Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — BofA Merrill Lynch Canada Royalty/Streaming Luncheon Panel (September 2017)
16 slides from Royal Gold's conference presentation, Sep 8, 2017
Slide 1: Bank of America Merrill Lynch
Bank of America Merrill Lynch William Heissenbuttel Vice President Corporate Development September 8, 2017
Slide 2: Cautionary Statement
Cautionary Statement 2 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
Slide 3: FY 2017 Highlights
FY 2017 Highlights 3 Record revenue Record cash flow from operations Record volume Excellent liquidity and financial condition Record dividends Sequential growth catalysts already bought and paid for: Rainy River (CY 2017) Cortez Crossroads (CY 2018) Peñasquito Pyrite Leach (CY 2019) Highly sk
Slide 4: FY17 Launched a New Phase of Growth
FY17 Launched a New Phase of Growth 4 Step change in cash flow from Pueblo Viejo was the largest operations, up 56% over prior year; contributor to FY17 revenue increase gold price flat FY17 $266m $2,000 Wassa Cortez Other Revenue Prestea $0.4 $0.4 $441m Peñasquito $2.1 $250 $1,800 Andacollo $3.9 OC
Slide 5: Historical Growth
Historical Growth 5 We maintained a strong balance sheet and deployed capital opportunistically Committed $1.4 billion in mid‐2015 Paid with cash on hand, cash flow, and incremental $345 million with credit facility November 2011‐ June 2017 $1,900 These four transactions are now entirely $1,800
Slide 6: Historical Growth: 12% CAGR while gold supply flat
Historical Growth 6 12% CAGR1 over the last 5 fiscal years while annual gold supply was flat Royal Gold Volume Profile Annual Gold Supply(Tonnes), 2011‐2016 through 6‐30‐17 300,000 250,000 Forecast Net Gold Equivalent Ounces (GEOs)2 200,000 Source: World Gold Council Supply essentially flat 150,000
Slide 7: Liquidity and Financial Condition
Liquidity and Financial Condition 7 Strong liquidity of >$850 million Efficient leverage ratio currently at <1.7x Net Debt/EBITDA1 Focus on using free cash flow to reduce debt No additional funding requirements1 Date Item ($USD millions) June 30, 2017 Undrawn Revolver $750m June 30, 2017 Working Cap
Slide 8: Record Dividends and Share Performance
Record Dividends and Share Performance 8 20% CAGR in dividends per share since 2001, and currently equates to $0.96 per share, a 1.1% annual yield, and an average 25% OCF yield1 Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) $1.00 $1,800 $0.90 $1,600 Average Annual G
Slide 9: Record Dividends and Share Performance
Record Dividends and Share Performance 9 Over the last decade RGLD outperformed the GDX and GLD Gold ETF Royal Gold Total Return SPDR Gold Shares Total Return VanEck Vectors Gold Miners ETF Total Return 300% 250% RGLD +222% 200% 150% 100% GLD +84% 50% 0% GDX ‐50% ‐38% ‐100% Source:YCharts NASDAQ: RG
Slide 10: Upcoming Growth Catalysts
Upcoming Growth Catalysts 10 Sequential growth catalyst in each of calendar 2017, 2018, and 2019 New Gold: First production expected September 20171 Stream on 6.5% of gold and 60% of silver1 3.9Moz gold in reserves; 10.0Moz silver in reserves1,2 Rainy River ‐ 2017 Pueblo Viejo – Potential Re
Slide 11: Board of Directors
Board of Directors 11 William Hayes M. Craig Haase Tony Jensen Kevin McArthur Independent Director Independent Director; Director; President and Independent Director; and Chairman of the Former EVP and Chief CEO, Royal Gold, Inc. Executive Chair, Tahoe Board; Former EVP, Legal Officer, Franco‐ Resou
Slide 12: Royal Gold contact details
1660 Wynkoop Street, #1000 Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
Slide 13: Portfolio of Assets
Portfolio of Assets 13 Diverse, Long Lived Properties Streams (at June 30, 2017) Reserve CY2017 RGLD RGLD RGLD pays RGLD pays Remaining Operator Operator Mine Metal RGLD interest until until until until until interest interest (per unit) (per ounce) Mine Life Guidance (Years) (oz/lbs)2 Mount LOM (li
Slide 14: Appendix
Appendix
Slide 15: Tetlin Project – Peak Gold Joint Venture
Tetlin Project – Peak Gold Joint Venture 15 Located in Eastern Interior Large gold‐silver‐copper skarn Alaska on Alcan Hwy, 200 paved road miles from deposit with a strong grade Fairbanks, 15 miles south profile, near surface and near of Tok All season gravel road existing infrastructure allowing ye
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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