Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Bank of America Merrill Lynch 19th Annual Canada Mining Conference (September 2013)
22 slides from Royal Gold's conference presentation, Sep 12, 2013
Slide 1: Bank of America Merrill Lynch 19th Annual Canada Mining Conference
Bank of America Merrill Lynch 19th Annual Canada Mining Conference William Heissenbuttel, Vice President Corporate Development September 12, 2013 Page 1
Slide 2: 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 3: Royal Gold Profile
Royal Gold Profile $3.6B royalty and streaming company US-based, NASDAQ (RGLD) and TSX (RGL) listed Corporate Status: High margin business, low cost profile Robust balance sheet with high levels of uncommitted liquidity Portfolio of long lived, high quality core assets 10+ years of dividend
Slide 4: High Cash Margin Business
High Cash Margin Business All-in-Sustaining Costs (Mining Industry) >$1200 recently Strong Cash Margin Royal Gold Cash Costs< $200 per GEO Source: ScotiaBank $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- 2005 2006 2007 2008 2009 2010 2011 2012 2013 Cash Cost of Operation (per GEO) Produc
Slide 5: Balance Sheet Strength
Balance Sheet Strength US$ 50m Investment Commitment (Tulsequah Chief) US$ 370m US$ 664m Debt Cash and Equivalents 2.875% Interest Rate at June 30, 2013 Due 2019 US$ 350m Credit Facility Availability Page 5
Slide 6: Property Portfolio
Property Portfolio Royalty Interests in Mineral Properties, Net……..…………………………..$2.1B Current Net Reserves Attributable to Royal Gold3……………………6.2M GEO Book Value Per Gold Equivalent Ounce4...………….......................$338/GEO Page 6
Slide 7: Cornerstone Operating Properties
Cornerstone Operating Properties Royalty:1 75% of Au production (NSR) Andacollo Reserves:2 1.8M oz (Au) Est. Mine Life: 20+ Years Est. CY 2013 Production:3 63,000 ozs (Au) Royalty: 2.0% NSR Peñasquito Reserves:2,4 15.7M oz (Au), 912M oz (Ag) Est. Mine Life: 22 Years Est. CY 2013 Production:5 360,000
Slide 8: Growth History
Growth History In 2010, our growth pipeline included many “new” properties including Andacollo, Peñasquito, Holt, Mulatos and Malartic Page 8
Slide 9: "New" Properties in 2010
Growth History Fiscal 2013 Revenue Contribution by Property In 2013, those 100% “New” Properties in 2010 Holt “new” properties 90% Gold Hill contributed over 80% Marigold 70% Inata half of Royal 60% Las Cruces Gold’s total Dolores 50% Malartic revenue 40% Mulatos 30% Wolverine Penasquito 20% Andacol
Slide 10: Growth in Place
Growth in Place Estimated Ounces 350 Net Gold Equivalent Ounces in Thousands 300 Pascua-Lama 250 ~50% estimated Current increase from FY 2013 Mt. Milligan 200 ~180k oz/yr due to Mt. Milligan alone 150 Other 100 Voisey’s Bay 50 Peñasquito Andacollo 0 1 2,3 FY 2013 Mt. Milligan and Pascua-Lama 2,4 (Es
Slide 11: Mt. Milligan Growth Catalyst
Mt. Milligan (Thompson Creek) Growth Catalyst British Columbia, Canada Mine profile: Open pit copper/gold porphyry Reserves:1 6.0M ozs gold Forecast Gold Production2 262,000 ozs of gold annually during first six years; Est. Production:2,3 194,000 ozs of gold annually over life of mine 300 Ounces/Tho
Slide 12: Mt. Milligan Attractive Attributes
Mt. Milligan (Thompson Creek) Attractive Attributes British Columbia, Canada Favorable geographic location Provincial and Federal permits Strong local and regional infrastructure: Low cost power Adequate water Low strip ratio Road, rail and port access Support communities Long mine life Exploration
Slide 13: Mt. Milligan Facilities – July 2013
Mt. Milligan Facilities – July 2013 Adjusted EBITDA ~90% of Revenue 40 Page 13
Slide 14: El Morro
El Morro Latest Addition Region III, Chile Mine profile: Open pit copper/gold porphyry Total project 9.6M oz Au/7.0b lbs Cu reserves:1 NSR royalty: 1.40% NSR Est. mine life:2 18 years Permit suspended pending indigenous Status: community consultation Gray - Estimated outline of reserve pit, source:
Slide 15: Other Portfolio Events
Other Portfolio Events Page 15
Slide 16: Market Conditions Shifting Quickly
Market Conditions Shifting Quickly US High Yield BB Effective Yield3 Operators, explorers and 5.8 5.6 developers facing less 5.4 5.2 favorable equity markets and 5 4.8 4.6 debt markets 4.4 4.2 4 2012 had lowest percentage of mining finance from equity in a decade1 2 Yields increasing for corpora
Slide 17: Gold Market
Gold Market Reported monthly physical demand in Shanghai was recently equivalent to world mining production for the same period US Global Investors Page 17
Slide 18: Valuation
Valuation RGLD Forward EV / EBITDA Average – 17x 30 Current – 13x 25 20 15 10 5 0 Source: Capital iQ Page 18
Slide 19: Royal Gold Positioned for Growth
Royal Gold Positioned for Growth FY Revenue up 10% – on volume up 15% and gold price down 4% Maintained cost and capital allocation discipline Well positioned with $1 billion in available liquidity Acquisition of royalty at El Morro copper gold project Confidence in the long term value of Pascua-Lam
Slide 20: Endnotes
Endnotes Page 20
Slide 21: Endnotes
Endnotes Many of the matters in these endnotes and the accompanying slides constitute forward looking statements and are subject to numerous risks, which could cause actual results to differ. See complete Cautionary Statement on page 2. PAGE 6 PROPERTY PORTFOLIO PAGE 10 GROWTH IN PLACE PAGE 14 EL MO
Slide 22: Royal Gold contact details
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com Page 22