Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — Investor Day (April 2022)
100 slides from Royal Gold's investor day presentation, Apr 20, 2022
Slide 1: Investor Update
Investor Update April 20, 2022
Slide 2: Agenda
Agenda 1. Introduction and Overview Bill Heissenbuttel, President & CEO 2. Inaugural ESG Report Bill Heissenbuttel, President & CEO Randy Shefman, VP and General Counsel 3. Portfolio Update Alistair Baker, VP IR and Business Development, Royal Gold Corp. Mark Isto, EVP and Chief Operating Officer, R
Slide 3: Cautionary Statement
Cautionary Statement 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 future
Slide 4: Introduction and Overview
I ROYALGOLD, INC Introduction and Overview
Slide 5: Company Overview
Company Overview Opportunity to capture value in the precious metals sector without incurring many of the costs and risks associated with mining operations Dual Business Segments… …Across A Diverse, Gold-Focused Portfolio… …With Standout Performance Royalty Interests: 187 12 $654M 360,900 An interes
Slide 6: History of Growing Revenue, Cash Flow and Earnings
History of Growing Revenue, Cash Flow and Earnings Proven business model has been foundation for strong financial performance 9% • RGLD has delivered strong top-line growth; 10-year CAGR of 9% • Key driver for revenue growth coming from gold • Efficient business structure allows for pass-through to
Slide 7: Efficient, Scalable and High Margin Business
Efficient, Scalable and High Margin Business Efficient business model with high operating margin Our business is built on a core of highly qualified individuals, with… • Low G&A expense and highly scalable business • Ability to leverage third party resources when needed 30 1 1 EMPLOYEES2 100% 98% Ad
Slide 8: Business Model Offers Protection Against Cost Inflation
Business Model Offers Protection Against Cost Inflation Royal Gold has limited exposure to operator escalation • Changes in operating and capital costs are absorbed by the mine operator Cost Structure Less Exposed to Variable Inputs • In commodity boom cycles, operator costs tend to US$/oz increase
Slide 9: High Margin Business
High Margin Business Average pre-tax margin for revenue less cost of sales of 85% in 2021 • Stream segment: 77% considering Cost of Goods Sold • Royalty segment: 100% Margins: $436 $338 STREAMS 77% ROYAL GOLD 85% MARGIN ROYALTIES $217 $217 100% 1 Revenue Revenue less Cost of Sales 1. Revenue less Co
Slide 10: Denver-based With Global Reach Across Major Mining Jurisdictions
Denver-based With Global Reach Across Major Mining Jurisdictions Internal organization includes Business Development, Operations, Finance and Legal functional areas Vancouver, Royal Gold Corporation Business Development Royal Gold, Inc. Lucerne, RGLD Gold AG headquarters NASDAQ: RGLD Business Develo
Slide 11: Significant Industry Experience Throughout the Company
Significant Industry Experience Throughout the Company Experienced management team complemented by an independent, diverse and highly-qualified Board of Directors ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 11
Slide 12: Leverage to Gold with Market-Leading Return
Leverage to Gold with Market-Leading Return A stable, sustainable investment… …with a heritage of market outperformance (5/22/06 – 4/12/22) Indexed since the formation of the GDX 5.0 5.13 1.83 Beta vs. Gold Price GDX Providing higher leverage 4.5 RGLD to gold… β Gold 4.0 Spot Gold SP500 3.5 3.48 DJI
Slide 13: Low Correlation to General Markets Provides Diversification Benefit
Low Correlation to General Markets Provides Diversification Benefit Royal Gold also provides diversification benefits, and performed well compared to physical gold, gold equities and general markets during recent periods of general economic and market weakness Year to Date Early 2000s Recession Glob
Slide 14: Royal Gold Current Valuation is Historically Attractive
Royal Gold Current Valuation is Historically Attractive Royal Gold is currently trading at historically attractive P/CF multiple** P / NAV P / CF 2.31x 19.6x 3.5x 60x 3.0x 50x 2.5x 2.31x 40x 2.0x 30x 1.5x 1.0x 20x 19.6x 0.5x 10x 0.0x 0x Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Sep-12 Jan-19
