- Franco-Nevada Announces Election of Directors
May 13, 2026 · prnewswire.com
TORONTO, May 13, 2026 /PRNewswire/ - Franco-Nevada Corporation announced that the nominees listed in the management proxy circular for the 2026 Annual and Special Meeting of Shareholders were elected as directors of the Corporation. Detailed results of the vote for the election of directors held at the Annual Meeting yesterday in person and by webcast are set out below.
- FRANCO-NEVADA ANNOUNCES ELECTION OF DIRECTORS
May 13, 2026
TORONTO, MAY 13, 2026 /PRNEWSWIRE/ - FRANCO-NEVADA CORPORATION ANNOUNCED THAT THE NOMINEES LISTED IN THE MANAGEMENT PROXY CIRCULAR FOR THE 2026 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS WERE ELECTED AS DIRECTORS OF THE CORPORATION. DETAILED RESULTS OF THE VOTE FOR THE ELECTION OF DIRECTORS HELD AT THE ANNUAL MEETING YESTERDAY IN PERSON AND BY WEBCAST ARE SET OUT BELOW.
- Franco-Nevada Q1 Earnings Call Highlights
May 13, 2026 · marketbeat.com
Franco-Nevada NYSE: FNV reported record first-quarter 2026 financial results, with management citing higher precious metals prices, recent acquisitions and strong contributions from several key assets as the main drivers of performance.
- FNV Q1 Earnings Beat Estimates on Record Revenues, Higher Prices
May 13, 2026
Franco-Nevada Corporation FNV reported adjusted earnings of $2.38 per share for the first quarter of 2026, beating the Zacks Consensus Estimate of $2.09 by 13.9%. Earnings jumped 122.4% from $1.07 a year ago, supported by higher commodity prices and contributions from recently added assets.
Revenues were a record $650.7 million, up 76.6% year over year. Operationally, Franco-Nevada sold 136,353 gold-equivalent ounces, an 8% increase, reflecting strength across precious metals and diversified interests.
Franco-Nevada Corporation Price, Consensus and EPS Surprise
Franco-Nevada Corporation price-consensus-eps-surprise-chart | Franco-Nevada Corporation Quote
FNV's Revenue Mix Tilts to Precious Metals
Precious Metal assets remained the engine of Franco-Nevada’s quarter, accounting for $568.1 million of revenues from royalty, stream and working interests. Gold contributed $436.9 million, while silver added $113.5 million and platinum group metals generated $17.7 million.
Diversified assets produced $82.6 million of revenues. Within that bucket, iron ore contributed $17.1 million and energy assets added a meaningful cash flow, led by oil at $33.5 million and gas at $20.6 million, with natural gas liquids contributing $5.3 million.
Franco-Nevada's Q1 Profit Metrics Expand Sharply
FNV translated the revenue strength into higher profitability, with adjusted EBITDA of $591.9 million, up 83.9% from the year-ago period. The adjusted EBITDA margin expanded to 91% from 87.4%, helped by the company’s royalty and streaming structure, and the benefit of higher realized prices.
Net income climbed 123% year over year to $468.6 million. Costs of sales came in at $124 million compared with $107 million in the prior-year quarter.
FNV's Cash Flow Stays Robust, Balance Sheet Strong
The operating cash flow rose 80% to $520.4 million from the prior-year quarter. The quarter included a $49.5-million refund tied to a Canada Revenue Agency settlement, which added to cash generation alongside higher receipts from royalty and stream interests.
Franco-Nevada ended March 31, 2026, with $714.7 million in cash and cash equivalents, up from $670.9 million at the end of 2025. Available capital totaled $3.4 billion, reflecting cash, equity investments and unused capacity on its revolving credit facilities, giving the company flexibility to pursue additional deals.
Franco-Nevada Maintains 2026 GEO Outlook
FNV reiterated its 2026 GEO sales guidance of 510,000-570,000 ounces, which excludes any potential contributions from Cobre Panamá. Following Panama’s authorization to process and export stockpiled ore, First Quantum Minerals Ltd. FQVLF estimates Cobre Panamá to produce 30,000-40,000 tons of copper in 2026. First Quantum Minerals anticipates additional processing in 2027 from the mine. Franco-Nevada expects stream deliveries to start in the third quarter of 2026, with most deliveries anticipated in 2027.
Story Continues
FNV Stock’s Price Performance
The company’s shares have soared 51.1% in the past year compared with the industry’s growth of a whopping 102.6%. During this time, the Basic Materials sector has jumped 51.9%, whereas the S&P 500 has grown 32.3%.Zacks Investment Research
Image Source: Zacks Investment Research
Franco-Nevada’s Zacks Rank
FNV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Mining Stocks in Q1
Kinross Gold Corporation KGC registered adjusted earnings of 71 cents per share in the first quarter of 2026, up from the prior-year quarter’s earnings of 30 cents. The bottom line beat the Zacks Consensus Estimate of 68 cents. Kinross Gold’s revenues surged roughly 61% year over year to $2.41 billion in the first quarter. The figure beat the Zacks Consensus Estimate of $2.17 billion. The rise is attributed to higher average realized gold prices.
Agnico Eagle Mines Limited’s AEM earnings were $3.40 per share in first-quarter 2026, rising from $1.53 a year ago and beating the Zacks Consensus Estimate of $3.19. Agnico Eagle Mines generated revenues of $4.09 billion, up 66.1% year over year. The top line surpassed the Zacks Consensus Estimate of $3.84 billion.
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Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
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First Quantum Minerals Ltd. (FQVLF) : Free Stock Analysis Report
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- Franco-Nevada Corporation (FNV:CA) Q1 2026 Earnings Call Transcript
May 13, 2026 · seekingalpha.com
Franco-Nevada Corporation (FNV:CA) Q1 2026 Earnings Call Transcript
- Transcript: Franco-Nevada Q1 2026 Earnings Conference Call
May 13, 2026
Franco-Nevada (NYSE:FNV) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call.
This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.
View the webcast at https://app.webinar.net/6ZxMw37wnb0
Summary
Franco-Nevada Corp reported record financial results for Q1 2026, with significant increases in revenue, operating cash flow, adjusted EBITDA, and net income driven by high commodity prices and recent acquisitions.
The company completed four new acquisitions, expanding its portfolio with assets in attractive mining jurisdictions, and highlighted progress in sustainability initiatives, receiving an MSCI ESG rating upgrade to AAA.
Future outlook is positive with expectations of continued strong performance due to high commodity prices, particularly in precious metals, and a robust pipeline of business development opportunities supported by $3.4 billion in available capital.
Full Transcript
OPERATOR
Good morning and welcome to Franco-Nevada Corp's first quarter 2026 results, conference call and webcast. This call is being recorded on May 13, 2026. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a Q and A session where you may ask a question through the phone line or webcast. If you're joining by webcast, you may submit a reading question for the Q and A session at any time during this call by typing your question in the Q and A section of the webcast platform. If you require immediate assistance during this call, please press star zero at any time for the operator. I would now like to turn the conference over to your host, Bonavie Tech VP Finance and Investor Relations. Please go ahead.
Vincent
Thank you. Vincent Good morning everyone. Thank you for joining us today to discuss Franco-Nevada Corp's first quarter 2026 results. Accompanying this call is a presentation which is available on our website at franco-nevada.com 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 followed by Sandeep Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q and A period. Our 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 commentaries may contain forward looking information. We refer you to a detailed cautionary Note on slide 2 of this presentation. I will now turn the call over to Paul Brink, President and CEO of Franco Nevada.
