Royal Gold, Inc. · NASDAQ:RGLD

Royal Gold — Gold Stock Analyst Investor Conference 2017

16 slides from Royal Gold's conference presentation, Feb 26, 2017

  1. Slide 1: GSA Investor Day

    GSA Investor Day Bill Heissenbuttel Vice President Corporate Development February 26, 2017

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 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

  3. Slide 3: A High Quality Precious Metals Investment

    A High Quality Precious Metals Investment 3 With just 21 employees and a scalable business model, our margins are significantly higher than the Margin 79% senior gold producers and the S&P 5002. Gross 1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue

  4. Slide 4: Our Margins Outperform the Industry & S&P 500

    Our Margins Outperform the Industry & S&P 500 4 Our gross margin1 exceeds the gold senior producer average2 and outperforms the S&P 500 79% 40% 32% Royal Senior Gold S&P 500 Gold Producer Average Average 2016 Gross Margin NASDAQ: RGLD 1 Gross Margin is calculated as revenue less cost of goods sold a

  5. Slide 5: Volume Growth Already Bought & Paid For

    Volume Growth Already Bought & Paid For 5 12% CAGR1 over the last 5 fiscal years while annual gold supply was flat Future near term growth driven by:  Rainy River  Cortez Crossroads 300,000 Royal Gold Volume Profile  Peñasquito pyrite leach through 12-31-16 Net Gold Equivalent Ounces (GEOs)2 250,

  6. Slide 6: Volume Growth Already Bought & Paid For

    Volume Growth Already Bought & Paid For 6 We maintained a strong balance sheet and deployed capital opportunistically  Committed $1.4 billion in mid-2015  Paid with cash on hand, cash flow, and incremental $345 million with credit facility  Efficient leverage ratio currently at 2X Net Debt/EBITDA

  7. Slide 7: Volume Growth Already Bought & Paid For

    Volume Growth Already Bought & Paid For 7 Amending the gold-copper stream at Mount Milligan presented a unique opportunity in June 2016  35% of gold; payment of $435/oz of gold (previously 52.25% of gold)  18.75% of copper; payment of 15% of spot (previously no copper) First copper deliveries expe

  8. Slide 8: Optionality at 38 Currently Producing Interests

    Optionality at 38 Currently Producing Interests 8 Operators’ innovation, capital and exploration at no incremental capital cost to Royal Gold1  Tailings dam prefeasibility in CY2017 – potential to move 5.8-7.3Moz Au and 32.1-35.0Moz Ag to reserves Pueblo Viejo  Significant exploration program plan

  9. Slide 9: Track Record of Industry-Leading Returns: Annual Dividends Paid Per Share

    Track Record of Industry-Leading Returns 9 20% CAGR in dividends per share since 2001, and currently equates to 1.4% annual yield (February 21, 2017) Average Annual Gold Price Per Ounce (Kitco) Annual Dividends Paid Per Share Calendar Years NASDAQ: RGLD February 26, 2017

  10. Slide 10: Track Record of Industry-Leading Returns: Gold Equivalent Ounces

    Track Record of Industry-Leading Returns 10 Royal Gold has consistently generated higher gold equivalent ounces (GEOs) per share than its peers 4.00 3.50 3.00 Gold Equivalent Ounces(GEOs1) 2.50 Per 1000 Shares 2.00 1.50 1.00 0.50 0.00 CY2011 CY2012 CY2013 CY2014 CY2015 TTM SLW FNV RGLD NASDAQ: RGLD

  11. Slide 11: Track Record of Industry-Leading Returns

    Track Record of Industry-Leading Returns 11 Since last year’s GSA conference we’ve generated record operating cash flow and our total shareholder return has begun to rebound relative to GDX Record Operating Cash Flow RGLD - Dividend Adjusted Share Pricing 70 +34% from prior year quarter GDX - Divide

  12. Slide 12: A High Quality Precious Metals Investment

    A High Quality Precious Metals Investment 12 Trading at a discount to historical average and peer trading level RGLD FNV SLW 50x 45x 40x 35x Price to Cash Flow 30x 25x Historical average multiple 20x RGLD 15x 10x 5x 0x NASDAQ: RGLD Source: YCharts February 26, 2017

  13. Slide 13: A High Quality Precious Metals Investment

    A High Quality Precious Metals Investment 13 With just 21 employees and a scalable business model, our margins are significantly higher than the Margin 79% senior gold producers and the S&P 5002. Gross1 Our portfolio has embedded growth with new business already bought and paid for at Andacollo, Pue

  14. Slide 14: Appendix

    I> ROYALGOLD,INC Appendix

  15. Slide 15: Portfolio of Assets

    Portfolio of Assets 15 Diverse, Long Lived Properties Streams (at Dec 31, 2016) 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 (lif

  16. Slide 16: Royal Gold contact details

    1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com

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