Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — 2016 BAML Global Metals, Mining & Steel Conference
23 slides from Royal Gold's conference presentation, May 11, 2016
Slide 1: BAML 2016 Global Metals, Mining & Steel Conference
BAML 2016 Global Metals, Mining & Steel Conference Tony Jensen President and CEO May 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: Investment Takeaways
Investment Takeaways Growth Revenue, volume and EBITDA were up 20-30% from a year ago. Quality Mount Milligan is one of the lowest cost copper mines in the world. Pueblo Viejo is reporting <$500 per ounce all-in sustaining costs. Opportunity $50 million of debt paid down in FQ3. $500 million of exis
Slide 4: Growth: New Stream Transactions
Growth New Stream Transactions Estimated Annual Operator Property Strategic Rationale Net GEOs Current Status (first five years)1 Producing; one of only three mines in the world to produce >1m oz per year; first Now receiving regular Barrick Pueblo Viejo 50,500 quartile costs; high quality resources
Slide 5: Growth: Diversifying Portfolio
Growth Diversifying Portfolio Pueblo Viejo and Rainy River expected to build on FY2015 success FY2015 GEO Volume Plus Relative Estimated Estimated Distribution of Future GEO Volume1 Contribution From New and Expanding Streams1 Canadian 350,000 Cortez (incl Holt Malartic Crossroads) Rainy River 300,0
Slide 6: Growth: Returns Per Share
Growth Returns Per Share FQ3 cash flow per share of over $1.00 as Royal Gold’s share count is essentially unchanged in four years; our shareholders directly benefit from the expansion of our business 1 Operating Cash Flow per share Gold Price Per Oz $1,240 $1.20 $1,220 $1.00 $1,200 $1,180 $0.80 $1,1
Slide 7: Growth: CY2016 Gold Outlook
Growth CY2016 Gold Outlook Our three largest interests—Mount Milligan, Andacollo and Pueblo Viejo— expect notable production increases in CY2016 Calendar 2015 Calendar 2016 Operator's Operator’s FQ3 2016 Net Revenue 1 2 Actual Estimate Gold Gold Royalty/Stream (oz.) (oz.) Andacollo Pueblo Viejo Moun
Slide 8: Growth: Returning Capital to Shareholders
Growth Returning Capital to Shareholders 15 straight years of dividend increases Dividend increased in calendar 2016 to $0.92 per share 29% payout ratio of operating cash flow in FY20151 21% compound annual growth rate (CAGR) since 2001 Equates to 1.6% annual yield (May 5, 2016) $1.00 $0.90 1.80 Ann
Slide 9: Quality: Mount Milligan World Class Performance
Quality Mount Milligan World Class Performance Mount Milligan – Thompson Creek, Canada Peñasquito 60ktpd design capacity achieved at the end of December 2015 CY2016 volume guidance of 240,000-270,000 ounces of gold1, a 10-15% increase Construction of permanent secondary crusher ongoing, commis
Slide 10: Quality: Pueblo Viejo Contributions Growing
Quality Pueblo Viejo Contributions Growing Pueblo Viejo – Barrick Gold (60% interest), Dominican Republic Expected to deliver ~50,000 GEOs of production per year to Royal Gold1 Gold deliveries began in December 2015; silver deliveries began in January 2016 Latest Update (Barrick’s share)2: o C
Slide 11: Quality: Rainy River In Construction
Quality Rainy River In Construction Rainy River – New Gold, Canada December 2015 February 2016 Latest Update1: o Overall construction progress is currently 35% complete o Plant site earthworks over 90% complete o Assembly of initial mine fleet complete o Installation of mechanical, piping, electri
Slide 12: Quality: Wassa and Prestea Transition to Underground
Quality Wassa and Prestea Transition to Underground Wassa and Prestea – Golden Star Resources, Ghana Latest Update1: o March quarter Wassa and Prestea open pit production of 53,000 ounces at cash costs estimated below $750 per ounce1, in line with full year guidance of 180,000-205,000 ounces of go
Slide 13: Quality: Cortez Crossroads On Schedule
Quality Cortez Crossroads On Schedule Cortez Crossroads – Nevada, USA Crossroads is an area of approximately 3 million ounces1 of reserves subject to Royal Gold’s 5.6% royalty interest Waste stripping in the Crossroads pit began in 20152 Dewatering wells were completed in 2015 Production exp
Slide 14: Opportunity: Investment Summary
Opportunity Investment Summary 38 producing mines driving growth beyond FY15’s record volume and cash flow Net Gold Equivalent Ounces 250,000 Record volume of nearly 200,000 Net Gold Equivalent Ounces1 200,000 net gold equivalent ounces (GEOs) 150,000 in FY2015 8% CAGR since FY2010 100,000 Mt. Mil
Slide 15: Opportunity: Valuation
Opportunity Valuation Nearly 25% of the industry’s economics, trading at less than 15% of the market cap1 RGLD Peer Group Total Net GEOs 0% 20% 40% 60% 80% 100% Operating Cash Flow 0% 20% 40% 60% 80% 100% Market Cap Golden Star 0% 20% 40% 60% 80% 100% Peer group includes Franco Nevada and Silver Whe
Slide 16: Investment Takeaways
Investment Takeaways Growth Revenue, volume and EBITDA were up 20-30% from a year ago. Quality Mount Milligan is one of the lowest cost copper mines in the world. Pueblo Viejo is reporting <$500/oz all in sustaining costs. Opportunity $50 million of debt paid down in FQ3. $500 million of existing li
Slide 17: Endnotes
QUALITY GROWTH OPPORTUNITY Endnotes ROYALGOLD,INC
Slide 18: 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 GROWTH – NEW STREAM TRANSACTIONS 1. Estimates are based
Slide 19: 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 10 QUALITY – PUEBLO VIEJO CONTRIBUTIONS GROWING 1.
Slide 20: Appendix
QUALITY GROWTH OPPORTUNITY Appendix ROYALGOLD,INC
Slide 21: Quality: Investment Returns and Thesis
Quality Investment Returns and Thesis History of generating strong returns $1,000 25 Estimated Years of Remaining Reserves $800 20 $600 15 Millions $400 10 $200 5 $- 0 * Initial investment Cumulative net revenue through March 30, 2016 Estimated remaining mine life * Includes proceeds from sale of th
Slide 22: Opportunity: Strong Balance Sheet
Opportunity Strong Balance Sheet Date Item ($USD millions) March 31, 2016 Undrawn Revolver $350.0m March 31, 2016 Working Capital $151.0m March 31, 2016 Total Available Liquidity $501.0m Strong and Growing Fiscal 3Q Operating Cash Flow Increased $66.1m Operating Cash Flow 27% from the December quart
Slide 23: 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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