Franco-Nevada Reports Q3 2023 Results Precious Metal Assets Performed Well
NEWS RELEASE
Toronto, November 8, 2023
(in U.S. dollars unless otherwise noted)
Franco-Nevada Reports Q3 2023 Results
Precious Metal Assets Performed Well
“Our core precious metal assets anchored the quarter, resulting in increased revenue and earnings over the prior year
period,” stated Paul Brink, CEO. We are looking forward to added precious metal contributions from a number of new
mines in 2024 and, in particular, from the Tocantinzinho stream where G Mining Ventures is progressing construction on
time and budget. Franco-Nevada is debt-free and is growing its cash balances.”
The Panamanian National Assembly approved the revised Cobre Panama concession agreement in October 2023. In
response to protests that followed the approval, the Government proposed but did not proceed with a popular
consultation on the revised concession contract. The Panamanian Supreme Court is, however, considering a number of
lawsuits challenging the constitutionality of the law pertaining to the contract. Production at the Cobre Panama mine has
not been impacted and we, along with the operator, First Quantum, are closely monitoring the unfolding situation.
Q3 2023 YTD 2023
Q3 results vs YTD results vs
Q3 2022 YTD 2022
Total GEOs1 sold (including Energy) 160,848 GEOs -9% 474,694 GEOs -13%
Precious Metal GEOs1 sold 125,337 GEOs +4% 368,608 GEOs -3%
Revenue $309.5 million +2% $915.7 million -8%
Net income $175.1 million ($0.91/share) +11% $516.1 million ($2.69/share) -4%
Adjusted Net Income2 $175.1 million ($0.91/share) +10% $510.2 million ($2.66/share) -4%
Adjusted EBITDA2 $255.1 million ($1.33/share) -1% $760.1 million ($3.96/share) -10%
Adjusted EBITDA Margin2 82.4% -2.4% 83.0% -2.1%
Strong Financial Position
• No debt and $2.3 billion in available capital as at September 30, 2023
• Generated $236.0 million in operating cash flow during the quarter
• 16 consecutive annual dividend increases. Quarterly dividend of $0.34/share
Sector-Leading ESG
• 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
• Goal of 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 exposure to some of the world’s great mineral endowments
• Strong pipeline of precious metal and diversified opportunities
2
Quarterly revenue and GEOs sold by commodity
Q3 2023 Q3 2022
GEOs Sold Revenue GEOs Sold Revenue
# (in millions) # (in millions)
PRECIOUS METALS
Gold 103,641 $ 199.5 96,628 $ 166.6
Silver 16,526 31.6 17,883 30.3
PGM 5,170 9.7 6,031 9.8
125,337 $ 240.8 120,542 $ 206.7
DIVERSIFIED
Iron ore 6,619 $ 12.8 6,311 $ 10.8
Other mining assets 1,677 3.2 1,574 2.9
Oil 20,926 38.2 20,930 36.6
Gas 4,098 9.9 23,516 40.9
NGL 2,191 4.6 3,535 6.3
35,511 $ 68.7 55,866 $ 97.5
160,848 $ 309.5 176,408 $ 304.2
Year-to-date revenue and GEOs sold by commodity
YTD 2023 YTD 2022
GEOs Sold Revenue GEOs Sold Revenue
# (in millions) # (in millions)
PRECIOUS METALS
Gold 303,179 $ 585.7 299,173 $ 544.9
Silver 49,478 95.5 58,740 107.2
PGM 15,951 31.0 22,830 41.2
368,608 $ 712.2 380,743 $ 693.3
DIVERSIFIED
Iron ore 18,801 $ 36.0 24,573 $ 44.7
Other mining assets 5,435 10.3 3,459 6.4
Oil 54,847 102.2 66,448 121.8
Gas 19,800 41.0 59,597 108.3
NGL 7,203 14.0 11,254 20.8
106,086 $ 203.5 165,331 $ 302.0
474,694 $ 915.7 546,074 $ 995.3
In Q3 2023, we earned $309.5 million in revenue, up 1.7% from Q3 2022. We benefited from an increase in GEOs from our
Precious Metal assets as well as higher gold prices. This more than offset the decrease in revenue from our Diversified
assets, which reflect lower oil and gas prices when compared to the relative highs of the prior year quarter.