Slide 15: Royal Gold Offers a Consistent, Increasing and Sustainable Dividend
Royal Gold Offers a Consistent, Increasing and Sustainable Dividend Since 2000, Royal Gold shareholders have received a dividend regardless of the gold price, and Royal Gold is the only precious metal company in the S&P High Yield Dividend Aristocrats Index CONSISTENT - INCREASING - SUSTAINABLE US$/
Slide 16: Overview of Inaugural ESG Report
Overview of Inaugural ESG Report
Slide 17: Inaugural ESG Report
Inaugural ESG Report Royal Gold’s inaugural ESG report is available for review and download on our website ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 17
Slide 18: Vision, Mission and Values
Vision, Mission and Values Our vision is to be the Gold Standard in everything we do by operating with a clear mission and core values ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 18
Slide 19: Unique and Self-Directed Approach to ESG Principles
Unique and Self-Directed Approach to ESG Principles ESG is fundamental to our business, but our non-operating model requires a unique approach Numerous frameworks exist, each with certain principles that apply… …but no single framework adequately encapsulated our goals We chose to take the best and
Slide 20: Rigorous Process Identified Five Key ESG Risks
Rigorous Process Identified Five Key ESG Risks Board, management and shareholder perspectives were considered to define the material ESG risks Issues were separated as those key to Royal Gold and those key to our Operators, and organized to reflect where we have direct or indirect influence: Risks a
Slide 21: Royal Gold's ESG Pillars
Royal Gold’s ESG Pillars Four pillars provide a framework that fits Royal Gold’s business model ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 21
Slide 22: Governance and Engagement Creates the Right Culture
Governance and Engagement Creates the Right Culture Leading governance practices promote accountability, open communication and long-term value ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 22
Slide 23: Investment Strategy Incorporates ESG Considerations
Investment Strategy Incorporates ESG Considerations Thorough review of ESG topics in initial due diligence is key for assessing new business opportunities and provides the basis for tailoring agreement provisions ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 23
Slide 24: Stewardship Includes Pro-Active Engagement, Monitoring and Reporting
Stewardship Includes Pro-Active Engagement, Monitoring and Reporting Systematic monitoring and reporting of relevant information is key to understanding portfolio risks and identifying opportunities for further engagement ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 24
Slide 25: Transparency in Disclosure and Reporting
Transparency in Disclosure and Reporting Regular reporting of key metrics provides basis for risk assessment and performance improvements ESG report captures new and valuable reporting metrics Direct Scope 2 GHG Emissions Turnover, Portfolio Retention GHG and Emissions Diversity Portfolio Portfolio
Slide 26: Ratings have Improved with Increased ESG Transparency and Disclosure
Ratings have Improved with Increased ESG Transparency and Disclosure Recent improved disclosure of Royal Gold’s approach to sustainability has materially improved market perception and recognition of leading ESG practices 60 51.9 50 SEVERE RISK 40 RATING HIGH 30 23.4 22.8 MEDIUM 19.1 20 10.5 10 LOW
Slide 27: Portfolio Update
IN ROYALGOLD, INC Portfolio Update
Slide 28: Diverse Portfolio in Established Mining Jurisdictions
Diverse Portfolio in Established Mining Jurisdictions PRINCIPAL PROPERTIES 1 ANDACOLLO 3 Region IV, Chile 3 2 2 CORTEZ Nevada, USA 4 5 3 MOUNT MILLIGAN 4 British Columbia, Canada 5 6 6 4 PEŇASQUITO 7 Zacatecas, Mexico 1 5 PUEBLO VIEJO 1 Sanchez Ramirez, Dominican Republic 43 PRODUCING 6 WASSA 187 18
Slide 29: High Quality and Established Counterparties
