Core Viewpoint - Franco-Nevada Corporation has announced a quarterly dividend increase to US$0.38 per share, marking an 18th consecutive annual increase and a 5.56% rise from the previous dividend of US$0.36 per share [1] Dividend Declaration - The new dividend will be payable on March 27, 2025, to shareholders of record on March 13, 2025 [1] - The dividend is declared in U.S. dollars, with the Canadian dollar equivalent determined by the daily average rate posted by the Bank of Canada on the Record Date [3] Dividend Reinvestment Plan (DRIP) - The Company offers a Dividend Reinvestment Plan allowing shareholders to reinvest dividends to purchase additional common shares at the Average Market Price, with a potential 1% discount for treasury acquisitions [4] - Participation in the DRIP is optional, and enrollment forms are available on the Company's website [4] Corporate Summary - Franco-Nevada Corporation is a leading gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets [6] - The Company is debt-free and utilizes its free cash flow for portfolio expansion and dividend payments [6] - Franco-Nevada trades under the symbol FNV on both the Toronto and New York stock exchanges [6]

Transaction Overview - Franco-Nevada Corporation has entered into a comprehensive financing transaction with Discovery Silver Corporation to support the acquisition of the Porcupine Complex from Newmont Corporation [1] - The transaction includes a $300M net smelter return royalty, a $100M senior secured term loan, and approximately $49M of equity participation in a concurrent C$225M Discovery equity raise [1] - The financing package will enable Discovery to acquire the Porcupine Complex and fund its capital program to achieve full potential [1] Strategic Importance - The Porcupine Complex is a well-established gold-producing asset in Ontario with over 100 years of production history and extensive infrastructure [3] - The complex includes the Hoyle Pond and Borden underground mines, the new Pamour open pit mine expected to commence production in 2025, and the Dome open pit project [3] - The Royalty expands Franco-Nevada's coverage of Ontario's significant gold mines and deposits, adding immediate gold revenues [3] Production and Resource Potential - The Porcupine Complex is expected to produce approximately 285 koz Au annually over the next 10 years and a total of 4.9 Moz Au over a 22-year mine life [3] - The complex hosts extensive mineral resources of 3.9 Moz Au M&I (69.7 Mt at 1.76 g/t Au) and 12.5 Moz Au inferred (254.5 Mt at 1.53 g/t Au) [8] - Discovery has identified opportunities to increase production, including expanding the Pamour open pit, increasing underground throughput, and developing the Dome open pit project [3] Management and Exploration - Discovery is led by Tony Makuch, who has extensive experience in the Timmins camp and a proven track record of optimizing operations [3] - Discovery plans an extensive exploration program across the 140k hectare property, targeting high-grade mineralization and new resource discoveries [8] Financing Details - The $300M Royalty consists of two tranches: 2.25% of net smelter returns in perpetuity and 2.00% until certain conditions are met [8] - The $100M Senior Secured Loan has a 7-year maturity with amortization starting after year 5 and includes an upfront fee and standby fee [8] - Franco-Nevada will purchase approximately 9.9% of Discovery's common shares through a C$225M equity raise, with a two-year lock-up period [8] Corporate Positioning - Franco-Nevada remains debt-free and will finance the transactions from cash on hand, maintaining its ability to expand its portfolio [9] - The company is a leading gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets [10] Environmental and Social Initiatives - Franco-Nevada will partner with Discovery on environmental and social initiatives in the project area [16] - The transaction is expected to close in H1 2025, subject to customary conditions and regulatory approvals [16]

Group 1 - Franco-Nevada has appointed Daniel Malchuk to its board of directors, effective January 8, 2025 [1] - Mr. Malchuk has over 30 years of experience in the natural resource industry, including leadership roles at BHP Group Ltd. [1] - He currently serves as a director at SSR Mining Inc. and as a Senior Advisor with Appian Capital Advisory LLP [1] Group 2 - Franco-Nevada Corporation is a leading gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets [2] - The company's business model offers investors gold price and exploration optionality while minimizing exposure to cost inflation [2] - Franco-Nevada is debt-free and utilizes its free cash flow for portfolio expansion and dividend payments [2]

