Franco-nevada Corporation · TSX:FNV
Franco-nevada — Investor Presentation (February 2024)
38 slides from Franco-nevada's investor presentation, February 2024
Slide 1: Corporate Presentation February 2024
2 0 2 4 C O R P O R A T E P R E S E N T A T I O N F E B R U A R Y
Slide 2: Cautionary Statement: Forward Looking Statements
CAUTIONARY STATEMENT 2 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: Proven Way to Invest in Gold
PROVEN WAY TO INVEST IN GOLD 3 Proven Business Model Leading Track Record ESG Focused Diversified Portfolio Growth and Optionality
Slide 4: Business Model
F Franco x)Nevada BUSINESS MODEL
Slide 5: Business Model Advantages
BUSINESS MODEL ADVANTAGES 5 B U S I N E S S M O D E L Focus on Diversified Optionality Growth Portfolio Potential for exploration Management not occupied Non-operating business success on approximately with operational decisions is more scalable 66,200 km2 (1) Free Cash Limited High Margins Flow Bus
Slide 6: Financing Successful Mines
FINANCING SUCCESSFUL MINES 6 B U S I N E S S M O D E L DEBT EMERGING PROJECT M&A REDUCTION PROJECTS DEVELOPMENT Alignment with partners for a win-win solution
Slide 7: Why We Are Different
WHY WE ARE DIFFERENT 7 B U S I N E S S M O D E L Shareholder Financial Cyclical Asset Alignment Flexibility Investing Selection Committed to high share Avoiding long-term debt Board and management Strong technical skills ownership and treating and paying progressive and have a patient approach to an
Slide 8: Leading Track Record
F Franco Gx) Nevada LEADING TRACK RECORD
Slide 9: Leading Track Record
LEADING TRACK RECORD 9 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
Slide 10: Scalable High Margin Business Model
SCALABLE HIGH MARGIN BUSINESS MODEL 10 L E A D I N G T R A C K R E C O R D $400 $350 Quarterly Revenue and G&A (millions) $300 $250 $200 $150 $100 $50 $- Revenue G&A
Slide 11: Progressive & Sustainable Dividends
PROGRESSIVE & SUSTAINABLE DIVIDENDS 11 L E A D I N G T R A C K R E C O R D 17 CONSECUTIVE INCREASES $280 $2,100 Quarterly Dividend $260 $1,950 US$0.36/share1 $240 $1,800 Dividends Paid US $ (Millions) per annum $220 $1,650 Dividend paid since IPO2 Average Gold Price US $ $200 $1,500 >$2.2B $180 $1,3
Slide 12: Increasing Profitability
INCREASING PROFITABILITY 12 L E A D I N G T R A C K R E C O R D 83% 9 Mos. 2023 2022 YTD 2023 Adjusted 2021 EBITDA Margin1,2 2020 56% 2019 2018 YTD 2023 Adjusted 2017 Net Income Margin1,2 2016 - 200 400 600 800 1,000 1,200 1,400 US $ (Millions) G&A Cost of Sales Depletion Taxes/Other Adjusted Net In
Slide 13: Peer Comparison
PEER COMPARISON 13 L E A D I N G T R A C K R E C O R D $1,000 $900 $800 $700 $600 US$ (Millions) $500 $400 $300 $200 $100 $- FNV FNV (excl. WPM RGLD OR TFPM Cobre Panama)² Revenue¹ Cash Flow from Operations¹ 1. Per respective financial statements for the nine months ended September 30, 2023 2. FNV R
Slide 14: ESG Focused
y Franco) Nevada ~s ESG FOCUSED
Slide 15: Top Level ESG Ratings & Recognition
TOP LEVEL ESG RATINGS & RECOGNITION 15 E S G F O C U S E D The use by Franco-Nevada Corporation of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or p
Slide 16: ESG Leadership
ESG LEADERSHIP 16 E S G F O C U S E D Responsible Capital Allocation Community Contributions Committed to allocating capital to responsible operators that Committed to engaging with our operators to partner in provide safe workplaces for their workforce, limit the community and other initiatives whe
Slide 17: ESG Leadership: Good Governance & Diversity
ESG LEADERSHIP 17 E S G F O C U S E D Good Governance Fostering Diversity, & Shareholder Alignment Inclusion & Well-Being Committed to responsible governance practices to Committed to maintaining a safe and supportive environment ensure integrity in our dealings, compliance with our for our team and
Slide 18: ESG Leadership (cont.): Climate Action
ESG LEADERSHIP (cont.) 18 E S G F O C U S E D Climate Action Transparent ESG Disclosure We have a goal to achieve net-zero GHG emissions by 2050 Committed to providing transparency in all ESG matters from our corporate operations and we consider the relating to our business and to reporting annually
Slide 19: Diversified Portfolio
DIVERSIFIED PORTFOLIO
Slide 20: Our Portfolio: Assets
433 ASSETS Covering OUR Approximately PORTFOLIO 66,200 km2 433 TOTAL 115 Precious Metals Diversified PRODUCING 43 Precious Metals Diversified ADVANCED 275 EXPLORATION Not all assets shown on map, including exploration assets Asset count as of January 31, 2024 Cobre Panama currently on preservation a
Slide 21: Return on Investment
RETURN ON INVESTMENT 21 D I V E R S I F I E D P O R T F O L I O Candelaria Investment (2014) Return Antapaccay Investment (2016) Return Antamina Investment (2015) Return Va l e Investment (2021) Return $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 US$ (Millions) Acquisition cost After Tax Cash¹
