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Denver gold forum screen final

This presentation by Tony Jensen, President and CEO of Royal Gold, Inc. discusses the company's business strategy and outlook. Some key points: - Royal Gold has a 20+ year track record of generating solid cash flow from its diverse portfolio of streaming and royalty agreements. It aims to maintain this performance through embedded growth from new projects. - The company is quickly deleveraging its balance sheet and sees growth catalysts from new projects coming online in 2017, 2018 and 2019, including Rainy River, Cortez Crossroads, and Peñasquito Pyrite Leach. - Royal Gold focuses on strong margins, a lean cost structure, strategic capital allocation, equity stewardship and returning dividends to shareholders

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NASDAQ: RGLD Tony Jensen President and CEO September 25, 2017
NASDAQ: RGLD | 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: ability to maintain solid cash flow generation and quickly deliver and enjoy embedded growth, a diverse portfolio, strong margins, lean structure, opportunistic capital allocation, capital stewardship and dividend returns in line with historical track records; sequential growth catalysts and estimated start-up and production at the Rainy River, Cortez Crossroads and Peñasquito Pyrite Leach projects in calendar 2017, 2018 and 2019, respectively; estimated revenue and percentages of future revenue expected from the Company’s stream and royalty portfolio in the aggregate; a new phase of growth; mine life and reserves estimates and forecasts of throughput, recoveries and production from the operators of our stream and royalty interests; and the lack of additional funding requirements. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the risks inherent in the operation of mining properties; a decreased price environment for gold and other metals on which our stream and royalty interests are determined; performance of and production at properties, and variation of actual production from the production estimates and forecasts made by the operators of those stream and royalty properties from fiscal 2017 to fiscal 2020; decisions and activities of the Company’s management affecting margins, use of capital and changes in strategy; unexpected operating costs, decisions and activities of the operators of the Company’s stream and royalty properties; changes in operators’ mining and processing techniques or stream or royalty calculation methodologies; resolution of regulatory and legal proceedings; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties; revisions or inaccuracies in technical reports, reserve, resources and production estimates; changes in project parameters as plans of the operators are refined; the results of current or planned exploration activities; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments under stream or royalty agreements; the liquidity and future financial needs of the Company; economic and market conditions; the impact of future acquisitions and stream and royalty financing transactions; the impact of issuances of additional common stock; 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. Third-party information: Certain information provided in this presentation has been provided to the Company by the operators of properties subject to our stream and royalty interests, or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third-party information and refers readers to the public reports filed by the operators for information regarding those properties. Cautionary Statement 2
NASDAQ: RGLD | DisciplineEfficiency 20+ Year Track Record Cash flow generation Quickly delevering Embedded growth Diverse portfolio Strong margins Lean structure Strategic capital allocation Equity stewardship Dividend returns 3 Performance
NASDAQ: RGLD | $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $0 $50 $100 $150 $200 $250 12 months Jun-30-2013 12 months Jun-30-2014 12 months Jun-30-2015 12 months Jun-30-2016 12 months Jun-30-2017 GoldPriceinUsDollars CashfromOperations Cash From Operations Average Gold Price (Kitco) Cash from operations(OCF) vs gold price, FY13-17 OCF average = $170m per year $266m Operating cash flow up 56% over prior year Cash Flow GenerationPerformance 4 FY16 Revenue $359m Mount Milligan $11.3 Pueblo Viejo $51.9 Andacollo $11.0 Peñasquito $3.9 Wassa Prestea $2.1 Cortez $0.4 Other $0.4 Incremental $m revenue by property FY16 to FY17 FY17 Revenue $441m Pueblo Viejo was a major revenue driver
NASDAQ: RGLD | $45m Repaid March 31, 2017 $50m Repaid June 30, 2017 $50m Repaid Sept 5, 2017 Quickly DeleveringPerformance 5 <1.7x net debt to EBITDA,1 liquidity of over $850 million, both at 6-30-17 1 The term “EBITDA” is a non-GAAP financial measure. See slide 18 for additional information.
NASDAQ: RGLD | Sequential growth catalyst in each of calendar 2017, 2018, and 2019 Rainy River - 2017 1 Information has been provided to the Company by the operators of those properties or is publicly available information filed by these operators. Please see page 2. 2 See slide 17 for details on the scope of Royal Gold’s streaming and these royalty interests. Rainy River - 2017 Embedded Growth Rainy River - 2017 New Gold: First production expected September 20171 Stream on 6.5% of gold and 60% of silver1 3.9Moz gold in reserves; 10.0Moz silver in reserves1,2 Rainy River - 2017 Performance 6 Cortez Crossroads - 2018 Barrick: CY18 startup expected1 and stripping underway 4.43% NVR & 5% GSR royalty2 3.2Moz gold in reserves1 Peñasquito Leach - 2019 Goldcorp: CQ4 2018 commissioning currently expected1 Progress at 9/25/17: 40% complete1 Expected to add 1Moz gold, 44Moz silver to mine life1
NASDAQ: RGLD | 1 Producing properties not highlighted in the map include Allan, Bald Mountain, Canadian Malartic, Dolores, Don Mario, El Limon, Gold Hill, Goldstrike, Gwalia, Holt, King of the Hills, Las Cruces, Leeville, Marigold, Meekathara, Mulatos, Rambler North, Robinson, Ruby Hill, Skyline, Soledad Mountain, South Laverton, Southern Cross, Taparko, Twin Creeks, Wharf, Williams, and others. 2 In FY2017. Diverse PortfolioEfficiencyEfficiency 7 195 property interests, of which 39 are producing1 and 22 are in development 93% revenue from precious metals2 88% of revenue from Canada, Chile, US, Mexico and Dominican Republic2
NASDAQ: RGLD | Our gross margin is within the top 6% of S&P 500 constituents Strong MarginsEfficiency Source: S&P Capital iQ. Gross margin calculated as total revenue less cost of goods sold, divided by total revenue. A total of 456 of the S&P 500 constituents reported positive gross margin in the last 12 months. 8 0% 20% 40% 60% 80% 100% NYSE:FLR NYSE:ADM NasdaqGS:ESRX NYSE:LLL NYSE:SLB NasdaqGS:EXPD NasdaqGS:PCAR NYSE:FTI NYSE:TXT NYSE:CNC NYSE:LYB NYSE:UPS NYSE:GD NYSE:DLPH NYSE:ADS NYSE:HRL NYSE:ALL NasdaqGS:PDCO NYSE:CSRA NYSE:PH NYSE:CMI NYSE:DTE NYSE:DVA NasdaqGS:HSIC NYSE:HPE NYSE:DAL NYSE:TRV NYSE:IP NYSE:CAG NYSE:CB NasdaqGS:AAL NYSE:ACN NYSE:PRU NYSE:CI NYSE:APH NasdaqGS:DISH NYSE:HD NasdaqGS:MU NYSE:LNT NYSE:FCX NasdaqGS:ULTA NYSE:WEC NYSE:LUV NasdaqGS:QRVO NYSE:ALB NYSE:WM NYSE:CMS NYSE:EIX NYSE:SIG NYSE:DGX NYSE:M NYSE:AEP NYSE:GLW NYSE:AON NYSE:CCL NYSE:UHS NYSE:ROK NasdaqGS:ADP NYSE:YUM NYSE:FL NYSE:ALLE NasdaqGS:AMAT NYSE:NKE NasdaqGS:VIAB NYSE:DIS NYSE:CHD NYSE:PNW NYSE:IBM NYSE:DUK NYSE:MSI NYSE:VFC NYSE:STZ NYSE:LVLT NYSE:SNA NYSE:AZO NYSE:MON NasdaqGS:XRAY NasdaqGS:REGN NYSE:NEE NasdaqGS:GRMN NYSE:CTL NYSE:RMD NYSE:ORCL NYSE:KORS NYSE:DPS NYSE:CL NasdaqGS:INFO NasdaqGS:NTAP NasdaqGS:INTC NYSE:TIF NasdaqGS:CSCO NasdaqGS:VRSK NasdaqGS:HOLX NasdaqGS:MNST NasdaqGS:AKAM NYSE:EQR NYSE:AMT NasdaqGS:CMCS.A NasdaqGS:WYNN NYSE:EQT NYSE:ARE NYSE:MCO NYSE:ZBH NYSE:LLY NYSE:PLD NYSE:ABBV NYSE:PFE NYSE:SPG NasdaqGS:FFIV NasdaqGS:CTXS NasdaqGS:CDNS NYSE:GS NasdaqGS:CELG NYSE:DFS Gross margin, last 12 months S&P 500 Constituent RGLD, 80% margin GrossMargin
NASDAQ: RGLD | Our revenue per employee is higher than 497 of the S&P 500 Lean StructureEfficiency Source: S&P Capital iQ. Revenue per employee calculated as total reported revenue for the last 12 months, divided by total reported employees. 498 of the S&P 500 companies report total employees. $0 $10,000,000 $20,000,000 NasdaqGS:MAR NYSE:APH NYSE:UHS NYSE:M NYSE:LEG NYSE:OMC NasdaqGS:FAST NYSE:KSS NYSE:AJG NasdaqGS:FISV NasdaqGS:IDXX NasdaqGS:INFO NasdaqGS:NAVI NYSE:UTX NYSE:SEE NYSE:IT NYSE:WFC NYSE:DPS NYSE:K NYSE:TMO NYSE:ALK NYSE:JPM NYSE:BAC NYSE:CAT NYSE:ADS NYSE:UAA NYSE:GPN NYSE:TAP NYSE:AMG NasdaqCM:AMD NYSE:NI NYSE:VNO NYSE:BF.B NYSE:PEG NasdaqGS:PDCO NYSE:CHD NYSE:UNH NYSE:AIG NYSE:TRV NasdaqGS:SNI NYSE:HPQ NasdaqGS:VRSN NYSE:CF NYSE:PXD NYSE:NRG NYSE:NBL NYSE:DHI NasdaqGS:CBOE NasdaqGS:GILD NYSE:VTR $25m (REIT) $1m $1.3m $3m $2m $19m$11m (REIT) S&P500Constituent Revenue per employee 9
NASDAQ: RGLD | We maintained a strong balance sheet and deployed capital opportunistically Strategic Capital AllocationDiscipline 10 Rainy River Cortez Crossroads Gold price at the time of recent transaction agreements GoldPriceinUSDollars $0 $100 $200 $300 $400 $500 $600 $700 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Nov-01-2011 Nov-01-2012 Nov-01-2013 Nov-01-2014 Nov-01-2015 Nov-01-2016 $USDMillionsofConsideration Cortez Crossroads Royalty Pueblo Viejo Wassa & Prestea Andacollo Rainy River Sep-1-2017
NASDAQ: RGLD | -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2015-2017 Net revenue3 on capital 2015-2017 Capital Deployed Net Revenue Current Weighted Avg Remaining Mine Life 1,3 RemainingYearsofMineLife 20 15 10 5 0 2 17 years $USDMillions -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1991-2014 Net revenue on capital 1991-2014 Capital Deployed Net Revenue Current Weighted Avg Remaining Mine Life 1 2 12 years 20 15 10 5 0 RemainingYearsofMineLife Strong net revenue on capital deployed, with significant mine life remaining Strategic Capital AllocationDiscipline 11 1 Net revenue calculated as gross revenue less cost of goods sold (COGS) for streaming payments. 2 Weighted average remaining mine life calculated by weighting each property’s current remaining mine life in years by the proven and probable reserves for the year ended 2016, based on data provided by the operators of those mines. 3 Includes Andacollo, Pueblo Viejo, Wassa and Prestea only
NASDAQ: RGLD | 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 RoyalGold,Inc. *TorexGoldResourcesInc EndeavourMiningCorporation RandgoldResourcesLimited OsiskoGoldRoyaltiesLtd. *SSRMiningInc. FortunaSilverMinesInc. *PanAmericanSilverCorp. SandstormGoldLtd. KlondexMinesLtd. FirstMajesticSilverCorp. KirklandLakeGoldLtd. GuyanaGoldfieldsInc. DetourGoldCorporation Franco-NevadaCorporation *CoeurMining,Inc. *AgnicoEagleMinesLimited *CompañíadeMinasBuenaventuraS.A.A. CenterraGoldInc. AlamosGoldInc. *McEwenMiningInc. TahoeResourcesInc. SEMAFOInc. *HeclaMiningCompany *AngloGoldAshantiLimited WheatonPreciousMetalsCorp. IAMGOLDCorporation HarmonyGoldMiningCompanyLimited RegisResourcesLimited StBarbaraLimited *NewmontMiningCorporation NewGoldInc. IndependenceGroupNL NorthernStarResourcesLimited OceanaGoldCorporation EldoradoGoldCorporation ResoluteMiningLimited *NewcrestMiningLimited SaracenMineralHoldingsLimited *GoldFieldsLimited *GoldcorpInc. SibanyeGoldLimited YamanaGoldInc. B2GoldCorp. *CentaminPlc BarrickGoldCorporation *KinrossGoldCorporation EvolutionMiningLimited GDX constituents sorted by shares outstanding MillionsofSharesOutstanding atJune30,2017 RGLD has 14 million outstanding sharesless than the next-highest GDX member Equity StewardshipDiscipline 12* Company with an incorporation date that pre-dates Royal Gold, which was incorporated in 1981.
