Slide 1: Prosperity Gold Stream Transaction
Prosperity Gold Stream Transaction May 13, 2010 1
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements Certain information contained in this Press Release, including any information as to future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking s
Slide 3: Prosperity Gold Stream Overview
Prosperity Gold Stream Overview Gold stream on LOM gold production from Prosperity Long life project in Canada Focus asset for Taseko Mines Ltd. Proven operator in the region p Open pit copper/gold porphyry p Asset value is approx. 50% copper and 50% gold(1) (1) Revenue calculated at $1,100/oz Au an
Slide 4: Prosperity Gold Stream Terms
Prosperity Gold Stream Terms $350 million deposit funded pro-rata during construction with other financing for the project and 2 million FNV 2017 share warrants Right to purchase gold equal to 22% of LOM gold in concentrate for $400/oz (inflation adjusted) Funding contingent on: – permitting, – proj
Slide 5: Prosperity Gold Stream Asset Profile
Prosperity Gold Stream Asset Profile Parameter Metric P&P Recoverable Reserves(1) 3.6 Blb Cu 7.7 Moz Au MI&I Resources 5.3 Blb Cu 13.3 Moz Au Avg. Annual Gold Production First five years (2) 294 koz Au, 122Mlb Cu Life-of-mine 247 koz Au, 108Mlb Cu Cash costs net of byproducts(3) First five years (2)
Slide 6: Prosperity Gold Stream Development Status
Prosperity Gold Stream Development Status BC environmental assessment certificate issued January 2010 Federal environmental assessment process expected to be complete – Q3 2010* Following permitting, expect two and a half years of construction and commissioning 6 * Taseko May 12th, 2010 Press Releas
Slide 7: Production Profile
Prosperity Gold Stream Production Profile 350 200 180 300 160 250 140 200 120 Copper (Mlb) 100 150 80 Gold (Koz) 100 60 40 50 20 0 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 Au in Conc. Production Profile (Koz) FNV Gold Stream (Koz) Cu in Conc. Production Profile (Mlb) Long mine life Source: Ba
Slide 8: Asset Quality
Prosperity Gold Stream Asset Quality LOM 1st 5 Yrs $0.59/lb $0.28/lb Low total operating costs net of byproducts (1) First year of the five years is a half year (2) By-product cost calculated assuming $1.65/lb Cu and $650/oz Au, C$/US$ of $0.82 (3) Costs are shown before impact of gold stream. Strea
Slide 9: Contribution Analysis
Prosperity Gold Stream Contribution Analysis 100% 95% 11.1% 15.8% 14.1% 17.6% Relative Contribution (%) 90% 85% 80% Prosperity FNV 75% 88.9% 84.2% 85.9% 82.4% 70% 65% 60% EV 2014 Revenue 2014 CF NAV Prosperity contribution is highly accretive Note: Revenue and CF for estimates for FNV for 2014 are a
Slide 10: Potential Upside
Prosperity Gold Stream Potential Upside Gold resource of 13.3Moz* is approx. 20% larger than current reserve Change in mill configuration may increase throughput currently planned >70,000 tpd Exploration potential on the 85km2 concession * See Taseko Technical Report dated November 2, 2009 for Assum
Slide 11: Strengthening the Leading Gold Royalty Portfolio
Strengthening the Leading Gold Royalty Portfolio PRO-FORMA NAV BREAKDOWN A key long-life addition to the portfolio Source: Broker research at analyst consensus prices. Includes NAV of mining assets only, cash is not reflected. Prosperity NAV calculated using long term average consensus price for gol
Slide 12: Increasing Precious Metals Exposure
Increasing Precious Metals Exposure 2010E Revenue 2014E Revenue Base Metal 5% Oil & Oil & Gas Gas Base Metal 18% 10% 2% Precious Precious Metal Metal 80% 85% Pro-forma revenue 85% precious metals Estimates using current prices of $1,100/oz Au, $78/bbl oil, $4.00/mcf gas, $1,650/oz Pt & $500/oz Pd .
Slide 13: Geopolitical Stability
Geopolitical Stability 2010E Revenue 2014E Revenue Prosperity increases revenue from Canada Franco-Nevada estimates using current prices of $1,100/oz Au, $78/bbl oil, $4.00/mcf gas, $1,650/oz Pt & $500/oz Pd. 2014 revenue estimate includes Prosperity. 13
Slide 14: Substantial Long Term Gold Growth
Substantial Long Term Gold Growth Gold only royalty revenues excluding other revenues (1) Prosperity $44-48m Hemlo $5-15m Detour 12-13m Tasiast $10-11m Ahafo 6-11m Holt 3-4m Rosemont 1-2m Palmarejo $16-19m Marigold 1-4m Goldfields 1-2m $100.5m Holloway-Hislop 4-5m Duketon 2-3m Perama Hill 2-3m Holli
Slide 15: Increased Gold Price Leverage
Increased Gold Price Leverage Existing gold leverage: 1.3:1 – NPI's (Goldstrike NPI, Interlake NPI) – Scaled Royalties (Holloway, Holt) – Gold Streams (Palmarejo) Prosperity stream gold leverage: 1.6:1 Gold Price Revenue Prosperity Revenue @ 1,100/oz $45.4M Prosperity Revenue @ 1,210/oz $52.5M Perce
Slide 16: Current Capital Resources Untouched
Current Capital Resources Untouched Franco-Nevada expects to generate sufficient funds from operations to fund its commitment without using current capital resources Capital Resources @ March 31, 2010 US$ Millions Working Capital $598 Marketable Investments (Primarily NEM) $52 Available Credit Facil
Slide 17: Summary
Summary Accretive acquisition on all metrics Long life asset in Canada with proven operator and exploration upside FNV funds only as project is de-risked 22% of 13.3 million ounces* of gold * See Taseko Technical Report dated November 2, 2009 for Assumptions 17