Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BMO 28th Global Metals & Mining Conference 2019
18 slides from Royal Gold's conference presentation, Feb 26, 2019
Slide 1: BMO 28th Global Metals and Mining Conference
NASDAQ: RGLD Tony Jensen, President & CEO BMO 28th Global Metals and Mining Conference February 26, 2019
Slide 2: Cautionary Statement
NASDAQ: RGD Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward‐looking statements in
Slide 3: Fiscal Q2 Results and Liquidity
NASDAQ: RGD Fiscal Q2 Results and Liquidity Highlights: Revenue of $97.6M Volume of 79,600 GEOs1 Earnings of $0.36/share Cash flow from operations of $58.8M Dividends of $16.4M ($1.06 per share for CY 2019) Balance sheet continues to strengthen Expect to repay $370M June 2019 bonds with cash from re
Slide 4: Cupric Khoemacau Transaction Overview
NASDAQ: RGD Cupric Khoemacau Transaction Overview Transaction between RGLD Gold AG, a wholly owned subsidiary of Royal Gold, Inc., and a wholly owned subsidiary of Cupric Canyon Capital LP (“Cupric”) $212‐265M advance payment: — Silver Stream: $212M for 80% of Ag produced — Option Stream: Up to $53M
Slide 5: Khoemacau – Geography
NASDAQ: RGD Khoemacau – Geography2 Botswana is the oldest democracy on the continent Located on the Kalahari Copper Belt in NW Botswana Royal Gold area of interest ~176 km2 Consolidated package assembled by Cupric since 2013 Zone 5 discovered in 2012, but not a focus until acquired by Cupric in 2013
Slide 6: Khoemacau – Zone 5 Geology
NASDAQ: RGD Khoemacau – Zone 5 Geology2 Sediment‐hosted, structurally controlled, stratiform Cu‐Ag deposit Zone 5 Reserve & Resource2,3 P&P Resources3 Reserves M&I (incl.) Inferred Economic mineralization continuous through ore zone, Tonnes (000 t) 30,400 41,040 50,676 typically 60% bornite, 22% cha
Slide 7: Khoemacau – Production Profile
NASDAQ: RGD Khoemacau – Production Profile2 Mineable resource ~74M t @2.02% Cu and 21.4 g/t Ag Consistent production due to continuity of mineralization along strike and depth Ag contributes approximately 7% of project revenue Planned FS to review expansion potential Zone 5 Life of Mine Parameters:
Slide 8: Khoemacau – Zone 5 Mining
NASDAQ: RGD Khoemacau – Zone 5 Mining2 Zone 5 mine will consist of 3 separate mines: South, Central, North Individual boxcuts with independent twin ramp access for South and Central Each mine operates over ~1,000m strike length Each mine to produce 1.2M t/yr over first 5yrs Conventional sub‐level op
Slide 9: Khoemacau – Processing
NASDAQ: RGD Khoemacau – Processing2 Boseto plant commissioned 2012 Requires upgrades for higher grade, higher throughput Conventional sulfide flotation circuit to produce ~40% Cu concentrate Thickened tailings pumped to existing tailings storage facility Filtered tailings to be used for mine backfil
Slide 10: Portfolio Update
NASDAQ: RGD Portfolio Update Mount Milligan (Centerra)4 Achieved high end of 2018 guidance Work continuing on long‐term water solution 2019 guidance: 155‐175k oz gold, 65‐75M lb copper Expects reduced throughput until start of spring melt, returning to 55k t/day in H2 2019 Rainy River (New Gold)4 20
Slide 11: Portfolio Update
NASDAQ: RGD Portfolio Update Voisey’s Bay (Vale) Comprehensive settlement to long‐standing litigation — 2.7% royalty on all metals reinstated effective April 1, 2018 Voisey’s Bay underground expansion to extend mine life through to 20344 Nickel production 38k t/year from 2018 to 2020, ramping up to
Slide 12: Portfolio Update
NASDAQ: RGD Portfolio Update Pueblo Viejo (Barrick)4 Progressing towards FS for expansion project — Evaluating pre‐oxidation options (tank leach vs. leach pad) — Pilot flotation concentrator construction advanced — Evaluating additional tailings capacity options Target throughput increase by 50%, al
Slide 13: Portfolio Update
NASDAQ: RGD Portfolio Update Wassa (Golden Star)4 2019 guidance of 170‐180k oz; 17% higher than 2018 production Production expected to increase from 3,500 t/day in 2019 to 4,000 t/day in 2020, compared to 7,600 t/day mill capacity Work on underground potential underway — Inferred mineral resource es
Slide 14: Portfolio Update
NASDAQ: RGD Portfolio Update Peak Gold Project Joint Venture ownership: — 60% Contango Ore Inc. (CTGO) — 40% Royal Gold; plus: ‐ 12.7% equity interest in CTGO ‐ 2% and 3% royalty interests ‐ Operator Positive PEA6 results announced September 2018 — M&I resource7 9.2M t @ 4.08 g/t — $294M initial cap
Slide 15: Solid, Steady, Successful Performance
NASDAQ: RGD Solid, Steady, Successful Performance 400 Cash flow and growth from broad portfolio Indexed (May 22, 2006 = 300 Disciplined approach to capital deployment 200 Strong financial position 100) 100 Well positioned for new business opportunities 0 Leading shareholder return GDX Gold S&P500 RG
Slide 16: Endnotes
NASDAQ: RGD Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. Information on slides 5 through 9 was provided to the Company by Cupric Canyon Capital L.P., the owner and developer of the Khoemacau Project. Cupric is a priva
Slide 17: Diverse Portfolio of Long-Lived Assets
NASDAQ: RGD Diverse Portfolio of Long-Lived Assets Operator Mine Metal Royal Gold Interest Ongoing Payment Remaining CY 2018 CY 2019 Initial Until* Thereafter Initial Until* Thereafter Reserve Life Operator Actual Operator (years)1 Production Production Production Guidance1,2 Guidance1,2 Streams Cen
Slide 18: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
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