Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — 15th Annual Whistler Institutional Investor Conference (January 2012)
26 slides from Royal Gold's conference presentation, January 2012
Slide 1: 15th Annual Whistler Institutional Investor Conference
15th Annual Whistler Institutional Investor Conference Royalties: Growth Opportunities Panel January 2012 World Class Royalty Company
Slide 2: Cautionary Statement
Cautionary Statement Under the Private Securities Litigation Reform Act 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
Slide 3: Introduction
Introduction Portfolio overview Cornerstone property growth Other core property growth Recent acquisitions Other growth properties Growth profile World Class Royalty Company 3
Slide 4: World Class Portfolio
World Class Portfolio 188 properties with royalty interests 38 producing 22 development 5 cornerstone assets Andacollo Peñasquito Voisey’s Bay Pascua-Lama Mt. Milligan World Class Royalty Company 4
Slide 5: Cornerstone Property Growth
Cornerstone Property Growth World Class Royalty Company 5
Slide 6: Andacollo
Andacollo Region IV Royalty: 1 75% NSR until 910K ounces are Update: produced; 50% NSR thereafter Mill throughput affected by ore hardness, which Reserves: 2 1.6M ozs gold limited throughput to 40K tpd, or approximately 73% of design capacity FY 2011 Production: 42K ozs gold (Actual) Multiple stage
Slide 7: Peñasquito
Peñasquito Zacatecas Update: Royalty: 2.0% NSR Mill throughput at approximately 82% of Reserves: 1 18.6M ozs gold; 1.1B ozs silver; design capacity; 140,000 tonnes recorded 17.6B lbs zinc; 7.3B lbs lead on 12/26/11 FY 2011 Production: 207K ozs gold; 17.3M ozs silver; SAG mills operating at design ca
Slide 8: Pascua-Lama
Pascua-Lama Region III Royalty: 1,2 0.78%-5.23% NSR Update (as of 9/30/11): (5.23% above $800 gold) Engineering: 90% complete Reserves: 3 14.7M ozs gold (limited to gold in Chile) Earthworks (Chile): 80% complete Capital: $4.7-$5.0B Pre-strip mining to commence: Q4 2011 Initial Production: Mid 2013
Slide 9: Mt. Milligan
MT. MILLIGAN Canada Mt. Milligan British Columbia Interest: 40% of payable gold Update: Purchase Price: $435/oz Capital spent: C$383.1M (as of 9/30/11) Reserves: 1 6.0M ozs gold Remaining capital: C$882.0M (as of 9/30/11) Capital: C$1.3B Initial Production: Q4 2013 Construction of camp complete Prod
Slide 10: Other Core Property Growth
Other Core Property Growth World Class Royalty Company 10
Slide 11: Mulatos and Dolores
Mulatos and Dolores MEXICO Mulatos Dolores Sonora Chihuahua Royalty: 1 1.0%-5.0% NSR Update: Royalty: 3.25% NSR (gold) Update: (5.0% above 2.0% NSR (silver) $400/oz) Gravity mill is on track Board approval for mill Reserves: 2 2.0M ozs gold to commence processing addition announced in Reserves: 2 2.
Slide 12: Holt and Wolverine
Holt Wolverine Ontario Chihuahua Yukon Royalty: 0.00013 x Au Price Update: Royalty NSR (sliding-scale) Update: At Au Prices: NSR (sliding-scale) At Ag Prices: $1,000 13.0% SAS expects to reach its < $5.00 0.0% Mill design capacity of $1,500 19.5% steady state production $5.00-$7.50 3.778% 1,700 tonn
Slide 13: Las Cruces and Malartic
Malartic Las Cruces Quebec Andalucia Quebec Royalty: 1.0%-1.5% NSR Update: Royalty: 1.5% NSR Update: (1.5% above $350/oz) First full calendar year of Reactor performance Reserves: 3 2.1B lbs copper production in 2012 continues to improve Reserves 4.7M ozs gold (Est.): 1 (subject to royalty) Full ram
Slide 14: Recent Acquisitions
Recent Acquisitions World Class Royalty Company 14
Slide 15: Mt. Milligan II
Mt. Milligan II British Columbia Transaction II Combined Transactions Additional 15% of payable gold 40% of payable gold Consideration: Current investment $364.6M: $270 ($112M paid following closing) $252.6M invested to date $435 per gold ounce $112M paid following closing Finance construction Total
Slide 16: Tulsequah Chief Project
Tulsequah Chief Project British Columbia Interest Rationale 12.5% of payable gold until 48K oz of payable gold; Precious metal focused transaction 7.5% thereafter High grade polymetallic deposit 22.5% of payable silver until 2.78M oz of payable Expected low net cash costs of silver; 9.75% thereafter
Slide 17: KSM
KSM British Columbia Royalty option: 1.25% to 2.0% NSR Production: Purchase of 1.0M shares of Seabridge Initial production: NA common stock for C$30M in June 2011 Production guidance (average): 1 After nine-month hold, Royal Gold 854K ozs gold (years 1-7) earns the ability to buy 1.25% NSR royalty o
Slide 18: Other Growth Properties
Other Growth Properties World Class Royalty Company 18
Slide 19: Property Pipeline
Property Pipeline Exploration Evaluation Development Producing Drilling (88) Resource (40) Reserve (22) (38) Mule Canyon • Buckhorn South • Simon Creek • Horse Mtn • Marmato • Cooks/Ferris Creek • Rye • BSC • ICBM • Hoosac • Hot Pot • Fletcher Jct • Doby George • Keystone • Reese River • San Rafeal
Slide 20: Other Development Growth Properties
Growth Properties Back River (Canada) Schaft Creek (Canada) Royalty: 1.95% NSR Royalty: 3.5% NPI Operator: Sabina Gold and Silver Operator: Copper Fox Resources: 4M oz Au Reserves: 5.6M oz Au 46.5M oz Ag 5.4M lbs Cu 123M lbs Ni Berg (Canada) Other Development Royalty: 1.0% NSR Kutcho Creek (Canada)
Slide 21: Growth Profile
Growth Assets Growth Profile World Class Royalty Company 21
Slide 22: Growth Profile
Growth Profile Development Pipeline Near term production growth from Exploration Evaluation Development Construction Ramp Up to cornerstone producing properties – Full Production Andacollo Design Capacity (2012) Andacollo and Peñasquito Peñasquito Design Capacity (2012) Full year of Voisey’s Bay pro
Slide 23: Footnotes
Footnotes World Class Royalty Company 23
Slide 24: Footnotes
Footnotes PAGE 6: ANDACOLLO 1 75% of payable gold until 910,000 payable ounces; 50% thereafter. As of September 30, 2011, there have been approximately 59,000 cumulative payable ounces produced. Gold is a by-product of copper. 2 Reserves as of December 31, 2010. PAGE 7: PENASQUITO 1 Reserves as of D
Slide 25: Footnotes (cont.)
Footnotes (cont.) PAGE 11: MULATOS AND DOLORES 1 The Company’s royalty is subject to a 2.0 million ounce cap on gold production. There have been approximately 761,000 ounces of cumulative production, as of September 30, 2011. NSR sliding-scale schedule (price of gold per ounce – royalty rate): $0.00
Slide 26: 1660 Wynkoop Street Denver, CO
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com World Class Royalty Company
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