Royal Gold Analyst and Investor Day June 3, 2016
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 materially from the projections and estimates contained herein and include, but are not limited to: expected gold equivalent ounce production in the March 2016 quarter and beyond; production, cost, reserve and mine life estimates and forecasts from the operators of the Company’s royalty and stream properties; reserves and resources, construction progress and projected start‐up dates at the Cortez Crossroads, Rainy River and Wassa and Prestea projects; anticipated growth in the volume of metals subject to the Company’s royalty and stream interests; the impact of exchange rates on the Company’s full year effective tax rate; adequacy of liquidity; sources and uses of capital; projected cash balances and leverage amounts; statements concerning the Company’s dividend rates and market valuation; analyst valuations with and without value for Mount Milligan; return on investment expectations; statements concerning continued operation of Mount Milligan regardless of Thompson Creek’s financial situation; and statements or estimates from operators of properties where we have royalty and stream interests regarding the timing of development, construction and commencement of production, or their projections of steady, increasing or decreasing production once in operation. Factors that could cause actual results to differ materially from these forward‐looking statements include, among others: the risks inherent in construction, development and operation of mining properties, including those specific to new mines being developed and operated in foreign countries; changes in gold, silver, copper, nickel and other metals prices; performance of and production at the Company’s properties; decisions and activities of the Company’s management; unexpected operating costs; decisions and activities of the operators of the Company’s royalty and stream properties; changes in operators’ mining and processing techniques or royalty calculation methodologies; resolution of regulatory and legal proceedings (including with Vale regarding Voisey’s Bay); unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties; inaccuracies in technical reports and reserve estimates; revisions by operators of reserves, resources, mineralization or production estimates; changes in project parameters as plans of the operators are refined; the results of current or planned exploration activities; discontinuance of exploration activities by operators seeking additional financing from the Company or third parties; economic and market conditions; variations between operators’ production estimates and our estimates of net GEOs; operations on lands subject to aboriginal rights; the ability of operators of development properties to finance construction to project completion and bring projects into production and operate them in accordance with feasibility studies; challenges to the Company’s royalty interests, or title and other defects in the Company’s royalty properties; errors or disputes in calculating royalty payments or stream deliveries, or payments or deliveries not made in accordance with royalty or stream agreements; the liquidity and future financial needs of the Company; the impact of future acquisitions and royalty and stream financing transactions; adverse changes in applicable laws and regulations; litigation; and risks associated with conducting business in foreign countries, including application of foreign laws to contract and other disputes, environmental laws, enforcement and uncertain political and economic environments. These risks and other factors are discussed in more detail in the Company’s public filings with the Securities and Exchange Commission. Statements made herein are as of the date hereof and should not be relied upon as of any subsequent date. The Company’s past performance is not necessarily indicative of its future performance. The Company disclaims any obligation to update any forward‐looking statements. Endnotes located on page 71. June 3, 2016 2
Our Team, Agenda Strategy Transactions Capitalization Tony Jensen, President & CEO Bill Heissenbuttel, VP Corporate Stefan Wenger, CFO & Treasurer Development Measurement Evaluation Protection Karli Anderson, VP Investor Relations Mark Isto, Vice President Operations Bruce Kirchhoff, VP General (effective July 1, 2016) Counsel & Corporate Secretary June 3, 2016 3
