Royal Gold (RGLD) Virtual Non-Deal Roadshow summary

Business overview and strategy

• Operates a high-margin, low-risk precious metals streaming and royalty business with consistent cash flows and a focus on per-share growth.

• Maintains a diversified portfolio, primarily in gold, with 75% of revenue from gold and 53% from Canada, USA, and Australia.

• Prioritizes internal funding for growth, avoiding equity dilution and maintaining strong liquidity, with a $1 billion revolving credit facility.

• Has a 23-year record of consecutive annual dividend increases and is the only precious metals company in the S&P High Yield Dividend Aristocrats Index.

• Emphasizes disciplined capital allocation, robust due diligence, and a patient approach to acquisitions.

Financial performance and capital allocation

• Repaid $325 million in debt in 2023 and expects to be debt-free early in Q3 2024.

• Q1 2024 results: ~$140 million operating cash flow, $47 million earnings, 79% EBITDA margin.

• Uses operating cash flow for debt repayment and dividends, with equity issuance as a last resort.

• Recent acquisitions funded through cash and credit facility, not equity, preserving shareholder value.

Portfolio and growth opportunities

• Holds a broad, diversified portfolio with 37 revenue-generating mines and exposure to 140 non-producing assets at various development stages.

• Portfolio weighted toward mining-friendly jurisdictions; over 50% of revenue from Nevada, British Columbia, and Western Australia.

• Organic growth from assets like Mara Rosa, Côté Gold, and Goldrush, with new production expected at Manh Choh (2024), Back River (2025), and Great Bear (late decade).

• Recent $1.2 billion deployed on six major transactions in safe jurisdictions, targeting long-term production and exploration upside.