Slide 1: Second Quarter Fiscal 2014 Results
Second Quarter Fiscal 2014 Results January 30, 2014
Slide 2: Today’s Speakers
Today’s Speakers January 30, 2014 2 Tony Jensen President and CEO Stefan Wenger CFO and Treasurer Bill Zisch VP Operations
Slide 3: 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 4: Q2 2014 Highlights & Recent Developments
Q2 2014 Highlights & Recent Developments January 30, 2014 4 Operating results mostly in line with expectations Initial revenue from Mt. Milligan First gold shipment of 2,149 oz to Royal Gold (revenue of $2.6M) Second shipment of 10,475 oz on January 23, 2014 Expanded Credit Facility Additions to por
Slide 5: Goldrush Project
Goldrush Project January 30, 2014 5 Operator: Barrick Location: approx. 4 miles from the Cortez mine in Nevada Royalty: 1.0% NSR (Au) M&I Resource (12/31/13): 8.4M oz (Au) Resource expansion potential Significant infrastructure in the area
Slide 6: Cortez Royalty Ground: NVR-1
Cortez Royalty Ground: NVR-1 (Crossroads Deposit now included) January 30, 2014 6 NVR1 Crossroads
Slide 7: Royalty Boundaries at Cortez
Royalty Boundaries at Cortez January 30, 2014 7
Slide 8: Cortez Royalty Ground: GSR1
Cortez Royalty Ground: GSR1 January 30, 2014 8 GSR1
Slide 9: Cortez Royalty Ground: GSR2
Cortez Royalty Ground: GSR2 January 30, 2014 9 GSR2
Slide 10: Cortez Royalty Ground: GSR3
Cortez Royalty Ground: GSR3 January 30, 2014 10
Slide 11: Financial Highlights
Financial Highlights January 30, 2014 11 Second quarter FY2014 Revenue of $52.8 million Adjusted EBITDA 86% of revenue Cash dividend of $13.7M; payout ratio of 39% of operating cash flow Effective tax rate of 37% was flat vs prior year First revenue from Mt. Milligan 5,485 payable ounces*52.25% (Roy
Slide 12: Credit Facility Expansion
Credit Facility Expansion January 30, 2014 12 Credit Facility Increased to $450M from $350M Matures in January 2019 $150 million accordion Reduced commitment fee to 0.25% from 0.375% Reduced interest rate to LIBOR +1.25% from LIBOR +1.75%
Slide 13: Financial Strength
Financial Strength 13 Strong Balance Sheet and Cash Flow in an Attractive Market January 30, 2014 $350M Undrawn Credit $704.8M Working Capital $370M convertible debt 2019 @2.875% * $178.4M
Slide 14: Production and Revenue Waterfall
Production and Revenue Waterfall January 30, 2014 14 Thousands of Gold Equivalent Ounces
Slide 15: Mt. Milligan Update
Mt. Milligan Update January 30, 2014 15 Ramp-up underway Gold concentrate production through Dec 31, 2013: 21.1K oz 5,485 payable gold ounces shipped in December 2013 10,475 payable gold ounces shipped in January 2014
Slide 16: Well-positioned
Well-positioned January 30, 2014 16 Two new additions to the portfolio Deliveries from Mt. Milligan have begun Strong balance sheet with over $1.1 billion in liquidity Few commitments for cash flow Growth profile already embedded in the company Attractive market environment
Slide 17: Endnotes
Endnotes In ROYALGOLD,INC
Slide 18: Endnotes
Endnotes January 30, 2014 18 PAGE 13 FINANCIAL STRENGTH Undrawn credit facility has increased to $450M, as of January 2014. $50M commitment for the Tulsequah Chief project to be paid over the development period of the project.
Slide 19: Appendix A: Property Portfolio
Appendix A: Property Portfolio January 30, 2014
Slide 20: Financially Robust Diverse Portfolio of Assets
Financially Robust 20 Diverse Portfolio of Assets January 23, 2014
Slide 21: 1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com January 30, 2014