Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Gold Forum Americas 2019
17 slides from Royal Gold's conference presentation, Sep 16, 2019
Slide 1: Gold Forum Americas 2019
Gold Forum Americas 2019 Tony Jensen, President & CEO September 2019 NASDAQ: RGLD
Slide 2: Welcome to Colorado
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Slide 3: 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 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 Significant strategic achievements: Balance sheet continues to strengt
Slide 5: 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 6: Business Model – Lower Risk with Optionality
Business Model – Lower Risk with Optionality Royal Gold seeks upside from metal prices, production expansion and reserve conversion with reduced downside from management risk Producer Royal Gold Illustrative Expected Return Return downside: Return upside: • Higher operating costs • Increased metal p
Slide 7: Business Model – Efficient
Business Model – Efficient Royal Gold revenue per employee ranks second compared to the S&P 500 7
Slide 8: Business Model – Efficient
Business Model – Efficient Royal Gold has a larger operating portfolio and a fraction of the employee count compared to the major gold and base metals producers 8
Slide 9: Portfolio – Diverse, Gold Focused
Portfolio – Diverse, 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 Ramirez, Dominica
Slide 10: Portfolio – High Quality
Portfolio – High Quality ~60% of net revenue from operations in 1st and 2nd quartile of cash cost curve 90% from below 4th quartile 10
Slide 11: Portfolio – Generating Organic Growth
Portfolio – Generating Organic Growth Average remaining mine life of 14 years (weighted by revenue contribution) Asset maturity 11
Slide 12: Capital Deployment – Discipline
Capital Deployment – Discipline Transacting at the right times, not at all times Last wave of large financial restructuring has passed Equity scarcity could bring project development and M&A opportunities Financial Restructuring Lack of Equity 12
Slide 13: Capital Deployment – Accretive, Non Dilutive
Capital Deployment – Accretive, Non Dilutive Growth funded through cash flow and strategic use of debt, independent of the gold price Last follow-on equity offering completed October 15, 2012 13
Slide 14: Strong Financial Position – Capital Structure
Strong Financial Position – Capital Structure Royal Gold is well capitalized $900M of liquidity, including $780M available on Credit Facility FY 2019 OCF of $253.2M Market Statistics(a) Share Price US$/share $124.26 52‐Week Range US$/share $70.16 ‐ $138.78 Shares Outstanding(b) M 65.5 Market Capital
Slide 15: TSR – Leading Commitment to Dividends
TSR – Leading Commitment to Dividends Dividend set at a sustainable level 18% CAGR in dividends per share 2001-2019 15
Slide 16: TSR – Attractive Historical Return
TSR – Attractive Historical Return Efficient business model Strong financial position Diverse portfolio Competitive total shareholder return Disciplined capital deployment 16
Slide 17: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, Colorado 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD