Franco-Nevada Corporation Price & Performance (FNV)

Our full executive team is available to answer any questions. Participants may submit questions by the telephone or via the webcast. We would like to remind participants that some of today's commentary may contain forward looking information, and we refer you to our detailed cautionary note on Slide two of this presentation. I will now turn over the call to Paul Brink, President and CEO of Franco Nevada.

Thanks, Candida, and good morning. First of all, welcome to Daniel Melchuk, who joined our Board in January. Daniel is an experienced director and spent much of his executive career at BHP. Including roles heading operations in The Americas, running the copper, aluminum and nickel and manganese businesses and heading the exploration division. Daniel's Chilean based out of Santiago and I'm sure will add valuable perspectives on many of the assets and the countries in which we invest. We ended the year well with a strong fourth quarter. Geo sales for the year were near the top end of our revised Geo guidance range. With a tailwind from rising gold prices, with higher quarterly revenue adjusted EBITDA and adjusted net income compared to Q4 twenty twenty three. Even without a contribution from corporate ban. 2024 was the most active year in our history for business development. [indiscernible] Ian and the team entered into more than $1,300,000,000 in acquisitions and commitments during the year. Transactions included Goldstream investment in Casabel and Ecuador, [indiscernible] royalty on the Encoach gold mine in Peru, and a principally gold stream on Savania's Western Limp PGM operations in South Africa. All of them high quality ore bodies with potential to be very long life mines.

One of our largest portfolio successes in 2024 was the completion of construction and commercial operation of [indiscernible] we have a 12.5% gold stream.

No surprise, the mine built by the G Mining team was on time and on budget Rather than just providing extreme financing, Franco-Nevada the financial backer of Dream Inn Ventures. Having provided stream debt and equity components. EZ is only the first to many mines that Dream Inn will build and frankly, high strong financial banking for the full year. In January, we announced a second partnership based on the same principles. A financing package to support Discovery Silver's acquisition of Newmont's Pork Pine Complex In Timmins. Including a royalty credit facility and backing for their equity raise. [indiscernible] To revitalize the pork refined assets and realize the tremendous potential still remains in the camp. This is possibly only the first move to consolidate consolidate operations in the camp. And with financial backing from Franco Discovery is well positioned for those next steps. The acquisitions over the last twelve months of the potential to add 85,000 to 95,000 GEOs per annum. To our medium term production profile. Almost all gold ounces. With these new additions, along with organic growth from our existing portfolio, These drive the growth outlined in our 2025 guidance and outlook for the next five years. For 2025, the new contributions from Sabineer's Western Lumber operations and Porcupine and full year contributions from Yanacocha Dizette, Greenstone and Salaras Norte will have a big impact.

Some of the highlights for the longer term outlook are higher silver contributions from Antamina and new gold ounces from the start up of Ballantyne Gold Cascade Creek and Step Thine Gold. With Sandeep's management of our balance sheet, all the acquisitions were or will be from our cash balances and we'll still have no debt and a substantial cash balance. Our growing operating cash flows will still add us to increase dividends for the eighteenth consecutive time. In January. Cumulative dividends since IPO are now greater than 2,500,000,000.0 Our business development team could do the breakout of all the activity in the last twelve months. But I don't think that's going to happen.

We have actual opportunities that could add more attractive assets this year. Finally, I'm very encouraged by the developments in Panama. President Molino has indicated a willingness to discuss Cobre Panama this year and sentiment in Panama now appears more supportive of restarting in line. I think there are good odds we'll see positive progress this year. With that, I'll hand the call over to Seth. Thank you, Paul. Good morning, everyone. As Paul mentioned, Franco Nevada ended the year with a strong fourth quarter which was the result of both strong production from our asset base and higher precious metal price. Precious metal prices with gold in particular reached record highs in 2024. On Slide four, you will see the comparison of commodity prices for both fourth quarter and full year 2024. Gold and silver prices increased significantly for both periods with gold higher by 34.7% in the quarter and 22.9% for the year. Prices for palladium, iron ore and oil continued to be volatile and were lower year over year. Slide five provides a recap of the company's performance against the revised guidance provided for last year. The updated guidance for 2024 provided for a range of 445,000 We to 465,000 total deals sold.

Of this total, the company guided 340,000 to 360,000 pressure metal with the balance being from diversified assets. With the strong finish to the end of the year, the company ended the year with four sixty three thousand three hundred and thirty four GEOs sold. Which was near the top end of the guidance range.

We were also at the top end of the guidance range for precious metals with $355,000,000 to $280,000,000 sold. The diversified assets, which include our non precious metal mining assets, and energy assets resulted in just over 108,000 GEOs sold per year. I'd like to point out that the revenue generated from our diversified assets was actually in line with our expectations for the year.

