Franco-Nevada Corporation (FNV) reported adjusted earnings per share (EPS) of 90 cents for the fourth quarter of 2023, up 5% from the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 80 cents.The company generated revenues of $303 million in the reported quarter, marking a year-over-year decline of 5.3%. The downside was due to lower gas, platinum group metals and oil prices, partly offset by higher gold prices. During the December quarter, 78.7% of revenues were sourced from Pr ...

Tax Reassessments and Liabilities - The Company received a Notice of Reassessment for the 2016 taxation year, resulting in additional Federal and provincial income taxes of $3.5 million (C$4.6 million) plus estimated interest and penalties of $1.4 million (C$1.8 million)[1] - The Company's Mexican subsidiary paid a total of $34.1 million (490.3 million Pesos) in cash taxes for taxation years 2013 through 2016 at a 30% tax rate[4] - The 2014 and 2015 Reassessments for the Barbadian subsidiary resulted in additional Federal and provincial income taxes of $5.1 million (C$6.7 million) plus estimated interest and penalties of $3.3 million (C$4.4 million)[5] - The 2016 and 2017 Reassessments for the Barbadian subsidiary resulted in additional Federal and provincial income taxes of $30.1 million (C$39.8 million) plus estimated interest and penalties of $11.2 million (C$14.8 million)[7] - The Company received a Proposal Letter from the CRA proposing to reassess the 2018 and 2019 taxation years, resulting in additional Federal and provincial income taxes of $17.2 million (C$22.7 million) for 2018 and $31.4 million (C$41.5 million) for 2019 plus estimated interest and penalties of $6.5 million (C$8.6 million) for 2018 and $8.5 million (C$11.3 million) for 2019[8] - The Company estimates that it would be subject to additional Canadian tax of approximately $242.8 million (C$321.1 million), transfer pricing penalties of approximately $91.8 million (C$121.4 million), and other penalties of approximately $33.4 million (C$44.2 million) for taxation years 2020 through 2023[9] - The company faces potential tax exposures of up to $242.8 million (C$321.1 million) for 2020-2023 related to transfer pricing reassessments in Barbados[30] - The company received $13.9 million (C$17.7 million) in returned security deposits from the CRA related to transfer pricing reassessments[28] - The Company reached a settlement with the CRA in respect of the Domestic and FAPI Reassessments, resulting in no FAPI in 2012 and 2013 as computed under Canadian tax law[20] - The Company filed formal Notices of Objection in connection with certain Transfer Pricing Reassessments and posted security in the form of cash totaling $18.5 million (C$24.5 million)[13] - Deferred tax liabilities are recognized for taxable temporary differences, calculated at enacted or substantively enacted tax rates[88] - The company evaluates exposure to uncertain tax positions and recognizes provisions based on the probable outcome of assessments[89] - The Company's deferred income tax assets are reassessed at each reporting period based on forecasts of future taxable income and reversals of temporary differences[119] - The Company applied a temporary exception to accounting for deferred taxes related to OECD Pillar Two model rules, effective immediately upon issuance of the amendment[101] Financial Performance and Position - Total assets decreased from $6,626.8 million in 2022 to $5,994.1 million in 2023, primarily due to a reduction in royalty, stream, and working interests from $4,927.5 million to $4,027.1 million[24] - Net loss for 2023 was $466.4 million, compared to a net income of $700.6 million in 2022, driven by impairment losses of $1,173.3 million[26] - Revenue declined from $1,315.7 million in 2022 to $1,219.0 million in 2023, while gross profit decreased from $852.6 million to $766.6 million[26] - Cash and cash equivalents increased by 18.8% from $1,196.5 million in 2022 to $1,421.9 million in 2023[24] - Operating cash flows remained strong at $991.2 million in 2023, slightly down from $999.5 million in 2022[33] - The company invested $520.0 million in acquiring royalty, stream, and working interests in 2023, significantly higher than the $139.6 million invested in 2022[33] - Dividends paid increased to $233.0 million in 2023, up from $197.6 million in 2022[33] - Net income for 2022 was $700.6 million, while the company reported a net loss of $466.4 million in 2023[34] - Total comprehensive income for 2022 was $571.9 million, compared to a total comprehensive loss of $424.3 million in 2023[34] - Dividends declared in 2022 amounted