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Royal Gold's Management Presents At Bank Of America Merrill Lynch Global Metals, Mining & Steel Conference (Transcript)

Royal Gold, Inc. (RGLD)

Bank of America Merrill Lynch Global Metals, Mining & Steel Conference Call

May 16, 2012 4:45 pm ET

Executives

Stefan L. Wenger – Chief Financial Officer

Analysts

Michael Jalonen – Bank of America/Merrill Lynch

Presentation



Michael Jalonen – Bank of America/Merrill Lynch

And continuing on in the royalty environment, very happy to have Royal Gold. Joining us from Royal Gold is, like Franco-Nevada involved more in the precious metals, gold streams and royalties. Presenting from Royal Gold is Stefan Wenger, who is the CFO and he has been in this position since 2006, but was been with Royal Gold since 2003. And Stefan Wenger without further ado, I’ll past it on to yourself.

Stefan L. Wenger

Well, good afternoon and I’d like to thank the Bank of America/Merrill Lynch for having us here at the conference today. And Mike thanks for the very nice introduction. Before I start, I’d just like to note that I will be making forward-looking statements today and I’d ask that you make yourself familiar with our Safe Harbor statement.

Going to divide the talk today into three basic categories, we spend a little bit of time talking about our company performance, financial position in revenues and let’s spend quite as much time on the efficient business model, you’ve heard Franco-Nevada in several weed but we’re very similar in that regard. And I do want to mention our reserves, which we just announced with our third quarter earnings release recently.

And then I’ll move on and talk a bit about our five cornerstone assets. Looking at our financial position, while we’ve been very active in recent years and we funded part of that growth with the equity market. We still just have under 60 million shares outstanding for a $3.8 billion market cap company. And as of the end of March, we had a $183 million of cash on hand. We did fill up the cash position during the quarter with an offering, worry to recapitalize the company following two deals that we did in December of 2011.

And as we look further down our balance sheet, we do have debt outstanding of $114 million. To put that into perspective, we could almost pay that offer two quarters of our operating cash flow and the debt is at a very low cost of LIBOR plus 1.75%. So it’s a nice piece of capital to our structure. In addition to our cash, we have $225 million available under our revolving credit facility and that’s fully available today to give us nearly over $400 million of resources available to fund future acquisitions.

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