Good day and welcome to the Royal Gold, Inc. Fiscal 2019 Full Year and Fourth Quarter Conference Call. All participants will be in listen-only mode. [Operator instructions] After today's presentation there will be an opportunity to ask questions. [Operator instructions] Please note today's event is being recorded. I would now like to turn the conference over to Alistair Baker, Director of Business Development. Please, go ahead.

Thank you, Rocco. Good morning and welcome to our discussion of RoyalGold fourth quarter and fiscal year 2019 results. This event is being webcast live and you will be able to access a replay of this call on our website. Participating on the call today are Tony Jensen, President and Chief Executive Officer; Bill Heissenbuttel, Chief Financial Officer and Vice President Strategy; Mark Isto, Vice President, Operations; Dan Breeze, Vice President, Corporate Development of RGLD; and Bruce Kirchhoff, Vice President General Counsel and Secretary. This discussion falls under the Safe Harbor provision of the Private Securities Litigation Reform Act. The discussion of the company's current risks and uncertainties is included in the safe harbor and cautionary statement this press release and slide presentation and is presented in greater detail in our filings with the SEC. Tony will give you an overview of the fiscal year, followed by Mark with an update on recent developments in our operating portfolio. Bill with then provide a financial update on the quarter and Tony will wrap up the call with some closing comments. We'll then open the lines for a Q&A session. Now I will turn the call over to Tony.

Good morning and thank you for joining the call. I will begin in Slide 4. Fiscal 2019 was a successful year for Royal Gold on several fronts. We adopted the same solid, steady, successful for fiscal 2019 and I'm pleased to report that our financial operating in business development activities during the year reflects that theme. The overall operating performance was strong achieving production volume for the year of 335,000 gold in ounces. Our financial performance was solid generating revenue for the full year of $423 million with 78% coming from gold and operating cash flow of $253 million. Earnings for the full year were $94 million or $1.43 per share. We use strong cash flow to strengthen the balance sheet and reduce that by $150 million during the year. We extended our credit facility on more favorable terms and currently have approximately $900 million of liquidity available which positions us well to take advantage of business development opportunities. We raised our dividend for the 19th straight year which is now $1.6 per share on a calendar year basis. We resolved the dispute regarding the calculation of the royalty at Voisey's Bay during the fiscal quarter -- first fiscal quarter and are pleased to have this world-class asset back in contributing revenue, particularly given valleys plans to extend the mine life through 2034. And we added the high-quality long-life Khoemacau development project to our stream portfolio during the third fiscal quarter. The project developer Cupric Canyon Capital expects the project will begin production in mid-2021 and operate for a 21-year mine life. We have a streamline on 80% of the payable silver from this project which may be increased to 100% at Cupric's selection. Cupric has completed project financing and construction is well underway. Mark will provide a further update on the project progress in his remarks. As you can see this is a solid, steady and successful year. But we also faced some headwinds at a couple of our principal properties. Water restrictions during the winter caused throughput reductions at Mount Milligan in the third and fourth fiscal quarters. In a blockade at Penasquito caused the temporary operating shut down during much of the fourth quarter. Metal prices also caused some negative pressure on revenues with the 3% lower gold price in a 20% lower copper price compared to 2018. Although the silver price is about 7% higher year-over-year, I'm pleased that each of these issues improved by fiscal year-end. Mount Milligan is achieving throughput in recovery targets. Penasquito is back in full production and community dialogue is ongoing. Gold has begun to display its value as macroeconomic insurance. Now I will turn the call over to Mark and discuss some of the activity at Khoemacau as well as development at our key producing properties.

