Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — 2014 Denver Gold Forum
19 slides from Royal Gold's conference presentation, Sep 16, 2014
Slide 1: 2014 Denver Gold Forum
2014 Denver Gold Forum Tony Jensen President and CEO SOLID PORTFOLIO. SOLID FUTURE.
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
Slide 3: What Makes Royal Gold Unique
What Makes Royal Gold Unique Growth Near-term growth driven by Mt. Milligan Long mine lives amongst largest investments Quality Focused investment criteria World class portfolio Opportunity $1B uncommitted capital to invest >$100M deals are material Value Strong per share metrics Low relative valuat
Slide 4: Growth: Near-term growth driven by Mt. Milligan
Growth Near-term growth driven by Mt. Milligan What Mt. Milligan will deliver on What Mt. Milligan will contribute to a quarterly basis 1 our total GEO’s 2 280,000 Qtrly Run Rate at Design Capacity 240,000 June 2014 Quarter - Actual 200,000 Mt. Milligan Mar 2014 Quarter - Actual 160,000 Other Dec 20
Slide 5: Growth: Mt. Milligan ramp up well underway
Growth Mt. Milligan ramp up well underway Throughput increasing Recovery approaching design Source: Thompson Creek Metals, August 19, 2014 Source: Thompson Creek Metals, August 19, 2014 Source: Thompson Creek Metals, August 19, 2014 Record daily mill throughput of 63,970 July gold recovery of 69% ap
Slide 6: Growth: Rubicon Minerals' Phoenix Gold Project on schedule
Growth Rubicon Minerals’ Phoenix Gold Project on schedule On schedule for startup mid-2015 1 – Mill construction on schedule – Shaft sinking complete – 24% of underground development completed Estimated mine life: 13 years 2 Estimated average annual production: 165,300 oz 3 Investment Attributes: Ph
Slide 7: Long mine lives amongst largest investments
Growth Long mine lives amongst largest investments 1000 25 Estimated Years of Remaining Mine Life 900 800 20 700 600 15 $ Millions 500 400 10 300 200 5 100 0 0 Initial investment Cumulative net revenue through June 30, 2014 Estimated remaining mine life September 2014 7
Slide 8: Quality: Focused investment criteria yields a world class portfolio
Quality Focused investment criteria yields a world class portfolio 56% of our FY2014 revenues from Counterparty investment-grade rated companies 1 Place Over 92% of our reserves from S&P “A” or higher rated countries 1 89% of FY2014 Production Weighted average cash cost ~$576/GEO, Andacollo, Peñasqu
Slide 9: Quality: World class, long lived portfolio
Quality World class, long lived portfolio Mt. Milligan Royalty: 52.25% of payable gold 1 Contribution to FY2014 Q4 revenue Reserves: 2 6.0M oz (Au) 27% or $18.6M Estimated Mine Life: 20+ Years 5 Andacollo Royalty: 3 75% of Au production (NSR) Contribution to FY2014 Q4 revenue Reserves: 2 1.8M oz (Au
Slide 10: Opportunity: $1 billion uncommitted
Opportunity $1 billion uncommitted at a time when royalty/stream financing is needed Capital to invest… …as debt/equity markets remain challenging 1 $450M Liquidity at 6/30/2014 $714M Working Capital Undrawn Credit $370M Debt and Commitments convertible debt due 2019 * LTM Operating Cash Flow $147M
Slide 11: Average of companies involved in royalty/streaming over last decade
Opportunity Average of 12 companies per year involved in royalty/streaming over last decade 16 Callinan Royalties Osisko Royalties Coeur Gold Capital 14 XDM Royalty Global Royalty 12 Average 2004-2014 Premier Royalty Gold Royalties Lumina Royalty 10 Sandstorm Metals & Energy Sandstorm Gold Royalty 8
Slide 12: Most of the industry's market cap is highly concentrated
Opportunity Most of the industry’s market cap is highly concentrated 1 Callinan Royalties 30,000 XDM Royalty Premier Royalty 25,000 Tanzanian Royalty Exploration Corp Global Royalty Corp Gold Royalties Corporation 20,000 Lumina Royalty US$ Millions Sandstorm Metals and Energy 15,000 Sandstorm Gold G
Slide 13: What Makes Royal Gold Unique
What Makes Royal Gold Unique Growth Near-term growth driven by Mt. Milligan Long mine lives amongst largest investments Quality Focused investment criteria World class portfolio $1B uncommitted capital to invest Opportunity >$100M deals are material Value Strong per share metrics Low relative valuat
Slide 14: Endnotes
Endnotes SOLID PORTFOLIO. SOLID FUTURE.
Slide 15: Endnotes
Endnotes Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 4 GROWTH 1. Full run rate Mt. Milligan gold deliveries con
Slide 16: Endnotes (cont.)
Endnotes (cont.) Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 9 QUALITY 1. This is a metal stream whereby the pu
Slide 17: Appendix A: Property Portfolio
Appendix AppendixA: A: Property Portfolio SOLID PORTFOLIO. SOLID FUTURE.
Slide 18: Property Portfolio
Property Portfolio September 2014 18
Slide 19: Contact
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com SOLID PORTFOLIO. SOLID FUTURE.