Good morning. My name is Stephanie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Royal Gold Fiscal 2012 Fourth Quarter and Year End Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Karen Gross, Vice President and Corporate Secretary you may begin your conference.

Thank you, operator and hello everyone. Welcome to our fiscal fourth quarter and yearend conference call. This event is being webcast live. You will be able to access a replay of this call on our website, where you will also find our release detailing our financial results. Participating on the call today are Tony Jensen, President and CEO; Stefan Wenger, CFO and Treasurer; Bill Heissenbuttel, Vice President, Corporate Development; Bill Zisch, Vice President Operations; Bruce Kirchhoff, Vice President and General Counsel; and Stanley Dempsey, Chairman. Tony will open with an overview of the quarter followed by Stefan who will give the financial highlights and then Bill Zisch will give an operations review. After management completes their remarks, we’ll open the line for a Q&A session. We will also be discussing the company’s adjusted EBITDA, which is a non-GAAP financial measure and there is a reconciliation in today’s press release. Before we begin, I also want to remind everyone that this discussion falls under the Safe Harbor provision of the Private Securities Litigation Reform Act. A discussion of the company’s current risks and uncertainties is included in the Safe Harbor statement in today’s release and is presented in greater detail in our filings with the SEC. Now, I’ll turn the call over to Tony.

Good morning and thank you for joining us today. I’d like to focus at the beginning of this call on our annual and quarterly results, but I hope you also saw Milligan transaction this morning. We will discuss that investment after Stefan and Bill had given you financial and operational updates. Royal Gold stood apart from general gold equities during the fiscal year due to our royalty business plan and financial results. Our investments in projects are fixed and are not subject to rising capital and operating costs. We are not responsible for the operations at mines, which keep our expenses in check. This business plan coupled with growth from previous investments and solid performance from our large portfolio of 39 producing assets, resulted in another record year of financial results for Royal Gold. Fiscal 2012 marks the 11th consecutive year of achieving record revenue and cash flow. In addition to higher average metal prices, our revenue increase in fiscal 2012 was driven by production growth at Andacollo, Peñasquito, Voisey’s Bay, Holt, Canadian Malartic and Wolverine. Our 3 producing cornerstone properties, Peñasquito, Andacollo and Voisey’s Bay, contributed $129 million or 49% of total revenue for fiscal 2012, compared with $98 million or 45% of the previous year’s revenue. Precious metals accounted for 77% of our fourth quarter revenue and 75% of our annual revenue. And approximately 92% of our revenue for both quarter and the year were derived from assets located in the U.S., Canada, Chile, Mexico and Australia, all very geopolitically stable countries. During fiscal 2012 we added 3 new business interests. In early December, we extended our interest in Mount Milligan with an additional commitment of $270 million, which increased our interest in the gold production from 25% to 40%. In mid-December, we acquired an initial interest in…

Thank you, Tony and good morning, everyone. For the fiscal year, we had record revenue of approximately $263 million, an increase of 22% over revenue, $217 million in the fiscal 2011. Net income increase 30% to $93 million or a $1.61 per basic share, compared with $71 million or a $1.69 per basic share for fiscal 2011. Adjusted EBITDA was a record of $238 million, or 90% of revenue, this compares with $190 million or 88% of revenue for fiscal 2011. Working capital as of June 30 was $430 million, including cash on the balance sheet totaling $375 million. We also have additional liquidity and undrawn credit facility to fund future growth. For fiscal 2012, our total cash operating expenses, net of production taxes and non-cash compensation expense were approximately $13.9 million, compared with $14.6 million in the prior year. The decrease in cash expenses was associated with more corporate accounting for cash fees during the year. Our average DD&A rate for the year, on a gold equivalent ounce basis was $477 per ounce compared with $426 per ounce this prior fiscal year. For fiscal 2013, we expect DD&A expense to again be in the range of $450 to $500 per gold equivalent ounce. In June, we completed a convertible senior notes offering. Net proceeds from the offering were approximately $359 million after deducting underwriting discounts and operating expenses. We used a portion of the proceeds to repay the term loan facility, which had an outstanding balance of $110.6 million. The remaining proceeds have been reserved for general corporate purposes, including funding of the Mount Milligan investment and future acquisitions of royalty interests. For accounting purposes, the $370 million convertible notes were reported in 2 separate components on our balance sheet. We recorded $293 million of debt, the value of…

Thank you, Stefan, and good morning, everyone. I’ll start my review with our producing properties. At this time last year, we were anticipating increased production from 6 key growth assets Andacollo, Peñasquito, Holt, Canadian Malartic, Wolverine, and Las Cruces. Today, I’m pleased to report on the contributions these properties make to our 12% growth in gold equivalent production, which is reflected in this year’s record financial results. At Teck’s Andacollo mine, the addition of temporary crushing capacity boosted their gold production by 25% over the prior year. Teck also constructed additional permanent crushing capacity during the year, and they now expect to achieve design capacity of 55,000 tons per day by the end of calendar 2012. They ended our fiscal year with average throughput of about 44,000 tons per day. So an increase in throughput the design levels has the potential to increase production by about 25%. Peñasquito operated by Gold Corp, our fiscal 2012 gold equivalent production was 29% higher than fiscal 2011. Gold Corp successfully commissioned a new high pressure grinding roll line during the March and June quarters, but throughput was limited due to reduced water supply in June. Gold Corp’s revised guidance predicated in limitations associated with processed water, expect production to rebound to design capacity of 130,000 tons per day by the end of calendar 2013. Sustaining this design capacity would add an additional 20% to expected production. At St. Andrew Goldfields Holt mine production is ramped up to design levels of 1000 tons per day and had sustained that level. Production in fiscal 2012 increased threefold over the prior partial year production ending the year at an annualized rate of about 80,000 ounces per year. With the gold price of over $1,600 per ounce, our royalty interest amounted to over 20% of this production.…

