EX-99.2 3 v343569_ex99-2.htm EXHIBIT 99.2

 

  TABLE 1 Exhibit 99.2

Royal Gold’s Royalty Portfolio

Calendar Year 2013 Production Estimates 1,2

 

PROPERTY ROYALTY OPERATOR METAL

PRODUCTION

ESTIMATES

UNITED STATES
Bald Mountain 1.75% to 2.5% NSR 3 Barrick Gold 44,000 oz
Cortez - GSR1 and GSR2 0.40% to 5.0%  GSR 4 Barrick Gold 64,000 oz
Cortez - GSR3 0.71% GSR Barrick Gold 64,000 oz
Cortez - NVR1 0.39% NVR Barrick Gold 53,000 oz
Gold Hill 1.0% to 2.0% NSR 5,6 Kinross/Barrick Gold 50,000 to 60,000 oz
Gold Hill 1.0% to 2.0% NSR 5,6 Kinross/Barrick Silver 80,000 to 90,000 oz
Goldstrike (SJ Claims) 0.9% NSR Barrick Gold 383,000 oz
Leeville 1.8% NSR Newmont Gold 228,000 oz
Marigold 2.0% NSR Goldcorp/Barrick Gold 100,000 oz 7
Pinson 3.0% NSR – Cordilleran 8,9
2.94% NSR – Rayrock 8,10
Atna Resources Gold 65,000 to 70,000 oz
Ruby Hill 3.0% NSR Barrick Gold 91,000 oz
Twin Creeks 2.0% GV Newmont Gold 3,000 oz
Wharf 0.0% to 2.0% NSR 11 Goldcorp Gold 55,000 to 60,000 oz
CANADA
Canadian Malartic 1.0% to 1.5% NSR 12 Osisko Gold 409,000 oz 13
Holt 0.00013 x Au price St Andrew
Goldfields
Gold 52,250 to 57,750 oz 14
Mt. Milligan 52.25% of the payable gold 15 Thompson Creek Gold Q3/Q4 16

 

 
 

 

TABLE 1 (cont.)

Royal Gold’s Royalty Portfolio

Calendar Year 2013 Production Estimates 1,2

 

PROPERTY ROYALTY OPERATOR METAL

PRODUCTION

ESTIMATES

MEXICO
Dolores 3.25% NSR Pan American Silver Gold 63,500 to 68,000 oz
Dolores 2.0% NSR Pan American Silver Silver 3.25 to 3.45 million oz
El Chanate 2.0% to 4.0% NSR 17 AuRico Gold Gold 17,000 oz 18
Mulatos 1.0% to 5.0% NSR 19 Alamos Gold 180,000 to 200,000 oz
Peñasquito 2.0% NSR Goldcorp Gold 360,000 to 400,000 oz 20
Peñasquito 2.0% NSR Goldcorp Silver 20 to 21 million oz 20
Peñasquito 2.0% NSR Goldcorp Lead 145 to 160 million lbs 20
Peñasquito 2.0% NSR Goldcorp Zinc 285 to 305 million lbs 20
CENTRAL AND SOUTH AMERICA
Andacollo 21 75% of payable gold (NSR) Teck Gold 63,000 oz 20
Don Mario 3.0% NSR Orvana Gold 12,000 oz 20,22
Don Mario 3.0% NSR Orvana Silver 650,000 oz 20,22
Don Mario 3.0% NSR Orvana Copper 12 million lbs 20,22
El Limon 3.0% NSR B2Gold Gold 54,000 to 58,000 oz

AUSTRALIA
Gwalia Deeps 1.5% NSR St Barbara Gold 175,000 to 190,000 oz 23
King of the Hills 1.5% NSR St Barbara Gold 55,000 to 60,000 oz 23
Meekatharra Gold Project (Yaloginda) 0.45% NSR Reed Resources Gold 100,000 to 150,000 oz
South Laverton 1.5% NSR Saracen Gold 125,000 to 135,000 oz 23
AFRICA
Inata 2.5% GSR Avocet Gold 135,000 oz
Taparko 2.0% GSR High River Gold 127,000 oz
EUROPE
Las Cruces 1.5% NSR Inmet Copper 151 to 159 million lbs 24

 

 
 

 

FOOTNOTES TO TABLE 1

 

1Reported production is subject to our royalty interests, as reported to us by the operators of the mines, unless otherwise noted.

 

2.The estimates and production reports are prepared by the operators of the mining properties. Royal Gold does not participate in the preparation or verification of the operators’ estimates or production reports and has not independently assessed or verified the accuracy of such information. Please refer to our cautionary statement regarding forward-looking statements and to the risk factors identified in our Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission for information regarding factors that could affect actual results.

 

3NSR sliding-scale schedule (price of gold per ounce – royalty rate): Below $375 – 1.75%; >$375 to $400 – 2.0%; >$400 to $425 – 2.25%; $425 and higher – 2.5%. All price points are stated in 1986 dollars and are subject to adjustment in accordance with a blended index comprised of labor, diesel fuel, industrial commodities, and mining machinery.

 

4GSR sliding-scale schedule (price of gold per ounce – royalty rate): Below $210 – 0.40%; $210 to $229.99 – 0.50%; $230 to $249.99 – 0.75%; $250 to $269.99 – 1.30%; $270 to $309.99 – 2.25%; $310 to $329.99 – 2.60%; $330 to $349.99 – 3.00%; $350 to $369.99 – 3.40%; $370.00 to 389.99 – 3.75%; $390 to $409.99 – 4.0%; $410 to $429.99 – 4.25%; $430 to $449.99 – 4.50%; $450 to $469.99 – 4.75%; $470 and higher – 5.00%.

