Royal Gold CEO At BoaML 18th Annual Canada Mining Conference (Transcript)

Also during our fiscal year, gold accounted for 68% of our revenue and total precious metal revenue was 74% and of the non-precious metal revenue Voisey’s Bay accounted for more than half of that figure. Our gold will always be to increase precious metal base revenue and with the revenue expected to be generated by Pascua and Mt. Milligan over the next few years. We should see gold price revenue continue to move up.

I mentioned the political jurisdictions from which we generate revenue, Chile and Canada account for almost half of our revenue with Mexico in the US accounting for another 38%. And if we adding Pascua and Mt. Milligan to the total, this will also increase the contribution from our top two host countries and further enhance the political risk profile of our revenue stream.

The industry wide we're hearing about cost pressures both from an operating and a capital perspective, you’ve seen it in our own portfolio at Pascua and Mt. Milligan and then at a recent (inaudible) presentation showed that almost 85% of what they called mega projects have seen cost overruns of some scope.

Now we don't have direct exposure to these over runs in terms of the investment returns obviously except with respect to delays, nor do we need to allocate resources to address these issues. In fact, one might say investing in a royalty or streaming company can offer a hedge against higher capital cost and since the cost over runs can create an opportunity for us to invest.

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