Where you will also find our full financial results. The presentation is also available to view on the webcast. During our call this morning, Paul Brink, President and CEO of Franco Nevada, will provide introductory remarks, [indiscernible] Chief Financial Officer who will provide a brief review of our results. This will be followed by a Q and A period. Our full executive team is available to answer any questions. Participants may submit questions by 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.

Thank you, Candida, and good morning, everyone. Today, we're reporting our best financial results ever We achieved record quarterly top and bottom line results and that without any contributions from corporate panel.

Results benefited from elevated gold prices, a good contribution from our Hamlow NPI, and strong production from iAgium. We're looking forward to added contributions through the year in particular, from the ongoing ramp up of Tokuta Zinio and Greenstone and the start up of Ballantyne Gold. As well as contributions from the new Poker Spine royalty. On the topic of Cobre Panama, President Molino of Panama continues to indicate a willingness to hold discussions about the mine this year. And we're encouraged by his recent statements in this regard. It was an active quarter for our community Support Program, and we funded contributions for a waste management initiative at Cascabell, Sogold the reopening of the museum of Northern History in Kirkland Lake with the Nico Eagle and Almos, and a contribution to the Sioux area Hospital Foundation with Alamance. During the quarter, we closed the previously announced $500,000,000 acquisition of the stream on Sylvania Stillwater's Western Limb mining operations and we received the initial payment, which relates to operations in the last four months of last year. We ended the quarter debt free and with $2,100,000,000 in available capital, And post quarter end, we closed the acquisition of a 4.25% NSR royalty for $300,000,000 with Discovery Silver on the Poker Blind Complex.

You'll recall, as part of that financing package, we also provided $100,000,000 loan facility and we had a roughly we provided a roughly CAD 70,000,000 lead order in their equity issue. Needless to say, we're delighted with the roughly tripling value of the shares from our purchase price. We remain well capitalized, to add further growth and our business development team have a number of actual opportunities that could add further attractive assets this year. With that, I'll hand the call to Sandy. Thanks, Paul. Good morning, everyone. As Paul mentioned, Franco-Nevada reported record financial results for first quarter ended 03/31/2025. This was the result of both strong production from our asset base and higher precious metal prices. Precious metal prices with gold in particular were very strong in first quarter. On Slide four, you'll see a comparison of commodity prices for Q1 twenty twenty five and Q1 twenty twenty four. Gold and silver prices increased significantly year over year with the average gold price higher by 38% in the quarter. And average silver price being higher by 37%. Prices for palladium, iron ore and oil continue to be volatile, were lower compared to prior year, However, you did see a significant increase in natural gas prices.

On Slide five, we highlight total GEO sold and net GEO sold for Q1 twenty twenty five, Q1 twenty twenty four. Total GEO sold were 126,585 in the quarter compared to $122,897 in the first quarter of twenty twenty four, a 3% increase. Precious metal geos sold in the quarter were 100,623 higher by 8% compared to prior year. For the quarter, we received strong contributions from Candelaria, and benefited from the recent acquisitions made, Yanacocha and Western Wind Mining Operations As Paul mentioned, we did receive our first geos from Western Limb in the quarter. Which were related to the production period September 1 to December thirty one of last year. Geos related to January 2025 were delivered in April. And it's important to note there's a three month delay between production and delivery to Franco Nevada. In addition to better performance from Candelaria, and receiving GEOs from recent acquisitions, we also benefited from the continued ramp up of operations at new mines to Kensigno. And Greenstone. I look forward to increasing contributions from these assets. One of the key outperformers versus our expectations was the Hemlo M We did report a catch up accrual related to twenty twenty four that was recorded in the first quarter.

But the Hemlo MTI again showed its leverage to higher gold prices. Revenue recorded for the quarter was 17,700,000.0 compared to $4,800,000 a year ago. Diversified geos sold were 25,962 for the quarter, compared to $29,879 for prior year. Despite diversified revenue being higher by 21% year over year. Dollars 74,800,000.0 versus 61,600,000.0 The approximate 4,000 GEO sold reduction is due to the impact of higher gold prices when converting revenue to 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's minimal cost associated with each. Versus stream geos where an ongoing fixed payment is required. The measure net geos removes the cost of sales component for all geos, so that geos sold are represented after cost. For Q1 twenty twenty five, net geos were $113,138 for Franco Nevada, compared to $106,006.81 dollars in Q1 twenty twenty four. A 6% increase. I think it's important to note that when looking at our growth going forward, the majority of that growth comes from high margin royalty geos. Versus streams. As you turn to Slide six, we have highlighted our revenue and adjusted EBITDA results for the last five quarters.

Total revenue for the quarter was 368,400,000.0 which is a record for Franco Nevada. This compares to $256,800,000 last year, a 43% increase. Precious metals accounted for 79% of revenue. Adjusted EBITDA, also a record, was 49% higher for the quarter at $3.29 321,900,000.0 compared to 216,100,000.0 first quarter of twenty twenty four.

Slide seven highlights the key financial metrics used by the company. As mentioned, total GEOs were approximately 126,000 generating $368,400,000 in revenue during the quarter. With respect to cost, we did have an increase in cost of sales compared to Q1 twenty twenty four, due to higher stream ounces sold. Cost of sales was $38,500,000 versus $33,600,000 year. Depletion did increase as well, to $68,400,000 versus $58,200,000 a year ago, Depletion is based on actual mining GEO sold. And barrels of oil equipment. Equivalent received from the Energy Division. As we received more GEOs from Candelaria, and began depleting our recent transactions in Yenokocha and Western Limb mining operations, This impacted depletion as those assets are currently higher per ounce depletion assets. Adjusted net income was 205,600,000.0 or $1.07 per share for the quarter both up 51% versus prior year. Slide eight highlights the continued diversification of [indiscernible] 79% of our Q1 twenty twenty five revenue was generated by precious metals, with revenue being sourced 84% from the Our largest contributor to revenue was Candelaria. Slide nine illustrates the strength of our business model to continue to generate high margins. For first quarter twenty twenty five, the cash cost per GEO which is essentially cost of sales divided by gold equivalent assets sold, was $3.00 $4 per GEO.

This compares to $273 per GEO in Q1 twenty twenty. Four. As the gold price has risen, Franco Nevada has seen a significant increase in our margin per GEO with it being over $2,500 per GEO in Q1 twenty twenty five. As we've always said, in a rising commodity price environment, we expect to benefit fully as the cost per GEO should not increase significantly. And lastly, Slide 10 summarizes the financial resources available to the company. When including our credit facility of 1,000,000,000 total available capital at March 31 is 1,900,000,000.0 However, this is net of the CAD 300,000,000 funded after quarter end for the porcupine. Royalty. The company remains well capitalized to continue to add long life high quality assets to the portfolio. And now I'll pass it back over to Jenny, and we're happy to answer any questions.

Thank you. If you are joining us on the webcast, please submit your question through the Q and A section of the webcast platform. Your first question is from Heiko Ihle from H. C. Wainwright. Your line is now open.

Hey, good morning, Paul, Sandeep and team. Happy Friday. Hi, Likewise. [indiscernible] you did the conversion of the net profit on Pandora into a Netsweather net smelter return royalty. Out of curiosity, given current commodity pricing, is that something where you're getting more and more operators or approaching you on some sort of conversion or amendment to streams? Because I was always under the impression that, you know, in general, once a stream is there, it it sort of stays and it doesn't really get renegotiated. Is there more scene right now with people trying to do things given that a lot the operators have more cash flow than they probably thought a year ago? I don't see a theme at the moment. That conversion was just a function of the transaction that we did. Was still what at the time. And it did make more sense in doing that to convert that into an NSR, which is a more predictable instrument for us. So I'd say it's more just related to the particular transaction. Fair enough. So as we shouldn't expect anything else like this and q two and beyond, really. Yeah. No no conversions expected. Okay. And then something completely different.

I was there was an article in the Wall Street Journal a couple of days ago with Warren Buffett and his stake in Occidental Petroleum. And essentially, it said the investment didn't really work out. In contrast, your U. S. Energy interests actually did quite okay with obviously higher royalty rates in the Permian. Just want to see what have you been doing better And, given current pricing, what are you seeing with the new royalty investments? In that space?

It's Jason O'Kong here. I don't think we have a similar interest as as Oxy did. We are a passive investor in royalties in The U. S. So we don't have the cost structure, etcetera, that Oxy would have and some of the performance issues that they may have had. I think our exposure in The US is fairly broad. We've got access to most of the major shale plays, including both the Permian and Anadarko on the oil side as well as the Haynesville and Appalachia on the gas side. So we're very well exposed both in terms of our footprint in the different basins as well as the different commodities. We are continuing to evaluate different opportunities in oil and gas. We look at good quality assets and real estate to they become available. We'll continue to assess those. If there's something that is of good quality and value. May look between that and the teacher.

Fair enough. Thank you, guys. I'll get back to you.

Thank you.

Your next question is from Cosmos Chi from CIBC. Your line is now open.

Thanks, Paul, Sandeep and team, and congrats on the record earnings.