However, with a 37% higher average gold price in 2024, than our $19.5 budgeted gold price, when converting to GEOs sold that actually resulted in the loss of 21,000 GEOs than if the gold price had remained at our budget prices. Turning to Slide six, you'll see the 2020 and twenty twenty four fourth quarter comparisons. For GEO sold revenue and adjusted EBITDA. Total GEO sold were $120,063 in fourth quarter, compared to 152,351 in fourth quarter twenty twenty three. Cratchas Metallurgy sold in fourth quarter twenty twenty four were $95,565 higher by 5%. Compared to prior year when excluding Toripam. For the fourth quarter, we received strong contributions from Candelaria, benefited from the continued ramp up of new mines, Kokansania and Greenstone. Candelaria delivered 26,891 Geos for the quarter, which was almost 70% higher than prior year and twice as many GEOs as Q3 twenty twenty four. Diversified GEOs sold were $24,298 for the quarter, compared to $32,770 for prior year, despite diversified revenue being flat year over year. The approximate 8,000 Geosol difference is due to the impact of GEO conversion using higher book prices. Total revenue for the quarter was $321,000,000 compared to $303,300,000 last year, a 5.8% increase.

Precious metals accounted for 79% of revenue. Adjusted EBITDA was 9% higher for the quarter 277,400,000.0 compared to $254,600,000 in fourth quarter twenty twenty three. If you turn to Slide seven, you'll see a new measure that we have presented in our year end financial results. It is called Net Geos. As we look at our royalty and streaming business, we think it's important to evaluate contributions from assets based on margin contribution and not necessarily top line measures. Royalty GEOs are higher margin GEOs as there is minimal cost associated with each GEO sold, versus a stream for an ongoing fixed payment is required. The measure of net GEOs removes the cost of sales component for all GEOs so that all GEOs sold are represented after cost. For Q4 twenty twenty four, [indiscernible] compared to 129,527 in Q4 twenty twenty three.

Slide eight highlights the key financial metrics used by the company. As mentioned, total GEO sold were 120,063 generating $321,000,000 in revenue in fourth quarter. With respect to costs, we did have a decrease in cost of sales compared to Q4 twenty twenty three, due to less three ounces sold, which is predominantly related to the absence of Cobre Panama. Depletion decreased to $60,000,000 versus $68,900,000 a year ago, Depletion is based on actual mining GEO sold and barrels of oil equivalent received on the energy side of the business.

As we receive less GEOs from Cobre Panama and Anticipacay, this impacts the depletion as both assets are higher per ounce depletion assets. Adjusted net income was $183,300,000 or $0.95 per share for the quarter, up 65% respectively. Slide nine highlights the continued diversification of the portfolio. 76.5% of our full year 2024 revenue was generated by precious metals. With revenue being sourced 83.9% from The Americas. Our largest contributor to revenue was Candelaria, at 14.6% for the full year. Slide 10 illustrates the For full year 2024, cash cost per GEO, which is essentially cost of sales divided by gold equivalent ounces sold, is $278 per GEO. This compares to $286 per GEO in 2023. For the quarter, the cash cost per ounce $287 compared to $296 in fourth quarter twenty twenty three. As the gold price has risen, Franco Nevada has seen a significant increase in our margin per GEO. Margin was $2,375 per GEO, in Q4 twenty twenty four. We've always stated that in a rising commodity price environment, we expect to benefit fully as the cost per GEO sold should not increase significantly. With respect to the company's geosol guidance for 2025, please refer to Slide 11.

For 2025, we are guiding total geosold of between $465,000 to $525,000 which is a 7% increase If we use constant pricing between 2025 and 2024, the increase would be 13% year over year. On this range, we are guiding $385,000 to 425,000 precious metal geos for the year. This is a 14% increase in precious metal GEOs over 2020. The overall main drivers for GEOs year over year are for precious metals will benefit from contributions from recent acquisitions [indiscernible] Porcupine Complex Royalty, and Yanacocha royalty. We will continue to benefit from the ramp up of new mines that began production in twenty twenty four. Kokontinio, Greenstone and Salarus Norte. And we will begin to receive initial ounces from the currently under construction Ballantyne Gold mine [indiscernible] the second half of twenty twenty five. Please note, we will no longer be receiving gold ounces from mine waste [indiscernible] As the cap was reached in October 2024. Our guidance has been calculated using $2,800 per ounce for gold, dollars 31 for silver, dollars $9.50 platinum dollars $9.50 for palladium and $100 iron ore. Obviously prices are volatile and as they change it will impact the conversion of non gold commodities to GEOs.