Our Team Royal Gold (Canada) RGLD Gold AG Royal Gold, Inc. Alistair Baker, Director, Business Jason Hynes, Director of Business Randy Shefman, Development Development and Global Sales Associate General Counsel June 3, 2016 4
Board of Directors Left to right: Jamie Sokalsky, Independent Director; Kevin McArthur, Independent Director; Gordon Bogden, Independent Director; Craig Haase, Independent Director; William Hayes, Independent Director and Chairman of the Board; and Ronald J. Vance, Independent Director. Not pictured is Chris M.T. Thompson, Independent Director. June 3, 2016 5
Royal Gold Evolution RGLD Revenue (TTM) RGLD Price 400 120 Mount Milligan (2010) 350 Andacollo (2009) 100 Trailing 12 month revenue 300 RGLD Share Price 80 Peñasquito (2006) 250 200 60 Royal Resources (1981) Troy (2004) 150 40 Pipeline/Cortez (1993) 100 20 50 Pueblo Viejo (2015) 0 0 6/11/81 6/11/82 6/11/83 6/11/84 6/11/85 6/11/86 6/11/87 6/11/88 6/11/89 6/11/90 6/11/91 6/11/92 6/11/93 6/11/94 6/11/95 6/11/96 6/11/97 6/11/98 6/11/99 6/11/00 6/11/01 6/11/02 6/11/03 6/11/04 6/11/05 6/11/06 6/11/07 6/11/08 6/11/09 6/11/10 6/11/11 6/11/12 6/11/13 6/11/14 6/11/15 Gold Operating Precious Metals Royalty and Oil and Gas Oil and Gas Company Royalty Company Streaming Company Exploration Exploration June 3, 2016 6
Royal Gold Vision & Strategy Reinvest Free Gold Focused Invest at the Pay a Be the Most Cash Flow in Troughs and Growing and Valuable, Not Long Lived be Patient at Sustainable Necessarily Properties the Top Dividend the Largest We create long term value by providing leverage and optionality to gold price and reserve upside by: Providing a portfolio of assets in some of the best gold districts in the world Maintaining a fixed cost structure Capital allocation discipline June 3, 2016 7
Portfolio of Assets Portfolio by Metal 85% of Revenue from Gold in the First 9 Months of Fiscal 2016 Gold Silver Other 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9 mths 2016 June 3, 2016 8
Portfolio of Assets Distribution of Geography 80% of Revenue from Canada, Chile, US & Mexico in First 9 Months of Fiscal 2016 US Canada Chile Dominican Republic Mexico Africa Australia Other 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9 mths 2016 June 3, 2016 9
Portfolio of Assets Cornerstone Properties Cornerstone Properties generate cash flow that lead to more diversification $350,000,000 FY15: Mount Milligan was 22% of net $300,000,000 FY12: revenue Andacollo was 24% of revenue $250,000,000 Gross Revenue $USD Pueblo Viejo Golden Star FY10: $200,000,000 Taparko was Peñasquito 24% of revenue FY07: $150,000,000 Peñasquito was Voisey's Bay 41% of total assets, not $100,000,000 producing yet, Mount Milligan startup risk FY04: Cortez/Pipeline $50,000,000 was 88% of Taparko revenue Andacollo Cortez Robinson $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 First 3 quarters June 3, 2016 10
Portfolio of Assets Current Value Drivers 80% of our portfolio asset value is in mines with reserve life >15 years, 1 including: Pueblo Viejo, 20 years Mount Milligan, 21 years Andacollo, 20 years June 3, 2016 11
Portfolio of Assets Life of Mines 80% of our portfolio asset value is in mines with reserve life >15 years, 1 including: Years in production since we've owned it Years of remaining mine life 25 20 15 Years 10 5 0 2 Mt. Andacollo Voisey's Pueblo Cortez Canadian Rainy River Peñasquito Leeville Robinson Golden Holt Mulatos Milligan Bay Viejo Malartic Star June 3, 2016 12
Capital Allocation Opportunistic Capital Deployment We raised money near the post‐financial crisis high in the gold price, then deployed capital near the trough $1,900 RGLD Equity Raise at $1773 gold $1,800 Mt. Milligan II $1,700 Spot Gold Price in US Dollars $1,600 $1,500 Andacollo Stream $1,400 Pueblo Viejo $1,300 Phoenix Mt. Milligan I $1,200 $1,100 Wassa and Prestea Rainy River $1,000 June 3, 2016 13
Capital Allocation Returning Capital to Shareholders 15 straight years of dividend increases Dividend increased in calendar 2016 to $0.92 per share 29% payout ratio of operating cash flow in FY2015 1 21% compound annual growth rate (CAGR) since 2001 Equates to 1.6% annual yield (May 31, 2016) $1.00 1.80 $0.90 RGLD Annual Dividends Paid Per Share 1.60 $0.80 GG FNV 1.40 $0.70 Dividend Yield 2 1.20 SLW $0.60 OR 1.00 $0.50 0.80 AEM $0.40 0.60 $0.30 ABX 0.40 $0.20 NEM HL 0.20 $0.10 0.00 $0.00 ELD PAAS Calendar Years June 3, 2016 14
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