Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — CIBC 18th Annual Whistler Institutional Investor Conference 2015
22 slides from Royal Gold's conference presentation, Jan 22, 2015
Slide 1: CIBC 18th Annual Whistler Institutional Investor Conference
CIBC 18th Annual Whistler Institutional Investor Conference Tony Jensen President and CEO January 2015 SOLID PORTFOLIO. SOLID FUTURE.
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: What Makes Royal Gold Unique
What Makes Royal Gold Unique Growth Quality Opportunity January 2015 3
Slide 4: Growth: Mount Milligan Ramp-Up
Growth Mount Milligan Ramp-Up 250 Mt. Milligan reported payable production Cumulative Ounces 200 Production subject to RGLD stream (payable production *.5225) 150 RGLD gold received to date 100 50 0 CQ4 '13 CQ1 '14 CQ2 '14 CQ3 '14 CQ4 '14 Calendar year 2014 production of 178koz of payable gold Daily
Slide 5: Growth: Phoenix Project Construction
Growth Phoenix Project Construction Rubicon Minerals’ photo of Phoenix Project, Summer 2014 Rubicon Minerals’ photo of SAG and Ball mill, December 2014 As of mid-December 2014: Over half of the project has been completed Stockpiling of mineralized material from underground stopes underway 45%
Slide 6: Quality: Focused investment criteria yields a world class portfolio
Quality Focused investment criteria yields a world class portfolio 56% of our FY2014 revenues from Counterparty investment-grade rated companies1 Place Over 92% of our reserves from S&P “A” or higher rated countries1 Weighted average cash cost Andacollo, Peñasquito, Project ~$578/GEO, gross margin o
Slide 7: Quality: Cash Margin by Operating Property
Quality Cash Margin by Operating Property First Three Quarters of 2014 through Sept 30 90% 80% The operators of our royalties and streams recognized an average 55% gross margin in the 70% first three quarters of 2014, which is an average cash cost of $578 per gold equivalent ounce, on 60% properties
Slide 8: Quality: World class, long lived portfolio
Quality World class, long lived portfolio Mt. Milligan Royalty: 52.25% of payable gold1 Contribution to FY2015 Q1 revenue Reserves2: 6.2M oz (Au) 29% or $19.7M Estimated Mine Life: 20+ Years Andacollo Royalty3: 75% of Au production (NSR) Contribution to FY2015 Q1 revenue Reserves2: 1.8M oz (Au) 15%
Slide 9: Quality: Long mine lives amongst largest investments
Quality Long mine lives amongst largest investments 1000 25 Estimated Years of Remaining Mine Life 900 800 20 700 600 15 $ Millions 500 400 10 300 200 5 100 0 0 Initial investment Cumulative net revenue through September 30, 2014 Estimated remaining mine life1 January 2015 9
Slide 10: Opportunity: Over $900 million uncommitted
Opportunity Over $900 million uncommitted at a time when royalty/stream financing is needed Capital to invest… Net of future commitments ($m) $1,187.0 Working capital & undrawn credit at 9-30-14 Liquidity at 9/30/2014 $737M Working Capital $450M Undrawn -$17.0 Phoenix payment on 10-3-14 Credit -$7.5
Slide 11: What Makes Royal Gold Unique
What Makes Royal Gold Unique Growth Quality Opportunity January 2015 11
Slide 12: Endnotes
Endnotes SOLID PORTFOLIO. SOLID FUTURE.
Slide 13: Endnotes
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 6 QUALITY 1. Source is S&P CapitaliQ September 10, 2014 fo
Slide 14: Appendix A Background
Appendix A Background SOLID PORTFOLIO. SOLID FUTURE.
Slide 15: Royal Gold: The Quality Royalty / Streaming Name to Own
Royal Gold The Quality Royalty / Streaming Name to Own Longevity – in business since 1981 Exploration Near-Term Growth – already bought and paid for No cost inflation concerns Junior Operators Quality assets/reputable partners Intermediate Operators ~80% of Revenue => EBITDA $2.1B in investments on
Slide 16: Gold Price vs US Debt Ceiling
Gold Price vs US Debt Ceiling Historical Gold Price and US Debt Ceiling Historical Relationship July 1994 - September 2014 Suggests ~$1500 equilibrium $2,000 $18,000 $2,000 $1,800 $16,000 $1,600 y = 0.1082x - 302.89 $1,500 $14,000 R² = 0.9109 $1,400 $12,000 $1,200 Gold Price $1,000 $10,000 $1,000 $8
Slide 17: Alignment with Counterparties
Alignment with Counterparties Hypothetical example estimate for illustrative purposes only: Equity Stream 200koz/year gold project expansion, 2 year development, 12 yr mine life Current market cap $300,000,000 $300,000,000 Shares outstanding 200,000,000 200,000,000 Share price $1.50 $1.50 Financing
Slide 18: Alignment with Counterparties
Alignment with Counterparties Return of investment based No joint venture involvement on production Royal Gold provides additional No principal amortization or investor exposure maturity date 4-6 week due diligence Deliveries can match key smelter terms Repayment Management Simplified reporting Time
Slide 19: Alignment with Counterparties: Multiple Investment Entry Points
Alignment with Counterparties Multiple Investment Entry Points1 Capital Consuming Capital Generating 1 For illustrative purposes only January 2015 19
Slide 20: Appendix B: Property Portfolio
Appendix B: Property Portfolio SOLID PORTFOLIO. SOLID FUTURE.
Slide 21: Property Portfolio
Property Portfolio January 2015 21
Slide 22: Contact
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com SOLID PORTFOLIO. SOLID FUTURE.
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