Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Denver Gold Forum 2017
20 slides from Royal Gold's conference presentation, Sep 25, 2017
Slide 1: Tony Jensen, President and CEO
Tony Jensen President and CEO September 25, 2017 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement NASDAQ: RGLD 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 result
Slide 3: 20+ Year Track Record
20+ Year Track Record NASDAQ: RGLD Performance Efficiency Discipline Cash flow generation Diverse portfolio Strategic capital allocation Quickly delevering Strong margins Equity stewardship Embedded growth Lean structure Dividend returns | 3
Slide 4: Cash Flow Generation
Performance Cash Flow Generation NASDAQ: RGLD Operating cash flow up 56% over prior year Pueblo Viejo was a major revenue driver Cash from operations(OCF) vs gold price, FY13-17 Incremental $m revenue by property FY16 to FY17 FY17 $266m $2,000 Wassa Cortez Other Revenue Prestea $0.4 $0.4 $441m Peñas
Slide 5: Quickly Delevering
Performance Quickly Delevering NASDAQ: RGLD <1.7x net debt to EBITDA,1 liquidity of over $850 million, both at 6-30-17 $45m Repaid March 31, 2017 $50m Repaid June 30, 2017 $50m Repaid Sept 5, 2017 1 The term “EBITDA” is a non-GAAP financial measure. See slide 18 for additional information. | 5
Slide 6: Embedded Growth
Performance Embedded Growth NASDAQ: RGLD Sequential growth catalyst in each of calendar 2017, 2018, and 2019 New Gold: First production expected September 20171 Stream on 6.5% of gold and 60% of silver1 Rainy Rainy River River -- 2017 2017 3.9Moz gold in reserves; 10.0Moz silver in reserves1,2 Rainy
Slide 7: Diverse Portfolio
Efficiency Diverse Portfolio NASDAQ: RGLD 195 property interests, of which 39 are producing1 and 22 are in development 93% revenue from precious metals2 88% of revenue from Canada, Chile, US, Mexico and Dominican Republic 2 1 Producing properties not highlighted in the map include Allan, Bald Mounta
Slide 8: Strong Margins: Gross Margin
Gross Margin Efficiency 20% 40% 60% 80% 100% 0% NYSE:FLR NYSE:ADM NasdaqGS:ESRX NYSE:LLL NYSE:SLB NasdaqGS:EXPD NasdaqGS:PCAR NYSE:FTI NYSE:TXT NYSE:CNC NYSE:LYB NYSE:UPS NYSE:GD NYSE:DLPH NYSE:ADS NYSE:HRL NYSE:ALL NasdaqGS:PDCO NYSE:CSRA NYSE:PH NYSE:CMI NYSE:DTE NYSE:DVA NasdaqGS:HSIC NYSE:HPE NY
Slide 9: Lean Structure: Revenue per Employee
Efficiency Lean Structure NASDAQ: RGLD Our revenue per employee is higher than 497 of the S&P 500 Revenue per employee NYSE:VTR NasdaqGS:GILD NasdaqGS:CBOE NYSE:DHI NYSE:NBL NYSE:NRG $3m $19m $25m NYSE:PXD NYSE:CF NasdaqGS:VRSN $11m (REIT) (REIT) NYSE:HPQ NasdaqGS:SNI NYSE:TRV NYSE:AIG $2m NYSE:UNH
Slide 10: Strategic Capital Allocation
Discipline Strategic Capital Allocation NASDAQ: RGLD We maintained a strong balance sheet and deployed capital opportunistically Gold price at the time of recent transaction agreements $1,900 $700 Pueblo Viejo $600 $1,700 $USD Millions of Consideration Andacollo $500 $1,500 Gold Price in US Dollars
Slide 11: Net Revenue on Capital Deployed and Remaining Mine Life
Discipline Strategic Capital Allocation NASDAQ: RGLD Strong net revenue on capital deployed, with significant mine life remaining Net revenue on capital 1991-2014 Net revenue3 on capital 2015-2017 $3,000 $3,000 Remaining Years of Mine Life 20 20 Remaining Years of Mine Life $2,500 $2,500 17 years 12
Slide 12: Equity Stewardship: Millions of Shares Outstanding
Millions of Shares Outstanding * at June 30, 2017 Discipline 200 400 600 800 0 1,000 1,200 1,400 1,600 1,800 Royal Gold, Inc. *Torex Gold Resources Inc Endeavour Mining Corporation Randgold Resources Limited Osisko Gold Royalties Ltd. *SSR Mining Inc. Fortuna Silver Mines Inc. *Pan American Silver C
Slide 13: Dividend Returns
Discipline Dividend Returns NASDAQ: RGLD 20% CAGR in dividends per share since 2001, and currently equates to $0.96 per share, a 1.1% annual yield, and an average 23% OCF yield1 Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) $1.00 $1,800 $0.90 $1,600 $0.80 $1,400 Ann
Slide 14: Highly Skilled Board Leadership
Discipline Highly Skilled Board Leadership NASDAQ: RGLD William Hayes Independent M. Craig Haase Independent Tony Jensen Kevin McArthur Director and Chairman of the Director; Former EVP and Director; President and CEO, Independent Director; Board; Former EVP, Placer Chief Legal Officer, Franco- Roya
Slide 15: 20+ Years of Solid Performance
Performance 20+ Years of Solid Performance NASDAQ: RGLD Our focus is total shareholder return (TSR) 20-year total shareholder return RGLD 1,400 % +1261% Percentage Change in Total Return Price 1,200 % 1,000 % 800 % 600 % Gold Price 400 % +313% 200 % S&P 500 +287% 0% -200 % Gold Price in US Dollars %
Slide 16: Contact Information
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
Slide 17: Portfolio of Assets
Portfolio of Assets NASDAQ: RGLD Streams (at June 30, 2017) Reserve CY2017 RGLD RGLD RGLD pays RGLD pays Remaining Operator Operator Mine Metal RGLD interest until until until until until interest interest (per unit) (per ounce) Mine Life Guidance (Years) (oz/lbs)2 Mount LOM (life of Low end of Cent
Slide 18: Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation NASDAQ: RGLD Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures
Slide 19: Opportunistic Capital Allocation
Opportunistic Capital Allocation NASDAQ: RGLD Good mines get better: many of our interests are at properties that have a robust reserve profile years, or even decades after startup Initial investment Cumulative net revenue through June 30, 2017 Estimated remaining mine life $1,000 25 $800 20 $US Mil
Slide 20: Contact Information
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD