- Gold reserves increase 30% to 64.2 million ounces - Silver reserves increase 16% to 1.2 billion ounces
DENVER, May 20 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a leading precious metals royalty company, today announced updated estimates for ore reserves, additional mineralization, and calendar 2009 production forecasts for its royalty portfolio. Updated reserves, additional mineralization and production estimates, as of December 31, 2008, are provided to the Company by the operators of its royalty properties or have been obtained by Royal Gold through publicly available information.
At the end of calendar 2008, total precious metals reserves subject to the Company's royalty interests include 64.2 million ounces of gold and 1.2 billion ounces of silver. This reflects a net gain of 14.7 million ounces of gold and 167 million ounces of silver, representing a 30 % increase in gold reserves and a 16% increase in silver reserves over the prior calendar year-end.
Tony Jensen, President and Chief Executive Officer, commented, "We are pleased to report significant increases in our precious metal reserves. Our reserve growth is largely a result of the portfolio of royalties we acquired in the Barrick transaction and the on-going successes of our royalty operators in converting additional mineralized material into reserves, particularly at the Penasquito, Cortez, Canadian Malartic and Mulatos properties. This increase reinforces our strategy to identify and acquire royalty properties with significant upside potential that are managed by top-quality operators."
PRINCIPAL PRODUCING PROPERTIES
Summarized below are our principal producing and development properties. The Company considers both historical and future expected revenues in determining which royalties in our portfolio are principal to our business.
Cortez - Pipeline Mining Complex (USA, Nevada)
The Cortez Pipeline Mining Complex is a large surface gold mining operation operated by Barrick. Royal Gold holds four gold royalty interests at Cortez, consisting of two sliding-scale gross smelter return ("GSR") royalties ("GSR1" and "GSR2"), a fixed-rate GSR royalty ("GSR3") and a net value return royalty ("NVR1").
The GSR1 and GSR2 royalty rate is currently 5.0% and covers a majority of the Pipeline, South Pipeline, Crossroads area and a portion of the Gap deposit. The GSR3 royalty rate is fixed at 0.71% for the life of the mine and covers the same area as GSR1 and GSR2 combined, except for the Crossroads deposit. The 0.39% NVR1 royalty covers production from the GAS Claims, an area of interest of approximately 4,000 acres that includes the South Pipeline deposit, but excludes the Pipeline and Crossroads deposits. The Company is currently receiving royalty revenue from all four royalties.
Robinson Mine (USA, Nevada)
Royal Gold holds a 3.0% net smelter return ("NSR") royalty on the Robinson mine, a surface copper mine with significant gold credits. The mine is operated by Quadra Mining Ltd. ("Quadra").
Leeville Mining Complex (USA, Nevada)
Royal Gold holds a 1.8% NSR royalty covering a majority of the underground Leeville Mining Complex. Leeville is operated by Newmont Mining Corporation ("Newmont").
Goldstrike Mine - SJ Claims (USA, Nevada)
Royal Gold holds a 0.9% NSR royalty covering a portion of the Betze-Post gold mine, known as the SJ Claims. The Betze-Post mine, which is part of the larger surface Goldstrike operation, is operated by Barrick Gold Corporation ("Barrick").
Penasquito Mine (Mexico, Zacatecas)
Royal Gold holds a 2.0% NSR royalty on all metals produced from the Penasquito project operated by Goldcorp Inc. ("Goldcorp"). The Penasquito project, a surface mine composed of two main deposits called Penasco and Chile Colorado, hosts one of the world's largest gold, silver, and zinc reserves, while also containing large lead reserves. Production commenced in June 2008 from the oxide portion of the deposit. Start-up of the first sulfide circuit is scheduled to begin in the second half of calendar 2009 with production from the second sulfide circuit commencing in the second half of calendar 2010.
Mulatos Mine (Mexico, Sonora)
Royal Gold holds a 1.0% - 5.0% NSR sliding-scale royalty, currently paying at 5.0%. Mulatos is a surface gold mine operated by Alamos Gold Inc. ("Alamos"). The royalty is capped at two million ounces of gold production. As of March 31, 2009, approximately 370,000 cumulative ounces of gold have been produced.
Taparko Mine (West Africa, Burkina Faso)
Royal Gold holds two initial concurrent production payments, both equivalent to GSR royalties, and two subsequent GSR royalties at the Taparko-Bouroum project, a surface gold operation. The project is operated by High River Gold Mines Ltd. ("High River").
The first GSR-equivalent royalty ("TB-GSR1") is fixed at a rate of 15.0%. The second GSR-equivalent royalty ("TB-GSR2") is a sliding-scale royalty ranging from 0.0% to 10.0%, depending upon the price of gold. The TB-GSR2 royalty pays out at a rate of 4.3% when the average monthly gold price ranges between $385 and $430 per ounce. Outside of this range, the royalty rate is calculated by dividing the average monthly gold price by 100 for gold prices above $430 per ounce, or by dividing the average monthly gold price by 90 for gold prices below $385 per ounce (e.g., a $900 per ounce gold price results in a rate of 900/100 = 9.0%). Both TB-GSR1 and TB-GSR2 continue until either total production reaches 804,420 ounces of gold, or Royal Gold receives payments totaling $35 million under TB-GSR1, whichever occurs first. As of March 31, 2009, the Company has recognized revenue totaling $8.8 million on production of 67,000 ounces of gold.
The two subsequent royalties consist of a 2.0% GSR perpetual royalty ("TB-GSR3"), applicable to gold production from defined portions of the Taparko-Bouroum project area, and a 0.75% GSR milling royalty ("TB-MR1"). The TB-MR1 applies to ore that is mined outside of the defined area of the Taparko-Bouroum project that is processed through the Taparko facilities, up to a maximum of 1.1 million tons per year. Both the TB-GSR3 and TB-MR1 royalties commence once TB-GSR1 and TB-GSR2, described earlier, have ceased.
Siguiri (West Africa, Guinea)
Royal Gold holds a 0.0% - 1.875% NSR sliding-scale royalty currently paying 1.875%. Siguiri is a surface gold mine operated by AngloGold Ashanti ("AngloGold"). The royalty is subject to a dollar cap of approximately $12.0 million. As of March 31, 2009, approximately $9.3 million remains under the cap.
Dolores (Mexico, Chihuahua)
Royal Gold holds a 1.25% NSR on gold and a 2.0% NSR on both gold and silver production from the Dolores project, a surface gold and silver mine operated by Minefinders Corporation Ltd. ("Minefinders"). Initial production and associated royalty revenue from the 1.25% NSR royalty commenced in the fourth quarter of calendar 2008. On May 1, 2009, the 2.0% NSR royalty on both gold and silver became effective.
KEY DEVELOPMENT STAGE PROPERTIES Pascua-Lama (Chile, Region III)
Royal Gold holds a 0.16% - 1.08% sliding-scale NSR royalty on the Pascua-Lama project. Pascua-Lama is owned by Barrick. The NSR royalty is applicable to all gold production from an area of interest in Chile. Royal Gold also holds a 0.216% fixed-rate copper royalty which applies to all of the copper reserves in Chile within the area of interest, but does not take effect until after January 1, 2017.