It's well deserved. Maybe quick question first on the MPI at Hemlo. Sandeep, as you mentioned, there is a bit of a catch up in the quarter. So to confirm, we shouldn't expect the same sort of elevated level in terms of earnings from Hemlo for future quarters. It'd still be good because as we know, MPI is very levered to higher commodity prices, but likely wouldn't be fit to the same sort of level.

Yeah. Hi, Cosmos. Yes. The catch up related to last year was about 5,000,000 U. S. So the Q1 NPI and its own was about 12,000,000 U. S. As you said, it's very hard to predict NPIs. Especially at Hamelow where we don't cover the entire mine, we're just on one portion of the underground. But at current commodity prices, I'd expect something similar in terms of revenue. Unless something drastic happened. But as I said, until you get the numbers you don't really know, But I think that's a fair estimate going forward.

You know what, it's a good surprise. So I think that's a positive. And then in terms of NPIs, as we talked about, very leveraged to higher commodity prices, If I scan through your portfolio, the other NPIs in in Kirkland Lake, So is there any way that you can kinda talk about the potential here at the NPI at Kirkland Lake cause it didn't see the same degree in terms of increased in q one. So, again, maybe it's just based on the area that you cover, but is there any more additional color that you can give us on the Kirkland Lake MPI?

Sure.

So the Kirkland Lake NPI is a 20% accounting profit MPI. But it's only on a couple of claims at Kirkland Lake where they're not mining right now. So we're not getting but they've had very good exploration results there, and they're moving towards those claims. So in the years going forward, I do expect to finally start receiving payments on those. But there won't be anything this year. The one NPI I will mention is muscle weights. Where we have a 5% MPI. [indiscernible] taking over that asset from Newmont, we're looking forward to seeing what they do with that with that asset in terms of more efficient mining. And improving productivity and just both and these higher commodity prices just see how that plays out. So that is one where I think we do have some leverage.

And the Musselwhite NPI, does that cover the entire property? Okay. That's that's good to know. Maybe switching gears just quickly on the western limb. The fairly recent acquisition. Could you maybe talk about the timing again in terms of I saw that you received 6,540 GEOs in the quarter, but that was for the four months ended last year. So I would have expected it to be all the way to March or the end of q one. In terms of payments. So may again, maybe there's a lag Could you walk me through the the timing in terms of I guess, what what should we expect in terms of receipts in, say, Q2 and then Q3 for Franco Nevada into 2025?

Sure. So what we received in Q1 was related to lapse year for the last four months of the year. We didn't receive anything related to 2025. There's basically a one quarter lag. So January got delivered in April, February will be May. So as we guided to on an annual basis, it's roughly 20,000 geos. Divide that by four, so roughly 5,000 GEOs a quarter. [indiscernible] And then maybe one last question, bigger picture. Paul, you had kinda mentioned COVID Panama. But again, based on your point of view and your interpretation, maybe give us a bit more color in terms of what do you think kind of happening in Panama how that relates to Kobe Panama, And as we all know, first Quantum discontinued their international arbitration process I think yours is still active. So maybe it can talk a little bit about that as well.

Maybe starting up, you know, what what what is going on in Panama at the moment. [indiscernible] You would have seen that President Molino for a while, has said he's open to a discussion on the mine this year. He did late in March, give instructions to his team to say he wanted them to turn their minds to how they might address the mine, The country has been completing the process on Social Security, They've also had to deal with The U. S. In terms of the Panama Canal. Those have all been items on the agenda. Very hopeful that negotiations can start fairly soon with the company I was also encouraged by by some comments that Molina had made to say he would would like to see that they can get the situation with the mine resolved by year end. So I think that is the setup. In terms of our own arbitration process and suspending We have had discussions with representative of the government Those have been productive, but we don't have anything to report on that at this stage. Great, thanks.

Paul, Sandeep, and team. Those are all the questions I have. Have a good weekend. Thanks, Carlos.

Thank you. Your next question is from Daniel Major from UBS. Your line is now open.

Hi, Paul. Hi, Sandeep. Thanks for the questions. First one, just to again on Cobre Panama. Looking at the commentary from Molina, I mean, think he quoted that he's open to forming an association with First Quantum with respect to the new Cobre Panama license not being based on contract law, but he wants to see all arbitration suspended. Is this something that the Panamanian government have approached you about dropping your arbitration claim to facilitate an engagement on the licensing agreement? Or is this just purely a negotiation between First Quantum and the government of Panama?

In terms of the ownership, as you well know, it is First Quantum and also CORES, the Koreans. Who are the owners of the assets. So in terms of any negotiation, it's it's a negotiation with those parties. We're a financier to this project. Don't have a seat at the table.

