Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — 29th Annual Denver Gold Forum 2018
19 slides from Royal Gold's conference presentation, September 2018
Slide 1: Tony Jensen, President and CEO, 29th Annual Gold Forum
NASDAQ: RGLD Tony Jensen, President and CEO 29th Annual Gold Forum September 2018
Slide 2: Cautionary Statement
NASDAQ: RGD Cautionary Statement 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 tha
Slide 3: Solid, Steady, Successful Performance
NASDAQ: RGD Solid, Steady, Successful Performance FY 2018 second consecutive year of record: Volume (↑ 1%) Revenue (↑ 4%) Cash Flow (↑ 23%) Dividends (↑ 4%) Revolver repaid in FY 2018 $1.1 billion in liquidity 0.8x leverage ratio1 FY 2018 TSR of 20.2% higher than all of: S&P 500 GDX Gold 3
Slide 4: Strategy Score Card: Gold Focus
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Gold Focus 77% of FY 2018 revenue from gold, 9% from silver, 11% from copper Approximately 90% of FY 2018 revenue from North America, Dominican Republic, and Chile 4
Slide 5: Strategy Score Card: Reinvest Cash Flow
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Reinvest Cash Flow Last secondary share offering in 2012 Cash flow increased 103% since 2012 $350 $1,800 $1,700 $300 $1,600 Average Gold Price (US$/oz) $250 $1,500 OCF (US$ million) $1
Slide 6: Disciplined Capital Allocation
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Disciplined Capital Allocation Transacting at the right times, not at all times Last wave of large financial restructuring streams seems to be gone…for now Next opportunity set could b
Slide 7: Growing and Sustainable Dividend
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Growing and Sustainable Dividend $1.00/share, a 1.3% annual yield, and a 19% payout ratio 19% CAGR in dividends per share since 2001 $1.20 $1,800 $1,600 $1.00 $1,400 Annual Dividend (U
Slide 8: Shareholder Return
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Shareholder Return FY 2018 second consecutive year of record volume, revenue, cash flow, dividends FY 2018 TSR of 20.2% - beat the S&P 500, GDX and gold 125 120 Indexed (June 30, 2017
Slide 9: Portfolio Optionality: Peak Gold Joint Venture
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peak Gold Joint Venture Success based investing to earn JV interest Contango Ore Inc. (CTGO): 60% JV interest Royal Gold: — 40% in JV — 13.2% equity interest in CTGO — 2% and 3% royalty interests —
Slide 10: Portfolio Optionality: Peak Gold Project
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peak Gold Project 2017 IMC resource estimate2 with September 2018 updates 2018 PEA (JDS Energy & Mining)2,3: — 1.1M oz gold production — 8 year mine life — 3,500 t/d throughput — 92% gold recovery
Slide 11: Portfolio Optionality: Pueblo Viejo (Barrick)
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Pueblo Viejo (Barrick)4 PFS for plant expansion advancing — Now irrigating the pilot pre-oxidation heap leach pad — Civil works for the pilot flotation circuit commenced — Tender process for struct
Slide 12: Portfolio Optionality: Peñasquito (Goldcorp)
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peñasquito (Goldcorp)4 Pyrite Leach Project construction fully complete, currently undergoing pre- commissioning — Commercial production expected calendar Q4 2018 — Carbon pre-flotation allows proc
Slide 13: Portfolio Optionality: Voisey's Bay (Vale)
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Voisey’s Bay (Vale) Comprehensive settlement to long-standing litigation — 2.7% NSR royalty on all metals reinstated effective April 1, 2018 — New calculation method for royalty on nickel concentra
Slide 14: Portfolio Optionality: Cortez Crossroads (Barrick)
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Cortez Crossroads (Barrick) Crossroads adjacent to Pipeline and South Pipeline 4.5% NVR and 5% GSR royalty 3.2M oz in reserves4 Stripping continuing, ore has been placed on leach pad4 Expect first
Slide 15: Portfolio Optionality: Wassa (Golden Star)
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Wassa (Golden Star)4 20% increase in gold production comparing Q2 2017 to Q2 2018 2018 target mining rate 2,700-3,000 t/day vs. 7,600 t/day mill capacity Work on underground potential underway — In
Slide 16: Portfolio Optionality: Mount Milligan and Rainy River
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Mount Milligan (Centerra)4 Work continuing on long-term water permitting, with short-term sources approved 2018 production guidance of 175 – 195k oz gold, 40-47M lb copper assumes one ball mill ope
Slide 17: Solid, Steady, Successful Performance
NASDAQ: RGD Solid, Steady, Successful Performance Cash flow and growth from broad portfolio Disciplined approach to capital deployment Strong financial position Record financial performance Leading shareholder return Royal Gold Board of Directors: William Hayes Tony Jensen Sybil Veenman Jamie Sokals
Slide 18: Endnotes
Endnotes 1. Sourced from Capital IQ. 2. The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” as used in the resource estimate, the PEA and this presentation are Canadian mining terms as defined in accordance with Canadian National In
Slide 19: Contact: 1660 Wynkoop Street, Denver
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com