On May 7, 2009, Barrick announced that it is proceeding to construction with the Pascua-Lama project, and that it has finalized the project's economic parameters, received key construction permits, and satisfactorily resolved key outstanding fiscal matters with the governments of Chile and Argentina. Commissioning is expected in late 2012 and production in early 2013.
Canadian Malartic (Canada, Quebec)
Royal Gold holds a 2.0% - 3.0% sliding-scale NSR royalty on the Canadian Malartic gold project owned by Osisko Mining Corporation ("Osisko"). The NSR royalty is subject to a buy down right of $1.0 - $1.5 million depending upon the price of gold, and is exercisable at any time for one half of the royalty. Osisko is currently developing the Canadian Malartic gold deposit as a large-scale surface mining operation.
OTHER DEVELOPMENTS Benso (Ghana, Western Region)
In October 2007, Royal Gold purchased a 1.5% NSR royalty on the Benso gold concession from FairWest Energy Corporation for $1.875 million. Benso is located in Ghana and operated by Golden Star Resources Ltd ("Golden Star"). The royalty was subject to a buy back right by Golden Star for Cdn$4.0 million (US$3.4 million). Golden Star exercised its right to repurchase the royalty in May 2009. Since production at the property commenced in August 2008, Royal Gold has received $1.0 million in royalty revenue.
RESERVE AND PRODUCTION INFORMATION
The attached Tables contain information regarding the reserves, additional mineralization, and production for all of the Company's producing and development properties. Tables 1 and 2 show all of our royalty interests with associated reserves and additional mineralized material and are organized by metal and geographic location. Our royalty interests represent only a percentage interest in the reserves and production described in the attached tables. Those percentage interests are based on the terms of the royalty interests applicable to the properties. For further information about our royalty interests, please see our Annual Report on Form 10-K, as well as our other public reports.
CORPORATE PROFILE
Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company owns royalties on 117 properties on five continents, including royalties on 27 producing mines and 9 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD" and on the Toronto Stock Exchange under the symbol "RGL." The Company's website is located at www.royaltygold.com.
Cautionary "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements regarding the on-going success of Royal Gold's royalty operators in converting additional mineralized material into reserves; the Company's strategy to identify and acquire royalty properties with significant upside potential that are managed by top-quality operators; production estimates for calendar 2009 provided by third-party operators; reserves and additional mineralization estimates provided by or derived from information provided by third party operators; the sliding-scale features of our royalty structure at certain of our properties; or commencement of production or construction from the operators of certain properties; and the expectation of the royalty payment caps at the Troy and Taparko mines to be met. Like any royalty on a non-producing or not yet in development project, our royalties on development projects are subject to certain risks, such as the ability of the operators to bring the projects into production and operate in accordance with their feasibility studies and the ability of Royal Gold to make accurate assumptions regarding valuation and timing and amount of royalty payments. In addition, many of our royalty interests are subject to risks associated with conducting business in a foreign country, including application of foreign laws to contract and other disputes, foreign environmental laws and enforcement and uncertain political and economic environments. Factors that could cause actual results to differ materially include, among others, changes in precious metals prices, performance of and production at our royalty properties, decisions and activities of the operators of our royalty properties, mine completion, unanticipated grade, geological, metallurgical, processing or other problems the operators of the mining properties may encounter, changes in project parameters as plans continue to be refined, economic and market conditions, and future financial needs of our operators, as well as other factors described elsewhere in this press release and in our Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. These factors are beyond the Company's ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.
TABLE 1
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves (1),(2),(3)
as of December 31, 2008 (4),(5)
Mines are in production unless noted as development ("DEV")
PROVEN RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Bald 1.75 -
Moun- 3.5% USA,
tain(8) NSR Barrick Nevada - - -
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR1 GSR Barrick Nevada 3.80 0.095 0.360
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR2 GSR Barrick Nevada 8.29 0.038 0.312
Cortez (Pipe- line) 0.71% USA, GSR3 GSR Barrick Nevada 5.48 0.076 0.414
Cortez (Pipe- line) 0.39% USA, NVR1 NVR Barrick Nevada 3.69 0.047 0.173
Gold 1.0 - Hill 2.0% Kinross/ USA, (DEV) NSR Barrick Nevada 0.28 0.013 0.004
Gold- 0.9% USA, strike(8) NSR Barrick Nevada - - -
Lee- 1.8% USA, ville(8) NSR Newmont Nevada - - -
Mari- gold(10) 2.0% Goldcorp/ USA, (DEV) NSR Barrick Nevada 11.75 0.021 0.251
Robinson 3.0% USA,
NSR Quadra Nevada 130.04 0.007 0.884
Twin 2.0% USA, Creeks(8) GPR Newmont Nevada - - -
PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Bald 1.75 -
Moun- 3.5% USA,
tain(8) NSR Barrick Nevada - - -
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR1 GSR Barrick Nevada 24.14 0.051 1.227
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR2 GSR Barrick Nevada 74.65 0.032 2.362
Cortez (Pipe- line) 0.71% USA, GSR3 GSR Barrick Nevada 41.32 0.039 1.619
Cortez (Pipe- line) 0.39% USA, NVR1 NVR Barrick Nevada 38.46 0.037 1.419
Gold 1.0 - Hill 2.0% Kinross/ USA, (DEV) NSR Barrick Nevada 31.08 0.015 0.459
Gold- 0.9% USA, strike(8) NSR Barrick Nevada - - -
Lee- 1.8% USA, ville(8) NSR Newmont Nevada - - -
Mari- gold(10) 2.0% Goldcorp/ USA, (DEV) NSR Barrick Nevada 23.89 0.018 0.433
Robinson 3.0% USA,
NSR Quadra Nevada 4.10 0.005 0.021
Twin 2.0% USA, Creeks(8) GPR Newmont Nevada - - -
PROVEN + PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Bald 1.75 -
Moun- 3.5% USA,
tain(8) NSR Barrick Nevada 27.45 0.026 0.720
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR1 GSR Barrick Nevada 27.94 0.057 1.587(9)
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR2 GSR Barrick Nevada 82.95 0.032 2.674(9)
Cortez (Pipe- line) 0.71% USA, GSR3 GSR Barrick Nevada 46.79 0.043 2.033(9)
Cortez (Pipe- line) 0.39% USA, NVR1 NVR Barrick Nevada 42.15 0.038 1.592(9)