On the energy side, we're using a price of $70 per barrel WTI $3 Ncf natural gas. Using our budgeted gold price, $2,800 per ounce and the midpoint of our total GEOs guidance range, we expect a 25% increase in 2025 revenue over 2024. Also, with respect to timing, we do expect to see better performance as the year progresses, So a stronger second half is expected. As we look forward over the next few years, we do forecast 2028 as the current high for GEO sold based upon the information we have to date. For 2029, our outlook is 490,000 to 550,000 GEO sold. Of this range, precious metals would be three seventy five to 415,000 GEOs. Main contributors will be higher production from Antamina, due to access to higher grade ore based on the latest mine plan full year contributions from Valentine Gold, and new mine starts from Stibnite Gold SK Creek, Castle Mountain and Copperwork. We've also assumed the start up of Taka Taka with a partial year contribution. We assume mine expansions for Candelaria, Coracoaco and Antipacay and Magino. For the energy assets, we do assume an increase in production over the next Also, we've held energy prices flat at $70 a barrel WTI and $3 in MCS natural gas.

Overall, when you look at the outlook for GEO sold, the company has approximately 12% built in organic growth from 2024 to 2029 at budgeted commodity prices.

Excluding Cobre Panama. This also assumes that no additional assets are added to the portfolio. Please note that for all outlook ranges, we have excluded Cobre Panama our geo sold numbers. At Cobre Panama remained in production, we would have expected deliveries and sales of between 280,000 GOS A. One additional item to note with the legal proceedings that will move forward related to Cobre Panama, we're expecting to incur annual costs of approximately $10,000,000 per year. These costs will continue to be disclosed separately in our financials. Slide 13 summarizes the financial resources available to company. When including our credit facility of $1,000,000,000 dollars total available capital at December 31 was $2,400,000,000 After year end, we have funded the $500,000,000 sub NEA Western Lim complex acquisition and expect to fund the Pork Pine royalty acquisition during second quarter. The company remains well capitalized to continue to add long life high quality assets to the portfolio.

And now I'll pass it over to Jonah and we're happy to answer any questions.

Thank you.

Ladies and gentlemen, we will now begin the question and answer session. First question comes from Lawson Winder at Bank of America Securities. Please go ahead.

Yes. Thank you very much, operator. And good morning, Paul. And Sandeep. Wanted to start off with a couple questions on cobra penoma, if I might. So one would be just related to President Molino and some comments that he's made publicly. President Molino of Panama. He indicated that he would require all arbitrations to be halted prior to entering into discussion with First Quantum. I just wanted to confirm that that also included the Franco arbitration. And does Franco have the ability to put its arbitration on hold or just temporary put it temporarily put it aside in order to facilitate those negotiations as needed?

Thank you, Lawson. This is Paul. The A couple of things there. Yes, separate arbitration processes and and separate regimes. There is the ability under each of those processes that you can put the arbitration on hold. For a fixed timeframe. So that is a possibility. Although we haven't had any asks from any of the parties to put us on hold yet. Okay, perfect.

And then thanks for that, Paul.

And then another comment that President Molino had made was just speaking about the economics of the prior deal negotiated under the Cortizo government. Relating to COBRA Panama and noting that it was unfavorable for for Panama. Has Franco Nevada had any messages delivered or has any understanding what that could potentially mean for the Franco-Nevada Or Whether It Means That Anything At All? And For Example, There's Been Some Discussion Of Potential Chain In In The Ownership Position. So The Potential Ownership Ownership Position Going To The Country Of Panama. I mean, can you comment on any potential implications for Franco there? I know it's highly speculative, but it has been mentioned many times in the pan of many press and we'd just like to get your views.

Yes. So first off, in terms of the economics, I think that the deal that was negotiated a couple of years back was positive, was a good deal for Power. You'll recall in provided minimum payments in the order of $375,000,000 a year, which I think for any country is particularly strong provision. So I think there were good economic for Panama in that deal. I know there has been discussion of the country potentially wanting to get a better deal. Not surprised by that. In terms of where that may go, for Franco, we're financier here, not owners. So on the legalities of it and any change in ownership doesn't change the way that our stream is calculated. Any increase in taxes in country or any increase in royalties Now that changes the way that our royalty is written.

Yes. Okay. Thank you very much for those comments. It's very helpful. And then just two of the other streams that I'd like to ask about, it'd just be helpful to get a little bit of color on specifics. So with the SS SS or the Savani snow water South African PGM stream, So it's closed, congratulations. And then just for Q1, when we think about the 7,000 GEOs from '24 and then the forty five day delay before any GEOs are actually delivered to Franco. How should we about When the first delivery might occur? Whether it Q1 or Q2 or what would you recommend us modeling with respect to that particular stream? [indiscernible] it has closed, it closed a couple of weeks ago. The delivery from September to December for 2024, we will receive in Q1. And you're correct, the the next delivery related to 2025 production there's a forty five day time delay. So that will come in Q2. So for Q1, you should only be budgeting or estimating the delivery related to 2024. Okay, fantastic. And then just longer term, thanks for that, Tandee. Just longer term, thinking about the $28,000,000 and $29,000,000 guidance, in, Magino and Ireland are now sort of moving in the direction of becoming operation.

