Slide 1: Fiscal 2015 and Fourth Quarter Results
Fiscal 2015 and Fourth Quarter Results August 6, 2015 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 m
Slide 3: Today's Speakers
Today’s Speakers Tony Jensen Bill Heissenbuttel Stefan Wenger President and CEO VP Corporate CFO and Treasurer Development & Operations August 6, 2015 3
Slide 4: Record Operating Cash Flow in FY2015
Record Operating Cash Flow in FY2015 Cash from Operations Average Gold Price $250 $1,800 $1,600 $200 $1,400 Cash from operations $1,200 Average Gold Price/oz $150 (in millions) $1,000 $800 $100 $600 $50 $400 $200 $0 $0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 August 6, 2015 4
Slide 5: Record Volume in FY2015
Record Volume in FY2015 8% Compounded Annual Growth Rate 250 FY2010 through FY2015 Net Gold Equivalent Ounces (GEOs)1 200 (in thousands) 150 Mt Milligan 100 Other 50 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 August 6, 2015 5
Slide 6: Investment Summary
Investment Summary Four new streams added to the portfolio in recent months Opportunistically reinvesting in our business Favorable point in the commodity cycle Focusing on high quality producing or near-term producing assets Diversifying revenue Pueblo Viejo Rainy River Andacollo Golden Star
Slide 7: Four New Streams Added to the Portfolio
Four New Streams Added to the Portfolio Estimated Effective Annual Net Date or Total Operator Property Strategic Rationale GEO’s (1st 5 Estimated Investment years) Startup Producing; one of only 3 mines in July 1, 2015 - the world to produce >1m oz per 50,500 Au Barrick Pueblo Viejo year; first quar
Slide 8: Opportunistically Deploying Capital
Opportunistically Deploying Capital Gold Price When Royal Gold Made Investments, 2010-present $1,900 $1,700 Spot Gold Price in US Dollars El Morro $1,500 Ilovitza Mt. Milligan III Andacollo Stream $1,300 Mt. Milligan II Pueblo Viejo $1,100 Mt. Milligan I Phoenix Wassa/Prestea $900 Rainy River $700 J
Slide 9: Enhanced Revenue Diversity with New Investments
Enhanced Revenue Diversity with New Investments FY2015 Volume Plus Relative Contribution from New Streams 100.00% 100% Mount Milligan 90.00% 300 Rainy River Percentage of Total Net Revenue Golden Star Net Gold Equivalent Ounces (GEOs) 80.00% Pueblo Viejo 70.00% (in thousands) 60.00% 200 Andacollo St
Slide 10: New Business Transforming the RGLD Portfolio: Pueblo Viejo
New Business Transforming the RGLD Portfolio Pueblo Viejo – Barrick Gold (60% interest), Dominican Republic Project (100% basis): 2014 production of 1.1 million ounces (“Moz”) of gold and 3.8 Moz silver at all-in sustaining costs of $588 per ounce Proven and probable reserves of 15.5 Moz gold an
Slide 11: New Business Transforming the RGLD Portfolio: Pueblo Viejo Stream
New Business Transforming the RGLD Portfolio Pueblo Viejo – Barrick Gold (60% interest), Dominican Republic Stream:1 7.5% of Barrick’s gold interest until 990,000 ounces, and 3.75% thereafter 75% of Barrick’s silver interest until 50.00 Moz, and 37.5% thereafter, with silver deliveries based on
Slide 12: New Business Transforming the RGLD Portfolio: Rainy River
New Business Transforming the RGLD Portfolio Rainy River – New Gold, Canada Project: Over its first nine years of full production, the 21,000 tonne per day, combined open pit- underground operation is expected to produce an average of 325,000 ounces of gold per year at all-in sustaining costs of a
Slide 13: New Business Transforming the RGLD Portfolio: Andacollo
New Business Transforming the RGLD Portfolio Andacollo – Teck, Chile Project: Long operating history Well-respected partner in Teck, Canada’s largest diversified resource company Proven and probable reserves of 1.6 Moz gold and a 22 year mine life Stream:1 100% gold stream to 900koz; 50% the
Slide 14: New Business Transforming the RGLD Portfolio: Wassa and Prestea
New Business Transforming the RGLD Portfolio Wassa and Prestea – Golden Star Resources, Ghana Projects: Higher quality Wassa and Prestea underground projects under construction Proven and probable reserves of 1.9 Moz gold across all deposits Measured and indicated gold resources of 3.5 Moz at
Slide 15: Gold Equivalent Ounce Waterfall
Gold Equivalent Ounce Waterfall Net GEOs Q315 vs Q415 Net GEOs Q4FY14 vs Q4FY15 55 55 50 50 45 45 Gold Equivalent Ounces (GEOs) Gold Equivalent Ounces (GEOs) 40 40 (thousands) (thousands) 35 35 30 30 25 25 20 20 Includes Mount Milligan GEOs net of our stream payment August 6, 2015 15
Slide 16: Full Year Estimates vs Production CYTD
Full Year Estimates vs Production CYTD Calendar 2015 Operator’s Production First 6 months of 2015 Operator's 1 Estimate Production Royalty/Stream Actual2 Gold Silver Base Metals Gold Silver Base Metals (oz.) (oz.) (lbs.) (oz.) (oz.) (lbs.) 3 Andacollo 52,200 - - 22,200 - - Cortez GSR1 104,100 - - 82
Slide 17: Recent Operating Highlights
Recent Operating Highlights Mount Milligan June quarter production of 59.9koz1 May and June mill throughput of 49.9k TPD (~83% of capacity) June quarter gold recoveries of 72.7% Peñasquito Record gold production for the June quarter of 297koz2 The Metallurgical Enhancement Project feasibility study
Slide 18: Q4 2015 and FY2015 Financial Highlights
Q4 2015 and FY2015 Financial Highlights Q4 2015 Financial Highlights Revenue of $73.6 million, an increase of 5% $650M Revolver Operating cash flow of $43.9 million, an increase of 37% Record volume of 61,700 GEOs, an increase of$650M 13% Revolver Reported net income of $0.23 per share – Imp
Slide 19: Liquidity
Liquidity Date Item ($USD millions) June 30, 2015 Working Capital $766m Undrawn Revolver 650m June 30, 2015 Total Available Liquidity $1,416m FY2016 Andacollo Stream Purchase -525m Commitments Andacollo Royalty Sale 300m Rainy River 1st Advanced Payment -100m Golden Star Stream and Loan -120m Puebo
Slide 20: What Makes Royal Gold Unique
What Makes Royal Gold Unique Growth Existing Portfolio Delivered Record Volume in FY2015; and the four new streams will extend that growth for the next several years Quality Mount Milligan continues to produce at below world average production costs, new additions to the continues Mount Milligan por
Slide 21: Endnotes
Endnotes SOLID PORTFOLIO. SOLID FUTURE.
Slide 22: 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 5 RECORD VOLUME IN FY2015 1. Royal Gold defines Gold Equiv
Slide 23: 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 14 NEW BUSINESS TRANSFORMING THE RGLD PORTFOLIO –
Slide 24: SOLID PORTFOLIO. SOLID FUTURE.
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com SOLID PORTFOLIO. SOLID FUTURE.