Gold 1.0 - Hill 2.0% Kinross/ USA, (DEV) NSR Barrick Nevada 31.37 0.015 0.463
Gold- 0.9% USA, strike(8) NSR Barrick Nevada 47.82 0.121 5.768
Lee- 1.8% USA, ville(8) NSR Newmont Nevada 7.68 0.328 2.518
Mari- gold(10) 2.0% Goldcorp/ USA, (DEV) NSR Barrick Nevada 35.63 0.019 0.683
Robinson 3.0% USA,
NSR Quadra Nevada 134.14 0.007 0.905
Twin 2.0% USA, Creeks(8) GPR Newmont Nevada - - 0.080
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves (1),(2),(3)
as of December 31, 2008 (4),(5)
Mines are in production unless noted as development ("DEV")
PROVEN RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Wharf(11) 0.0 -
2.0% USA,
NSR Goldcorp S. Dakota 11.61 0.023 0.270
Canadian Malartic 2.0 - (8),(12) 3.0% Osisko Canada, (DEV) NSR Mining Quebec - - -
St. Holt- 0.00013 Andrew Holloway x Gold Gold- Canada, (13)(DEV) Price fields Ontario 0.11 0.187 0.021
New Island
Resources/
Pine Cove 7.5% Anaconda Canada,
(DEV) NPI Mining Newfoundland 0.00 0.000 0.000
Williams 0.72% Canada,
NSR Barrick Ontario 7.78 0.073 0.567
Dolores 1.25%
(14) NSR
2.0% Mine- Mexico,
NSR(15) finders Chihuahua 62.42 0.023 1.454
El 2.0 - Chanate 4.0% Capital Mexico, (16) NSR Gold Sonora 23.03 0.023 0.519
Mulatos 1.0 -
(17) 5.0% Mexico,
NSR Alamos Sonora 13.01 0.050 0.649
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 63.71 0.006 0.360
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 618.62 0.018 11.390
PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Wharf(11) 0.0 -
2.0% USA,
NSR Goldcorp S. Dakota 1.39 0.022 0.030
Canadian Malartic 2.0 - (8),(12) 3.0% Osisko Canada, (DEV) NSR Mining Quebec - - -
St. Holt- 0.00013 Andrew Holloway x Gold Gold- Canada, (13)(DEV) Price fields Ontario 2.84 0.164 0.466
New Island
Resources/
Pine Cove 7.5% Anaconda Canada,
(DEV) NPI Mining Newfoundland 2.57 0.081 0.207
Williams 0.72% Canada,
NSR Barrick Ontario 1.80 0.103 0.185
Dolores 1.25%
(14) NSR
2.0% Mine- Mexico,
NSR(15) finders Chihuahua 47.04 0.021 0.990
El 2.0 - Chanate 4.0% Capital Mexico, (16) NSR Gold Sonora 24.52 0.020 0.395
Mulatos 1.0 -
(17) 5.0% Mexico,
NSR Alamos Sonora 39.52 0.035 1.397
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 137.40 0.003 0.430
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 493.53 0.011 5.250
PROVEN + PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Wharf(11) 0.0 -
2.0% USA,
NSR Goldcorp S. Dakota 13.00 0.023 0.300
Canadian Malartic 2.0 - (8),(12) 3.0% Osisko Canada, (DEV) NSR Mining Quebec 150.56 0.031 4.727
St. Holt- 0.00013 Andrew Holloway x Gold Gold- Canada, (13)(DEV) Price fields Ontario 2.95 0.165 0.487
New Island
Resources/
Pine Cove 7.5% Anaconda Canada,
(DEV) NPI Mining Newfoundland 2.57 0.081 0.207
Williams 0.72% Canada,
NSR Barrick Ontario 9.57 0.079 0.752
Dolores 1.25%
(14) NSR
2.0% Mine- Mexico,
NSR(15) finders Chihuahua 109.46 0.022 2.444
El 2.0 - Chanate 4.0% Capital Mexico, (16) NSR Gold Sonora 47.55 0.022 0.913
Mulatos 1.0 -
(17) 5.0% Mexico,
NSR Alamos Sonora 52.53 0.039 2.046
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 201.11 0.004 0.800
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 1,112.15 0.015 16.630
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves (1),(2),(3)
as of December 31, 2008 (4),(5)
Mines are in production unless noted as development ("DEV")
PROVEN RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Don Mario Bolivia, (8),(19) 3.0% Chiquitos (LMZ) NSR Orvana Province - - -
El Limon 3.0% Nicaragua,
NSR B2Gold El Limon 0.08 0.157 0.012
El Toqui 1.0 -
3.0% Break- Chile,
(20) NSR water Region XI 0.73 0.105 0.077
Argentina,
Martha 2.0% Coeur Santa Cruz
NSR d'Alene Province 0.02 0.07 0.001
Pascua- 0.16 - Lama(21) 1.08% Chile, (DEV) NSR Barrick Region III 36.10 0.053 1.917
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 0.35 0.020 0.007
Meeka- tharra A$10.00 (23) per (Paddy's gold Australia, Flat) ounce Mercator Western (DEV) produced Gold Australia 0.00 0.000 0.000
Siguiri 0.0 - Anglo- West
(24) 1.875% gold Africa,
NSR Ashanti Guinea 61.87 0.016 1.010
PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Don Mario Bolivia, (8),(19) 3.0% Chiquitos (LMZ) NSR Orvana Province - - -
El Limon 3.0% Nicaragua,
NSR B2Gold El Limon 1.20 0.135 0.162
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 2.95 0.070 0.207
Argentina,
Martha 2.0% Coeur Santa Cruz
NSR d'Alene Province 0.06 0.04 0.002
Pascua- 0.16 - Lama(21) 1.08% Chile, (DEV) NSR Barrick Region III 288.60 0.044 12.698
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.44 0.008 0.019
Meeka- tharra A$10.00 (23) per (Paddy's gold Australia, Flat) ounce Mercator Western (DEV) produced Gold Australia 2.19 0.140 0.308
Siguiri 0.0 - Anglo- West
(24) 1.875% gold Africa,
NSR Ashanti Guinea 73.98 0.030 2.240
PROVEN + PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Don Mario Bolivia, (8),(19) 3.0% Chiquitos (LMZ) NSR Orvana Province 0.21 0.290 0.060
El Limon 3.0% Nicaragua,
NSR B2Gold El Limon 1.28 0.136 0.174
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 3.68 0.077 0.284
Argentina,
Martha 2.0% Coeur Santa Cruz
NSR d'Alene Province 0.08 0.04 0.003
Pascua- 0.16 - Lama(21) 1.08% Chile, (DEV) NSR Barrick Region III 324.70 0.045 14.615
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.79 0.009 0.026
Meeka- tharra A$10.00 (23) per (Paddy's gold Australia, Flat) ounce Mercator Western (DEV) produced Gold Australia 2.19 0.140 0.308
Siguiri 0.0 - Anglo- West
(24) 1.875% gold Africa,
NSR Ashanti Guinea 135.85 0.024 3.250
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Gold Reserves (1),(2),(3)
as of December 31, 2008 (4),(5)
Mines are in production unless noted as development ("DEV")
PROVEN RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Taparko
(25) 15.0% GSR West
TB-GSR1 and 0.0 - Africa,
and 10.0% High Burkina
TB-GSR2 GSR River Faso - - -
West Taparko Africa, (25) 2.0% High Burkina TB-GSR3 GSR River Faso - - -
PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Taparko
(25) 15.0% GSR West
TB-GSR1 and 0.0 - Africa,
and 10.0% High Burkina
TB-GSR2 GSR River Faso - - -
West Taparko Africa, (25) 2.0% High Burkina TB-GSR3 GSR River Faso - - -
PROVEN + PROBABLE RESERVES
Avg. Gold
Tons of Gold Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Taparko
(25) 15.0% GSR West
TB-GSR1 and 0.0 - Africa,
and 10.0% High Burkina
TB-GSR2 GSR River Faso 3.09 0.085 0.262(26),(27)
West Taparko Africa, (25) 2.0% High Burkina TB-GSR3 GSR River Faso 6.42 0.085 0.544
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Silver Reserves (1),(2),(3)
as of December 31, 2008 (5),(28)
Mines are in production unless noted as development ("DEV")
PROVEN RESERVES
Avg. Silver
Tons of Silver Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Troy(25) 7.0%
GSR(29)
6.1%
GSR(29)
2.0% USA,
GSR(29) Revett Montana - - -
Dolores 2.0% Mine- Mexico, (14) NSR(15) finders Chihuahua 62.42 1.18 73.415
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 63.71 0.54 34.300
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 618.62 0.99 611.500
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 0.73 0.15 0.106
Argentina,
Martha 2.0% Coeur Santa Cruz
NSR d'Alene Province 0.02 55.86 0.992
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 0.35 1.87 0.654
PROBABLE RESERVES
Avg. Silver
Tons of Silver Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Troy(25) 7.0%
GSR(29)
6.1%
GSR(29)
2.0% USA,
GSR(29) Revett Montana - - -
Dolores 2.0% Mine- Mexico, (14) NSR(15) finders Chihuahua 47.04 1.13 53.230
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 137.40 0.28 37.800
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 493.53 0.73 362.100
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 2.95 0.38 1.121
Argentina,
Martha 2.0% Coeur Santa Cruz
NSR d'Alene Province 0.06 31.22 1.817
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.44 0.41 1.003
PROVEN + PROBABLE RESERVES
Avg. Silver
Tons of Silver Contained
Ore Grade Ozs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Troy(25) 7.0%
GSR(29) 0.48 1.19 0.569(30)
6.1%
GSR(29) 1.72 1.19 2.046
2.0% USA,
GSR(29) Revett Montana 0.98 1.19 1.164
Dolores 2.0% Mine- Mexico, (14) NSR(15) finders Chihuahua 109.46 1.16 126.645
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 201.11 0.36 72.100
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 1,112.15 0.88 973.600
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 3.68 0.33 1.227
Argentina,
Martha 2.0% Coeur Santa Cruz
NSR d'Alene Province 0.08 36.96 2.809
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.79 0.59 1.657
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Base Metal Reserves (1),(2),(3)
as of December 31, 2008 (5)
Mines are in production unless noted as development ("DEV")
COPPER (31)
PROVEN RESERVES
Avg. Copper
Tons of Copper Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Cu) (millions)
Robinson 3.0% USA,
NSR Quadra Nevada 130.04 0.55 1,420
Troy(25) 7.0%
GSR(29)
6.1%
GSR(29)
2.0% USA,
GSR(29) Revett Montana - - -
El Toqui 1.0 - Break- Chile,
(20) 3.0% water Region XI 0.00 0.00 0
NSR
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 0.35 1.30 9
PROBABLE RESERVES
Avg. Copper
Tons of Copper Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Cu) (millions)
Robinson 3.0% USA,
NSR Quadra Nevada 4.10 0.42 35
Troy(25) 7.0%
GSR(29)
6.1%
GSR(29)
2.0% USA,
GSR(29) Revett Montana - - -
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 2.95 0.10 6
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.44 3.05 149
PROVEN + PROBABLE RESERVES
Avg. Copper
Tons of Copper Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Cu) (millions)
Robinson 3.0% USA,
NSR Quadra Nevada 134.14 0.54 1,455
Troy(25) 7.0%
GSR(29) 0.44 0.57 5(30)
6.1%
GSR(29) 1.50 0.57 17
2.0% USA,
GSR(29) Revett Montana 2.38 0.57 27
El Toqui 1.0 -
(20) 3.0% Break- Chile, 2.95 0.10 6
NSR water Region XI
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.79 2.83 158
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Base Metal Reserves (1),(2),(3)
as of December 31, 2008 (5)
Mines are in production unless noted as development ("DEV")
ZINC (32)
PROVEN RESERVES
Avg. Zinc
Tons of Zinc Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Zn) (millions)
Penasquito
(18)
(Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 618.62 0.77 9,587
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 0.73 7.30 106
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 0.35 7.20 50
PROBABLE RESERVES
Avg. Zinc
Tons of Zinc Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Zn) (millions)
Penasquito
(18)
(Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 493.53 0.59 5,776
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 2.95 7.10 419
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.44 0.43 21
PROVEN + PROBABLE RESERVES
Avg. Zinc
Tons of Zinc Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Zn) (millions)
Penasquito
(18)
(Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 1,112.15 0.69 15,364
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 3.68 7.14 525
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.79 1.28 71
LEAD (33)
PROVEN RESERVES
Avg. Lead
Tons of Lead Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Pb) (millions)
Penasquito
(18)
(Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 618.62 0.36 4,437
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 0.73 0.20 3
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 0.35 2.60 18
PROBABLE RESERVES
Avg. Lead
Tons of Lead Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Pb) (millions)
Penasquito
(18)
(Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 493.53 0.27 2,633
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 2.95 0.50 30
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.44 0.19 9
PROVEN + PROBABLE RESERVES
Avg. Lead
Tons of Lead Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Pb) (millions)
Penasquito
(18)
(Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 1,112.15 0.32 7,070
El Toqui 1.0 -
(20) 3.0% Break- Chile,
NSR water Region XI 3.68 0.44 33
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.79 0.49 27
TABLE 1 (cont.)
Royal Gold's Royalty Portfolio
Proven and Probable Base Metal and Other Reserves (1),(2),(3)
as of December 31, 2008 (5)
Mines are in production unless noted as development ("DEV")
NICKEL (34)
PROVEN RESERVES
Avg. Nickel
Tons of Nickel Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Ni) (millions)
Mt. Goode Australia,
(8) 1.5% Western
(Cosmos) NSR Xstrata Australia - - -
PROBABLE RESERVES
Avg. Nickel
Tons of Nickel Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Ni) (millions)
Mt. Goode Australia,
(8) 1.5% Western
(Cosmos) NSR Xstrata Australia - - -
PROVEN + PROBABLE RESERVES
Avg. Nickel
Tons of Nickel Contained
Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Ni) (millions)
Mt. Goode Australia,
(8) 1.5% Western
(Cosmos) NSR Xstrata Australia 1.21 4.12 101
POTASH (35)
PROVEN RESERVES
Finished
Product
Tons of Avg. Contained
Ore K20 Tons(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) Grade (millions)
Allan(36), $0.36 - Potash
(37) $1.44 per Corp-
ton and oration
$0.25/ton of Canada,
Saskat- Saskat-
chewan chewan - - -
PROBABLE RESERVES
Finished
Product
Tons of Avg. Contained
Ore K20 Tons(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) Grade (millions)
Allan(36), $0.36 - Potash
(37) $1.44 per Corp-
ton and oration
$0.25/ton of Canada,
Saskat- Saskat-
chewan chewan - - -
PROVEN + PROBABLE RESERVES
Finished
Product
Tons of Avg. Contained
Ore K20 Tons(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) Grade (millions)
Allan(36), $0.36 - Potash
(37) $1.44 per Corp-
ton and oration
$0.25/ton of Canada,
Saskat- Saskat-
chewan chewan 361.55 25.90 n/a
(1) Set forth below are the definitions of proven and probable reserves
used by the U.S. Securities and Exchange Commission.
"Reserve" is that part of a mineral deposit which could be
economically and legally extracted or produced at the time of the
reserve determination.
"Proven (Measured) Reserves" are reserves for which (a) quantity is
computed from dimensions revealed in outcrops, trenches, workings or
drill holes, and the grade is computed from the results of detailed
sampling, and (b) the sites for inspection, sampling and measurement
are spaced so closely and the geologic character is so well defined
that the size, shape, depth and mineral content of the reserves are
well established.
"Probable (Indicated) Reserves" are reserves for which the quantity
and grade are computed from information similar to that used for
proven (measured) reserves, but the sites for inspection, sampling
and measurement are farther apart or are otherwise less adequately
spaced. The degree of assurance of probable (indicated) reserves,
although lower than that for proven (measured) reserves, is high
enough to assume geological continuity between points of observation.
(2) Royal Gold has disclosed a number of reserve estimates that are
provided by royalty operators that are foreign issuers and are not
based on the U.S. Securities and Exchange Commission's definitions
for proven and probable reserves. For Canadian issuers, definitions
of "mineral reserve," "proven mineral reserve," and "probable mineral
reserve" conform to the Canadian Institute of Mining, Metallurgy and
Petroleum definitions of these terms as of the effective date of
estimation as required by National Instrument 43-101 of the Canadian
Securities Administrators. For Australian issuers, definitions of
"mineral reserve," "proven mineral reserve," and "probable mineral
reserve" conform with the Australasian Code for Reporting of Mineral
Resources and Ore Reserves prepared by the Joint Ore Reserves
Committee of the Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of
Australia, as amended ("JORC Code").
(3) The reserves reported are either estimates received by the various
operators or are based on royalty documentation material provided to
Royal Gold or which is derived from recent publicly-available
information from the operators of the various properties or various
recent National Instrument 43-101 or JORC Code reports filed by
operators. Accordingly, Royal Gold is not able to reconcile the
reserve estimates prepared in reliance on National Instrument 43-101
or JORC Code with definitions of the U.S. Securities and Exchange
Commission.
(4) Gold reserves were calculated by the operators at the following per
ounce prices: $800 - Robinson and Taparko; $775 - Canadian Malartic
and Holt-Holloway; $750 - El Chanate, Don Mario, Martha and Williams;
$725 - Bald Mountain, Cortez (Pipeline Mining Complex), Gold Hill;
Goldstrike, Leeville, Marigold, Pasca-Lama, Penasquito, Twin Creeks
and Wharf; $720 - Siguiri; $700 - Mulatos; $600 - Dolores and El
Toqui; $550 - El Limon, and $425 - Pine Cove. No gold price is
reported for Balcooma and Meekatharra.
(5) Reserves have been reported by the operators as of December 31, 2008,
with the exception of the following properties: Dolores - March 25,
2008; Balcooma - June 30, 2008; Don Mario - September 30, 2008; Mt.
Goode - October 31, 2008; and Pine Cove - March 18, 2005.
(6) See royalty definitions on page 27.
(7) "Contained ounces" or "contained pounds" do not take into account
recovery losses in processing the ore.
(8) The operators at Allan, Bald Mountain, Canadian Malartic, Don Mario,
Goldstrike, Leeville, Mt. Goode and Twin Creeks did not provide a
breakdown of proven and probable reserves.
(9) NVR1 and GSR3 reserves are subsets of the reserves covered by GSR1
and GSR2 reserves.
(10) The 2.0% NSR royalty interest covers the majority of six sections of
land, containing a number of open pits, but does not cover the
current mining in the Basalt/Antler area.
(11) NSR sliding-scale schedule (price of gold per ounce - royalty rate):
$0.00 to under $350 - 0.0%; $350 to under $400 - 0.5%; $400 to under
$500 - 1.0%; $500 or higher - 2.0%.
(12) Royalty is subject to a buy down right of $1.0 - $1.5 million
depending on the price of gold, exercisable at any time, for one-
half of the royalty. NSR sliding-scale schedule (price of gold per
ounce - royalty rate): $0.00 - $350 - 2.0%; above $350 - 3.0%.
(13) Royalty applies on production above 400,000 ounces. In November
2008, the operator made application to a court in Ontario, Canada
for a declaration that it is not obligated to pay the entire royalty
defined under the royalty agreement and to dispute the royalty rate.
The operator claims that its predecessor in interest is responsible
for payment of some or all of the royalty.
(14) Dolores reserve numbers have not been updated since material was
used for late 2008 commissioning activities.
(15) The 2.0% royalty became effective on May 1, 2009.
(16) The NSR sliding-scale royalty is capped once payments of
approximately $17 million have been received. As of March 31, 2009,
payments of $1.8 million for the sliding-scale NSR royalty have been
recognized.
(17) The Company's royalty is subject to a 2.0 million ounce cap on gold
production. There have been approximately 370,000 ounces of
cumulative production, as of March 31, 2009. NSR sliding-scale
schedule (price of gold per ounce - royalty rate): $0.00 to $299.99
- 1.0%; $300 to $324.99 - 1.50%; $325 to $349.99 - 2.0%; $350 to
$374.99 - 3.0%; $375 to $399.99 - 4.0%; $400 or higher - 5.0%.
(18) Operator reported reserve estimates by material types. The sulfide
material will be processed by milling. The oxide material will be
processed using heap leaching.
(19) The Don Mario reserves are contained in the lower mineralized zone
("LMZ"). The upper mineralized zone ("UMZ") is currently the subject
of a feasibility study which is not yet public.
(20) NSR sliding-scale schedule (price of zinc per ounce - royalty rate):
$0.50 to below $0.55 - 1.0%; $0.55 to below $0.60 - 2.0%; $0.60 or
higher - 3.0%. Gold is produced as a by-product of zinc. The
royalty is currently held in trust by Barrick for Royal Gold pending
receipt of necessary consents and assignments.
(21) Royalty applies to all gold production from an area of interest in
Chile. Only that portion of the reserves pertaining to our royalty
interest in Chile is reflected here.
(22) A portion of the reported reserves may not be subject to Royal
Gold's royalty interests.
(23) Royalty applies on production above 50,000 ounces.
(24) The royalty is capped on a dollar basis and approximately $9.3
million remains unrecognized as of March 31, 2009. NSR sliding-
scale schedule (price of gold per ounce - royalty rate as of
3/31/09): $0.00 to $478.10 - 0.0%; $478.10 to $546.41 - 0.625%;
$546.42 to $580.57 - 0.875%; $580.58 to $614.72 - 1.125%; $614.73 to
$648.87 - 1.50%; above $648.87 - 1.875%. The sliding-scale schedule
is based on the average of the United States, Australian and
Canadian Consumer Price Indices on a quarterly basis. The most
current rate available is reflected herein.
(25) Due to the royalty structure at the Taparko and Troy mines, reserves
cannot be broken down into proven and probable.
(26) TB-GSR1 and TB-GSR2 royalties are subject to the same reserve.
(27) The reserves at Taparko have been adjusted by Royal Gold based on
actual 2008 depletion and on the operator's reserve gold price
assumption of $800 per ounce, to reflect the $35 million cap on the
TB-GSR1 royalty. Upon meeting this cap, both the TB-GSR1 and TB-
GSR2 royalties cease and the TB-GSR3 royalty becomes effective. The
TB-GSR3 reserves represent the remaining reserves after subtracting
the reserves associated with TB-GSR1 and TB-GSR2.
(28) Silver reserves were calculated by the operators at the following
prices per ounce: $13.25 - Martha; $12.00 - Penasquito and Troy;
$11.00 - El Toqui; and $10.00 - Dolores. No silver price is
available for Balcooma.
(29) The 7.0% GSR extends until either cumulative production reaches
approximately 9.9 million ounces of silver and 84.6 million pounds
of copper, or Royal Gold receives $10.5 million in cumulative
payments, whichever occurs first. As of March 31, 2009, Royal Gold
has recognized approximately $10.0 million in royalty revenue which
is attributable to cumulative production of approximately 4.1
million ounces of silver and 35.8 million pounds of copper. The
6.1% royalty begins on production in excess of 11.0 million ounces
of silver and 94.1 million pounds of copper. This royalty steps
down to a perpetual 2.0% GSR royalty after cumulative production has
exceeded 12.7 million ounces of silver and 108.2 million pounds of
copper.
(30) The reserves subject to the 7.0% GSR royalty have been calculated by
Royal Gold based on the expectation of meeting the monetary cap of
$10.5 million in cumulative payments. Royal Gold used the
operator's December 31, 2008 silver and copper reserve prices of
$12.00 per ounce and $2.25 per pound, respectively, to calculate
this adjustment.
(31) Copper reserves were calculated by the operators at $2.00 per pound
for Robinson; $2.25 per pound for Troy; $2.50 - El Toqui. No copper
price is available for Balcooma.
(32) Zinc reserves were calculated by the operators at the following
price per pound: $1.00 - El Toqui; and $0.80 - Penasquito. No zinc
price is available for Balcooma.
(33) Lead reserves were calculated by the operators at the following
price per pound: $0.50 - Penasquito and $0.70 - El Toqui. No lead
price is available for Balcooma.
(34) Nickel reserve price was not available.
(35) Potash reserve price was not available.
(36) The reserve calculation parameters used by the operator to determine
reserves can be found in their 2008 Form 10-K.
(37) The royalty applies to 40% of production. The royalty rate is $1.44
per ton for the first 600,000 tons on which the royalty is paid,
reducing to $0.72 per ton on 600,000-800,000 tons and to $0.36 per
ton above 800,000 tons. The sliding-scale is applicable when the
price of potash drops below $23 per ton. Given the North American
market price for potash, the complete sliding-scale schedule is not
presented here. In addition, there is a $0.25 per ton royalty
payable on annual production up to 600,000 tons.
NOTES:
Lluvia de Oro - This property was acquired in the Battle Mountain transaction. The various parties claiming interest in the mining concessions subject to this royalty have disputed any royalty obligation.
Koolanooka - The Koolanooka reserves are based on an above ground stockpile of iron ore fines and not at any specific price.
The operators at Reedy's Burnakura and Relief Canyon do not report reserve information, only additional mineralized material.
TABLE 2
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material (1),(2),(3)
as of December 31, 2008
ADDITIONAL
MINERALIZED
PROPERTY ROYALTY (4) OPERATOR MATERIAL
Bald Mountain 1.75 - 3.5% NSR Barrick Measured
and
Indicated
Cortez (Pipeline) GSR1 0.40 - 5.0% GSR Barrick Measured
Indicated
Inferred
Cortez (Pipeline) GSR2 0.40 - 5.0% GSR Barrick Measured
Indicated
Inferred
Cortez (Pipeline) GSR3 0.71% GSR Barrick Measured
Indicated
Inferred
Cortez (Pipeline) NVR1 0.39% NVR Barrick Measured
Indicated
Inferred
Goldstrike - SJ Claims 0.9% NSR Barrick Measured
Indicated
Inferred
Leeville (6) 1.8% NSR Newmont Non Reserve
Material
Marigold (7) 2.0% NSR Goldcorp / Measured
Barrick
Indicated
Inferred
Relief Canyon 4.0% NSR Firstgold Measured
Indicated
Inferred
Robinson (8) 3.0% NSR Quadra Measured
(includes reserves) Indicated
Inferred
Wharf 0.0 - 2.0% NSR Goldcorp Measured
Indicated
Inferred
Holt-Holloway 0.00013 x Gold St. Andrew Measured
Price Goldfields Indicated
Inferred
Williams 0.72% NSR Barrick Measured
Indicated
Inferred
Dolores (9) 3.25% NSR Minefinders Measured
and
Indicated
Inferred
AVERAGE
GOLD
TONS OF GRADE
MATERIAL (ounces
PROPERTY (millions) per ton)
Bald Mountain 23.02 0.023
- -
Cortez (Pipeline) GSR1 4.08 0.020 (5)
48.06 0.016 (5)
5.77 0.016 (5)
Cortez (Pipeline) GSR2 0.81 0.017 (5)
6.96 0.015 (5)
1.14 0.017 (5)
Cortez (Pipeline) GSR3 4.85 0.019 (5)
54.35 0.016 (5)
6.03 0.016 (5)
Cortez (Pipeline) NVR1 2.46 0.018 (5)
25.52 0.015 (5)
2.68 0.013 (5)
Goldstrike - SJ Claims 1.07 0.064
2.67 0.053
0.31 0.106
Leeville (6) 0.81 0.392
Marigold (7) 8.47 0.016
33.55 0.015
48.53 0.013
Relief Canyon 0.00 0.000
0.00 0.000
30.48 0.022
Robinson (8) 572.95 0.005
(includes reserves) 146.71 0.003
88.88 0.002
Wharf 2.27 0.022
1.95 0.021
0.51 0.020
Holt-Holloway 1.46 0.194
2.11 0.200
1.18 0.226
Williams 1.11 0.054
0.57 0.114
- -
Dolores (9) 7.70 0.090
- -
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material (1),(2)
as of December 31, 2008
ADDITIONAL
PROPERTY ROYALTY (3) OPERATOR MINERALIZED
MATERIAL
El Chanate 2.0 - 4.0% NSR Capital Gold Measured
Indicated
Inferred
Mulatos 1.0 - 5.0% NSR Alamos Measured
Indicated
Inferred
Penasquito (10) 2.0% NSR Goldcorp Measured
(Oxide) Indicated
Inferred
Penasquito (10) 2.0% NSR Goldcorp Measured
(Sulfide) Indicated
Inferred
Don Mario (11) 3.0% NSR Orvana Minerals Measured
(UMZ) Indicated
Inferred
El Limon 3.0% NSR B2Gold Measured
Indicated
Inferred
El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated
Inferred
Martha 2.0% NSR Coeur d'Alene Measured
Indicated
Inferred
Pascua-Lama 0.16 - 1.08% Barrick Measured
NSR Indicated
Inferred
Balcooma (12) 1.5% NSR Kagara Measured
Indicated
Inferred
Meekatharra A$10.00 per Mercator Gold Measured and
gold Indicated
(Paddy's Flat) ounce produced Inferred
Reedy's
Burnakura 1.5 - 2.5% NSR ATW Gold Measured
Indicated
Inferred