Slide 22: Cobre Panama Update
COBRE PANAMA UPDATE 22 D I V E R S I F I E D P O R T F O L I O Portfolio Contribution: Current Status: 22% of revenue YTD 2023 (September 30) Law 406, the law that approved the revised contract for the Cobre Panama mine was found to be unconstitutional. $1.356B invested from 2015-2019 The mine is cu
Slide 23: Revenue Diversification
REVENUE DIVERSIFICATION 23 D I V E R S I F I E D P O R T F O L I O Other Mining Gas 5% Rest of 3% World Oil 12% Cobre Panama¹ 12% Canada & Other 22% NGL USA 28% 2% 31% Mexico & Central America Candelaria Silver PGM 28% 11% 10% 3% Gold 65% Energy Antapaccay 17% 9% South America 29% Vale Antamina Guad
Slide 24: Growth and Optionality
; Franco Gx) Nevada GROWTH AND OPTIONALITY
Slide 25: Growth Drivers
GROWTH DRIVERS 25 G R O W T H A N D O P T I O N A L I T Y Strong Organic Growth 5-year growth from expansions and new mines Long term exposure to copper Optionality of large royalty portfolio Capital for Acquisitions $2.3B of Available Capital No debt Attractive investment environment Cobre Panama U
Slide 26: Guidance
GUIDANCE 26 G R O W T H A N D O P T I O N A L I T Y 2023 Revised Guidance1 620,000-640,000 GEOs Total – Assumes lower oil and gas prices1 2023 Guidance1 Precious Metal 480,000-500,000 GEOs – Cobre Panama placed in preservation and safe maintenance2 – Salares Norte start-up delayed3 Funding Commitmen
Slide 27: Organic Growth Pipeline
ORGANIC GROWTH PIPELINE 27 G R O W T H A N D O P T I O N A L I T Y 2024 2025 2026 2027 E X PA N S I O N S 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Subika Ghana Tasiast Mauritania Operating Vale Brazil Under construction Kirkland Lake Ontario Permitting Island Gold Ontario Detour Lake Ontari
Slide 28: Long-Term Optionality
LONG-TERM OPTIONALITY 28 G R O W T H & O P T I O N A L I T Y M & I R O YA L T Y O U N C E S 1 LONG-TERM ASSETS Assets in 15.5 5-year Outlook2 Holt Moz Complex (Au) Other Cascabel (Cu, Au, Ag) Long-Term Pandora Assets 3.4 Expansion (PGM) Ring of Fire Moz (Cr, Ni) 15 Advanced and Crawford 225 Explorat
Slide 29: Royalty Optionality
ROYALT Y OPTIONALITY 29 G R O W T H A N D O P T I O N A L I T Y 2007 2008 - 2022 2022 120 100 >45 Moz gold >3.5x produced Mineral Reserves (Moz) 80 >$2.1B3 Proven & Probable revenue to FNV from portfolio 60 increase1 Gold 40 Reserves2 of same assets Gold as reported 20 Reserves2 Dec. 2022 at time of
Slide 30: Available Capital
AVAIL ABLE CAPITAL 30 G R O W T H & O P T I O N A L I T Y Available Cash and cash Credit capital3 equivalents1 Facility1, 2 ≈$1.3B ≈$1B $2.3B DEBT FREE 1. As at September 30, 2023 2. $1B Corporate Revolver N U E VA U N I Ó N ( R E L I N C H O ) 3. Funding commitments subsequent to September 30, 2023
Slide 31: Franco-Nevada.com
FRANCO-NEVADA.COM TSX/NYSE: FNV
Slide 32: Appendix - GEOs and Non-GAAP Measures
APPENDIX-GEOS AND NON-GAAP MEASURES 32 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 of
Slide 33: Board and Management
BOARD AND MANAGEMENT 33 BOARD MANAGEMENT David Paul Tom Paul Sandip Harquail Brink Albanese Brink Rana Chair of President Former CEO President CFO the Board & CEO Rio Tinto & CEO Maureen Eaun Derek Dr. Catharine Lloyd Jensen Gray Evans Farrow Hong Former CEO SVP, CEO Former CEO Ontario Securities CL
Slide 34: Producing Asset News
PRODUCING ASSET NEWS 34 STREAMS Cobre Panama Panama The mine is currently on preservation and safe maintenance. Candelaria Chile 2024 EIA approved September 2023. Potential expansion of UG operations. Antapaccay Peru Coroccohuayco project could extend mine life to 27+ years. Antamina Peru Medium ter
Slide 35: Producing Asset News (cont.)
PRODUCING ASSET NEWS (cont.) 35 R O YA LT I E S Objective to increase throughput to 28.0 Mtpa by 2025, targeting longer term production of 1 Moz per year. Ongoing Detour Lake Ontario exploration success with UG mining study expected in H1 2024. Stillwater Montana Restructuring underway to reduce cos
Slide 36: Advanced and Exploration News
ADVANCED AND EXPLORATION NEWS 36 C O N S T R U C T I O N U P D AT E S First gold poured in May 2023. Sunbird Deposit to be incorporated into updated Mineral Resource and Séguéla1 Côte d’Ivoire Mineral Reserve in Q4 2023. First gold poured in June 2023. Commercial production achieved in November 2023
Slide 37: Advanced and Exploration News (cont.)
ADVANCED AND EXPLORATION N E W S (cont.) 37 D E V E L O P M E N T U P D AT E S Eskay Creek British Columbia FNV acquired an additional 1% NSR in December 2023, for an aggregate NSR of 2.5%. Final EIS and Draft Record of Decision (ROD) expected in Q2 2024 with Final ROD in the fourth quarter of Stibn
Slide 38: CRA Audit (2012-2019)
CRA AUDIT (2012-2019) 38 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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