Franco-nevada Corporation · TSX:FNV
Franco-nevada — Q3 2015 Earnings Presentation
19 slides from Franco-nevada's earnings presentation, Nov 12, 2015
Slide 1: Q3 2015 Results
FNV TSX/NYSE Q3 2015 Results November 12, 2015
Slide 2: Cautionary Statement
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 U.S. Private Securities Litigation Reform Act of 1995, respectively, which may include, but are
Slide 3: Key Developments
Key Developments Increase in GEOs helping to compensate for lower Q3 Results: commodity prices Stream acquired for $610 million and will start Antamina: contributing in Q4 Revised agreement finalized and $338 million of initial Cobre Panama: funding provided Performing strongly and new mine plan pro
Slide 4: Gold Price & GEOs Realized
Gold Price & GEOs Realized $1,300 $1,282/oz Average Gold Price: $1,250 Average Gold Price ($/oz) continued weakness; $1,200 $1,219/oz $1,200/oz $1,193/oz down 12.3% YoY $1,150 $1,100 $1,124/oz $1,050 $1,000 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 100 90 70.1 92.8 85.1 83.0 85.6 GEOs1 Realized: Gold
Slide 5: GEOs: Q3 2014 to Q3 2015
GEOs1: Q3 2014 to Q3 2015 19,081 2,226 134 4,255 1,620 85,637 70,071 1. Please see definition on slide 18 5
Slide 6: Revenue Performance
Revenue Performance $130 Overall Revenue: $120 $123.0 positive impact of increased Revenue (millions) $110 $100 $107.6 $109.2 $109.4 $103.7 GEOs; offset by lower $90 commodity prices $80 $70 $60 $50 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 $30 Oil & Gas Net Revenue: Oil&Gas Revenue (millions) $25 vol
Slide 7: Q3 2015 and YTD Financial Results
Q3 2015 and YTD Financial Results ($ millions except gold price, Q3 2015 Q3 2014 YTD 2015 YTD 2014 GEOs, per share and %) Gold Price ($/ounce) $1,124 $1,282 $1,179 $1,288 Gold Equivalent Ounces (GEOs)1 85,637 70,071 253,758 200,641 Revenue $103.7 $107.6 $322.3 $319.4 Adjusted EBITDA2 $78.0 $88.7 $24
Slide 8: Adjusted Net Income: Q3 2014 to Q3 2015
Adjusted Net Income1: Q3 2014 to Q3 2015 34.5 11.2 19.4 5.7 4.0 3.9 1.7 1. Please see definition on slide 18 8
Slide 9: A High Margin and Scalable Business
A High Margin and Scalable Business $925/oz 130 2,000 78.2% 81.4% 82.1% 81.3% 82.4% 75.2% Margin1 110 1,800 1,600 Revenue 90 1,400 70 Gold Price2 Gold Price2 ($/oz) 1,200 Millions $ 50 1,000 30 800 10 600 Fixed Costs3 ‐10 400 ‐30 200 Stream & Other Costs4 ‐50 ‐ Q3/10 Q3/11 Q3/12 Q3/13 Q3/14 Q3/15 1.
Slide 10: 2015 Q3 Revenue Sources
2015 Q3 Revenue Sources By Commodity By Geography 90% Precious Metals 79% from Americas 10
Slide 11: Antamina Transaction
Antamina Transaction $610 million stream on Teck’s 22.50% share of silver produced at Antamina One of the lowest cost major Cu producers Immediately accretive to GEOs, revenue, cash flow and EPS Exposure to long life asset with resource, exploration and expansion upside First contribution in Q4 Anta
Slide 12: Cobre Panama
Cobre Panama Finalized terms - replacement precious metals stream agreement signed Initial payment - initial payment of $337.9 million made on November 3 - no further payments expected in 2015 - $180 million expected in 2016 FQM Reports - project at 35% completion - commission and ramping up in 2018
Slide 13: Cobre Panama Site
Cobre Panama Site Plant Area Botija Pit Pre-Stripping Tailings Facility Decant Outlet Channel Concentrate Storage Building 13
Slide 14: Candelaria
Candelaria Reserve Update - Open pit Mineral Reserves increased ~24% from Dec 20131 (adjusting for mining depletion and refined economic parameters) - Final payment to Lundin of $7.5 million related to increase - Further Reserve and Resource update expected in Q3/20151 Approval of EIA: - Environment
Slide 15: Other Positive Portfolio News in 2015
Other Positive Portfolio News in 2015 Timmins West • Lakeshore Gold’s new 144 GAP zone discovery Duketon • Regis’ new discoveries at Baneygo & Tooheys Well Adding new Macassa • Kirkland Lake’s production growth & exploration success ounces Fire Creek/Midas • Klondex’s exploration success & 2015 prod
Slide 16: Available Capital
Available Capital 1,000 338 830 82 698 610 1. As at September 30, 2015 2. See definition on Slide 18 16
Slide 17: Q&A
Q&A 17
Slide 18: Notes
Notes 1. Adjusted EBITDA and Adjusted EBITDA per share are non-IFRS financial measures, which excludes the following from net income and net income per share: income tax expense/recovery; finance expenses and finance income; foreign exchange gains/losses and other income/expenses; gains/losses on th
Slide 19: Appendix – Non IFRS Measures
Appendix – Non IFRS Measures Three months ended Nine months ended September 30, September 30, (expressed in millions, except per share amounts) 2015 2014 2015 2014 Net Income (Loss) $ 15.2 $ 33.2 $ 56.0 $ 105.5 Income tax expense 8.5 13.0 28.8 40.1 Finance costs 0.6 0.4 1.5 1.2 Finance income (1.3)