U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — Investor Presentation (December 2023)
35 slides from U.s. Global Investors's investor presentation, Dec 6, 2023
Slide 1: Corporate Presentation
Corporate Presentation NOVEMBER 2023 FNV: TSX | NYSE
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT 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, which may includ
Slide 3: The Gold Investment That Works
3 THE GOLD INVESTMENT THAT WORKS Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash flow producing assets. Leading Low-risk Diversified Growth track record business model portfolio and optionality
Slide 4: Shareholder Returns: Leading Track Record
4 SHAREHOLDER RETURNS Leading Track Record (CAGR Since FNV Inception 1, 2, 3) A lower-risk gold investment to Franco-Nevada (FNV) - US$ basis hedge against market volatility NASDAQ NYSE and TSX listed S&P 500 Gold Bullion ETF Large holders include: Fidelity Barclays US Aggregate Bond BlackRock G
Slide 5: Partnership Success: Industry-Leading Operators
5 PARTNERSHIP SUCCESS Royalty and stream financing that provides Industry-Leading Operators long-term alignment and financial flexibility. Lundin Mining: Candelaria Acquisition Detour Lake: A Partnership Success Story
Slide 6: ESG Leadership
6 ESG LEADERSHIP Our ESG Focus ESG Ratings & Recognition Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Diversity, Inclusion & Well-Being Climate Action Transparent ESG Disclosure The use by Franco-Nevada Corporation of any MSCI ESG Research LLC or its
Slide 7: Business Model
Franco &)Nevada
Slide 8: Business Model Advantages
8 BUSINESS MODEL ADVANTAGES Optionality Potential for exploration success on approximately 66,200 km2 Focus on Growth Management not occupied with operational decisions Diversified Portfolio Non-operating business is more scalable Free Cash Flow Business Not exposed to capital calls Limited Cost Inf
Slide 9: Financing Successful Mines
9 FINANCING SUCCESSFUL MINES Partnership Approach Alignment with partners for M&A Debt Reduction a win-win solution Support leading operators through long-term Project Development Emerging Projects partnership Technical team with strong track record identifying successful projects
Slide 10: Why We Are Different
10 WHY WE ARE DIFFERENT Shareholder Financial Cyclical Asset Alignment Flexibility Investing Selection Committed to high share Avoiding long-term debt Board and management Strong technical skills ownership and low and paying progressive have a patient approach and a focus on G&A – treating and susta
Slide 11: Asset Portfolio
Asset Portfolio
Slide 12: Assets
12 431 Assets Covering Approximately 66,200 km2 Our Portfolio 431 TOTAL 115 Precious Metals Diversified PRODUCING 45 Precious Metals Diversified ADVANCED 271 EXPLORATION Not all assets shown on map, including exploration assets Asset count as of October 31, 2023
Slide 13: Core Precious Metal Streams Outperforming
13 CORE PRECIOUS METAL STREAMS OUTPERFORMING Antamina Cobre Panama $610M investment $1.36B investment 2022 revenue: $68M 2022 revenue: $223M Mine life potential1: 24+ years Mine life potential1: 30+ years Payback2: 79% Payback2: 50% Silver production has exceeded Expanding to 100 Mtpa in 20234 expec
Slide 14: Long-Life Assets
14 LONG-LIFE ASSETS Franco-Nevada Growing reserves and reserve lives Sr. Gold Producers Long-duration portfolio increases optionality Int. Gold Producers 0 Years 2 4 6 8 10 12 14 16 18 2017 2022 Source: Bank of America/Merrill Lynch (May 2023) Calculations as at December 31, 2022 Seniors: Agnico Eag
Slide 15: Revenue Diversification
15 REVENUE DIVERSIFICATION Diversified with Low Risk (Q3 2023 Revenue) Gas 3% Rest of World Oil 12% Cobre Panama Other 12% Other 22% Canada & Mining USA 28% 5% 31% PGM 3% Mexico & Central America Candelaria Silver 28% 11% 10% Gold 65% Energy Antapaccay 17% 9% South America 29% Vale Antamina Guadalup
Slide 16: Royalty Optionality
16 ROYALTY OPTIONALITY 2007 2008 - 2022 2022 120 100 >45 Moz gold Mineral Reserves (Moz) >$2.1B3 produced Proven & Probable 80 revenue to FNV 60 from portfolio >3.5x Gold increase1 40 Reserves2 of same assets Gold as reported 20 Reserves2 Dec. 2022 at time of IPO - IPO Reserves $1.2B paid for increa
Slide 17: Increasing Profitability
17 INCREASING PROFITABILITY 2022 83% 2021 YTD 2023 Adjusted EBITDA Margin1,2 2020 2019 56% 2018 YTD 2023 Adjusted Net Income Margin1,2 2017 - 200 400 600 800 1,000 1,200 1,400 US $ (Millions) G&A Cost of Sales Depletion Taxes/Other Adjusted Net Income 1. Please see notes on appendix slides – GEOs an
Slide 18: Track Record
Franco &)Nevada
Slide 19: Track Record
19 TRACK RECORD GEOs1 Revenue Adjusted EBITDA2 (000’s) (US$ Millions) (US$ Millions) 800 1,400 1,200 700 1,200 1,000 600 1,000 800 500 800 400 600 600 300 400 200 400 200 200 100 - - - '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 YTD '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