So with Magino, there's a 3% royalty and then with [indiscernible] How is that delineated?

Or is there the potential for those to become a combined royalty or would it strictly depend on from where the ore comes? And so so the context here is that the idea is to eventually close the Island Mill And Process Island Ore At Magino Is there an additive benefit here or is it just we have to figure out what the mix is between the two ore sources going forward to get to the right royalty level?

Yes. So right now on Island, we only cover up portion of the deposit. And so but at Magino, We cover the full land package. You're right, they are talking about shutting the island gold mill. And expanding the 15,000 tonnes per day. Alamos is reviewing that right now. So once they do that, it'll just be a question of where does the ore come. When we did our deal, we had budgeted 11,500 tonnes per day. Coming from Geno. I think at a minimum, that's what we should be receiving on any production going forward once they do expand the mill. And then in your current 2028 and 2029 guidance, that's the 11,500 tons per day. Is that correct? Correct.

Correct.

Thank you. The next question comes from Cosmos Chiu at CIBC. Please go ahead.

Thanks, Paul and Sandeep. Maybe my first question is on GEOs and how you calculate it. Could you remind us each and every quarter how you calculate yields, how you convert commodities not gold into gold equivalent ounces? Is that based on the spot prices during that quarter? Or is it based on your assumption that you put out beginning of the year like today $2,831 an ounce?

Hi Cosmos. Yes, we will adjust it each quarter. So essentially at a high level, we'll take our non gold revenue and we will divide by the average gold price for the quarter.

So obviously, you saw last year gold prices increased and it impacted the number of assets generated even though the revenue was the same. As what we had expected for the year. [indiscernible] And Sandeep, as you mentioned last year, you had to change it because it gold prices clearly fluctuated quite a bit. Beyond what you had expected beginning of twenty twenty four.

But for 2025 guidance, I guess my question is, could you share with us how much buffer you've put into that guidance And I guess my question is, how much can it [indiscernible] Just given that last year when you had to change your guidance in 2024, it was not exactly too well received. I'm just trying to see if that could happen again in 2025.

If it does happen, happen, it's actually a great thing because I mean the gold price has gone up significantly. But our guidance range is a 60,000 ounce range You take the midpoint, so we've got 30,000 GEOs to the downside. If gold price went up around 20%, I think we'd still be okay.

But obviously, it's a risk that's part of the way we calculate guidance. Certain years you benefit when other commodities outperform. Coal prices.

But obviously gold is outperforming now it is impacting the conversion. But we did run a number of sensitivities. At this stage, we're comfortable with the range.

Of course. I agree. Higher gold prices is always better. In the end, it's revenue that really matters. It's cash flow that really matters. So I think you're correct, Santee. Maybe moving on to [indiscernible] Paul, as you mentioned, the international arbitration seems to be under different regimes and I think I noticed that your meeting is October 2026. I think First Quantum had mentioned that their meeting is February 2026. Could you maybe is there any importances that we should be aware of of the different timing of the different sort of regimes that the arbitration is going under? Or is it pretty much the same?

I don't think there's anything to read into the timing there, Cosmos. First Quantum has the option of going either under the ICC, which they're going under, they could also go under the Canada Panama Free Trade Agreement, which is what we're going under.

It's MPSA that's pursuing it under the ICC We don't have that option. So our only option is under the Canada Panama. The different tribunals have different timeframes that they work under. The difference in timing is just the different processes.

Okay. But as you said, Paul, this is really Plan B. I think your preferred alternative is to for the operator and the government to work out something on their own. Right?

Absolutely. That's always the best outcome.

Of course. One last question, the porcupine. Could you maybe talk about how that deal came about? Clearly, this is the only royalty streaming involvement in the Newmont divestitures And so how did the parties come together? What's the evolution of that deal? My other part of the question is that I see that you are providing a credit facility, Paul, as you mentioned, and an equity investment as well. More sort of full service financing. Is that the type of deal we could expect on a go forward basis? Or service on a go forward basis.

Cosmos, it's Ian here. You're having a good day.

Happy to answer that question. I guess first off in terms of how it came together Tony and Cooch, we know well a number of people within Franco-Nevada have a strong relationship with Tony and when those assets came for sale, the obvious strategy was to work with the ideal person to revitalize them.

And so we quickly spoke with Tony and formed a strategy together as to how we would back him in doing that.

And the rest is history.

We did provide multiple tranches And I think that's what you will see going forward. When we can do that, we find a suitable human asset, we'll provide flexibility because capital markets aren't always the most efficient around these kinds of things. And when we see good ability to get a good return for our shareholders, we'll utilize other elements of the capital structure.

So it's not going to be all of what we do, but certainly we hope it's a component going forward and we're very pleased with the results of that transaction.

Great. Those are all the questions I have Thanks once again, Paul, Sandeep and you. Thank you.

