Attached files
| file | filename |
|---|---|
| 8-K - 8-K CURRENT REPORT - ROYAL GOLD INC | v311735_8k.htm |
| EX-99.1 - EXHIBIT 99.1 - ROYAL GOLD INC | v311735_ex99-1.htm |
| TABLE 1 | Exhibit 99.2 |
Royal Gold’s Royalty Portfolio
Calendar Year 2012 Production Estimates 1
| PROPERTY | ROYALTY | OPERATOR | METAL | PRODUCTION |
| UNITED STATES | ||||
| Bald Mountain | 1.75% to 2.5% NSR 2 | Barrick | Gold | 84,000 oz |
| Cortez - GSR1 and GSR2 | 0.40% to 5.0% GSR 3 | Barrick | Gold | 106,000 oz |
| Cortez - GSR3 | 0.71% GSR | Barrick | Gold | 106,000 oz |
| Cortez - NVR1 | 0.39% NSR | Barrick | Gold | 83,000 oz |
| Gold Hill | 1.0% to 2.0% NSR 4 | Kinross/Barrick | Gold | 11,400 oz 5 |
| Gold Hill | 1.0% to 2.0% NSR 4 | Kinross/Barrick | Silver | 25,100 oz 5 |
| Goldstrike (SJ Claims) | 0.9% NSR | Barrick | Gold | 531,000 oz |
| Leeville | 1.8% NSR | Newmont | Gold | 254,000 oz |
| Marigold | 2.0% NSR | Goldcorp/Barrick | Gold | 112,500 oz 6 |
| Robinson 7 | 3.0% NSR | KGHM | Gold | Not Reported |
| Robinson 7 | 3.0% NSR | KGHM | Copper | Not Reported |
| Troy 8 | 3.0% NSR | Revett | Silver | 1.4 million oz |
| Troy 8 | 3.0% NSR | Revett | Copper | 11.5 million lbs |
| Twin Creeks | 2.0% GV | Newmont | Gold | 9,400 oz |
| Wharf | 0.0% to 2.0% NSR 9 | Goldcorp | Gold | 55,000 oz |
| CANADA | ||||
| Canadian Malartic | 1.0% to 1.5% NSR 10 | Osisko | Gold | 565,000 oz |
| Holt | 0.00013 x Au price | St Andrew Goldfields | Gold | 45,000 – 50,000 oz |
| Voisey’s Bay | 2.7% NSR | Vale | Copper | Not Reported |
| Voisey’s Bay | 2.7% NSR | Vale | Nickel | Not Reported |
| Voisey’s Bay | 2.7% NSR | Vale | Cobalt | Not Reported |
| Williams | 0.9% NSR | Barrick | Gold | Not Reported |
| Wolverine | 0.0% to 9.445% NSR 11 | Yukon Zinc | Gold | Not Reported |
| Wolverine | 0.0% to 9.445% NSR 11 | Yukon Zinc | Silver | Not Reported |
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TABLE 1 (cont.)
Royal Gold’s Royalty Portfolio
Calendar Year 2012 Production Estimates 1
| PROPERTY | ROYALTY | OPERATOR | METAL | PRODUCTION |
| MEXICO | ||||
| Dolores | 3.25% NSR | Pan American Silver | Gold | 75,000 – 80,000 oz |
| Dolores | 2.0% NSR | Pan American Silver | Silver | 3.5 – 4.0 million oz |
| El Chanate | 2.0% to 4.0% NSR 12 | AuRico Gold | Gold | 78,000 –88,000 oz |
| Mulatos | 1.0% to 5.0% NSR 13 | Alamos | Gold | 200,000 – 220,000 oz |
| Peñasquito | 2.0% NSR | Goldcorp | Gold | 425,000 oz 7 |
| Peñasquito | 2.0% NSR | Goldcorp | Silver | 26 million oz 7 |
| Peñasquito | 2.0% NSR | Goldcorp | Lead | 180 million lb 7 |
| Peñasquito | 2.0% NSR | Goldcorp | Zinc | 400 million lb 7 |
| CENTRAL AND SOUTH AMERICA | ||||
| Andacollo 14 | 75% of payable gold (NSR) | Teck | Gold | 60,000 oz 15 |
| Don Mario | 3.0% NSR | Orvana | Gold | 12,500 oz 15,16 |
| Don Mario | 3.0% NSR | Orvana | Silver | 500,000 oz 15,16 |
| Don Mario | 3.0% NSR | Orvana | Copper | 12.1 million lbs 15,16 |
| El Limon | 3.0% NSR | B2Gold | Gold | 48,000 –50,000 oz |
| El Toqui | 0.0% to 3.0% NSR 17 | Nyrstar | Gold | Not Reported |
| El Toqui | 0.0% to 3.0% NSR 17 | Nyrstar | Silver | Not Reported |
| El Toqui | 0.0% to 3.0% NSR 17 | Nyrstar | Lead | Not Reported |
| El Toqui | 0.0% to 3.0% NSR 17 | Nyrstar | Zinc | Not Reported |
| Martha | 2.0% NSR | Coeur d’Alene | Gold | 400 -500 oz |
| Martha | 2.0% NSR | Coeur d’Alene | Silver | 700,000 – 900,000 oz |
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TABLE 1 (cont.)