High Quality and Established Counterparties ~50% of 2021 revenue was received from some of the Top 20 global mining companies by market value 2021 Revenue Distribution Across Top Counterparties $53M $59M $171M $19M $173M $37M $69M $32M ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 29
Slide 30: Interests in Largest Global Gold Producing Assets
Interests in Largest Global Gold Producing Assets Royal Gold has interests in 4 of the 15 largest gold producing assets in 2021 World’s 15 Largest Gold Producing Assets in 2021 3.5 3.0 Royal Gold holds an interest on asset Gold Production (M oz) 2.5 2.0 1.5 1.0 0.5 0.0 Canadian Malartic Muruntau* Pu
Slide 31: Diverse Portfolio Protects Stable, Predictable and Sustainable Cash Flow
Diverse Portfolio Protects Stable, Predictable and Sustainable Cash Flow Royal Gold’s revenue is sourced from a geographically and operationally diverse portfolio, underpinned by primary precious metals mines • Globally-diverse portfolio minimizes • Principal property revenues • Revenue contribution
Slide 32: Smaller Assets Provide Significant Share of Revenue
Smaller Assets Provide Significant Share of Revenue As a group, lower NAV assets provide revenue diversification and consistency 2021 % of 2021 Revenue Revenue 100% $3.0 M 0.5% Prestea and Bogoso $3.0 M 0.5% Goldstrike $3.2 M 0.5% Wharf Non- Non-principal assets $3.5 M 0.5% Meekatharra 90% $4.6 M 0.
Slide 33: Portfolio Spans the Stages of Project Development
Portfolio Spans the Stages of Project Development Broad range of properties at various stages of development provides potential for organic revenue growth and optionality PROPERTIES CLASSIFICATION COUNT STATUS Khoemacau, King of the Hills, Las Cruces, Mount Milligan, NX Gold, Pueblo Viejo, Rainy Riv
Slide 34: 2022 Guidance
2022 Guidance January 1 – December 31, 2022 Total GEO1 Sales 315,000 – 340,000 GEO Gold 220,000 – 240,000 oz Other Metals 95,000 – 100,000 GEO DD&A $535 – 585 / GEO Effective Tax Rate 17 – 22% This guidance is subject to assumptions as described in the press release titled “Royal Gold Provides 2022
Slide 35: Expected Catalysts in the Portfolio
Expected Catalysts in the Portfolio In production Organic growth opportunities expected to add to portfolio revenue and duration Defined startup date Longer-dated production KHOEMACAU – ramp up to full production targeted by Q4/2022 PUEBLO VIEJO – plant and tailings expansions to maintain production
Slide 36: Khoemacau
Khoemacau Modern and Mechanized Mine Ramping Up Safely to Full Production ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 36
Slide 37: Khoemacau Overview
Khoemacau Overview KHOEMACAU - Botswana Principal Property • Zone 5 mineralization averages 10m width and is largely continuous over 4,200m of strike and 1,200m vertically, where it is open at depth • Mine development at Zone 5 began February 2020, and 1.8-2.0 M first concentrate was produced in Jun
Slide 38: Khoemacau Zone 5 Ramp-Up Progressing Well
Khoemacau Zone 5 Ramp-Up Progressing Well As of March 31, 2022, construction is complete and mining is at ~55% of target 10,000t/d production rate • Ramp-up is proceeding well with significant improvements in stoping and underground ore production rates • The Company remains well-funded through to c
Slide 39: Zone 5 is Expected to Provide a Consistent Production Profile
Zone 5 is Expected to Provide a Consistent Production Profile Single tabular and highly continuous resource provide for a mine plan with a consistent production profile Payable Copper (t) 80 Zone 5 Mineral Reserves & Resources (June 2021) Tonnes Cu grade Ag grade 40 (Mt) (%) (g/t) Resources (inc. of
Slide 40: Zone 5 Orebody Remains Open at Depth
Zone 5 Orebody Remains Open at Depth Current resource limited by surface drilling; higher grade-thickness occurring at depth, indicating potential to grow mineable resource Oblique long Section of Zone 5 deposit looking north, showing copper equivalent 1 Zone 5 ideal for large scale mechanised minin
Slide 41: Detailed Expansion Planning Underway