Story Continues
Paul Brink (President and CEO)
Thank you Bonavie. Good day everyone. At yesterday's agm, David Harkwell gave his last address as Chair before taking on the title of Chair Emeritus. As shareholders, we're all tremendously grateful to David for the incredible value he's created over 18 years at Franco-Nevada Corp. On behalf of the Board and the management team, I'd like to thank David for his vision, his leadership and his entrepreneurial drive that's created the success that we've all shared in. We're delighted to have Tom Albanese, who was most recently Lead Independent Director of Franco Nevada, take on the Chair role. Many of you are already familiar with Tom from his prior CEO roles at both Rio Tinto PLC and Verdanta Resources and many other corporate directive positions, his depth of experience and his intimate knowledge of Franco Nevada from his many years of prior service on the board. Turning to the first quarter, we once again realized record financial results, record revenue, operating cash flow, adjusted EBITDA and net income driven by higher commodity prices and contributions from recent acquisitions. During the quarter we also had a gain from partial buyback of our Cascade Bell stream as it moved into the hands of Jiangxi Copper, a party we believe is very capable of building and operating a large scale mine while prices have traded 70 80% higher since the US attack on Iran at the end of February. While not much of the higher prices accrued to Q1, it bodes well for our Q2 results and potentially through the rest of the year. Franco Nevada is unique as a mining equity. Not only is our royalty and streaming model largely insulated from the effect of energy prices and cost inflation, but at current prices oil and liquids can contribute meaningfully to our revenue mix. Q1 26 was one of our most successful quarters, growing our business with four new acquisitions, a gold stream with orzone on Casa Berardi, royalty financings for I80 Gold in Nevada and Minerals260 in Western Australia and purchase of a third party royalty on Banyans or Mac.
Paul Brink (President and CEO)
All assets were able to secure attractive resource optionality in good mining jurisdictions. We saw encouraging progress at Cobra Panama. The quarter saw coal shipments received for the both power plant units restarted and power supplied to the grid. The Government of Panama then proceeded to approve the processing of stockpiles. This was an important step as it allows the company to restart the mills which has the immediate positive benefit of increasing employment in the Audit the environmental audit carried out by SGS Global is ongoing with five interim reports having been published without any material deficiencies identified. The final report is due in Q2 of this year. On the sustainability front, we're expanding the reach of our diversity scholarships for college or trade school programs. In collaboration with young mining professionals, we continue to grow our community initiatives, renewed our support for Encena Peru's education initiatives in Peru and also funded an education initiative with i80 Gold in Nevada. Last week we published our annual Sustainability Report which outlines our accomplishments in 2025 and our commitments to further our sustainability related leadership.
Paul Brink (President and CEO)
The report is available on our website. Our efforts are recognized by the major ESG rating agencies. In particular, during the quarter we received an upgrade of our MSCI ESG rating from AA to AAA, placing us in the top tier amongst mining and precious metal players. Along with the Sustainability Report, we launched our annual Asset Handbook which details first and foremost 121 cash flow producing assets, the largest and most diversified portfolio of cash flow producing streams and royalties that exist included in the report is an asset by asset Mine Life detail both operators, current mine plans and potential mine life based on Measured and Indicated
Paul Brink (President and CEO)
(M&I) royalty ounces in aggregate for our mining portfolio. At current production rates, Measured and Indicated (M&I) resources would support 34 years of mining and inferred resources a further 12 years. The report also profiles our development projects and our higher potential exploration projects. One stat that to me highlights the optionality of the portfolio is the total value of the ounces underpinning the value of the company in all categories. Ounces that are 100% attributable to Franco have a value of 124 billion at current gold prices. That's just shy of triple our current market cap. To finish, we currently have 3.4 billion in available capital and a robust pipeline of business development opportunities. With that, I'll hand the call to Sandy.
Sandeep Rana (Chief Financial Officer)
Thanks Paul Good morning everyone. As Paul mentioned, Franco-Nevada Corp reported record financial results for first quarter March 31, 2026. Our portfolio of royalty and stream assets continue to perform well, with both the precious metals and diversified segments having a strong quarter. On slide 4, you'll see a summary of commodity prices for first quarter 2026 and 2025. Gold and silver prices increased significantly year over year with the average gold price higher by 70% in the quarter.
Sandeep Rana (Chief Financial Officer)
The two strongest performers year over year were silver and platinum, each up 165% and 128% respectively. The strong silver price performance benefited our silver assets and in particular Antamina, where we had a significant increase in revenue compared to prior year. This was both due to the increase in the silver price, but also significantly higher silver deliveries during the quarter. For the diversified commodities, most remained fairly flat year over year. However, with the conflict in the Middle east, the oil price has seen a sharp increase over the last two months. Current WTI prices have been hovering around $100 per barrel. This will positively impact our energy revenue for Q2. An increase of $10 relative to our assumed WTI price of $70 per barrel used in our guidance would be expected to increase our oil revenue by approximately 12%. The strong performance of our assets combined with record gold and silver prices resulted in record financial results for the quarter.
Sandeep Rana (Chief Financial Officer)
Revenue was higher by 77%, adjusted EBITDA 84% and adjusted net income 123%. Total GEOs sold for the quarter increased 8% to 136,353 compared to 126,585 in the prior year. Precious metal GEOs sold in the quarter were 117,980 higher by 17% compared to prior year. 55% of our total GEOs sold were sourced directly from mines where precious metals is the primary commodity. For the quarter we received strong contributions from a number of key assets and Tamina.
Sandeep Rana (Chief Financial Officer)
As mentioned, we benefited from both higher deliveries and also benefited from the higher silver price resulting in an increase in revenue from 21.3 million last year to 82.3 million this quarter. At South Otoro we had a 322% increase in GEOs as we benefited from the phase one production of the open pit. Please note that the strong performance is weighted to the first half of this year. For Hemlo we had an adjustment of $10 million Canadian related to 2025 that flowed through Q1 2026.
Sandeep Rana (Chief Financial Officer)
As you know with the Hemlo MPI it's difficult to forecast as it depends on a number of factors including how much mining is performed on Franco's interlaced lands along with how much is being spent on operating and capital costs. And finally we're benefiting from asset acquisitions made last year in particular Cote and Porcupine which together contributed approximately 6,500 GEOs or $31.5 million in revenue during the quarter. Diversified GEOs sold were 18,373 for the quarter compared to 25,962 for prior year.
Sandeep Rana (Chief Financial Officer)
Despite diversified revenue actually being higher year over year at 82.6 million versus 74.8 million. The decrease in GEOs is due to the impact of the conversion of revenue to GEOs. As you know we are now converting to GEOs using a fixed gold price of 4500 per ounce. As you can see on the chart on slide 5, total revenue increased by 77% for the quarter to 650.7 million. A record. Precious metals accounted for 85% of revenue adjusted. EBITDA also a record was 84% higher at 591.9 million.
Sandeep Rana (Chief Financial Officer)
With respect to costs, we did have an increase in cost of sales compared to prior year due to higher fixed costs paid for stream ounces as a portion of our streams have a fixed cost based on a percentage of the gold price. Cost of sales was 46.5 million versus 38.5 million last year. Depletion increased to 77.9 million versus 68.4 million a year ago. The increase is due to depletion being recorded on some of our recent transactions Yanacocha, Western Limb, porcupine and Cote. These assets are higher per ounce depletion assets we Expect the depletion rate to decrease over time as the reserves on the properties grow. And finally, adjusted net income was 458.3 million or $2.38 per share for the quarter, higher by 123% and 122% respectively. As Paul mentioned, we did record a gain of 63.8 million which is included in net income for the partial buyback of the Cascaval royalty and stream. 50% of the royalty was bought back for proceeds of 97.5 million and 50% of the stream was bought back for net proceeds of 40.7 million.
