Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Goldman Sachs Global Metals and Mining Conference 2017
20 slides from Royal Gold's conference presentation, Nov 29, 2017
Slide 1: Goldman Sachs Global Metals and Mining Conference
Goldman Sachs Global Metals and Mining Conference Stefan Wenger CFO and Treasurer November 29, 2017 NASDAQ: RGLD
Slide 2: Cautionary Statement
Cautionary Statement NASDAQ: RGLD 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 result
Slide 3: 20+ Year Track Record
20+ Year Track Record NASDAQ: RGLD Performance Efficiency Discipline Cash flow generation Diverse portfolio Strategic capital allocation Quickly delevering Strong margins Equity stewardship Embedded growth Lean structure Dividend returns | 3
Slide 4: Cash Flow Generation
Performance Cash Flow Generation NASDAQ: RGLD Operating cash flow growth in Q1FY18 building on record FY17 performance Gold price essentially flat Cash from operations vs gold price $300 $2,000 $282 $266 $1,800 OCF average = $170m per year $250 $1,600 Gold Price in US Dollars Cash from Operations in
Slide 5: Quickly Delevering
Performance Quickly Delevering NASDAQ: RGLD <1.6x net debt to EBITDA,1 liquidity of over $900 million, both at 9-30-17 $45m Repaid March 31, 2017 $50m Repaid June 30, 2017 $50m Repaid Sept 5, 2017 1 The term “EBITDA” is a non-GAAP financial measure. See slide 19 for additional information. | 5
Slide 6: Embedded Growth
Performance Embedded Growth NASDAQ: RGLD Sequential growth catalysts in calendar 2017 and 2018, bought and paid for New Gold: Commercial production began October 20171 Stream on 6.5% of gold and 60% of silver1,2 Rainy Rainy River River -- 2017 2017 3.9Moz gold in reserves; 10.0Moz silver in reserves
Slide 7: Commercial Production at Rainy River
Performance Commercial Production at Rainy River NASDAQ: RGLD Commercial production declared October 19, which was 2 weeks ahead of schedule1 Achieved 18,500 tonnes per day, or 88% of capacity for the period Oct 1-241,2 Ball Rainy Mill and SAG Mill River - 2017 Rainy River - 2017 Schedule 2 Amendmen
Slide 8: Diverse Portfolio
Efficiency Diverse Portfolio NASDAQ: RGLD Rainy River is our 40th producing property1 197 total property interests (all minerals); 40 producing and 23 in development2 87% of revenue from precious metals3 89% of revenue from Canada, Chile, US, Mexico and Dominican Republic3 1 Producing properties not
Slide 9: Strong Margins
Gross Margin Efficiency 20% 40% 60% 80% 100% 0% NYSE:FLR NYSE:ADM NasdaqGS:ESRX NYSE:LLL NYSE:SLB NasdaqGS:EXPD NasdaqGS:PCAR NYSE:FTI NYSE:TXT NYSE:CNC NYSE:LYB NYSE:UPS NYSE:GD NYSE:DLPH NYSE:ADS NYSE:HRL NYSE:ALL NasdaqGS:PDCO NYSE:CSRA NYSE:PH NYSE:CMI NYSE:DTE NYSE:DVA NasdaqGS:HSIC NYSE:HPE NY
Slide 10: Lean Structure
Efficiency Lean Structure NASDAQ: RGLD Our revenue per employee is higher than 497 of the S&P 500 Revenue per employee NYSE:VTR NasdaqGS:GILD NasdaqGS:CBOE NYSE:DHI NYSE:NBL NYSE:NRG $3m $19m $25m NYSE:PXD NYSE:CF NasdaqGS:VRSN $11m (REIT) (REIT) NYSE:HPQ NasdaqGS:SNI NYSE:TRV NYSE:AIG $2m NYSE:UNH
Slide 11: Strategic Capital Allocation
Discipline Strategic Capital Allocation NASDAQ: RGLD We maintained a strong balance sheet and deployed capital opportunistically Gold price at the time of recent transaction agreements $1,900 $700 $USD Millions of Consideration paid by Royal Gold Pueblo Viejo $600 $1,700 Andacollo $500 $1,500 Gold P
Slide 12: Strategic Capital Allocation: Net Revenue on Capital Deployed
Discipline Strategic Capital Allocation NASDAQ: RGLD Strong net revenue on capital deployed, with significant mine life remaining Net revenue on capital 1991-2014 Net revenue3 on capital 2015-2017 $3,000 $3,000 Remaining Years of Mine Life 20 20 Remaining Years of Mine Life $2,500 $2,500 17 years 12
Slide 13: Equity Stewardship
Millions of Shares Outstanding * at June 30, 2017 Discipline 200 400 600 800 0 1,000 1,200 1,400 1,600 1,800 Royal Gold, Inc. *Torex Gold Resources Inc Endeavour Mining Corporation Randgold Resources Limited Osisko Gold Royalties Ltd. *SSR Mining Inc. Fortuna Silver Mines Inc. *Pan American Silver C
Slide 14: Dividend Returns
Discipline Dividend Returns NASDAQ: RGLD 19% CAGR in dividends per share since 2001, and currently equates to $1.00 per share, a 1.2% annual yield, and an average 22% OCF yield1 Latest increase Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) $1.00 $1,800 $0.90 $1,600
Slide 15: Highly Skilled Board Leadership
Discipline Highly Skilled Board Leadership NASDAQ: RGLD William Hayes Independent Tony Jensen Kevin McArthur Jamie Sokalsky Director and Chairman of the Director; President and CEO, Independent Director; Independent Director; Board; Former EVP, Placer Royal Gold, Inc. Executive Chair, Tahoe Former P
Slide 16: 20+ Years of Solid Performance
Performance 20+ Years of Solid Performance NASDAQ: RGLD Our focus is total shareholder return (TSR) 20-year total shareholder return RGLD 1,400 % +1261% Percentage Change in Total Return Price 1,200 % 1,000 % 800 % 600 % Gold Price 400 % +313% 200 % S&P 500 +287% 0% -200 % Gold Price in US Dollars %
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
Slide 18: Portfolio of Assets
Portfolio of Assets Diverse, Long Lived Properties NASDAQ: RGLD Streams (at September 30, 2017) CY2017 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 (Year
Slide 19: Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures and Adjusted EBITDA 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
Slide 20: 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
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