Franco-Nevada Corp. Q1 FY2025 earnings call

• Paul Brink highlighted record financial results driven by elevated gold prices, Hemlo NPI, and Energy interests, with contributions expected from Tocantinzinho, Greenstone, Valentine Gold, and Porcupine royalty. Closed $500 million acquisition of a stream on SibanyeStillwater's Western Limb Mining Operations and ended the quarter debt-free with $2.1 billion in available capital. - Sandip Rana discussed record revenue and adjusted EBITDA, growth from high-margin royalty GEOs, diversification of the portfolio, and noted that net GEOs remove cost of sales, showing a 6% increase year-over-year. Community support initiatives were also mentioned, including funding for waste management and hospital foundations.

Franco-Nevada reported record financial results for the first quarter ended March 31, 2025. Total revenue was $368.4 million, a record, with precious metals accounting for 79% of revenue. Adjusted EBITDA was $321.9 million, up 49% year-over-year. Net GEOs were 113,138 in Q1 2025 compared to 106,681 in Q1 2024, a 6% increase. Hemlo NPI contributed $17.7 million in revenue, up from $4.8 million in the prior year. Energy interests had strong production, and diversified revenue was $74.8 million, up 21% year-over-year.

• Sandip Rana mentioned the profile of 47% in the first half and 53% in the second of the year, but noted gold price and energy price impacts. - Paul Brink talked about ongoing ramp-up of Tocantinzinho, Greenstone, and Valentine Gold, and potential business development opportunities with a number of actionable opportunities to add assets this year.

• Uncertainties surrounding Cobre Panama's situation, including ongoing arbitration and the need for negotiations with the Panamanian government. - Potential impacts of commodity price volatility on energy operations, including lagged effects on financials due to drilling activity and capital budget adjustments.

Q: Heiko Ihle asked about conversions of NPIs to royalties and if operators are approaching for amendments.

A: Paul Brink said the conversion with Stillwater was a specific transaction and no general theme of conversions expected.

Q: Cosmos Chiu asked about Hemlo NPI catch-up and Kirkland Lake NPI.

A: Sandip Rana said the Hemlo catch-up was about $5 million, and Paul Brink discussed the Kirkland Lake NPI with exploration results and Musselwhite NPI.

Q: Daniel Major asked about Cobre Panama arbitration and energy lag.

A: Paul Brink discussed Cobre Panama's situation and Jason O'Connell talked about energy lag with a 6-month potential impact.

Q: Tanya Jakusconek asked about Cobre Panama, arbitration, energy lag, and transaction opportunities.

A: Paul Brink and others discussed Cobre Panama's status, energy lag, and Eaun Gray and Jason O'Connell talked about transaction opportunities in a mix of royalties and streams.

Q: John Tumazos asked about Discovery Silver and dividends.

A: Paul Brink said buying shares isn't part of strategy and Sandip Rana discussed sustainable dividend growth with focus on adding assets.