Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — TD Securities Mining Conference 2020
16 slides from Royal Gold's conference presentation, Jan 23, 2020
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference Alistair Baker, Director Business Development January 23, 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 certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known
Slide 3: FQ1 2020 Overview
FQ1 2020 Overview Financial/operating performance: Volume of 80,700 GEOs* Revenue of $118.8M, 79% from gold $71.2M cash flow from operations $70.5M net income ($1.07/share) $17.4M in dividends Significant strategic achievements: Balance sheet continues to strengthen • Reduced debt by $50M • ~$1B of
Slide 4: Royal Gold Attributes
Royal Gold Attributes Business Model Optionality Highly efficient Portfolio Diverse, gold focused High quality Generating organic growth Capital Deployment Discipline Accretive, non-dilutive Financial Position Strong liquidity Solid capital structure Total Shareholder Return (TSR) Leading commitment
Slide 5: Business Model – Lower Risk with Optionality
Business Model – Lower Risk with Optionality Royal Gold seeks upside from metal prices, production expansion and reserve conversion with reduced downside from management risk Producer Royal Gold Illustrative Expected Return Return downside: Return upside: • Higher operating costs • Increased metal p
Slide 6: Business Model – Efficient
Business Model – Efficient Royal Gold revenue per employee ranks second compared to the S&P 500 6
Slide 7: Business Model – Efficient
Business Model – Efficient Royal Gold has a larger operating portfolio and a fraction of the employee count compared to the major gold and base metals producers 7
Slide 8: Portfolio – Diverse, Gold Focused
Portfolio – Diverse, Gold Focused 186 PROPERTIES 4 PRODUCING 11 DEVELOPMEN 46 EVALUATION T 87 EXPLORATION 2 PRINCIPAL PROPERTIES 1 ANDACOLLO – Region IV, Chile 2 CORTEZ – Nevada, USA 3 MOUNT MILLIGAN – British Columbia, Canada 4 PEÑASQUITO – Zacatecas, Mexico 5 PUEBLO VIEJO – Sanchez Ramirez, Domini
Slide 9: Portfolio – High Quality
Portfolio – High Quality ~60% of net revenue from operations in 1st and 2nd quartile of cash cost curve 90% from below 4th quartile 9
Slide 10: Portfolio – Generating Organic Growth
Portfolio – Generating Organic Growth Average remaining mine life of 14 years (weighted by revenue contribution) Asset maturity 10
Slide 11: Capital Deployment – Discipline
Capital Deployment – Discipline Transacting at the right times, not at all times Last wave of large financial restructuring has passed Equity scarcity could bring project development and M&A opportunities Financial Restructuring Lack of Equity 11
Slide 12: Capital Deployment – Accretive, Non Dilutive
Capital Deployment – Accretive, Non Dilutive Growth funded through cash flow and strategic use of debt, independent of the gold price Last follow-on equity offering completed October 15, 2012 12
Slide 13: Strong Financial Position – Capital Structure
Strong Financial Position – Capital Structure Royal Gold is well capitalized ~$1B of liquidity at September 30, 2019 • Including $830M available on Credit Facility FY 2019 OCF of $253.2M Market Statistics(a) Share Price US$/share $112.37 52-Week Range US$/share $80.65 - $138.78 (b) Shares Outstandin
Slide 14: TSR – Leading Commitment to Dividends
TSR – Leading Commitment to Dividends Dividend set at a sustainable level 18% CAGR in dividends per share 2001-2019 14
Slide 15: TSR – Attractive Historical Return
TSR – Attractive Historical Return Efficient business model Strong financial position Diverse portfolio Competitive total Disciplined capital deployment shareholder return 15
Slide 16: Royal Gold contact details
1144 15th Street, #2500 Denver, Colorado 80202 303.573.1660 www.royalgold.com NASDAQ: RGLD