Slide 1: BAML Canada Mining Fireside Chat
BAML Canada Mining Fireside Chat Tony Jensen President and CEO September 8, 2016
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: Gold Investment Opportunity with a Dividend and Reserve Optionality
NASDAQ:RGLD Gold Investment Opportunity with a Dividend and Reserve Optionality We provide capital in exchange for a life-of-mine percentage of the production, usually gold, via a streaming or royalty interest Exploration Longevity – in business since 1981 in Denver, CO Junior Operators 21 emp
Slide 4: Royal Gold Vision & Strategy
Royal Gold Vision & Strategy Gold Focused Reinvest Free Invest at the Pay a Be the Most Cash Flow in Troughs and Growing and Valuable, Not Long Lived be Patient at Sustainable Necessarily Properties the Top Dividend the Largest We create long term value by providing leverage and optionality to gold
Slide 5: Gold Focused
Gold Focused Royal Gold expects ~75% of estimated net revenue from gold1 on a pro-forma basis Gold Silver Other 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Pro-Forma includes expected silver from Pueblo Viejo and
Slide 6: Reinvest Cash Flow in Long Lived Properties
Reinvest Cash Flow in Long Lived Properties 80% of our portfolio asset value is in mines with reserve life >15 years,1 including: Years of remaining mine life Years in production since we've owned it 25 20 15 10 5 Disciplined capital allocation 0 2 Mt. Milligan Andacollo Voisey's Bay Pueblo Pascua C
Slide 7: Reinvest Cash Flow in Long Lived Properties
Reinvest Cash Flow in Long Lived Properties Cornerstone properties generate cash flow and lead to more diversification: $350 $300 Pueblo Viejo Wassa and $250 Prestea In $USD Millions $200 Peñasquito $150 Voisey’s Bay $100 Disciplined Mount Milligan capital allocation $50 Andacollo $0 2003 2004 2005
Slide 8: Invest at the Troughs, Be Patient at the Top
Invest at the Troughs, Be Patient at the Top Our history has been to deploy capital near a trough; gold price up ~20% since Pueblo Viejo transaction $1,900 RGLD Last Equity Raise at $1773 gold $1,800 Mt. Milligan II $1,700 Spot Gold Price in US Dollars $1,600 $1,500 $1,400 Andacollo Stream $1,300 Pu
Slide 9: Pay a Growing and Sustainable Dividend
Pay a Growing and Sustainable Dividend 15 straight years of dividend increases Dividend increased in calendar 2016 to $0.92 per share 27% payout ratio of adjusted operating cash flow in FY2016 21% compound annual growth rate (CAGR) since 2001 Equates to 1.2% annual yield (August 25, 2016) $1.00 1.4
Slide 10: Most Valuable, Not Necessarily the Largest
Most Valuable, Not Necessarily the Largest We have demonstrated positive stewardship of shareholder capital We focus on value per share metrics Net Gold Equivalent Ounces (GEO’s) per Million Shares1 Millions of Common Shares Outstanding SLW FNV RGLD 4,000 SLW FNV RGLD 500 3,500 450 3,000 400 350 2,5
Slide 11: Contact
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com