Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Merrill Lynch Canada 12th Annual Mining Conference 2006
21 slides from Royal Gold's conference presentation, September 2006
Slide 1: The Precious Metals Royalty Company
The Precious Metals Royalty Company Merrill Lynch Canada 12th Annual Mining Conference September 2006
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 Some matters contained in this presentation are forward-looking statements that involve risks and uncertainties that could cause actual events to differ materially from these projections or estimates. Such forward-lookin
Slide 3: Who We Are
Who We Are Leading major precious metals royalty company Royalties on some of the best mines in the best mining districts Solid financial strength Strong track record of growth
Slide 4: Strong Track Record of Growth
Strong Track Record of Growth Fiscal Years Ending June 30 $ in Millions
Slide 5: Five-year Price Performance Compared with Peer Companies
Five-year Price Performance Compared with Peer Companies 1,000% 750% 500% 250% July 2001 June 2006
Slide 6: Five-year Price Performance Compared with Gold
Five-year Price Performance Compared with Gold 800% 600% 400% 200% July 2001 July 2006 *Gold price – London PM Fix
Slide 7: Growth Drivers
Growth Drivers High margins Low operating risk Efficient business model Exposure to no-cost organic growth Strong balance sheet
Slide 8: Comparison of Operating Cash Flow Margins
Comparison of Operating Cash Flow Margins Growth Drivers July 2005–June 2006 High margins Low operating risk Efficient business model Exposure to no-cost organic growth Strong balance sheet *Glamis, Barrick, Newmont, Goldcorp. Calendar year data converted to fiscal year data. NOTE: Operating cash fl
Slide 9: Comparison of Net Profit Margins
Comparison of Net Profit Margins Growth Drivers July 2005–June 2006 High margins Low operating risk Efficient business model Exposure to no-cost organic growth Strong balance sheet *Glamis, Barrick, Newmont, Goldcorp. Calendar year data converted to fiscal year data. NOTE: Net profit margin = net ea
Slide 10: Three-year Change in Gold Producer Price Index
Three-year Change in Gold Producer Price Index* Growth Drivers High margins Low operating risk 68% Growth Efficient business model Exposure to no-cost organic growth Strong balance sheet *U.S. Department of Labor – Bureau of Labor Statistics
Slide 11: "No-Cost" Growth at Bald Mountain
“No-Cost” Growth at Bald Mountain Growth Drivers High margins Gold Contained Ounces (Millions) Low operating risk Efficient business model Exposure to no-cost organic growth Strong balance sheet
Slide 12: Fiscal 2005 Royalty Portfolio
Fiscal 2005 Royalty Portfolio
Slide 13: Fiscal 2006 Property Additions
Fiscal 2006 Property Additions
Slide 14: Robinson (Nevada)
Robinson (Nevada) • Operator: Quadra Mining • Open pit mining; mill concentrator • 3.0% NSR royalty • Reserves: • 1.2M oz. Au • 2.2B lbs. Cu • CY 2006 Production: • 53,500 oz. Au • 125 to 130M lbs. Cu • 0.5 to 1.0M lbs. Mo • Receipt of royalty revenue began May 2006 • Mine life: 10 years *Reserves a
Slide 15: Mulatos (Mexico)
Mulatos (Mexico) • Operator: Alamos Gold • Open pit mining; heap leach processing • 0.30–1.5% NSR sliding-scale royalty (capped at 2.0M oz. production) • Reserves: 1.9M oz. Au • Additional mineralization: • 153.2M tons at 0.026 opt • (139.0M tonnes at 0.893 gpt) • CY 2006 Production: • 110,000–120,0
Slide 16: Taparko (Burkina Faso)
Taparko (Burkina Faso) • Operator: High River Gold • $35.0M investment • Open pit mining; CIL processing; mine under construction • Four royalties: TB-GSR1: 15.0% • TB-GSR2: 4.30% between $385-$430 Au (sliding-scale outside of this range) • TB-GSR3: 2.0% perpetual royalty • TB-MR: 0.75% milling roya
Slide 17: Current Royalty Portfolio
LEEVILLE NORTH & SOUTH EUREKA COUNTY, NEVADA Newmont | SJ CLAIMS | N Ex V AI DA - (GOLDSTRIKE MINE) | ‘ | EUREKA COUNTY, NEVADA _ zat ROBINSON Barrick WHITF PINF COUNTY, Sey NEVADA fe Quadra PIPELINE MINING BALD MOUNTAIN COMPLEX WHITE PINE COUNTY, LANDER COUNTY, NEVADA NEVADA Barrick * ROYALGOLD,INC
Slide 18: Reserves Subject to Royalty Interests
Reserves Subject to Royalty Interests at December 31, 2004 and December 31, 2005 Gold Silver* Copper* *A portion of Ag and Cu reserves are subject to a $10.5M maximum royalty payout.
Slide 19: Increased Revenue Diversification
Increased Revenue Diversification 2004 2005 2006 2007 E* *Assuming no additional royalties added to portfolio.
Slide 20: Creating Value for Shareholders
Creating Value for Shareholders Dividend Yield: 0.80% • Pursue acquisitions that are both Dividend Payout Ratio: 28%* strategic and accretive $0.22 $0.20 • Efficient business model $0.15 • Protect margins and grow cash flow $0.10 $0.075 • Maintain financial strength and flexibility • Cash: $70M • No
Slide 21: An Investment With Weight To It
An Investment With Weight To It ROYAL GOLD, INC 1660 Wynkoop Street Suite 1000 Denver, Colorado 80202-1132 PHONE (303) 573-1660 FAX (303) 595-9385 EMAIL info@royalgold.com WEB www.royalgold.com
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