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Rising Interest Rates Fuel Demand for FICO AI-Powered Optimization

Deposit pricing optimization is critical for European banks such as Česká spořitelna that want to drive positive customer engagement

 

LONDON–(BUSINESS WIRE)–FICO (NYSE: FICO):

Highlights:

• Mathematical optimization improves lenders’ ability to manage pricing changes in a period of rising interest rates

• Česká spořitelna is among the European lenders that have purchased FICO optimization to improve pricing

• FICO optimization tools are part of FICO® Platform

Banks across Europe are challenged by rising interest rates, which make it difficult to balance profitability and customer experience. Many are turning to the AI-powered optimization tools offered by leading global analytics firm FICO as part of its award-winning FICO® Platform.

More information: https://www.fico.com/en/solutions/optimization

“Setting new prices by trial and error to see how the market reacts is inefficient and damaging to customer relationships,” said Jens Dauner, vice president for Central Europe at FICO. “Mathematical optimization gives you the power to meet conflicting objectives, achieve or exceed targets and simulate responses so that you avoid setting prices that are uncompetitive or unprofitable.”

In savings and deposits product pricing, financial institutions need to make precise trade-offs between volume and margin whilst understanding the flow of funds in and out of the bank as well as between products. FICO optimization enables a deep understanding of the impact of price changes to both the front and back books, providing the ability to set prices that avoid “cannibalising” portfolios whilst achieving the portfolio goals for the products. In the current rising rate environment, banks can leverage the solution to determine how much of the rate increase is passed on to the consumer and when and whether to lead or follow its competitors.

Česká spořitelna, the Czech Republic’s oldest and largest bank, has already developed a center of excellence for optimization based on FICO technology. Last year, the bank won a FICO Decisions Award for its use of optimization in collections, improving efficiency of its collections operation by 25 percent.

“We are one of the most advanced banks in Europe in terms of our use of decision optimization,” said Dusan Sykora, head of Sales Planning and Performance Management, Retail Division, Česká spořitelna. “Expanding our use of FICO’s optimization technology to pricing decisions for deposit accounts and term deposits was a logical step in the current economic situation. With FICO technology, we are creating a much more dynamic and responsive pricing solution.”

Mathematical optimization tools are part of FICO® Platform, which provides the ideal decisioning foundation companies need to successfully achieve digital transformation. Glean unprecedented insight into your customer’s immediate and future needs by eliminating data silos and enabling interoperability between your enterprise applications. FICO Platform empowers businesses to rapidly build new AI and machine learning powered applications rapidly and cost-effectively. This is achieved by supporting standard, open source tools and technologies.

FICO® Platform received placement as a leader among top providers in “The Forrester Wave™: AI Decisioning Platforms, Q2 2023” report.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics, AI and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, manufacturing, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in nearly 120 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and other countries, improving risk management, credit access and transparency. Learn more at fico.com.

FICO is a registered trademark of Fair Isaac Corporation in the US and other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230612005055/en/

For further comment on the FICO UK Credit Card activity contact:

FICO UK PR Team

Wendy Harrison/Parm Heer/Matthew Enderby

[email protected]

+44 (0)208 977 9132

KEYWORDS: United Kingdom Europe

INDUSTRY KEYWORDS: Data Management Technology Professional Services Business Security Other Technology Data Analytics Software Artificial Intelligence Other Professional Services Finance

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Digital Tech Maintains Momentum in European Market

Customer experience has become the key driver for long-term success in the development of new products and services, ISG Provider Lens™ report says

LONDON–(BUSINESS WIRE)–
Digital engineering is driving the rapid convergence of business and technology across a full range of European products and services, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Digital Engineering Services report for Europe finds enterprises across the continent are investing in digital technologies, such as artificial intelligence, cloud computing and big data to increase efficiency, reduce costs and improve customer experience (CX). The European market has moved in a synchronized manner toward adopting these digital engineering transformation services.

“The COVID-19 pandemic accelerated the adoption of digital technologies across industries,” said Gaurav Gupta, partner and global head, digital engineering, for ISG. “That trend is continuing in Europe.”

The technology-savvy end-customer has been the primary impetus for the accelerated adoption of digital technologies, ISG says. Modern-day digital customers expect faster, more personalized experiences when connecting with companies, products or services. As a result, in less than a decade, digital technology has gone from an optional lever for growth to a mandatory element for existence and a differentiating factor to drive the market. According to the ISG report, although a typical digital engineering provider currently generates 15 to 30 percent of its revenue from the European market, most providers are confident the percentage can be increased further.

With digital trends such as Industry 4.0, engineering has become a more automated, intelligent and controllable ecosystem. The entire value chain has steadily become more digitized — from product inception to manufacturing to aftermarket support – across a broad spectrum of industries, the ISG report says. Digital engineering service providers can assist enterprises in improving their internal processes through interventions such as digital twins, digital threads, augmented reality (AR) and virtual reality (VR), ISG says.

“Enterprises are rapidly recognizing digital engineering as key to an array of competitive advantages,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Digital firms are inherently more scalable, more efficient, more productive and more innovative.”

The report also examines the impact of digital engineering across specific industry segments, including healthcare and the automotive industry.

The 2023 ISG Provider Lens™ Digital Engineering Services report for Europe evaluates the capabilities of 34 providers across four quadrants: Design and Development (Products, Services and Experiences), Integrated Customer/User Engagement, Platforms and Application Services and Intelligent Operations

The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, TCS and Wipro as Leaders in all four quadrants, while HARMAN Digital Transformation Solutions (DTS), LTIMindtree and LTTS are named as Leaders in two quadrants each. Cyient, GlobalLogic and Tech Mahindra are named as Leaders in one quadrant each.

In addition, Motherson Technology Services Ltd. (MTSL) is named a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants, while Infinite Computer Solutions is named a Rising Star in two quadrants. GlobalLogic and Persistent Systems are named as Rising Stars in one quadrant each.

The 2023 ISG Provider Lens™ Digital Engineering Services report for Europe is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230612005080/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

[email protected]

Kate Hartley, Carrot Communications for ISG

+44 (0)20 3457 6403

[email protected]

KEYWORDS: United Kingdom Europe

INDUSTRY KEYWORDS: Apps/Applications Mobile/Wireless Technology Security Software Networks Internet Hardware Data Management Artificial Intelligence

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New Study Shows That 84% of People With Diabetes Struggle With Mental Health¹

To honour the strength of the diabetes community, Dexcom to host uplifting Puppy Yoga Event in London with Roxy Horner and Henry Slade

• New research from Dexcom shows that 84% of people agree that having diabetes can negatively impact mental health¹
• In light of new survey findings, Dexcom hosts Puppy Yoga classes in London to promote mental health within the Diabetes Community
• Dexcom will be asking people to strike a #DexcomWarriorPose in support of Diabetes Awareness Week

LONDON–(BUSINESS WIRE)–
As the UK marks the start of Diabetes Awareness Week, a new study reveals 84% of people surveyed agree having diabetes can negatively impact mental health.¹ The study, commissioned by DexCom, Inc. (Nasdaq: DXCM), the global leader in real-time continuous glucose monitoring for people with diabetes, also found that nearly all those living with diabetes (91%) believe that technology enables them to continue building a balanced lifestyle whilst managing diabetes.¹

“As a pioneer and leader in real-time CGM, our goal at Dexcom is to simplify and improve diabetes management for every person with diabetes,” says Ben Byrne, Dexcom Country Director of UK and Ireland. “Dexcom CGM systems give people with diabetes a full picture of glucose numbers to help them better manage their condition – which, in turn can help them go about their day with more confidence and less stress. This Diabetes Awareness Week and beyond, we’re proud to not only support the diabetes community with our products, but also educate the broader public on diabetes and the physical and mental effects it can have.”

To honour the strength and resilience of the diabetes community, and to promote mental health and connection, Dexcom is encouraging people with diabetes – and their friends and family – to strike a #DexcomWarriorPose by hosting a day of free puppy yoga classes at Puppy Yoga London in Hoxton, London this Saturday 17 June.

The first class at 10:30AM will be with Dexcom’s Warriors model Roxy Horner* and professional rugby player Henry Slade.* The class is open to all people living with diabetes and the broader public as a way to encourage people to learn more about the condition, which affects more than five million people in the UK.

“I was diagnosed with Type 1 right before my 30^th birthday and it certainly caused me to struggle with my mental health. I had to wrap my head around an entirely new way of life,” says model and Dexcom Warrior Roxy Horner.* “Coincidentally, I adopted my Cavapoo, Coco, the same week as my diagnosis and she’s been the most incredible friend and emotional support buddy. I am thrilled to be hosting the Dexcom Warrior Pose event this weekend to celebrate the diabetes community and de-stress with some puppy cuddles together!”

To book into the class, please go to https://www.puppy-yoga.co.uk/dexcom and use code “Dexcom” while spots last. People who are unable to join Dexcom live for the classes are encouraged to celebrate and acknowledge the diabetes community by sharing their most zen-sational Warrior poses on their social channels with the hashtag: #DexcomWarriorPose throughout Diabetes Awareness Week.

• Where: Puppy Yoga London, Held Yoga Studio (Held Yoga Studio, 42 Hoxton Square, London N1 6PB)

• Time: Dexcom will be sponsoring three classes at Puppy Yoga London. The first class will be with celebrity Dexcom Warriors model Roxy Horner and professional rugby player Henry Slade.
  • 10:30-11:30am

  • 12:30-1:30pm

  • 2:00-3:00pm

• Why: In honour of all people with diabetes and their mental health challenges and triumphs, guests are invited to come and connect / relax via Dexcom Warrior Pose puppy yoga classes.

Find out more about Dexcom and its portfolio of products by visiting Dexcom.com.

^{1 Dexcom and Censuswide online survey of people living with diabetes (Type 1 or Type 2), conducted in the UK, H1 2023, N=1,000}

^{*Roxy Horner and Henry Slade are sponsored spokespersons of Dexcom}

Methodology

The research was conducted in April 2023 by Censuswide on behalf of Dexcom with 1,000 Nationally Representative UK respondents (aged 16+) who are living with diabetes.

Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.

About DexCom, Inc.

DexCom, Inc. empowers people to take real-time control of health through innovative continuous glucose monitoring (CGM) systems. Headquartered in San Diego, Calif., and with operations across Europe and select parts of Asia/Oceania, Dexcom has emerged as a leader of diabetes care technology. By listening to the needs of users, caregivers, and providers, Dexcom works to simplify and improve diabetes management around the world. For more information about Dexcom CGM, visit www.dexcom.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230612005039/en/

Allison+Partners on behalf of Dexcom

[email protected]

KEYWORDS: Europe Ireland United Kingdom

INDUSTRY KEYWORDS: Social Media Health Technology Diabetes Other Communications Communications Celebrity Managed Care Mental Health Medical Devices Pets Fitness & Nutrition Veterinary Entertainment Consumer Health

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Royal Gold Announces Commitment to Acquire Gold/Platinum/Palladium and Copper/Nickel Royalties on Producing Serrote and Santa Rita Mines in Brazil

DENVER–(BUSINESS WIRE)–Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that its wholly-owned subsidiary RG Royalties, LLC, has entered into a binding commitment letter with ACG Acquisition Company Ltd. (“ACG”) to acquire new royalty interests on the producing Serrote and Santa Rita mines in Brazil for total cash consideration of $250 million, subject to satisfaction of certain conditions, including negotiation and execution of definitive documentation. The royalty interests consist of a gold royalty on the Serrote mine, a gold, platinum and palladium royalty on the Santa Rita mine, and a copper and nickel royalty on both the Serrote and Santa Rita mines (collectively, the “Royalties”).

ACG has agreed to acquire the Serrote and Santa Rita mines from funds advised by Appian Capital Advisory LLP (“Appian”), and Royal Gold has agreed to pay the cash consideration for the royalty interests upon the closing of the transaction between ACG and Appian, which is expected to occur by the end of July 2023, after the satisfaction of closing conditions. ACG will be renamed ACG Electric Metals upon completion of the acquisition of the mines from Appian.

“I am pleased to announce this proposed acquisition of royalties on two attractive producing mines,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Royal Gold’s financing is expected to play a significant role in the creation of ACG Electric Metals, and our role demonstrates the flexibility and attractiveness of our financing product.”

