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CIBC 16th AnnualInstitutional InvestorConferenceJANUARY 2013                    Page 1
Cautionary Statement  This presentation contains certain forward‐looking statements within the meaning of the Private Secu...
Introduction Company Overview Cornerstone Property Review Value Creation                               Page 3
Company Overview A >$5B public royalty & streaming company, listed on both the NASDAQ (RGLD) and the Toronto Stock Exchang...
Key Strengths1   Disciplined Business Strategy       Designed to provide a premium return through a lower risk investment ...
Key Strengths2         Low Fixed Operating Costs and No Ongoing Development Costs            No responsibility for operati...
Key Strengths3   Geographically and Operationally Diverse Asset Base      Revenue is derived from a diverse portfolio of a...
Key Strengths4   Stable Mining Operations with Reputable Operating Partners     Royal Gold owns interests on mines operate...
Key Strengths       5       Long Lived Business Interests                  Royalty and streaming interests span, in most c...
Key Strengths6    Strong Margins Drive Steady Cash Flow      Royal Gold’s low fixed operating costs drive strong operating...
Cornerstone PropertyReview                  Page 11
Portfolio of Quality Assets   1    1,2    3        3                 Page 12
Andacollo                  (Teck)Region IV, Chile                               75% NSR until 910K ounces are Royalty:   1...
Peñasquito                 (Goldcorp)Zacatecas, Mexico Royalty:                    2.0% NSR                             - ...
Voisey’s Bay               (Vale)Labrador and Newfoundland, Canada Royalty:                  2.7% NSR                     ...
Mt. Milligan                 (Thompson Creek)Growth CatalystBritish Columbia, Canada Mine profile:                Open pit...
Mt. Milligan                                      (Thompson Creek) Investment SummaryBritish Columbia, CanadaTransaction s...
Mt. Milligan                                                      (Thompson Creek) Attractive AttributesBritish Columbia, ...
Page 19
Page 20
Pascua-Lama                                       (Barrick) Growth CatalystRegion III, Chile                              ...
Project Development Pipeline                                            Exploration           Evaluation            Develo...
Value Creation                 Page 23
Significant ImpactMt. Milligan and Pascua-Lama                                                                            ...
Premium Investment Vehicle    Lower Risk + Financial Performance + Growth                                                 ...
Footnotes            Page 26
FootnotesPAGE 5. KEY STRENGTHS (Disciplined Business Strategy)        PAGE 12: PORTFOLIO OF QUALITY ASSETS                ...
FootnotesPAGE 24: SIGNIFICANT IMPACT1. Gold equivalent ounces for fiscal 2012 were    calculated by dividing actual revenu...
1660 Wynkoop StreetDenver, CO 80202-1132303.573.1660info@royalgold.comwww.royalgold.com                        Page 29
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Cibc whistler conference (website) jan 2013

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Cibc whistler conference (website) jan 2013

  1. 1. CIBC 16th AnnualInstitutional InvestorConferenceJANUARY 2013 Page 1
  2. 2. 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 the statements regarding the Company’s key strengths which include having a disciplined business strategy that supports earnings stability and reserve replacement, low fixed operating costs and the absence of ongoing development costs, a geographically diversified asset base, stable mining operations run by reputable partners, long lived royalty and streaming contracts, and strong margins driving steady cash flow; having features of a lower risk investment vehicle; offering a premium return; that the Company will continue to experience no cost organic reserve growth; that the Company does accretive transactions; the projected future mine lives for the Company’s 15 largest projects; that production growth is expected to continue at Andacollo and Peñasquito; that commercial production is expected during the fourth quarter of calendar 2013 at Mt. Milligan; that Mt. Milligan has exploration upside, is located in a favorable geographic location with strong local and regional infrastructure and robust economics, with minimized construction risk; that commercial production at Pascua‐Lama is expected in the second half of calendar 2014; that the Company will continue to see ramp-up at Canadian Malartic and Wolverine; increased mill production at Mulatos and new production from Gold Hill and Pinson; and that the Company expects to see significant longer term growth potential and significant impact on net gold equivalent ounces from Mt. Milligan and Pascua‐Lama. 