Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Shareholder Meeting (November 2013)
31 slides from Royal Gold's shareholder meeting presentation, Nov 20, 2013
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting November 20, 2013
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: Fiscal 2013 Highlights
Fiscal 2013 Highlights World Class Royalty aa | Ip ROYALGOLD.INC
Slide 4: FY2013 Highlights
FY2013 Highlights Financial Results Record revenue of $289.2M EBITDA margin of ~90% Paid out 25% of operating cash flow in dividends Efficient capital allocation with carrying cost of ~$340/gold equiv. ounce Business Results Added 12.25% of payable gold from Thompson Creek’s Mt. Milligan Increased N
Slide 5: Strong Financial Performance
Strong Financial Performance 10‐year compound annual growth rate (CAGR) per share: Revenue – 19% Adjusted EBITDA – 22% Normalized EPS – 11% Five‐Year Revenue and EBITDA Growth FY2013 Record Annual Revenue of $289M, up 400% from FY2008 $300 $250 $200 Millions $150 $100 Adjusted EBITDA ~90% of Revenue
Slide 6: Strong Volume Performance
Strong Volume Performance 200,000 Gold Equivalent Ounce Volume and Average Gold Price $1,800 180,000 $1,600 160,000 $1,400 Average Gold Price per Ounce 140,000 Gold Equivalent Ounces $1,200 120,000 $1,000 100,000 $800 80,000 $600 60,000 40,000 $400 20,000 $200 ‐ $‐ FY2009 FY 2010 FY 2011 FY 2012 FY
Slide 7: 13th Straight Year of Increasing Dividends
13th Straight Year of Increasing Dividends Average payout ratio 28% of operating cash flow 10‐year dividend per share CAGR of 19% Annual Dividends Per Share $0.90 $0.84 $0.80 $0.70 $0.60 $ per Share $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 CY 2001 CY 2002 CY 2003 CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 C
Slide 8: Mt. Milligan III and Operational Progress
Mt. Milligan III and Operational Progress Aug. 15: Phased start‐up, leading to copper and gold concentrate production in September Sept. 24: Trucking of concentrate to the load out facility in Mackenzie began First ocean shipment and sale of concentrate expected by year‐end November 20, 2013 Mt. Mil
Slide 9: Kerr-Sulphurets-Mitchell (KSM) II and Exploration Highlights
Kerr‐Sulphurets‐Mitchell (KSM) II and Exploration Highlights Option to purchase 2.0% NSR on gold and silver production for C$160M Contained proven/probable reserves of 38.2Moz gold, 191Moz silver Favorable intercepts from recent drilling at Deep Kerr, including a result of 0.42 g/t gold, 0.85% coppe
Slide 10: El Morro Copper-Gold Project
El Morro Copper‐Gold Project In‐Situ Metal Value and Grade 1 Environmental 1.0 permits recently 0.9 reinstated by the 0.8 Chilean 0.7 government Au Eq Grade g/t 0.6 0.5 El Morro Goldcorp 0.4 optimizing project 0.3 economics, evaluating power 0.2 supply options, 0.1 and continuing 0.0 with community
Slide 11: Property Portfolio
Property Portfolio World Class Royalty aa | Ip ROYALGOLD.INC
Slide 12: Diverse Portfolio of Assets
Diverse Portfolio of Assets November 20, 2013 12
Slide 13: Cornerstone Property Update
Cornerstone Property Update Producing Cornerstone Properties Andacollo Royalty: 1 75% of Au production (NSR) Contribution to total FY 2013 revenue Reserves: 2 1.8M oz (Au) 28% or $82M Estimated Mine Life: 20+ Years Estimated CY13 production: 3 63k oz (Au) Peñasquito Contribution to total Royalty: 2.
