolores Cortez Canadian Malartic Andacollo Other
Slide 5: Revenue Profile
Revenue Profile Historical Royalty Revenues By Property 250 250,000 225 200 200,000 175 Revenue (US$ 000s) 150 150,000 Dollars (millions) 125 100 100,000 75 50 50,000 25 0 - 2007 2007 20082008 2009 2009 2010 2010 2011 2011 2012 (Fiscal Years) (YTD) Fiscal Year Ending June 30, Wolverine Voisey's Bay
Slide 6: Revenue Profile
Revenue Profile Historical Royalty Revenues 74% Precious Metals By Property 250 4% 250,000 Gold 9% 225 Silver Copper 200 13% 200,000 Nickel Metal 175 Zinc 6% 68% Lead Revenue (US$ 000s) 150 150,000 Other Dollars (millions) 125 1ST Half FY2012 100 100,000 Revenue Profile 75 50 50,000 25 0 - 2007 2007
Slide 7: Revenue Profile
Revenue Profile Historical Royalty Revenues 74% Precious Metals By Property 250 4% 250,000 Gold 9% 225 Silver Copper 200 13% 200,000 Nickel Metal 175 Zinc 6% 68% Lead Revenue (US$ 000s) 150 150,000 Other Dollars (millions) 125 1ST Half FY2012 100 100,000 Revenue Profile 75 Geopolitical Stability Exp
Slide 8: Efficient Business Model
Efficient Business Model Industry Cash Cost History 1 Royal Gold Cash Margin Analysis 1,600 1,600 $1,387 1,400 $1,369 1,400 Cash Cost of Operations ($/Royalty GEO) $1,225 1,200 1,200 $1,089 $972 1,000 Gold Price ($/oz) 1,000 $872 Dollars ($) $874 $821 800 800 $695 $638 600 600 $565 $583 400 $460 $47
Slide 9: Reserve Growth
Reserve Growth Gold Equivalent Royalty Reserves 1 Gold Reserve Replacement (Royalty Rate x Reserves) (Gold Reserves Subject to Royalty Interests) 95 83 9 75 63 Ounces (millions) 8 55 35 26 7 19 15 6 -5 Ounces (millions) Other 5 -25 (24) Silver Beginning Reserve Reserve Reserve Ending 4 Gold Balance
Slide 10: Cornerstone Assets
Cornerstone Assets World Class Royalty Company 7
Slide 11: World Class Portfolio
World Class Portfolio 191 properties with royalty interests 38 producing 26 development 5 cornerstone assets Andacollo Peñasquito Voisey’s Bay Pascua-Lama Mt. Milligan World Class Royalty Company 8
Slide 12: Andacollo
Andacollo Region IV Royalty: 1 75% NSR until 910K ounces are Update: produced; 50% NSR thereafter Mill throughput affected by ore hardness, Reserves: 2 1.6M ozs gold which limited throughput to 40K tpd, or approximately 73% of design capacity FY 2011 Production: 42K ozs gold (Actual) Multiple stage
Slide 13: Peñasquito
Peñasquito Zacatecas Royalty: 2.0% NSR Update: Reserves: 1 18.6M ozs gold Mill throughput at approximately 82% of 1.1B ozs silver design capacity; 140,000 tonnes recorded 17.6B lbs zinc on 12/26/11 7.3B lbs lead FY 2011 Production: 207K ozs gold SAG mills operating at design capacity (Actual) 17.3M
Slide 14: Voisey's Bay
Voisey’s Bay Labrador and Newfoundland Royalty: 2.7% NSR Update: Reserves: 1 1.4B lbs nickel Production levels have recovered from strike 788M lbs copper which ended February 2011 FY 2011 Production: 112.5M lbs nickel (Actual) 67.8M lbs copper Currently at end of restricted shipping period (December
Slide 15: Pascua-Lama
Pascua-Lama Region III Royalty: 1,2 0.78% to 5.23% NSR Update (as of 12/31/11): (5.23% above $800 gold) Earthworks: 95% complete in Chile; Reserves: 3 14.7M ozs gold (limited to gold in Chile) 65% complete in Argentina Capital: $4.7 to $5.0B 40% of concrete poured at processing facilities and approx
Slide 16: Mt. Milligan