Thank you. The next question comes from Josh Wolfson at RBC Capital Markets. Please go ahead.

Thanks very much. First question on the five year guidance. I noticed the inclusion of the underground production expansion at Candelaria and then also Tuckatuckah We don't have a lot of insights as to what the production contribution could be for those opportunities Is the company able to provide a bit more disclosure there? Maybe what the volume contribution would be?

Sure. So So Candelaria underground expansion, they've talked about it going from 14,000 tons per day to 22,000 tons per day.

And they'll likely make a decision later this year. So we we've made the assumption that they will go ahead with that. But they have to disclose whether they will or not. On Takataka, we just looked at where First Quantum is and with everything going in Argentina, it would likely be their next project that they develop. In 2029, we've assumed a partial ramp up. It works out to about 4,000 Geos. To Franco in the total, so it's not significant.

Got it. Thank you very much.

And then just a couple of sort of small details. So for Palmarejo, the disclosures talked about production declining in 2029. Is the should we assume the production stays steady through 2028 versus some of the very high levels this year.

That's correct. From 2025 to 2028, it's pretty consistent. Then it's about a 50% drop in 2029.

And Josh, those operations have have had a great history of being able to replace ounces. So that's what's in the mine plan today. We hope that in the interim that there'll be the ability to extend that mine plan.

Got it. Thank you. And one last small housekeeping question For Bald Mountain, and I know it's not a a huge asset in terms of the overall production, But just because the royalty has come up pretty strongly in recent years and the royalty can vary quite a bit depending on what land is being mined. For these new Redbird pits, any sort of idea what the royalty rate would be? Off the top of my head, Josh, can't recall. I'll I'll have to get back to you now.

Thank you. The next question comes from Heiko Ile at H. C. Please go ahead.

Hey there, Paul, Sandeep and team. Thanks for taking my questions. Recent market volatility has been quite rocky. I mean today is another Sunday in the markets. It gets a bit of an open ended question, but I mean do you already see some impact of what's going on just in pretty much every stock in these out there? Flowing down into your M and A discussions? Or is this essentially offset because gold is still sitting at $2,900 Everyone is impacted by volatility. In some form.

I got to say that the gold mining industry is very fortunate. In terms of in most places you can put the gold on a plane and buy to wherever you want and sell it wherever you want.

So I'd say of all the industries, it's probably the least impact. Okay. And it doesn't come up in conversation where people are like, I want to get out now.

Or soon?

No, no, no. We haven't had any conversations like that. Okay.

Building on what you almost just answered a little bit, have there been rumblings of countries trying to your awards put stuff on planes and get it out of there? Make that a little bit tougher given what's going on geopolitically right now?

Not in a sense of operation cycle, although I'm sure you've familiar that there's been a huge movement in stocks particularly gold stocks out of London and into The U. S. And I believe there's some of that happening in terms of copper stocks as well. But I haven't other than that, I haven't heard it any of that in other jurisdictions.

Fair enough. That's reassuring. I'll get back to you.

Thank you. The next question comes from Daniel Major at UBS. Please go ahead.

Hi there. Thanks for the question. Can you hear me okay? Yes.

Great.

Thanks. [indiscernible] I think have partially answered already, but can you just run us through the delta, the key driver for the moderation in the guidance 2029 versus twenty twenty eight?

Sure. Hi, Daniel. Sandeep here. Really the main adjustment is Guadalupe Palmario. Where you essentially based on the mine plan that we have right now, and as Paul mentioned, the mine continues to be extended over time. So we're hopeful that the mine life will continue to be extended. Got a 50% drop in in GEO. So that's essentially the drop in 2020 Thank you. That's clear. And then the second question just thinking slightly bigger picture about the Spani deal and the profile that you've provided. I mean, when we look at this kind of asset towards the upper end of the cost curve, obviously a large reserve life, but in the context of a commodity with potentially challenging longer term fundamentals, Ivanhoe has the plans to bring on the Platte Reef towards the end of the decade? I mean, how concerned are you about the longevity of production basis the kind of cost position of the asset and the fundamental outlook for the market?

Hi, Daniel. It's Ian Gray again. Happy to meet you. In terms of the assets I actually think that when you look at the cost curve, you'll see there more towards the middle. Especially when you account for byproducts. Relative to the Platte Reef, you have very significant non PGM byproducts coming out of the UG2, which Sanya is focused on. So things like chrome, iridium, ruthenium have kind of non catalytic uses. So that stands to benefit these operations.

Relatively.

Compared to some of the others.

The infrastructure, this is a market that as I'm sure well aware offtake of concentrate from certain limited as to where it could go.

Sabanye is fully integrated A lot of these other operations, it's unclear whether they have all of the offtake or other things such as water and other key elements for production that are necessary. Whereas these are very much fully integrated operations. Take a lot of comfort that long term there'll be strong producers from that basket and fully integrated nature of the operations.