NASDAQ: RGLD | Rainy River Cortez Crossroads 20% CAGR in dividends per share since 2001, and currently equates to $0.96 per share, a 1.1% annual yield, and an average 23% OCF yield1 Dividend ReturnsDiscipline 1 Calculated as reported cash from operations divided by common dividends paid during the same period. 2017 reflects trailing twelve months as reported through June 30, 2017. 13 27% 29% 12% 21% 19% 25% 26% 23% 34% 30% 15% 18% 25% 36% 29% 35% 23% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) AnnualDividendsPerShare GoldPriceinUSDollars
NASDAQ: RGLD | Highly Skilled Board Leadership Jamie Sokalsky Independent Director; Former President and CEO, Barrick Gold Corporation Kevin McArthur Independent Director; Executive Chair, Tahoe Resources and Former CEO and Director, Goldcorp, Inc. Tony Jensen Director; President and CEO, Royal Gold, Inc. M. Craig Haase Independent Director; Former EVP and Chief Legal Officer, Franco- Nevada Mining Corporation William Hayes Independent Director and Chairman of the Board; Former EVP, Placer Dome Inc. Ronald J. Vance Independent Director; Former SVP Corporate Development, Teck Resources Christopher M.T. Thompson Independent Director; Former Chairman and CEO, Gold Fields Limited Sybil Veenman Independent Director; Former Senior Vice President and General Counsel, Barrick Gold Corporation Discipline 14
NASDAQ: RGLD | Source: YCharts 20+ Years of Solid PerformancePerformance 15 -200 0 200 400 600 800 1,000 1,200 1,400 Gold Price in US Dollars % Change Royal Gold Total Return Price % Change S&P 500 Total Return Level % Change RGLD +1261% S&P 500 +287% Gold Price +313% % % % % % % % % % 20-year total shareholder return PercentageChangeinTotalReturnPrice Our focus is total shareholder return (TSR)
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
NASDAQ: RGLD | Portfolio of Assets 1 Includes largest royalties by revenue. An additional 27 royalties from producing mines in Royal Gold’s portfolio not shown. 2 Production estimates are received from our operators and there can be no assurance that production estimates received from our operators will be achieved. Please refer to our cautionary language regarding forward-looking statements on slide 2, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal 2017 10-K for information regarding factors that could affect actual results. 17 Streams (at June 30, 2017) Operator Mine Metal RGLD interest until RGLD interest until RGLD interest until RGLD pays (per unit) until RGLD pays (per ounce) until Reserve Remaining Mine Life (Years) CY2017 Operator Guidance (oz/lbs)2 Centerra Gold Mount Milligan Gold 35% LOM (life of mine) $435 LOM 21 Low end of 260,000-290,000 Centerra Gold Mount Milligan Copper 18.75% LOM - - - - 15% of spot LOM - - 21 Low end of 55- 65Mlbs Barrick Pueblo Viejo Gold 7.50% 990koz 3.75% remaining LOM - - 30% of spot 550koz 60% of spot remaining LOM 25+ 625,000-650,000 Barrick Pueblo Viejo Silver 75% at fixed 70% recovery 50Moz 37.50% remaining LOM - - 30% of spot 23.1Moz 60% of spot - 25+ Not provided New Gold Rainy River Gold 6.50% 230koz 3.25% remaining LOM - - 25% of spot - - - 14 Production expected to begin in 2017 New Gold Rainy River Silver 60% 3.1Moz 30% remaining LOM - - 25% of spot - - - 14 Production expected to begin in 2017 Teck Andacollo Gold 100% 900koz 50% remaining LOM - - 15% of spot - - - 17 TBA Golden Star Wassa/ Prestea Gold 9.25% 12/31/2017 10.50% 240koz 5.50% LOM 20% of spot 240koz 30% of spot thereafter 6 Wassa 4 Prestea 255,000-280,000 Key Royalties1 (at June 30, 2017) RGLD interest Until Goldcorp Peñasquito Gold Silver Lead Zinc 2.00% LOM 10 410,0000 (gold) Barrick Cortez Gold Various LOM 12 TBA Agnico-Eagle & Yamana Malartic Gold 1-1.5% LOM 10 Not available Newmont Leeville Gold 1.80% LOM 11 Not available KGHM Robinson Gold Copper 3.00% LOM 5 Not available Kirkland Lake Holt Gold 0.00013 x the gold price LOM 8 Not available Alamos Gold Mulatos Gold 1-5% capped; expect to reach within 5 years 5 150,000-160,000
NASDAQ: RGLD | Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our management uses Adjusted EBITDA and Adjusted Net Income as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that these measures are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and non-core items, which can vary substantially from company to company depending upon accounting methods, book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment. Adjusted EBITDA Reconciliation Adjusted EBITDA is defined by the Company as net income (loss) 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 loss (income) of consolidated subsidiaries, interest and other income, and any royalty portfolio restructuring gains or losses. Other companies may define and calculate this measure differently. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, shareholder dividends and to service the Company's debt obligations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. See the table below for a reconciliation of net income to Adjusted EBITDA. Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation For The Three Months Ended Fiscal Years Ended June 30, June 30, (Unaudited, in thousands) (Unaudited, in thousands) 2017 2016 2017 2016 Net income (loss) 16,836$ 18,082$ 92,425$ (82,438)$ Depreciation, depletion and amortization 39,851 35,391 159,636 141,108 Non-cash employee stock compensation 3,224 2,250 9,983 10,039 Impairment of stream and royalty interests and royalty receivables - - - 98,588 Interest and other, net 10,067 5,409 27,075 26,574 Income tax expense 7,717 5,025 26,441 60,680 Non-controlling interests in operating loss of consolidated subsidiaries 3,422 2,357 10,628 5,289 Adjusted EBITDA 81,117$ 68,514$ 326,188$ 259,840$ 18
NASDAQ: RGLD | Good mines get better: many of our interests are at properties that have a robust reserve profile years, or even decades after startup Opportunistic Capital Allocation 19 1 Includes proceeds from sale of the Andacollo Royalty; see Andacollo Stream. 2 The Mulatos royalty is subject to a 2.0 million ounce cap on gold production. There have been approximately 1.71 million ounces of cumulative production as of June 30, 2017. 0 5 10 15 20 25 $- $200 $400 $600 $800 $1,000 $USMillions Initial investment Cumulative net revenue through June 30, 2017 Estimated remaining mine life
1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD

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Denver gold forum screen final

  • 1.
