Franco-nevada Corporation · TSX:FNV
Franco-nevada — BMO 31st Global Metals & Mining Conference 2022
25 slides from Franco-nevada's conference presentation, Mar 1, 2022
Slide 1: BMO 31st Global Mining Conference
BMO A Franco x) Nevada 315T GLOBAL FNV: TSX | NYSE MINING CONFE MARCH 1, 2022
Slide 2: Cautionary Statement: Forward Looking Statements
C A U T I O N A R Y S TAT E M E N T Forward Looking Statements This presentation contains “forward looking information” and “forward looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, whi
Slide 3: The Gold Investment That Works
T H E G O L D I N V E S T M E N T T H AT W O R K S Leading track record Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash flow producing assets. Low-risk business model Diversified portfolio Leading Low-risk Diversified Gr
Slide 4: Leading Track Record: Shareholder Returns
S H A R E H O L D E R R E T U R N S Leading Track Record ( C A G R S i n c e F N V I n c e p t i o n 1, 2, 3) A lower-risk gold investment to hedge Franco-Nevada (FNV) - US$ basis against market volatility NASDAQ NYSE and TSX listed S&P 500 Large holders include: Gold Bullion ETF • BlackRock Barclay
Slide 5: Track Record
T R A C K R E C O R D GEOs1 Revenue Market Capitalization ( 0 0 0 ’ s ) ( U S $ M i l l i o n s ) ( U S $ B i l l i o n s ) 600 1,200 30 500 1,000 25 400 800 20 300 600 15 200 400 10 100 200 5 - - - '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 9 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Slide 6: Increasing Profitability
I N C R E A S I N G P R O F I TA B I L I T Y 2021 9 mos 2020 2019 First nine months Adjusted EBITDA Margin1 of 85% 2018 and Adjusted Net Income Margin1 of 52% 2017 2016 - 200 400 600 800 1,000 1,200 US $ (Millions) G&A Cost of Sales Depletion Taxes/Other Profit 1. Please see notes on Appendix slides
Slide 7: Progressive & Sustainable Dividends
P R O G R E S S I V E & S U S TA I N A B L E D I V I D E N D S 240 220 2,000 Quarterly Dividend 200 1,800 Increased to US$0.32 per Dividends Paid US $ (Millions) per annum 180 1,600 Share as of Q1 2022 Average Gold Price US $ 160 1,400 Dividend Payment 140 1,200 120 1,000 15th annual dividend increa
Slide 8: Business Model
Business Model A N T A P A C C A Y
Slide 9: Business Model Advantages
B U S I N E S S M O D E L A D VA N TA G E S Optionality Potential for exploration success on 63,000 sq km1 Focus on Growth Management not occupied with operational decisions Free Cash Flow Business Not exposed to capital calls Limited Cost Inflation Streams/NSRs not exposed to cost inflation High Ma
Slide 10: Our ESG Focus
E S G L E A D E R S H I P Our ESG Focus Top ESG Rankings Responsible Capital Allocation Good Governance & Shareholder Alignment Community Contributions Fostering Diversity and Inclusion Transparent ESG Disclosure For additional details, please see our 2021 ESG Report The use by Franco-Nevada Corpora
Slide 11: Partnership Approach
F I N A N C I N G S U C C E S S F U L M I N E S Partnership Approach Alignment with partners for M&A Financing Project Financing a win-win solution Support leading operators through long-term partnership Technical team with strong Debt Reduction Emerging Projects track record identifying successful
Slide 12: Asset Portfolio
Asset Portfolio C O B R E P A N A M A
Slide 13: Assets
FNV: TSX | NYSE 405 Assets Covering 63,000 km2 Our Portfolio 405 TOTAL 112 Precious Metals Diversified PRODUCING 43 Precious Metals Diversified ADVANCED 250 EXPLORATION1 1. Exploration assets not shown Asset count as of January 28, 2022 47,300 km2 shown in the 2021 Asset Handbook does not include Va
Slide 14: Royalty Optionality
