Franco-nevada Corporation · TSX:FNV
Franco-nevada — Investor Presentation (January 2025)
40 slides from Franco-nevada's investor presentation, January 2025
Slide 1: Corporate Presentation January 2025
2 0 2 5 C O R P O R A T E P R E S E N T A T I O N J A N 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: The Gold Investment That Works
THE GOLD INVESTMENT THAT WORKS 3 Proven Business Model 14% Compounded Return Since IPO1 Leading Track Record 17 Consecutive Dividend Increases ESG Focused #1 Ranked by Sustainalytics Diversified Portfolio 118 Cash Flowing Assets Growth and Optionality $2.3B Available Capital 1. Compounded annual tot
Slide 4: Business Model Advantages
BUSINESS MODEL ADVANTAGES 4 B U S I N E S S M O D E L UPSIDE POTENTIAL LOW RISK Optionality Diversified Portfolio Potential for exploration success on ~67,600 km2 (1) Non-operating business is more scalable Focus on Growth High Margins & Low Overhead Management not occupied with operational decision
Slide 5: Financing Successful Mines
FINANCING SUCCESSFUL MINES 5 B U S I N E S S M O D E L DEBT EMERGING PROJECT M&A REDUCTION PROJECTS DEVELOPMENT Alignment with partners for a win-win solution
Slide 6: Why Is Franco-Nevada Different?
WHY IS FRANCO-NEVADA DIFFERENT? 6 B U S I N E S S M O D E L Shareholder Alignment Committed to high share ownership and treating shareholder funds as our own (low G&A) Financial Flexibility Avoiding long-term debt and paying progressive and sustainable dividends ensuring capital availability at all
Slide 7: Shareholder Returns
SHAREHOLDER RETURNS 7 L E A D I N G T R A C K R E C O R D Franco-Nevada (FNV) - US$ basis NASDAQ S&P 500 Gold Bullion ETF Barclays US Aggregate Bond GDX (index of mostly gold miners) -4% 0% 4% 8% 12% 16% Lower-risk gold investment to hedge against market volatility 1. FNV Inception – December 20, 20
Slide 8: Leading Track Record
LEADING TRACK RECORD 8 L E A D I N G T R A C K R E C O R D GEOs1 Revenue Operating Cash Flow (000’s) (US$ Millions) (US$ Millions) 800 1,400 1,200 700 1,200 1,000 600 1,000 500 800 800 400 600 600 300 400 200 400 200 200 100 - - - '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '08 '
Slide 9: Scalable High Margin Business Model
SCALABLE HIGH MARGIN BUSINESS MODEL 9 L E A D I N G T R A C K R E C O R D G&A $28.9M G&A $15.3M 2008 2023 Revenue $150.6M Revenue $1,219.0M G&A 2.4% of Revenue and only 13 Basis Points of Market Cap.1 1. Market Capitalization as at December 31, 2023
Slide 10: Progressive & Sustainable Dividends
PROGRESSIVE & SUSTAINABLE DIVIDENDS 10 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 >$2.4B3 $180 $1,
Slide 11: Highly Profitable
HIGHLY PROFITABLE 11 L E A D I N G T R A C K R E C O R D 56% 2023 Adjusted Net Income Margin1,2 2023 $0 US $ (Millions) $200 $400 $600 $800 $1,000 $1,200 $1,400 83% 2023 Adjusted EBITDA Margin1,2 G&A Cost of Sales Depletion Taxes/Other Adjusted Net Income 1. Please see notes on appendix slides – GEO
Slide 12: Top Level ESG Ratings & Recognition
TOP LEVEL ESG RATINGS & RECOGNITION 12 E S G F O C U S E D Top Rated Gold and Precious Metals Company by Sustainalytics* * Sustainalytics rating in 2024 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 m
Slide 13: ESG Leadership
ESG LEADERSHIP 13 E S G F O C U S E D Responsible Capital Community Good Governance & Allocation Contributions Shareholder Alignment Allocating capital to responsible operators Engaging with our operators to partner Governing responsibly to ensure integrity in our that provide safe workplaces for th
Slide 14: ESG Leadership (cont.)
