Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — CIBC: The Mining Royalty Sector From All Angles (July 2013)
17 slides from Royal Gold's conference presentation, Jul 16, 2013
Slide 1: CIBC: The Mining Royalty Sector From All Angles
CIBC: The Mining Royalty Sector From All Angles JULY 16, 2013 Page 1
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 Profile
Royal Gold Profile $2.8B royalty and streaming company US-based, NASDAQ (RGLD) and TSX (RGL) listed Corporate Status: Substantial near term growth funded Portfolio of long lived, high quality core assets 10+ years of dividend growth with ~1.9% current yield Robust balance sheet and strong un
Slide 4: Near Term Growth in Place
Near Term Growth in Place Estimated Ounces 350 Net Gold Equivalent Ounces in Thousands 300 Future Estimate Pascua-Lama 250 ~55% estimated 200 Mt. Milligan Current increase from 2012 due ~160k oz/yr to Mt. Milligan alone 150 Other Street RGLD5 S&P DJIA6 100 Estimated (post- 5006 selloff Voisey’s Bay
Slide 5: Market Conditions Shifting Quickly
Market Conditions Shifting Quickly US Corporate AAA Effective Yield1 3 2.8 2.6 2.4 2.2 2 1.8 1.6 1.4 1.2 1 Operators, explorers and developers facing less favorable equity markets and debt markets 2012 had lowest percentage of mining finance from equity in a decade2 Yields increasing for corporate d
Slide 6: Opportunistic Acquisitions
Opportunistic Acquisitions Gold Price in US Dollars at Time of Key Transactions $2,000 $1,800 $1,600 Voisey’s Bay (IRC) Dec 09 $1,400 Andacollo Pascua-Lama1 Apr 09 Peñasquito Jan 07 $1,200 Dec 06 $1,000 Mt. Milligan I July 10 Mt. Milligan II $800 & III Dec 11 and Aug 12 $600 $400 $200 $0 Page 6
Slide 7: Property Portfolio
Property Portfolio Book Value of Royalty/Stream Interests ……..………………………………$2.1B Current Net Reserves Attributable……………….………………………6.2M GEO Royalty/Stream Net Gold Equivalent3..………………....................$338/GEO Page 7
Slide 8: Cornerstone Properties
Cornerstone Properties Andacollo Royalty: 1 75% of gold production (NSR) Reserves: 2 1.8M oz (Au) Est. Mine Life: 20+ Years Est. CY 2013 Production: 3 63,000 ozs (Au) Peñasquito Royalty: 2.0% NSR Reserves: 2,5 15.7M oz (Au), 912M oz (Ag) Est. Mine Life: 22 Years Est. CY 2013 Production: 4 360,000 to
Slide 9: Mt. Milligan (Thompson Creek) Growth Catalyst
Mt. Milligan (Thompson Creek) Growth Catalyst British Columbia, Canada Mine profile: Open pit copper/gold porphyry Forecast Gold Production 2 300 Reserves: 6.0M oz gold Ounces/Thousands 250 262,000 ozs of gold annually during 200 Est. production: first six years; 194,000 ozs of gold 150 annually ove
Slide 10: Mt. Milligan (Thompson Creek) Investment Summary
Mt. Milligan (Thompson Creek) Investment Summary British Columbia, Canada Transaction summary: 25% of gold for $311.5M in July 2010 15% of gold for $270M in December 2011 12.25% of gold for $200M in August 2012 = 52.25% of gold for $781.5M Delivery payment of $435/oz or prevailing market price Mt. M
Slide 11: Mt. Milligan (Thompson Creek) Attractive Attributes
Mt. Milligan (Thompson Creek) Attractive Attributes British Columbia, Canada Favorable geographic location Provincial and Federal permits Strong local and regional infrastructure: Low cost power Adequate water Low strip ratio Road, rail and port access Support communities Long mine life Exploration
Slide 12: Photo as of September 2012.
Photo as of September 2012. Page 12
Slide 13: Photos as of February 2013.
Photos as of February 2013. Page 13
Slide 14: Balance Sheet
Balance Sheet Percentage Increase in per Share Metrics Since the Last Time RGLD Traded at $41 per Share Status ($M) 3-31-13 280% 300% Cash $673 248% 250% Credit Facility $350 166% Total Liquidity $1,023 200% 150% Debt $300 100% 53% 2013 50% Commitments $13 0% Net Cash per Cash Flow per EBITDA per Sh
Slide 15: Endnotes
Endnotes Page 15
Slide 16: Endnotes
Endnotes PAGE 4 NEAR TERM GROWTH IN PLACE fiscal 2013. 11. Estimated production of 262,000 ounces of gold annually 1. Gold equivalent ounces for fiscal 2012 were calculated by 2. Royal Gold considers and categorizes an exploration during the first six years; 195,000 ounces of gold dividing actual re
Slide 17: 1660 Wynkoop Street Denver, CO 80202-1132
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com Page 17
Royal Gold — CIBC: The Mining Royalty Sector From All Angles (July 2013) on 6ix