 

5Round Mountain, a joint venture between Kinross and Barrick, has the right, at any time, to purchase the royalty interest for $10.0 million less any royalty payments paid prior to the purchase option being exercised. The royalty is subject to a minimum royalty payment of $100,000 per year, which is capped at $1.0 million. As of March 31, 2013, minimal royalty payments totaling $975,000 have been received. Once all royalty payments and the minimum royalty payment equals $10.0 million, the royalty terminates.

 

6The 1.0% to 2.0% sliding-scale NSR royalty will pay 2.0% when the price of gold is above $350 per ounce and 1.0% when the price of gold falls to $350 per ounce or below. The silver royalty rate is based on the price of gold.

 

7Total property production guidance of 142,500 to 150,000 ounces of gold reflects Barrick’s and Goldcorp’s combined interest and has been calculated from Goldcorp’s guidance of 95,000 to 100,000 ounces, which reflects their 66.7% interest. Reported guidance reflects production estimate from our area of interest.

 

8Production forecast applies to Section 29 which currently holds about 95% of the reserves reported for the project.

 

9An additional Cordilleran royalty applies to a portion of Section 28.

 

10Additional Rayrock royalties apply to Sections 28, 32 and 33; these royalty rates vary depending on pre-existing royalties. The Rayrock royalties have a 200,000 ounce threshold that must be met in the pre-existing open pits before they become payable.  As of March 31, 2012, approximately 103,000 ounces have been produced.

 

11NSR sliding-scale schedule (price of gold per ounce – royalty rate): $0.00 to under $350 – 0.0%; $350 to under $400 – 0.5%; $400 to under $500 – 1.0%; $500 or higher – 2.0%.

 

 
 

 

FOOTNOTES TO TABLE 1 (cont.)

 

12NSR sliding-scale schedule (price of gold per ounce – royalty rate): $0.00 to $350 – 1.0%; above $350 – 1.5%.

 

13The operator’s production guidance is 485,000 to 510,000 ounces of gold for the entire project.

 

14The operator estimates that production at the Holt mine will comprise approximately 55% of their total production of 95,000 to 105,000 ounces for calendar 2013.

 

15This is a metal stream whereby the purchase price for gold ounces delivered is $435 per ounce, or the prevailing market price of gold, if lower; no inflation adjustment. Payable factor is fixed at 97% of contained gold in concentrate.

 

16Thompson Creek’s guidance is that production is scheduled to commence in the third calendar quarter of calendar 2013, with commercial production expected in the fourth quarter.

 

17The NSR sliding-scale royalty is capped once payments of approximately $17 million have been received. NSR sliding-scale schedule (price of gold per ounce – royalty rate): less than $300 – 2.0%; $300 to $350 – 3.0%; greater than $350 – 4.0%.

 

18Au Rico’s guidance for calendar 2013 is 70,000 to 80,000 ounces. The royalty payment cap of $17 million was reached with production of 17,000 ounces as of March 31, 2013.

 

19The Company’s royalty is subject to a 2.0 million ounce cap on gold production. There have been approximately 1.1 million ounces of cumulative production, as of March 31, 2013. NSR sliding-scale schedule (price of gold per ounce – royalty rate): $0.00 to $299.99 – 1.0%; $300 to $324.99 – 1.50%; $325 to $349.99 – 2.0%; $350 to $374.99 – 3.0%; $375 to $399.99 – 4.0%; $400 or higher – 5.0%.

 

20Recovered metal is contained in concentrate and is subject to third party treatment charges and recovery losses

 

21The royalty rate is 75% until 910,000 payable ounces of gold have been produced; 50% thereafter. There have been approximately 155,000 cumulative payable ounces produced as of March 31, 2013. Gold is produced as a by-product of copper.

 

22Production guidance for October 2012 through September 2013.

 

23Production guidance for July 2012 through June 2013.

 

24Inmet’s guidance for 2013 is 68,500 to 72,000 tonnes of copper, which converts to 151 to 159 million pounds of copper.

 

NOTE: The Table does not include production guidance for properties that the operators did not provide information. These properties are: Allan, Balcooma, Johnson Camp, Mt. Goode, Robinson, Skyline, Sega, Tambor, Troy, Voisey’s Bay, Williams, Wolverine, and three oil and gas royalties. The Company’s royalty portfolio contains several different types of royalties or similar interests which are defined as follows:

 

 
 

 

DEFINITIONS

 

Gross Smelter Return (“GSR”) Royalty – A defined percentage of the gross revenue from a resource extraction operation, less, if applicable, certain contract-defined costs paid by or charged to the operator.

 

Gross Value ("GV") Royalty – A defined percentage of the gross value, revenue or proceeds from a resource extraction operation, without deductions of any kind.

 

Metal Stream – An agreement that provides, in exchange for an upfront payment, the right to purchase all or a portion of the precious metals produced from a base metal mine, at a price determined for the life of the transaction by the agreement.

 

Net Smelter Return (“NSR”) Royalty – A defined percentage of the gross revenue from a resource extraction operation, less a proportionate share of incidental transportation, insurance, refining and smelting costs.

 

Net Value Royalty (“NVR”) – A defined percentage of the gross revenue from a resource extraction operation, less certain contract-defined costs.

 

Royalty – The right to receive a percentage or other denomination of mineral production from a resource extraction operation.