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 a new mine being developed and operated by a base metals company; changes in gold and other metals prices; 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; unanticipated grade, geological, metallurgical, processing or other problems at the properties; inaccuracies in technical reports and reserve estimates, revisions by operators of reserves, 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; economic and market conditions; operations in land subject to First Nations jurisdiction in Canada, the ability of operators to bring non‐producing and not yet in development projects into production and operate in accordance with feasibility studies; erroneous royalty payment calculations; title defects to royalty properties; future financial needs of the Company; the impact of future acquisitions and royalty 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. 40 The Company and its affiliates, agents, directors and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material.Footnotes located on pages 27 – 28. Page 2
  3. 3. Introduction Company Overview Cornerstone Property Review Value Creation Page 3
  4. 4. Company Overview A >$5B public royalty & streaming company, listed on both the NASDAQ (RGLD) and the Toronto Stock Exchange (RGL) Focused on gold, which contributed 67% of revenues for the last twelve months ended September 30, 2012 Portfolio of quality assets, including royalty/stream interests in: 39 producing assets 28 development assets 41 evaluation-stage assets 97 exploration-stage assets Key Key strengths Strengths Disciplined business strategy Low fixed operating costs and no ongoing development costs Geographically diversified asset base Stable mining operations run by reputable partners Long lived business interests Strong margins drive steady cash flow generation Page 4
  5. 5. Key Strengths1 Disciplined Business Strategy Designed to provide a premium return through a lower risk investment vehicle Strategy supports cash flow stability through reinvestment and reserve replacement Royal Gold uses two strategies to replace and grow reserves Royalty/streaming interests typically span the life of a mine, so if a mine operator increases reserves by investing in further exploration, Royal Gold grows its reserves at no cost Royal Gold has a long history of accretive acquisitions Exploration Gold Reserve Replacement ¹ 95 Junior Operators 75 Ounces (millions) 55 Intermediate Operators 35 Index Funds Return Major Operators 15 ETF -5 Physical Gold -25 Beginning Reserve Reserve Reserve Ending Risk Balance Consumption Additions Acquisitions Balance (Calendar Years 2005 – 2011) Page 5
  6. 6. Key Strengths2 Low Fixed Operating Costs and No Ongoing Development Costs No responsibility for operating costs at the underlying mining property Not required to contribute to capital or development costs TTM cash operating expenses, including production taxes, represent only 8% 1 of revenue Royal Gold Cash Cost Margin Industry Cash Cost Margin 1,800 1,800 1,600 1,600 1,400 1,400 1,200 1,200 1,000$/Ounce 1,000 $/Ounce 800 800 600 600 400 400 200 200 0 0 - 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 (Fiscal Years) (Fiscal Years) Margin Production Taxes Cash Cost of Operations Margin Industry Cash Cost 2 (Source: CPM Group) Page 6
  7. 7. Key Strengths3 Geographically and Operationally Diverse Asset Base Revenue is derived from a diverse portfolio of assets, located in a variety of highly-regarded mining jurisdictions around the world Over the past several years, Royal Gold has substantially increased the geographical and asset diversification of its revenue stream FY2012 Revenue by Geography Operational Diversification 300 8% 5% 25% 250 Revenue ($ millions) 18% 200 150 24% 20% 100 50 Chile Canada Mexico US Australia Other 0 2008 2009 2010 2011 2012 (Fiscal Years) Andacollo Voiseys Bay Peñasquito Holt Mulatos Cortez Robinson Leeville Canadian Malartic Las Cruces Inata Dolores Gwalia Deeps Wolverine Other Page 7
  8. 8. Key Strengths4 Stable Mining Operations with Reputable Operating Partners Royal Gold owns interests on mines operated by many of the premier mining companies in the industry 66% of fiscal 2012 revenue was produced from investment grade rated companies FY2012 Revenue by Operator Net Gold Equivalent Reserves by Operator (December 31, 2011) 1,2 1% 1% 14% 23% 24% 1% 28% 3% 4% 4% 12% 14% 5% 6% 16% 12% 14% 8% Teck Vale Goldcorp Thompson Creek Teck Barrick Barrick St Andrew Alamos Goldcorp Vale Pan American Silver KGHM Newmont Other Osisko Alamos Other Page 8
  9. 9. Key Strengths 5 Long Lived Business Interests Royalty and streaming interests span, in most cases, the entire life-of-mine The median current projected life of Royal Gold’s 15 largest properties is 15 years The four largest, Mt. Milligan, Andacollo, Pascua-Lama, and Peñasquito, are each projected to last through at least 2036Property Calendar Year 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40Cortez (Pipeline) 1992 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Andacollo 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Robinson 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1Voiseys Bay 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1Mulatos 2 1 1 1 1 1 1 1 1 1 1 1 1 1Ruby Hill 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Holt 2 1 1 1 1 1 1 1 1 1Las Cruces 1 2 1 1 1 1 1 1 1 1 1 1 1 1Dolores 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Peñasquito 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Wolverine 2 1 1 1 1 1 1 1 1 1 1Canadian Malartic 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Mt. Milligan 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Pascua-Lama 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Tulsequah Chief 2 1 1 1 1 1 1 1 1 1 Production Years Initial Interest Acquired by RGLD Page 9
  10. 10. Key Strengths6 Strong Margins Drive Steady Cash Flow Royal Gold’s low fixed operating costs drive strong operating margins Royal Gold’s EBITDA has increased every year since FY2006, reaching $233.2M in FY2012 Royal Gold expects production growth in FY2013 and 2014, with further contribution from the ramp up/expansions at Andacollo and Peñasquito Followed by the expected commissioning of Mt. Milligan in FY2014 and Pascua-Lama in FY2015 Historical Margins ¹ Historical Financial Results (US$M) ¹100% 300 180 86% 89% 81% 84% 77% 80% 250 150 GEO Production (koz) 68% 59% 62% 56% 200 120 60% US$mm 38% 41% 150 90 35% 36% 37% 40% 100 60 22% 20% 50 30 0% 0 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 FY2012 EBITDA Margin Operating Cash Flow Margin Net Income Margin Revenue EBITDA Operating Cash Flow Net Income GEO Production (koz) Page 10
  11. 11. Cornerstone PropertyReview Page 11
  12. 12. Portfolio of Quality Assets 1 1,2 3 3 Page 12
  13. 13. Andacollo (Teck)Region IV, Chile 75% NSR until 910K ounces are Royalty: 1 produced; 50% NSR thereafter Reserves: 2 1.8M ozs gold FY 2012 Production: 3 51.4K ozs gold FY 2012 Revenue: $64.1M Mine Life: 20+ years Growth expected; fiscal 2012 Status: production of 44,000 TPD vs. design capacity of 55,000 TPD Page 13
  14. 14. Peñasquito (Goldcorp)Zacatecas, Mexico Royalty: 2.0% NSR - 16.5M ozs gold - 6.2B lbs lead Reserves: 1 - 960M ozs silver - 14.8B lbs zinc - 294.5K ozs gold - 164.0M lbs lead FY 2012 Production: 2 - 21.5M ozs silver - 312.6M lbs zinc FY 2012 Revenue: $28.5M Mine Life: 22 years Growth expected; fiscal 2012 Status: production of 93,500 TPD vs. design capacity of 130,000 TPD Page 14
  15. 15. Voisey’s Bay (Vale)Labrador and Newfoundland, Canada Royalty: 2.7% NSR - 1.2B lbs nickel Reserves: 1 - 668M lbs copper - 131.6M lbs nickel FY 2012 Production: 2 - 107.2M lbs copper FY 2012 Revenue: $36.0M Mine Life: 3 20+ years Status: Steady state; 6,000 TPD Page 15
  16. 16. Mt. Milligan (Thompson Creek)Growth CatalystBritish Columbia, Canada Mine profile: Open pit copper/gold porphyry Forecast Gold Production 2 300 Reserves: 1 6.0M oz gold Ounces/Thousands 250 262,000 ozs of gold annually during 200 Est. production: 2,3 first six years; 195,000 ozs of gold 150 annually over life of mine 100 Est. mine life: 2 22 years 50 - Commercial production expected in 2 3 4 5 6 7 Status: Years the fourth quarter of calendar 2013 Gold Stream Ounces Mt. Milligan Gold Production Page 16