Okay. Thanks for that. And then just final one. In the last couple of calls you've filled the questions and there's been some talk about fertilizers, potash. I see acquired a small option from Brazil Potash Corp. Can you give us any sense of how advanced are you in this segment of the market [indiscernible] other opportunities out there?

Thanks. Maybe on the Econ strategy overall, you know our objective is to be to go through gold stock and that means always focused is on gold and precious metals.

But I've always said also sometimes you can take advantage of good opportunities in other commodities when they come along.

And hence, we have had a diversified component over time. The opportunity with Brazil potash there is is for a very low entry point. We were able to get an option to write a royalty if and when that very large project does get developed. I think it's high likelihood it does This is a very attractive deposit. It's very close to the huge agricultural area in Brazil.

Its cost advantages in terms of logistics are very substantial. So I'm very hopeful that we'll get to excise that option over time. Other than that, as we look at the pipeline that there as usual, there's a mix of what we're looking at precious metal and diverse side, but by far the most of it is precious metal. And so I expect that's most likely what you'll see as we go forward the next number of months.

Great. Thanks so much. I'll go back Nikky.

Thank you. The next question comes from Brian MacArthur at Raymond James. Please go ahead.

Hi, good morning and thanks for taking my questions. Most of them answered. But can I go back to the delta between '28 and '29? I get it Guadalupe comes down and I guess you're saying it's the full 25,000 ounces. Can I confirm then on the Antica Pai, you talk a bit it cutting back in 2028? Is that at the beginning of the year or is that partially through the year? I'm still trying to make up the difference between 'twenty eight and 'twenty nine.

Yes. So Brian, you have a partway through 2028, so you'll have a full year drop in 2029. So you do lose ounces from Antipacay in 2029. So between Guadalupe and Antipacay, you lose some ounces. And then on the other side, you've got Copperworld, you've got Takataka, that will pick up some of that difference.

Great. Thanks. And just on Candelaria, while I'm at it, step down from $68,000,000 to $40,000,000 Again, is that partially through the year and your assumptions on 2027 or at the beginning of the year? A partial year.

Great.

Thanks very much.

Thank you. The next question comes from Tanya Yacosonek at Scotiabank. Please go ahead. Great. Good morning, everyone. Thank you so much for taking my three questions. I just wanted to follow again on this guidance and a lot of it been answered, but maybe what I just would like to clarify with you is that the Pomeroyo last year at 2029 Mindway solution is gone. Is there anything else that is sort of in the timeframe not contributing [indiscernible] is dying out over the timeframe that we should be aware of.

From a materiality standpoint, Tanya, those are the two largest.

Okay.

Perfect.

And then you mentioned I wanted to understand what is your assumption for Stillwater?

Because as you are aware, we have quite a drop in 2025. [indiscernible] Yes, go ahead. [indiscernible] the operator has guided 265,000 PTM ounces for 2025. We've assumed that for three years. And then it ramps back up subsequent to that.

And back to that 500,000 or 600,000 GEO range? 500,000, 500. Okay.

Thank you. And then just continuing on the guidance. You mentioned the Energy division. Is increasing over this timeframe. You used to provide guidance on what the energy contribution So if I think of your 2029 or 2028 guidance, we were able to see what percentage 79%, 80% gold or even 76% gold, what would you put the energy as a percentage within your 25%, 2829% guidance?

I think for 2525, we did disclose what the percentage would be energy. For '29, off the top of my head, I'd say around 16%, 17% of GEOs.

Okay.

All right. That's helpful. Thank you. And then just the final one on guidance. You mentioned that Sandy said it's going to be stronger second half. And so we understand about the flat Savannier deal. Obviously, that's why some mine ramp up occurring. How should I be thinking first half, second half? Is it a very big difference? Is it a 45, 55? And again, this assumes your price forecast and assuming them to be flat without movement and commodities. But if I think of it that way, is it a 40 five-fifty five?

Just numbers I've looked at. In our budgeted assumptions, I'd say it's 47.53.

Okay.

And is it quarter over quarter improvement? Should I be thinking of it that way as well?

Second quarter will be better than Q1 just because the timing of the Sauvennier But I look to Q3 and Q4 not too far off from each other.

Okay.

All right. So those are my guidance.

Questions.

My second one has to do with Cobre Panama. Just wanted to confirm again Is there any further discussions on the concentrate on-site and whether that may be dealt with ahead of these decisions and or other in 2026. Maybe Paul, is there anything on the concentrate and remind me the size of this concentrate Tanya, there are discussions that the company has been keen to be able to move initially what were the remaining explosives off-site Second is to move that concentrate off-site. They do have an agreement. They have been able to move the explosives discussions continue on the concentrate. It is one of the first things I'd like to get moving as the government gets more willing to discuss progress on the mine. In terms of value of the concentrate, I think the value is in the order of $250,000,000 dollars is the total value of concentrate.