As outlined and mentioned before, we obviously do have our arbitration rights As I said, we have had some discussions with government representatives. But don't have any anything to report on it. Okay. So at this stage, you're not looking to drop your arbitration claim?

Our discussions have been we're open to suspending it under the right conditions. And so we've had discussions around that.

Okay.

That's useful. Thank you. And then the second question a strong performance from the oil and gas component of the portfolio. This quarter. Can you give us a steer on the distribution of expected GEO sales from the diversified portion of the business through the balance of the year?

I think in terms of the energy performance, we did have a strong a strong quarter. Part of that was helped out by prices. The other piece was we had some strong performance in our Permian assets from new wells that came online during the quarter. Going forward, I expect that we'll see a reasonably flat profile, although it will depend on where prices go. You would have seen last year when the gas price was weak some of our volumes on the on our gas assets came off as operators pulled back on activity.

We are waiting to see how the operators on our lands react to what has been a lower oil price. [indiscernible] you can expect that if prices stay lower for a longer period of time, then may be some reduction activity, which could translate into slightly lower volumes. So it is largely a function of price Prices sort of stabilize in and around where they were last year I would expect a fairly flat profile. If prices continue to weaken, you may see some modest volume decline associated with a pullback in activity.

Okay, thanks. And then one more if I could. Just thinking about your pipeline of projects and where your focus is at the moment. Can you give us any steer Most of the transactions have been more focused on gold assets in the space. Are you seeing any pickup in interest in the base metal space? And has there been any negotiations in Argentina that you've can make any comments on?

Hi, Daniel. It's Ian Gray speaking. I would make the first overall comment that the gold market is very active in terms of royalties and streams. So we're spending majority of our time there and we're quite pleased with the conditions. There are opportunities outside of gold, relatively few compared to what we're seeing in gold. And no specific commentary I can provide on Argentina.

All right, thanks.

Very useful. Have a nice weekend.

Great. Thank you.

Thank you.

Your next question is from Tanya Jakusconek from Scotiabank. Your line is now open. Great. Good morning, everybody. Congrats on a good quarter. And good start to the year. And that HAMLO NPI is the one that just keeps on giving. So hard to forecast. Anyhow I just don't [indiscernible] I have three questions if I could. I'm gonna start with Sandy just the easier one on just on the modeling side. So thank you for that modeling on the HEMLO. And also, I just wanted to have a little bit of an idea on how the overall profile for the company shapes out during the year. We had started obviously with a good Q1, We had talked about a profile of 47% in the first half, 53% in the second. With a similar Q3, Q4. And that was based on the ramp up of some of the operations that Paul mentioned in the beginning of the presentation. Just wondering how that is that still what you're looking at based on what you know today?

Yeah, Tanya. I think I think that's a fair profile. The caveat is that the gold price has gone higher. Like our our guidance was done at $2,800 an ounce. [indiscernible] And energy prices have pulled back from especially oil from where we had budgeted. So on an overall geo profile, I think that's fair. You'll probably you might see some of the gains on the mining side negated on the conversion when we're converting the diversified side.

But for your modeling purposes, I still think it's a fair profile.

Okay. And just on the energy side, and I know we a little bit on it. Can you just remind me the lag in terms of pricing that are felt? I thought there was about a six month lag. Is that correct in terms of, you know, what they're doing today versus where you're going to see this in your financials? Is it about six months?

Tania, it depends on how you look at it. From a a pure price impact, We get paid on our royalties typically they range, but from anywhere from one month to maybe three months following production. So there's that impact.

The other impact that I spoke about earlier is is an impact to drilling activity. That is a longer lag. Operators typically will want to see where prices are going to sort of flatten out a little bit. Oftentimes, yes, I'd say six months probably a reasonable timeframe to see how that unfolds. Would see if you look at some of the disclosure around our operating companies some of them are starting to react to lower prices by reducing their capital budget so much. So there is already a little bit of impact I would say the majority likely you'll see some news next quarter of prices continue to be lower.

Okay, thanks for that, Jason. Maybe I can come to Paul on my second question.

Just back on Cobre Panama. And the arbitration. So I I actually, maybe just on the next step, where do we stand on the concentrate? I mean, we've been told that they fired up the power plant or have they fired up the power plant? I think they were given direction to fire up the power plant and then was a concentrate on-site that was supposed to be sold. So maybe just where, what exactly is happening on-site and have we a timeline on selling this concentrate No timeline yet.

Tanya. Really three moving pieces there that they one is the approval of the preservation and safe maintenance the other is shipment of the concentrate, and the third is restarting the power plant. The indications again from the government is that they're open to all those things going ahead. But they haven't actually gone ahead at this stage. I'm hopeful that in the coming months, that that we should see all of those things go ahead.