Precious Metal revenue accounted for 77.8% of our revenue (64.5% gold, 10.2% silver, 3.1% PGM). Revenue was sourced
88.0% from the Americas (28.7% South America, 28.4% Central America & Mexico, 15.9% U.S. and 15.0% Canada).
Environmental, Social and Governance (ESG) Updates
We continue to rank highly with leading ESG rating agencies. During the quarter, we expanded the Franco-Nevada Diversity
Scholarship program by awarding five new diversity scholarships to mining engineering students at Queens, University of
Toronto, UBC, and École Polytechnique. We also supported industry initiatives with a strategic partnership level funding to the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM).
3
Revised Concession Contract for the Cobre Panama Mine
As previously disclosed, on October 29, 2023, President Laurentino Cortizo announced the Panamanian government’s
intention to hold a popular consultation regarding Law 406 on December 17, 2023. Law 406, which approved the revised
mining concession contract for the Cobre Panama mine, was enacted into law in Panama on October 20, 2023.
During the week commencing October 30, 2023, the National Assembly of Panama held sessions concerning two bills that
included a popular consultation regarding Law 406, the repeal of Law 406 and a moratorium on the granting of new mining
concession contracts in Panama. Bill 1110 provided for a moratorium on the granting of new concession contracts related to
mining in Panama and was approved in the third debate on November 3, 2023. The proposed popular consultation and
repeal of Law 406 were not ultimately approved, and the Company understands that no further debates on these issues are
currently scheduled. As of the date of this release, Law 406 and the revised concession contract are still in effect. A number
of lawsuits challenging the constitutionality of Law 406 have, however, been submitted to the Supreme Court of Justice, a
number of which have been admitted for adjudication. We continue to closely monitor the unfolding situation regarding Law
406 and the revised concession contract and are assessing our available protections.
Production at the Cobre Panama mine remains uninterrupted at this time, however, protests, including blockades of key
roads, have caused disruptions on site as well as shortages in certain supplies.
Portfolio Additions
• Acquisition of Additional Royalty on Magino Gold Mine – Ontario, Canada: Subsequent to quarter-end, on November
2, 2023, we agreed to acquire an additional 1.0% NSR on Argonaut’s Magino gold mine in Ontario and a portfolio
comprised of Argonaut’s existing royalty holdings in Canada and Mexico, for an aggregate purchase price of
approximately $29.5 million, with closing of such transactions subject to satisfaction of closing conditions. Inclusive
of our initial 2.0% NSR, we will hold an aggregate 3.0% NSR on Magino.
• Acquisition of Royalty on Wawa Gold Project – Ontario, Canada: On August 29, 2023, we acquired a 1.5% NSR on
Red Pine Exploration Inc.’s Wawa gold project, located in Ontario, Canada, for a purchase price of $5.0 million (C$6.8
million). The agreement provides Franco-Nevada the option to acquire an additional 0.5% NSR based on pre-
determined conditions.
• Acquisition of Royalties on Pascua-Lama Project – Chile: As previously announced, on August 8, 2023, we agreed to
acquire a sliding-scale gold royalty and fixed-rate copper royalty from private individuals pertaining to the Chilean
portion of Barrick’s Pascua-Lama project for a purchase price of $75.0 million. At gold prices exceeding $800/ounce,
we will hold a 2.70% NSR (gold) and 0.54% NSR (copper) on the property.
• Acquisition of Royalty on Volcan Gold Project – Chile: As previously announced, on July 6, 2023, we agreed to acquire
a 1.5% NSR on the Volcan gold project located in Chile for a purchase price of $15.0 million. The project is owned by
Tiernan Gold Corporation, a company privately held by Hochschild Mining plc. The NSR covers the entire land
package comprising the Volcan project, as well as a surrounding area of interest extending 1.5 kilometers. We
already hold an existing 1.5% NSR on the peripheral Ojo de Agua area, which is owned by Tiernan and forms part of
the Volcan project.
Q3 2023 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets were 125,337, compared to 120,542 GEOs in Q3 2022,
driven by strong contributions from Cobre Panama, Guadalupe-Palmarejo and MWS.