AVERAGE
GOLD
TONS OF GRADE
MATERIAL (ounces
PROPERTY (millions) per ton)
El Chanate 5.63 0.020
17.85 0.018
5.98 0.024
Mulatos 11.76 0.030
46.27 0.028
35.91 0.029
Penasquito (10) 6.35 0.002
(Oxide) 33.51 0.002
43.67 0.003
Penasquito (10) 122.60 0.007
(Sulfide) 555.26 0.007
777.80 0.007
Don Mario (11) 1.86 0.039
(UMZ) 4.98 0.040
0.35 0.037
El Limon 0.26 0.211
0.36 0.132
2.69 0.156
El Toqui 1.74 0.060
- -
Martha 0.00 0.030
0.04 0.020
0.03 0.050
Pascua-Lama 8.16 0.037
62.39 0.035
7.28 0.027
Balcooma (12) 0.00 0.000
1.20 0.011
0.63 0.018
Meekatharra 17.51 0.039 (Paddy's Flat) 8.74 0.040
Reedy's Burnakura 0.08 0.288
0.21 0.204
0.16 0.158
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Gold Additional Mineralized Material (1),(2)
as of December 31, 2008
AVERAGE
GOLD
ADDITIONAL TONS OF GRADE
MINERALIZED MATERIAL (ounces
PROPERTY ROYALTY (3) OPERATOR MATERIAL (millions) per ton)
Siguiri 0.0 - 1.875% NSR AngloGold Measured and
Ashanti Indicated 39.14 0.023
Inferred 70.64 0.026
Taparko 2.0% GSR High River Measured 0.00 0.000
TB-GSR3 Indicated 0.00 0.000
Inferred 1.27 0.073
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Silver Additional Mineralized Material (1),(2)
as of December 31, 2008
ADDITIONAL
MINERALIZED
PROPERTY ROYALTY (3) OPERATOR MATERIAL
Troy 2.0% GSR Revett Measured
Indicated
Inferred
Dolores (9) 2.0% NSR Minefinders Measured and
Indicated
Inferred
Penasquito (10) 2.0% NSR Goldcorp Measured
(Oxide) Indicated
Inferred
Penasquito (10) 2.0% NSR Goldcorp Measured
(Sulfide) Indicated
Inferred
Don Mario (11) 3.0% NSR Orvana Minerals Measured
(UMZ) Indicated
Inferred
El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated
Inferred
Martha 2.0% NSR Coeur d'Alene Measured
Indicated
Inferred
Balcooma (12) 1.5% NSR Kagara Measured
Indicated
Inferred
AVERAGE
SILVER
TONS OF GRADE
MATERIAL (ounces
PROPERTY (millions) per ton)
Troy 38.26 1.43
10.93 0.91
0.00 0.00
Dolores (9) 7.70 2.87
- -
Penasquito (10) 6.35 0.13
(Oxide) 33.51 0.15
43.67 0.23
Penasquito (10) 122.60 0.54
(Sulfide) 555.26 0.54
777.80 0.49
Don Mario (11) 1.86 1.25
(UMZ) 4.98 1.30
0.35 1.19
El Toqui 1.74 0.35
- -
Martha 0.00 32.03
0.04 29.44
0.03 46.96
Balcooma (12) 0.00 0.00
1.20 0.92
0.63 1.71
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Base Metals Additional Mineralized Material (1),(2)
as of December 31, 2008
COPPER
ADDITIONAL
MINERALIZED
PROPERTY ROYALTY OPERATOR MATERIAL
Robinson (8) 3.0% NSR Quadra Measured
Indicated
Inferred
Troy 2.0% GSR Revett Measured
Indicated
Inferred
Don Mario (11) 3.0% NSR Orvana Minerals Measured
(UMZ) Indicated
Inferred
El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated
Inferred
Balcooma (12) 1.5% NSR Kagara Measured
Indicated
Inferred
COPPER
TONS OF AVERAGE
MATERIAL GRADE
PROPERTY (millions) (% Cu)
Robinson (8) 572.95 0.43
146.71 0.30
88.88 0.28
Troy 38.26 0.71
10.93 0.41
- -
Don Mario (11) 1.86 1.26
(UMZ) 4.98 1.49
0.35 1.63
El Toqui 1.74 0.10
- -
Balcooma (12) 0.00 0.00
1.20 1.53
0.63 0.90
ZINC
ADDITIONAL
MINERALIZED
PROPERTY ROYALTY OPERATOR MATERIAL
Penasquito (10) 2.0% NSR Goldcorp Measured (Sulfide) Indicated (DEV) Inferred
El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated
Inferred
Balcooma (12) 1.5% NSR Kagara Measured
Indicated
Inferred
ZINC
TONS OF AVERAGE
MATERIAL GRADE
PROPERTY (millions) (% Zn)
Penasquito (10) 122.60 0.55 (Sulfide) 555.26 0.55 (DEV) 777.80 0.56
El Toqui 1.74 8.10
- -
Balcooma (12) 0.00 0.00
1.20 4.96
0.63 6.42
TABLE 2 (cont.)
Royal Gold's Royalty Portfolio
Base Metals and Other Additional Mineralized Material (1)
as of December 31, 2008
LEAD
ADDITIONAL
MINERALIZED
PROPERTY ROYALTY OPERATOR MATERIAL
Penasquito (10) 2.0% NSR Goldcorp Measured
(Sulfide) Indicated
Inferred
El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated
Inferred
Balcooma (12) 1.5% NSR Kagara Measured
Indicated
Inferred
LEAD
TONS OF AVERAGE
MATERIAL GRADE
PROPERTY (millions) (% Pb)
Penasquito (10) 122.60 0.19
(Sulfide) 555.26 0.19
777.80 0.18
El Toqui 1.74 0.44
- -
Balcooma (12) 0.00 0.00
1.20 2.41
0.63 2.32
POTASH
ADDITIONAL TONS OF AVERAGE
MINERALIZED MATERIAL GRADE
PROPERTY ROYALTY OPERATOR MATERIAL (millions)(% K20)
Allan $0.36 - $1.44/ ton Potash Measured 1,270.95 25.90
and $0.25/ton Corporation of Indicated 0.00 0.00
Saskatchewan Inferred 4,293.46 25.90
FOOTNOTES TO TABLE 2
INFORMATION PROVIDED IN TABLE 2 SHOULD ALSO BE READ IN CONJUNCTION WITH FOOTNOTE INFORMATION PROVIDED IN TABLE 1 AS RELATED TO THE VARIOUS PROPERTIES
(1) Mineralized material is that part of a mineral system that has
potential economic significance but cannot be included in the proven
and probable ore reserve estimates until further drilling and
metallurgical work is completed, and until other economic and
technical feasibility factors based upon such work have been
resolved. The U.S. Securities and Exchange Commission does not
recognize this term. Investors are cautioned not to assume that any
part or all of the mineral deposits in these categories will ever be
converted into reserves.
(2) Some of the royalty operators are Canadian and Australian issuers.
Canadian and Australian issuers use the terms "mineral resources" and
its subcategories "measured," "indicated" and "inferred" mineral
resources. For Canadian issuers, the definitions of "mineral
resource," "measured mineral resource," "indicated mineral resource"
and "inferred mineral resource" conform to the Canadian Institute of
Mining, Metallurgy and Petroleum definitions of those terms as of the
effective date of estimation, as required by National Instrument 43-
101 of the Canadian Securities Administrators. For Australian
issuers, the definitions of "mineral resource," "measured mineral
resource," "indicated mineral resource" and "inferred mineral
resource" conform with the JORC Code. While such terms are recognized
and required by Canadian and Australian regulations, the U.S.
