Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Q2 2022 Earnings Presentation
15 slides from Royal Gold's earnings presentation, Aug 4, 2022
Slide 1: Second Quarter 2022 Results
Second Quarter 2022 Results August 4, 2022
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements: This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of futur
Slide 3: Today's Speakers
Today’s Speakers Bill Heissenbuttel Paul Libner Mark Isto Dan Breeze President and CEO CFO and Treasurer Executive VP and COO VP, Corporate Development Royal Gold Corp. RGLD Gold AG ROYAL GOLD, INC. | Q2 2022 RESULTS | AUGUST 4, 2022 3
Slide 4: Q2 2022 Overview
Q2 2022 Overview • Highlights • Revenue of $146.4M • Cash flow from operations of $120.2M • Net income of $71.1M, or $1.08/share • $0.81/share after adjustments1 • Adjusted EBITDA margin of 78%1 • $23.0M dividends paid • Debt free with $280.6M of cash and ~$1.3B total available liquidity • Notable r
Slide 5: Great Bear Royalties Acquisition Meets Royal Gold's Investment Criteria
Great Bear Royalties Acquisition Meets Royal Gold’s Investment Criteria The Great Bear Royalty is a unique opportunity to add an emerging world-class project to the Royal Gold portfolio • Kinross is a reputable and top tier operator with deep technical resources and a strong financial position Peo
Slide 6: Great Bear Royalty adds Long-Term Duration, Scale, Optionality
Great Bear Royalty adds Long-Term Duration, Scale, Optionality NSR royalty provides straightforward life of mine exposure to the entire Great Bear Project 2.0%1 Net Smelter Return royalty: • Life of mine without stepdowns or caps (except for Kinross option1) • Covers entirety of 9,140 ha Great Bear
Slide 7: Cortez Royalty Acquisition Meets Royal Gold's Investment Criteria
Cortez Royalty Acquisition Meets Royal Gold’s Investment Criteria The Cortez Royalty is a world-class royalty interest covering a world-class gold mining complex • Nevada Gold Mines LLC (“NGM”) is a joint venture between Barrick Gold Corporation (“Barrick”) People (61.5% ownership and operator) an
Slide 8: Cortez Complex Royalty Overview
Cortez Complex Royalty Overview Gross royalty provides life of mine exposure to a large, established and prospective mining complex 1.2%1 gross royalty: • Life of mine without stepdowns or caps • Royalty covers areas within the Cortez JV AOI and includes: • Operating mines: Crossroads, Pipeline and
Slide 9: Further Exploration Potential Exists within the Cortez Complex
Further Exploration Potential Exists within the Cortez Complex Excellent potential within Royalty area for new discoveries in both near-mine and regional settings • Near mine targets include: • Strike extensions of Goldrush and Fourmile • Depth potential of repeating stratigraphy • District scale ta
Slide 10: Q2 2022 Revenue
Q2 2022 Revenue GEOs2 of 78,300 and revenue of $146.4 million Royalty Segment Stream Segment $41.6M $104.9M 28% -22% YoY -8% YoY Lower contribution $146.4M Initial contribution from Cortez, from Khoemacau Peñasquito, and NX Gold Voisey’s Bay 72% Lower contribution from Pueblo Viejo and Andacollo ROY
Slide 11: Q2 2022 Financial Results
Q2 2022 Financial Results TOTAL REVENUE AVERAGE REALIZED METAL PRICES Q2 2022 REVENUE BY METAL +3% +1% -14% -15% -2% COMMODITY PRICE VOLUMES* $1,816 $1,871 $26.69 $4.40 $4.31 14% 71% GOLD COPPER $168.0M -13% $22.60 $146.4M 11% SILVER June Q'21** Q2 2022 June Q2'22 June Q2'22 June Q2'22 Q'21** Q'21**
Slide 12: June 30, 2022 Liquidity
June 30, 2022 Liquidity • ~$1.3B of liquidity available at June 30, 2022 • $0M debt drawn as of June 30, 2022 June 30, 2022 Amount (US$ M) Undrawn revolving credit facility 1,000 Working capital 276 Total available liquidity $1,276 • $500M drawn on revolving credit facility July 25, 2022 • ~$260M ca
Slide 13: Recent Transactions Enhance Royal Gold Portfolio
Recent Transactions Enhance Royal Gold Portfolio Our strategic objective is to add high quality precious metals assets with significant growth potential that further strengthen and diversify the Royal Gold portfolio • Since June 30, 2021, Royal Attributes of Recent Acquisitions Enhance Royal Gold Po
Slide 14: Endnotes
Endnotes 1. Adjusted net income, adjusted net income per share and adjusted EBITDA margin are non-GAAP financial measures. See Schedule A to the accompanying press release dated August 3, 2022, for more information. 2. Gold Equivalent Ounces (“GEOs”) are calculated as reported revenue (in total or b
Slide 15: Tel. 303.573.1660 investorrelations@royalgold.com www.royalgold.com
Tel. 303.573.1660 investorrelations@royalgold.com www.royalgold.com