Core Viewpoint - Franco-Nevada Corporation (FNV) achieved a new 52-week high of $148.02 following year-over-year growth in both revenue and earnings in its fourth-quarter 2024 results, although it closed lower at $143.61 [1] Financial Performance - FNV reported adjusted earnings of 95 cents per share for the third quarter of 2024, surpassing the Zacks Consensus Estimate of 89 cents, reflecting a 6% year-over-year increase [1] - The company generated revenues of $321 million in the reported quarter, marking a 6% year-over-year increase, driven by record gold prices and strong production from Candelaria [2] - Adjusted EBITDA rose 8.6% year over year to $277 million, with an adjusted EBITDA margin of 86.4%, up from 83.9% in the prior-year quarter [3] Production and Sales - FNV sold 95,565 Gold Equivalent Ounces (GEOs) from Precious Metal assets in the reported quarter, a decrease of 20.1% from the prior-year quarter [3] - For 2024, FNV reported total GEOs of 463,334 and expects GEOs between 465,000 and 525,000 in 2025, indicating a 7% increase at the midpoint from 2024 [6] Cash Position and Guidance - At the end of 2024, FNV had $1.45 billion in cash, an increase from $1.42 billion at the end of 2023, with an operating cash flow of $829.5 million, down from $991 million in 2023 [4] - The company is debt-free and plans to use its free cash flow for portfolio expansion and dividend payouts, with available capital of $2.4 billion [4] - FNV's 2024 adjusted earnings per share were $3.21, down from $3.56 in the prior year, but beat the Zacks Consensus Estimate of $3.09 [5] - Revenues for 2024 decreased by 9% year over year to $1.11 billion, aligning with the Zacks Consensus Estimate [5] - FNV anticipates 2025 revenues to be 25% higher than the 2024 actual [6] Stock Performance - FNV's shares have increased by 27.7% over the past year, compared to the industry's growth of 38.8% [7]

Financial Data and Key Metrics Changes - The company reported a strong fourth quarter with total GEO sales of 463,334, near the top end of the revised guidance range of 445,000 to 465,000 GEOs for 2024 [19][20] - Total revenue for Q4 2024 was $321 million, a 5.8% increase from $303.3 million in Q4 2023 [24] - Adjusted EBITDA for Q4 2024 was $277.4 million, up 9% from $254.6 million in Q4 2023 [24][28] - Adjusted net income for Q4 2024 was $183.3 million, or $0.95 per share, representing a 6% increase year-over-year [28] Business Line Data and Key Metrics Changes - Precious metal GEOs sold in Q4 2024 were 95,565, a 5% increase compared to the prior year when excluding Cobre Panama [22] - The diversified assets contributed just over 108,000 GEOs sold for the year, with revenue from these assets in line with expectations [21] - Candelaria delivered 26,891 GEOs for Q4 2024, almost 70% higher than the prior year and twice as many as Q3 2024 [23] Market Data and Key Metrics Changes - Gold prices increased by 34.7% in Q4 2024 and 22.9% for the full year [18] - The average cash cost per GEO for the full year 2024 was $278, down from $286 in 2023 [30] - The company expects a 25% increase in 2025 revenue over 2024, based on budgeted gold prices [35] Company Strategy and Development Direction - The company aims to continue its business development activities, having completed over $1.3 billion in acquisitions and commitments during 2024 [9] - New contributions from recent acquisitions and organic growth are expected to drive growth in the medium-term production profile [12] - The company is optimistic about developments in Panama, with indications of a willingness to discuss corporate matters [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance of the gold mining industry despite market volatility [95] - The company anticipates a stronger second half of 2025, with better performance expected as the year progresses [36] - Management highlighted the importance of maintaining a strong balance sheet to support future acquisitions [41] Other Important Information - The company has a substantial cash balance and no debt, allowing for continued dividend increases [14] - Legal proceedings related to Cobre Panama are expected to incur annual costs of approximately $10 million [40] Q&A Session Summary Question: Comments on Cobre Panama and arbitration - Management confirmed that separate arbitration processes exist and can be put on hold for a fixed timeframe if needed [45] - The company believes the previous deal was favorable for Panama, and any changes in ownership would not affect the stream calculation [50] Question: Delivery timing for Sibanye-Stillwater South African PGM Stream - The first delivery related to 2024 production will occur in Q1, while the delivery for 2025 production will be in Q2 due to a 45-day delay [54] Question: Guidance for 2028 and 2029 - The drop in GEOs for 2029 is primarily due to the mine plan for Guadalupe and Palmarejo, with expectations of a 50% drop in production [105] Question: Energy division contribution to guidance - The energy division is expected to contribute around 16% to 17% of GEOs by 2029 [131] Question: Potential M&A opportunities - The company remains focused on precious metals for M&A opportunities, with a mix of potential deals in the $300 million to $500 million range [148]

2024 R E S U L T S P R E S E N T A T I O N 2 F O R W A R D - L O O K I N G S T A T E M E N T S 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 regarding Franco-Nevada's growth, results of opera ...

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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