Securities and Exchange Commission does not recognize them. In each
case, the mineralized material reported hereunder are estimates
previously disclosed by the relevant operator, without reference to
the underlying data used to calculate the estimates. Accordingly,
Royal Gold is not able to reconcile the estimates prepared in
reliance on National Instrument 43-101 or JORC Code with terms
recognized by the U.S. Securities and Exchange Commission. Investors
are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into reserves.
(3) The additional mineralized material reported are either estimates
received by the various operators or are based on royalty
documentation material provided to Royal Gold or which is derived
from recent publicly-available information from the operators of the
various properties or various recent National Instrument 43-101 or
JORC Code reports filed by operators. Accordingly, Royal Gold is not
able to reconcile the resource estimates prepared in reliance on
National Instrument 43-101 or JORC Code with definitions of the U.S.
Securities and Exchange Commission.
(4) See royalty definitions on page 28.
(5) NVR1 and GSR3 additional mineralized material are subsets of the
additional mineralized material covered by GSR1 and GSR2 reserves.
(6) The operator reported additional mineralization as non-reserve
material and did not provide a breakdown.
(7) The 2.0% NSR royalty interest covers the majority of six sections of
land, containing a number of open pits, but does not cover the
current mining in the Basalt/Antler area.
(8) Additional mineralized material estimates include reserves at the
request of the operator.
(9) Dolores additional mineralized material numbers have not been updated
since material was used for late 2008 commissioning activities.
(10) Operator has reported estimates by material types. The sulfide
material will be processed by milling. The oxide material will be
processed by heap leaching.
(11) The Don Mario additional mineralized material is contained in the
upper mineralized zone ("UMZ"). The UMZ is currently the subject of
a feasibility study which is not yet public.
(12) A portion of the reported additional mineralized material may not be
subject to Royal Gold's royalty interests.
NOTE: Additional mineralized material was not reported by the operators for the following properties: Canadian Malartic, Gold Hill, Mt. Goode, Pine Cove and Twin Creeks.
TABLE 3
Royal Gold's Royalty Portfolio
Calendar Year 2009 Production Estimates (1)
ROYALTY OPERATOR METAL PRODUCTION (2)
UNITED STATES
Bald Mountain Barrick Gold 2,000 oz Cortez-Pipeline GSR1 Barrick Gold 345,296 oz Cortez-Pipeline GSR2 Barrick Gold 614 oz Cortez-Pipeline GSR3 Barrick Gold 345,910 oz Cortez-Pipeline NVR1 Barrick Gold 72,863 oz Goldstrike (SJ Claims) Barrick Gold 440,879 oz Leeville Mining Complex Newmont Gold 426,212 oz Relief Canyon (3) Firstgold Gold Not available Robinson (4) Quadra Gold 100,000 oz Robinson (4) Quadra Copper 140 million lbs Troy (5) Revett Silver 1.7 million oz Troy (5) Revett Copper 14.2 million lbs Twin Creeks Newmont Gold 51,861 oz Wharf Goldcorp Gold 57,500 oz
CANADA
Allan (3) Potash Corporation Potash Not available
of Saskatchewan
Williams Barrick Gold 166,019 oz
MEXICO
Dolores Minefinders Gold 100,000 oz Dolores Minefinders Silver 2,000,000 oz El Chanate Capital Gold Gold 55,000 oz Mulatos Alamos Gold 145,000 oz
TABLE 3 (cont.)
Royal Gold's Royalty Portfolio
Calendar Year 2009 Production Estimates (1)
ROYALTY OPERATOR METAL PRODUCTION (2)
MEXICO (cont.) Penasquito Goldcorp Gold 70,000 oz
Penasquito Goldcorp Silver 2.3 million oz
CENTRAL AND SOUTH AMERICA
El Limon B2Gold Gold 43,000 oz Don Mario (3) Orvana Minerals Gold Not available El Toqui Breakwater Gold 36,000 oz El Toqui Breakwater Silver 7,000 oz El Toqui Breakwater Zinc 15 million lbs Martha (4) Coeur d'Alene Gold 10,000 oz Martha (4) Coeur d'Alene Silver 3 million oz
AUSTRALIA Balcooma (3,4) Kagara Copper Not available Balcooma (3,4) Kagara Zinc Not available Reedy's Burnakura ATW Gold Gold 35,000 oz Mt. Goode (Cosmos) (6) Xstrata Nickel 35.3 million lbs
WEST AFRICA Siguiri AngloGold Ashanti Gold 300,000 oz Taparko TB-GSR1 and High River Gold 63,000 oz (7) TB-GSR2 (3)
ROYALTY DEFINITIONS
INFORMATION PROVIDED IN TABLE 3 SHOULD ALSO BE READ IN CONJUNCTION WITH FOOTNOTE INFORMATION PROVIDED IN TABLE 1 AS RELATED TO THE VARIOUS PROPERTIES
(1) The estimates and production reports are prepared by the operators of
the mining properties. Royal Gold does not participate in the
preparation or verification of the operator's estimates or production
reports and has not independently assessed or verified the accuracy
of such information. Please refer to our cautionary statement
regarding forward-looking statements and to the risk factors
identified in our Annual Report on Form 10-K and our other filings
with the Securities and Exchange Commission for information regarding
factors that could affect actual results.
(2) Production estimates were provided by the various operators and are
in ounces for gold and silver; pounds for copper, zinc, and nickel;
and tons for potash.
(3) The operators are in the process of updating or have not provided
calendar 2009 production guidance.
(4) Recovered metal is contained in concentrate and is subject to third
party treatment charges and recovery losses.
(5) Recovered metal is contained in concentrate and is subject to third
party recovery losses.
(6) Not all of the production may be attributable to Royal Gold's royalty
interest.
(7) The operator provided a calendar 2009 production range between 63,000
to 76,000 ounces.
ROYALTY DEFINITIONS
The Company's royalty portfolio contains several different types of royalties which are defined as follows:
Royalty - the right to receive a percentage or other denomination of mineral production from a resource extraction operation.
Gross Smelter Return ("GSR") Royalty - a defined percentage of the gross
revenue from a resource extraction operation, less, if applicable, certain
contract-defined costs paid by or charged to the operator.
Net Smelter Return ("NSR") Royalty - a defined percentage of the gross
revenue from a resource extraction operation, less a proportionate share
of incidental transportation, insurance, refining and smelting costs.
Net Value Royalty ("NVR") - a defined percentage of the gross revenue from
a resource extraction operation, less certain contract-defined
transportation costs, milling costs and taxes.
Net Profits Interest Royalty ("NPI") - a defined percentage of the gross
revenue from a resource extraction operation, after recovery of certain
contract-defined pre-production costs, and after deduction of certain
contract-defined mining, milling, processing, transportation,
administrative, marketing and other costs.
Gross Proceeds Royalty ("GPR") - a royalty in which payments are made on
contained ounces rather than recovered ounces.
Royal Gold, Inc.