Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q3 FY2014 Earnings Presentation
17 slides from Royal Gold's earnings presentation, May 1, 2014
Slide 1: Third Quarter Fiscal 2014 Results
Third Quarter Fiscal 2014 Results May 1, 2014
Slide 2: Today's Speakers
Today’s Speakers May 1, 2014 2 Tony Jensen President and CEO Stefan Wenger CFO and Treasurer Bill Zisch VP Operations
Slide 3: 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 diffe
Slide 4: Q3 2014 Highlights
Q3 2014 Highlights 4 Solid operating results – Gold price down 21%, volume down 2% over prior year quarter – 44,662 Gold equivalent ounce (“GEO”) production – Lower volume at Andacollo, as expected, offset by Cortez and Peñasquito – Commercial production at Mt. Milligan and continued ramp - up Stren
Slide 5: Production and Revenue Waterfall
Production and Revenue Waterfall 5 Thousands of Gold Equivalent Ounces May 1, 2014 44.66 41.4 30 32 34 36 38 40 42 44 46 48 Production Waterfall vs Prior Quarter $57.7 52.8 $30 $35 $40 $45 $50 $55 $60 $SUD Millions Revenue Waterfall vs Prior Quarter $
Slide 6: CY 2014 Estimated Production Subject to our Interest and CYTD Actuals
CY 2014 Estimated Production Subject to our Interest and CYTD Actuals 6 May 1, 2014 Gold Silver Base Metals Gold Silver Base Metals Royalty/Stream (oz.) (oz.) (lbs.) (oz.) (oz.) (lbs.) Andacollo 75% 38,500 - - 10,400 - - Canadian Malartic 1.0% - 1.5% NSR 344,000 - - 110,200 - - Cortez GSR1 0.40% to
Slide 7: Mt. Milligan Gold Delivery and Sales Detail
Mt. Milligan Gold Delivery and Sales Detail May 1, 2014 7 Gold ounces delivered are based on: – contained ounces shipped – multiplied by a 97% payable factor, a provisional percentage for the first 12 shipments, and our 52.25% stream interest – First 12 shipments’ balance delivered after final settl
Slide 8: Financial Highlights
Financial Highlights 8 Revenue of $57.7 million $1.9 million cost of sales related to Mt. Milligan gold deliveries Adjusted EBITDA 86% of revenue Effective tax rate of 16.3% due to – A dditional contribution from Mt. Milligan – A tax benefit recorded upon filing of our fiscal 2013 tax returns during
Slide 9: Financial Strength
Financial Strength 9 Strong Balance Sheet and Cash Flow in an Attractive Market $0 $200 $400 $600 $800 $1,000 $1,200 Liquidity at 3/31/2014 Debt and Commitments LTM Operating Cash Flow $USD Millions * Includes Commitments for Goldrush ($7M), Phoenix ($45M), and Tulsequah Chief($50M) $ 4 50M Undrawn
Slide 10: Phoenix Stream Agreement Overview
Phoenix Stream Agreement Overview 10 Investment of $75 million to Rubicon Minerals in five installments – $30 million paid in FQ3 , expect to pay balance of $45 million later this year Project Attributes: ‒ High grade operation in advanced stages of construction ‒ Stable political jurisdiction ‒ Per
Slide 11: Phoenix Stream Agreement Details
11 Stream: 6.3% of Au production (until 135,000 ounces); 3.15% thereafter Delivery payment of 25% of spot price at time of delivery LOM projected production: 2.19M oz (Au) 1 Production Start - up: mid - 2015 2 Estimated mine life: 13 years 1 Est. average annual production: 165,300 oz 1 Phoenix Strea
Slide 12: Delivering on Growth Objectives
Delivering on Growth Objectives 12 Deliveries from Mt. Milligan continue to grow Strong balance sheet with over $1.1 billion in liquidity Few near - term commitments for cash flow G rowth profile already embedded in the company A ttractive market environment where royalty and stream products offer a
Slide 13: Endnotes
Endnotes World Class Royalty Company 3 I> ROYALGOLD,INC
Slide 14: Endnotes
Endnotes 14 May 1, 2014 PAGE 6 CY 2014 Operator Production Estimates and CYTD Actuals 1. There can be no assurance that production estimates received from our operators will be achieved . Production Estimates represent the portion of the operators’ production at the relevant property which is subjec
Slide 15: Appendix A: Property Portfolio
Appendix A: Property Portfolio
Slide 16: Financially Robust Diverse Portfolio of Assets
Financially Robust 16 Diverse Portfolio of Assets May 1, 2014
Slide 17: 1660 Wynkoop Street Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com
1660 Wynkoop Street Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com