Okay. Well, that would be good if we could at least deal with the concentrate. And then just remind me again on your security on the asset. You You have security at the asset level but you do not have a parent guarantee, right?

Just so that I remember this correctly.

The SaaS Security, MPSA is the operating entity in Panama. So we are secured on the shares of [indiscernible] When we look at all these deals as any good bank will tell you, where you want to be is as close to the asset as possible. So very happy with the security structure that we have at Copernicus.

Okay. So security of the asset, but you don't have a corporate guarantee, right?

We have undertakings of the chain that the various entities would ensure that the undertakings of MPSA are are fulfilled, which is opposed to the usual sort of provisions that you would get from a corporate And maybe one thing to add Tanya. Order to have the arbitration directly with Panama, it's very important that you're linked directly to the asset.

So in a lot of cases, if you're just a corporate obligation, you wouldn't be be able to avail yourself of that type of protection.

Okay.

It's just one of the benefits of that structure.

As I said, hopefully, we don't get there. Hopefully, all of this is resolved which is best for everybody here. Okay. So maybe my last question and I'll just continue on the M and A side, on the transaction side. Done a lot of deals on the gold front. Potash was a smaller one. So where do we stand now on the commodity mix of your the deals that you are currently looking at in the market? Maybe we can just review size wise, is it still this $300,000,000 to $500,000,000 Does that still the deal size? And are you focused now more on precious metals? Or have you done enough precious metals? So where are we on that mix? [indiscernible] So in terms of metals, I think Paul alluded earlier to the fact that we're still very much focused on precious metals. The vast majority of what we're looking at right now is is precious metals. It doesn't mean that there aren't good opportunities outside of that. But in terms of just deal flow, that's primarily what we're seeing.

At the moment. I think it's a good time And in terms of the complexion of the deals, what I would really say is what you saw last year is a good reflection of kind of what we're seeing now. Last year obviously was also unprecedented in terms of total dollars that we deployed, very happy about how active we were and the investments that we made But in terms of what they look like very similar in terms of whether it's size or reason for doing the deal.

Okay. And would it also still be for asset for development of assets? Is it still that financing options for smaller companies? Is that still the case?

Absolutely. I think core pillar of our business development efforts is project finance. I think got a strong team to do that. We're well placed with our balance sheet.

We continue to focus very much on trying to significant project financing deals.

Okay. And then I wanted to ask just on the non gold side. You said there could be opportunities come up Are there opportunities in the non goals side? Of your business? And if so, what sort of size of those potential transactions Certainly, there are opportunities there. It's span a range in terms of size, but probably similar to what we've been looking at on the precious metals side, Tanya. Some are smaller, some are more medium sized Okay. So that's $300,000,000 to $500,000,000 Okay. And would we still continue to keep focusing on the sort of non gold commodities that you have historically looked at or is energy back in the game? That's I guess what I'm asking. Would you consider energy in that non gold component I know you had to put a pause button on it for a while.

So Tanya, as usual, the diversified strategy is all around being opportunistic. Rather than starting with a particular commodity. So energy is the if the right opportunity is there, we would also add, we better room currently but nothing currently active.

Okay.

Okay. Thank you so much for taking my questions. I'll let someone else answer. I really appreciate it. Thank you. Thank you. The next question comes from Martin Pradeau at Veritas. Please go ahead.

Yes. Thank you for taking my question.

Can you give us some precision on what do you expect from TOCA Tocquito Signo and Balinton Gold for 2025?

Sure. So for 2025, Valentine will be ramping up in the second half of the year. So it's minimal. It's 1,500 to 2,000 DEOs. Tokens in NEO fully ramped up just over 20,000 Okay. Thank you.

And I've seen a lot about the CRA and you continue having that that is a Do you expect some kind of decision in this year this coming year? Obviously, we're a large tax payer in the view of CRA. So we are constantly audited, no different than other large cap taxpayers. Obviously, we had three audit issues outstanding, two got resolved where they dropped the reassess transfer pricing dispute that's ongoing. We continue to work with CRA. Would I like to resolve it this year? Absolutely. But with CRA, it's just a question of timing and what their views are. So we continue to move forward but no resolution at this time.

Okay. But the 2013 or something like that isn't that part supposed to are they supposed to reach a decision this year?

Yes. So you have to they reassessed us, we appealed, and then you have to go through a process and work your way towards a potential court date. We're working through that process. You have to go through discovery. We've done that. Now it's just a case of can you you resolve it yourselves or do you end up in court? So no decision at this time.

Okay, great. Thank you very much.

Thank you. The next question comes from John Tumazos at John Tumazos Very Independent Research. Please go ahead.

Congratulations on putting $1,000,000,000 to work. And for the $55,000,000 in discovery stock, to basically double in a month, well done.