Thanks, Tony. Starting at Slide 5 I'd like to briefly mention some of the recent developments at Khoemacau. Cupric announced last month that they closed the project financing with the addition of the final $85 million of equity, $70 million which came from resource capital and $15 million from GNRI the project sponsor. In addition to our investment and other sources of financing available Cupric now has a total of $650 million available for project development, debt repayment and working capital. All from experienced finance providers mining industry. Cupric has been actively advancing the project as you can see in the photos. The top photo shows the President of Botswana at the groundbreaking ceremony on June 28. The next photo shows 1 of the 3 box cut excavations for the mine portals and the bottom photo shows progress on the pipeline to the hacker well field, one of the water sources for the project. Cupric has reported that there are almost 700 workers on-site and about 7.8% of the project capital has been spent since the beginning of calendar 2019. Although the project advance has been tempered by a slightly longer close for the project financing than anticipated, the 5-year underground mining contract was awarded to Piniasco who is currently mobilizing to start work in December. We just completed a site visit last month and are pleased with the quality of the project team, the support being provided by floor and Cupric's overall progress on the project. Going to Slide 6 I'd like to discuss some of the recent developments at several of our key operating properties. As Tony mentioned at Mount Milligan, Centerra has started to access newly permitted water sources in April and spring mill water allowed milling operations to return to full capacity in May. Centerra reported…

Thanks, Mark. I'll turn your attention to slide 8 and give an overview of the financial results for the quarter. I will be comparing our quarterly results to the comparable quarterly period in fiscal 2018. I'll start with a high level summary of 3G measures, revenue, earnings and cash flow. Revenue this quarter was $115.7 million and volume was 88 400 gold equivalent ounces, which are both in line with the Q4 of fiscal 2018. Metal prices had a negative effect this quarter and, although gold was relatively unchanged, silver was down 10% and copper down 11%. Net earnings attributable to royal gold common shareholders was $26.5 million or $0.40 a share in line with the prior year quarter. As we have been reporting since July 1, 2018, we mark to market our equity investments every reporting period and this quarter we recognize the $3.5 million of non-cash charge. Net income, excluding this non-cash charge, was $29.5 million or $0.45 per basic share net of tax. Cash from operations was approximately $72.3 million, down from $77 million in the prior year quarter, primarily due to higher cash taxes paid this period. Returning to the income statement, I note that, while total revenue was consistent compared to last year, the temporary shutdown of Penasquito caused the relative contribution of revenue from our stream and royalty businesses to change significantly this quarter. With lower royalty revenue primarily from Peñasquito, approximately 70% of revenue came from our streams segment compared to 72%. This has implications for our cost of sales and depreciation. Because our cost of sales is specific to our stream business, a higher relative stream of revenue resulted in a 7% higher cost of sales, even though total revenue was lower. We expect that the revenue mix should return to more…

Thanks Bill. I'll conclude on slide 10. Fiscal 2019 was another solid steady year for Royal Gold and we successfully executed on several strategic objectives. We turned in a strong financial performance and we finished the year with a stronger balance sheet, higher dividends, continued access to liquidity for future transactions, Voisey's Bay contributing revenue for the portfolio again and high quality Comacaw [ph] growth project added to the portfolio. Royal Gold is very well positioned and we have the right team in place with the skills and depth required to capitalize on opportunities.

That concludes our prepared remarks and we'll be happy to open a line now for some questions if there are any.

Thank you. [Operator Instructions] Our first question comes from Tanya Jakusconek of Scotiabank. Please, go ahead.

Good morning, everybody. Just wanted to ask some guidance questions if I could for the new fiscal year, maybe on taxes and depreciation levels.

Yes, Tanya. We're going to do that probably after our first fiscal quarter. I just like to give our team a chance to see how the early part of the year develop, so we'll deal with that on the next quarterly call.

Okay, and Tony, one for you, what you're seeing out there with the move in the gold price, do you see gold opportunities at that point?

: Yes, Tanya, first of all, I'd like to have more the team be heard from, so let me just turn to Dan Breeze who's in our Zug office, and ask him to comment on what he sees in there. He's leading that, he'll show it for us.

Great, thank you Dan.