  17. 17. Mt. Milligan (Thompson Creek) Investment SummaryBritish Columbia, CanadaTransaction summary: 25% of gold for $311.5M in July 2010 15% of gold for $270M in December 2011 12.25% of gold for $200M in August 2012 = 52.25% of gold for $781.5M Delivery payment of $435/oz or prevailing market price for life of mine (no inflation adjustment)Current investment: $669.6M to date $62.0M – March 1, 2013 $111.9M to be paid during $37.0M – June 1, 2013 construction in three quarterly $12.9M – September 1, 2013 payments Development Update 1 High End of Mt. Milligan Capital Guidance 1 (C$) (as of September 30, 2012) 231M 1.5B Overall Progress 352M Construction 935M Procurement Engineering 0 20 40 60 80 100 Cash Spent to Committed Remaining Total Project 9/30/12 Capex Page 17
  18. 18. Mt. Milligan (Thompson Creek) Attractive AttributesBritish Columbia, Canada Favorable geographic location Provincial and Federal permits Strong local and regional infrastructure: Low cost power Adequate water Low strip ratio Road, rail and port access Support communities Long mine life Exploration upside Construction risk substantially Attractive operating economics minimized World Copper Cash Production First Quartile Second Quartile Third Quartile Fourth Quartile 3.00 US$/Copper (lb) 2.00 1.00 0 (1.00) 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Production (kt)Source: Thompson Creek, CRU Group Page 18
  19. 19. Page 19
  20. 20. Page 20
  21. 21. Pascua-Lama (Barrick) Growth CatalystRegion III, Chile 0.78% to 5.23% NSRRoyalty: 1,2 (5.23% above $800 gold) Forecast Royalty Ounces 5 14.7M ozs gold 60Reserves: 3 (limited to gold in Chile) Ounces (Thousands) 50Capital: $8.0B to $8.5B 40 30Initial Production: Second half of CY 2014 20 800K to 850K ozs gold 10Production Guidance: 4 (average for first five years) 1 2 3 4 5Mine Life: 25+ years (Years)See footnotes on page ___ Page 21
  22. 22. Project Development Pipeline Exploration Evaluation Development Construction Ramp Up to Full Production Near term production growth from cornerstone producing properties – Andacollo (2013) Andacollo and Peñasquito Canadian Malartic (2013) Continued ramp-up at producing Peñasquito (2013) growth assets – Canadian Malartic and Wolverine (2013) Wolverine Mulatos Mill (2013) Increased production at Mulatos Gold Hill (2013) due to new mill Meekatharra (2013) Full Production New production from Gold Hill and Pinson (2013) Pinson Mt. Milligan (2013) Significant longer term growth Pascua-Lama (2014) potential from cornerstone Tulsequah Chief (2016) development properties – Kutcho Creek (2016) Pascua-Lama and Mt. Milligan Don Nicolas (2014) Other Development Projects (20) 41 Evaluation 97 Exploration Page 22
  23. 23. Value Creation Page 23
  24. 24. Significant ImpactMt. Milligan and Pascua-Lama Long-term Impact of Mt. Milligan and Pascua-Lama 350 300 Net Gold Equivalent Ounces (thousands) 250 200 150 100 50 0 -0 FY 2012 1 Mt. Milligan 2,3 Pascua-Lama 2,4 (full production) (full production) Andacollo Peñasquito Voisey’s Bay Other Mt. Milligan Pascua-Lama Page 24
  25. 25. Premium Investment Vehicle Lower Risk + Financial Performance + Growth Price Appreciation 1 3400% 3200% 3000% 2800% 2600% 2400% 26X 2200% 2000% 1800% 1600% 1400% 1200% 1000% 800% 600% 400% 5X 200% 2X 0% 0.2X -200% Jan-13 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Exploration Royal Gold Gold Price Average of Senior Producers 2 S&P 500 Junior Operators Compounded Annual Growth Rate 1 (June 2007 – June 2012) Intermediate Operators 30% 25% Index Funds 20% Major OperatorsReturn 15% ETF 10% Physical Gold 5% 0% Risk -5% Note: This chart represents the views of Royal Gold 2 Royal Gold Gold Price Average of Senior S&P 500 Index Producers Page 25
  26. 26. Footnotes Page 26
  27. 27. FootnotesPAGE 5. KEY STRENGTHS (Disciplined Business Strategy) PAGE 12: PORTFOLIO OF QUALITY ASSETS PAGE 16: MT. MILLIGAN1. Reserves within Royal Gold’s area of interest. 1. Three producing oil and gas properties are not 1. Reserves as of October 23, 2009. shown. 2. Per Thompson Creek’s National Instrument 43-101PAGE 6. KEY STRENGTHS (Low Fixed Operating Costs and 2. Producing properties are those that generated technical report filed on SEDAR, under ThompsonNo Ongoing Development Costs) revenue during fiscal 2012 or are expected to Creek’s profile, on October 13, 2011.1. TTM ended September 30, 2012. Calculation generate revenue in fiscal 2013. 