to $245.8 million, increasing to $262.1 million in 2023[34] - The company's total equity decreased from $6,417.6 million at the end of 2022 to $5,769.1 million at the end of 2023[34] - Franco-Nevada's cash and cash equivalents increased to $1,421.9 million in 2023 from $1,196.5 million in 2022, primarily held in interest-bearing deposits[172] - Franco-Nevada's equity investments increased to $246.4 million in 2023 from $224.6 million in 2022, with Labrador Iron Ore Royalty Corporation being the largest holding at $152.7 million[173] - Franco-Nevada's royalty, stream, and working interests carrying value increased to $4,027.1 million in 2023 from $4,927.5 million in 2022, with mining royalties and streams being the largest components[179][180] - Total net book value as of December 31, 2023, is $4,027.1 million, with $2,990.9 million depletable and $1,036.2 million non-depletable[181] - Additions to royalty, stream, and working interests in 2023 totaled $519.6 million, with significant contributions from streams ($250.2 million) and exploration ($110.2 million)[181] - Depletion charges for 2023 amounted to $270.7 million, primarily driven by streams ($169.4 million) and energy ($60.8 million)[181] - Foreign exchange impact in 2023 resulted in a net gain of $27.3 million, with $14.1 million attributed to royalties[181] - Franco-Nevada recognized a gain of $3.7 million from the disposal of a 0.5% NSR royalty interest in the Valentine Gold project[190] - Energy exploration assets written off in 2023 totaled $4.1 million due to abandoned tenements and concessions[189] Royalty, Stream, and Working Interests - The Company completed the acquisition of a royalty portfolio in the Haynesville gas play in Louisiana and Texas for a purchase price of $125.0 million[14] - The Company's royalty, stream, and working interests carrying value was $4,027.1 million as of December 31, 2023[16] - Royalty, stream, and working interests are recorded at cost and capitalized as tangible assets with finite lives[51] - Producing mineral royalty and stream interests are depleted using the units-of-production method over the life of the property[52] - Capitalized costs for energy well equipment are depreciated using a 25% declining balance method[57] - Impairment losses are recognized when an asset's carrying value exceeds its recoverable amount, calculated as the higher of fair value less costs of disposal (FVLCD) and value-in-use (VIU)[59] - The Company's royalty, stream, and working interests are subject to significant judgments and estimates, particularly regarding commodity prices, discount rates, and reserve/resource conversion[107] - Impairment losses of $1,173.3 million were recorded in 2023, primarily related to royalty, stream, and working interests[26] - The Company recognized an impairment loss of $1,169.2 million for the Cobre Panama stream interest due to halted production and political environment[108] - Cobre Panama production halted since November 2023 due to political and legal challenges, leading to a full impairment assessment[184][185][186] - Franco-Nevada has initiated international arbitration proceedings regarding Cobre Panama, with potential for impairment reversal if production resumes[187][188] - Acquired an incremental 1.0% NSR on Skeena's Eskay Creek properties for $41.8 million, increasing total NSR to 2.5%[122] - Advanced $18.7 million to Skeena Resources Ltd. for a convertible debenture with a 7% interest rate, maturing by December 19, 2028[124] - Agreed to acquire a royalty portfolio in the Haynesville gas play for $125.0 million, with $12.5 million advanced as a deposit[125] - Fully funded the $250.0 million Tocantinzinho Stream deposit, with stream deliveries based on gold production: 12.5% until 300,000 ounces, then 7.5%[127] - Acquired an additional 1.0% NSR on Argonaut's Magino gold mine for $28.0 million, increasing total NSR to 3.0%[133] - Acquired a 1.5% NSR on Red Pine Exploration's Wawa gold project for $5.0 million, with an option to acquire an additional 0.5% NSR[135] - Agreed to acquire a sliding-scale gold royalty and fixed-rate copper royalty on Barrick Gold's Pascua-Lama project for $75.0 million[136] - Acquired a 1.5% NSR on Tiernan's Volcan gold project for $15.0 million, with an option to acquire an additional 1.0% NSR[138] - Acquired an incremental 0.1120% NSR on Lundin Mining's Caserones mine for $9.4 million, increasing total NSR to 0.5702%[142] - Acquired an additional 1.5% NSR on Marathon's Valentine Gold project for $45.0 million, increasing total NSR to 3.0%[147] - Franco-Nevada acquired an additional 0.5% NSR on Skeena's Eskay Creek project for $21.0 million (C$28.5 million), with $19.9 million (C$27.0 million) paid on closing and $1.1 million (C$1.5 million) contingent upon certain conditions[159] - Franco-Nevada acquired a 2% NSR on Argonaut Gold's Magino gold project for $52.5 million, covering both the Magino project and regional exploration properties[161] - Franco-Nevada acquired a 2% NSR on Westhaven Gold's Spences Bridge Gold Belt claims for $6.0 million, with an option for Westhaven to buy-down 0.5% of the NSR for $3.0 million within 5 years[163] - Franco-Nevada acquired a portfolio of seven royalties in Chile, each with a 2% NSR on precious metals and 1% NSR on base metals, for $1.0 million[165] - Franco-Nevada acquired an additional 2% NSR on Equinox Gold's Castle Mountain project for $6.0 million, increasing its effective NSR on the Pacific Clay claims to 4.65%[166][168] - Franco-Nevada acquired an effective 0.4582% NSR on JX Nippon Mining & Metals' Caserones mine for $37.4 million, with royalty payments commencing from January 1, 2022[169] - Franco-Nevada advanced $18.7 million (C$25.0 million) to Skeena as a convertible debenture with a 7% interest rate, maturing on December 19, 2028, or upon project financing completion[176] Revenue Recognition and Financial Instruments - Revenue from stream arrangements is recognized when control over the commodity is transferred to the customer, typically at the delivery date based on spot prices[73] - Revenue from royalty arrangements is measured at the transaction price agreed with the operator, reflecting the gross value of the commodity sold less deductions[79] - Working interest revenue is measured at the transaction price set by reference to monthly market commodity prices, including adjustments for product quality and transportation[80] - Costs of sales for stream agreements include cash payments for gold, silver, or platinum group metals, based on the lesser of a contractual price or the prevailing market price[82] - The company's financial instruments include cash, receivables, accounts payable, accrued liabilities, debt, and investments, initially recognized at fair value[62] - Equity investments are classified as fair value through other comprehensive income (FVTOCI) and measured at fair value, with changes recognized directly in other comprehensive income[64] Share-Based Payments and Equity - The Company's deferred share units (DSUs) are settled in cash, with the fair value marked to the quoted market price of the Company's common shares at each reporting date[94] - The Company's performance-based restricted share units (RSUs) may vest at a performance multiplier ranging from 0% to 150% of the value[93] - The Company uses the Black-Scholes option pricing model to measure the fair value of equity-settled share-based payments[92] - The Company's earnings per share calculations include the effect of potentially dilutive common share equivalents, such as share options and restricted share units[96] Joint Operations and Subsidiaries - Franco-Nevada holds a 49.9% economic interest in The Mineral Resource Company II, LLC (TMRC II), a joint operation with Continental Resources, Inc.[45] - The company funds 80% of contributions to TMRC II, with Continental Resources funding the remaining 20%[45] - The Company's joint arrangement with Continental qualifies as a joint operation, with revenue distributions ranging between 50-75% based on asset performance[117] - Franco-Nevada operates in multiple regions including South America, Central America & Mexico, United States, Canada, Australia, Europe, and Africa[36] - The company's principal subsidiaries are located in Delaware, Barbados, Australia, Texas, and Chile, all with 100% economic interest[41] Internal Controls and Reporting - Internal control over financial reporting was deemed effective as of December 31, 2023, per management and independent audit[193][197] - The Company's segment reporting aligns with internal reporting provided to the CEO, who is responsible for resource allocation and performance assessment[95]

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Franco-Nevada Corp (NYSE:FNV) Q3 2023 Earnings Conference Call November 9, 2023 8:00 AM ET Company Participants Candida Hayden - IR Contact Paul Brink - President and Chief Executive Officer Sandip Rana - Chief Financial Officer Eaun Gray - Senior Vice President of Business Development Conference Call Participants Heiko Ihle - H.C. Wainwright Brian MacArthur - Raymond James Adrian Day - Adrian Day Asset Management Operator Good morning, and welcome to Franco-Nevada Corporation's Third Quarter 2023 Results C ...

Exhibit 99.2 Management's Discussion and Analysis This Management's Discussion and Analysis ("MD&A") of financial position and results of operations of Franco-Nevada Corporation ("Franco-Nevada", the "Company", "we" or "our") has been prepared based upon information available to Franco- Nevada as at November 8, 2023 and should be read in conjunction with Franco-Nevada's unaudited condensed consolidated interim financial statements and related notes as at and for the three and nine months ended September 30, ...

Franco-Nevada Corp (NYSE:FNV) Q2 2023 Earnings Conference Call August 9, 2023 10:00 AM ET Company Participants Candida Hayden - IR Contact Paul Brink - President, CEO & Director Sandip Rana - CFO Conference Call Participants Fahad Tariq - Credit Suisse Josh Wolfson - RBC Capital Markets Heiko Ihle - H.C. Wainright Cosmos Chiu - CIBC Martin Pradier - Veritas Investment Research Tanya Jakusconek - Scotiabank Brian MacArthur - Raymond James Operator Good morning, and welcome to Franco-Nevada Corporation's Seco ...

Exhibit 99.3 Years Since IPO 2023 Second Quarter Financial Statements For the three and six months ended June 30, 2023 Franco-Nevada Corporation Condensed Consolidated Statements of Financial Position (unaudited, in millions of U.S. dollars) | | | | | At | | --- | --- | --- | --- | --- | | | | At June 30, 2023 | | December 31, 2022 | | ASSETS | | | | | | Cash and cash equivalents (Note 4) | $ | 1,295.1 | $ | 1,196.5 | | Receivables | | 144.4 | | 135.7 | | Gold bullion, prepaid expenses and other current ass ...

Franco-Nevada Corp (NYSE:FNV) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET Company Participants Candida Hayden - IR Contact Paul Brink - President, CEO & Director Sandip Rana - CFO Eaun Gray - SVP, Business Development Jason O’Connell - SVP, Diversified Conference Call Participants Cosmos Chiu - CIBC Heiko Ihle - H.C. Wainwright & Co. Greg Barnes - TD Securities Martin Pradier - Veritas Tanya Jakusconek - Scotiabank Ralph Profiti - Eight Capital John Tumazos - John Tumazos Research Brian MacArth ...

Financial Performance - Revenue for Q1 2023 was $276.3 million, a decrease of 18.4% compared to $338.8 million in Q1 2022[16] - Adjusted EBITDA for Q1 2023 was $229.4 million, a decline of 19.9% from $286.6 million in Q1 2022[16] - Basic earnings per share for Q1 2023 were $0.82, compared to $0.95 in Q1 2022, reflecting a decrease of 13.7%[16] - Franco-Nevada's Q1 2023 revenue was $276.3 million, a decrease of 18.4% compared to the previous year[27] - Adjusted EBITDA for Q1 2023 was $229.4 million, down 20.0% from the same quarter in 2022, with an Adjusted EBITDA Margin of 83.0%[27] - Net income for Q1 2023 was $156.5 million, or $0.82 per share, down from $182.0 million, or $0.95 per share, in Q1 2022[60] - Adjusted Net Income for Q1 2023 was $152.2 million, or $0.79 per share, compared to $177.2 million, or $0.93 per share, in Q1 2022[60] - Revenue for Q1 2023 was $276.3 million, a decrease from $320.4 million in Q4 2022, reflecting a decline of approximately 13.8%[67] - Operating income in Q1 2023 was $172.1 million, down from $188.9 million in Q4 2022, representing a decrease of about 8.9%[67] - Net income for Q1 2023 was $156.5 million, compared to $165.0 million in Q4 2022, indicating a decline of approximately 3.0%[67] Sales and Production - GEOs sold in Q1 2023 totaled 145,331, down 18.6% from 178,614 in Q1 2022[16] - The company sold 145,331 Gold Equivalent Ounces (GEOs) in Q1 2023, a decrease of 33,283 GEOs compared to 178,614 GEOs in Q1 2022[49] - Precious Metals contributed 76.8% of total revenue in Q1 2023, an increase from 71.6% in Q1 2022[52] - The company expects total GEO sales for 2023 to be between 640,000 and 700,000, with Q1 2023 actual sales at 145,331 GEOs[37] - Cobre Panama contributed 28,663 GEOs in Q1 2023, slightly down from 29,495 GEOs in Q1 2022, due to operational curtailments[56] Cash and Investments - Cash and cash equivalents as of March 31, 2023, were $1,248.4 million, an increase from $1,196.5 million at the end of 2022[16] - The company has remaining funding commitments of $159.3 million related to the Tocantinzinho Stream, with $90.7 million funded in Q1 2023[24] - Franco-Nevada's cumulative investment in the Royalty Acquisition Venture with Continental Resources, Inc. reached $443.0 million, with remaining commitments of up to $77.0 million[26] - Net cash provided by operating activities was $209.8 million in Q1 2023, down from $230.6 million in Q1 2022, a decrease of about 9.0%[78] - Net cash used in investing activities was $102.6 million in Q1 2023, significantly higher than $1.6 million in Q1 2022, primarily due to funding of the Tocantinzinho Stream deposit[79] Costs and Expenses - Total costs of sales decreased to $38.2 million in Q1 2023 from $43.6 million in Q1 2022, reflecting a decrease in GEOs[58] - Depletion and depreciation expense was $61.0 million in Q1 2023, down from $74.6 million in Q1 2022, due to a decrease in GEOs[59] - General and administrative expenses increased to $6.2 million in Q1 2023 from $5.6 million in Q1 2022, representing 3.4% of revenue, up from 2.9%[62] - Franco-Nevada's total costs of sales for Q1 2023 were $99.2 million, down from $118.2 million in Q1 2022, resulting in Cash Costs of $38.2 million compared to $43.6 million in the prior year[145] - The number of GEOs sold in Q1 2023 was 145,331, with Cash Costs per GEO sold increasing to $263 from $244 in Q1 2022[145] Market Conditions - The average gold price in Q1 2023 was $1,889 per ounce, slightly up from $1,874 per ounce in Q1 2022[16] - Gold prices averaged $1,889/oz in Q1 2023, relatively consistent with $1,874/oz in Q1 2022, while silver prices decreased by 6.0% year-over-year[43] - The average price of silver decreased by 6.0% to $22.56 per ounce in Q1 2023 from $24.00 per ounce in Q1 2022[47] Tax and Regulatory Matters - The company reached a settlement with the Canada Revenue Agency regarding tax reassessments, vacating potential tax exposure of $19.6 million (C$26.5 million)[106] - The Company reached a settlement with the CRA regarding Canadian Domestic Tax Matters for 2014-2017, resulting in a tax adjustment of $14.6 million (C$19.9 million) and penalties of $5.0 million (C$6.6 million) being vacated[110][111] - The Company has filed formal Notices of Objection with the CRA against various reassessments and has commenced appeals in the Tax Court of Canada[114][120] - The ongoing CRA audit may lead to further challenges, potentially resulting in additional income taxes, penalties, and interest[127] Future Outlook - Franco-Nevada anticipates stronger deliveries in Q2 2023 as operations at Cobre Panama and Antapaccay have returned to full production levels[36] - Management is currently evaluating the implications of the Pillar Two proposals and will assess the impact once Canadian draft legislation is released[132] - The company believes current cash resources and available credit will cover commitments and expenses for the foreseeable future[85] - Management warns that actual results may differ materially from forward-looking statements due to various known and unknown risks[153] - Investors are cautioned against placing undue reliance on forward-looking statements due to inherent uncertainties[154]

Franco-Nevada Corporation (NYSE:FNV) Q4 2022 Earnings Conference Call March 16, 2023 10:00 AM ET Company Participants Candida Hayden - Investor Relations Paul Brink - President and Chief Executive Officer Sandip Rana - Chief Financial Officer Eaun Gray - Senior Vice President, Business Development Conference Call Participants Heiko Ihle - H.C. Wainwright Erin Kyle - CIBC Greg Barnes - TD Securities John Tamazos - Private Investor Lawson Winder - Bank of America Securities Tanya Jakusconek - Scotiabank Opera ...