Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — CIBC 2014 Royalties Conference
19 slides from Royal Gold's conference presentation, June 2014
Slide 1: CIBC 2014 Royalties Conference
CIBC 2014 Royalties Conference Stefan Wenger Chief Financial Officer & Treasurer June 2014
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
Slide 3: Royal Gold: The Quality Royalty/Streaming Name to Own
Royal Gold: The Quality Royalty/Streaming Name to Own Longevity – in business since 1981 Near-Term Growth – ~60% volume growth expected High Quality Portfolio – excellent properties with strong economics Clear Alignment with counterparties and shareholders – Delivering a compelling cost of capital t
Slide 4: Strong Near Term Growth: Gold Equivalent Ounces
Strong Near Term Growth What Mt. Milligan will deliver on a quarterly basis 1 What Mt. Milligan will contribute to our total GEO’s 2 280,000 Full Projected Quarterly Gold Equivalent Ounces (GEO’s) Run Rate Apr 2014 Month ended Mt. Milligan 180,000 Andacollo Mar 2014 Quarter Voisey's Bay Peñasquito D
Slide 5: Strong Near Term Growth: Mt. Milligan Stream Agreement Details
Strong Near Term Growth Mt. Milligan Stream Agreement Details Stream: 1 52.25% of payable Au Reserves: 2 6.0M oz Au Mine Life: 3 22 Years Commercial Production achieved in February 2014 Mt. Milligan Facilities, July 2013 Calendar 2014 guidance 165,000-175,000 oz payable Au production (100% basis) Fu
Slide 6: Phoenix Stream Agreement Overview
Strong Near Term Growth Phoenix Stream Agreement Overview Investment of $75 million to Rubicon Minerals in five installments – $30 million paid in FQ3, expect to pay balance of $45 million later this year Project Attributes: – High grade deposit – Stable political jurisdiction Phoenix project, Red L
Slide 7: Phoenix Stream Agreement Details
Strong Near Term Growth Phoenix Stream Agreement Details Stream: 6.3% of Au production (until 135,000 ounces); 3.15% thereafter Delivery payment of 25% of spot price at time of delivery LOM projected production: 2.19M oz (Au) 1 Phoenix headframe and ore bin, April 2014 Production start-up: mid-2015
Slide 8: High Quality Portfolio: Producing Cornerstone Properties
High Quality Portfolio Producing Cornerstone Properties Andacollo Contribution to Royalty: 1 75% of Au production (NSR) FY2014 Q3 revenue Reserves: 2 1.8M oz (Au) 17.5% or Estimated Mine Life: 20+ Years $10.2M Peñasquito Contribution to FY2014 Q3 revenue Royalty: 2.0% NSR Reserves: 3,4 11.6M oz (Au)
Slide 9: Cash Margin by Operating Property
High Quality Portfolio Cash Margin by Operating Property Calendar Year 2013 80% 70% 60% 50% Weighted Average Cash Margin 49% 40% 30% 20% 10% 0% June 2014 9
Slide 10: Alignment with Counterparties
Alignment with Counterparties Hypothetical example estimate for illustrative purposes only: 1 Equity Stream 200koz/year gold project expansion, 2 year development, 12 yr mine life Current market cap $300,000,000 $300,000,000 Shares outstanding 200,000,000 200,000,000 Share price $1.50 $1.50 Financin
Slide 11: Alignment with Shareholders
Alignment with Shareholders 75% of Compensation Paid to our Named Executive Officers for Fiscal 2014 is Performance-Based 1 – Performance shares are only earned if 10% CAGR in adjusted free cash flow 2 per share is achieved, with vesting at 25% thresholds • Performance shares are forfeited if goal i
Slide 12: Strong Liquidity
Strong Liquidity ~$1B Uncommitted Liquidity at 3/31/2014 $687M Working Capital $450M Undrawn Credit Debt and $370M convertible Commitments debt 2019 @2.875% * LTM Operating Cash $155.2M Flow $0 $200 $400 $600 $800 $1,000 $1,200 $USD Millions * Includes Commitments for Goldrush ($7M), Phoenix ($45M),
Slide 13: Per-Share Performance
Per-Share Performance Royal Gold has more favorable per-share results on important measures, while still trading at a discount to peers on book value RGLD Price to Book Value 4 3.5 3 2.5 Peer Avg 2.2x 2 Current 1.87x 1.5 1 June 2014 13
Slide 14: Endnotes
Endnotes World Class Royalty Company <3 Ip ROYALG OLD, INC
Slide 15: Endnotes
Endnotes Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 4 STRONG NEAR TERM GROWTH 1. Full run rate Mt. Milligan Go
Slide 16: Endnotes (cont.)
Endnotes (cont.) Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 10 ALIGNMENT WITH COUNTERPARTIES 1. Example is hyp
Slide 17: Appendix A: Property Portfolio
Appendix A: Property Portfolio
Slide 18: Financially Robust: Diverse Portfolio of Assets
Financially Robust Diverse Portfolio of Assets June 2014 18
Slide 19: Contact
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com