Royal Gold, Inc. · NASDAQ:RGLD
Royal Gold — European Gold Forum 2014
20 slides from Royal Gold's conference presentation, May 2014
Slide 1: May 2014 Presentation
May 2014 Presentation Karli Anderson Vice President Investor Relations
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
Slide 3: Royal Gold – Growing Major Royalty/Stream Company
Royal Gold – Growing Major Royalty/Stream Company Established in 1981 Market Cap – $4.2B (as of 4/28/14) Operating cash flow (Last 12 months) – $155M Over 200 properties with royalties and/or streaming interests: – 37 producing assets – 22 development stage assets 12 straight years of dividend growt
Slide 4: Royal Gold Overview
Royal Gold Overview Embedded Growth – Strong track record of growth – Positioned to grow volume ~50% from Mt. Milligan alone – Recent addition of Rubicon Minerals’ Phoenix project Financially Robust – Mt. Milligan investment complete – Portfolio features projects with attractive average cash costs –
Slide 5: Strong Track Record of Growth
Strong Track Record of Growth May 2014 5
Slide 6: Embedded Growth: Net Gold Equivalent Ounces
Embedded Growth Fully Invested 350 300 Pascua-Lama Net Gold Equivalent Ounces in Thousands ~50% estimated 250 increase from Current Mt. Milligan FY 2013 due to 200 ~180k oz/yr Mt. Milligan alone 150 Other 100 Voisey’s Bay 50 Peñasquito Andacollo 0 FY 2013 1,2 Mt. Milligan 3,4 and Pascua-Lama 5 (Esti
Slide 7: Embedded Growth: Mt. Milligan Stream Agreement Details
Embedded Growth Mt. Milligan Stream Agreement Details Stream: 1 52.25% of payable gold Reserves: 2 6.0M oz (Au) Estimated Mine Life: 22 Years Commercial Production achieved in February 2014 Mt. Milligan Facilities, July 2013 Calendar 2014 guidance 165,000-175,000 oz payable gold production (100% bas
Slide 8: Phoenix Stream Agreement Overview
Phoenix Stream Agreement Overview Investment of $75 million to Rubicon Minerals in five installments – $30 million paid in FQ3, expect to pay balance of $45 million later this year Project Attributes: ‒ High grade operation in final stages of construction Phoenix project, Red Lake, Ontario, October
Slide 9: Phoenix Stream Agreement Details
Phoenix Stream Agreement Details Stream: 6.3% of Au production (until 135,000 ounces); 3.15% thereafter Delivery payment of 25% of spot price at time of delivery LOM projected production: 2.19M oz Phoenix Headframe and ore bin, April 2014 (Au)1 Production start-up: mid-20152 Estimated mine life: 13
Slide 10: Financially Robust: Cash Margin by Operating Property
Financially Robust Cash Margin by Operating Property Calendar Year 2013 80% 70% 60% 50% Weighted Average Cash Margin 49% 40% 30% 20% 10% 0% May 2014 10
Slide 11: Efficient Use of Resources Maximizes Margins
Financially Robust Efficient Use of Resources Maximizes Margins $350 $300 $250 Millions $200 $150 $100 $50 Adjusted EBITDA Margin - 86% of Revenue (12/31/13) $- CY2009 CY2010 CY2011 CY2012 CY2013 Revenue Adjusted EBITDA May 2014 11
Slide 12: Financial Strength
Financial Strength Strong Balance Sheet and Cash Flow in an Attractive Market Liquidity at 3/31/2014 $687M Working Capital $450M Undrawn Credit Debt and $370M convertible Commitments debt 2019 @2.875% * LTM Operating Cash $155.2M Flow $0 $200 $400 $600 $800 $1,000 $1,200 $USD Millions * Includes Com
Slide 13: Attractive Market Environment: Capital Sources Are Limited
Attractive Market Environment Mineral industry sources of capital are limited Capital Raised by Asset Class ($B) 1 400 350 300 250 Proceeds ($B) 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 Loans Bonds Convertibles Follow ons IPOs May 2014 13
Slide 14: Multiple Investment Entry Points
Attractive Market Environment Multiple Investment Entry Points Capital Consuming 1 Capital Generating 2 May 2014 14
Slide 15: Delivering on Growth Objectives
Delivering on Growth Objectives Deliveries from Mt. Milligan continue to grow, new investment with Rubicon Minerals’ Phoenix project Strong balance sheet with over $1.1 billion in liquidity Few near-term commitments for cash flow Growth profile already embedded in the company Attractive market envir
Slide 16: Endnotes
Endnotes World Class Royalty Company <3 Ip ROYALG OLD, INC
Slide 17: Endnotes
Endnotes PAGE 4 ROYAL GOLD OVERVIEW 1. Adjusted EBITDA is defined by the Company as net income plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating income of c
Slide 18: Appendix A: Property Portfolio
Appendix A: Property Portfolio
Slide 19: Diverse Portfolio of Assets
Financially Robust Diverse Portfolio of Assets May 2014 19
Slide 20: Royal Gold Contact Details
1660 Wynkoop Street Denver, CO 80202-1132 303.573.1660 info@royalgold.com www.royalgold.com