Detailed Expansion Planning Underway Royal Gold stream AOI provides exposure to expanded Zone 5 throughput and new mine at Mango NE (1) Current Operations production average for the period 2022 to 2041, Expansion is the 10-year average for the period 2026 to 2035 (2) Expansion is inclusive of Curren
Slide 42: Pueblo Viejo
Pueblo Viejo Expanding a World Class Producer ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 42
Slide 43: Expansions Expected to Maintain Production and Extend Mine Life
Expansions Expected to Maintain Production and Extend Mine Life PUEBLO VIEJO - Dom. Rep. Principal Property • Process plant and mine life extension project continues – targets increased throughput to 14M t/yr, a 50% increase, to offset declining gold grade and allow gold production of 800,000 oz/yr
Slide 44: Mount Milligan
Mount Milligan Updated Life of Mine Plan ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 44
Slide 45: Updated Life of Mine Plan Expected Q2 2022
Updated Life of Mine Plan Expected Q2 2022 MT MILLIGAN - Canada Principal Property • 2021 throughput highest since operations began in 2014 • M&I resources increased by 1.4M oz to 2.8M oz gold and 453M lb to 974M lb copper (Dec. 31, 2021 compared to Dec. 31, 2020) 1.8 M oz • 2021 brownfield explorat
Slide 46: Rainy River
Rainy River Transitioning to Underground and Extending the Mine Life ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 46
Slide 47: Updated Technical Report Targets Extended Mine Life
Updated Technical Report Targets Extended Mine Life RAINY RIVER - Canada • Open pit and underground mine located in northwestern Ontario, Canada, which began operations in 2017 • As at Dec. 31, 2021, mineral reserves included 2.8 Moz of gold and 7.0 Moz of silver, M&I resources 1.5 Moz of 2031 gold
Slide 48: Wassa
Wassa New Ownership Investing in Significant Resource Potential ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 48
Slide 49: Wassa PEA Provides Potential for Significant Mine Life Extension
Wassa PEA Provides Potential for Significant Mine Life Extension WASSA - Ghana Principal Property • Chifeng transaction closed Jan. 28, 2022; Chifeng expects to increase investment and accelerate timing of production increases and Southern Extension FS • Southern Extension PEA covers 500m to 1,500m
Slide 50: King of the Hills
King of the Hills Preparing for First Gold Production ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 50
Slide 51: King of the Hills On Track for First Gold Production in Q2 2022
King of the Hills On Track for First Gold Production in Q2 2022 KING OF THE HILLS - Australia • Development continuing and in final stages of construction and commissioning • 16-year mine life, targeted 176k oz/yr production in first 6 years; open pit with underground to provide high-grade 176 k oz/
Slide 52: Côté
Côté Constructing a Large and Long-Life Gold Producer ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 52
Slide 53: Construction Advancing on the Long-Life Côté Gold Project
Construction Advancing on the Long-Life Côté Gold Project CÔTÉ GOLD - Canada • Open pit project owned 92.5% by 70/30 IAMGOLD/ Sumitomo Metal Mining JV, and 7.5% 3rd party • Mining friendly jurisdiction – located 125km southwest 18+ yr of Timmins and 175km north of Sudbury in Ontario, Mine life Canad
Slide 54: Red Chris
Red Chris World Class Resource Transitioning to Long-Life Producer ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 54
Slide 55: Transition Underway to a Multi-Decade Block Cave Operation
Transition Underway to a Multi-Decade Block Cave Operation RED CHRIS - Canada • Open pit mine and underground project owned by the Red Chris JV (70% Newcrest / 30% Imperial Metals); Newcrest is the Operator • Located in the “Golden Triangle” of British Columbia 480M tonnes • Block cave PFS released
Slide 56: Exploration Potential has Grown Significantly Since Royalty Acquisition
Exploration Potential has Grown Significantly Since Royalty Acquisition Newcrest June 30, 2021 update December 31, 2021 update East Ridge Zone 200m high x 100m long x 125 m wide 600m high x 500m long x 125m wide (>0.4 g/t Au, > 0.4% Cu) East Ridge Zone – higher grade - 500m high x 300m long x 100m w
