Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q2 FY2018 Earnings Presentation
15 slides from Royal Gold's earnings presentation, Feb 8, 2018
Slide 1: Second Fiscal Quarter 2018 Results
Second Fiscal Quarter 2018 Results Royal Gold, Inc. February 8, 2018 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: Today's Speakers
Today’s Speakers NASDAQ: RGLD Tony Jensen Bill Heissenbuttel Stefan Wenger President and CEO Vice President CFO and Treasurer Corporate Development | 3
Slide 4: Strong year over year operating results
Strong year over year operating results NASDAQ: RGLD Revenue of $114 million, up 7% Stronger production at Andacollo, Wassa & Prestea, first sales from Rainy River Reported loss of ($0.23) per share Reflects US Tax Legislation and a non-cash functional currency election Adjusted Earnings1 of $0.41 p
Slide 5: Recent Developments
Recent Developments NASDAQ: RGLD Notable updates in calendar 2018 Achieved nameplate capacity in December (21ktpd)1 Stream on 6.5% of gold and 60% of silver1,2 2018: 310koz-350koz gold production expected1,2,3 Rainy River Achieved 2017 gold production guidance Stream on 10.5% of gold production effe
Slide 6: Embedded Growth
Embedded Growth NASDAQ: RGLD Rainy River expected to be Top-10 revenue generator for RGLD CY18 deliveries of 21.5koz gold & 185koz silver expected2 3.9Moz gold in reserves; 10.0Moz silver in reserves1,3 Rainy River Barrick: stripping underway, production expected late CY181 4.5% NVR & 5% GSR royalty
Slide 7: Diverse Portfolio
Diverse Portfolio NASDAQ: RGLD Our portfolio is almost entirely precious metals; includes 39 producing and 23 development properties1,2 Development and/or permitting activity at LaRonde Zone 53 (2% NSR), Back River (1.95-2.35% NSR), Relief Canyon (2% NSR) 1 Producing properties not highlighted in th
Slide 8: Q2FY18 Results
Q2FY18 Results NASDAQ: RGLD $114 million revenue US Tax Reform signed into law on December 22, 2017 Reduces US corporate income tax rate from 35% to 21% Allows efficient repatriation of future foreign earnings Our reported Q2 loss per share of ($0.23) included these impacts: —One-time repatriation t
Slide 9: Liquidity and Debt Outlook
Liquidity and Debt Outlook NASDAQ: RGLD Net Debt/EBITDA 1.3x at 12-31-17 Strong liquidity of ~$975 million at 12-31-17 Focus on using free cash flow to reduce debt At current metals prices1 we expect to: Repay the $150 million outstanding on our revolver in June Repay principal of our $370 million b
Slide 10: Q2FY18 Results and H2FY18 Outlook
Q2FY18 Results and H2FY18 Outlook NASDAQ: RGLD FQ2 Revenue of $114 million H2 FY18 effective tax rate forecast range is 17-23% (down from 20% - 25%) Subject to any final revisions to our preliminary calculations FQ2 DD&A of $469 per GEO FY18 DD&A forecast range is $450 - $500 per GEO Dividend repres
Slide 11: Solid, Steady Performance
Solid, Steady Performance NASDAQ: RGLD $300 $1,600 $288m Another step-up in cash flow in FQ2 Last 5 years’ OCF average = $189m per year $1,400 Tax code improvements $250 Ramp-up at Mount Milligan, $1,200 Rainy River in CY18 $200 $1,000 Cash flow growth from Cortez US$ Millions Crossroads and Peñasqu
Slide 12: 1660 Wynkoop Street, Denver, CO
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
Slide 13: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at January 1, 2018) CY2018 Reserve Operator RGLD RGLD RGLD pays RGLD pays Remaining Operator Mine Metal RGLD interest until until until until until Production interest interest (per unit) (per ounce) Mine Life Guidance (Years)
Slide 14: 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 15: 1660 Wynkoop Street, Denver, CO
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD