Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q2 FY2019 Earnings Presentation
13 slides from Royal Gold's earnings presentation, Feb 7, 2019
Slide 1: Second Fiscal Quarter 2019 Results
NASDAQ: RGLD Second Fiscal Quarter 2019 Results February 7, 2019
Slide 2: Cautionary Statement
NASDAQ: RGD 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 i
Slide 3: Today's Speakers
NASDAQ: RGD Today’s Speakers Tony Jensen Bill Heissenbuttel Mark Isto President and CEO CFO and VP Strategy VP Operations, Royal Gold Corporation 3
Slide 4: Q2 2019 Overview
NASDAQ: RGD Q2 2019 Overview Highlights Revenue of $97.6M Volume of 79,600 GEOs1 Earnings of $0.36/share Cash flow from operations of $58.8M Dividends of $16.4M Dividend raised from $1.00 to $1.06 per share Balance sheet continues to strengthen $1.2 billion of liquidity Well-positioned for new inves
Slide 5: Recent Developments
NASDAQ: RGD Recent Developments Peak Gold Project Joint Venture ownership: — 60% Contango Ore Inc. (CTGO) — 40% Royal Gold; plus: - 12.7% equity interest in CTGO - 2% and 3% royalty interests - Operator Positive PEA2 results announced September 2018 — M&I resource3 9.2M t @ 4.08 g/t — $294M initial
Slide 6: Recent Developments
NASDAQ: RGD Recent Developments Mount Milligan as reported by the operator4 Achieved high end of 2018 revised guidance Work continuing on long-term water solution Reduced throughput expected until start of spring melt, increasing to 55k t/day in H2 2019 2019 guidance: 155-175k oz gold, 65-75M lb cop
Slide 7: Recent Developments
NASDAQ: RGD Recent Developments Rainy River, Peñasquito as reported by the operators Calendar Q4 2018 mill run rate 25,835 t/operating day (20,668 t/calendar day at 80% availability) 1.42 g/t gold milled grade for calendar Q4 2018 Gold production of 77,202 oz in calendar Q4 2018, 227,284 oz in calen
Slide 8: Upcoming Catalysts
NASDAQ: RGD Upcoming Catalysts Sources of embedded growth, as reported by the operators Higher grade and mining rate expected in calendar 2019 4.5% NVR & 5% GSR royalty 3.2M oz gold in reserves5 Cortez Crossroads Mount Milligan Enhancements Calendar Q4 stream deliveries of 10.4k oz gold, 469k oz sil
Slide 9: Fiscal Q2 Financial Results
NASDAQ: RGD Fiscal Q2 Financial Results $97.6M revenue $23.5M earnings Lower earnings this quarter compared to fiscal Q2 2018: — GEO volume of 79,600 vs 89,700 — Prices down: Au ↓4%, Ag ↓13%, Cu ↓9% — $6.0M tax benefit — $3.6M equity mark-to-market charge G&A of $7.4M DD&A of $488/GEO OCF of $58.8M
Slide 10: Fiscal Q2 Liquidity
NASDAQ: RGD Fiscal Q2 Liquidity $1.2B of liquidity available Working capital increased to $167M at December 31, 2018 Expect to repay $370M June 2019 bonds with cash from revolver December 31, 2018 Amount (US$ M) Undrawn revolver $1,000 Working capital $167 Total available liquidity $1,167 Additional
Slide 11: Solid, Steady, Successful
NASDAQ: RGD Solid, Steady, Successful Q2 2019 operating performance met guidance Strong liquidity Positive business environment → Well-positioned for new business opportunities 11
Slide 12: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
Slide 13: Endnotes
Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. The results of the Preliminary Economic Assessment (PEA) are preliminary in nature and are based on various assumptions. These assumptions may be affected by environmental,