Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BoaML 2012 Global Metals, Mining & Steel Conference
23 slides from Royal Gold's conference presentation, May 16, 2012
Slide 1: Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference May 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 Strong financial position Growing revenues Efficient business model Increasing reserves Cornerstone Assets Positioned for Growth World Class Royalty Company 3
Slide 4: Strong Financial Position
Strong Financial Position Market information (as of 5/11/12): Dividend Growth Shares outstanding: 59.6M 1 0.60 Market capitalization: $3.8B 0.44 TTM average daily volume: 787,000 0.36 0.32 0.28 Insider ownership: 5% Ticker: RGLD (Nasdaq); RGL (TSX) Financial status (as of 3/31/12): 2008 2009 2010 20
Slide 5: Growing Revenues
Growing Revenues Historical Royalty Revenues 74% Precious Metals By Property 250 250 4% Gold 11% 225 Silver Copper 200 200 11% Nickel Metal Zinc 175 7% Lead 67% 150 150 Other Dollars (millions) 125 YTD Q3 FY2012 100 100 Revenue Profile 75 Geopolitical Stability Experienced Operators 50 50 Teck Vale
Slide 6: Efficient Business Model
Efficient Business Model Industry Cash Cost History 1 Royal Gold Cash Margin Analysis 1,800 1,600 $1,572 1,600 $1,369 1,400 Cash Cost of Operations ($/Royalty GEO) 1,400 $1,225 1,200 $1,089 1,200 Gold Price ($/oz) 1,000 Dollars ($) $973 $874 1,000 $872 $821 800 800 $697 $638 600 600 $662 $538 400 40
Slide 7: Increasing Reserves
Increasing Reserves Gold Equivalent Royalty Reserves 1 Gold Reserve Replacement (Royalty Rate x Reserves) (Gold Reserves Subject to Royalty Interests) 8 95 84 75 63 Ounces (millions) 7 55 30 6 35 19 15 5 Ounces (millions) -5 (27) Other -25 4 Silver Beginning Reserve Reserve Reserve Ending Balance Co
Slide 8: Cornerstone Assets
Cornerstone Assets World Class Royalty Company 8
Slide 9: World Class Portfolio
World Class Portfolio 192 properties with royalty interests 38 producing 25 development 5 cornerstone assets Andacollo Peñasquito Voisey’s Bay Pascua-Lama Mt. Milligan World Class Royalty Company 9
Slide 10: Andacollo
Andacollo Region IV Royalty: 1 75% NSR until 910K ounces are Update: produced; 50% NSR thereafter A two-stage pre-crushing circuit is being Reserves: 2 1.8M ozs gold installed to increase throughput to 55,000 tpd FY 2012 Production: 39.5K ozs gold Further circuit configuration and economic (YTD Q3)
Slide 11: Peñasquito
Peñasquito Zacatecas Royalty: 2.0% NSR Update: Reserves: 1 16.5M ozs gold HPGR supplemental ore feed system 960M ozs silver 14.8B lbs zinc successfully commissioned, positioning 6.2B lbs lead the mine to achieve its design processing capacity FY 2012 Production: 204K ozs gold (YTD Q3) 15.5M ozs silv
Slide 12: Voisey's Bay
Voisey’s Bay Labrador and Newfoundland Royalty: 2.7% NSR Update: Reserves: 1 1.2B lbs nickel Steady state production 668M lbs copper Two restricted shipping periods: December 7 FY 2012 Production: 101M lbs nickel (YTD Q3) 104M lbs copper to January 21 and late April to late May FY 2012 Revenue: $30M
Slide 13: Pascua-Lama
Pascua-Lama Region III Royalty: 1,2 0.78% to 5.23% NSR Update: (5.23% above $800 gold) Earthworks: 97% complete in Chile; Reserves: 3 14.7M ozs gold (limited to gold in Chile) 73% complete in Argentina Capital: $4.7 to $5.0B 45% of concrete poured at processing facilities and approximately 20% of st
Slide 14: Mt. Milligan
MT. MILLIGAN Canada Mt. Milligan British Columbia Update: Interest: 40% of payable gold Capital spent: C$1.1B committed C$593M cash basis Purchase Price: $435/oz Steel erection for the concentrator has commenced Reserves: 1 6.0M ozs gold Engineering 95% complete; construction 44% Capital: C$1.4B to
Slide 15: Positioned for Growth
Positioned for Growth World Class Royalty Company 15
Slide 16: 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) Overall production is Stabilizing mine expected to increase with Reserves: 2 1.8M ozs gold production Reserves: 2 2.4M ozs gold 105
Slide 17: 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 reached its steady < $5.00 0.0% Mill design capacity of $1,500 19.5% state production rate of $5.00-$7.50 3.778% 1,700 tonne
Slide 18: Las Cruces and Malartic
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: 1 1.8B lbs copper production in 2012 continues to improve Reserves: 1 4.7M ozs gold (subject to royalty) Construction
Slide 19: 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) Continued ramp-up at producin
Slide 20: Footnotes
Footnotes World Class Royalty Company 20
Slide 21: Footnotes
Footnotes PAGE 4: STRONG FINANCIAL POSITION 1 Includes 800,000 exchangeable shares. 2 Barrick, Newmont, AngloGold, Gold Fields, Goldcorp, Kinross and Agnico-Eagle. PAGE 6: EFFICIENT BUSINESS MODEL 1 The CPM Gold Yearbooks, 2008-2012. PAGE 7: INCREASING RESERVES 1 Our gold equivalent royalty reserves
Slide 22: Footnotes (cont.)
Footnotes (cont.) PAGE 13: PASCUA-LAMA 1 NSR sliding-scale schedule (price of gold per ounce – royalty rate): less than or equal to $325 – 0.78%; $400 – 1.57%; $500 – 2.72%; $600 – 3.56%; $700 – 4.39%; greater than or equal to $800 – 5.23%. 2 Approximately 20% of the royalty is limited to the first
Slide 23: Royal Gold contact details
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com World Class Royalty Company
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