    NASDAQ: RGLD Tony Jensen Presidentand CEO September 25, 2017
  • 2.
    NASDAQ: RGLD | This presentationcontains 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: ability to maintain solid cash flow generation and quickly deliver and enjoy embedded growth, a diverse portfolio, strong margins, lean structure, opportunistic capital allocation, capital stewardship and dividend returns in line with historical track records; sequential growth catalysts and estimated start-up and production at the Rainy River, Cortez Crossroads and Peñasquito Pyrite Leach projects in calendar 2017, 2018 and 2019, respectively; estimated revenue and percentages of future revenue expected from the Company’s stream and royalty portfolio in the aggregate; a new phase of growth; mine life and reserves estimates and forecasts of throughput, recoveries and production from the operators of our stream and royalty interests; and the lack of additional funding requirements. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the risks inherent in the operation of mining properties; a decreased price environment for gold and other metals on which our stream and royalty interests are determined; performance of and production at properties, and variation of actual production from the production estimates and forecasts made by the operators of those stream and royalty properties from fiscal 2017 to fiscal 2020; decisions and activities of the Company’s management affecting margins, use of capital and changes in strategy; unexpected operating costs, decisions and activities of the operators of the Company’s stream and royalty properties; changes in operators’ mining and processing techniques or stream or royalty calculation methodologies; resolution of regulatory and legal proceedings; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties; revisions or inaccuracies in technical reports, reserve, resources and production estimates; changes in project parameters as plans of the operators are refined; the results of current or planned exploration activities; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments under stream or royalty agreements; the liquidity and future financial needs of the Company; economic and market conditions; the impact of future acquisitions and stream and royalty financing transactions; the impact of issuances of additional common stock; 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. Third-party information: Certain information provided in this presentation has been provided to the Company by the operators of properties subject to our stream and royalty interests, or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third-party information and refers readers to the public reports filed by the operators for information regarding those properties. Cautionary Statement 2
  • 3.
    NASDAQ: RGLD | DisciplineEfficiency 20+ YearTrack Record Cash flow generation Quickly delevering Embedded growth Diverse portfolio Strong margins Lean structure Strategic capital allocation Equity stewardship Dividend returns 3 Performance
  • 4.
    NASDAQ: RGLD | $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $0 $50 $100 $150 $200 $250 12 months Jun-30-2013 12months Jun-30-2014 12 months Jun-30-2015 12 months Jun-30-2016 12 months Jun-30-2017 GoldPriceinUsDollars CashfromOperations Cash From Operations Average Gold Price (Kitco) Cash from operations(OCF) vs gold price, FY13-17 OCF average = $170m per year $266m Operating cash flow up 56% over prior year Cash Flow GenerationPerformance 4 FY16 Revenue $359m Mount Milligan $11.3 Pueblo Viejo $51.9 Andacollo $11.0 Peñasquito $3.9 Wassa Prestea $2.1 Cortez $0.4 Other $0.4 Incremental $m revenue by property FY16 to FY17 FY17 Revenue $441m Pueblo Viejo was a major revenue driver
  • 5.
    NASDAQ: RGLD | $45m Repaid March 31,2017 $50m Repaid June 30, 2017 $50m Repaid Sept 5, 2017 Quickly DeleveringPerformance 5 <1.7x net debt to EBITDA,1 liquidity of over $850 million, both at 6-30-17 1 The term “EBITDA” is a non-GAAP financial measure. See slide 18 for additional information.
  • 6.
    NASDAQ: RGLD | Sequential growthcatalyst in each of calendar 2017, 2018, and 2019 Rainy River - 2017 1 Information has been provided to the Company by the operators of those properties or is publicly available information filed by these operators. Please see page 2. 2 See slide 17 for details on the scope of Royal Gold’s streaming and these royalty interests. Rainy River - 2017 Embedded Growth Rainy River - 2017 New Gold: First production expected September 20171 Stream on 6.5% of gold and 60% of silver1 3.9Moz gold in reserves; 10.0Moz silver in reserves1,2 Rainy River - 2017 Performance 6 Cortez Crossroads - 2018 Barrick: CY18 startup expected1 and stripping underway 4.43% NVR & 5% GSR royalty2 3.2Moz gold in reserves1 Peñasquito Leach - 2019 Goldcorp: CQ4 2018 commissioning currently expected1 Progress at 9/25/17: 40% complete1 Expected to add 1Moz gold, 44Moz silver to mine life1
  • 7.
    NASDAQ: RGLD | 1 Producingproperties not highlighted in the map include Allan, Bald Mountain, Canadian Malartic, Dolores, Don Mario, El Limon, Gold Hill, Goldstrike, Gwalia, Holt, King of the Hills, Las Cruces, Leeville, Marigold, Meekathara, Mulatos, Rambler North, Robinson, Ruby Hill, Skyline, Soledad Mountain, South Laverton, Southern Cross, Taparko, Twin Creeks, Wharf, Williams, and others. 2 In FY2017. Diverse PortfolioEfficiencyEfficiency 7 195 property interests, of which 39 are producing1 and 22 are in development 93% revenue from precious metals2 88% of revenue from Canada, Chile, US, Mexico and Dominican Republic2
  • 8.