Hi, Tanya. We're seeing a pretty robust set of opportunities right now, we're looking at things that are coming into us, but also be proactive on the ongoing basis, to be a creative and look for those opportunities as well and I say, despite the gold price move, there's not been very many, certainly not very large actually races [ph] to date. So, that means Royal Gold is a pretty healthy basket of early stage opportunities for us to review as well. We feel very good about the environment right now. We're very busy.

In terms of the opportunities that you're seeing, is it more on the financing side, is that in that $200 million to $300 million range that we previously talked about?

Yes, we're seeing those opportunities still tiny, but also again it goes back to the smaller opportunities that are still there for us, the equity is not really come through yet and we're also seen earlier stage opportunities. So, it's a pretty wide range across the spectrum that we're looking at right now, up to the $200 million to $300 million level.

Okay, great, thank so much.

Thanks for the question.

Next question today comes from [indiscernible]. Please go ahead.

Hey, good morning guys, two questions for me. One on Penasquito, given that the mine just wrapped up at the end of Q2, just wondering what the lag is between concentrate production there and when will you receive royalty revenue? And then, secondly on Cortez, with the new Nevada JV, how do you see that Cortez crossroads pipeline ramping up over the next year or so? Do you expect that to change at all?

I'll probably jump in on some Cortez questions there. Yes, as far as the Penasquito question. We get the receipts on shipments at the end of each quarter, that's basically anything that they ship out during the quarter, we received notification on, and royalty payment on in the following months after the quarter. Does that answer your question?

So there could be a better one month delay then?

Yes, we experience basically we get the fourth quarter one month after the quarter, so for the second quarter it occurs in July.

Okay. Great.

And with regards to the Nevada joint venture, Mark and I, and another one of our colleagues Rusty Croft, had a chance to go out to Cortez just a couple weeks ago and see that project maturing. Particularly we're focused on crossroads. And it was gratifying to see [indiscernible] they had three out of four significant loading units in the crossroads. It's a very large bit there, they're bringing it down methodically and we're quite pleased that really all the surface equipment barring just one shell over the center trucks over on the west side of the pipeline area. They're bringing down a small sliver of bench there, all the rest of the equipment is over on our ground. We asked a similar question to them, Kerry, as to what you're asking of us. I think now and how light into that joint venture benefit or impact our interests there, we don't really see much of a difference. We think that the equipment that is there at Cortez is likely to stay and continue to produce ounces on crossroads. A big portion of crossroads echoes the heap leach pad, so it doesn't compete against other ores coming into the Cortez mill. But there is a fraction that does go through the Cortez mill and we don't see any kind of other ores upsetting that in the near term. So, we feel good that we've got a project that's now is in full swing at a crossroads and we're continually meeting the new team as it comes through and we saw some new faces when we're out there. We'll continue to foster those new relationships.

Do you see Crossroads contributing significantly more in the back half of 2019, or that more about 2020 timeline still?

I'll just say, let this last month be a guide for the next couple of months, until we get a little bit better understanding. The new engineering team that's in place is doing a mine review on Crossroads and they told us to expect that early in the new year. So, I don't want to get too far out ahead of any kind of prediction there, but judging from the homogeneity of the deposit and the amount of equipment they have in there, I think is a reasonable guide what we did this year is probably pretty good for that the next quarter or two.

Okay, great, thank you.

[Operator Instructions] Next question comes from Adam Graf of B. Riley FBR, please go ahead.

Thanks guys. I wanted to also ask about Cortez, which you guys just finished discussing, so I think I'm good.

Great, Adam. I think operator concludes the roster of questions that we have?

Yes Sir, that is correct.

Very good. Thank you very much for joining us today and we appreciate your interest on discussing what we think is a pretty straightforward and solid quarter. We look forward to continuing that trend into our new fiscal year of 2020, and we'll look forward to updating you on activities of the company in about three months' time. Thanks very much for joining us.

Thank you, Sir. This conference is now concluded. We thank you all for attending today's presentation. You may now disconnect and have a wonderful day.