Okay. So on the mind I guess, the property mind site, they're just keeping it on care and maintenance with the normal care and maintenance procedure. That are in place and there's nothing else that is going on.

Not that I'm aware of. Okay. And then just in your comments, you said you'd be open to dropping the arbitration under a certain conditions with your discussions. Not into the details, but just from a bigger picture.

You know, what would lead you to do drop the arbitration? Would it be that [indiscernible] Or are there anything that you can provide some color on what would help you with your decision on the arbitration?

Yeah. So so first, the it's suspending rather than dropping. So that's just would be putting it on hold for a period. To allow them. There is a negotiation, but with still with the rights that that could pursue So I'd say you've put it on hold is a good word. I don't want to get into the details of what those conditions would be, but the broad is, want to know that the the table is set for negotiation and that both parties are ready to go. Okay.

Okay, thank you for that. And maybe my last question, just wanted to circle back on the transaction opportunities. I wanna start by asking, last quarter when we about the transaction opportunities, we talked about a pipeline in the 100 to 500,000,000 range. Some of your peers have mentioned that that range now has moved up in size. So I'm just wondering, you seeing larger opportunities out there and are those opportunities mainly in base metal producers that are trying to crystallize on this higher gold price. I'm just trying to understand whether that something that has increased in sort of transaction opportunities. And then I just wanted to ask about the royalties versus the stream. How do those look? In terms of opportunities? Are you seeing more royalties, more streams?

Hi, Tania, it's Ian again. And I would say first off, we're seeing similar conditions to what we saw last year.

In terms of overall volume of deals and also on size. So I that's probably the best guidance I can give you.

In terms of deal volume and sizing. In terms of royalties versus streams, similar to last year, it's a mix. And we're seeing good opportunities in both.

Okay, and even just you came back and talked a little bit about, you have some opportunities and the non precious metals. Would that be outside of energy?

Hey Tanya, it's Jason. We're looking at opportunities both within energy and outside of energy.

So it's a pretty broad universe of things that we're looking at, Overall, it's a little bit about the commodity, but a lot of it is just what assets are available and which are the best quality opportunities. And those are the ones that we'll focus our time Okay. And in the non gold opportunities, what size would those be at?

There's really a wide range from very small to larger transactions. So we're looking at a full spectrum of sort of quantum Okay. When you say large, is that small from, like, 50 to 500, or is it up to a billion?

I don't know what your large is.

Large is a spectrum from zero to plus 500 Okay. All right. That's helpful. Thank you so much for taking my questions, and good luck in as a good quarter. Thank you. Your next question is from John Tumazos from John Tumazos Independent Research. Your line is now open. Thank you.

I noticed that Newmont sold 40,000,000 shares of Discovery Silver overnight. First question, would Franco Franco want to buy the next block that Newmont wants to sell to have more? Or would Franco be a seller?

John, we're a very happy supporter of the team at Discovery. We're delighted with we hold.

The but our strategy, as you know, is principally around royalties and streams. Where in getting deals done, that's helpful for us to do. Mean, putting in particular to be a lead order in an equity deal. Is something that we do. One of the things we're trying to do is put money in, but leverage the dollars that we're putting in. So if if we can help the company raise more capital by providing that endorsement, that's a good part of the strategy.

But just buying block of shares is is not really part of the strategy.

Following up on the earlier question, as the gold price rises, it easier for the exploration and development companies to raise money. Should we expect Franco to have a larger dividend payout? In view of the booming gold price.

Hi, John. It's Sandeep here. As you know, we have always highlighted our dividend strategy as being sustainable and progressive where we always want to be in a position where we are raising the dividend and we're proud of the fact that we've raised it eighteen eighteen years in a row. In terms of a higher dividend payout, our priority is always adding assets, good long life assets, whether royalty or stream. And we see lots of opportunities right now. So I think you'd see our focus for capital deployment on adding those types of assets to the portfolio. But still raising the dividend. But I wouldn't expect an unusually higher increase in the dividend than we normally have done.

Happy hunting. Thank you. Thank you.

There are no further questions on the phone line. I will now turn the Q and A over to Candida Hayden, who will take questions from the webcast. Thank you, Jenny.

Are no further questions from the webcast. This concludes our first quarter twenty twenty five results conference call and webcast. We expect to release our second quarter twenty twenty five results after market close on August 9. Thank you for your interest in Franco Nevada.

Thank you.

Ladies and gentlemen, that concludes our conference call for today. Thank you all for participating. May now disconnect your lines.