Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q3 2019 Earnings Presentation
15 slides from Royal Gold's earnings presentation, May 1, 2019
Slide 1: Third Quarter 2019 Results
NASDAQ: RGLD Third Quarter 2019 Results May 2, 2019
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: Today's Speakers
Today’s Speakers Tony Jensen President and CEO Mark Isto VP Operations, Royal Gold Corporation Bill Heissenbuttel CFO and VP Strategy 3
Slide 4: Q3 2019 Overview
Q3 2019 Overview Highlights Revenue of $109.8M Volume of 84,200 GEOs1 Earnings of $0.44/share Cash flow from operations of $77.4M Dividends of $17.4M ($0.265 per share) Balance sheet continues to strengthen Over $1.2 billion of liquidity Well-positioned for new investment opportunities Announced acq
Slide 5: Recent Developments – Khoemacau Stream Transaction
Recent Developments – Khoemacau Stream Transaction between RGLD Gold AG, a wholly owned subsidiary of Royal Gold, Inc., and a wholly owned subsidiary of Cupric Canyon Capital LP (“Cupric”) $212-265M advance payment: — Silver Stream: $212M for 80% of Ag produced — Option Stream: Up to $53M additional
Slide 6: Recent Developments – Khoemacau Stream
Recent Developments – Khoemacau Stream2 Average Ag deliveries expected to be 1.5M oz/yr (80% stream) to 1.9M oz/yr (100% stream) 5.5-6.5% GEO* growth based on average 1.9M oz/yr Ag production 18,000 GEOs (80% stream); 22,000 GEOs (100% stream) Ag contribution to total revenue expected to increase fr
Slide 7: Recent Developments – Khoemacau development progress
Recent Developments2 Khoemacau development progress as reported by Cupric Excavation of central and north boxcuts underway 35km access road clearing substantially complete Construction camp upgrade complete Detailed design / engineering 71% complete Key construction contracts placed, long lead equip
Slide 8: Recent Developments – Mount Milligan, Rainy River
Recent Developments Mount Milligan, Rainy River as reported by the operators3 Permits received to access additional water through November 2021 Work on long term water sources progressing Mill throughput expected to reach full capacity in May 2019 guidance confirmed: 155-175k oz gold, 65-75M lb copp
Slide 9: Recent Developments – Peñasquito, Cortez
Recent Developments Peñasquito, Cortez as reported by the operators3 Pyrite leach plant performing well with increasing recoveries Higher grades expected in H2 calendar 2019 Newmont due diligence identified operational opportunities Full Potential continuous improvement review to start June 2019 Peñ
Slide 10: Upcoming Catalysts
Upcoming Catalysts Sources of embedded growth, as reported by the operators3 Sizer project in commissioning to increase throughput by 10% to 55k tpd 9,900 oz delivered in FQ3 2019 Andacollo Expansion project moving to feasibility stage Considering change to vat leach vs. leach pad Pueblo Viejo Reser
Slide 11: Fiscal Q3 Financial Results
Fiscal Q3 Financial Results $109.8M revenue $28.8M earnings Compared to adjusted fiscal Q3 2018: —GEO volume of 84,200 vs 87,300 —Prices: Au ↓2%, Ag ↓7%, Cu ↓11% G&A of $6.8M DD&A of 39.4M, or $468/GEO OCF of $77.4M 34,000 GEO inventory at March 31, 2019 11
Slide 12: Fiscal Q3 Liquidity
Fiscal Q3 Liquidity $1.2B of liquidity available Working capital increased to $216M at March 31, 2019 $370M convertible bonds mature June 15, 2019 —Expect to repay with cash from: • • Cash on hand Revolving credit facility 12 March 31, 2019 Amount (US$ M) Undrawn revolver 1,000 Working capital 216 T
Slide 13: Solid, Steady, Successful
Solid, Steady, Successful Solid operating and financial performance Liquidity continues to strengthen Khoemacau stream adds high-quality growth project Board and management team positioned for success William Hayes Independent Director and Chairman of the Board; Former EVP, Placer Dome Inc. Tony Jen
Slide 14: Contact Information
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
Slide 15: Endnotes
Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. Certain information in slides 6 and 7 was provided to the Company by Cupric Canyon Capital LP, the owner and developer of the Khoemacau Project and a privately-owned compan