Group 1: Company Performance - CF Industries has an average trailing four-quarter earnings surprise of 10.3% and a Zacks Consensus Estimate for 2024 earnings at $6.32 per share, with shares gaining 20.6% in the last year [1] - New Gold has an average trailing four-quarter earnings surprise of 37.5% and a Zacks Consensus Estimate for 2024 earnings at 18 cents per share, with shares increasing by 64.2% in the last year [2] - Carpenter Technology has an average trailing four-quarter earnings surprise of 14.1% and a Zacks Consensus Estimate for fiscal 2025 earnings at $6.61 per share, with shares skyrocketing by 162.7% in the last year [9] Group 2: Franco-Nevada's Growth Strategy - Franco-Nevada continues to diversify its portfolio through acquisitions, including a 1.8% net smelter return royalty on Yanacocha operations in Peru, enhancing its portfolio with immediate gold equivalent ounces and long-term growth prospects [4][5] - The company acquired a gold stream from SolGold related to production at the Cascabel project in Ecuador, demonstrating its commitment to growth and ability to identify high-quality assets [5] - Franco-Nevada signed a $500-million precious metals stream agreement with Sibanye-Stillwater, expected to provide stable cash flow and exposure to the growing demand for platinum group metals over the next 20 years [12][13] Group 3: Financial Position - As of September 30, 2024, Franco-Nevada had $1.3 billion in cash and cash equivalents, along with $2.3 billion in available capital [3] - The company's shares have gained 6.1% in the past year, compared to the industry's growth of 13.1% [6] Group 4: Market Position - Franco-Nevada currently holds a Zacks Rank 3 (Hold), while CF Industries has a Zacks Rank 1 (Strong Buy), and Carpenter Technology and New Gold carry a Zacks Rank 2 (Buy) [8]

Core Insights - Franco-Nevada Corporation has entered into a $500 million precious metals stream agreement with Sibanye-Stillwater Limited, focusing on gold and platinum production from specific mining operations in South Africa [1][2][3] Transaction Overview - The Stream will provide immediate cash flow and is expected to generate a stable gold equivalent ounce (GEO) profile over the next 20 years, with approximately 70% gold and 30% platinum deliveries [3][4] - Sibanye-Stillwater's Western Limb operations contribute about 15% of global platinum supply and are expected to operate at the lower half of the PGM cost curve [2][3] - The Stream Area has a mine life projected to extend to 2070, with significant resources including 182 million ounces (Moz) of 4E PGM Measured and Indicated Resources [3][4] Production and Delivery Terms - Gold deliveries will be linked to the volume of 4E PGM ounces produced, ensuring alignment with Sibanye-Stillwater's production [4][5] - The gold stream parameters include a delivery schedule starting at 1.1% of 4E PGM ounces until 87.5 thousand ounces (koz) of gold, then 0.75% until 237 koz, and 80% for the remaining life of mine [5][7] - Platinum stream parameters include 1.0% of platinum until 48 koz is delivered, stepping up to 2.1% until 294 koz, after which no further deliveries will occur [6][7] Financial and Operational Considerations - Franco-Nevada plans to finance the Stream using cash on hand, with approximately $1.3 billion in cash and cash equivalents as of September 30, 2024 [12] - The effective start date of the Stream is September 1, 2024, with the first delivery expected approximately 45 days after closing [7][12] - Corporate guarantees will be provided by Sibanye-Stillwater and its operating companies, ensuring security for Franco-Nevada [7][12] Strategic Importance - This transaction is seen as a means to unlock further value from Sibanye-Stillwater's PGM operations, enhancing their balance sheet while retaining leverage to higher PGM prices [2][3] - The partnership is expected to support both medium and long-term growth for Franco-Nevada, complementing recent deals in other regions [2][3]

Core Insights - Franco-Nevada Corporation (FNV) experienced an 11% decline in share price following year-over-year decreases in both revenue and earnings for Q3 2024, attributed to lower contributions from key assets and the Cobre Panama mine being on preservation [1][2] Financial Performance - Adjusted earnings per share for FNV were reported at 80 cents, missing the Zacks Consensus Estimate of 83 cents, marking a 12% decrease year-over-year [2] - Revenues for the quarter totaled $276 million, reflecting a 10.9% decline compared to the previous year [2] - Adjusted EBITDA decreased by 7.4% year-over-year to $236 million, with an adjusted EBITDA margin of 85.7% [4] Production and Asset Contributions - The company sold 84,377 Gold Equivalent Ounces (GEOs) in the reported quarter, down from 90,370 GEOs in the prior-year quarter, primarily due to lower contributions from Candelaria and Antapaccay [3] - Higher contributions were noted from Subika, Tocantinzinho, Greenstone Mines, and the recently acquired Yanacocha royalty [3] Cash Position and Capital - At the end of Q3 2024, FNV had $1.32 billion in cash, down from $1.42 billion at the end of 2023, with an operating cash flow of $587 million for the first nine months of 2024, down from $708 million in the prior-year period [5] - The company remains debt-free and has $2.3 billion in available capital for portfolio expansion and dividends [5] Market Performance - Over the past year, FNV's shares have increased by 1.1%, significantly underperforming the industry average growth of 49.6% [6]

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Q 3 2 0 2 4 R E S U L T S P R E S E N T A T I O N N O V E M B E R 7 , 2 0 2 4 C A U T I O N A R Y S T A T E M E N T 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 include, but are not limited to, statements with respect to future events or future performance, management's expectations ...

Financial Data and Key Metrics Changes - The company reported a revenue of $275.7 million for Q3 2024, down from $309.5 million in the prior year, but up by $33.5 million or 14% year-over-year when excluding Cobre Panama from prior year revenue [17][19] - Adjusted EBITDA for Q3 2024 was $236.2 million, compared to $255.1 million in Q3 2023, while adjusted net income was $153.9 million, down from $175.1 million in the prior year [19] - The cash cost per GEO was $290 per GEO in Q3 2024, down from $304 per GEO in Q3 2023, indicating improved margins [24] Business Line Data and Key Metrics Changes - Total GEOs sold were 110,110 for Q3 2024, compared to 160,848 in the prior year, with a significant decrease attributed to lower deliveries from Candelaria and Antapaccay [11][19] - Precious metal GEOs sold were 84,377, down from 90,370 in the prior year, representing approximately 77% of total GEOs for the quarter [16] - Energy GEOs were lower at 19,137 due to weaker natural gas prices and the impact of converting energy revenue to GEOs by higher gold prices [17] Market Data and Key Metrics Changes - The average gold price increased by 28% year-over-year, contributing to a margin of approximately $2,200 per ounce in Q3 2024 [25] - The company expects total GEOs sold for 2024 to be between 445,000 to 465,000, down from the original guidance of 480,000 to 540,000 [27] Company Strategy and Development Direction - The company is focused on diversifying its portfolio, with a strong deal pipeline for adding precious metal assets and potentially entering the potash market [9][34] - The management expressed confidence in the long-term performance of the portfolio, despite short-term challenges in 2024 [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the inflation-protected business model is performing well, with record gold prices positively impacting revenues [5] - The company remains optimistic about the reopening of Cobre Panama, with discussions expected to take place in early 2025 [8][60] Other Important Information - The company is currently debt-free, with available capital of $2.3 billion as of September 30, 2024 [25] - The effective tax rate for the quarter was 21.6%, with expectations to average around 20% going forward [22] Q&A Session Summary Question: What could be a driver for you to either hit the higher end of the revised guidance range or come in on the lower end? - Management indicated that gold price performance and timing of deliveries from key assets like Candelaria will influence the outcome [30] Question: Can you clarify the company's interest in potash and potential opportunities? - The company is strategically interested in potash due to its long reserve life and is considering options for acquiring royalties [34] Question: What is the expected impact of the U.S. election on the company's operations? - Management anticipates positive impacts, particularly regarding permitting processes for mines in which the company holds royalties [66]

Financial Performance - Franco-Nevada reported revenue of $275.7 million for Q3 2024, a decrease of 10.9% compared to $309.5 million in Q3 2023[14]. - Operating income for Q3 2024 was $182.0 million, compared to $187.0 million in Q3 2023, reflecting a decrease of 0.5%[14]. - Net income for Q3 2024 was $152.7 million, down 12.8% from $175.1 million in Q3 2023[14]. - Adjusted EBITDA for Q3 2024 was $236.2 million, or $1.23 per share, reflecting a 7.4% decline[18]. - Year-to-date 2024 revenue was $792.6 million, a decrease of 13.4%, but a 9.7% increase when excluding Cobre Panama[19]. - Net income in YTD 2024 was $376.7 million, or $1.96 per share, down from $516.1 million, or $2.69 per share in YTD 2023, a decrease of 27.0%[99]. - Adjusted Net Income for YTD 2024 was $434.7 million, or $2.26 per share, compared to $510.2 million, or $2.66 per share in YTD 2023, a decrease of 15.0%[100]. Revenue Breakdown - Franco-Nevada's revenue from precious metals accounted for 75.5% of total revenue in YTD 2024[12]. - Revenue from Cobre Panama was $275.7 million in Q3 2024, compared to $67.3 million in Q3 2023, indicating a significant increase[59]. - Revenue from the South America region for Q3 2024 was $100.6 million, slightly down from $98.6 million in Q3 2023[59]. - The Guadalupe-Palmarejo asset in the United States generated $22.0 million in Q3 2024, an increase from $20.3 million in Q3 2023, marking an 8.4% growth[59]. - Revenue from U.S. Energy interests decreased to $29.3 million in Q3 2024, compared to $30.7 million in Q3 2023[73]. - Revenue from U.S. Energy interests decreased to $88.8 million in YTD 2024 from $102.2 million in YTD 2023, a decrease of 13.2%[94]. Production and Sales - Franco-Nevada sold 110,110 gold equivalent ounces (GEOs) in Q3 2024, down 31.5% from 160,848 GEOs in Q3 2023[14]. - The company expects its streams to contribute between 227,500 and 242,500 of its GEO sales for 2024, with YTD 2024 sales from streams at 172,526 GEOs[58]. - The Tocantinzinho mine is expected to average annual gold production of 174,700 ounces over a 10.5-year mine life, with Franco-Nevada owning a 12.5% gold stream on production[47]. - The Greenstone mine's production estimate was revised to between 110,000 and 130,000 gold ounces for 2024, down from 175,000 to 205,000 ounces[48]. - The Salares Norte mine's estimated 2024 gold equivalent production was revised to between 40,000 and 50,000 ounces, down from 220,000 to 240,000 ounces[49]. Costs and Expenses - Cash costs per GEO sold were $290 in Q3 2024, a slight decrease from $304 in Q3 2023[14]. - Costs of sales for Q3 2024 were $31.9 million, down from $48.9 million in Q3 2023, reflecting a decrease in GEOs sold[75]. - Depletion and depreciation expense totaled $54.2 million in Q3 2024, down from $68.1 million in Q3 2023[77]. - Cash costs per GEO sold for the three months ended September 30, 2024, were $290, compared to $304 for the same period in 2023, a decrease of 4.6%[151]. Assets and Equity - As of September 30, 2024, total assets were $6,299.6 million, an increase from $5,994.1 million as of December 31, 2023[15]. - Total shareholders' equity increased to $5,986.8 million as of September 30, 2024, compared to $5,769.1 million at the end of 2023[15]. - Cash and cash equivalents decreased to $1,317.3 million as of September 30, 2024, from $1,421.9 million as of December 31, 2023[119]. Dividends - In Q3 2024, the company declared a quarterly dividend of $0.36 per share, a 5.9% increase from $0.34 per share in Q3 2023, resulting in total dividends of $69.3 million for the quarter[38]. - For the nine months ended September 30, 2024, the company paid total dividends of $208.3 million, with $180.3 million paid in cash and $28.0 million settled in common shares under the Dividend Reinvestment Plan[38]. Taxation and Legal Matters - The company recognized an additional income tax expense of $30.6 million due to changes in Barbados tax legislation for the nine months ended September 30, 2024[41]. - Total income tax expense for Q3 2024 was $42.2 million, compared to $24.9 million in Q3 2023, with a total of $165.0 million for the nine months ended September 30, 2024, compared to $79.5 million in the same period of 2023[41]. - The company is pursuing legal remedies to protect its investment in Cobre Panama, including arbitration under the Canada-Panama Free Trade Agreement[129]. - The Company has filed formal Notices of Objection with the CRA against the reassessments and has posted security for 50% of the reassessed amounts[132]. Forward-Looking Statements - Forward-looking statements indicate management's expectations regarding future growth and performance, but actual results may differ due to various risks and uncertainties[164]. - Management believes that fluctuations in commodity prices and currency values could significantly affect revenue and performance[164].