Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q3 FY2016 Earnings Presentation
21 slides from Royal Gold's earnings presentation, Apr 28, 2016
Slide 1: Third Quarter Fiscal 2016 Results
April 28, 2016 Third Quarter Fiscal 2016 Results Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement April 28, 2016 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
Slide 3: Today's Speakers
Today’s Speakers Tony Jensen President and CEO Stefan Wenger CFO and Treasurer 3 April 28, 2016 Bill Heissenbuttel VP Corporate Development & Operations
Slide 4: FQ3 Investment Takeaways
FQ3 Investment Takeaways Quality Mount Milligan is one of the lowest cost copper mines in the world. Pueblo Viejo is reporting <$ 500 per ounce all - in sustaining costs. Opportunity $50 million of debt paid down in FQ3. $500 million of existing liquidity and revolver extended to 2021. Growth Revenu
Slide 5: Revenue Up 26% in Third Quarter
Revenue Up 26% in Third Quarter 5 April 28, 2016 FQ3 Results Driven in Part by Pueblo Viejo, pictured above Strong results compared to the quarter ended March 31, 2015 » 26% increase in revenue to $93.5 million » 30% increase in volume to 79,000 Gold Equivalent Ounces (“GEOs”) 1 » $15 million in div
Slide 6: Growing Returns Per Share
Growing Returns Per Share 6 April 28, 2016 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1,040 $1,060 $1,080 $1,100 $1,120 $1,140 $1,160 $1,180 $1,200 $1,220 $1,240 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Operating Cash Flow per share Gold Price Per Oz 1 FQ3 cash flow per share of over $1.00 as Royal
Slide 7: CY2016 Gold Production Outlook
7 CY2016 Gold Production Outlook April 28, 2016 Calendar 2015 Operator's Actual 1 Calendar 2016 Operator’s Estimate 2 Gold Gold Royalty/Stream (oz.) (oz.) Mount Milligan 218,100 240,000 - 270,000 Andacollo 47,600 57,600 Pueblo Viejo 572,000 600,000 - 650,000 Peñasquito 690,400 520,000 - 580,000 Wass
Slide 8: Key Assets: Mount Milligan Performing as Designed
Peñasquito Key Assets Mount Milligan Performing as Designed 8 » 60ktpd design capacity achieved at the end of December 2015 » CY2016 volume guidance of 240,000 - 270,000 ounces of gold 1 , a 10 - 15% increase » Construction of permanent secondary crusher ongoing, commissioning expected at year end »
Slide 9: Key Assets: Pueblo Viejo Contributions Growing
» Expected to deliver ~50,000 GEOs of production per year to Royal Gold 1 » Gold deliveries began in December 2015; silver deliveries began in January 2016 » Latest Update (Barrick’s share) 2 : o CQ1 2016 production of 172,000 of gold at all - in sustaining costs of $496 per ounce o Barrick reiterat
Slide 10: Key Assets: Wassa and Prestea Transition to Underground
Wassa and Prestea – Golden Star Resources, Ghana » Latest Update 1 : o March quarter Wassa and Prestea open pit production of 53,000 ounces at cash costs estimated below $750 per ounce 1 , in line with full year guidance of 180,000 - 205,000 ounces of gold production o Higher quality Wassa and Prest
Slide 11: Key Assets: Rainy River In Construction
» Latest Update 1 : o Overall construction progress is currently 35 % complete o Plant site earthworks over 90% complete o Assembly of initial mine fleet complete o Installation of mechanical, piping, electrical and instrumentation began in April o A section of the starter dam, which represents appr
Slide 12: Key Assets: Cortez Crossroads On Schedule
12 Key Assets Cortez Crossroads On Schedule » Crossroads is an area of approximately 3 million ounces 1 of reserves subject to Royal Gold’s 5.6% royalty interest » Waste stripping in the Crossroads pit began in 2015 2 » Dewatering wells were completed in 2015 » Production expected in 2018 2 Cortez C
Slide 13: Third Quarter Financial Results
Revenue of $93.5 million Excluding impairments, tax rate would have been ~20%, consistent with earlier guidance DD&A of ~$480 per GEO, expected to be $450 - $475 for the fiscal year Quarter - end GEO inventory expected to be 15,000 - 25,000 oz , depending on timing June quarter volume expected to be
Slide 14: Returning Capital to Shareholders
$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 RGLD GG FNV SLW OR AEM ABX NEM HL ELD PAAS 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 15 straight years of dividend increases Dividend increased in calendar 2016 to $0.92 per share 29 % payout ratio of operating cash flow in FY
Slide 15: FQ3 Investment Takeaways
FQ3 Investment Takeaways Quality Mount Milligan is one of the lowest cost copper mines in the world. Pueblo Viejo is reporting <$ 500/ oz all in sustaining costs. Opportunity $50 million of debt paid down in FQ3. $500 million of existing liquidity and revolver extended to 2021. Growth Revenue, volum
Slide 16: Endnotes
QUALITY GROWTH OPPORTUNITY Endnotes ROYALGOLD,INC
Slide 17: Endnotes
Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ . See complete Cautionary Statement on page 2 . 17 PAGE 5 REVENUE UP 26 % IN THIRD QUARTER 1. The Company GEOs are cal
Slide 18: Endnotes
Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ . See complete Cautionary Statement on page 2 . 18 PAGE 9 KEY ASSETS : PUEBLO VIEJO 1 . Estimates are based on future
Slide 19: Appendix
QUALITY GROWTH OPPORTUNITY Appendix ROYALGOLD,INC
Slide 20: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 20 April 28, 2016 For The Three Months Ended For The Nine Months Ended March 31, March 31, (Unaudited, in thousands) (Unaudited, in thousands) 2016 2015 2016 2015 Net (loss) income attributable to Royal Gold common stockholders (67,656)$ 25,014$ (97,589)$ 37,148$ I
Slide 21: 1660 Wynkoop Street, #1000 Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com 1660
1660 Wynkoop Street, #1000 Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com 1660 Wynkoop Street, #1000 Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com