    NASDAQ: RGLD | Our grossmargin is within the top 6% of S&P 500 constituents Strong MarginsEfficiency Source: S&P Capital iQ. Gross margin calculated as total revenue less cost of goods sold, divided by total revenue. A total of 456 of the S&P 500 constituents reported positive gross margin in the last 12 months. 8 0% 20% 40% 60% 80% 100% NYSE:FLR NYSE:ADM NasdaqGS:ESRX NYSE:LLL NYSE:SLB NasdaqGS:EXPD NasdaqGS:PCAR NYSE:FTI NYSE:TXT NYSE:CNC NYSE:LYB NYSE:UPS NYSE:GD NYSE:DLPH NYSE:ADS NYSE:HRL NYSE:ALL NasdaqGS:PDCO NYSE:CSRA NYSE:PH NYSE:CMI NYSE:DTE NYSE:DVA NasdaqGS:HSIC NYSE:HPE NYSE:DAL NYSE:TRV NYSE:IP NYSE:CAG NYSE:CB NasdaqGS:AAL NYSE:ACN NYSE:PRU NYSE:CI NYSE:APH NasdaqGS:DISH NYSE:HD NasdaqGS:MU NYSE:LNT NYSE:FCX NasdaqGS:ULTA NYSE:WEC NYSE:LUV NasdaqGS:QRVO NYSE:ALB NYSE:WM NYSE:CMS NYSE:EIX NYSE:SIG NYSE:DGX NYSE:M NYSE:AEP NYSE:GLW NYSE:AON NYSE:CCL NYSE:UHS NYSE:ROK NasdaqGS:ADP NYSE:YUM NYSE:FL NYSE:ALLE NasdaqGS:AMAT NYSE:NKE NasdaqGS:VIAB NYSE:DIS NYSE:CHD NYSE:PNW NYSE:IBM NYSE:DUK NYSE:MSI NYSE:VFC NYSE:STZ NYSE:LVLT NYSE:SNA NYSE:AZO NYSE:MON NasdaqGS:XRAY NasdaqGS:REGN NYSE:NEE NasdaqGS:GRMN NYSE:CTL NYSE:RMD NYSE:ORCL NYSE:KORS NYSE:DPS NYSE:CL NasdaqGS:INFO NasdaqGS:NTAP NasdaqGS:INTC NYSE:TIF NasdaqGS:CSCO NasdaqGS:VRSK NasdaqGS:HOLX NasdaqGS:MNST NasdaqGS:AKAM NYSE:EQR NYSE:AMT NasdaqGS:CMCS.A NasdaqGS:WYNN NYSE:EQT NYSE:ARE NYSE:MCO NYSE:ZBH NYSE:LLY NYSE:PLD NYSE:ABBV NYSE:PFE NYSE:SPG NasdaqGS:FFIV NasdaqGS:CTXS NasdaqGS:CDNS NYSE:GS NasdaqGS:CELG NYSE:DFS Gross margin, last 12 months S&P 500 Constituent RGLD, 80% margin GrossMargin
  • 9.
    NASDAQ: RGLD | Our revenueper employee is higher than 497 of the S&P 500 Lean StructureEfficiency Source: S&P Capital iQ. Revenue per employee calculated as total reported revenue for the last 12 months, divided by total reported employees. 498 of the S&P 500 companies report total employees. $0 $10,000,000 $20,000,000 NasdaqGS:MAR NYSE:APH NYSE:UHS NYSE:M NYSE:LEG NYSE:OMC NasdaqGS:FAST NYSE:KSS NYSE:AJG NasdaqGS:FISV NasdaqGS:IDXX NasdaqGS:INFO NasdaqGS:NAVI NYSE:UTX NYSE:SEE NYSE:IT NYSE:WFC NYSE:DPS NYSE:K NYSE:TMO NYSE:ALK NYSE:JPM NYSE:BAC NYSE:CAT NYSE:ADS NYSE:UAA NYSE:GPN NYSE:TAP NYSE:AMG NasdaqCM:AMD NYSE:NI NYSE:VNO NYSE:BF.B NYSE:PEG NasdaqGS:PDCO NYSE:CHD NYSE:UNH NYSE:AIG NYSE:TRV NasdaqGS:SNI NYSE:HPQ NasdaqGS:VRSN NYSE:CF NYSE:PXD NYSE:NRG NYSE:NBL NYSE:DHI NasdaqGS:CBOE NasdaqGS:GILD NYSE:VTR $25m (REIT) $1m $1.3m $3m $2m $19m$11m (REIT) S&P500Constituent Revenue per employee 9
  • 10.
