Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q2 2020 Earnings Presentation
16 slides from Royal Gold's earnings presentation, Feb 6, 2020
Slide 1: Fiscal Q2 2020 Results
Fiscal Q2 2020 Results February 6, 2020 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unk
Slide 3: Today's Speakers
Today’s Speakers Bill Heissenbuttel Paul Libner Mark Isto President and CEO CFO and Treasurer Executive VP and COO 3
Slide 4: Q2 2020 Overview
Q2 2020 Overview Highlights Volume of 83,500 GEOs1 Revenue of $123.6M $41.3M net income ($0.63/share) $78.3M cash flow from operations $17.4M in dividends Balance sheet continues to strengthen Revolver balance reduced by $35.0M ~$1B of liquidity at December 31, 2019 Well-positioned for new investmen
Slide 5: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Construction activities advancing well • 1,600 workers on site • Overall progress ~26% • Capital committed ~77% $22.0M contribution made February 5 • $87.6M total contribution to date • Remaining commitment of $124.2M to $177.2M Khoemacau Peñasquito Rainy Rive
Slide 6: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Central boxcut Zone 5 / Boseto access road 6
Slide 7: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Mining contractor workshop Zone 5 infrastructure Zone 5 temporary power 7
Slide 8: Recent Developments: Khoemacau progress
Recent Developments Khoemacau progress2 Boseto process plant refurbishment 8
Slide 9: Recent Developments: Mount Milligan, Rainy River
Recent Developments Mount Milligan, Rainy River as reported by the operators3 Stream deliveries received*: • 18.8k oz gold • 4.4M lb copper Updated 43-101 report underway Royal Gold depletion $402/oz gold, $0.81/lb copper* Mount Milligan 254k oz gold production in calendar 2019 22.5k tpd average thr
Slide 10: Recent Developments: Andacollo, Peñasquito
Recent Developments Andacollo, Peñasquito as reported by the operators3 Operations resumed December 5 • 36-month collective agreement reached Production suspended for ~8 weeks • Stream deliveries typically received ~6 months after shipment* Andacollo Peñasquito Rainy River Blockade lifted October 8
Slide 11: Fiscal Q2 Financial Results
Fiscal Q2 Financial Results $123.6M revenue $41.3M earnings G&A of $6.7M DD&A of $40.1M, or $480/GEO Equity mark-to-market of $0.2M $78.3M operating cash flow Guidance: Fiscal Q3: • $3-4M additional non-cash compensation expense • Stream segment: • 60,000-65,000 GEO sales • 30,000-35,000 GEO ending
Slide 12: Fiscal Q2 Liquidity
Fiscal Q2 Liquidity ~$1B of liquidity available at December 31, 2019 Cash of $81M, working capital of $92M Repaid $35M on Revolving Credit Facility; $135M outstanding balance December 31, 2019 Amount (US$ M) Undrawn Revolving Credit Facility 865 Working capital 92 Total available liquidity $957 Khoe
Slide 13: Disciplined Strategy, Successful Results
Disciplined Strategy, Successful Results Solid operating and financial performance Strong balance sheet Excellent access to liquidity Board and management team positioned for success 13
Slide 14: Endnotes
Endnotes DISCIPLINED | SUCCESSFUL STRATEGY | RESULTS Ip ROYALGOLD,INC Bie y &
Slide 15: 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 Khoemacau Copper Mining (Pty.) Limited, the majority owner and developer of the Khoemacau Project.
Slide 16: Royal Gold contact details
1144 15th St, #2500 Denver, Colorado 80202 303.573.1660 www.royalgold.com NASDAQ: RGLD