Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BofA Merrill Lynch Streaming Lunch (September 2018)
13 slides from Royal Gold's conference presentation, Sep 6, 2018
Slide 1: BofA Merrill Lynch Streaming Lunch
BofA Merrill Lynch Streaming Lunch Bill Heissenbuttel, CFO and Vice President Strategy September 6, 2018 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement NASDAQ: RGLD Forward-Looking Statements: 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 th
Slide 3: 20+ Year Track Record
20+ Year Track Record NASDAQ: RGLD Performance Discipline Cash flow generation Strategic capital allocation Quickly delevering Equity stewardship Embedded growth Dividend returns Diverse portfolio | 3
Slide 4: Cash Flow Generation
Performance Cash Flow Generation NASDAQ: RGLD 22% compound annual growth rate despite flat gold price $350 $1,400 $1,350 Fiscal Year Cash from Operations $USD millions $300 Average Annual Gold Price per ounce (Kitco) $1,300 $250 $1,250 $200 $1,200 $150 $1,150 $100 $1,100 $50 $1,050 $0 $1,000 12 mont
Slide 5: Quickly Delevering
Performance Quickly Delevering NASDAQ: RGLD Net Debt/EBITDA1 0.8x at 6-30-18 FY18 dividends paid of $64.1 million, or 19% of operating cash flow At current metals prices and assuming no changes to portfolio,we expect to: Repay principal of our $370 million convertible bonds maturing June 2019 Be pos
Slide 6: Embedded Growth
Performance Embedded Growth NASDAQ: RGLD Sources of growth already bought and paid for, as reported by the operators Construction completed, commissioning in Q3C182 First gold expected Q4C182 Peñasquito Leach Est. annual production of 100-140koz gold and 4-6Moz silver2 Peñasquito Leach - Goldcorp In
Slide 7: Embedded Growth: Recent updates from operating properties
Performance Embedded Growth NASDAQ: RGLD Recent updates from operating properties 87% average gold recovery in second calendar quarter2 24k tonnes per day (“tpd”) planned by Q4C182 2018 updated guidance: 210-250koz gold2 Rainy River - New Gold 20% increase in Wassa gold production in Q2C18 vs. Q2C21
Slide 8: Diverse Portfolio Long-Term Optionality
Performance Diverse Portfolio NASDAQ: RGLD Long-Term Optionality 1.4% NSR on gold and copper on ~30% of La Fortuna PFS recently completed, feasibility expected in H2 20192 La Fortuna expected to produce in years 4-182 NuevaUnión – Teck & Goldcorp 2.7% NSR on all metals Reported 2017 production of 52
Slide 9: Strategic Capital Allocation
Discipline Strategic Capital Allocation NASDAQ: RGLD Strong net revenue on capital deployed, with significant mine life remaining6 Net revenue7,8 on capital 1991-2014 Net revenue7,8 on capital 2015-2018 $3,000 $3,000 20 20 $2,500 $2,500 17 years 12 years 15 15 $2,000 $2,000 Remaining Years of Mine L
Slide 10: Equity Stewardship: Shares Outstanding and Dividends
Millions of Shares Outstanding at December 31, 201712 Discipline 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Royal Gold, Inc. Endeavour Mining Corporation Osisko Gold Royalties Ltd. *Pan American Silver Corp. Sandstorm Gold Ltd. Klondex Mines Ltd. Detour Gold Corporation *Coeur Mining, Inc. *Agn
Slide 11: Endnotes
Endnotes NASDAQ: RGLD 1. EBITDA is a non-GAAP measure. See page 12 for reconciliation. 2. Information has been provided to the Company by the operators of those properties or is publicly available information filed by those operators. Reserves information shown is as of December 31, 2017. References
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation NASDAQ: RGLD Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating
Slide 13: 1660 Wynkoop Street, #1000 Denver, CO 80202 info@royalgold.com
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
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