R O YA LT Y O P T I O N A L I T Y 2007 2008 - 2020 2020 120 100 >39 Moz gold Mineral Reserves (Moz) produced Proven & Probable 80 60 >$1.6B3 revenue to FNV from >3x 40 portfolio Gold ounces2 of same assets increase1 as reported Gold ounces2 at Dec. 2020 20 time of IPO - IPO Reserves $1.2B paid for i
Slide 15: Core Precious Metal Streams Outperforming
C O R E P R E C I O U S M E TA L S T R E A M S O U T P E R F O R M I N G Antamina Cobre Panama $610M investment $1.36B investment 2020 revenue: $57M 2020 revenue: $135M Mine life potential1: 30+ years Mine life potential1: 35+ years Payback: 60% Payback: 22% Silver production has exceeded Expanding
Slide 16: Long-Life Assets
L O N G - L I F E A S S E T S 2015 Franco-Nevada Growing reserves and 2020 reserve lives 2015 Sr. Gold Producers 2020 Long-duration portfolio increases optionality 2015 Int. Gold Producers 2020 0 Years 2 4 6 8 10 12 14 16 18 20 Source: Bank of America North American Precious Metals Weekly (May 3, 20
Slide 17: Revenue Diversification
R E V E N U E D I V E R S I F I C AT I O N Diversified with Low Risk (Q3 2021 Revenue) Rest of First World Cobre Panama Quantum 9% United States 17% 17% 20% Diversified 28% Central Antamina Other Glencore America & Other 8% 43% 8% Mexico 45% 23% Geography Assets Operator Commodity Gold Canada 15% An
Slide 18: Growth Outlook
Growth Outlook A N T A M I N A
Slide 19: GEO Growth Profile
S T R O N G G R O W T H O U T L O O K GEO Growth Profile (Energy Revenue Excluded) 700 600 Higher contribution from Core Assets in 2021 500 GEOs (000's) 400 Cobre Panama ramp-up 300 through 2025 driving 200 growth 100 0 2019 2020 2021 2025 Actual Actual Guidance Outlook Cobre Panama Antapaccay Antam
Slide 20: Organic Growth Drivers
O R G A N I C G R O W T H D R I V E R S 2022 2023 2024 2025 2026 Expansions1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cobre Panama Panama Stillwater Montana Detour Lake Ontario Tasiast Mauritania Vale Brazil Subika Ghana Macassa Ontario Island Gold Ontario New Mines Est. Start2 Q1
Slide 21: Royalty Ounce Breakdown
R O YA LT Y O U N C E B R E A K D O W N Other Assets in 5 Year Guidance Top 10 Assets in 5 Year Guidance 2.4 Moz + Long-Term Assets 12.1 Moz + 17.5M M&I Royalty Ounces Plus >250 advanced and exploration assets For calculation of M&I Royalty Ounces refer to Franco-Nevada 2021 Asset Handbook 3.0 Moz N
Slide 22: Available Capital
AVA I L A B L E C A P I TA L Available capital3 Cash and cash equivalents1 Credit Facilities1, 2 $1.4B ≈$1.1B DEBT FREE $346.7M 1. As at September 30, 2021 2. Facilities include $1B Corporate, $100M Barbados 3. Funding commitments subsequent to September 30, 2021 will be funded with cash flow from o
Slide 23: Why We Are Different
W H Y W E A R E D I F F E R E N T Shareholder Alignment Financial Flexibility Committed to high-share ownership Avoiding long-term debt and and low G&A – treating shareholder paying progressive and funds as our own sustainable dividends ensures capital availability at all times Cyclical Investing As
Slide 24: Thank You For Your Interest
THANK YOU FOR YOUR INTEREST IN Leading Low-risk Diversified Growth track record business model portfolio and optionality www.FRANCO-NEVADA.com TSX: FNV | NYSE: FNV
Slide 25: Appendix – GEOs and Non-GAAP Measures
A P P E N D I X – G E O S A N D For the three months ended For the nine months ended N O N - G A A P M E A S U R E S Adjusted Net Income September 30, September 30, (expressed in millions, except per share amounts) 2021 2020 2021 2020 Net income $ 166.0 $ 153.9 $ 512.8 $ 149.5 1. Gold and Gold Equiv
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