Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q3 FY2018 Earnings Presentation
17 slides from Royal Gold's earnings presentation, May 3, 2018
Slide 1: Third Fiscal Quarter 2018 Results
Third Fiscal Quarter 2018 Results Royal Gold, Inc. May 3, 2018 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement NASDAQ: RGLD Forward-Looking Statements: 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 th
Slide 3: Today's Speakers
Today’s Speakers NASDAQ: RGLD Tony Jensen Stefan Wenger President and CEO CFO and Treasurer | 3
Slide 4: Another solid quarter
Another solid quarter NASDAQ: RGLD Revenue of $116 million, up 8% First sales from Rainy River, higher gold price Reported loss of ($2.35) per share Reflects non-cash charges of $184.9 million, net of tax, primarily related to Pascua-Lama charge Adjusted earnings1 of $0.48 per share, up 32% Cash flo
Slide 5: Recent Portfolio Updates
Recent Portfolio Updates NASDAQ: RGLD Rainy River, Wassa & Prestea, Mount Milligan 17.5kptd average throughput in second quarter of operation3 87% average gold recovery achieved April 1-233 Throughput, grade and recovery expected to increase3,4 Rainy River Wassa UG inferred resource more than double
Slide 6: Near-term growth
Near-term growth NASDAQ: RGLD Focused on increasing and stabilizing process availability3 Study to increase throughput to 24ktpd from 21kptd3 Expected to become a Top 10 revenue generator for RGLD3,4 Rainy River Stripping continues, production expected to build in CY193 4.5% NVR & 5% GSR royalty 3.2
Slide 7: Organic Growth from our Diverse Portfolio
Organic Growth from our Diverse Portfolio NASDAQ: RGLD Updates from our portfolio3 of 192 total assets (39 operating & 22 development) Development/permitting activity at: Back River (1.95% and 2.35% NSR after threshold production achieved) Production startup activity at: LaRonde Zone 5 (2% NSR) to b
Slide 8: Peak Gold Joint Venture
Peak Gold Joint Venture NASDAQ: RGLD Gold-silver-copper skarn deposit with a strong grade profile, near surface and near existing infrastructure Royal Gold holds 2% and 3% NSR royalties over certain areas and is managing partner of the Peak Gold JV Preliminary M&I resource estimate7,8 of 11.3 millio
Slide 9: Long-Term Optionality
Long-Term Optionality NASDAQ: RGLD Pre-oxidation heap leach & flotation concentrate3 Potential ~7Moz resource to reserve conversion(100%)3 2017 scoping study followed by 2018 PFS3,4 Pueblo Viejo 1.4% NSR on gold and copper on ~30% of La Fortuna3 PFS recently completed, feasibility expected in H2 201
Slide 10: Delevering continues
Delevering continues NASDAQ: RGLD Net Debt/EBITDA9 1.0x at 3-31-18 Focus on using cash flow to reduce debt, paid another $75m in March At current metals prices and assuming no changes to portfolio,we expect to: Repay the $75 million outstanding on our revolver before June 30, 2018 Repay principal of
Slide 11: Q3FY18 Results and Outlook
Q3FY18 Results and Outlook NASDAQ: RGLD FQ3 effective tax rate was 22.9% FQ3 ending inventory 26,000 gold ounces and 659,000 silver ounces Reflects deliveries received in late March FQ4 stream sales expected to be to be in-line with FQ3, as inventory is expected to be reduced according to our routin
Slide 12: Strong cash flow generation Solid balance sheet Organic growth
Strong cash flow generation Solid balance sheet Organic growth Robust liquidity NASDAQ: RGLD
Slide 13: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at April 30, 2018) CY2018 Reserve Operator RGLD RGLD RGLD pays RGLD pays Remaining Operator Mine Metal RGLD interest until until until until until Production interest interest (per unit) (per ounce) Mine Life Guidance (Years) (
Slide 14: Endnotes
Endnotes NASDAQ: RGLD 1. Adjusted EPS is a non-GAAP measure. Please see slide 15 for reconciliation. 2. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 3. Information has been provided to the Company by the operators of those propertie
Slide 15: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation NASDAQ: RGLD Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be consid
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation NASDAQ: RGLD Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating
Slide 17: 1660 Wynkoop Street, #1000 Denver, CO 80202 info@royalgold.com
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD