Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Shareholder Meeting (November 2019)
25 slides from Royal Gold's shareholder meeting presentation, Nov 20, 2019
Slide 1: Fiscal 2019 Annual Shareholders Meeting
Fiscal 2019 Annual Shareholders Meeting November 20, 2019 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: Management's Report
Management's Report DISCIPLINED | SUCCESSFUL fj STRATEGY | RESULTS Yh ROYALGOLD, INC Fis | Say , 6
Slide 4: Fiscal 2019 Overview
Fiscal 2019 Overview Financial/operating performance: Volume of 335,000 GEOs* Revenue of $423.1M, 78% from gold $253.2M cash flow from operations $93.8M earnings ($1.43/share) $67.5M in annual dividends, 19th consecutive increase Market performance 11.7% total shareholder return, vs S&P at 10.4% $10
Slide 5: Khoemacau Transaction
Khoemacau Transaction High quality silver stream Long life: 21 year estimated initial mine life High grade deposit: ~2% copper, 21 g/t silver Exploration upside: 22 km x 8 km AOI Good jurisdiction: Botswana Capable counterparty: Cupric Canyon Capital Sizeable: $212-265M advance payment and $25M cost
Slide 6: Khoemacau Transaction
Khoemacau Transaction On the Kalahari Copper Belt in NW Botswana 4,040 km2 of mineral concessions Royal Gold area of interest ~176 km2 Consolidated package assembled by Cupric: Concessions acquired from Hana Mining in 2013 Additional concessions and Boseto mill acquired from Discovery Metals in 2015
Slide 7: Khoemacau Transaction
Khoemacau Transaction Cupric expects consistent production due to continuity of mineralization along strike and depth Silver contributes approximately 7% of project revenue PFS to review expansion potential completed Zone 5 Life of Mine Parameters: Throughput 10,000 t/d Ave. Cu production 62k t/yr C
Slide 8: Khoemacau Progress
Khoemacau Progress North Boxcut Central Boxcut Peñasquito Rainy River South Boxcut Khoemacau 8
Slide 9: Khoemacau Progress
Khoemacau Progress Existing Boseto infrastructure Khoemacau Peñasquito Rainy River Boxcut geocell installation Zone 5 – Boseto access corridor 9
Slide 10: 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 11: Royal Gold Attributes – Efficient Business Model
Royal Gold Attributes – Efficient Business Model Royal Gold revenue per employee ranks second compared to the S&P 500 11
Slide 12: Royal Gold Attributes – Diverse and Gold Focused
Royal Gold Attributes – Diverse and Gold Focused 186* PROPERTIES 41 PRODUCING 16 DEVELOPMENT 47 EVALUATION 82 EXPLORATION 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 R
Slide 13: Royal Gold Attributes – High Quality Portfolio
Royal Gold Attributes – High Quality Portfolio ~60% of net revenue from operations in 1st and 2nd quartile of cash cost curve 90% from below 4th quartile 13
Slide 14: Royal Gold Attributes – Optionality and Organic Growth
Royal Gold Attributes – Optionality and Organic Growth Average remaining mine life of 14 years (weighted by revenue contribution) Asset maturity 14
Slide 15: Royal Gold Attributes – Accretive Results
Royal Gold Attributes – Accretive Results Growth funded through cash flow and strategic use of debt, independent of the gold price Last follow-on equity offering completed October 15, 2012 15
Slide 16: 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 17: Royal Gold Attributes – Attractive Historical TSR
Royal Gold Attributes – Attractive Historical TSR Total Shareholder Return Royal Gold vs. Gold, GDX and S&P 500 17
Slide 18: The Way Forward
The Way Forward Continue to grow the revenue base Remain focused on precious metals, gold in particular Maintain a conservative capital structure to be well positioned for investment opportunities Grow from cash from operations and debt facility Pay a growing and sustainable dividend Be a leader in
Slide 19: The Way Forward
The Way Forward Senior management team: Mark Isto – Executive Vice President and COO Paul Libner – CFO and Treasurer Randy Shefman – Vice President and General Counsel Dan Breeze – Vice President Corporate Development of Royal Gold AG Combined 35 years of experience within Royal Gold 19
Slide 20: Chairman's Address
Chairman’s Address DISCIPLINED | SUCCESSFUL fj STRATEGY | RESULTS Yh ROYALGOLD, INC Fis | Say , 6
Slide 21: Portfolio Breadth
Portfolio Breadth Present* • 41 producing assets • 16 development projects • 47 evaluation projects • 82 exploration properties Share Price ($/share) 2004 • 5 producing assets • 13 exploration properties * As of June 30, 2019 21
Slide 22: Company Reach
Company Reach Present • 23 Employees • Offices in Denver, Zug, Toronto, Vancouver • Global portfolio Share Price ($/share) 2004 • 13 employees • Denver office • Nevada-focused 22
Slide 23: Financial Results
Financial Results Present** • $7,500M market capitalization • $423M revenue • $1.12/share dividend Share Price ($/share) 2004* • $442M market capitalization • $16M revenue • $0.10/share dividend * $442M market capitalization as of June 30, 2003; $16M total revenue for FY 2003; $0.10/share dividend f
Slide 24: Total Shareholder Return
Total Shareholder Return RGLD: NASDAQ Gold S&P 500 0% 100% 200% 300% 400% 500% 600% Total Return (%) *June 16, 2003 to November 5, 2019 Source: Caplio Mf ROYALGOLD,INC 24
Slide 25: Fiscal 2019 Annual Shareholders Meeting
Fiscal 2019 Annual Shareholders Meeting November 20, 2019 NASDAQ: RGLD