Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BAML Global Metals, Mining and Steel Conference 2019
18 slides from Royal Gold's conference presentation, May 2019
Slide 1: BAML Global Metals, Mining and Steel Conference
NASDAQ: RGLD Tony Jensen President & CEO BAML Global Metals, Mining and Steel Conference May 2019
Slide 2: Cautionary Statement
NASDAQ: RGD Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward‐ looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward‐looking statements i
Slide 3: Royal Gold Attributes
NASDAQ: RGD Royal Gold Attributes Portfolio Diverse, gold focused High quality Generating organic growth Capital Deployment Discipline Accretive, non‐dilutive Financial Position Strong liquidity Solid capital structure Total Shareholder Return (TSR) Leading commitment to dividends Attractive histori
Slide 4: Portfolio – Diverse, Gold Focused
NASDAQ: RGD Portfolio – Diverse, Gold Focused * As of Mar. 31, 2019 ** Total Revenue for nine months ended Mar. 31, 2019 4
Slide 5: Portfolio – High Quality
NASDAQ: RGD Portfolio – High Quality 60% of net revenue from operations in 1st and 2nd quartile of cash cost curve 85% below 4th quartile 2018 Wassa 5
Slide 6: Portfolio – Generating Organic Growth
NASDAQ: RGD Portfolio – Generating Organic Growth Average remaining mine life of 14 years (weighted by revenue contribution) Asset maturity 6
Slide 7: Capital Deployment – Discipline
NASDAQ: RGD Capital Deployment – Discipline Transacting at the right times, not at all times Last wave of large financial restructuring has passed Equity scarcity could bring project development and M&A opportunities $1,900 Secondary Offering Financial Restructuring Lack of Equity $1,800 $1,700 $1,6
Slide 8: Capital Deployment – Accretive, Non Dilutive
NASDAQ: RGD Capital Deployment – Accretive, Non Dilutive Growth funded through cash flow and strategic use of debt, independent of the gold price From December 31, 2012 through December 31, 2018: $1.3B operating cash flow, $350M dividends $61M of additional debt No shares issued in a follow‐on offer
Slide 9: Strong Financial Position – Capital Structure
NASDAQ: RGD Strong Financial Position – Capital Structure Royal Gold is well capitalized Expect to repay $370M June 2019 bonds with cash from Credit Facility $77.4M OCF FQ3 2019 Market Statistics(a) Share Price US$/share $81.32 52‐Week Range US$/share $70.16 ‐ $98.53 Shares Outstanding(b) M 65.5 Mar
Slide 10: TSR – Leading Commitment to Dividends
NASDAQ: RGD TSR – Leading Commitment to Dividends Dividend set at a sustainable level 18% CAGR in dividends per share 2001‐2019 $1.20 $1,800 $1,600 $1.00 $1,400 Annual Dividend (US$/share) Average Gold Price (US$/oz) $0.80 $1,200 $0.60 $1,000 $800 $0.40 36% 35% 34% 30% 29% 27% 26% 25% 25% 23% $600 2
Slide 11: TSR – Attractive Historical Return
NASDAQ: RGD TSR – Attractive Historical Return Portfolio Financial position Diverse, gold‐focused Strong liquidity High quality Solid capital structure Generating organic growth Total shareholder return Capital deployment Leading commitment to dividends Discipline Attractive historical TSR Accretive
Slide 12: Appendix
Ip ROYALGOLD,INC NASDAQ: RGLD SOLID STEADY SUCCESS au Appendix
Slide 13: Diverse Portfolio of Long-Lived Assets
NASDAQ: RGD Diverse Portfolio of Long-Lived Assets Operator Mine Metal Royal Gold Interest Ongoing Payment Remaining CY 2018 CY 2019 Initial Until* Thereafter Initial Until* Thereafter Reserve Life Operator Actual Operator (years)1 Production Production Production Guidance1,2 Guidance1,2 Streams Cen
Slide 14: Why Gold?
NASDAQ: RGD Why Gold? Gold appeals to those who want: Diversification Hedge against market risk, inflation and currency risk Gold also provides competitive returns Average Annual Return* *As of 31 December 2018. Computations in US dollars of total return indices for ICE 3-month Treasury, Bloomberg B
Slide 15: Case Study – Optionality and Return
NASDAQ: RGD Case Study – Optionality and Return Mulatos (Alamos Gold) Royal Gold acquired 1.5% NSR from Kennecott Minerals, Dec. 2005 — 2M oz cap reached April 2019 Pre‐tax return ~36% — Excess return from mine life extension (2016 through 2025) and higher gold price 15
Slide 16: Historical Multiples
NASDAQ: RGD Historical Multiples Streaming companies have historically traded at relatively high P/NAV and P/CF multiples Source: BMO Capital Markets 16 ** Peers include Franco‐Nevada, Wheaton Precious Metals, Osisko Gold Royalties, Sandstorm
Slide 17: Solid, Steady, Successful
Solid, Steady, Successful Board and Management team positioned for success William Hayes Tony Jensen Sybil Veenman Jamie Sokalsky Christopher M.T. Thompson Ronald J. Vance Kevin McArthur Independent Director and Director; President and Independent Director; Independent Director; Independent Director
Slide 18: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com
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