    NASDAQ: RGLD | We maintaineda strong balance sheet and deployed capital opportunistically Strategic Capital AllocationDiscipline 10 Rainy River Cortez Crossroads Gold price at the time of recent transaction agreements GoldPriceinUSDollars $0 $100 $200 $300 $400 $500 $600 $700 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Nov-01-2011 Nov-01-2012 Nov-01-2013 Nov-01-2014 Nov-01-2015 Nov-01-2016 $USDMillionsofConsideration Cortez Crossroads Royalty Pueblo Viejo Wassa & Prestea Andacollo Rainy River Sep-1-2017
  • 11.
    NASDAQ: RGLD | -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2015-2017 Net revenue3on capital 2015-2017 Capital Deployed Net Revenue Current Weighted Avg Remaining Mine Life 1,3 RemainingYearsofMineLife 20 15 10 5 0 2 17 years $USDMillions -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1991-2014 Net revenue on capital 1991-2014 Capital Deployed Net Revenue Current Weighted Avg Remaining Mine Life 1 2 12 years 20 15 10 5 0 RemainingYearsofMineLife Strong net revenue on capital deployed, with significant mine life remaining Strategic Capital AllocationDiscipline 11 1 Net revenue calculated as gross revenue less cost of goods sold (COGS) for streaming payments. 2 Weighted average remaining mine life calculated by weighting each property’s current remaining mine life in years by the proven and probable reserves for the year ended 2016, based on data provided by the operators of those mines. 3 Includes Andacollo, Pueblo Viejo, Wassa and Prestea only
  • 12.
    NASDAQ: RGLD | 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 RoyalGold,Inc. *TorexGoldResourcesInc EndeavourMiningCorporation RandgoldResourcesLimited OsiskoGoldRoyaltiesLtd. *SSRMiningInc. FortunaSilverMinesInc. *PanAmericanSilverCorp. SandstormGoldLtd. KlondexMinesLtd. FirstMajesticSilverCorp. KirklandLakeGoldLtd. GuyanaGoldfieldsInc. DetourGoldCorporation Franco-NevadaCorporation *CoeurMining,Inc. *AgnicoEagleMinesLimited *CompañíadeMinasBuenaventuraS.A.A. CenterraGoldInc. AlamosGoldInc. *McEwenMiningInc. TahoeResourcesInc. SEMAFOInc. *HeclaMiningCompany *AngloGoldAshantiLimited WheatonPreciousMetalsCorp. IAMGOLDCorporation HarmonyGoldMiningCompanyLimited RegisResourcesLimited StBarbaraLimited *NewmontMiningCorporation NewGoldInc. IndependenceGroupNL NorthernStarResourcesLimited OceanaGoldCorporation EldoradoGoldCorporation ResoluteMiningLimited *NewcrestMiningLimited SaracenMineralHoldingsLimited *GoldFieldsLimited *GoldcorpInc. SibanyeGoldLimited YamanaGoldInc. B2GoldCorp. *CentaminPlc BarrickGoldCorporation *KinrossGoldCorporation EvolutionMiningLimited GDX constituentssorted by shares outstanding MillionsofSharesOutstanding atJune30,2017 RGLD has 14 million outstanding sharesless than the next-highest GDX member Equity StewardshipDiscipline 12* Company with an incorporation date that pre-dates Royal Gold, which was incorporated in 1981.
  • 13.
    NASDAQ: RGLD | Rainy River CortezCrossroads 20% CAGR in dividends per share since 2001, and currently equates to $0.96 per share, a 1.1% annual yield, and an average 23% OCF yield1 Dividend ReturnsDiscipline 1 Calculated as reported cash from operations divided by common dividends paid during the same period. 2017 reflects trailing twelve months as reported through June 30, 2017. 13 27% 29% 12% 21% 19% 25% 26% 23% 34% 30% 15% 18% 25% 36% 29% 35% 23% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 Dividend Per Share Operating Cash Flow Yield Average Gold Price (source: Kitco) AnnualDividendsPerShare GoldPriceinUSDollars
  • 14.
    NASDAQ: RGLD | Highly SkilledBoard Leadership Jamie Sokalsky Independent Director; Former President and CEO, Barrick Gold Corporation Kevin McArthur Independent Director; Executive Chair, Tahoe Resources and Former CEO and Director, Goldcorp, Inc. Tony Jensen Director; President and CEO, Royal Gold, Inc. M. Craig Haase Independent Director; Former EVP and Chief Legal Officer, Franco- Nevada Mining Corporation William Hayes Independent Director and Chairman of the Board; Former EVP, Placer Dome Inc. Ronald J. Vance Independent Director; Former SVP Corporate Development, Teck Resources Christopher M.T. Thompson Independent Director; Former Chairman and CEO, Gold Fields Limited Sybil Veenman Independent Director; Former Senior Vice President and General Counsel, Barrick Gold Corporation Discipline 14
  • 15.
    NASDAQ: RGLD | Source: YCharts 20+Years of Solid PerformancePerformance 15 -200 0 200 400 600 800 1,000 1,200 1,400 Gold Price in US Dollars % Change Royal Gold Total Return Price % Change S&P 500 Total Return Level % Change RGLD +1261% S&P 500 +287% Gold Price +313% % % % % % % % % % 20-year total shareholder return PercentageChangeinTotalReturnPrice Our focus is total shareholder return (TSR)
  • 16.