Slide 57: Pre-Feasibility Study Outlines Significant Potential
Pre-Feasibility Study Outlines Significant Potential Initial Probable Ore Reserve: 480Mt @ 0.52g/t Au and 0.45% Cu for 8.1Moz Au and 2.2Mt Cu East Ridge: Significant new discovery which is outside of the initial Mineral Resource estimate: • East Ridge has the potential to increase the Red Chris reso
Slide 58: NX Gold
NX Gold Unlocking Near Mine and Regional Potential ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 58
Slide 59: Exploring Near Mine and Highly Prospective Land Package
Exploring Near Mine and Highly Prospective Land Package NX GOLD - Brazil • Underground mine with significant near-mine and regional exploration potential; 300kt/year mill capacity; expected to remain 25% unutilized despite projected production growth 39-42k oz • Paste-fill plant commissioning conclu
Slide 60: Recent Drill Results from Ero Copper Exploration Technical Session
Recent Drill Results from Ero Copper Exploration Technical Session Source: Ero Copper Exploration Technical Session, March 10, 2022 ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 60
Slide 61: Bellevue Gold
Bellevue Gold High Grade Reserve with Exploration Potential ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 61
Slide 62: Bellevue Gold Project Proceeding to Construction
Bellevue Gold Project Proceeding to Construction BELLEVUE - Australia • Updated Stage 2 FS completed Sept. 2021: • Global resource of 3.0M oz (9.4M t @ 9.9g/t), reserve of 1.04M oz (5.3M t @6.1 g/t) • Plant throughput increased by 33% to 1.0M t/yr 183 k oz/yr • Production of 183,000 oz/yr LOM, 200,0
Slide 63: Bellevue Section with Resource Areas and Targets
Bellevue Section with Resource Areas and Targets Source: Bellevue Gold press release, April 5, 2022 ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 63
Slide 64: Mara Rosa
Mara Rosa New Ownership Advancing to First Production in 2024 ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 64
Slide 65: Hochschild Targeting First Production in 2024
Hochschild Targeting First Production in 2024 MARA ROSA - Brazil • Project acquired by Hochschild Mining plc through acquisition of Amarillo Gold effective April 1, 2022 • Feasibility stage, open pit gold project with construction of certain infrastructure underway, located in Goiás, 80 k oz/yr Braz
Slide 66: Manh Choh
Manh Choh Low-Cost, Satellite Ore Source to Fort Knox Mine ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 66
Slide 67: Manh Choh Project to Provide Satellite Ore to Fort Knox Mine
Manh Choh Project to Provide Satellite Ore to Fort Knox Mine MANH CHOH - Alaska • Estimated production of 1M gold equivalent oz over 4.5 years, with average mined grade of 6 g/t • High-grade, open pit mine with limited pre-strip requirements; ore to be trucked to Fort Knox mill for 1 M oz processing
Slide 68: Back River Project
Back River Project Financing In Place to Fund Construction and Development of the Goose Mine ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 68
Slide 69: Three Year Construction Period with First Gold Expected in Q1 2025
Three Year Construction Period with First Gold Expected in Q1 2025 BACK RIVER - Canada • Updated feasibility study (March 2021) demonstrates longer mine life and increased production profile • Ore sourced from open pit and underground; tailings to be stored in exhausted open pits; 4,000 t/d process
Slide 70: Additional Interests Provide Longer-Term Potential
Additional Interests Provide Longer-Term Potential Asset Operator Location Royal Gold Interest Work Underway Las Cruces First Quantum Spain 1.5% NSR, with M&I Resource • Brownfield underground project with potential for Minerals of 36.24Mt @ 2.51% CuEq >15-year mine life and annual production of 45k
Slide 71: Acquisition of Lawyers Royalty Provides Exposure to Emerging District
Acquisition of Lawyers Royalty Provides Exposure to Emerging District • Royal Gold acquired 0.5% NSR royalty on the Lawyers gold-silver project and ROFO on an existing 2.0% NSR royalty on the Ranch gold-silver project • Located in the “Golden Horseshoe” of British Columbia that hosts deposits includ