Royal Gold’s Royalty Portfolio
Calendar Year 2012 Production Estimates 1
| PROPERTY | ROYALTY | OPERATOR | METAL | PRODUCTION |
| AUSTRALIA | ||||
| Balcooma | 1.5% NSR | Kagara | Gold | Not Reported |
| Balcooma | 1.5% NSR | Kagara | Silver | Not Reported |
| Balcooma | 1.5% NSR | Kagara | Copper | Not Reported |
| Balcooma | 1.5% NSR | Kagara | Lead | Not Reported |
| Balcooma | 1.5% NSR | Kagara | Zinc | Not Reported |
| Gwalia Deeps | 1.5% NSR | St Barbara | Gold | 175,000 – 190,000 oz 18 |
| King of the Hills | 1.5% NSR | St Barbara | Gold | 55,000 – 60,000 18 |
| Mt. Goode (Cosmos) | 1.5% NSR | Xstrata | Nickel | Not Reported |
| South Laverton | 1.5% NSR | Saracen | Gold | 110,000 – 120,000 oz 18 |
| Southern Cross | 1.5% NSR | St Barbara | Gold | 90,000 – 100,000 oz 18 |
| AFRICA | ||||
| Inata | 2.5% GSR | Avocet | Gold | 160,000 oz |
| Taparko | 2.0% GSR 19 | High River | Gold | 148,000 oz |
| EUROPE | ||||
| Las Cruces | 1.5% NSR | Inmet | Copper | 136.0 – 151.2 million lbs |
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FOOTNOTES TO TABLE 1
| 1 | 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. |
| 2 | NSR 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. |
| 3 | GSR 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 $349.00 – 3.00%; $350 to $369.99 – 3.40%; $370.00 to 389.00 – 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%. |
| 4 | NSR sliding-scale 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. |
| 5 | Production is expected to commence in the second half of calendar 2012. |
| 6 | Production guidance reflects the entire project. Operator has not provided a breakdown of production by royalty interest. |
| 7 | Production estimates reflect payable metal and are subject to third party treatment charges. |
| 8 | Recovered metal is contained in concentrate and is subject to third party recovery losses. |
| 9 | NSR 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%. |
| 10 | NSR sliding-scale schedule (price of gold per ounce – royalty rate): $0.00 to $350 – 1.0%; above $350 – 1.5%. |
| 11 | Gold royalty rate is based on the price of silver per ounce. NSR sliding-scale schedule (price of silver per ounce – royalty rate): Below $5.00 – 0.0%; $5.00 to $7.50 – 3.778%; >$7.50 – 9.445%. |
| 12 | The NSR sliding-scale royalty is capped once payments of approximately $17 million have been received. As of December 31, 2011, payments of approximately $10.6 million have been recognized. 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%. |
| 4 |
FOOTNOTES TO TABLE 1 (cont.)
| 13 | The Company’s royalty is subject to a 2.0 million ounce cap on gold production. There have been approximately 805,000 ounces of cumulative production, as of December 31, 2011. 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%. |
| 14 | The royalty rate is 75% until 910,000 payable ounces of gold have been produced; 50% thereafter. There have been approximately 73,000 of cumulative payable ounces produced as of December 31, 2011. Gold is produced as a by-product of copper. |
| 15 | Recovered metal is contained in concentrate and is subject to third party treatment charges and recovery losses. |
| 16 | Production guidance for October 2011 through September 2012. |
| 17 | All metals are paid based upon zinc prices. NSR sliding-scale schedule (price of zinc per pound – royalty rate): Below $0.50 – 0.0%; $0.50 to below $0.55 – 1.0%; $0.55 to below $0.60 – 2.0%; $0.60 or higher – 3.0%. |
| 18 | Production guidance for July 2011 through June 2011. |
| 19 | The 2.0% GSR royalty applies to gold production from defined portions of the Taparko-Bouroum project area. |
NOTE:
The Table does not include production information for Allan, Johnson Camp, Skyline and three oil and gas royalties.
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DEFINITIONS
The Company’s production portfolio contains several different types of interests which are defined as follows:
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 revenue from a resource extraction operation, less certain contract-defined costs, if any.
Metal Stream – a metal purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine, at a price determined for the life of the transaction by the purchase 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 transportation costs, milling costs and taxes.
Royalty - the right to receive a percentage or other denomination of mineral production from a resource extraction operation.
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