Franco-nevada Corporation · TSX:FNV
Franco-nevada — Investor Presentation (June 2024)
32 slides from Franco-nevada's investor presentation, June 2024
Slide 1: Corporate Presentation June 2024
2 0 2 4 C O R P O R A T E P R E S E N T A T I O N J U N E
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 15% 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 $2.3B Available Capital 1. Compounded annual tot
Slide 4: Business Model Advantages
BUSINESS MODEL ADVANTAGES 4 B U S I N E S S M O D E L UPSIDE POTENTIAL LOW RISK Optionality Diversified Portfolio Potential for exploration success on ~67,400 km2 (1) Non-operating business is more scalable Focus on Growth High Margins & Low Overhead Management not occupied with operational decision
Slide 5: Financing Successful Mines
FINANCING SUCCESSFUL MINES 5 B U S I N E S S M O D E L DEBT EMERGING PROJECT M&A REDUCTION PROJECTS DEVELOPMENT Alignment with partners for a win-win solution
Slide 6: Why Is Franco-Nevada Different?
WHY IS FRANCO-NEVADA DIFFERENT? 6 B U S I N E S S M O D E L Shareholder Alignment Committed to high share ownership and treating shareholder funds as our own (low G&A) Financial Flexibility Avoiding long-term debt and paying progressive and sustainable dividends ensuring capital availability at all
Slide 7: Shareholder Returns
SHAREHOLDER RETURNS 7 L E A D I N G T R A C K R E C O R D Franco-Nevada (FNV) - US$ 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 1,000 800 500 800 400 600 600 300 400 200 400 200 200 100 - - - '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '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 >$2.2B3 $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, Climate Transparent Inclusion & Well-Being Action ESG Disclosure Maintaining a safe and supportive Aiming to achieve net-zero GHG emissions by Providing transparency in all ESG matters relating environment for our team, removing barr
Slide 15: Assets: Our Portfolio
431 ASSETS Covering OUR Approximately PORTFOLIO ~67,400 km2 431 TOTAL 117 Precious Metals Diversified PRODUCING 41 Precious Metals Diversified ADVANCED 273 EXPLORATION Not all assets shown on map, including exploration assets Asset count as of May 31, 2024 Cobre Panama currently on preservation and
Slide 16: Cobre Panama Update
COBRE PANAMA UPDATE 16 o Law 406 found to be unconstitutional (November 2023)1 o Mine on preservation and safe management o Franco-Nevada notice of intent to arbitrate2 o $1,169.2 impairment recorded in 2023 o José Raúl Mulino elected president on May 5, 2024 1. Law 406 approved the revised contract
Slide 17: Return on Investment
RETURN ON INVESTMENT 17 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 (2012) Return $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 US$ (Millions)
Slide 18: 2024 GEOs Diversification
2024 GEOs DIVERSIFICATION 1 18 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 19: Guidance
GUIDANCE 19 G R O W T H A N D O P T I O N A L I T Y GEOs 2024 Guidance1 2028 Outlook1 GEOs 480,000-540,000 540,000-600,000 Total Total – Assumes lower oil and gas prices1 + Vale Northern and Southeastern Systems + Copper World 360,000-400,000 385,000-425,000 Precious Metal Precious Metal – Cobre Pan
Slide 20: Growth Outlook
GROWTH OUTLOOK 20 G R O W T H A N D O P T I O N A L I T Y Cobre Panama Optionality3 + Growth / Optionality 600 $2.3B Available Capital 550 540k to 600k GEOs 500 480k to 540k 498k GEOs 450 GEOs 10-15% GEOs 400 350 Organic Growth 300 250 200 2023 2024 Guidance 2028 Outlook² Excluding Cobre Panama¹ 1.
Slide 21: Organic Growth Pipeline
ORGANIC GROWTH PIPELINE 21 G R O W T H A N D O P T I O N A L I T Y Expansions1 Recent Mine Starts Subika to 2024 Séguéla 2023 Macassa (Kirkland Lake) to 2024 Magino 2023 Island Gold to 2026 Yandal (Bronzewing) 2023 Vale to 2026 Posse (Mara Rosa) 2024 Detour Lake to 2027 Salares Norte 2024 Greenstone
Slide 22: Long-Term Optionality
LONG-TERM OPTIONALITY 22 G R O W T H A N D O P T I O N A L I T Y Assets beyond LONG-TERM ASSETS 5-year Outlook1 Holt (Au) Volcan Other (Au) Cascabel³ (Cu, Au, Ag) 4.1 Million Pandora Expansion M&I Royalty (PGM) Long-Term Ounces2 Ring of Fire Assets (Cr, Ni) 15 Advanced and NuevaUnión Crawford (Cu, A
Slide 23: Royalty Optionality
ROYALT Y OPTIONALITY 23 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 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 acceptable forei
Slide 24: Available Capital
AVAIL ABLE CAPITAL 24 Available Cash and cash Credit capital3 equivalents1 Facility1, 2 ≈$1.3B ≈$1B $2.3B DEBT FREE 1. As at March 31, 2014 2. 3. $1B Corporate Revolver Funding commitments subsequent to March 31, 2024 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 25: franco-nevada.com
FRANCO-NEVADA.COM TSX/NYSE: FNV
Slide 26: Appendix: GEOs and Non-GAAP Measures
APPENDIX-GEOS AND NON-GAAP MEASURES 26 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 27: Board and Management
BOARD AND MANAGEMENT 27 A P P E N D I X BOARD MANAGEMENT David Paul Tom Paul Sandip Harquail Brink Albanese Brink Rana Chair of President Former CEO President CFO the Board & CEO Rio Tinto & CEO Eaun Hugo Derek Dr. Catharine Lloyd Gray Dryland Evans Farrow Hong SVP, Global Partner CEO Former CEO CLO
Slide 28: Producing Asset News
PRODUCING ASSET NEWS 28 STREAMS The mine is currently on preservation and safe management. José Raúl Mulino Cobre Panama Panama elected President on May 5, 2024. Candelaria Chile 2024 EIA approved September 2023. Potential expansion of UG operations. Antapaccay Peru Coroccohuayco project could exten
Slide 29: Producing Asset News (cont.)
PRODUCING ASSET NEWS (cont.) 29 ROYALTIES Mill throughput to reach 28.0 Mtpa by the end of 2024, targeting 29.0 Mtpa by 2026 and longer-term production Detour Lake Ontario of 1 Moz per year. Ongoing exploration success with expansion and UG mining study expected in Q2 2024. Stillwater Montana Restru
Slide 30: Advanced and Exploration News
ADVANCED AND EXPLORATION NEWS 30 CONSTRUCTION AND RAMP-UP UPDATES First gold poured in May 2023. Sunbird Deposit incorporated into updated Mineral Resource and Mineral Séguéla1 Côte d’Ivoire Reserve. Fortuna Silver Mines exercised option to buy-back 0.6% of 1.2% NSR. Posse (Mara Rosa) 1 Brazil First
Slide 31: Advanced and Exploration News (cont.)
ADVANCED AND EXPLORATION N E W S (cont.) 31 DEVELOPMENT UPDATES Eskay Creek British Columbia Updated FS. FNV acquired an additional 1% NSR in December 2023, for an aggregate NSR of 2.5%. Final EIS and Draft Record of Decision (ROD) expected in Q2 2024 with Final ROD in Q4 2024. Perpetua Stibnite Gol
Slide 32: CRA Audit (2013-2019)
CRA AUDIT (2013-2019) 32 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