    1660 Wynkoop Street,#1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD
  • 17.
    NASDAQ: RGLD | Portfolio ofAssets 1 Includes largest royalties by revenue. An additional 27 royalties from producing mines in Royal Gold’s portfolio not shown. 2 Production estimates are received from our operators and there can be no assurance that production estimates received from our operators will be achieved. Please refer to our cautionary language regarding forward-looking statements on slide 2, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal 2017 10-K for information regarding factors that could affect actual results. 17 Streams (at June 30, 2017) Operator Mine Metal RGLD interest until RGLD interest until RGLD interest until RGLD pays (per unit) until RGLD pays (per ounce) until Reserve Remaining Mine Life (Years) CY2017 Operator Guidance (oz/lbs)2 Centerra Gold Mount Milligan Gold 35% LOM (life of mine) $435 LOM 21 Low end of 260,000-290,000 Centerra Gold Mount Milligan Copper 18.75% LOM - - - - 15% of spot LOM - - 21 Low end of 55- 65Mlbs Barrick Pueblo Viejo Gold 7.50% 990koz 3.75% remaining LOM - - 30% of spot 550koz 60% of spot remaining LOM 25+ 625,000-650,000 Barrick Pueblo Viejo Silver 75% at fixed 70% recovery 50Moz 37.50% remaining LOM - - 30% of spot 23.1Moz 60% of spot - 25+ Not provided New Gold Rainy River Gold 6.50% 230koz 3.25% remaining LOM - - 25% of spot - - - 14 Production expected to begin in 2017 New Gold Rainy River Silver 60% 3.1Moz 30% remaining LOM - - 25% of spot - - - 14 Production expected to begin in 2017 Teck Andacollo Gold 100% 900koz 50% remaining LOM - - 15% of spot - - - 17 TBA Golden Star Wassa/ Prestea Gold 9.25% 12/31/2017 10.50% 240koz 5.50% LOM 20% of spot 240koz 30% of spot thereafter 6 Wassa 4 Prestea 255,000-280,000 Key Royalties1 (at June 30, 2017) RGLD interest Until Goldcorp Peñasquito Gold Silver Lead Zinc 2.00% LOM 10 410,0000 (gold) Barrick Cortez Gold Various LOM 12 TBA Agnico-Eagle & Yamana Malartic Gold 1-1.5% LOM 10 Not available Newmont Leeville Gold 1.80% LOM 11 Not available KGHM Robinson Gold Copper 3.00% LOM 5 Not available Kirkland Lake Holt Gold 0.00013 x the gold price LOM 8 Not available Alamos Gold Mulatos Gold 1-5% capped; expect to reach within 5 years 5 150,000-160,000
  • 18.
    NASDAQ: RGLD | Non-GAAP FinancialMeasures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our management uses Adjusted EBITDA and Adjusted Net Income as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that these measures are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and non-core items, which can vary substantially from company to company depending upon accounting methods, book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment. Adjusted EBITDA Reconciliation Adjusted EBITDA is defined by the Company as net income (loss) 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 loss (income) of consolidated subsidiaries, interest and other income, and any royalty portfolio restructuring gains or losses. Other companies may define and calculate this measure differently. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, shareholder dividends and to service the Company's debt obligations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. See the table below for a reconciliation of net income to Adjusted EBITDA. Non-GAAP Financial Measures and Adjusted EBITDA Reconciliation For The Three Months Ended Fiscal Years Ended June 30, June 30, (Unaudited, in thousands) (Unaudited, in thousands) 2017 2016 2017 2016 Net income (loss) 16,836$ 18,082$ 92,425$ (82,438)$ Depreciation, depletion and amortization 39,851 35,391 159,636 141,108 Non-cash employee stock compensation 3,224 2,250 9,983 10,039 Impairment of stream and royalty interests and royalty receivables - - - 98,588 Interest and other, net 10,067 5,409 27,075 26,574 Income tax expense 7,717 5,025 26,441 60,680 Non-controlling interests in operating loss of consolidated subsidiaries 3,422 2,357 10,628 5,289 Adjusted EBITDA 81,117$ 68,514$ 326,188$ 259,840$ 18
  • 19.
    NASDAQ: RGLD | Good minesget better: many of our interests are at properties that have a robust reserve profile years, or even decades after startup Opportunistic Capital Allocation 19 1 Includes proceeds from sale of the Andacollo Royalty; see Andacollo Stream. 2 The Mulatos royalty is subject to a 2.0 million ounce cap on gold production. There have been approximately 1.71 million ounces of cumulative production as of June 30, 2017. 0 5 10 15 20 25 $- $200 $400 $600 $800 $1,000 $USMillions Initial investment Cumulative net revenue through June 30, 2017 Estimated remaining mine life
  • 20.
    1660 Wynkoop Street,#1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD