Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Shareholder Meeting (November 2016)
20 slides from Royal Gold's shareholder meeting presentation, Nov 16, 2016
Slide 1: Royal Gold, Inc. Annual Meeting
Royal Gold, Inc. Annual Meeting Tony Jensen, President and CEO November 16, 2016
Slide 2: Cautionary Statement
Cautionary Statement 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 results to differ m
Slide 3: Royal Gold Vision & Strategy
Royal Gold Vision & Strategy 3 Gold Focused Reinvest Free Invest at the Pay a Be the Most Cash Flow in Troughs and Growing and Valuable, Not Long Lived be Patient at Sustainable Necessarily Properties the Top Dividend the Largest Value created by providing gold price optionality and reserve upside l
Slide 4: Percentage of Revenue by Metal
Gold Focused 4 Majority of past and future revenue from gold Royal Gold expects ~75% of estimated net revenue from gold on a pro- forma basis1 Gold Silver Other 100% 90% 80% Percentage of Revenue by Metal 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 5: Reinvest Cash Flow in Long Lived Properties
Reinvest Cash Flow in Long Lived Properties 5 Robust Portfolio 80% of our portfolio asset value is in mines with reserve life >15 years,1 including: Years of remaining mine life Years in production since we've owned our stream or royalty interest 25 20 15 10 Disciplined 5 capital allocation 0 Mt. An
Slide 6: Cornerstone properties drive growth
Reinvest Cash Flow in Long Lived Properties 6 Cornerstone properties drive growth Cornerstone properties generate cash flow and lead to more diversification $350 Pueblo $300 Viejo Wassa and Gross Revenue $USD millions Prestea $250 $200 Peñasquito $150 $100 Disciplined Mount Milligan capital allocati
Slide 7: Recent acquisitions expand the portfolio
Reinvest Cash Flow in Long Lived Properties 7 Recent acquisitions expand the portfolio Seizing unique opportunities to enhance diversity and drive growth1 Acting as a catalyst for Centerra -Thompson Creek deal Mount Milligan stream amended; 35% gold, 18.75% copper Stream value-neutral on a disco
Slide 8: Crossroads addition at Cortez
Reinvest Cash Flow in Long Lived Properties 8 Crossroads addition at Cortez Cortez camp includes several royalty areas of interest to Royal Gold Pipeline, South Pipeline, Gap, Crossroads and Goldrush The Cortez camp is located 100km southwest of Elko, Nevada. All photos from Barrick. November 16,
Slide 9: New developments at key properties
Reinvest Cash Flow in Long Lived Properties 9 New developments at key properties Operators’ innovation, capital and exploration at no incremental capital cost to Royal Gold1 Peñasquito Pyrite Leach under construction Incremental annual production; 100-140k ozs Au, +4-6m ozs Ag Goldcorp notes t
Slide 10: Invest at the Troughs, be Patient at the Top
Invest at the Troughs, be Patient at the Top 10 Disciplined capital allocation We have maintained a strong balance sheet and deployed capital at opportunistic times1 $1,900 5 Years, November 2011-November 2016 $1,800 Mt. Milligan II $1,700 Spot Gold Price in US Dollars $1,600 $1,500 Andacollo Stream
Slide 11: Paying a Growing and Sustainable Dividend
Paying a Growing and Sustainable Dividend 11 A commitment to returning capital to shareholders 16 straight years of dividend increases Dividend will increase to $0.96 per share in CY2017 20% compound annual growth rate (CAGR) in dividends per share since 2001 Equates to 1.5% annual yield (November 1
Slide 12: Strong growth in operating and financial results
Most Valuable, Not Necessarily the Largest 12 Strong growth in operating and financial results Record results driven by Pueblo Viejo, Mount Milligan and Andacollo Record Revenue Record Adjusted EBITDA1 $140 $100 $120 $USD Millions $USD Millions $80 $100 $60 $80 $60 $40 $40 $20 Q1FY16 Q2FY16 Q3FY16 Q
Slide 13: Focus on per share metrics
Most Valuable, Not Necessarily the Largest 13 Focus on per share metrics We have demonstrated positive stewardship of shareholder capital Our share count is a fraction of our peers, and nearly unchanged since Oct 2012 Millions of Common Shares Outstanding Net Gold Equivalent Ounces (GEOs) per Millio
Slide 14: Optionality and conversion leverage
Most Valuable, Not Necessarily the Largest 14 Optionality and conversion leverage Initial investment Cumulative net revenue through September 30, 2016 Estimated remaining mine life $1,000 25 Estimated Years of Remaining Reserves3 $800 20 $USD Millions $600 15 $400 10 $200 5 $- 0 1 Includes proceeds
Slide 15: Solid performance history
Most Valuable, Not Necessarily the Largest 15 Solid performance history RGLD total return outperformed S&P 500 Total Return & Gold Price since 2000 RGLD Total Return Gold Price in US Dollars % Change S&P 500 Total Return Level % Change 3,500 3,000 2,500 Percentage Total Return 2,000 1,500 1,000 500
Slide 16: Simple and efficient business model
Most Valuable, Not Necessarily the Largest 16 Simple and efficient business model Straight forward strategy Portfolio of high quality, long lived assets Growth embedded in current portfolio Attractive returns, leveraged to price and reserve optionality Disciplined capital allocation and processes Ex
Slide 17: Board of Directors
Board of Directors 17 Directors (from left to right): Jamie Sokalsky, Independent Director; Former President and CEO, Barrick Gold Corporation Kevin McArthur, Independent Director; Executive Chair, Tahoe Resources and Former CEO and Director, Goldcorp, Inc. Gordon Bogden, Independent Director; Forme
Slide 18: Portfolio of Assets
Portfolio of Assets 18 Diverse, Long Lived Properties Streams (at September 30, 2016) Reserve CY2016 RGLD RGLD RGLD pays RGLD pays Remaining Operator Operator Mine Metal RGLD interest until until until until until interest interest (per ounce) (per ounce) Mine Life Guidance (Years) (ounces)1 Mount T
Slide 19: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation 19 Adjusted EBITDA Reconciliation: For The Three Months Ended 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 Net (loss) income $ (44,941) $ 13,920 $ (69,498) $ 18,082 $ 26,955 Depreciation, depletion and amortization 27,147 40,407 38,163 35,391 40,102 Non-cash empl
Slide 20: Contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com