Sandeep Rana (Chief Financial Officer)
The proceeds for the stream were delivered through approximately 10,000 gold ounces which remain in inventory at the end of the quarter. The cascpile buyback is not reflected in GEOS revenue or adjusted EBITDA. Slide 7 highlights the continued diversification of the portfolio. 87% of our revenue was generated by precious metals and being sourced 87% from the Americas. Slide 8 illustrates the strength of our business model to continue to generate high margins. As you can see, over the last number of quarters as the gold prices increased, our margin per GEO has remained fairly consistent. Our cash cost per Geo has increased from $304 in first quarter 2025 to 341 per GEO in first quarter 2026, a roughly 12% increase over the period. However, the margin has increased from 2,559 per GEO to 4,534 per GEO this quarter, a 77% increase while during this period the gold prices increased 70%. As we turn to dividends on slide 9, the company continues to pay a quarterly dividend with 84.4 million being paid to shareholders during the quarter.
Sandeep Rana (Chief Financial Officer)
We increased the dividend in January by 16% to $0.44 per share per quarter or $1.76 per share annualized. This was the 19th consecutive year we have increased the dividend and lastly, Slide 10 highlights our available capital as at March 31, 2026 the total available capital is 3.4 billion comprised of 715 million in cash, 1.5 billion with our credit facility including the accordion and 1.2 billion in liquid marketable securities. In addition, subsequent to quarter end our subsidiary Franco Nevada International entered into a separate credit facility for 500 million and an additional $250 million accordion. This adds additional financial flexibility for the company and with that I will pass it over to Vincent as management is happy to answer any questions.
OPERATOR
During this Q and A. If you'd like to ask a question, just simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, just press the star, then the number two. If you're joining us on the webcast, please submit your question through the Q and A section of the webcast platform. Your first question comes from George Ady from ubs. Please go ahead.
George Ady (Equity Analyst)
Yeah, good morning team. Thanks for the call. Can I start by asking about the deal pipeline? Recent deals such as the Orzone gold deal, the i80 gold sort of look like a backing more of mid tier developers. Is that a sort of pivot you're seeing in the market or is that sort of reading into a trend too much?
Paul Brink (President and CEO)
Hey George, it's Paul Brink speaking. Ian is unfortunately on the road this morning, so I'll take the question. It is a trend we've seen, but it's not the only trend. In this market with high gold prices, any operator is making fantastic cash flow. The great thing for us there is organic growth. But on the acquisition side for developers it's still very attractive to access our capital. And so there are a number of them that are working to get projects over the line. So I'm hopeful that there'll be more of that through the year. But also at these strong prices, as we've seen and it's the case with Casa Berati and Warzone, the bigger players are looking at the portfolio saying what are the smaller assets can they vend out? And in this environment they can get very good value for those assets. So that is a second theme that's ongoing and then the third is BHP and their sale of the stream interest in Anna Mena I think really opened the eyes of the market of the hidden value that's in a lot of these portfolios, even big portfolios that can be created through the sale of precious metal streams. So I think those are all themes that hopefully will play out through the year.
George Ady (Equity Analyst)
Right, so you guys think there could be more BHP antimina type streams, is that right?
Paul Brink (President and CEO)
Yeah, I think a number of the large players are looking at that and saying wow, you know what a great market reception BHP got. So I'm hopeful there will be more transactions.
George Ady (Equity Analyst)
Yep, no, that's clear, thank you. And maybe just one other on the operations. But Candelaria, can you remind us please on the step down timing next year and just the latest thoughts on the potential underground expansion to.
Sandeep Rana (Chief Financial Officer)
Sure, Sandeep here. So the step down will be in mid-2027. It'll drop down from 68% down to 40%. As for the underground expansion I don't believe Lundin has made the formal decision to move forward with that. They're still reviewing it, but if they do, we were expecting it towards the end of this decade.
OPERATOR
Your next question comes from Fahad Tariq from Jeffries. Please go ahead.
Fahad Tariq (Equity Analyst)
Hi, thanks for taking my question on Cobra Panama. Can you provide some color on whether there's any discussion around potentially changing the stream terms
Paul Brink (President and CEO)
here on COBRA Panama? All the discussions are first quantum with the government. We're not involved in any of discussions. The only interaction we have had with the government is obviously around our arbitration. Our overall position there is we're not operators, we're not on for operating risk. So we don't know what the outcome will be here. But I think it's unlikely that you'll see any material change.
Fahad Tariq (Equity Analyst)
Okay, great. And then just thinking about growth. Just any commentary on potential consolidation in the royalty streaming subsector? I mean there's a long list of junior royalty streaming companies that could be acquired. Just any thoughts on that versus looking at individual transactions? Thanks.
Paul Brink (President and CEO)
From time to time we run the numbers on the various royalty players but inevitably what we find is that there's better value in doing private transactions. Your royalty players typically traded at premium, so it's in terms of relative value. I think the most likely thing that we'd be doing is more private deals.
Fahad Tariq (Equity Analyst)
Okay, great. Thank you.
OPERATOR
Next question comes from the line of Cosmos Chu from cibc. Please go ahead.
Cosmos Chu (Equity Analyst)
Thanks. Paul Sandeep and team. Maybe my first question is on your portfolio of equity investments. As we've seen some of your in your peer group, they've started monetizing their own portfolio of equity investments. Maybe thinking that's a good time or to finance larger acquisitions. You're a little bit different. You continue to add to your portfolio. You added. And now Sandiba, as you mentioned, it's grown to $1.3 billion. So you know, I guess my question is could you maybe remind us of your philosophy and your strategy behind these holdings
Paul Brink (President and CEO)
and the, the two largest holdings that we have are, are with GMAN and with Discovery Silver Corp. And you know, overall our strategy with these companies is, has been find really good teams, find the best mine builders, mine operators in the industry and not just be transactional in providing them with the stream of royalty financing but position ourselves as a financial backer for the company and try and differentiate them with that financial strength with our endorsement. And that's worked tremendously well for those companies. So the first part of that is we see ourselves as supporting those companies for the long Term and see ourselves as participating in the equity or longer term, you know, that's it. We're in this to make money for shareholders. So at the right time we will take some money off the table. You know, when I think of both of those two plays with GMAN right now with the build of Oko, I think there's tremendous value that's going to be created as they bring their second mine into operation. Likewise with Discovery Silver Corp, the transaction they've been able to do securing Kid Creek allows them to hopefully almost double production output coming out of that asset as they reroute the ores through the Crate Creek mill over time and it opens up the incredible potential that they have at Dome and to start processing that ore through the Dome mill. So both plays, I think there's tremendous value that'll be created over the next one.
Cosmos Chu (Equity Analyst)
Great. I guess as a follow up, I did notice that you did not take an equity investment in Orzone. Maybe, maybe touch on that. And then you know, further on on Orzone, I saw that, you know, CASA variety, a lot of positive chatter out of Orzone drilling, extending mine life beyond two years. You know, they're talking about the gap between the west shaft and the east shaft just to confirm it would be a direct benefit to Franklin Nevada if any of those kind of materialize. And also just curious, you know, when you look at these deals, how much of this potential upside have you factored into original $100 billion investment?
Matt Beguman
Hey there. Yeah. So I think as far as the equity question, you know, that was just sort of the capital structure they were looking for at the time. That wasn't a large part of the capital need they needed. And so we just played our a little bit smaller role just on the stream and they had the other sources of funds from their other sources of capital. As far as the upside there, I think, you know, our view is there's extensive upside over time. Yeah, Patty's got a very extensive plan with the company to drill that out to make that connection and we will benefit from that. I mean I think as you've noted where fixed ounces for the first five years but thereafter a variable stream. And we think there's significant exploration upside over time. You know, particularly in the underground where Patti's going to be very actively looking to optimize that. So we're very optimistic for the, the growth there.
Cosmos Chu (Equity Analyst)
Great. Maybe one last question, Sandeep, as you mentioned, you know, there are some NPIs in your portfolio. One MPI is the muscle white MPI. And in your MDNA you mentioned that a lot of exploration potential, the Camp A near surface, you know, target, for example, you might now be, you know, part of a larger company given the deal that happened Equinox and oil and mining today. So I guess my question is, could you maybe remind us of the Mechanics behind how MPIs work? And for example, if Muscle White is able to bring Camp A something new into production, when could you start seeing some kind of contribution to Franco, Nevada?
Sandeep Rana (Chief Financial Officer)
Sure. Cosmos. So NPIs, they vary by contract. You know the one, it's not consistent. Sometime it's you recover 100% of your capital, other times it's based on the profit, based on accounting. So as I said, they're not consistent. But with respect to muscle weight, you know, our MPI covers the entire land package. But if they were to develop that, they would be able to deduct whatever capital is required. So that would be 100% deduction against it. So in terms of timing, depends on the quantum of what capital would be applied against it. So there would be a bit of a lag. But it all depends on how much is being spent. Yes, exactly.
Cosmos Chu (Equity Analyst)
So maybe one last question just quickly on Palmorejo, you know, the 50% Goldstream as you mentioned, core mining has actually done, you know, fairly well, very well in terms of increasing gold reserves, extending the mine life by five years. My understanding is that there's the Franklin concessions and there's land beyond the Franklin concessions. So based on your understanding, how much of this upside that they are talking about at this point in time falls within the Franklin concessions, shorter term and also long term as well.
Sandeep Rana (Chief Financial Officer)
So they've been drilling, so you're right. So our stream doesn't cover the entire land package. They have been drilling on Franco land, where the stream applies as well as non stream land. They've been successful on both. So based on the results of last year, they have been able to extend the mine life of Palmarijo, Guadalupe, where we do have our stream. So we don't know exactly at what point they will move completely off Franco land. But at this stage our stream at the guidance that we provided runs out to at least the end of this decade, early 2000-30s.
Cosmos Chu (Equity Analyst)
That's great to hear. Thanks again, Paul, Sandeep, Matt and Bonavit, those are the questions I have congrats on a very strong start to 2026.
Paul Brink (President and CEO)
Thanks Kosmos.
OPERATOR
Your next question comes from the line of Tanya Jakoskonik from Scotiabank, please go ahead.
Tanya Jakoskonik (Equity Analyst)
Great. Good morning everybody. Thank you for taking my questions. I'm going to start just back on the transaction opportunities. Thank you Paul, for giving us some sense of what is out there. I just want to flesh it out with again, what is the main size that you're seeing? And number two, are most of the opportunities in silver, gold or are you still looking for non precious metal transactions? And then are there big ones where you'd be open to syndication? So that's my first question.
Paul Brink (President and CEO)
Yeah, a couple of things in there, Tanya. In terms of deal sizes, there's a whole range in dealing with the project developers, it's that typical range, 200, 500 million. If there are some of the bigger players that do consider streams, those would be far, far bigger deals, but don't yet know what the scale of those could be. Terms of syndication, we're always open to syndication in terms of managing risk if the ticket size is too big and we feel that that will be the best balance in terms of exposure and risk, although nothing currently that we're contemplating on that front. And in terms of revenue mix, most of what we're looking at is precious metal. But as always we're open to diversification. And so there are a couple of diversified deals that are also in the pipeline.
Tanya Jakoskonik (Equity Analyst)
And Paul, when you say nothing is too big, like could you do a 4 billion on your own, would you be comfortable doing that?
Paul Brink (President and CEO)
You know Ken, we've got three and a half billion available capital so I think that is quite easily achievable. It's just a question of, you know, where is the asset, how much risk exposure, do you want a particular asset? That's the circumstance that we'd think about syndication. But if you're dealing with a great asset, great jurisdiction, you know, no need and plenty of capital.
Tanya Jakoskonik (Equity Analyst)
Okay, got it. And then for the non precious metals, what size would that be?
Paul Brink (President and CEO)
You know, there are a few things out there that some that are moderately sized, some that could be more meaningfully sized. Source range.
Tanya Jakoskonik (Equity Analyst)
Okay, moderately sized. Okay, so would I be thinking 200 to 500 million for those as well? Okay, thank you for that. I'm going to move over to Sandeep if I could. So you mentioned sandeep that there's 10,000 ounces that you are holding right now with the sale of the Cascavel. How should I be thinking of those 10,000 GEOs, am I thinking those are to be sold in Q2? Are you holding those for a while and if so, do they then come into the, you know, how are you going to handle it from a disclosure? Would you put those as ounces back into the, your GEO ounces if you sold them and reported them?
Sandeep Rana (Chief Financial Officer)
So Tanya, in terms of, you know, when we sell them, they're in inventory right now, they'll probably be sold throughout the rest of the year. It just depends on, you know, our gold trading strategy at the time. But when they are sold, they will not go through GEOs, they will not go through revenue. They'll be treated as we treat the royalty gold ounces that we sell where we book a gain or loss on the sale. So they'll flow through outside of revenue on that line item on the income statement.
Tanya Jakoskonik (Equity Analyst)
Okay, so I should just think over the year the 10,000 ounces will be gone. And then just as I think about your, you know, you've had a good quarter, how should I be thinking about the rest of the, of the year as it develops in terms of, you know, is it, you know, back end weighted? I did, you did give guidance that, you know, stronger Q2 with the higher oil price, how should I be thinking about the rest of the portfolio?
Sandeep Rana (Chief Financial Officer)
So you know, overall the following quarters will be stronger, just especially as Paul also mentioned, if the energy prices stay where they are. Because now that we are dividing by a fixed gold price of 4,500, as energy revenue increases, it'll lead to additional GEOs. So from a top line metric, it should be stronger as the year progresses. In terms of specific assets in Q1, we didn't have any deliveries from Con desoblo Casa Berardi. You'll start to see those come in. You're going to see cocaine ramp up as the year goes on as well. So you know, I don't have specifics quarter by quarter, but the, the rest of the year will be stronger than Q1.
Tanya Jakoskonik (Equity Analyst)
Okay. And as I think about it, as things are ramping up, would it be quarter over quarter sequential increases?
Sandeep Rana (Chief Financial Officer)
I think you should, I think you should see a stronger Q2 and then probably, probably pretty consistent. As for the remaining quarters, similar to Q2.
Tanya Jakoskonik (Equity Analyst)
Okay, all right, got it. So it's hard to forecast these.
Sandeep Rana (Chief Financial Officer)
We have so many, yeah, we have so many assets, right Tanya, that you know, one quarter, one can slightly underperform while another one outperforms. So it's hard to really go quarter by quarter.
Tanya Jakoskonik (Equity Analyst)
Yeah, no, I appreciate that. And then, you know, just. Sandy, on the increase in Barbados, when was the last time that you increased your credit facility in your Barbados division?
Sandeep Rana (Chief Financial Officer)
So we implemented a credit facility in 2018 for a few years. It was a smaller in size. It was $100 million at the time. And I believe it expired in 2021 and we didn't renew it. Now we just, we looked at, you know, our available capital. We always looked for financial flexibility. And the banks were very forthcoming with very good terms. And we thought it was a good opportunity to add some additional financial flexibility and additional tool for us. So we put in a $500 million credit facility.
Tanya Jakoskonik (Equity Analyst)
500 with the 200 million accordion. So you have 750 in Barbados and 1.5.
Sandeep Rana (Chief Financial Officer)
Yeah. And 1.5 at the parent level. So 2.25 in total.
Tanya Jakoskonik (Equity Analyst)
Okay. All right, we'll watch. Stay tuned. Thank you very much for answering my questions and taking my questions.
Paul Brink (President and CEO)
Thanks, Daniel.
OPERATOR
Your next question comes from heiko Ile from H.E. wainwright. Please go ahead.
Heiko Ile (Equity Analyst)
Hey, good morning, Paul and team. Thanks for taking my questions. Mostly been answered in all fairness. But I got two more little follow ups, really. Exploration at Yanacocha. I mean, it looks like Newmont seems to be willing to spend that site. You want to maybe give a bit of color on what you're seeing, your discussions with their team overall
Paul Brink (President and CEO)
on that Yanacocha site, that property, you've got the oxides, the potential sulfides project. Going forward, you've got conger, you've got. The big issue in the region is community support. And their area of concern has always been around water quality. So Newmont has a huge program that they're investing in the order of 2 billion over the course of four years to try and address that issue dealing with water management. Part of that is providing fresh water to the town of Cajamarca. So I think that that's the program that I think will unlock all those deposits in time. The, you know, right now sulfide is on pause. They're looking at some of the other projects. The, you know, the easier one and you know, one that may have a higher return of capital is Quellish. So I don't know how they proceed, you know, in what order they proceed with those projects, but in any discussions, they're very committed to the area and resolving those issues, building good social license so that ultimately they can develop all of those deposits. And there's, you know, the summary in Yanacocha is that they've mined 40 million ounces from that property and there's at least 40 million ounces of gold equivalent ahead of them. So it's a prize worth winning. Fair enough. And then completely different one. I mean, you got a very strong balance sheet, you got a high available capital, you got ongoing growth in geo margins. Gold prices don't seem to be going down anytime soon. Have there been calls for a special dividend at the board level? I know we sort of talked about M and A earlier, which is the exact opposite, but I mean, should we be more focused on elephant hunting or has there been meaningful calls at the board level to make like a single time payout?
Sandeep Rana (Chief Financial Officer)
Hi, Haiko, Sandeep here. You know, we do have the discussion. You know, our philosophy on the dividend has always been consistent. You know, overall and just in terms of, you know, where we use our cash, the priority is always adding good long life assets to the portfolio. But with respect to the dividend, it's, it's being sustainable and progressive. You know, raise the dividend every single year regardless of what commodity prices are doing and, and be in a position to raise it for an extended period of time. And we're proud of the way we have handled the dividend 19 years in a row in terms of increases. So that's the strategy. I don't think you'll see any sort of special dividend coming to Franco.
Heiko Ile (Equity Analyst)
Fair enough. I only brought it up because it's now come up in two investor calls over the past call it month. Perfect. Thank you so much. I'll get back to you.
Paul Brink (President and CEO)
Thanks, Tycho.
OPERATOR
Your next question comes from Brian MacArthur from Raymond James, please go ahead.
Brian MacArthur (Equity Analyst)
Good morning and thank you for taking my questions. A lot of them have been answered. But can I ask first of all
Sandeep Rana (Chief Financial Officer)
on the cra, you got the money back and looking through the account, it looks like that's fully settled now. That is, there's nothing outstanding that they owe you, is that correct, Brian? Yes, that is correct. So any deposits that we had put down during, you know, proceeding with our dispute have now been returned by CRA along with interest. So there's nothing reflected on the balance sheet.
Brian MacArthur (Equity Analyst)
Okay, then the second thing, can you just, if you can, this whole federal
Sandeep Rana (Chief Financial Officer)
government change here in Canada to transfer pricing. I know you say you're still evaluating it, but this potentially bigger. Do you have anything you can comment on that? You know, we're still looking into it. I think at the end of the day, you know, we were very successful with the settlement we reached with CRA. I think as they went through their process and actually got down into the details, we went through discovery, they realized how good our structure is and the processes we have in place and the way we operate our business internationally. So, you know, the new transfer pricing rules, we're still evaluating, but we think we've got a very good structure in place. Right, but this will only be, as you said, from 2026 forward. They can't go back on anything still. Right. Okay. Correct. So then my next question is, and following up what Tanya asked, so opening the facility in Barbados, does that give you other than obviously access for capital at good rates, does it give you any other advantages or like why put it there versus just more in Canada? I mean, it was a decision by the Franco International board, Ren Nevada International, the Barbadian subsidiary. Their board wanted some additional flexibility. They requested it and so we proceeded with it.
Brian MacArthur (Equity Analyst)
And my last question just you mentioned constant established you didn't get paid this quarter. But. But is that. Just remember that correctly.
Sandeep Rana (Chief Financial Officer)
It's just you switched the way this works. So it's just one quarter. You didn't get it, you make it up in Q2 and everything going forward is just on a 1/4 lag.
Brian MacArthur (Equity Analyst)
Is that how that works?
Sandeep Rana (Chief Financial Officer)
So it's so. Yeah. So we were fixed deliveries up until the end of the year and then once it switched into Variable production in Q1, our delivery is mid April. So. So it was one quarter, but there was a lag. So we will now be getting deliveries in the first month of the quarter following quarter. So, you know, Q1 Productions in April, Q2 production will get delivered in July and so on.
Brian MacArthur (Equity Analyst)
Okay, so it's just a timing issue really.
Sandeep Rana (Chief Financial Officer)
Yeah, it was just a 1/4 window there. Great. Thank you very much for answering my questions.
OPERATOR
Your next question comes from the line of Derek Matt from TD Cohen. Please go ahead. Thank you.
Derek Matt (Equity Analyst)
I just wanted to ask one question on the second revolving facility in Barbados. Actually, are you able to utilize that at the parent level for royalty and on stronger transactions or does that get too messy from a structure perspective? No, we were able to use both for whatever purpose we see in front of us. It doesn't matter if it's royalties or extremes. Just a question of how you. How you move the funds between companies. But it's open, there's no restrictions. Got it. Thank you.
OPERATOR
Your next question comes from John Tamazas from John Tamazz's very independent research. Please go ahead.
John Tamazas
Thank you. And congratulations on all the records. Could you explain the accounting of the interest income that shows up in the revenue line versus the finance income that's below operating income next to finance expense?
Sandeep Rana (Chief Financial Officer)
And why both numbers were smaller this quarter than prior period? Sure. So John, this quarter at the top line, revenue, interest income was zero compared to having an amount last year. That interest relates to any loans that we make. So we had provided financing to G Mining, to emx and we were recording revenue or interest income associated with those loans. Those loans were repaid in Q4 of 2025. And so now we have no loans outstanding per se. The interest income line, that's below, down at the bottom of the income statement is your typical interest that you earn on your. Your cash in your bank accounts. And as you know, we deployed a significant amount of cash last year. So with that lower cash balance, the corresponding interest income was lower. Thank you very much.
OPERATOR
There are no further questions over the phone lines. I'll now turn the Q and A session over to Wannabe Tech who will take questions from the webcast.
Vincent
Thank you, Vincent. There are no questions from the webcast either. So this concludes our Q1 2026 results, conference call and webcast. We expect to release our Q2 results on August 12th after market close and we will have a conference call the following morning. Thank you for your interest in Franco, Nevada.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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- Franco-Nevada Q1 2026 Earnings Call: Complete Transcript
May 13, 2026
On Wednesday, Franco-Nevada (TSX:FNV) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
Access the full call at https://app.webinar.net/6ZxMw37wnb0
Summary
Franco-Nevada Corp reported record financial results for Q1 2026 with significant increases in revenue, operating cash flow, adjusted EBITDA, and net income driven by higher commodity prices and recent acquisitions.
The company completed four new acquisitions, including a gold stream with Orzone on Casabrati and royalty financings in Nevada and Western Australia, enhancing their portfolio with attractive resource optionality.
Franco-Nevada Corp's operational highlights included progress at Cobra Panama, where coal shipments were received and power plant units restarted, and an ongoing environmental audit showed no material deficiencies.
The company expanded sustainability initiatives, including diversity scholarships and community education programs, and received an upgrade to AAA in MSCI ESG rating.
Management highlighted a robust pipeline of business development opportunities with $3.4 billion in available capital, expecting stronger financial performance in Q2 due to higher energy prices and increased deliveries.
The Q&A session addressed potential trends in acquisitions, operational details of key assets, and financial structuring strategies, including additional credit facilities for financial flexibility.
Full Transcript
OPERATOR
Good morning and welcome to Franco-Nevada Corp's first quarter 2026 results, conference call and webcast. This call is being recorded on May 13, 2026. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a Q and A session where you may ask a question through the phone line or webcast. If you're joining by webcast, you may submit a reading question for the Q and A session at any time during this call by typing your question in the Q and A section of the webcast platform. If you require immediate assistance during this call, please press star zero at any time for the operator. I would now like to turn the conference over to your host, Vincent, VP Finance and Investor Relations. Please go ahead.
Vincent
Thank you. Vincent Good morning everyone. Thank you for joining us today to discuss Franco Nevada's first quarter 2026 results. Accompanying this call is a presentation which is available on our website at franco-nevada.com 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 followed by Sandeep Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q and A period. Our 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 commentaries may contain forward looking information. We refer you to a detailed cautionary Note on slide 2 of this presentation. I will now turn the call over to Paul Brink, President and CEO of Franco Nevada.
Story Continues
Paul Brink (President and CEO)
Thank you Bonavie. Good day everyone. At yesterday's agm, David Harkwell gave his last address as Chair before taking on the title of Chair Emeritus. As shareholders, we're all tremendously grateful to David for the incredible value he's created over 18 years at Franco-Nevada. On behalf of the Board and the management team, I'd like to thank David for his vision, his leadership and his entrepreneurial drive that's created the success that we've all shared in. We're delighted to have Tom Albanese, who was most recently Lead Independent Director of Franco Nevada, take on the Chair role. Many of you are already familiar with Tom from his prior CEO roles at both Rio Tinto PLC and Verdanta Resources and many other corporate directive positions, his depth of experience and his intimate knowledge of Franco Nevada from his many years of prior service on the board. Turning to the first quarter, we once again realized record financial results, record revenue, operating cash flow, adjusted EBITDA and net income driven by higher commodity prices and contributions from recent acquisitions. During the quarter we also had a gain from partial buyback of our Cascade Bell stream as it moved into the hands of Jiangxi Copper, a party we believe is very capable of building and operating a large scale mine while prices have traded 70 80% higher since the US attack on Iran at the end of February. While not much of the higher prices accrued to Q1, it bodes well for our Q2 results and potentially through the rest of the year Franco Nevada is unique as a mining equity. Not only is our royalty and streaming model largely insulated from the effect of energy prices and cost inflation, but at current prices oil and liquids can contribute meaningfully to our revenue mix. Q1 26 was one of our most successful quarters, growing our business with four new acquisitions, a gold stream with orzone on Casabranti, royalty financings for I80 Gold in Nevada and Minerals260 in Western Australia and purchase of a third party royalty on Banyans or Mac. All assets were able to secure attractive resource optionality in good mining jurisdictions. We saw encouraging progress at Cobra Panama. The quarter saw coal shipments received for the both power plant units restarted and power supplied to the grid. The Government of Panama then proceeded to approve the processing of stockpiles. This was an important step as it allows the company to restart the mills which has the immediate positive benefit of increasing employment in the Audit the environmental audit carried out by SGS Global is ongoing with five interim reports having been published without any material deficiencies identified. The final report is due in Q2 of this year. On the sustainability front, we're expanding the reach of our diversity scholarships for college or trade school programs. In collaboration with young mining professionals, we continue to grow our community initiatives, renewed our support for Encena Peru's education initiatives in Peru and also funded an education initiative with i80 Gold in Nevada. Last week we published our annual Sustainability Report which outlines our accomplishments in 2025 and our commitments to further our sustainability related leadership. The report is available on our website. Our efforts are recognized by the major ESG rating agencies. In particular, during the quarter we received an upgrade of our MSCI ESG rating from AA to AAA, placing us in the top tier amongst mining and precious metal players. Along with the Sustainability Report, we launched our annual Asset Handbook which details first and foremost 121 cash flow producing assets, the largest and most diversified portfolio of cash flow producing streams and royalties that exist included in the report is an asset by asset Mine Life detail both operators, current mine plans and potential mine life based on M and I royalty ounces in aggregate for our mining portfolio. At current production rates, M and I resources would support 34 years of mining and inferred resources a further 12 years. The report also profiles our development projects and our higher potential exploration projects. One stat that to me highlights the optionality of the portfolio is the total value of the ounces underpinning the value of the company in all categories. Ounces that are 100% attributable to Franco have a value of 124 billion at current gold prices. That's just shy of triple our current market cap. To finish, we currently have 3.4 billion in available capital and a robust pipeline of business development opportunities. With that, I'll hand the call to Sandy.
Sandeep Rana (Chief Financial Officer)
Thanks Paul Good morning everyone. As Paul mentioned, Franco-Nevada reported record financial results for first quarter March 31, 2026. Our portfolio of royalty and stream assets continue to perform well, with both the precious metals and diversified segments having a strong quarter. On slide 4, you'll see a summary of commodity prices for first quarter 2026 and 2025. Gold and silver prices increased significantly year over year with the average gold price higher by 70% in the quarter. The two strongest performers year over year were silver and platinum, each up 165% and 128% respectively. The strong silver price performance benefited our silver assets and in particular Antamina, where we had a significant increase in revenue compared to prior year. This was both due to the increase in the silver price, but also significantly higher silver deliveries during the quarter. For the diversified commodities, most remained fairly flat year over year.
Sandeep Rana (Chief Financial Officer)
However, with the conflict in the Middle east, the oil price has seen a sharp increase over the last two months. Current WTI prices have been hovering around $100 per barrel. This will positively impact our energy revenue for Q2. An increase of $10 relative to our assumed WTI price of $70 per barrel used in our guidance would be expected to increase our oil revenue by approximately 12%. The strong performance of our assets combined with record gold and silver prices resulted in record financial results for the quarter.
Sandeep Rana (Chief Financial Officer)
Revenue was higher by 77%, adjusted EBITDA 84% and adjusted net income 123%. Total GEOs sold for the quarter increased 8% to 136,353 compared to 126,585 in the prior year. Precious metal GEOs sold in the quarter were 117,980 higher by 17% compared to prior year. 55% of our total GEOs sold were sourced directly from mines where precious metals is the primary commodity. For the quarter we received strong contributions from a number of key assets and Tamina.
Sandeep Rana (Chief Financial Officer)
As mentioned, we benefited from both higher deliveries and also benefited from the higher silver price resulting in an increase in revenue from 21.3 million last year to 82.3 million this quarter. At South Otoro we had a 322% increase in GEOs as we benefited from the phase one production of the open pit. Please note that the strong performance is weighted to the first half of this year. For Hemlo we had an adjustment of $10 million Canadian related to 2025 that flowed through Q1 2026. As you know with the Hemlo MPI it's difficult to forecast as it depends on a number of factors including how much mining is performed on Franco's interlaced lands along with how much is being spent on operating and capital costs. And finally we're benefiting from asset acquisitions made last year in particular Cote and Porcupine which together contributed approximately 6,500 GEOs or $31.5 million in revenue during the quarter. Diversified GEOs sold were 18,373 for the quarter compared to 25,962 for prior year.
