Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BAML Global Metals, Mining & Steel Conference 2017
17 slides from Royal Gold's conference presentation, May 17, 2017
Slide 1: BAML Global Metals, Mining & Steel Conference
BAML Global Metals, Mining & Steel Conference Tony Jensen, President and CEO May 17, 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: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 3 With just 22 employees and a scalable business model, our margins are significantly higher than the Margin senior gold producers and the S&P 5002. 79% Gross 1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue
Slide 4: Our Margins Outperform the Industry & S&P 500
Our Margins Outperform the Industry & S&P 500 4 Our gross margin1 exceeds the gold senior producer average2 and outperforms the S&P 500 79% 40% 32% Royal Senior Gold S&P 500 Gold Producer Average Average 2016 Gross Margin NASDAQ: RGLD 1 Gross Margin is calculated as revenue less cost of goods sold a
Slide 5: Forecast Net Gold Equivalent Ounces (GEOs)
Volume Growth Already Bought & Paid For 5 12% CAGR1 over the last 5 fiscal years while annual gold supply was flat Future near term growth driven by: Rainy River (2017) Cortez Crossroads (2018) 300,000 Royal Gold Volume Profile Peñasquito pyrite leach (2019) through 3-31-17 Forecast Net Gold E
Slide 6: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 6 Sequential growth catalyst in each of calendar 2017, 2018, and 2019 Commission plant in CQ2 and CQ3, first ore to mill in C3Q1 Stream on 6.5% of gold and 60% of silver2 3.8Moz gold in reserves; 9.4Moz Silver in reserves Rainy River - 2017 Pueblo Viejo
Slide 7: Volume Growth Already Bought & Paid For
Volume Growth Already Bought & Paid For 7 We maintained a strong balance sheet and deployed capital opportunistically Committed $1.4 billion in mid-2015 Paid with cash on hand, cash flow, and incremental $345 million with credit facility Efficient leverage ratio currently at < 2X Net Debt/EBIT
Slide 8: Volume Growth Already Bought & Paid For: Mount Milligan amendment
Volume Growth Already Bought & Paid For 8 Amending the gold-copper stream at Mount Milligan presented a unique opportunity in June 2016 35% of gold; payment of $435/oz of gold (previously 52.25% of gold) 18.75% of copper; payment of 15% of spot (previously no copper) First copper deliveries rece
Slide 9: Optionality at 38 Currently Producing Interests
Optionality at 38 Currently Producing Interests 9 Operators’ innovation, capital and exploration at no incremental capital cost to Royal Gold1 Tailings dam prefeasibility in CY2017 – potential to move 5.8-7.3Moz Au and 32.1-35 Moz Ag to reserves Pueblo Viejo Significant exploration program plann
Slide 10: Track Record of Industry-Leading Returns: Dividends
Track Record of Industry-Leading Returns 10 20% CAGR in dividends per share since 2001, and currently equates to $0.96 per share, a 1.4% annual yield (May 10, 2017) $1.00 Dividend Per Share Average Gold Price (source: Kitco) $1,800 $0.90 $1,600 Average Annual Gold Price Per Ounce (Kitco) $0.80 $1,40
Slide 11: Track Record of Industry-Leading Returns: GEOs per share
Track Record of Industry-Leading Returns 11 Royal Gold has consistently generated higher gold equivalent ounces (GEOs) per share than its peers 4.50 4.00 3.50 Gold Equivalent Ounces(GEOs1) 3.00 Per 1000 Shares 2.50 2.00 1.50 1.00 0.50 0.00 CY2011 CY2012 CY2013 CY2014 CY2015 TTM SLW FNV RGLD NASDAQ:
Slide 12: Track Record of Industry-Leading Returns: Operating Cash Flow
Track Record of Industry-Leading Returns 12 Over the last few quarters we’ve generated record operating cash flow and outperformed the GDX on a total return basis Record Operating Cash Flow +15% from prior year quarter Royal Gold Total Return +27% 80 VanEck Vectors Gold Miners ETF Total Return -7% 6
Slide 13: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 13 Trading at a discount to historical average and peer trading level Royal Gold Price to CFO Per Share (TTM) Franco-Nevada Price to CFO Per Share (TTM) Silver Wheaton Price to CFO Per Share (TTM) 45x 40x 35x Price to TTM Cash Flow 30x 25x Historical average
Slide 14: A High Quality Precious Metals Investment
A High Quality Precious Metals Investment 14 With just 22 employees and a scalable business model, our margins are significantly higher than the Margin senior gold producers and the S&P 5002. 79% Gross1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue
Slide 15: Appendix
I ROYALGOLD,INC mee Appendix
Slide 16: Portfolio of Assets
Portfolio of Assets 16 Diverse, Long Lived Properties Streams (at March 31, 2017) Reserve CY2017 RGLD RGLD RGLD pays RGLD pays Remaining Operator Operator Mine Metal RGLD interest until until until until until interest interest (per unit) (per ounce) Mine Life Guidance (Years) (oz/lbs)2 Mount LOM (l
Slide 17: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
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