Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q1 FY2017 Earnings Presentation
16 slides from Royal Gold's earnings presentation, Nov 3, 2016
Slide 1: Fiscal First Quarter Results
Fiscal First Quarter Results Royal Gold, Inc. November 3, 2016
Slide 2: Cautionary Statement
Cautionary Statement 2 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: Today's Speakers
Today’s Speakers 3 Tony Jensen Bill Heissenbuttel Stefan Wenger President VP CFO and and CEO Corporate Treasurer Development November 3, 2016
Slide 4: Royal Gold Vision and Strategy
Royal Gold Vision and Strategy 4 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
Slide 5: Record Performance in Q1 FY17
Record Performance in Q1 FY17 5 Record results driven by Pueblo Viejo, Mount Milligan and Andacollo Record Revenue Record Adjusted EBITDA1 $140 $100 $120 $USD Millions $80 $USD Millions $100 $60 $80 $60 $40 $40 $20 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Net Gold
Slide 6: Long Lived, Quality Properties
Long Lived, Quality Properties 6 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 discounted cash flow basis Strong operator and balance sh
Slide 7: Long Lived, Quality Properties
Long Lived, Quality Properties 7 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 that grades are improving in current quarter Pueb
Slide 8: Cortez Summary
Cortez Summary 8 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 3, 2016
Slide 9: Cortez Summary
Cortez Summary 9 Table below describes Royal Gold’s interests at Cortez Summary includes our expanded interest at Crossroads Majority of Crossroads will be heap leach with higher grade refractory ore shipped to Goldstrike for processing Subject to Royal Royalty Nature of Current Deposit Gold Int
Slide 10: Cortez Summary
Cortez Summary 10 Goldrush offers long term potential for growth (Royal Gold’s 1% NVR interest in green below)1 1 Source: Barrick. Illustration is an estimate of Royal Gold’s royalty interest. No landmarks or coordinates given in original image. November 3, 2016
Slide 11: Financial Results and Liquidity
Financial Results and Liquidity 11 Revenue of $117.9 million FQ1 tax rate of ~21% FQ1 DD&A of ~$455 per GEO, within guidance range of $450-$500 for FY2017 Date Item ($USD millions) September 30, 2016 Undrawn Revolver $305m September 30, 2016 Working Capital $166m September 30, 2016 Total Available L
Slide 12: Royal Gold Vision and Strategy
Royal Gold Vision and Strategy 12 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 upsid
Slide 13: Appendix
Appendix 13 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 November 3, 2016
Slide 14: Board of Directors
Board of Directors 14 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 15: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation 15 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 16: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com