Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — CIBC 19th Annual Whistler Institutional Investor Conference (January 2016)
16 slides from Royal Gold's conference presentation, Jan 20, 2016
Slide 1: CIBC 19th Annual Whistler Institutional Investor Conference
CIBC 19th Annual Whistler Institutional Investor Conference Tony Jensen President and CEO January 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: What Makes Royal Gold Unique
What Makes Royal Gold Unique Opportunity We have recently deployed capital opportunistically in a period of gold price weakness, with a focus on asset quality and current and near-term production, and our valuation has never been more compelling Quality New portfolio additions such as Pueblo Viejo a
Slide 4: Opportunity – Strong Performance
Opportunity – Strong Performance FY2016 Building on Record 2015 Volume and Cash Flow Net Gold Equivalent Ounces Average gold price Record volume of nearly 200,000 net gold equivalent ounces (GEOs) Net Gold Equivalent Ounces1 250,000 $1,800 $1,600 200,000 $1,400 in FY2015 150,000 $1,200 8% CAGR sin
Slide 5: 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 6: 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 January 2016
Slide 7: Quality – Mount Milligan Highlights
Quality – Mount Milligan Highlights Mount Milligan Quarterly Payable Gold Production1 70 Thousands of ounces of payable 60 CY2016 volume guidance of 50 240,000-270,000 ounces of gold production 40 30 CY2016 cash cost guidance of 20 $0.25-$0.75 per pound of copper, 10 Peñasquito net of our stream1 0
Slide 8: Quality – Mount Milligan Highlights
Quality – Mount Milligan Highlights Payable gold production of over 58,000 ounces in the December 2015 quarter (100% basis)1 ~60ktpd design capacity achieved Peñasquito at the end of December 20151 Royal Gold has already received over $109 million in gross revenue from gold sales related to Mount Mi
Slide 9: Quality – Portfolio Transformation
Quality – Portfolio Transformation Pueblo Viejo – Barrick Gold (60% interest), Dominican Republic Will deliver ~50,000 gold equivalent ounces of production per year to Royal Gold1 Gold deliveries began in December 2015; silver deliveries begin in January 2016 Latest Update2: A comprehensive plan t
Slide 10: Quality – Record Streaming Sales
Quality – Record Streaming Sales Transformative Pueblo Viejo stream drives record stream segment results 70,000 Dec 2015 60,000 includes new Quarterly Gross Gold Equivalent contributions 50,000 from Pueblo Viejo Ounces (GEOs) 40,000 30,000 20,000 10,000 Golden Star 0 Calendar Quarter January 2016 10
Slide 11: Growth – Investment Diversity
Growth – Investment Diversity Pueblo Viejo and Rainy River will build on FY2015 success FY2015 GEO Volume Plus Relative Estimated Estimated Distribution of Future GEO Volume1 Contribution From New and Expanding Streams1 100.00% 100% Mount Milligan 300 90.00% Rainy River Net Gold Equivalent Ounces (G
Slide 12: 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 $0.70 Dividend increasing in calendar Annual Dividends Paid Per Share $0.60 2016 to $0.92 per share 29% payout ratio of operating cash $0.50 flow in FY2
Slide 13: Endnotes
QUALITY GROWTH OPPORTUNITY Endnotes ROYALGOLD,INC
Slide 14: 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 4 OPPORTUNITY – STRONG PERFORMANCE 1. Royal Gold defines n
Slide 15: Endnotes (cont.)
Endnotes (cont.) 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 11 GROWTH – INVESTMENT DIVERSITY 1. Estimates are
Slide 16: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
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