Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q2 FY2016 Earnings Presentation
18 slides from Royal Gold's earnings presentation, Feb 4, 2016
Slide 1: Second Quarter Fiscal 2016 Results
Second Quarter Fiscal 2016 Results February 4, 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: Today's Speakers
Today’s Speakers Tony Jensen Bill Heissenbuttel Stefan Wenger President and CEO VP Corporate CFO and Treasurer Development & Operations February 4, 2016 3
Slide 4: Q2FY16 Key Takeaways
Q2FY16 Key Takeaways Growth Record results in the December quarter were driven by our streaming business. Higher volume more than offset a lower gold price. Strong operating cash flow and existing liquidity positions us comfortably to fund our few near-term conditional commitments. Quality Pueblo Vi
Slide 5: Record Results in the Second Quarter
Record Results in the Second Quarter Record revenue of $98.1 million, an increase of 60% Record volume of 88,700 Gold Equivalent Ounces (“GEOs”)1, an increase of 74% Record dividends paid of $14.4 million, or 28% of operating cash flow, current yield of 3% 70,000 Gross Gold Equivalent Ounces from St
Slide 6: Returns Improving Despite Lower Gold Price
Returns Improving Despite Lower Gold Price 1 Revenue per share Operating Cash Flow per share Gold Price Per Oz $1,240 $1.80 Quarterly Revenue and Operating Cash Flow1 per share $1,220 $1.60 $1,200 $1.40 Average Gold Price Per Ounce $1,180 $1.20 $1,160 $1.00 $1,140 $0.80 $1,120 $0.60 $1,100 $0.40 $1,
Slide 7: New Stream Transactions Delivering as Expected
New Stream Transactions Delivering as Expected Estimated Annual Net GEOs (1st 5 Property Status through December 31, 2015 years)1 Purchased first shipment of 20,600 Au Pueblo Viejo 50,500 AuEq2 ounces December 15 Rainy River 17,5003 Still expected mid-2017 Andacollo 40,0004 Purchased 19,800 Au ounce
Slide 8: Operators' CY15 Actual Production in Line With Expectations
Operators’ CY15 Actual Production in Line With Expectations Property Calendar 2015 Operators’ Production Actual1,2 Achieve or Exceed Outlook Royalty/Stream Gold (oz.) Silver (oz.) Base Metals (lbs.) 3 Andacollo 47,600 - - Cortez GSR1 113,700 - - Cortez GSR2 35,000 - - Cortez GSR3 148,700 - - Cortez
Slide 9: Fiscal 2Q 2016 Financial Results
Fiscal 2Q 2016 Financial Results Revenue of $98.1 million Net income of $0.23 per share Adjusted EBITDA of $70 million, equating to 71% of revenue Average cost of sales of $370 per stream ounce, down from $435 per stream ounce in prior year quarter Expected DD&A of $450-$500 per GEO for FY2016 , dow
Slide 10: Strong Balance Sheet and Few Commitments
Strong Balance Sheet and Few Commitments Date Item ($USD millions) December 31, 2015 Undrawn Revolver $300.0m December 31, 2015 Working Capital $142.3m December 31, 2015 Total Available Liquidity $442.3m Strong and Growing For example, Fiscal 2Q Operating Cash $52.1m Operating Cash flow flow (includ
Slide 11: Opportunity – Valuation
Opportunity – Valuation 25% of the industry’s economics, trading at just 15% of the market cap1 RGLD Peer Group Total Net GEOs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Op. Income 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Market Cap. Golden Star 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Peer g
Slide 12: Opportunity – Valuation
Opportunity – Valuation Royal Gold trading at 1x NAV without Mount Milligan1 $3,500 $3,000 Street Consensus2 1x NAV of Royal Gold’s $2,500 interest in Mount Milligan $2,000 Current market cap $1,500 Street Consensus2 1x NAV of Royal Gold’s $1,000 portfolio without Mount Milligan $500 $0 February 4,
Slide 13: Growth – Return of Capital
Growth – Return of Capital $1.00 15 straight years of dividend $0.90 increases; demonstrates ability to $0.80 balance growth with return of capital Annual Dividends Paid Per Share $0.70 Dividend increasing in calendar $0.60 2016 to $0.92 per share 29% payout ratio of operating cash $0.50 flow in FY2
Slide 14: Q2FY16 Key Takeaways
Q2FY16 Key Takeaways Growth Record results in the December quarter were driven by our streaming business. Higher volume more than offset a lower gold price. Strong operating cash flow and existing liquidity positions us comfortably to fund our few near-term conditional commitments. Quality Pueblo Vi
Slide 15: Endnotes
QUALITY GROWTH OPPORTUNITY Endnotes ROYALGOLD,INC
Slide 16: 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 RESULTS IN THE SECOND QUARTER 1. The Company defines Gold
Slide 17: 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 8 OPERATORS’ CY15 ACTUAL PRODUCTION IN LINE WITH EXPECTATIONS (cont
Slide 18: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com