Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Merger or Acquisition (February 2019)
17 slides from Royal Gold's merger presentation, Feb 25, 2019
Slide 1: Khoemacau Silver Stream
NASDAQ: RGLD Khoemacau Silver Stream High Quality, Long Life Acquisition February 25, 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 in
Slide 3: Acquisition of Khoemacau Silver Stream
NASDAQ: RGD Acquisition of Khoemacau Silver Stream Call Agenda: Transaction Terms Khoemacau Project Overview Cupric Canyon Capital Botswana Overview Impact to Royal Gold 3
Slide 4: Transaction Overview
NASDAQ: RGD Transaction Overview Transaction between RGLD Gold AG, a wholly-owned subsidiary of Royal Gold, Inc., and a wholly-owned subsidiary of Cupric Canyon Capital LP (“Cupric”) $212-265M advance payment: — Silver Stream: $212M for 80% of Ag produced — Option Stream: Up to $53M additional for u
Slide 5: Khoemacau – History
NASDAQ: RGD Khoemacau – History1 Located on the Kalahari Copper Belt in NW Botswana 4,040 km2 of mineral concessions Royal Gold area of interest ~176 km2 Consolidated package assembled by Cupric: Concessions acquired from Hana Mining in 2013 Additional concessions and Boseto mill acquired from Disco
Slide 6: Khoemacau – Project Overview
NASDAQ: RGD Khoemacau – Project Overview1 Zone 5 mine will be underground Ore trucked 35 km to the Boseto mill Capacity to be upgraded to 10,000 t/d PFS for project expansion underway Power and water nearby Grid power from Botswana Power Corporation Water from existing Boseto and Haka wellfields, Kh
Slide 7: Khoemacau – Zone 5 Geology
NASDAQ: RGD Khoemacau – Zone 5 Geology1 Sediment-hosted, structurally controlled, stratiform Cu-Ag deposit Economic mineralization continuous through ore zone Typically 60% bornite, 22% chalcocite, 16% chalcopyrite Transition/sulfide interface clearly defined 225,000m drilling completed by Cupric In
Slide 8: Khoemacau – Production Profile
NASDAQ: RGD Khoemacau – Production Profile1 Cupric expects consistent production due to continuity of mineralization along strike and depth Ag contributes approximately 7% of project revenue PFS to review expansion potential completed Zone 5 Life of Mine Parameters: Throughput 10,000 t/d Ave. Cu pro
Slide 9: Khoemacau – Zone 5 Mining
NASDAQ: RGD Khoemacau – Zone 5 Mining1 Zone 5 mine will consist of 3 separate mines: South, Central, North Individual boxcuts with independent twin ramp access for South and Central Each mine operates over ~1,000m strike length Each mine to produce 1.2M t/yr over first 5yrs Conventional sub-level op
Slide 10: Khoemacau – Processing
NASDAQ: RGD Khoemacau – Processing1 Boseto plant commissioned 2012 Requires upgrades for higher grade, higher throughput Conventional sulfide flotation circuit to produce ~40% Cu concentrate Thickened tailings pumped to existing tailings storage facility Filtered tailings to be used for mine backfil
Slide 11: Khoemacau – Project Execution Status
NASDAQ: RGD Khoemacau – Project Execution Status1 Pre-construction activities are advanced Permits and approvals for construction in place Detailed engineering 60% complete Site clearing and box cuts underway Execution team identified/assembled Owner’s team in place Fluor engaged as EPCM contractor
Slide 12: Cupric Canyon Capital
NASDAQ: RGD Cupric Canyon Capital1 Cupric is privately owned by management and funds advised by Global Natural Resources Investments (GNRI) Board / Management has extensive senior-level copper project experience Member Cupric Role Experience Timothy R. Snider Founder and Chairman Ex-President & COO,
Slide 13: Botswana – Background
NASDAQ: RGD Botswana – Background Longest continuing multi-party democracy in Africa General elections held every 5 years since independence in 1966 “a model for stability in Africa” (US Dept of State, July 13, 2018) “peaceful and democratic, and corruption is low” (Economist Investment Risk Heat Ma
Slide 14: Impact to Royal Gold
NASDAQ: RGD Impact to Royal Gold Average Ag deliveries expected to be 1.5M oz/yr (80% stream) to 1.9M oz/yr (100% stream) 5.5-6.5% GEO* growth based on average 1.9M oz/yr Ag production 18,000 GEO’s (80% stream); 22,000 GEO’s (100% stream) Ag contribution to total revenue expected to increase from ~1
Slide 15: Khoemacau is a High-Quality Silver Stream
NASDAQ: RGD Khoemacau is a High-Quality Silver Stream Khoemacau has the right mix of People, Place, Project Transaction consistent with Royal Gold’s strategic objectives: ✓ Growth through cash flow ✓ Disciplined capital allocation ✓ Precious metals focus 15
Slide 16: Endnotes
NASDAQ: RGD Endnotes 1. Information on slides 5 through 12 was provided to the Company by Cupric Canyon Capital L.P., the owner and developer of the Khoemacau Project. Cupric is a privately-owned company, and the reserve, resource, process, throughput, recovery, production, geologic, metallurgical,
Slide 17: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com