MT. MILLIGAN Canada Mt. Milligan British Columbia Update: Interest: 40% of payable gold Capital spent: C$576M committed Purchase Price: $435/oz C$450M cash basis (as of 12/31/11) Reserves: 1 6.0M ozs gold Estimated project total: C$1.4B to C$1.5B Capital: C$1.3B Engineering 90% complete Initial Prod
Slide 17: Positioned for Growth
Positioned for Growth World Class Royalty Company 14
Slide 18: Growth Profile
Growth Profile Development Pipeline Near term production growth from Exploration Evaluation Development Construction Ramp Up to cornerstone producing properties – Full Production Andacollo and Peñasquito Andacollo Design Capacity (2012) Peñasquito Design Capacity (2012) Full year of Voisey’s Bay pro
Slide 19: Company Profile
Company Profile Market information (as of 4/02/12): Dividend Growth Shares outstanding: 59.6M 1 0.60 Market capitalization: $4.0B TTM average daily volume: 808,000 0.44 0.36 Insider ownership: 5% 0.32 0.28 Ticker: RGLD (Nasdaq); RGL (TSX) Financial status (as of 12/31/11): Cash on hand: $95.8M 2008
Slide 20: Appendix
Appendix World Class Royalty Company 17
Slide 21: Mulatos and Dolores
Mulatos and Dolores MEXICO Mulatos Dolores Sonora Chihuahua Royalty: 1 1.0% to 5.0% NSR Update: Royalty: 3.25% NSR (gold) Update: (5.0% above 2.0% NSR (silver) $400/oz) Gravity mill being Stabilizing mine Reserves: 2 2.0M ozs gold commissioned to process production and Reserves: 2 2.4M ozs gold 114.
Slide 22: Holt and Wolverine
Holt Wolverine Ontario Chihuahua Yukon Royalty: 0.00013 x Au Price Update: Royalty NSR (sliding-scale) Update: At Au Prices: NSR (sliding-scale) At Ag Prices: $1,000 13.0% SAS expects to reach its < $5.00 0.0% Mill design capacity of $1,500 19.5% steady state production $5.00-$7.50 3.778% 1,700 tonn
Slide 23: Malartic and Las Cruces
Malartic Las Cruces Quebec Andalucia Quebec Royalty: 1.0% to 1.5% NSR Update: Royalty: 1.5% NSR Update: (1.5% above $350/oz) First full calendar year of Reactor performance Reserves: 3 2.1B lbs copper production in 2012 continues to improve Reserves 4.7M ozs gold (Est.): 1 (subject to royalty) Full
Slide 24: Mt. Milligan II
Mt. Milligan II British Columbia Transaction II Combined Transactions Additional 15% of payable gold 40% of payable gold Consideration: Current investment ($364.6M): $270 ($112M paid following closing) $252.6M (Mt. Milligan I) $435 per gold ounce $112M paid following closing Finance construction Tot
Slide 25: Tulsequah Chief Project
Tulsequah Chief Project British Columbia Interest Rationale 12.5% of payable gold until 48K oz of payable gold; Precious metal focused transaction 7.5% thereafter High grade polymetallic deposit 22.5% of payable silver until 2.78M oz of payable Expected low net cash costs of silver; 9.75% thereafter
Slide 26: Footnotes
Footnotes World Class Royalty Company 23
Slide 27: Footnotes
Footnotes PAGE 5: EFFICIENT BUSINESS MODEL 1 ABN AMRO Gold Mine Cost Report, May 2011. PAGE 6: RESERVE GROWTH 1 Our gold equivalent royalty reserves are determined by multiplying the contained ounces of gold (and the gold equivalent of silver) in the reserves times our royalty percentage on a proper
Slide 28: Footnotes (cont.)
Footnotes (cont.) PAGE 13: MT. MILLIGAN 1 Reserves as of October 23, 2009. 2 Estimated production of 262,500 ounces of gold annually during the first six years; 194,000 ounces of gold thereafter, per Thompson Creek’s National Instrument 43-101 technical report filed on SEDAR on October 13, 2011. 3 P
Slide 29: Royal Gold contact details
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com World Class Royalty Company