If you wanted to go to the beach or fish or play golf for the rest of the year, you done a good job for the shareholders. You earned it.

In all seriousness, In all seriousness, could you tell us your criteria in terms of minimum rate of return, gold price or other So in evaluating future deals to not reduce the average quality of the portfolio given some of the great deals you have in hand. And are your criteria primarily numerical quantitative or as qualitative geologic inference more important to you? Than an NPV?

John, I think you've answered the question there. At the end of the day, you got to be invested in good ore bodies and [indiscernible] our overall objective is make sure that we do that and anything that we add added to the portfolio is a great quality of body. [indiscernible] anytime we look at a deal and our Board constantly reminds us of this, whatever you put in your spreadsheet, it's not going to happen. All bodies will develop and grow over time, commodity prices will change over time. So the focus is on the quality of your bodies, getting the right ones in the portfolio You know how we think about it, which is we're prepared to accept the low rate of return for what you can see today on those ore bodies. But if you pick the ones that have got the best odds, of getting bigger over time, that's really where we make our return. The focus is what are your bodies with great economics that we're can be very comfortable, we're going to get our money back and then what are we exposing ourselves to what's the potential optionality what's the multiple of our money that we can make if our hopes and dreams come true for the expansion of the old bodies.

In term thank you. In terms of the new silver investment, is it limited to exactly the land holdings bought from Newmont at closing and the existing dome mill And for example, if Tony were to buy back his old company, Lakeshore Gold from Pan Am, should we assume that's excluded from your royalty?

John, it's Ian here. Thank you for the kind words upfront. On the discovery deal, I guess first of all, what matters to us is relationships And so we are very much trying to support Tony in his efforts and as he's alluded to the market, he has very ambitious plans for that camp. And we want to be there to support him on those We agreed some partnership clauses in the agreement to provide us certain rights in certain circumstances.

But we are would say, more as a kind of commercial and relationship kind of very keen to help them as he looks at the one you there are many other opportunities.

Not just one in the area.

So we're keen to help them evaluate how you may be able to maximize value for Discovery shareholders of which of course we are what?

So it's an exciting Thank you.

Thank you. We have no further questions on the phone. I will turn the call back over to Candida Hayden.

Thank you.

Our first question comes from Bernie Pachey at Palisade Capital Management. Traditionally, Franco-Nevada has avoided investments in certain places, Russia, China, for example. Rule of law is critical. I was surprised by your investment in Savania Stillwater. Africa has generally not been an area of interest for Franco Nevada. Can you explain this decision further?

Thanks for the question there. The Our objective is a low risk way that investors can invest in the industry, gold and the benefit of exploration upside. The approach geopolitically is you got to make sure that most of your assets are in great countries and we're blessed to have. So many assets Canada U. S, Australia, There are a lot of other good mining countries in the world and so we're all exposed in Chile, Peru, Brazil, do have assets in West Africa and we have had assets in South Africa. Particular, for many years, we've had an interest in mine waste It wasn't planned this way, but actually the mine waste deal has ended. It was about 20,000 plus ounces a year in geos and were able to do this by year deal similar amount over the long term. So our exposure to South Africa is about the same as it was previously. South Africa is different from much of Africa. It is a very well developed mining economy. It's got a long history. It's got good labor force, good suppliers.

And it does have a goodwill law as opposed to for mining. So in terms of the amount of exposure that we've got, roughly the $500,000,000 are comfortable in putting that in South Africa. It does have its risks and its political risks. I actually think it's on the uptick in recent years You had the change in government, the aim C is still leading it, but for the first time, it's a government of national unity. And I think that's put some checks and balance on the ANC and there's there is a good level of optimism in country that it has there's a change in direction in terms quality of government management.

I think you've seen very practical results in terms of turnaround in the power situation and also real good results on the ground. In terms of improving the transportation infrastructure. So quite happy with that investment. So that's I think it's going to do us well over time.

Our next question is also from Bernie Pichai at Palisade. Capital Management. When you say there is $250,000,000 of concentrate, on-site at Cobre Panama, that you and First Quantum would like to move, how much of that is yours versus First Quantum?

I haven't done the math recently. Depends on what the gold price is at the time obviously, but there's that roughly the value there that we do to receive is $15,000,000 to $20,000,000 Thank you, Paul. There are no further questions from the webcast. This concludes our twenty twenty four year end results conference call and webcast. We will host our Investor Day on Tuesday, March 25, 2025. The in person presentation will be hosted at the Lumix Experience Center in Toronto at one p. M. Eastern Time. The presentation will also be available to view virtually.

Registration details are available on our website. We expect to release our first quarter twenty twenty five results after March close on May 8 with the conference call held the following morning. Thank you for your interest in Franco Nevada. Goodbye.

Concludes your conference call for today.

Thank you for participating and we ask that you please disconnect your lines.