“This proposed acquisition meets our strategic criteria for investment,” continued Mr. Heissenbuttel, “as the royalties will provide predominantly precious metals revenue on producing mines that we believe have excellent long-term potential, are run by experienced local operating management complemented by seasoned corporate leadership, and are located in a mining-friendly jurisdiction. These assets, management team and jurisdiction will fit well within our existing portfolio, and our new relationship with ACG also has the potential to provide further growth opportunities in the future.”

Highlights of Proposed Acquisition

Royal Gold believes the proposed acquisition of the Royalties from ACG will provide the following benefits:

• Immediate and meaningful revenue contribution: The economic effective date of the transaction will be May 1, 2023. Royalty contributions to Royal Gold are expected to be approximately 8,000 gold equivalent ounces¹ (“GEOs”) for the period May 1 through December 31, 2023, and to average approximately 14,000 GEOs annually in the 5 years from 2024 through 2028.
• Diversified metal revenue: The Royalties are expected to provide a revenue mix weighted towards precious metals, with an approximate mix of 60% gold, 25% platinum and palladium, 10% nickel, and 5% copper for the first 5 years at current spot prices.
• Producing mines with proven operating teams in an established mining jurisdiction: Operations at Santa Rita restarted in 2019 followed by maiden production from Serrote in 2021, with significant investments in infrastructure by the current and previous owners. Local management has a history of successfully operating the mines, has a strong safety, environmental and social culture, and has positive relationships with supportive local communities.
• Significant long-term growth potential on large areas of interest: The areas of interest covered by the Royalties at both mines are substantial and include targets with high potential for exploration and production upside. At the Santa Rita mine, an underground expansion project could provide a 27-year extension to the mine life. At the Serrote mine, open pit resources outside of the base case mine plan could provide the potential to expand the existing pit and extend the mine life.
• ESG attributes enhance the Royal Gold portfolio: Both the Serrote and Santa Rita operations are forecasted to have low first quartile carbon emissions intensity² over the mine lives and are expected to improve the Royal Gold portfolio average for carbon emissions intensity, total energy intensity and safety statistics³.
• New relationship with growth-focused counterparty: ACG’s stated strategy for ACG Electric Metals is to grow production of critical metals to supply the western automotive industry. The commitment letter with ACG includes terms that provide Royal Gold with the ability to participate in the future growth of ACG Electric Metals through a right of first refusal on the sale of any streams or additional royalties on the Serrote and Santa Rita mines and a right of first offer on royalty and stream financing for any future projects acquired by ACG Electric Metals.

¹ Gold equivalent ounces, or GEOs, are calculated as revenue for a period divided by the average gold price for that same period. Prices used for GEO projections are $1,970/oz gold, $1,000/oz platinum, $1,375/oz palladium, $3.65/lb copper and $9.25/lb nickel.

² Calculated life of mine emission intensity compared to 2020 global copper and nickel intensity curves compiled by Skarn Associates.

³ As compared to Royal Gold’s 2021 portfolio average greenhouse gas (GHG) emissions intensity of 0.74 tCO₂(eq)/GEO, total energy intensity of 14 GJ/GEO and total recordable incident frequency rate of 3.8 per million person hours worked.

Overview of Proposed Acquisition

The commitment letter addresses the allocation of the purchase price for the Royalties to be purchased, the ESG contribution to be made by Royal Gold, the security for the obligations of ACG Electric Metals, the conditions to closing, and other terms, as summarized below.

Gold/Platinum/Palladium Royalties

At closing, Royal Gold will pay cash consideration of $215 million in return for:

• A gross smelter return royalty of 85% of the payable gold from the Serrote mine until achievement of a royalty revenue threshold of $250 million from this royalty, and 45% thereafter; and,

• A gross smelter return royalty of 64 ounces of gold, 135 ounces of platinum and 100 ounces of palladium for each 1 million pounds of payable nickel produced from the Santa Rita mine until the achievement of a royalty revenue threshold of $100 million from this royalty, at which point the royalty on gold will continue and the royalty on platinum and palladium will terminate. The initial royalty prior to reaching the revenue threshold represents approximately 85% of payable precious metals produced at Santa Rita.

Royalty revenue will be determined using fixed payabilities of 93% for gold at the Serrote mine and 86% for nickel at the Santa Rita mine.

