Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BMO Global Metals & Mining Conference 2020
16 slides from Royal Gold's conference presentation, Feb 25, 2020
Slide 1: BMO Global Metals & Mining Conference
BMO Global Metals & Mining Conference Bill Heissenbuttel, President & CEO February 2020 NASDAQ: RGLD 2
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: FQ2 2020 Overview
FQ2 2020 Overview Financial/operating performance 83,500 $41.3M $123.6M, $17.4M $78.3 Volume of GEOs* net income Revenue of in dividends cash flow ($0.63/share) 74% from gold from operations * Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price Significant str
Slide 4: Royal Gold Attributes
Royal Gold Attributes TOTAL CAPITAL FINANCIAL SHAREHOLDER BUSINESS MODEL PORTFOLIO DEPLOYMENT POSITION RETURN (TSR) • Optionality • Diverse, • Discipline • Strong liquidity • Leading • Highly gold focused • Accretive, • Solid capital commitment efficient • High quality non-dilutive structure to divi
Slide 5: Business Model – Lower Risk with Optionality
Business Model – Lower Risk with Optionality Royal Gold seeks upside from metal prices, production expansion and reserve conversion with reduced downside from management risk Producer Royal Gold Illustrative Expected Return Return downside: Return upside: • Higher operating costs • Increased metal p
Slide 6: Business Model – Efficient
Business Model – Efficient Royal Gold revenue per employee ranks second compared to the S&P 500 REVENUE PER EMPLOYEE* (US$M) 5
Slide 7: Business Model – Efficient
Business Model – Efficient Royal Gold has a larger operating portfolio and a fraction of the employee count compared to the major gold and base metals producers Employees Royal Gold 23 Newmont 39,600 Rio Tinto 47,500 BHP Billiton 62,500 Barrick 18,400 0 10 20 30 40 50 Number of Producing Properties
Slide 8: Portfolio – Diverse, Gold Focused
Portfolio – Diverse, Gold Focused REVENUE* BY COMMODITY 5% 187 PROPERTIES 43 PRODUCING Other 15 DEVELOPMENT 9% 47 EVALUATION Copper 82 EXPLORATION ** As of December 31, 2019 9% Silver 78% 3 Gold 7 2 REVENUE* BY COUNTRY 4 5 Australia Other Mexico 6 Africa 37% 8% Canada USA 1 16% Chile 20% Dom. Rep *
Slide 9: Portfolio – High Quality
Portfolio – High Quality Approximately 60% of net revenue from operations in 1st and 2nd quartile of cash cost curve • 90% from below 4th quartile 100% 4th Q 10% $34 75% Rainy River Andacollo Peñasquito Cash Cost Percentile* 3rd Q 33% $113 50% Wassa Mount Milligan 2nd Q 33% $113 25% Cortez Pueblo Vi
Slide 10: Portfolio – Generating Organic Growth
Portfolio – Generating Organic Growth Average remaining mine life of 14 years (weighted by revenue contribution) * Remaining mine life estimate from publically-available technical reports or SNL estimates, as of June 2019 “Principal producing properties” shown in dark gold ** Rainy River LOM release
Slide 11: Capital Deployment – Discipline
Capital Deployment – Discipline Transacting at the right times, not at all times • Last wave of large financial restructuring has passed • Equity scarcity could bring project development and M&A opportunities $1,900 Financial Restructuring Lack of Equity $1,800 Follow-on Offering $1,700 $1,600 Mt Mi
Slide 12: Capital Deployment – Accretive, Non Dilutive
Capital Deployment – Accretive, Non Dilutive Growth funded through cash flow and strategic use of debt, independent of the gold price • Last follow-on equity offering completed October 15, 2012 Total delivered, 12/31/12 - 6/30/19: Dividends 54% $387M OCF 47% $1.5B Revenue 46% $2.3B Share O/S 2% -21%
Slide 13: Strong Financial Position – Capital Structure
Strong Financial Position – Capital Structure Royal Gold is well capitalized • ~$1B of liquidity at December 31, 2019, including $865M available on Credit Facility • FQ2 2020 OCF of $78.3M Market Statistics(a) LIQUIDITY(f) Share Price US$/share $102.92 ($M): 52-Week Range US$/share $80.65 - $138.78
Slide 14: TSR – Leading Commitment to Dividends
TSR – Leading Commitment to Dividends Dividend set at a sustainable level • 18% CAGR in dividends per share 2001-2019 Source: Company reports, YCharts 13
Slide 15: TSR – Attractive Historical Return
TSR – Attractive Historical Return EFFICIENT BUSINESS DISCIPLINED CAPITAL STRONG FINANCIAL COMPETITIVE TOTAL MODEL DIVERSE PORTFOLIO DEPLOYMENT POSITION SHAREHOLDER RETURN 400% 350% 300% 250% 200% Total Return (%) 150% 100% 50% 0% -50% -100% May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 Ma
Slide 16: Contact Information
1144 15th Street, #2500 Denver, Colorado 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD 2
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