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A Pure Precious

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Leverage to the gold price. Exposure to precious metals without direct operating risk ... 1Reserves at a gold price of $300/oz. 2Operator's reserve estimates ... – PowerPoint PPT presentation

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Title: A Pure Precious


1
A Pure Precious Metals Royalty Company MINING
INVESTMENT FORUM SAN FRANCISCO JUNE 2003
2
Safe Harbor
  • CAUTIONARY STATEMENT
  • UNDER THE PRIVATE SECURITIES LITIGATION REFORM
    ACT OF 1995
  • Some matters contained in this presentation are
    forward-looking statements that involve risks and
    uncertainties that could cause actual events to
    differ materially from projections or estimates.
    Such forward-looking statements include comments
    regarding future cash flow, earnings, and
    revenues, timing and amounts of future
    production, mineralization and reserves.
    Factors that could cause actual results to differ
    materially from such projections include changes
    in precious metals prices, various decisions and
    activities of mine operators, unanticipated
    grade, geological, metallurgical, or processing
    problems, changes in project parameters as plans
    are refined, and the results of current or
    planned exploration activities. These and other
    factors are discussed in more detail in the
    Companys filings with the Securities and
    Exchange Commission. The Company disclaims any
    obligation to update any forward-looking
    statements.

3
Shares Market Price
4
Stock Ownership
  • Management Directors 26
  • Institutional foreign and domestic 28
  • Retail about 15,000 stockholders 46

5
Dividends
6
A Royalty Company Unique Investment Vehicle
  • Diversified royalty portfolio
  • Leverage to the gold price
  • Exposure to precious metals without direct
    operating risk
  • No capital commitments

7
Our Producing Royalty Portfolio
  • Pipeline Mining Complex at Cortez, Nevada
  • Carlin East, Nevada
  • Leeville Project, Nevada
  • SJ Claims (Goldstrike), Nevada
  • Bald Mountain mine, Nevada
  • Martha mine, Argentina

8
Top Ten Producing Mines
Dobra, The U.S. Gold Industry 2001, Nevada
Bureau of Mines Geology Special Publication 32,
p. 7, Bears Industry, Sparks, NV.
9
Producing Royalty Reserves1
10
Nevada Mining Property Interests
PIPELINE
11
Pipeline Mining Complex (Operated by Placer
Dome)Nevada
12
Pipeline Mining Complex (Operated by Placer
Dome)Mineral Endowment Reserve Replacement
13
Pipeline Mining Complex (Operated by Placer
Dome)A Spectacular Operation
  • Over 1 million ounces in fiscal 2003
  • Calendar 2003 cash costs projected _at_ 141/ounce

14
Pipeline Mining Complex (Operated by Placer
Dome)Upside Potential
  • Reserve replacement
  • Gold price
  • Fringe drilling additions
  • Mine plan optimization
  • Exploration (2.9 million in calendar 2003)
  • South Pipeline fringes
  • Crossroads
  • Windmill
  • GAP
  • Deep potential

15
Pipeline Mining Complex (Operated by Placer
Dome)Reserves Resources
  • Proven probable reserves
  • 6.6 million contained ounces
  • Additional mineralization
  • 135.1 million tons _at_ 0.032 opt
  • (122.6 million tonnes _at_ 1.10 gpt)

16
Pipeline Mining Complex (Operated by Placer
Dome)GSR Sliding Scale Royalty
17
Pipeline Mining Complex (Operated by Placer
Dome)Royalties
18
Pipeline Mining Complex (Operated by Placer
Dome)Royalty Footprint
19
Nevada Mining Property Interests
LEEVILLE
20
Leeville Project (Operated by Newmont)
  • Royalty
  • 1.8 NSR
  • Operator
  • Newmont Mining Corporation
  • Reserves
  • 3.0 million ounces (12/31/02 _at_ 300 Au)
  • (6.0 million tons _at_ 0.494 opt 5.4 million
    tonnes _at_ 16.94 gpt)
  • Carlin East 292,486 ounces
  • Leeville 2,672,754 ounces

21
Leeville Project (Operated by Newmont)
  • Additional mineralization
  • 0.9 million tons _at_ 0.48 opt (Leeville) (0.8
    million tonnes _at_ 16.4 gpt)
  • Production
  • 110,000 ounces in calendar 2003 (Carlin East
    deposit)
  • 500,000 ounces/year commencing in late 2005
    (Leeville)
  • Equates to 3.15 million/year royalty revenues _at_
    350 gold
  • Cash cost
  • lt200/ounce (Leeville)

22
Leeville Project (Operated by Newmont)
23
Leeville Project (Operated by Newmont)
24
Nevada Mining Property Interests
SJ CLAIMS
25
SJ Claims Royalty
26
SJ Claims (Goldstrike Mine) (Operated by Barrick)
  • Royalty
  • 0.9 NSR
  • Operator
  • Barrick Gold Corporation
  • Reserves
  • 7.9 million ounces
  • Production
  • 395,866 ounces in calendar 2003
  • Equates to 1.25 million/year in royalty revenues
    _at_ 350 gold

27
Nevada Mining Property Interests
BALD MOUNTAIN
28
Bald Mountain Royalty (Operated by Placer
Dome)
  • Royalty
  • 1.75 NSR
  • Reserves
  • 363,000 ounces
  • (9.2 million tons _at_ 0.039 opt 8.3 million
    tonnes _at_ 1.34 gpt)
  • Additional mineralization
  • 8.3 million tons _at_ 0.047 opt (7.6 million tonnes
    _at_ 1.61 gpt)
  • Reserve life of 3 years

29
Martha Silver Mine (Operated by Coeur
dAlene)Location Map
30
Martha Silver Mine (Operated by Coeur dAlene)
  • Royalty
  • 2 NSR
  • Operator
  • Coeur dAlene
  • Reserves
  • 5.3 million silver equivalent ounces
  • (150 ounces of silver equivalent per ton
    5,142 grams of silver equivalent per tonne)
  • Exploration continues

31
Non-Producing Royalty Portfolio
  • Argentina
  • Coeur dAlene
  • Santa Cruz Joint Venture(Compania de Minas
    Buenaventura S.A.A. Mauricio Hochschild
    Compania S.A.C. Yamana Resources, Inc.)
  • Nevada
  • Buckhorn South
  • Mule Canyon
  • 5 royalty interests from High Desert acquisition
  • California
  • Long Valley

32
Royal Gold Our Plan
  • Protect and maximize current portfolio
  • Smart growth
  • Control costs leading to even higher margins
  • Increase cash flow, on a per share basis
  • Sustain and increase dividends
  • Grow revenues through acquisitions and royalty
    financings

33
Royal Gold Performance
  • Royalty revenues have grown
  • Increased liquidity
  • Diversified royalty portfolio
  • Higher cash flow
  • Cash to fuel future growth

34
Royal Gold A Leveraged Play
  • Gold price appreciation
  • Sliding-scale royalties
  • Reserve growth
  • Leading to significant revenue growth

35
Royal Gold Gold Price Leverage
36
Royal Gold Strengths
  • Portfolio of quality royalties
  • Extraordinary leverage to gold price
  • Seasoned management
  • Strong revenue and reserve base
  • Deal making ability
  • Broad shareholder base
  • Sensible growth strategy
  • Significant free cash flow
  • Management ownership
  • Dividend

37
Financial Strength
  • Cash on hand 29 million
  • No debt
  • Line of credit
  • Robust revenues
  • 15M NOL

38
(No Transcript)
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