Slide 20: Progressive & Sustainable Dividends
20 PROGRESSIVE & SUSTAINABLE DIVIDENDS 16 Consecutive Increases Quarterly Dividend US$0.34/share1 US$0.34/share1 $260 $1,950 $240 $1,800 Dividends Paid US $ (Millions) per annum $220 $1,650 Dividend paid since IPO2 $200 $1,500 $180 $1,350 >$2.1B Gold Price US $ $160 $1,200 $140 $1,050 Indicative 202
Slide 21: Outperforming Bull & Bear Markets
21 OUTPERFORMING BULL & BEAR MARKETS 40% 32% 20% 14% 15% 10% 8% 1% – (6%) (14%) (20%) (33%) (40%) Bull Market Bear Market Bull Market (2008 - 2012) (2013 - 2015) (2016 - Present) Franco-Nevada (US$) Gold GDX1 1. GDX is a Gold Equity index comprised mostly of gold operating companies 2. Source: TD Se
Slide 22: Growth Outlook
Franco &)Nevada
Slide 23: Guidance
23 GUIDANCE 2023 Guidance (Current)1, 2 2023 Guidance (Previous)1, 2 2027 Outlook3 620,000-640,000 640,000-700,000 760,000-820,000 GEOs Total – Assumes lower oil and gas prices2 – Assumes lower oil and gas prices2 Assumes flat commodity prices2 + Vale royalty attributable production + Vale royalty a
Slide 24: Cobre Panama Growth Outlook
24 COBRE PANAMA GROWTH OUTLOOK GEO Growth Profile On track to achieve 100Mtpa by the end of 20231 First Quantum updated guidance of 365,000- 375,000 tonnes of copper for 2023, as at October 24, 20231 1. Law 406, the law that approved the revised contract for the Cobre Panama mine is currently subjec
Slide 25: Organic Growth Pipeline
25 ORGANIC GROWTH PIPELINE 2023 2024 2025 2026 2027 Expansions1 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cobre Panama2 Panama Operating Subika Ghana Under construction Tasiast Mauritania Permitting Vale Brazil Kirkland Lake Ontario Island Gold Ontario Detour Lake Ontario Stillwater Montana
Slide 26: Producing Asset News
26 PRODUCING ASSET NEWS Streams Law 406, the law that approved the revised contract for the Cobre Panama mine is currently subject to a number of Cobre Panama Panama constitutional challenges. Please refer to our recent news releases which provide updates on Cobre Panama. Candelaria Chile 2024 EIA a
Slide 27: Advanced and Exploration News
ADVANCED AND EXPLORATION NEWS 27 Construction Updates First gold poured in May 2023. Sunbird Deposit to be incorporated into updated Mineral Resource and Séguéla Côte d’Ivoire Mineral Reserve in Q4 2023 First gold poured in June 2023. Commercial production achieved in November 2023. FNV acquired an
Slide 28: Long-Term Optionality
28 LONG-TERM OPTIONALITY M&I Royalty Ounces1 Long-Term Assets Assets in 5-year Outlook2 Holt Complex (Au) Other Cascabel (Cu, Au, Ag) Pandora Expansion Long-Term (PGM) Assets Ring of Fire 3.4 Moz (Cr, Ni) Crawford NuevaUnión (Ni) (Cu, Au) 15 Advanced and 225 Exploration Taca Taca (Cu, Au) Assets1 1.
Slide 29: Available Capital
29 AVAILABLE CAPITAL NUEVAUNIÓN (RELINCHO) 1. As at September 30, 2023 2. $1B Corporate Revolver 3. Funding commitments subsequent to September 30, 2023 will be funded with cash flow from operations
Slide 30: Board and Management
30 BOARD AND MANAGEMENT Board Management David Harquail Paul Brink Tom Albanese Derek Evans Paul Brink Sandip Rana Lloyd Hong Chair of the Board President & CEO Former CEO CEO President & CEO CFO CLO Rio Tinto MEG Energy Dr. Catharine Farrow Maureen Jensen Jennifer Maki Jacques Perron Eaun Gray Jaso
Slide 31: Thank You for Your Interest
THANK YOU FOR YOUR INTEREST IN www.FRANCO-NEVADA.com TSX: FNV | NYSE: FNV
Slide 32: Appendix – GEOs and Non-GAAP Measures
32 APPENDIX – GEOS AND NON-GAAP MEASURES 1. GEOs include Franco-Nevada’s attributable share of production from our Mining and Energy assets, after applicable recovery and payability factors. GEOs are estimated on a gross basis for NSR royalties and, in the case of stream ounces, before the payment o
Slide 33: ESG Leadership
33 ESG LEADERSHIP Responsible Good Governance & Community Contributions Capital Allocation Shareholder Alignment We are committed to allocating capital to responsible We are committed to contributing to our communities We are committed to responsible governance practices operators that provide safe
Slide 34: ESG Leadership
34 ESG LEADERSHIP Fostering Diversity, Transparent Inclusion & Well-Being Climate Action ESG Disclosure We are committed to maintaining a safe and We have a goal to achieve net-zero GHG emissions by supportive environment for our team members and 2050 with respect to our corporate operations and are
Slide 35: CRA Audit (2012-2019)
35 CRA AUDIT (2012-2019) On April 28, 2023, Franco-Nevada reached a settlement with the CRA with respect to the domestic reassessments (2014-2017) and Foreign Accrual Property Income reassessments (2012-2013), with such reassessments to be vacated entirely. The potential tax exposure related to thes
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