Sandeep Rana (Chief Financial Officer)
Despite diversified revenue actually being higher year over year at 82.6 million versus 74.8 million. The decrease in GEOs is due to the impact of the conversion of revenue to GEOs. As you know we are now converting to GEOs using a fixed gold price of 4500 per ounce. As you can see on the chart on slide 5, total revenue increased by 77% for the quarter to 650.7 million. A record. Precious metals accounted for 85% of revenue adjusted. EBITDA also a record was 84% higher at 591.9 million.
Sandeep Rana (Chief Financial Officer)
With respect to costs, we did have an increase in cost of sales compared to prior year due to higher fixed costs paid for stream ounces as a portion of our streams have a fixed cost based on a percentage of the gold price. Cost of sales was 46.5 million versus 38.5 million last year. Depletion increased to 77.9 million versus 68.4 million a year ago. The increase is due to depletion being recorded on some of our recent transactions Yanacocha, Western Limb, porcupine and Cote.
Sandeep Rana (Chief Financial Officer)
These assets are higher per ounce depletion assets we Expect the depletion rate to decrease over time as the reserves on the properties grow. And finally, adjusted net income was 458.3 million or $2.38 per share for the quarter, higher by 123% and 122% respectively. As Paul mentioned, we did record a gain of 63.8 million which is included in net income for the partial buyback of the Cascaval royalty and stream. 50% of the royalty was bought back for proceeds of 97.5 million and 50% of the stream was bought back for net proceeds of 40.7 million.
Sandeep Rana (Chief Financial Officer)
The proceeds for the stream were delivered through approximately 10,000 gold ounces which remain in inventory at the end of the quarter. The cascpile buyback is not reflected in GEOS revenue or adjusted EBITDA. Slide 7 highlights the continued diversification of the portfolio. 87% of our revenue was generated by precious metals and being sourced 87% from the Americas. Slide 8 illustrates the strength of our business model to continue to generate high margins. As you can see, over the last number of quarters as the gold prices increased, our margin per GEO has remained fairly consistent. Our cash cost per Geo has increased from $304 in first quarter 2025 to 341 per GEO in first quarter 2026, a roughly 12% increase over the period. However, the margin has increased from 2,559 per GEO to 4,534 per GEO this quarter, a 77% increase while during this period the gold prices increased 70%. As we turn to dividends on slide 9, the company continues to pay a quarterly dividend with 84.4 million being paid to shareholders during the quarter.
Sandeep Rana (Chief Financial Officer)
We increased the dividend in January by 16% to $0.44 per share per quarter or $1.76 per share annualized. This was the 19th consecutive year we have increased the dividend and lastly, Slide 10 highlights our available capital as at March 31, 2026 the total available capital is 3.4 billion comprised of 715 million in cash, 1.5 billion with our credit facility including the accordion and 1.2 billion in liquid marketable securities. In addition, subsequent to quarter end our subsidiary Franco Nevada International entered into a separate credit facility for 500 million and an additional $250 million accordion.
Sandeep Rana (Chief Financial Officer)
This adds additional financial flexibility for the company and with that I will pass it over to Vincent as management is happy to answer any questions.
OPERATOR
During this Q and A. If you'd like to ask a question, just simply Star Press star, then the number one on your telephone keypad. If you would like to withdraw your question, just press the star, then the number two. If you're joining us on the webcast, please submit your question through the Q and A section of the webcast platform. Your first question comes from George Ady from ubs. Please go ahead.
George Ady
Yeah, good morning team. Thanks for the call. Can I start by asking about the deal pipeline? Recent deals such as the Orezone gold deal, the i80 gold sort of look like a backing more of mid tier developers. Is that a sort of pivot you're seeing in the market or is that sort of reading into a trend too much?
Paul Brink (President and CEO)
Hey George, it's Paul Brink speaking. Ian is unfortunately on the road this morning, so I'll take the question. It is a trend we've seen, but it's not the only trend. In this market with high gold prices, any operator is making fantastic cash flow. The great thing for us there is organic growth. But on the acquisition side for developers it's still very attractive to access our capital. And so there are a number of them that are working to get projects over the line. So I'm hopeful that there'll be more of that through the year. But also at these strong prices, as we've seen and it's the case with Casabranti and Orezone, the bigger players are looking at the portfolio saying what are the smaller assets can they vend out? And in this environment they can get very good value for those assets. So that is a second theme that's ongoing and then the third is BHP and their sale of the stream interest in Anna Mena I think really opened the eyes of the market of the hidden value that's in a lot of these portfolios, even big portfolios that can be created through the sale of precious metal streams.
Paul Brink (President and CEO)
So I think those are all themes that hopefully will play out through the year.
George Ady
Right, so you guys think there could be more BHP antimina type streams, is that right?
Paul Brink (President and CEO)
Yeah, I think a number of the large players are looking at that and saying wow, you know what a great market reception BHP got. So I'm hopeful there will be more transactions.
George Ady
Yep, no, that's clear, thank you. And maybe just one other on the operations. But Candelaria, can you remind us please on the step down timing next year and just the latest thoughts on the potential underground expansion to.
Sandeep Rana (Chief Financial Officer)
Sure, Sandeep here. So the step down will be in mid-2027. It'll drop down from 68% down to 40%. As for the underground expansion I don't believe Lundin has made the formal decision to move forward with that. They're still reviewing it, but if they do, we were expecting it towards the end of this decade.
OPERATOR
Your next question comes from Fahad Tariq from Jeffries. Please go ahead.
Fahad Tariq
Hi, thanks for taking my question on Cobre Panama. Can you provide some color on whether there's any discussion around potentially changing the stream terms
Paul Brink (President and CEO)
here on COBRA Panama? All the discussions are first quantum with the government. We're not involved in any of discussions. The only interaction we have had with the government is obviously around our arbitration. Our overall position there is we're not operators, we're not on for operating risk. So we don't know what the outcome will be here. But I think it's unlikely that you'll see any material change.
Fahad Tariq
Okay, great. And then just thinking about growth. Just any commentary on potential consolidation in the royalty royalty and streaming subsector? I mean there's a long list of junior royalty streaming companies that could be acquired. Just any thoughts on that versus looking at individual transactions? Thanks.
Paul Brink (President and CEO)
From time to time we run the numbers on the various royalty players but inevitably what we find is that there's better value in doing private transactions. Your royalty players typically traded at premium, so it's in terms of relative value. I think the most likely thing that we'd be doing is more private deals. Okay, great. Thank you.
OPERATOR
Next question comes from the line of Cosmos Chu from cibc. Please go ahead.
Cosmos Chu
Thanks. Paul Sandeep and team. Maybe my first question is on your portfolio of equity investments. As we've seen some of your in your peer group, they've started monetizing their own portfolio of equity investments. Maybe thinking that's a good time or to finance larger acquisitions. You're a little bit different. You continue to add to your portfolio. You added. And now Sandeep, as you mentioned, it's grown to $1.2 billion. So you know, I guess my question is could you maybe remind us of your philosophy and your strategy behind these holdings
Paul Brink (President and CEO)
and the, the two largest holdings that we have are, are with G Mining and with Discovery Silver. And you know, overall our strategy with these companies is, has been find really good teams, find the best mine builders, mine operators in the industry and not just be transactional in providing them with the stream of royalty financing but position ourselves as a financial backer for the company and try and differentiate them with that financial strength with our endorsement. And that's worked tremendously well for those companies. So the first part of that is we see ourselves as supporting those companies for the long Term and see ourselves as participating in the equity or longer term, you know, that's it. We're in this to make money for shareholders. So at the right time we will take some money off the table. You know, when I think of both of those two plays with G Mining right now with the build of Oko, I think there's tremendous value that's going to be created as they bring their second mine into operation. Likewise with Discovery Silver, the transaction they've been able to do securing Kidd Creek allows them to hopefully almost double production output coming out of that asset as they reroute the ores through the Crate Creek mill over time and it opens up the incredible potential that they have at Dome and to start processing that ore through the Dome mill. So both plays, I think there's tremendous value that'll be created over the next one.