Slide 72: Business Development Environment
Business Development Environment
Slide 73: Royalties vs. Streams
Royalties vs. Streams Royal Gold provides flexibility by tailoring financing to fit the needs of the operator Purchase price to acquire royalty PHASE OF PROJECT ROYALTY Partner EXPLORATION DEVELOPMENT PRODUCTION A right to a percentage of revenue or Company metals produced from a project after deduc
Slide 74: Competitive Landscape
Competitive Landscape Royal Gold competes with peers as well as with debt and equity at various times in the cycle Status Status • Attractive terms available for higher • Equity markets remain open but appear to be less robust quality counterparties and assets Debt Equity • Financings concentrated i
Slide 75: Stream and Royalty Financing is Significant
Stream and Royalty Financing is Significant Stream and royalty financing has become a mainstream source of capital to the global mining industry $21.8B Streaming is a flexible product that is relevant throughout the commodity cycle Total Stream Investments by all companies 5% Primarily Balance Prima
Slide 76: Robust Due Diligence Drives Disciplined Approach to Acquisitions
Robust Due Diligence Drives Disciplined Approach to Acquisitions Royal Gold’s due diligence process includes: • Management references • ESG • Technical Due Diligence − Environmental Impact − Geology, reserve/resource • Financial/Credit Analysis − Social license definition − Infrastructure − Communit
Slide 77: Business Development Process – Investment Criteria
Business Development Process – Investment Criteria • Opportunities identified through inbound requests, internal initiatives and cultivating relationships • Opportunity set monitored for changes that may upgrade investment prospect INVESTMENT CRITERIA 1. People, Project and Place i. People – Teams w
Slide 78: Business Development Process – Evaluation and Execution
Business Development Process – Evaluation and Execution Multi-step evaluation and execution process can be completed quickly and efficiently Due Diligence Financial Evaluation Transaction and Ongoing Contract Contract Structuring Management • Technical, ESG, • Recognize commodity • Be creative • Fos
Slide 79: The Review Process Provides for Efficient Screening
The Review Process Provides for Efficient Screening Inquires 100 • Overall number of potential opportunities tends to Idea Generation remain consistent over time Screening Reviews • Screening efficiency is high – those that don’t (10-40 hours) make it to the next stage are dropped quickly 40-60
Slide 80: Portfolio Performance
I ROYALGOLD, INC Portfolio Performance
Slide 81: Capital Invested and Revenue Generated
Capital Invested and Revenue Generated Royal Gold’s portfolio has been built over time and interests are at varying stages of maturity ~$4.5B invested ~$4.3B net revenue1 (2001-2021) 1. – Net revenue includes Cost of Goods Sold for stream investments ROYAL GOLD, INC. | INVESTOR UPDATE | APRIL 2022 8
Slide 82: Investment Horizon is Long and Return Generation Takes Time
Investment Horizon is Long and Return Generation Takes Time Consistent revenue generation over mine lives is an important feature of the royalty & streaming model Cumulative Revenue has surpassed Total • Investment characteristics of the royalty & millions Capital Invested streaming model: $6,000 •
Slide 83: Investment Returns Depend on Upsides to Mine Life
Investment Returns Depend on Upsides to Mine Life “Street” return expectations are not indicative Excess returns come from investing in assets of Royal Gold’s expectations with growth potential • Base return expectations consider quantifiable • Historical growth in contained metal in reserves and pl
Slide 84: Optionality to Reserve and Resource Growth
Optionality to Reserve and Resource Growth Royal Gold seeks to provide exposure to resource growth and metal price optionality. Resource growth and mine life extensions can significantly enhance returns over time. PUEBLO VIEJO WASSA Millions of Gold Ounces5 68% Millions of Gold Ounces of Initial Inv
