Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q1 2020 Earnings Presentation
15 slides from Royal Gold's earnings presentation, Nov 7, 2019
Slide 1: Fiscal Q1 2020 Results
Fiscal Q1 2020 Results November 7, 2019 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: 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
Slide 3: Today's Speakers
Today’s Speakers Tony Jensen Bill Heissenbuttel Mark Isto President and CEO CFO and VP Strategy VP Operations, Royal Gold Corporation 3
Slide 4: Q1 2020 Overview
Q1 2020 Overview Highlights Volume of 80,700 GEOs1 Revenue of $118.8M $70.5M net income ($1.07/share) $71.2M cash flow from operations $17.4M in dividends Balance sheet continues to strengthen Revolver balance reduced by $50M $1B of liquidity at September 30, 2019 Well positioned for new investment
Slide 5: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Strong emphasis on safety Construction activities advancing well • >800 workers on site • Engineering ~85% • Overall progress ~11% Royal Gold first contribution of $65.8M made Nov. 5 Khoemacau Peñasquito Rainy River 5
Slide 6: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Zone 5 boxcuts North Boxcut Central Boxcut Peñasquito Rainy River South Boxcut Khoemacau 6
Slide 7: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Existing Boseto infrastructure Khoemacau Peñasquito Rainy River Boxcut geocell installation Zone 5 – Boseto access corridor 7
Slide 8: Recent Developments: Mount Milligan, Andacollo
Recent Developments Mount Milligan, Andacollo as reported by the operators3 Strong quarterly performance • Average throughput of 55.7k tpd • 55k oz gold, 21.2M lb copper; $557/oz by-product AISC Updated 43-101 report underway 2019 guidance confirmed: 155-175k oz gold, Mount Milligan 65-75M lb copper
Slide 9: Recent Developments: Rainy River, Peñasquito
Recent Developments Rainy River, Peñasquito as reported by the operators3 Average throughput 24.5k tpd Transitioning to lower-grade ore in Phase 2 Optimization study continuing • Completion now targeted for February 2020 2019 guidance confirmed: 245-270k oz gold Rainy River Blockade lifted on Octobe
Slide 10: Fiscal Q1 Financial Results
Fiscal Q1 Financial Results $118.8M revenue Compared to fiscal Q1 2019: • GEO volume of 80,700 vs 82,400 • Prices: Au ↑21%, Ag ↑13%, Cu ↓5% $70.5M earnings $32.3M tax benefit $1.4M equity mark-to-market loss G&A of $7.4M DD&A of $38.7M, or $480/GEO $71.2M operating cash flow 25,000 GEO inventory at
Slide 11: Fiscal Q1 Liquidity
Fiscal Q1 Liquidity Repaid $50M on Revolving Credit Facility ~$1B of liquidity available at September 30, 2019 Cash of $122M, working capital of $132M $170M drawn on Revolving Credit Facility September 30, 2019 Amount (US$ M) Undrawn Revolving Credit Facility 830 Working capital 132 Total available
Slide 12: Disciplined Strategy, Successful Results
Disciplined Strategy, Successful Results Solid operating and financial performance Balance sheet continues to strengthen Excellent access to liquidity Board and management team positioned for success William Hayes Tony Jensen Sybil Veenman Jamie Sokalsky Christopher M.T. Thompson Ronald J. Vance Kev
Slide 13: Endnotes
Endnotes DISCIPLINED | SUCCESSFUL STRATEGY | RESULTS Ip ROYALGOLD,INC Bie y &
Slide 14: Endnotes
Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the corresponding period. 2. Certain information on this slide was provided to the Company by Cupric Canyon Capital LP, the majority owner and developer of the Khoemacau Project and a privatel
Slide 15: 1660 Wynkoop Street, #1000 Denver, Colorado 80202
1660 Wynkoop Street, #1000 Denver, Colorado 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD