Franco-Nevada Reports Q1 2023 Results

Core assets returned to normal operations

(in U.S. dollars unless otherwise noted)

Our diversified portfolio continues to generate strong cash flows and high margins. The first quarter was impacted by production disruptions at Cobre Panama and Antapaccay as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2 with both assets having returned to normal operations. “Cobre Panama’s CP 100 Expansion is on-track for year-end and we look forward to initial contributions from Magino, Séguéla and Salares Norte during the year”, commented Paul Brink CEO. Franco- Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities.

After many years of valuable service, Louis Gignac and Elliott Pew retired from the Franco-Nevada Board at the Company’s annual meeting earlier today. Mr. Gignac served as one of the original directors of Franco-Nevada since its IPO in 2007 and has provided invaluable expertise and guidance to the Board and management. Mr. Pew joined the Franco-Nevada Board in 2019 and was a key director as the Company grew its Energy portfolio. “On behalf of the Board, I would like to thank Louis and Elliott for the enormous contribution they have made to the success of Franco-Nevada”, stated David Harquail , Chair.

Strong Financial Position

• No debt and $2.2 billion in available capital as at March 31, 2023
• Generated $209.8 million in operating cash flow during the quarter
• 16 consecutive dividend increases. Quarterly dividend of $0.34 /share

Sector-Leading ESG

• Ranked Global 50 Top Rated and #1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG
• Committed to the World Gold Council’s “Responsible Gold Mining Principles”
• Partnering with our operators on community and ESG initiatives
• Goals of at least 30% women Board members, one diverse Board member on grounds broader than gender diversity by 2025, and 40% diverse representation at the Board and top leadership levels as a group by 2025

Diverse, Long-Life Portfolio

• Most diverse royalty and streaming portfolio by asset, operator and country
• Core precious metal streams on world-class copper assets outperforming acquisition expectations
• Long-life reserves and resources

Growth and Optionality

• Mine expansions and new mines driving 5-year growth profile
• Long-term optionality in gold, copper and nickel and exposed to some of the world’s great mineral endowments
• Strong pipeline of precious metal opportunities

In Q1 2023, we earned $276.3 million in revenue, down 18.4% from Q1 2022, due to a decrease in GEOs earned from our Precious Metal assets and lower realized oil and gas and iron ore prices. Deliveries from our Precious Metal assets in Q1 2023 were affected by curtailed operations at Cobre Panama and Antapaccay. With both mines now operating at full production levels, we expect stronger deliveries for Q2 2023.  Precious Metal revenue accounted for 76.8% of our revenue (62.3% gold, 10.4% silver, 4.1% PGM). Revenue was sourced 88.5% from the Americas (28.7% South America , 25.7% Central America & Mexico , 18.2% U.S. and 15.9% Canada ).

Environmental, Social and Governance (ESG) Updates

During the quarter, we published our 2023 ESG Report that, among other things, highlights our key focuses for ESG due diligence, increased community contributions, new Board diversity goals and initiatives, and enhanced disclosure, including first-time reporting aligned with the GRI standards and disclosure of Scope 3 financed emissions attributable to our royalty and stream investments. We also adopted a new Climate Action Policy, which sets out our climate-related commitments and measures, including net-zero related commitments. We continue to rank highly with leading ESG rating agencies. We also received…