ESG LEADERSHIP (cont.) 14 E S G F O C U S E D Fostering Diversity, Inclusion & Well-Being Transparent ESG Disclosure Maintaining a safe and supportive environment for our team, removing Providing transparency in all ESG matters relating to our business and barriers and promoting diversity and inclus
Slide 15: Assets: Our Portfolio
432 ASSETS Covering OUR Approximately PORTFOLIO ~67,600 km2 432 TOTAL 118 Precious Metals Diversified PRODUCING 38 Precious Metals Diversified ADVANCED 276 EXPLORATION Not all assets shown on map, including exploration assets Asset count as of December 31, 2024 Cobre Panama currently on preservation
Slide 16: Sibanye-Stillwater Stream Highlights
SIBANYE-STILLWATER STREAM HIGHLIGHTS 16 Immediate Precious Metals Growth • Cash flows anticipated in Q1 from Sibanye-Stillwater’s Western Limb PGM complex with a 45+ year mine life. Expected stable GEO profile over the next 20 years with gold representing c.70% of revenues1 Proven Operator with Sign
Slide 17: Franco-Nevada Stream Area
FRANCO-NEVADA STREAM AREA 17 Stream covers S.A. PGM production from the Marikana, Rustenburg and Kroondal mining operations and the E3 Extension, E4, Saffy Deeps and Kroondal Deeps replacement projects3 Mineral Reserves Sibanye-Stillwater Western Limb PGM Complex Stream Area Resources (Moz 4E PGM) I
Slide 18: Sibanye-Stillwater Western Limb PGM Production
SIBANYE-STILLWATER WESTERN LIMB PGM PRODUCTION 18 Proven operator with 1.7 Moz 20-Year Production Profile1 4E PGM production LTM Sibanye-Stillwater’s Western Limb Production Bushveld metal/prill split differs (Metal in Concentrate) from other PGM producers with higher Pt, Rh, Ru & Ir concentration m
Slide 19: Stream Summary
STREAM SUMMARY 19 KEY STREAM TERMS Deposit: • US$500M funded at closing1 • Au oz equal to 1.1% of 4E PGM oz3 contained in concentrate until the delivery of 87.5 koz Au (expect c.5 Au Stream Parameters2 years), then (100% basis): • Au oz equal to 0.75% of 4E PGM oz3 contained in concentrate until tot
Slide 20: Cobre Panama Update
COBRE PANAMA UPDATE 20 • Law 406 found to be unconstitutional (November 2023)1 • Mine on preservation and safe management • Franco-Nevada international arbitration2 • $1,169.2 impairment recorded in 2023 • President José Raúl Mulino took office on July 1, 2024 • International panel to conduct enviro
Slide 21: Detour Lake Update
DETOUR L AKE UPDATE 21 P A T H W A Y T O 1 M O Z P E R A N N U M UG PEA extends mine life to 2054, 2024 LOM plan and UG PEA Proposed mill expansion to 29 Mtpa adding additional 4 Moz gold to Ongoing exploration released in June 2024 with 27% with average production of 1 Mozpa overall production prof
Slide 22: Tocantinzinho Update
TOC ANTI NZI NHO UP DATE 22 SUCCESSFUL FINANCING PARTNERSHIP • 2 Moz Au Mineral Reserves1 Tocantinzinho2 • Avg. Production 175 koz/yr Profile: • 10.5-year mine life Capital Cost2: • $458M Successful Construction: • Completed on time and on budget. Achieved commercial operation Sep 3, 2024 • $250M Go
Slide 23: Return on Investment
RETURN ON INVESTMENT 23 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 Weyburn Investment (2008) Return $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 US$ (Millions)
Slide 24: 2024 GEOs Diversification
2024 GEOs DIVERSIFICATION 1 24 D I V E R S I F I E D P O R T F O L I O Gas Rest of World Candelaria Oil NGL Central America & Canada Mexico & USA Other Antapaccay Other Mining PGM Antamina Gold Silver Guadalupe- Palmarejo Vale South America Energy COMMODITY GEOGRAPHY ASSETS 75% from 85% from America
Slide 25: Guidance
GUIDANCE 25 G R O W T H A N D O P T I O N A L I T Y 2024 Revised Guidance1, 4 2024 Original Guidance2, 4 GEOs GEOs Total Total 445,000-465,000 480,000-540,000 – Impact of commodity prices on conversion of Diversified1 – Assumes lower oil and gas prices1 340,000-360,000 360,000-400,000 – Cobre Panama
Slide 26: Growth Outlook
GROWTH OUTLOOK 26 G R O W T H A N D O P T I O N A L I T Y Cobre Panama Optionality 130koz to 150koz3 + Growth / Optionality $2.3B Available Capital 600 570 550 20-30% 500 450 455 GEOs Organic Growth GEOs 400 2028 Outlook 350 does not include 300 new Yanacocha and Cascabel 250 transactions 200 2024 R
Slide 27: 5-Year Growth Pipeline
5-YEAR GROWTH PIPELINE 27 P R O J E C T S I N C L U D E D I N 2 0 2 8 O U T L O O K Expansions1 Recent Mine Starts Subika to 2024 Séguéla 2023 Macassa (Kirkland Lake) to 2024 Magino 2023 Island Gold to 2026 Yandal (Bronzewing) 2023 Magino to 2026 Posse (Mara Rosa) 2024 Vale to 2026 Salares Norte 202
Slide 28: Long-Term Optionality
LONG-TERM OPTIONALITY 28 G R O W T H A N D O P T I O N A L I T Y LONG-TERM ASSETS Assets beyond Holt Volcan (Au) 5-year Outlook1 Pandora (Au) Expansion (PGM) Other Cascabel NSR³ Ring of Fire (Cu, Au, Ag) (Cr, Ni) 5.3 Million Long-Term NuevaUnión M&I Royalty Assets (Cu, Au) Ounces2 Taca Taca (Cu, Au)
Slide 29: Long-Term Assets
LONG-TERM ASSETS 29 G R O W T H A N D O P T I O N A L I T Y 1 PRECIOUS METALS Alpala 2P Mineral Reserves of 7.1 Blbs Cu and 9.4 Moz Au. Total Mineral Resources, Cascabel (14%/8.4% Gold Stream) Ecuador PFS including reserves, of 31.3 Moz Au M&I Mineral Resources and 5.4 Moz Au Inferred Mineral Resour
Slide 30: Royalty Optionality
ROYALT Y OPTIONALITY 30 G R O W T H A N D O P T I O N A L I T Y 1. Calculation includes depletion 2. Total gold Mineral Reserves associated with the top 37 assets at the time of IPO (not adjusted for FNV royalty ownership). All Mineral Reserves have been calculated in accordance with CIM or acceptab
Slide 31: Available Capital
AVAIL ABLE CAPITAL 31 Available Cash and cash Credit capital3 equivalents1 Facility1, 2 ≈$1.3B ≈$1B ≈$2.3B DEBT FREE 1. As at September 30, 2024 2. 3. $1B Corporate Revolver Other funding commitments will be funded with cash flow from operations N U E VA U N I Ó N ( R E L I N C H O )
Slide 32: franco-nevada.com
FRANCO-NEVADA.COM TSX/NYSE: FNV
Slide 33: Appendix - GEOs and Non-GAAP Measures
APPENDIX-GEOS AND NON-GAAP MEASURES 33 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 34: Board and Management
BOARD AND MANAGEMENT 34 A P P E N D I X B O A R D Tom Albanese Hugo Dryland Derek Evans David Harquail Paul Brink Former CEO Global Partner Former CEO Chair of the Board President & CEO Rio Tinto Rothschild & Co MEG Energy Dr. Catharine Maureen Jensen Daniel Malchuk Jacques Perron Farrow Former CEO
Slide 35: Producing Asset News
PRODUCING ASSET NEWS 35 STREAMS Cobre Panama Panama The mine is currently on preservation and safe management. President José Raúl Mulino took office on July 1, 2024. Third party mine audit planned. Candelaria Chile 2024 EIA approved September 2023. Potential expansion of UG operations. Antapaccay P
Slide 36: Producing Asset News (cont.)
PRODUCING ASSET NEWS (cont.) 36 ROYALTIES 2024 LOM plan and UG PEA released in June 2024 with 27% increase in LOM production up to 2054, adding Detour Lake Ontario additional 4Moz. Proposed mill expansion to 29 Mtpa with average production of 1 Mozpa from 2030 to 2043. Operational restructuring effo
Slide 37: Advanced and Exploration News
ADVANCED AND EXPLORATION NEWS 37 RAMP-UP UPDATES Posse Commercial production achieved in May 2024. Current Mineral Resources could extend LOM by 2 years to (Mara Rosa) 1 Brazil 12 years. Targeting additional 1 Moz by 2030, could add additional 5 years to LOM. First gold poured in March 2024. Commiss
Slide 38: Advanced and Exploration News (cont.)
ADVANCED AND EXPLORATION N E W S (cont.) 38 DEVELOPMENT UPDATES USFS issued Final Record of Decision authorizing project in January 2025. Perpetua begins evaluation of Stibnite Gold Idaho financing opportunities including the U.S. Import-Export Bank's LOI for project financing up to $1.8B. ADEQ issu
Slide 39: Mineral Reserves & Mineral Resources
MINERAL RESERVES & MINERAL RESOURCES 39 A P P E N D I X
Slide 40: CRA Audit (2013-2021)
CRA AUDIT (2013-2021) 40 A P P E N D I X With respect to the transfer pricing reassessments in relation to the Company’s Mexican and Barbadian subsidiaries, the Company continues to believe that these reassessments are not supported by Canadian tax law and jurisprudence and intends to vigorously def