South America:
• Antapaccay (gold and silver stream) – GEOs delivered and sold were slightly higher in Q3 2023 compared to Q3
2022. Production at Antapaccay during the period benefited from higher copper grades and recoveries based on
mine sequencing.
• Candelaria (gold and silver stream) – GEOs delivered and sold in the quarter were relatively consistent with Q3
2022. Lundin Mining announced that its environmental impact assessment for the extension of operations and
mine life from 2030 to 2040 was approved by the regional Chilean authorities. This would also allow for the
potential development of the Candelaria Underground Expansion Project.
• Antamina (22.5% silver stream) – GEOs delivered and sold were lower in Q3 2023 compared to Q3 2022,
reflecting an anticipated decrease in average silver grades based on the life of mine plan . Production at the mine
was also impacted by Cyclone Yaku which constrained logistics in March and April 2023. This was reflected in the
deliveries we received in Q3 2023.
• Tocantinzinho (gold stream) – G Mining Ventures reported the physical construction of the Tocantinzinho project
was 52% complete as of the end of September 2023 and remains on track for commercial production in H2 2024.
In Q3 2023, we disbursed an additional $66.2 million under our stream agreement and have now fully funded our
$250.0 million stream deposit.
4
• Salares Norte (1-2% royalty) – Gold Fields reported that total project completion was 96% as of the end of August
2023. While first production is anticipated in December 2023, we do not expect meaningful royalty payments to
Franco-Nevada until 2024.
Central America & Mexico:
• Cobre Panama (gold and silver stream) – GEOs delivered and sold in the quarter were significantly higher than in
Q3 2022, driven by higher average copper grades and the continued ramp-up of the CP100 Expansion project.
First Quantum reported that a new quarterly record for copper production at Cobre Panama was achieved in Q3
2023.
• Guadalupe-Palmarejo (50% gold stream) – GEOs sold from Guadalupe-Palmarejo increased in Q3 2023 compared
to the same quarter in 2022. Production at the Palmarejo mine benefited from higher average grades.
U.S.:
• Stillwater (5% royalty) – Production of PGMs at the mine increased compared to Q3 2022, but continued to be
impacted by a shortage of critical skills and geotechnical challenges. Sibanye-Stillwater reported that operations
resumed planned mine production run rate in October 2023, driving improved outlook for production for Q4 2023.
The decrease in GEOs also reflects a lower PGM to gold GEO conversion ratio.
• Goldstrike (2-6% royalties) – GEOs from our Goldstrike royalties decreased in Q3 2023 compared to Q3 2022 as a
lesser proportion of the ore processed at Goldstrike was sourced from our royalty ground.
• Marigold (0.5-5% royalties) – Production at Marigold was higher in Q3 2023 compared to Q3 2022 as a result of
mine sequencing. In addition, our GEOs earned were higher than in the prior year period primarily due to mining
occurring on ground with a higher royalty rate.
• Copper World Project (2.085% royalty) – Hudbay provided an updated pre-feasibility study for the Copper World
project. The study outlined an extended 20-year mine life for Phase I, where only state and local permits are
required, lower initial capital expenditures, and a higher mill feed grade than was previously contemplated.
Canada:
• Detour Lake (2% royalty) – Agnico Eagle reported that production during the quarter was impacted by unscheduled
mill downtime in August 2023 due to a temporary transformer issue powering the SAG mill. The mill returned to
normal operating levels in September 2023. Mill optimization initiatives continued through the quarter with the
objective of continuing to increase throughput to 28.0 million tonnes per annum by 2025 and is targeting
production of 1 million ounces per year.
• Kirkland Lake (1.5-5.5% royalty & 20% NPI) – Agnico Eagle reported that the Macassa mill is expected to reach full
capacity of 1,650 tonnes per day by mid-2024, driven by the Shaft # 4 commissioning and increased productivity
from the Macassa deep mine. Exploration drilling during the quarter targeted the Lower/West South Mine Complex
(“SMC”), SMC East and Main Break. Production from the AK deposit is also expected to begin in H2 2024.
• Canadian Malartic (1.5% royalty) – Agnico Eagle reported that production via the ramp at the Odyssey South
deposit increased through the quarter, with underground development and surface activities at the Odyssey project
progressing well and shaft pre-sinking activities advancing. Drilling activities were focused on infilling the internal
zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and
west.