Slide 14: Embedded Growth, Fully Invested
Embedded Growth, Fully Invested Development Cornerstone Properties Mt. Milligan Stream: 1 52.25% of payable gold Reserves: 2 6.0M oz (Au) Est. Mine Life: 22 Years Commercial Prod: Q1 CY14 Est. Production: 3 262k oz (Au)/yr • Commissioning underway • First concentrate production in September 2013 Pho
Slide 15: Mt. Milligan Facilities – July 2013
Mt. Milligan Facilities – July 2013 November 20, 2013 15
Slide 16: Mt. Milligan Primary Crusher – July 2013
Mt. Milligan Primary Crusher – July 2013 November 20, 2013 16
Slide 17: Mt. Milligan Pebble Crusher and Administration – July 2013
Mt. Milligan Pebble Crusher and Administration – July 2013 November 20, 2013 17
Slide 18: Mt. Milligan 40ft SAG Mill – July 2013
Mt. Milligan 40ft SAG Mill – July 2013 November 20, 2013 18
Slide 19: Mt. Milligan Two 24ft Ball Mills – July 2013
Mt. Milligan Two 24ft Ball Mills – July 2013 November 20, 2013 19
Slide 20: Mt. Milligan Flotation Circuit – July 2013
Mt. Milligan Flotation Circuit – July 2013 November 20, 2013 20
Slide 21: Mt. Milligan Flotation & Regrind – July 2013
Mt. Milligan Flotation & Regrind – July 2013 November 20, 2013 21
Slide 22: Embedded Growth, Fully Invested
Embedded Growth, Fully Invested Development Cornerstone Properties Mt. Milligan Stream: 1 52.25% of payable gold Reserves: 2 6.0M oz (Au) Est. Mine Life: 22 Years Commercial Prod: Q1 CY14 Est. Production: 3 262k oz (Au)/yr • Commissioning underway • First concentrate production in September 2013 Pho
Slide 23: Market Positioning
Market Positioning World Class Royalty aa | Ip ROYALGOLD.INC
Slide 24: Continued Financial Strength and Flexibility
Continued Financial Strength and Flexibility Strong Balance Sheet and Cash Flow in an Attractive Market $687M $350M Liquidity at September 30, 2013 Working Capital Undrawn Credit $370M convertible Debt and Commitments Debt 2019 @ 2.875% * $154.5M LTM Operating Cash Flow *Indicates $50M commitment re
Slide 25: Attractive Market Environment
Attractive Market Environment 2012 had lowest percentage Operators, explorers and of mining finance from equity developers facing less in a decade1, and H1 2013 favorable debt markets as proceeds trended even lower yields have increased Follow‐on Issues By Month 2 US High Yield B Effective Yield 3 (
Slide 26: Attractive Market Environment: Multiple Investment Entry Points
Attractive Market Environment Multiple Investment Entry Points Capital Consuming 1 Capital Generating 2 November 20, 2013 26
Slide 27: Attractive Market Environment: Multiple Sources for New Business
Attractive Market Environment Multiple Sources for New Business Opportunities 100% 14% 20% 16% 15% The largest 80% source of our 31% gold revenue 60% 48% 48% 44% in fiscal 2013 was non‐ 40% precious 54% metals mines 20% 36% 37% 36% 0% 2010A 2011A 2012A 2013A Primary Gold Mines Polymetallic Mines Bas
Slide 28: Strong Positioning
Strong Positioning Robust balance sheet with nearly $1B in liquidity Strong and uncommitted cash flow Growth profile embedded in the company Attractive market environment where there is a demand for our investment November 20, 2013 28
Slide 29: Endnotes
Endnotes PAGE 10 EL MORRO COPPER GOLD PROJECT 1. Includes construction, feasibility study and pre feasibility studies for copper deposits with greater than 100 million tonne reserves. Source is Intierra. 2. Metal value lines based on $1,314 gold, $19.94 silver, $3.09 copper, and $9.34 moly. PAGE 13
Slide 30: Endnotes (Continued)
Endnotes (Continued) PAGE 25 ATTRACTIVE MARKET ENVIRONMENT 1. Source: PWC, “Mine 2013: A Confidence Crisis” Page 28. 2. Source: Ernst and Young, “Mergers, Acquisitions and Capital Raising in Mining and Metals, H1 2013” Page 8. 3. Bank of America Merrill Lynch US High Yield B Effective Yield, Novembe
Slide 31: Royal Gold contact details
1660 Wynkoop Street Denver, CO 80202‐1132 303.573.1660 info@royalgold.com www.royalgold.com