Thanks for the update, Bill. I also wanted to give you a few more details on Ruby Hill royalty that we acquired in May. Ruby Hill is a producing mine located in Nevada and operated by Barrick. Barrick reported proven and probable reserves as of December 31, 2011, of 16.8 million tons lower at an average trade of 0.058 ounces per ton, containing approximately 1 million ounces of gold. In addition to reserves, additional mineralization is estimated by Barrick to be 108 million tons at an average rate of 0.02 ounces per ton. We now have royalty interest on 9 operating mines in Nevada and are always eager to build our portfolio in the state where we started our royalty business. Turning to the Mt. Milligan transaction, we were interested in increasing our interest in the property and that opportunity came up when Thompson Creek decided to increase liquidity to ensure project completion following a challenging operating quarter for them. Today, we announced a $200 million increase in our investment at Mt. Milligan in exchange for an additional 12.25% of the payable gold. Combined with our prior transactions, we now are entitled to a cumulative 52.25% of the payable gold for a total investment of $781.5 million plus the per ounce payment for $435. To date, we paid about $455 million to Thompson Creek, and we will pay them $75 million following the closing of the new transaction. And the remaining $252 million in 5 scheduled quarterly payments commencing on September 1, 2012, and ending on September 1, 2013. Our investment thesis remains the same as our first investment in Mt. Milligan in June 2010. We view this as a quality asset with attractive cash costs due to a low strip ratio and low power costs, located in safe operating…

[Operator Instructions] And your first question comes from the line of Tom Murray with Advent Capital.

You have an extremely strong balance sheet Thompson Creek clearly does not -- Thompson Creek's bonds are trading in mid to high 70s for a yield of 13% and spread over treasuries of over 1,200 basis points. So the market telling you that Thompson Creek there is a material risk of bankruptcy with this name. Can you just kind of address putting additional money into them and it seems like you're assuming the role of lender of last resort for Thompson Creek, so how much further you’re willing to go and how much do you monitor the overall financial health of the corporation beyond the project integrity.

Yes, thanks Tom. Let me first start by saying we start look to the asset and we continue to believe that the asset is a quality asset as I mentioned in my prepared remarks. And we think the asset will continue to produce in all reasonable price levels. So that’s the first thing, but we also took a good strong look at where Thompson Creek is as an entity before we made this investment we are comfortable with that -- with the additional financing that they have and our credit facility of $300 million that should get them well over the required capital spend at Mt. Milligan, and we’ve also looked at the serviceability on the other end of this debt and we feel comfortable in the first years after production for Thompson Creek to be able to service that. So, we do take a look at it. We have some clauses in our agreements. And, we will continue to monitor that rather closely.

Yes, I didn’t get a chance to listen to the Thompson Creek call. [indiscernible] are going to be reduced as a result of this?

Say again, Tom?

I didn’t get a chance to listen to the Thompson Creek call. Is their credit facility going to be reduced?

No, we don’t believe it will be.

What are the amendments that they need to achieve with the lenders?

We have been knowledgeable about that. That is really an agreement between Thompson Creek and their lenders - not very much....

So, your claim on the Mt. Milligan gold production, what is that -- where is that priority claim within the Thompson Creek capital structure?

Let me turn to Bill Heissenbuttel for that question.

Yes, we have a - we do have a security interest, if that security interest for the most part is subordinated, but it is subordinated solely to the existing banks. So at this point..

Is it senior to the 12.5% bonds?

Yes, those bonds are unsecured. They have a guarantee from the entity that owns Mt. Milligan, but that is an unsecured guarantee, and ranks behind us.

We installed the cap at any additional debt that might come to Mt. Milligan cannot exceed $350 million. Which we would subordinate to, but we won’t subordinate anything more than that.

[Operator Instructions] And your next question comes from the line of Shane Nagle with National Bank Finance.

Just wondering on the payment schedule of that remaining $252 million, is that going to be equal installments here. Previously I’d guess it ratcheted down a bit with the construction schedule, but has that been revised to equal 5 equal payments?

Let me turn to the end of Bill Zisch for that question.

No, unfortunately it’s a little all over the place. I can give it you, $75 million when the amendment is effective, which I would expect would probably be next week. $45 million on September 1, $95 million on December 1, $62 million on March 1, $37 million of June 1, and $12.9 million on September 1 of next year.

And there are no further questions at this time. I’ll turn the call back over to the presenters.

Thank you for joining us today. We appreciate your interest in Royal Gold and your continued support. We look forward to updating you on our progress during the next quarterly call. Thanks very much.

And this concludes today’s conference call. You may now disconnect.