Slide 85: Optionality Case Study
Optionality Case Study Royal Gold seeks to provide exposure to resource growth and metal price optionality. Resource growth and mine life extensions can significantly enhance returns over time. Case Study Reserves & Resources* Mine Life Contained Gold M oz Years Mulatos – Alamos Gold 2P Reserves • R
Slide 86: Assets with Growth Potential Provide Excess Returns Over Time
Assets with Growth Potential Provide Excess Returns Over Time Royal Gold has a track record of adding value through investing in assets with growth potential • As of March 31, 2022, cash flow received to date and forward Street estimates of stream/royalty net asset values exceed initial investments
Slide 87: Financial Position
I ROYALGOLD, INC Financial Position
Slide 88: Strong Liquidity Position
Strong Liquidity Position • As of December 31, 2021, strong liquidity position provides flexibility to pursue new business opportunities $144M CASH ~$1.2B TOTAL AVAILABLE $1B LIQUIDITY1 Undrawn Credit Facility $1B CREDIT FACILITY 1 – Cash and undrawn credit facility as of December 31, 2021. ROYAL GO
Slide 89: Prioritizing Our Uses Of Capital
Prioritizing Our Uses Of Capital Disciplined capital allocation prioritizes balance sheet, dividends and investment in new business $462 $US M 29% $(200) $(79) $382 2021 59% $144 12% $(21) $(400) Beginning Operating Debt Drawn Dividends Investments Misc. Ending Cash Cash Flow / (Repaid) (Khoemacau C
Slide 90: Share Count is a Key Metric for Royal Gold
Share Count is a Key Metric for Royal Gold • Royal Gold is one of the original members of the VanEck Vectors Gold Miners ETF (“GDX”) and has the lowest share count of all index members 60% GOLD 50% NEM Indexed Share Count (2015=0%) 40% RGLD share count has increased <1% since 2015 30% FNV 20% AEM 10
Slide 91: Liquidity and Financing Strategy
Liquidity and Financing Strategy For >20 years, Royal Gold’s growth has been financed accretively and without significant equity dilution $4.9B Cumulative Revenue Revenue Operating Cash Flow $3.0B Cumulative Operating Cash Flow Cash G&A Expenses $298M Avg. Gold Price Cum. Cash G&A1 Expenses Shares O
Slide 92: Q&A Session
WP reomcowwive Q&A Session
Slide 93: Appendix
I> RoyALGOLD,INC
Slide 94: Non-GAAP Measures
Non-GAAP Measures Non-GAAP Financial Measures and Certain Other Measures Overview of non-GAAP financial measures: Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“GAAP”).
Slide 95: Non-GAAP Measures
Non-GAAP Measures Non-GAAP Financial Measures and Certain Other Measures Overview of non-GAAP financial measures: 4. Free cash flow is a non-GAAP financial measure that is calculated by the Company as net cash provided by operating activities for a period minus acquisition of stream and royalty inte
Slide 96: Non-GAAP Measures
Non-GAAP Measures Reconciliation of non-GAAP financial measures to U.S. GAAP measures Adjusted EBITDA and Net cash to TTM adjusted EBITDA: Tw elve Months Ended Decem ber 31, (In $ thousands, unaudited) 2021 2020 2019 2018 2017 Net income (loss) 274,940 215,334 163,346 -95,092 49,128 Depreciation, de
Slide 97: Non-GAAP Measures
Non-GAAP Measures Reconciliation of non-GAAP financial measures to U.S. GAAP measures (cont.) Cash G&A: Three Months Ended December 31, September 30, June 30, March 31, (amounts in thousands) 2021 2021 2021 2021 General and administrative expense $ 8,034 $ 7,129 $ 7,212 $ 6,932 Non-cash employee sto
Slide 98: Non-GAAP Measures
Non-GAAP Measures Reconciliation of non-GAAP financial measures to U.S. GAAP measures (cont.) Free cash flow: Three Months Ended Six Months Ended December 31, December 31, (amounts in thousands) 2021 2020 2021 2020 Net cash provided by operating activities $ 118,898 $ 99,912 $ 248,783 $ 194,064 Acqu
Slide 99: Other Disclaimers
Other Disclaimers DISCLAIMER STATEMENT FOR USE OF MSCI ESG RATING THE USE BY ROYAL GOLD OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION
Slide 100: Contact
Tel. 303.573.1660 investorrelations@royalgold.com www.royalgold.com