Franco-nevada Corporation · TSX:FNV
Franco-nevada — Gold Forum Americas 2021
24 slides from Franco-nevada's conference presentation, September 2021
Slide 1: Gold Forum Americas
TSX: FNV | NYSE: FNV Gold Forum Americas September 2021
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 United States Private Securities Litigation Reform Act of 1995, respectively, which may include,
Slide 3: The Gold Investment That Works
The Gold Investment That Works Compounded Average Annual Total Returns Since FNV Inception1, 2, 3 1. FNV Inception – December 20, 2007 2. Compounded annual total returns to August 31, 2021 3. Source: TD Securities; Bloomberg TSX: FNV | NYSE: FNV 3
Slide 4: Track Record
Track Record 9 months 9 months 9 months 9 months 1. Please see notes on Appendix slides – Non-IFRS Measures TSX: FNV | NYSE: FNV 4
Slide 5: Increasing Profitability
Increasing Profitability TSX: FNV | NYSE: FNV 5
Slide 6: Progressive & Sustainable Dividends
Progressive & Sustainable Dividends TSX: FNV | NYSE: FNV 6
Slide 7: Business Model
BUSINESS MODEL Business Model Antapaccay
Slide 8: Low Risk Business Model
Low Risk Business Model Maximize Long-Term Optionality FNV does not operate, develop or explore for mines. Instead it has a broad Exploration Security of Focus on Upside Tenure New portfolio of royalties and Investments streams on many operations allowing it to: Minimize Cost Margin Involvement Expo
Slide 9: Our Approach
Our Approach Shareholders Operators Community Lower-risk gold investment to hedge Long-term alignment and financial High governance standards, diversity, against market instability flexibility responsible mining and contributing to social licence Business Portfolio Track Record Growth Model TSX: FNV
Slide 10: ESG Rankings and Commitments
ESG Rankings and Commitments Top ESG Rankings: Responsible Mining through Capital Allocation Community Contributions Transparent ESG Reporting Shareholder Alignment Miners at Antapaccay Diversity Targets and Initiatives TSX: FNV | NYSE: FNV 10
Slide 11: Asset Portfolio
ASSET PORTFOLIO Business Asset Portfolio Model Cobre Panama
Slide 12: Asset Map
Diversified Portfolio Asset Map 407 Assets Covering 63,000 km2 Mining Energy 325 82 TOTAL TOTAL 57 55 Producing Producing1 41 27 Advanced Exploration2 227 Exploration2 (As at Aug 31, 2021) 1. 9 producing Energy assets shown 2. Exploration assets not shown 47,300 km2 shown in the 2021 Asset Handbook
Slide 13: Royalty Optionality
USINESS MODEL Royalty Optionality 2007 2008 - 2020 2020 >39 Moz gold produced >$1.6B3 revenue to FNV from portfolio Gold ounces2 >3x of same assets increase1 as reported Gold ounces2 at Dec. 2020 time of IPO IPO Reserves increase $1.2B paid for portfolio at no cost 1. Calculation includes depletion
Slide 14: Core Precious Metal Streams
Core Precious Metal Streams Antamina Cobre Panama $610M investment $1.36B investment 2020 revenue: $57M 2020 revenue: $135M Mine life potential1: 30+ years Mine life potential1: 35+ years Silver production has exceeded Expanding to 100 Mtpa in 20234 expectations2 Candelaria $655M investment Antapacc
Slide 15: Recent Additions
Recent Additions Vale Iron Ore Royalty Condestable Precious Haynesville Natural Gas Debentures Metal Stream Royalties S11D Operation Condestable Haynesville $538M investment $165M investment $135M investment Long dated cash flow from a portfolio Precious metal revenue from a proven Increased natural
Slide 16: Long-Life Assets
Long-Life Assets Reserve Life Source: Bank of America North American Precious Metals Weekly (May 3, 2021) Seniors: Agnico Eagle, Barrick, Goldcorp (2015), Kinross, Newmont Intermediates: Alacer Gold, Centerra, Endeavour (2020), IAMGOLD, New Gold, SEMAFO (2015), Yamana TSX: FNV | NYSE: FNV 16
Slide 17: Diverse Portfolio
Diverse Portfolio Asset Diversification Q2 2021 No asset >20% 1 1. Includes an accrual estimate of $28.0 million for the Vale Royalty Debentures. Due to the timing of this acquisition, the accrual recorded in Q2/2021 represents two quarters’ worth of royalty payments. TSX: FNV | NYSE: FNV 17
Slide 18: Growth Outlook
GROWTH OUTLOOK Track Record Growth Outlook Business Model Antamina
Slide 19: Strong Growth Outlook
Strong Growth Outlook GEO Growth Profile (Energy Revenue Excluded) GEOs for the years 2019 and 2020 represent actuals. GEOs for the year 2021 represents midpoint of guidance issued in August. GEOs for the year 2025 represents mid-point of guidance issued in April. 2021 guidance assumes $1,800/oz Au,
Slide 20: Organic Growth Drivers
Organic Growth Drivers Asset Expansions Period New Mines Est. Start1 Cobre Panama (Panama) ramp-up 2021-2024 Aphrodite (Australia) 2023 Stillwater (Montana) expansion 2021-2024 Salares Norte (Chile) 2023 Detour Lake (Ontario) expansion 2021-2025 Séguéla (Côte d’Ivoire) 2023 Valentine Lake (Newfoundl
Slide 21: Long-Term Optionality
Long-Term Optionality 17.2 million total M&I Royalty Ounces 2.8 million M&I Royalty Ounces in longer-term assets (shown) Plus 250 development and exploration assets For calculation of M&I Royalty Ounces refer to Franco-Nevada 2021 Asset Handbook TSX: FNV | NYSE: FNV 21
Slide 22: Available Capital
Available Capital Working Capital1, 2 and Available Marketable Securities1, 3 Credit Facilities1, 4 Capital5 $344.9M $1.1B $1.4B 1. 2. As at June 30, 2021 The Company defines Working Capital as current assets less current liabilities DEBT FREE 3. Marketable securities excludes Labrador Iron Ore 4. F
Slide 23: Why We Are Different
Why We Are Different Shareholder Alignment . Share ownership . Low G&A Streams and Royalties Cyclical Investing . Stable long-life streams Board experience investing in cyclical markets . Gold royalty optionality Focus on gold and precious metals Additional exposure to other resource optionality Ass
Slide 24: The Gold Investment That Works
TSX: FNV | NYSE: FNV The Gold Investment That Works Leading track record Low risk business model Diversified portfolio Growth and optionality APPENDIX Thank you for . your interest in Franco-Nevada