Franco-nevada Corporation · TSX:FNV
Franco-nevada — Investor Presentation (April 2023)
35 slides from Franco-nevada's investor presentation, April 2023
Slide 1: Corporate Presentation April 2023
Corporate Presentation APRIL 2023 FNV: TSX | NYSE
Slide 2: Cautionary Statement
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: The Gold Investment That Works
THE GOLD INVESTMENT THAT WORKS 3 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
SHAREHOLDER RETURNS 4 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 Large holders include: Gold Bullion ETF BlackRock Barclays US Aggregate Bond Fidelity
Slide 5: Partnership Success: Industry-Leading Operators
PARTNERSHIP SUCCESS 5 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
ESG LEADERSHIP 6 Our ESG Focus Top ESG Rankings Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Fostering Diversity and Inclusion Transparent ESG Disclosure For additional details, please see appendix slides of this presentation and our most recent ESG
Slide 7: Business Model
Business Model
Slide 8: Business Model Advantages
BUSINESS MODEL ADVANTAGES 8 Optionality Potential for exploration success on approximately 66,500 km2 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 Margins
Slide 9: Financing Successful Mines
FINANCING SUCCESSFUL MINES 9 Partnership Approach Alignment with partners for M&A Financing Debt Reduction a win-win solution Support leading operators through long-term Project Financing Emerging Projects partnership Technical team with strong track record identifying successful projects
Slide 10: Why We Are Different
WHY WE ARE DIFFERENT 10 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
12 419 Assets Covering Approximately 66,500 km2 Our Portfolio 419 TOTAL 113 Precious Metals Diversified PRODUCING 45 Precious Metals Diversified ADVANCED 261 EXPLORATION Not all assets shown on map, including exploration assets Asset count as of March 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: 30+ years Mine life potential1: 35+ years Payback2: 73% Payback2: 39% Silver production has exceeded Expanding to 100 Mtpa in 20234 expec
Slide 14: Long-Life Assets
LONG-LIFE ASSETS 14 Franco-Nevada Growing reserves and reserve lives Sr. Gold Producers Long-duration portfolio increases optionality Int. Gold Producers Years0 2 4 6 8 10 12 14 16 18 2016 2021 Source: Bank of America/Merrill Lynch (May 2022) Seniors: Agnico Eagle, Barrick, Kinross and Newmont Inter
Slide 15: Revenue Diversification
REVENUE DIVERSIFICATION 15 Diversified with Low Risk (2022 Revenue) Rest of First Gas World Cobre Panama Quantum 12% 9% 17% 17% Other NGL 27% Oil 2% Mexico & Canada 12% Central & USA Lundin America Candelaria 41% Others 10% 23% 10% Iron Ore Commodity Gold Geography Assets 48% Operator Antapaccay Gle
Slide 16: Royalty Optionality
ROYALTY OPTIONALITY 16 2007 2008 - 2022 2022 120 100 >45 Moz gold Mineral Reserves (Moz) >$2.1B3 produced Proven & Probable 80 revenue to FNV 60 from portfolio >3x Gold increase1 40 Reserves2 of same assets Gold as reported 20 Reserves2 Dec. 2022 at time of IPO - IPO Reserves $1.2B paid for increase
Slide 17: Increasing Profitability
INCREASING PROFITABILITY 17 2022 84% 2021 Adjusted EBITDA Margin1 2020 2019 53% 2018 Adjusted Net Income Margin1 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 and Non-GAAP Measures 2.
Slide 18: Track Record
Franco) Nevada
Slide 19: Track Record
TRACK RECORD 19 GEOs1 Revenue Adjusted EBITDA3 (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 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Slide 20: Progressive & Sustainable Dividends
PROGRESSIVE & SUSTAINABLE DIVIDENDS 20 16 Consecutive Increases Quarterly Dividend US$0.34/share4 Increased to US$0.34 per $260 $240 $1,950 $1,800 Share as of Q1 2023 Dividends Paid US $ (Millions) per annum $220 $1,650 Dividend Payment $200 $180 $1,500 $1,350 Gold Price US $ $160 $1,200 >$1.98B pai
Slide 21: Outperforming Bull & Bear Markets
OUTPERFORMING BULL & BEAR MARKETS 21 40% 32% 19% 20% 14% 14% 8% 1% – (6%) (14%) (20%) (33%) (40%) Bull Market Bear Market Bull Market (2008 - 2012) (2013 - 2015) (2016 - Present) Franco-Nevada (US$) Gold GDX1 1. GDX is a Gold Equity index comprised mostly of gold operating companies 2. Source: TD Se
Slide 22: Growth Outlook
Growth Outlook
Slide 23: Guidance
GUIDANCE 23 2022 Actual 2023 Guidance1 2027 Outlook2 729,960 640,000-700,000 760,000-820,000 GEOs Total + Record GEOs in 2022 – Assumes lower oil and gas prices1 Assumes flat commodity prices1 + Diversified guidance exceeded + Vale royalty attributable production + Growth from Precious Metal assets
Slide 24: Cobre Panama Growth Outlook
COBRE PANAMA GROWTH OUTLOOK 24 GEO Growth Profile On track to achieve 100Mtpa by the end of 20231 FNV 2023 guidance of 115,000-135,000 GEOs 1. First Quantum Minerals Ltd. and the Government of Panama agreed to a draft concession contract in March which is subject to a public consultation process and
Slide 25: Organic Growth Pipeline
ORGANIC GROWTH PIPELINE 25 2023 2024 2025 2026 2027 Expansions1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cobre Panama2 Panama Subika Ghana Tasiast Mauritania Vale Brazil Detour Lake Ontario Kirkland Lake Ontario Island Gold Ontario Stillwater Montana New Mines Est. Start3 Q1 Q2 Q3
Slide 26: Producing Asset News
PRODUCING ASSET NEWS 26 Streams Draft concession contract agreed in March with the government which is still subject to parliamentary Cobre Panama Panama ratification. During the month, operations resumed to normal levels with all three trains operating. Candelaria Chile Updated Technical Report pro
Slide 27: Advanced and Exploration News
ADVANCED AND EXPLORATION NEWS 27 Construction Updates Salares Norte Chile Construction nearing completion. First production expected end of Q4 2023. Magino Ontario Construction 80% complete. First production expected H1 2023. Séguéla Côte d’Ivoire Construction 90% complete. First production expected
Slide 28: Long-Term Optionality
LONG-TERM OPTIONALITY 28 Long-Term Assets 2.9Moz of total 18.6Moz M&I Royalty Ounces1 are from Other Cascabel long-term assets (Cu, Au, Ag) Holt • Not included in 5-year outlook2 (Au) Ring of Fire (Cr, Ni) 2.9 Moz Exposure to large gold, Pandora copper and nickel deposits Expansion Taca Taca (PGM) (
Slide 29: Available Capital
AVAILABLE CAPITAL 29 NUEVAUNIÓN (RELINCHO) 1. As at December 31, 2022 2. $1B Corporate Revolver 3. Funding commitments subsequent to December 31, 2022 will be funded with cash flow from operations
Slide 30: Board and Management
BOARD AND MANAGEMENT 30 Board Management David Harquail Tom Albanese Derek Evans Dr. Catharine Farrow Louis Gignac Paul Brink Sandip Rana Lloyd Hong Chair of the Former CEO CEO Former CEO Chair President & CEO CFO CLO Board Rio Tinto MEG Energy TMAC Resources G Mining Ventures Board Director Maureen
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
APPENDIX – GEOS AND NON-GAAP MEASURES 32 1. Starting in Q4 2021, revenue from Franco-Nevada’s Energy assets is included in the calculation of GEOs. GEOs for comparative periods have been recalculated to conform with the current presentation. GEOs include Franco- Nevada’s attributable share of produc
Slide 33: ESG Leadership
ESG LEADERSHIP 33 Our ESG Focus Responsible Community Contributions Capital Allocation Responsible Capital Allocation Commitment to responsible mining and energy Contributing to our communities and engaging with our extraction through investments in operations with operators to partner in community
Slide 34: ESG Leadership
ESG LEADERSHIP 34 Good Governance & Fostering Diversity Transparent Shareholder Alignment and Inclusion ESG Disclosure Established board and management team aligned with Committed to furthering diversity and inclusion Our annual ESG Report is available on our website and is shareholders with substan
Slide 35: CRA Audit (2012-2017)
CRA AUDIT (2012-2017) 35 Taxation Years Potential Income Potential Interest Reassessed Tax Payable1 & Penalties1,4,5 Canadian Domestic Tax Matters 2014-2017 $14.6M (C$19.9M)2 $4.6M (C$6.2M) Transfer Pricing 2013-2016 $22.1M (C$29.9M)3 $20.1M (C$27.1M) (Mexican Subsidiary) Transfer Pricing 2014-2017