Franco-nevada Corporation · TSX:FNV
Franco-nevada — IPO Roadshow (February 2016)
18 slides from Franco-nevada's IPO roadshow presentation, Feb 10, 2016
Slide 1: Cautionary Statement: Forward Looking Statements
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 2: Cautionary Note Regarding Mineral Reserve and Resource Estimates
Cautionary Statement CAUTIONARY NOTE REGARDING MINERAL RESERVE AND RESOURCE ESTIMATES This presentation been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral resource and rese
Slide 3: New Investment Opportunities
New Investment Opportunities By-product funding Palmarejo – Coeur Mining Cobre Panama – First Quantum Existing 3rd party royalties Cerro Moro – Yamana Gold Brucejack – Pretium Resources Hardrock – Premier Gold Mines Since 1985 3 Primary product funding Kirkland Lake – Kirkland Lake Gold Stibnite Gol
Slide 4: Attributes To Franco-Nevada
Attributes To Franco-Nevada 5 1 Immediate impact Accretive on all financial measures1 S Adds 60,000 – 80,000 GEOs per year2 Potential payback in 7 – 8 years3 Strengthens Portfolio Further diversification with a new cornerstone asset Low cost operation with track record Globally significant asset Add
Slide 5: Antapaccay – History
Antapaccay – History Wholly-owned and operated by Glencore Located near Cusco, Peru and 200 km from Las Bambas and 60 km from Constancia Glencore/Xstrata purchased Tintaya Mine and regional property (incl. Antapaccay) from BHP in 2006 Tintaya mine operated from 1984-2012 Produced more than 1.6 Mt of
Slide 6: Antapaccay – Ongoing Expansion
Two plants with 105,000 tpd planned throughput Antapaccay plant commissioned in 2012 at 70,000 tpd Process debottlenecking increased throughput to 80,000 tpd by 2015 Tintaya plant (restarted in mid 2015) processes additional 20,000 tpd of ore from Antapaccay mine Additional flotation capacity expect
Slide 7: Antapaccay – Infrastructure
Tailings Placed in historic Tintaya pit Permitted for Antapaccay LOM plan Expansion potential being evaluated Water Region has sufficient rainfall for water balance. Zero discharge site Power Low power costs in Peru Grid power supplied from existing infrastructure Concentrates Concentrate trucked 35
Slide 8: Antapaccay – Forecasted Production Profile
Antapaccay – Forecasted Production Profile Does not include any further conversion of Mineral Resource to Reserves Coroccohuayco project (approx. 1.0% Cu grade) may supplement lower grade feed in the later part of Antapaccay mine life Antapaccay produced 122 koz of gold and 1.315 moz of silver in 20
Slide 9: Mineral Reserves and Resources
Mineral Reserves and Resources See Appendix slide for additional details regarding Mineral Reserves and Mineral Resources 10 Antapaccay Mineral Reserve supports mining through 2029 and processing through 2030 Antapaccay Mineral Resource upside Coroccohuayco not incorporated in current mine plan As o
Slide 10: Coroccohuayco Project
Coroccohuayco is a brownfield expansion project, located within 10 km from the Antapaccay plant, containing an M&I resource of 256 million tonnes @ 1.0% Cu Development project aimed at leveraging existing infrastructure being studied The project is well positioned within Glencore’s brownfield strate
Slide 11: Potential With Regional Concession
Regional land package hosts multiple large scale, undrilled geological and geophysical targets – the stream agreement is with reference to the whole concession package IP geophysical surveys have been key to discovering targets under soil cover, including Antapaccay & Coroccohuayco - both were blind
Slide 12: Transaction Overview
Transaction Overview US$500 million gold and silver stream referenced to Glencore’s Antapaccay Mine Gold and silver deliveries initially determined by reference to copper shipments 300 oz of Au for 1,000 t of Cu in conc; 30% of Au in conc. after 630 koz of Au delivered 4,700 oz of Ag for 1,000 t of
Slide 13: Transaction Structure
Transaction Structure Stream acquired by Franco-Nevada (Barbados) Corporation Gold and silver deliveries will be made by Narila Investments Ltd, a wholly-owned Bermudan subsidiary of Glencore plc Glencore plc will be a party to the agreement The operating company and its immediate holding company wi
Slide 14: Another Cornerstone Investment
Another Cornerstone Investment 2nd transaction in last 6 months on two of the world’s largest copper mines Antapaccay Antamina (on Teck Resources 22.5% interest) Together represent 100,000-120,000 expected GEOs annually to Franco-Nevada2 15 Source: BMO Capital Markets Average for first five years 1
Slide 15: Contribution From Glencore Stream
Contribution From Glencore Stream 16 Stream agreement effective Jan 1st, 2016: First delivery expected in March, referenced off concentrate shipments in Jan. & Feb. of 2016 Thereafter, gold and silver deliveries will occur 20 days after the end of each subsequent month Expect 11 months of deliveries
Slide 16: Transaction Checks All Boxes
Transaction Checks All Boxes . Immediate Cash Flow Adds 60,000 – 80,000 GEOs per year1 Accretive GEOs, revenue, cash flow and EPS Low cost operation Low cost major Cu producer ` Optionality Resource, exploration and expansion upside 17 Shares issued to pay for transaction represent an ~ 6.5% increas
Slide 17: Appendix: Mineral Reserves & Resources
Appendix: Mineral Reserves & Resources 18 Notes: Antapaccay Statement of Resources & Reserves as at December 31, 2015, as to be included in the Glencore Statement of Resources & Reserves as at December 31, 2015. Mineral Resources and Mineral Reserves are estimated in accordance with the 2012 Austral
Slide 18: Appendix: Mineral Reserves & Resources
Appendix: Mineral Reserves & Resources {As of December 31, 2015 (Mineral Resources are inclusive of Mineral Reserv ANTAPACCAY Ore Grade Contained Metal ‘As of December 34, 2015, me Gu m7 *e cu i Ae « (/) __()__ (000%) (00002) (00002) Proven Reserves 194 080043 156 «adea~=~=CLA~=~=SC« TO Probable Res