Royal Gold Ashanti - Fully Indigenous Large Scale Gold Mining Company

Financial Overview

Royal Gold Ashanti is a profitable and growing enterprise with a strong financial foundation built on its world-class mining assets. Since its inception in 2007, the company has achieved consistent growth in both revenue and profitability, driven by strategic expansion, operational excellence, and a disciplined approach to capital management.

This section outlines the company’s financial performance through key financial highlights, growth trends, and our commitment to transparency and strong investor relations.

Financial Highlights (Annual Reports Summary)

Royal Gold Ashanti’s financial strength is underpinned by robust gold production, strong cost management, and an expanding resource base. Below is a summary of key financial highlights for the past five years:

Key Financial Data (USD millions)

Financial Metric	2019	2020	2021	2022	2023
Revenue	1,025	1,380	1,555	1,870	2,112
Gross Profit	321	485	550	610	720
Operating Income	210	370	420	470	525
Net Profit	160	280	310	355	400
EBITDA	305	460	520	590	670
Earnings per Share (EPS)	0.80	1.20	1.45	1.65	1.80
Free Cash Flow	120	200	250	300	340
Total Assets	2,100	2,500	2,800	3,100	3,500
Debt-to-Equity Ratio	0.35	0.30	0.28	0.25	0.23
Cash Reserves	200	320	410	550	625

Annual Revenue Growth: 2020–2023 CAGR of 16% Net Profit Growth: 2020–2023 CAGR of 18%

Recent Performance Overview:

2023: Record-breaking revenue and EBITDA, driven by increased production at the Tarkwa North and Sikasso Gold Basin sites.
Operating Efficiency: Improved cost control measures across all mining sites, leading to an 8% reduction in all-in sustaining costs (AISC) year-over-year.
Expansion Strategy: Successful mineral reserve expansion in Ghana and Mali, contributing to strong future production forecasts.

Revenue Growth & Market Performance

Royal Gold Ashanti’s revenue has consistently grown, driven by strategic expansion, increased production, and favorable commodity prices. The company’s focus on operational efficiency, coupled with disciplined cost management, has resulted in substantial gains in both revenue and net profit.

Revenue Breakdown by Region (2023)

Region	Revenue (USD millions)	% of Total Revenue
Ghana	1,250	59%
Burkina Faso	480	23%
Mali	350	17%
Other	32	1%

Key Drivers of Growth:

Strong Gold Prices: The price of gold remained robust throughout 2023, averaging $1,900 per ounce.
Increased Production: Expansion at key sites such as Obuasi and Kaya drove a 22% increase in total gold output year-over-year
Operational Efficiencies: Continuous improvements in mining processes and infrastructure, particularly at Sikasso Gold Basin and Bogoso, led to cost reductions and productivity gains

Stock Market Performance

Listed on Ghana Stock Exchange and International Markets (through dual listing)
2023 Stock Price Growth: Increased by 24% in 2023, outperforming the regional mining index.
Market Capitalization: USD $6.8 billion (2023)

"Royal Gold Ashanti’s market performance reflects not only its operational strength but also investor confidence in our long-term strategy."

Investor Relations

At Royal Gold Ashanti, we are committed to maintaining transparent, open, and proactive communication with our investors. Our goal is to provide the information necessary for informed decision-making and to build long-term relationships based on trust.

Investor Engagement Strategy

Quarterly Financial Updates: Comprehensive earnings calls, shareholder newsletters, and investor presentations
Annual General Meeting (AGM): Open and transparent AGM with opportunities for shareholders to ask questions directly to senior leadership
Investor Roadshows: Regular investor roadshows and presentations in key global markets, including New York, London, Johannesburg, and Toronto
Dedicated Investor Relations Team: A team focused on shareholder concerns, market trends, and investment opportunities, ensuring consistent communication.
Corporate Social Responsibility (CSR) Updates: Detailed reports on sustainability and community investment are included in our annual Sustainability Report.

Shareholder Composition

Institutional Investors: 70% of shares held by global institutional investors, including pension funds, hedge funds, and impact investors.
Retail Investors: 30% of shares held by individual investors, with a growing base in Africa and the diaspora.

Investment Highlights

Stable Dividends: Royal Gold Ashanti has maintained a strong dividend policy since 2018, with consistent payouts to shareholders.
Attractive Growth Opportunities: Future projects, including Obuasi Extension Zone and the Kaya Project Expansion, are expected to deliver significant additional value
Focus on ESG Investments: Investors in Royal Gold Ashanti gain exposure to a company committed to the principles of ESG, with a proven track record in environmental responsibility, community engagement, and governance.

"Our investors are not just stakeholders; they are partners in our journey towards building a sustainable and profitable future.”

Key Takeaways for Investors

Strong growth trajectory with projected 500,000+ ounces of annual gold production by 2027
Diversified portfolio of high-quality gold mining assets across Africa’s most promising regions
Commitment to sustainability, ensuring long-term value creation for shareholders and communities alike
Proven ability to deliver consistent returns, even in challenging market conditions