The royalties will be effective as of May 1, 2023, and revenue to Royal Gold will be accrued from that date. There will be no deductions applicable to royalty payments. Royal Gold expects to receive royalty payments in the month following any payment made to ACG for concentrates from offtakers.

Copper/Nickel Royalty

At closing, Royal Gold will pay cash consideration of $35 million in return for a gross smelter return royalty on total payable copper and nickel production from the Serrote and Santa Rita mines at a rate of 0.50% during 2023 and 2024, 0.75% during 2025 and 1.10% thereafter until the achievement of a royalty revenue threshold of $90 million from this royalty, and 0.55% thereafter. Royalty revenue will be determined using fixed payabilities of 97% for copper at the Serrote mine, and 86% for nickel and 72% for copper at the Santa Rita mine.

The royalty will be effective as of May 1, 2023, and revenue to Royal Gold will be accrued from that date. There will be no deductions applicable to royalty payments. Royal Gold expects to receive royalty payments in the month following any payment made to ACG for metal or concentrates from offtakers.

ESG Contribution

Royal Gold will make a financial commitment of 0.25% of the annual royalty payments received to support programs benefiting the communities within the area of influence of each of the Serrote and Santa Rita mines.

Security

The interests of Royal Gold under the proposed royalty agreements will be secured by pledges of the direct and indirect ownership interests held by ACG in the Serrote and Santa Rita mines, subordinated to the interests of senior bank lenders who will provide ACG with a $225 million term loan and $75 million revolving credit facility. Royal Gold’s security interests will rank equally to those in support of royalties on Santa Rita held by Appian and La Mancha Resource Capital, LLP (“La Mancha”).

Other Key Terms of the Proposed Acquisition

The areas of interest for the Royalties will include the areas covered by the mineral rights at each of the Serrote and Santa Rita mines at the time of closing of the proposed acquisition.

Royal Gold will hold a right of first refusal on future royalty and stream opportunities within the areas of interest of the Serrote and Santa Rita mines, and prior to the achievement of all of the royalty thresholds described above, a right of first offer on future royalty and stream opportunities on any other mining projects acquired by ACG Electric Metals.

Upon the closing of the proposed acquisition of the Royalties, ACG Electric Metals will form an Independent Geotechnical and Hydrogeological Review Committee (the “IGHR Committee”) with a mandate to review design and operations, and provide technical advice and guidance, at both of the Serrote and Santa Rita open pits. The IGHR Committee is expected to have three members, including a senior technical representative from ACG Electric Metals and one independent expert appointed by each of ACG Electric Metals and Royal Gold. Royal Gold’s role on the IGHR Committee will be strictly advisory and Royal Gold will have no operating decision-making authority.

Appian will be restricted from soliciting senior personnel from the management teams of both the Serrote and Santa Rita mines for a period of 18 months after closing.

Conditions to Closing

Closing of our proposed acquisition of the Royalties will be conditional on the successful completion of the ACG transaction with Appian, a minimum working capital position for ACG at closing, and other closing conditions that are standard for transactions of this nature, including the negotiation and execution of definitive royalty and security agreements with ACG and an intercreditor agreement with the senior lenders.

Funding

Royal Gold will pay cash consideration of $250 million at closing, which Royal Gold expects to source from available cash resources and a draw of approximately $200 million on Royal Gold’s revolving credit facility assuming current metal prices. On June 6, 2023, Royal Gold repaid $100 million of the outstanding balance on the revolving credit facility, resulting in an outstanding balance of $400 million on that date.

Timing

Closing of the proposed acquisition of the Royalties is anticipated to occur by the end of July 2023, after completion of all conditions to closing.

Background on the ACG / Appian Transaction

ACG has announced a proposed transaction with subsidiaries of Appian to acquire the entities that own the Serrote and Santa Rita mines and certain shareholder loans for $1 billion in enterprise value sourced from a combination of royalty financing from Royal Gold, equity financing, a nickel prepay agreement and bank debt.

ACG will obtain minimum equity funding of $615 million, including strategic placements from Glencore plc, Stellantis N.V. and La Mancha, and a nickel prepay agreement to be provided by PowerCo SE, a subsidiary of Volkswagen Group, to help fund the ACG transaction with Appian. Royal Gold believes that the involvement of strategic investors of this caliber demonstrates the potential of the Serrote and Santa Rita mines to provide a secure and low carbon intensity supply of clean energy metals.

ACG will obtain bank financing in the form of a $225 million term loan and $75 million revolving credit facility, to be provided by a syndicate led by Citigroup, ING and SocGen, to help fund the ACG transaction with Appian.

Background on the Serrote and Santa Rita Mines

To support a listing on the London Stock Exchange, ACG contracted SLR Consulting (Canada) Ltd. to prepare a Competent Person’s Report (“CPRs”) on each of the Serrote and Santa Rita mines. These reports conform to the Financial Conduct Authority (FCA) Primary Market Technical Note 619.1 of the United Kingdom and are available on the ACG website at https://www.acgcorp.co.

Serrote Mine

Serrote is a copper/gold mining operation owned by Appian’s wholly-owned affiliate Mineração Vale Verde (“MVV”), and is situated in northeast Brazil in the State of Alagoas. The region offers good infrastructure, including water, power and highways to support development and operations, and multiple port options for concentrate shipment.

Originally explored in the 1980s, Appian acquired the Serrote project in 2018 and subsequently published a feasibility study with a plant capacity of 4.1 million tonnes per year. Construction began in 2019 and first concentrate was shipped in November 2021.

The CPR for the Serrote mine states that, as of December 2022, the Serrote mine hosted Proven and Probable Reserves of approximately 46.7 million tonnes at a copper grade of 0.58% and a gold grade of 0.10 grams per tonne, and Measured and Indicated Resources (inclusive of Reserves) consisted of approximately 96.7 million tonnes at a copper grade of 0.54% and a gold grade of approximately 0.10 grams per tonne. The existing reserve plan is expected to support production until 2034 and there is the potential to extend the mine life by expanding the pit to include resources from the large resource inventory. The last drill campaign included in the resource estimate was completed in May 2021. Additional drilling has since been carried out with the aim of extending the lifespan of the open pit reserve, and a pit expansion feasibility study is underway. There is additional exploration potential at near-mine targets and from nearby satellite feed sources. Preliminary economic assessments (“PEAs”) are currently underway for the Caboclo Rogério deposit, and the construction of an oxide processing plant, which has the potential to further expand near-term production by processing stockpiled oxide material.

The CPR for the Serrote mine states that the mining rate averages approximately 30,000 tonnes per day at a strip ratio of 1.7:1. The processing facility has a capacity of 11,000 tonnes per day and uses conventional crushing, grinding and flotation to produce a copper concentrate containing by-product gold. Life of mine copper production is expected to average approximately 44 million pounds per year at an approximate 85% recovery rate and all-in sustaining cost (“AISC”) of approximately $1.85 per pound⁴. Gold recovery is targeted at 65% and gold accounts for approximately 7% of the expected revenue from the Serrote mine⁴.

⁴ Assumes copper prices of $3.55/lb in 2023, $3.82/lb in 2024, $3.94/lb in 2025, $3.89/lb in 2026 and $3.59/lb thereafter; gold prices of $1,753/oz in 2023, $1,719/oz in 2024, $1,654/oz in 2025, $1,593/oz in 2026 and $1,615/oz thereafter; and US$/R$ exchange rate of 5.39 in 2023, 5.44 in 2024, 5.66 in 2025 and 5.55 thereafter, as disclosed in the CPR.

Santa Rita Mine

Santa Rita is an open pit nickel sulphide mine located in Bahia State, Brazil, approximately 600 kilometers south of Serrote and is owned by Atlantic Nickel (“ATN”), a wholly-owned Appian affiliate. The mine is supported by grid power, paved road access, water supply from the De Contas River, and the nearby port of Ilhéus.

The Santa Rita deposit was discovered in 1976 with various companies carrying out work until production commenced in 2009. Operations were placed on care and maintenance by the previous owner in 2015 due to several factors including low metal prices. Appian acquired the mine in 2018 and following an optimization of the open pit mine plan and refurbishment of the processing plant, first concentrate was shipped in early 2020.

The CPR for the Santa Rita mine states that, as of December 2022, open pit Proven and Probable Reserves at Santa Rita consisted of approximately 34.8 million tonnes at a nickel sulphide grade of 0.31% and copper grade of 0.11%, and Measured and Indicated Resources (inclusive of Reserves) consisted of approximately 43.4 million tonnes at a nickel sulphide grade of 0.33% and copper grade of 0.12%. The open pit reserve is expected to support production until 2028.

The CPR presents a PEA on the underground potential at the Santa Rita mine. The underground inventory consists of an Indicated Resource of 105.8 million tonnes at a nickel sulfide grade of 0.54% and copper grade of 0.18%, along with a 130.9 million tonne Inferred Resource with comparable grades. The PEA contemplates mining approximately 141.7 million tonnes of the underground resource over a 27-year mine life using the sub-level caving mining method. An infill drill program and prefeasibility study on the underground project are currently underway.

Additional exploration potential includes open pit and underground targets identified at the existing Santa Rita mine as well as on a 46,000 hectare regional exploration portfolio. The most advanced of these targets is the Palestina project located approximately 25 kilometers from the Santa Rita processing plant. Work is currently underway to evaluate the potential to truck ore from Palestina to the Santa Rita plant to provide additional open pit feed during the transition from open pit mining to underground at the Santa Rita mine.

The CPR for the Santa Rita mine states that the current operations consist of open pit mining at a rate of 70,000 tonnes per day at a strip ratio of 2.8:1. The processing facility capacity is 17,800 tonnes per day and uses crushing, grinding and flotation to produce a nickel sulphide concentrate with by-product copper, cobalt, platinum, palladium, and gold. Nickel recovery is expected to range from approximately 82% to 85% over the open pit and underground mine life, respectively. Copper recovery is targeted at 75%. The open pit is expected to recover an average of 32 million pounds of nickel per year at an AISC of $5.26 per pound of nickel over the mine life⁵. The projected revenue over the open pit mine life is approximately 84% nickel, 9% copper and 2% cobalt, with the remaining 5% from platinum, palladium, and gold⁵.

⁵ Assumes nickel prices of $9.87/lb in 2023, $9.46/lb in 2024, $9.61/lb in 2025, $9.13/lb in 2026 and $8.46/lb thereafter; copper prices of $3.55/lb in 2023, $3.82/lb in 2024, $3.94/lb in 2025, $3.89/lb in 2026 and $3.59/lb thereafter; cobalt prices of $25.58/lb in 2023, $27.70/lb in 2024, $27.37/lb in 2025, $26.43/lb in 2026 and $23.53/lb thereafter; gold prices of $1,753/oz in 2023, $1,719/oz in 2024, $1,654/oz in 2025, $1,593/oz in 2026 and $1,615/oz thereafter; platinum prices of $1,027/lb in 2023, $1,099/oz in 2024, $1,121/oz in 2025, $1,195/oz in 2026 and $1,140/oz thereafter; palladium prices of $1,977/oz in 2023, $1,763/oz in 2024, $1,544 in 2025, $1,325 in 2026 and $1,363/oz thereafter; and US$/R$ exchange rate of 5.39 in 2023, 5.44 in 2024, 5.66 in 2025 and 5.55 thereafter, as disclosed in the CPR.

Background on ACG

ACG is a special purpose acquisition company looking to benefit from favorable price conditions for new economy metals and other mining materials. On October 12, 2022, ACG raised proceeds of approximately $125 million in its initial public offering and listed on the London Stock Exchange.

Upon closing of the ACG transaction with Appian to acquire the Appian entities that own the Serrote and Santa Rita mines, ACG will be renamed ACG Electric Metals Limited. ACG Electric Metals will continue to be led by its Chief Executive Officer, Artem Volynets, and its Chief Financial Officer, Carole Whittall. Responsibility for the operation of the mines in Brazil will continue to be held by Paulo Castellari-Porchia and Milson Mundim, each an employee of Appian. Following completion of the ACG transaction with Appian, the full operating team in Brazil will join ACG Electric Metals.

Corporate Profile

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests. As of March 31, 2023, the Company owned interests on 182 properties on five continents, including interests on 40 producing mines and 19 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol “RGLD.” The Company’s website is located at www.royalgold.com.

Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” or negatives of these words or similar expressions. Forward-looking statements include, among others, statements about the benefits of the proposed acquisition of the Royalties; the expected closing dates for the proposed acquisition of the Royalties and the proposed ACG transaction with Appian; the expected role of Royal Gold’s financing in the creation of ACG Electric Metals; the long-term potential of the Serrote and Santa Rita mines; the potential for expansion of the mine life at the Santa Rita mine and the existing pit and mine life at the Serrote mine; the economic effective date of the proposed acquisition of the Royalties; the revenue mix to be provided by the Royalties; expected royalty contributions in GEOs from the Royalties; the forecasted low carbon emissions intensity over the mines lives and the enhancement of Royal Gold’s portfolio average for carbon emissions intensity, total energy intensity and safety statistics; the ability to participate in the future growth of ACG Electric Metals provided by a right of first refusal and a right of first offer; cash consideration for the proposed acquisition of the Royalties and the allocation of the cash consideration for each of the Royalties; the fixed payabilities used to determine the royalty revenue; the timing of the accrual and receipt of revenue; the lack of deductions from royalty payments; Royal Gold’s ESG contribution; security for the interests of Royal Gold under the proposed royalty agreements; the area of interests covered; the formation and membership of the IGHR Committee and Royal Gold’s role on the IGHR Committee; the restriction of Appian from soliciting senior management from the mines; conditioning of the proposed acquisition of the Royalties on the completion of the ACG transaction with Appian and other closing conditions; Royal Gold’s funding of the proposed acquisition; the repayment by Royal Gold of amounts borrowed under the revolving credit facility; the estimated amount and timing of royalty payments; our acquisition and capital allocation strategies; the expected operating and financial performance of the Serrote and Santa Rita mines, including production, drilling objectives, mine plans, environmental and feasibility studies, mine infrastructure and facilities, mineral resources and reserves, and development; the required amounts and sources of funding for the ACG transaction with Appian; estimated recovery rates, revenue, and AISC for each of the Serrote and Santa Rita mines; the involvement of certain strategic investors in the proposed ACG transaction with Appian and the potential of the Serrote and Santa Rita mines to provide a secure and low carbon intensity supply of clean energy metals; name change for ACG; management of ACG and the Serrote and Santa Rita mines; and the full operating team in Brazil joining ACG Electric Metals.

Forward-looking statements are based on current expectations, estimates and assumptions that involve risks and uncertainties that could cause actual results to differ materially from those projected. The risks and uncertainties that could cause actual results to differ materially from those in forward looking statements include, without limitation, a lower-price environment for gold, platinum, palladium, silver or copper; operating activities or financial performance of the Serrote and Santa Rita mines, including inaccuracies in ACG’s or the operator’s disclosures, variations between actual and forecasted performance, the operator’s ability to complete projects on schedule and as planned, the operator’s changes to mine plans and reserves and resources, the operator’s liquidity needs, mining hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, contractual issues involving our royalty agreement, or operational disruptions due to public health crises; environmental risks, including those caused by climate change; potential cyber-attacks, including ransomware; adverse economic and market conditions; risks of doing business in foreign jurisdictions; changes in laws or regulations; the risk of litigation related to the proposed acquisition of the Royalties; the diversion of management time from ongoing business operations due to transaction-related issues; the volatility in commodity prices; competition, government regulation or other actions; and other risks detailed in Royal Gold’s Annual Report on Form 10-K for the year ended December 31, 2022, available on Royal Gold’s website at royalgold.com and on the Securities and Exchange Commission website at http://www.sec.gov. Other unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward-looking statements.

Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.

Statement Regarding Third-Party Information: Certain disclosures herein relating to the Serrote and Santa Rita mines are based on information publicly disclosed by ACG and Appian and information available in the public domain as at the date hereof. Royal Gold does not independently prepare or verify this information and does not have access to the property or sufficient data to do so and refers the reader to the disclosures of ACG and Appian.

This announcement is not an offer for sale of securities in the United States or in any other jurisdiction. No securities of ACG have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, delivered, assigned or otherwise transferred, directly or indirectly, within the United States except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There has not been and will be no public offering of the securities of ACG in the United States.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230611581330/en/

For further information, please contact:

Alistair Baker

Vice President Investor Relations and Business Development

(720) 554-6995

KEYWORDS: North America United States Brazil South America Canada Colorado

INDUSTRY KEYWORDS: Mining/Minerals Natural Resources

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