Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Investor Day (February 2019)
20 slides from Royal Gold's investor day presentation, Feb 24, 2019
Slide 1: 7th Annual GSA Investor Day
NASDAQ: RGLD Alistair Baker Director, Business Development 7th Annual GSA Investor Day February 24, 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: Corporate Overview
NASDAQ: RGD Corporate Overview Royal Gold is a precious metals stream and royalty company Diverse portfolio: 191 total interests, with 41 producing mines and 17 development projects Track record of providing dividend growth and reserve optionality Strategic objectives are to provide: Gold-focus Grow
Slide 4: Fiscal Q2 Results and Liquidity
NASDAQ: RGD Fiscal Q2 Results and Liquidity Highlights: Revenue of $97.6M Volume of 79,600 GEOs1 Earnings of $0.36/share Cash flow from operations of $58.8M Dividends of $16.4M ($1.06 per share for CY 2019) Balance sheet continues to strengthen Expect to repay $370M June 2019 bonds with cash from re
Slide 5: Strategy Score Card: Gold Focus
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Gold Focus 77% of FY 2018 revenue from gold, 9% from silver, 11% from copper Approximately 90% of FY 2018 revenue from North America, Dominican Republic and Chile 5
Slide 6: Strategy Score Card: Reinvest Cash Flow
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Reinvest Cash Flow Last secondary share offering in 2012 Cash flow increased 103% since 2012 $350 $1,800 $1,700 $300 $1,600 $250 Average Gold Price (US$/oz) $1,500 OCF (US$ million) $1
Slide 7: Strategy Score Card: Disciplined Capital Allocation
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Disciplined Capital Allocation Transacting at the right times, not at all times Last wave of large financial restructuring streams seems to be gone…for now Next opportunity set could b
Slide 8: Growing and Sustainable Dividend
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Growing and Sustainable Dividend Dividend increased to $1.06/share for CY 2019 from $1.00/share for CY 2018 19% CAGR in dividends per share 2001-2018 $1.20 $1,800 $1,600 $1.00 $1,400 A
Slide 9: Strategy Score Card: Shareholder Return
NASDAQ: RGD Strategy Score Card Gold Focus Reinvest Cash Flow Disciplined Capital Grow Dividends Shareholder Return Shareholder Return FY 2018 second consecutive year of record volume, revenue, cash flow, dividends FY 2018 TSR of 20.2% – beat the S&P 500, GDX and gold 125 120 Indexed (June 30, 2017
Slide 10: Portfolio Optionality: Peak Gold Project
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peak Gold Project Joint Venture ownership: — 60% Contango Ore Inc. (CTGO) — 40% Royal Gold; plus: o 12.7% equity interest in CTGO o 2% and 3% royalty interests o Operator Positive PEA2 results anno
Slide 11: Portfolio Optionality: Pueblo Viejo
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Pueblo Viejo (Barrick)4 PFS for combined expansion project advancing — Pilot pre-oxidation leach pad in operation — Pilot flotation concentrator construction advanced — Evaluating additional tailin
Slide 12: Portfolio Optionality: Peñasquito
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Peñasquito (Goldcorp)4 Pyrite Leach Project construction fully complete — Commercial production achieved December 2018 — Carbon pre-flotation allows processing of previously uneconomic material, in
Slide 13: Portfolio Optionality: Voisey's Bay
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Voisey’s Bay (Vale) Comprehensive settlement to long-standing litigation — 2.7% royalty on all metals reinstated effective April 1, 2018 — New calculation method for royalty on nickel concentrate b
Slide 14: Portfolio Optionality: Cortez Crossroads
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Cortez Crossroads (Barrick) Crossroads adjacent to Pipeline and South Pipeline 4.5% NVR and 5% GSR royalty 3.2M oz in reserves4 Stripping continuing, ore has been placed on leach pad4 Expect increa
Slide 15: Portfolio Optionality: Wassa
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Wassa (Golden Star)4 2019 guidance of 170-180k oz; 17% higher than 2018 production Production expected to increase from 3,500 t/day in 2019 to 4,000 t/day in 2020, compared to 7,600 t/day mill capa
Slide 16: Portfolio Optionality: Mount Milligan and Rainy River
NASDAQ: RGD Portfolio Optionality Peak Gold Pueblo Viejo Peñasquito Voisey’s Bay Cortez Wassa MtM / RR Mount Milligan (Centerra)4 Achieved high end of 2018 guidance Work continuing on long-term water solution 2019 guidance: 155-175k oz gold, 65-75M lb copper Expects reduced throughput until start of
Slide 17: Solid, Steady, Successful Performance
NASDAQ: RGD Solid, Steady, Successful Performance Cash flow and growth from broad portfolio Disciplined approach to capital deployment Strong financial position Record financial performance FY 2018 Leading shareholder return Royal Gold Board of Directors: William Hayes Tony Jensen Sybil Veenman Jami
Slide 18: Endnotes
NASDAQ: RGD Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. The results of the Preliminary Economic Analysis (PEA) are preliminary in nature and are based on various assumptions. These assumptions may be affected by envi
Slide 19: Diverse Portfolio of Long-Lived Assets
NASDAQ: RGD Diverse Portfolio of Long-Lived Assets Operator Mine Metal Royal Gold Interest Ongoing Payment Remaining CY 2018 CY 2019 Initial Until* Thereafter Initial Until* Thereafter Reserve Life Operator Actual Operator (years)1 Production Production Production Guidance1,2 Guidance1,2 Streams Cen
Slide 20: Royal Gold contact details
NASDAQ: RGLD 1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com