3. Gold stream ounces are prior to the deduction of includes $20.2 million General & Administrative 3. Royal Gold considers and categorizes an exploration $435/ounce. expenses, and $9.8 million Production Taxes, less property to be an evaluation stage property if $6.4 million non-cash employee stock compensation additional mineralized material has been identified PAGE 17. MT. MILLIGAN expense, and $276.5M in revenue. on the property but reserves have yet to be 1. Per Thompson Creek’s presentation dated November2. Cash costs as defined by the Gold Institute’s industry identified. 9, 2012. definition. PAGE 13. ANDACOLLO PAGE 21. PASCUA-LAMAPAGE 8. KEY STRENGTHS (Stable Mining Operations with 1. 75% of payable gold until 910,000 payable ounces; 1. NSR sliding-scale schedule (price of gold per ounce –Reputable Operating Partners) 50% thereafter. As of September 30, 2012, there royalty rate): less than or equal to $325 – 0.78%;1. Net gold equivalent reserves are calculated by have been approximately 114,000 cumulative $400 – 1.57%; $500 – 2.72%; $600 – 3.56%; $700 – applying the Company’s interests to the reported payable ounces produced. Gold is a by-product of 4.39%; greater than or equal to $800 – 5.23%. The reserves at each individual property, and considering copper. royalty is interpolated between upper and lower the per ounce delivery payment associated with 2. Reserves as of December 31, 2011. endpoints. metal streams as a reduction to gross ounces. 3 . Reported production relates to the amount of metal 2. Approximately 20% of the royalty is limited to the2. Gold equivalent reserve ounces were calculated sales subject to our royalty interest as reported to us first 14.0M ounces of gold produced from the using metal ratios, as of December 31, 2011, based by the operator of the mine. project. Also, 24% of the royalty can be extended on the following prices: $1,531.00 gold; $28.18 beyond 14.0 million ounces produced for $4.4 silver; $3.43 copper; $0.90 lead; $0.83 zinc; $8.29 PAGE 14. PEÑASQUITO million. In addition, a one-time payment totaling nickel; $13.74 cobalt; and $13.61 molybdenum. 1. Reserves as of December 31, 2011. $8.4 million will be made if gold prices exceed $600 2. Reported production relates to the amount of metal per ounce for any six-month period within the firstPAGE 10. KEY STRENGTHS (Strong Margins Drive Steady sales subject to our royalty interests as reported to 36 months of commercial production. Cash Flow) us by the operator of the mine. 3. Reserves as of December 31, 2011. Royalty applies1. FY2009 results were impacted by two one-time gains to all gold production from an area of interest in related to the Barrick royalty portfolio acquisition PAGE 15. VOISEY’S BAY Chile. Only that portion of reserves pertaining to our and the Benson royalty buy-back by Golden Star. 1. Reserves as of December 31, 2011. royalty interest in Chile is reflected here. The effect of these gains was $33.7 million pre-tax. 2. Reported production relates to the amount of metal 4. Based on the Technical Report for the Pascua-Lama FY2010 results were impacted by pre-tax effects of sales subject to our royalty interests as reported to project filed by Barrick Gold, March 2011. severance and acquisition costs of $19.4 million us by the operator of the mine. 5. Royalty ounces are based on production guidance related to the International Royalty Corporation 3. Based on 2008 Vale Inco EIS. estimated by Barrick (see footnote 4 above). transaction. FY2012 results were impacted by a $1.3 million royalty restructuring charge at Relief Canyon. Page 27
  28. 28. FootnotesPAGE 24: SIGNIFICANT IMPACT1. Gold equivalent ounces for fiscal 2012 were calculated by dividing actual revenue by the annual annual average gold price of $1,673 for fiscal 2012.2. Net gold equivalent ounces are calculated by applying the Company’s interests to production at each individual property, and considering the per ounce delivery payment associated with metal streams as a reduction to gross ounces.3. Net gold equivalent ounces at Mt. Milligan are based upon an estimated annual production rate of 262,100 ounces of gold for the first six years using a gold price of $1,678 per ounce for conversion purposes of the delivery payment.4. Net gold equivalent ounces at Pascua-Lama are based upon an estimated annual production rate of 839,000 ounces of gold during the first five years.PAGE 25. PREMIUM INVESTMENT VEHICLE1. Does not include dividend distribution.2. Senior producers include Barrick, Newmont, AngloGold, Gold Fields, Goldcorp, Kinross and Agnico Eagle. Page 28
  29. 29. 1660 Wynkoop StreetDenver, CO 80202-1132303.573.1660info@royalgold.comwww.royalgold.com Page 29

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