• Magino (2% royalty) – Magino poured first gold in June 2023 and achieved commercial production on November 1,
2023, with the plant largely operating at nameplate capacity despite 20 days of unplanned downtime in
September 2023. Franco-Nevada earned 230 GEOs from its royalty in Q3 2023.
• Island Gold (0.62% royalty) – Alamos Gold reported that the Phase 3+ Expansion is progressing well with
construction of the headframe largely complete and shaft sinking on track to begin by the end of the year. The
Phase 3+ Expansion is expected to more than double gold production to an average of 287,000 ounces per year
starting in 2026.
• Greenstone (3% royalty) – Equinox Gold reported that construction of the project is on schedule and budget, with
construction 92% complete as of the end of September 2023 and first gold pour expected in H1 2024.
• Valentine Gold (3% royalty) – Marathon reported that overall project completion was 50% as at the end of
September 2023 and that the project remains on schedule for first gold production in Q1 2025. Marathon also
reported that the Berry Expansion was released from the provincial environmental assessment process and that it
did not require a new federal impact assessment. Marathon now anticipates the Berry deposit being fully permitted
earlier than had previously been anticipated.
• Wawa (1.5% royalty) – Red Pine continues to report success expanding mineralization within, and in the footwall
of, the Jubilee shear zone at its Wawa project. Highlights of the assay results include 8.01 g/t gold over 32.95
meters at the intersection of the Minto B/Jubilee Shears.
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Rest of World:
• Tasiast (2% royalty) – In October 2023, Kinross indicated that its Tasiast 24k expansion project was progressing as
planned, with mill modifications complete and throughput of 24,000 tonnes per day being achieved for sustained
periods of time. Kinross also indicated it was evaluating underground potential to supplement low-grade stockpile
ore with high-grade underground ore once open-pit mining ceases.
• Subika (Ahafo) (2% royalty) – Newmont reported that mill throughput at Ahafo has been reduced to approximately
80 percent of its full capacity since October 2023 in order to replace a mill girth gear. Processing rates are
expected to return to full levels in Q2 2024 once the gear has been replaced.
• Séguéla (1.2% royalty) – Séguéla poured first gold in May 2023. Fortuna Silver Mines reported that throughput
exceeded nameplate capacity in Q3 2023 and production for H2 2023 was expected to be between 60,000 to
75,000 gold ounces. Fortuna Silver Mines also indicated that the Sunbird deposit will be incorporated into an
updated Mineral Resource and Mineral Reserve estimate to be released in Q4 2023. The Sunbird deposit has an
Indicated Mineral Resource of 279,000 gold ounces (3.3 million tonnes grading at 2.66 g/t) and an Inferred
Mineral Resource of 506,000 gold ounces (4.2 million tonnes grading at 3.73 g/t).
• Yandal (Bronzewing) (2% royalty) – Northern Star Resources reported the Thunderbox mill continued to ramp-up
towards its 6 million tonnes per annum nameplate capacity, achieving 501,000 tonnes milled in August 2023.
Mining continued at the Orelia open pit mine, where the ore will be used as feed for the expanded Thunderbox mill.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $68.7 million in
revenue, down from $97.5 million in Q3 2022. The decrease is primarily due to lower oil and gas prices compared to the
relative highs of the prior year period.
Iron Ore & Other Mining:
• Vale Royalty (iron ore royalty) – Revenue from the Vale royalty increased compared to Q3 2022, reflecting higher
estimated iron ore prices than in the prior year quarter.
• LIORC – Revenue from our attributable interest in LIORC was relatively consistent with Q3 2022. Rio Tinto reported
that operations at Iron Ore Company of Canada were impacted by extended plant downtime and a conveyor belt
failure in Q3 2023, while also recovering from wildfires which took place in Northern Quebec in Q2 2023 .
• Caserones (0.57% effective NSR) – Lundin Mining, which now owns a 51% majority interest in the mine, reported
that it had launched one of the largest exploration programs at the mine since it began operation in 2013. The
initial phase of the drilling program is expected to be over 10,000 meters and results are expected in H1 2024.
• Crawford Nickel (2% royalty) – Canada Nickel Company announced a feasibility study for its Crawford Nickel
Sulphide project. The feasibility study outlined 3.8 million tonnes of contained nickel (1.7 billion tonnes of ore
grading 0.22% nickel) in Proven & Probable Mineral Reserves.
Energy:
• U.S. (various royalty rates) – Revenue from our U.S. Energy interests decreased compared to Q3 2022, largely due
to lower realized oil and gas prices. Partly offsetting the impact of lower prices, we received approximately $1.3
million in lease bonus revenue in relation to our Haynesville interests. We also benefited from higher production at
our Permian assets due to the completion of new wells.
• Canada (various royalty rates) – Revenue from our Canadian Energy interests was relatively consistent with Q3
2022. For our Weyburn NRI, the impact of lower prices was partly offset by lower operating and capital
expenditures incurred at the Weyburn Unit.
6
Dividend Declaration
Franco-Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of US$0.34 per share.
The dividend will be paid on December 21, 2023, to shareholders of record on December 7, 2023 (the “Record Date”).
The dividend has been declared in U.S. dollars and the Canadian dollar equivalent will be determined based on the daily
average rate posted by the Bank of Canada on the Record Date. Under Canadian tax legislation, Canadian resident
individuals who receive “eligible dividends” are entitled to an enhanced gross-up and dividend tax credit on such
dividends.
The Company has a Dividend Reinvestment Plan (the “DRIP”) which allows shareholders of Franco -Nevada to reinvest
dividends to purchase additional common shares at the Average Market Price, as defined in the DRIP, subject to a
discount from the Average Market Price in the case of treasury acquisitions. Pursuant to the terms of the DRIP, the
Company has changed the discount applicable to the Average Market Price from 3% to 1%, effective from the dividend
payable on March 30, 2023. The Company may, from time to time, in its discretion, further change or eliminate the
discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at
the prevailing market price, any of which would be publicly announced. Particip ation in the DRIP is optional. The DRIP and
enrollment forms are available on the Company’s website at www.franco-nevada.com. Canadian and U.S. registered
shareholders may also enroll in the DRIP online through the plan agent’s self -service web portal at
www.investorcentre.com/franco-nevada. Canadian and U.S. beneficial shareholders should contact their financial
intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP,
subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the Company to
determine whether they satisfy the necessary conditions to participate in the DRIP .
This press release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the
DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company’s profile
on the U.S. Securities and Exchange Commission’s website at www.sec.gov.
Shareholder Information
The complete unaudited Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis
can be found on our website at www.franco-nevada.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov.
We will host a conference call to review our Q3 2023 results. Interested investors are invited to participate as follows:
Conference Call and Webcast: November 9th 8:00 am ET
Dial-in Numbers: Toll-Free: 1-888-390-0546
International: 416-764-8688
Conference Call URL (This allows participants to join
the conference call by phone without operator assistance.
Participants will receive an automated call back after
entering their name and phone number):
https://bit.ly/3Y3uYt8
Webcast: www.franco-nevada.com
Replay (available until November 16th): Toll-Free: 1-888-390-0541
International: 416-764-8677
Passcode: 208501 #
Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified
portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while
limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay
dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco -Nevada is the gold
investment that works.
For more information, please go to our website at www.franco -nevada.com or contact:
Sandip Rana
Chief Financial Officer
(416) 306-6303
7
Forward-Looking Statements
This press release 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 operations, estimated
future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resource and
mineral reserve estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining
sequences, business prospects and opportunities, the performance and plans of third party operators, audits being conducted by the CRA, the
expected exposure for current and future assessments and available remedies, statements with respect to Law 406, the law that approved the
revised concession contract for the Cobre Panama mine, including, but not limited to constitutional challenges, popular consultations or any
Government of Panama bills relating to Law 406, and statements relating to the continued operation of and protests impacting the Cobre Panama
mine. In addition, statements relating to resources and reserves, gold equivalent ounces (“GEOs”) and mine life are forward-looking statements, as
they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and
assumptions are accurate and that such resources and reserves, GEOs or mine life will be realized. Such forward-looking statements reflect
management’s current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements
can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “potential for”, “scheduled”, “estimates”, “forecasts”,
“predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases
or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results,
performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or
implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking
statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum
group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican
peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation,
including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on
corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty,
stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a
royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties;
influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to
debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a
royalty, stream or other interest; whether or not the Company is determined to have “passive foreign investment company” (“PFIC”) status as
defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of
offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the
properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ
from the resources and reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical
reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-
Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope
failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of
COVID-19 (coronavirus); and the integration of acquired assets. The forward-looking statements contained in this press release are based upon
assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada
holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of
public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price
of the commodities that underlie the asset portfolio; the Company’s ongoing income and assets relating to determination of its PFIC status; no
material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment
and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a
royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in
production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those
anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking
statements are not guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or
the Company’s exposure as a result thereof. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-
looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada’s most recent Annual Information
Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada’s most recent Annual Report filed on
Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date of this press release only and Franco-
Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or
otherwise, except as required by applicable law.
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ENDNOTES:
1 GEOs: GEOs include Franco-Nevada’s attributable share of production from our Mining and Energy assets after
applicable recovery and payability factors. GEOs are estimated on a gross basis for NSRs and, in the case of stream
ounces, before the payment of the per ounce contractual price paid by the Company. For NPI royalties, GEOs are
calculated taking into account the NPI economics. Silver, platinum, palladium, iron ore, oil, gas and other commodities
are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold
price. The price used in the computation of GEOs earned from a particular asset varies depending on the royalty or
stream agreement, which may make reference to the market price realized by the operator, o r the average price for the
month, quarter, or year in which the commodity was produced or sold. For Q3 2023, the average commodity prices were
as follows: $1,929/oz gold (Q3 2022 - $1,728), $23.57/oz silver (Q3 2022 - $19.22), $931/oz platinum (Q3 2022 -
$886) and $1,251/oz palladium (Q3 2022 - $2,074), $113/t Fe 62% CFR China (Q3 2022 - $105), $82.26/bbl WTI oil
(Q3 2022 - $91.56) and $2.66/mcf Henry Hub natural gas (Q3 2022 - $7.91). For YTD 2023 prices, the average
commodity prices were as follows: $1,932/oz gold (YTD 2022 - $1,825), $23.44/oz silver (YTD 2022 - $21.94),
$985/oz platinum (YTD 2022 - $958) and $1,422/oz palladium (YTD 2022 - $2,163), $116/t Fe 62% CFR China (YTD
2022 - $129), $77.39/bbl WTI oil (YTD 2022 - $98.09) and $2.58/mcf Henry Hub natural gas (YTD 2022 - $6.65).
2 NON-GAAP FINANCIAL MEASURES: Adjusted Net Income and Adjusted Net Income per share, Adjusted EBITDA and
Adjusted EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial measures with no standardized
meaning under International Financial Reporting Standards (“IFRS”) and might not be comparable to similar financial
measures disclosed by other issuers. For a quantitative reconciliation of each non-GAAP financial measure to the most
directly comparable IFRS financial measure, refer to the following tables. Further information relating to these Non-GAAP
financial measures is incorporated by reference from the “Non-GAAP Financial Measures” section of Franco-Nevada’s
MD&A for the three and nine months ended September 30, 2023 dated November 8, 2023 filed with the Canadian
securities regulatory authorities on SEDAR+ available at www.sedarplus.com and with the U.S. Securities and Exchange
Commission available on EDGAR at www.sec.gov.
• Adjusted Net Income and Adjusted Net Income per share are non-GAAP financial measures, which exclude the
following from net income and earnings per share (“EPS”): impairment charges and reversal related to royalty,
stream and working interests and investments; gains/losses on the sale of royalty, stream and w orking interests
and investments; foreign exchange gains/losses and other income/expenses; unusual non -recurring items; and
the impact of income taxes on these items.
• Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial measures, which exclude the following
from net income and EPS: income tax expense/recovery; finance expenses and finance income; depletion and
depreciation; non-cash costs of sales; impairment charges and reversals related to royalty, stream and working
interests and investments; gains/losses on the sale of royalty, stream and working interests and investments;
foreign exchange gains/losses and other income/expenses; and unusual non-recurring items.
• Adjusted EBITDA Margin is a non-GAAP financial measure which is defined by the Company as Adjusted EBITDA
divided by revenue.