Cosmos Chu
Great. I guess as a follow up, I did notice that you did not take an equity investment in Orezone. Maybe, maybe touch on that. And then you know, further on on Orezone, I saw that, you know, Casabranti, a lot of positive chatter out of Orezone drilling, extending mine life beyond two years. You know, they're talking about the gap between the west shaft and the east shaft just to confirm it would be a direct benefit to Franklin Nevada if any of those kind of materialize. And also just curious, you know, when you look at these deals, how much of this potential upside have you factored into original $100 billion investment?
Paul Brink (President and CEO)
Cosmos Matt Beguman was, was instrumental in that deal. So I'm going to let him speak to him because.
Matt Beguman
Hey there. Yeah. So I think as far as the equity question, you know, that was just sort of the capital structure they were looking for at the time. That wasn't a large part of the capital need they needed. And so we just played our a little bit smaller role just on the stream and they had the other sources of funds from their other sources of capital. As far as the upside there, I think, you know, our view is there's extensive upside over time. Yeah, Patty's got a very extensive plan with the company to drill that out to make that connection and we will benefit from that. I mean I think as you've noted where fixed ounces for the first five years but thereafter a variable stream. And we think there's significant exploration upside over time. You know, particularly in the underground where Patti's going to be very actively looking to optimize that. So we're very optimistic for the, the growth there.
Cosmos Chu
Great. Maybe one last question, Sandeep, as you mentioned, you know, there are some NPIs in your portfolio. One MPI is the muscle white MPI. And in your MDNA you mentioned that a lot of exploration potential, the Camp A near surface, you know, target, for example, you might now be, you know, part of a larger company given the deal that happened Equinox and Orion Mining today. So I guess my question is, could you maybe remind us of the Mechanics behind how MPIs work? And for example, if Muscle White is able to bring Camp A something new into production, when could you start seeing some kind of contribution to Franco, Nevada?
Sandeep Rana (Chief Financial Officer)
Sure. Cosmos. So NPIs, they vary by contract. You know the one, it's not consistent. Sometime it's you recover 100% of your capital, other times it's based on the profit, based on accounting. So as I said, they're not consistent. But with respect to Musselwhite, you know, our MPI covers the entire land package. But if they were to develop that, they would be able to deduct whatever capital is required. So that would be 100% deduction against it. So in terms of timing, depends on the quantum of what capital would be applied against it. So there would be a bit of a lag. But it all depends on how much is being spent.
Cosmos Chu
Yes, exactly. So maybe one last question just quickly on Palmarejo, you know, the 50% Goldstream as you mentioned, core mining has actually done, you know, fairly well, very well in terms of increasing gold reserves, extending the mine life by five years. My understanding is that there's the Franco concessions and there's land beyond the Franco concessions. So based on your understanding, how much of this upside that they are talking about at this point in time falls within the Franco concessions, shorter term and also long term as well.
Sandeep Rana (Chief Financial Officer)
So they've been drilling, so you're right. So our stream doesn't cover the entire land package. They have been drilling on Franco land, where the stream applies as well as non stream land. They've been successful on both. So based on the results of last year, they have been able to extend the mine life of Palmarejo, Guadalupe, where we do have our stream. So we don't know exactly at what point they will move completely off Franco land. But at this stage our stream at the guidance that we provided runs out to at least the end of this decade, early 2000-30s.
Cosmos Chu
That's great to hear. Thanks again, Paul, Sandeep, Matt and Bonavit, those are the questions I have congrats on a very strong start to 2026.
Paul Brink (President and CEO)
Thanks Kosmos.
OPERATOR
Your next question comes from the line of Tanya Jakoskonik from Scotiabank, please go ahead.
Tanya Jakoskonik
Great. Good morning everybody. Thank you for taking my questions. I'm going to start just back on the transaction opportunities. Thank you Paul, for giving us some sense of what is out there. I just want to flesh it out with again, what is the main size that you're seeing? And number two, are most of the opportunities in silver, gold or are you still looking for non precious metal transactions? And then are there big ones where you'd be open to syndication? So that's my first question.
Paul Brink (President and CEO)
Yeah, a couple of things in there, Tanya. In terms of deal sizes, there's a whole range in dealing with the project developers, it's that typical range, 200, 500 million. If there are some of the bigger players that do consider streams, those would be far, far bigger deals, but don't yet know what the scale of those could be. Terms of syndication, we're always open to syndication in terms of managing risk if the ticket size is too big and we feel that that will be the best balance in terms of exposure and risk, although nothing currently that we're contemplating on that front. And in terms of revenue mix, most of what we're looking at is precious metal. But as always we're open to diversification. And so there are a couple of diversified deals that are also in the pipeline.
Tanya Jakoskonik
And Paul, when you say nothing is too big, like could you do a 4 billion on your own, would you be comfortable doing that?
Paul Brink (President and CEO)
You know Ken, we've got three and a half billion available capital so I think that is quite easily achievable. It's just a question of, you know, where is the asset, how much risk exposure, do you want a particular asset? That's the circumstance that we'd think about syndication. But if you're dealing with a great asset, great jurisdiction, you know, no need and plenty of capital.
Tanya Jakoskonik
Okay, got it. And then for the non precious metals, what size would that be?
Paul Brink (President and CEO)
You know, there are a few things out there that some that are moderately sized, some that could be more meaningfully sized. Source range. Okay, moderately sized. Okay, so would I be thinking 200 to 500 million for those as well? Yes.
Tanya Jakoskonik
Okay, thank you for that. I'm going to move over to Sandeep if I could. So you mentioned sandeep that there's 10,000 ounces that you are holding right now with the sale of the Cascavel. How should I be thinking of those 10,000 GEOs, am I thinking those are to be sold in Q2? Are you holding those for a while and if so, do they then come into the, you know, how are you going to handle it from a disclosure? Would you put those as ounces back into the, your GEO ounces if you sold them and reported them?
Sandeep Rana (Chief Financial Officer)
Sure. So Tanya, in terms of, you know, when we sell them, they're in inventory right now, they'll probably be sold throughout the rest of the year. It just depends on, you know, our gold trading strategy at the time. But when they are sold, they will not go through GEOs, they will not go through revenue. They'll be treated as we treat the royalty gold ounces that we sell where we book a gain or loss on the sale. So they'll flow through outside of revenue on that line item on the income statement. Okay, so I should just think over the year the 10,000 ounces will be gone. Yes, yes.
Tanya Jakoskonik
And then just as I think about your, you know, you've had a good quarter, how should I be thinking about the rest of the, of the year as it develops in terms of, you know, is it, you know, back end weighted? I did, you did give guidance that, you know, stronger Q2 with the higher oil price, how should I be thinking about the rest of the portfolio?
Sandeep Rana (Chief Financial Officer)
So you know, overall the following quarters will be stronger, just especially as Paul also mentioned, if the energy prices stay where they are. Because now that we are dividing by a fixed gold price of 4,500, as energy revenue increases, it'll lead to additional GEOs. So from a top line metric, it should be stronger as the year progresses. In terms of specific assets in Q1, we didn't have any deliveries from Con desoblo Casa Berardi. You'll start to see those come in. You're going to see cocaine ramp up as the year goes on as well. So you know, I don't have specifics quarter by quarter, but the, the rest of the year will be stronger than Q1.
Tanya Jakoskonik
Okay. And as I think about it, as things are ramping up, would it be quarter over quarter sequential increases?
Sandeep Rana (Chief Financial Officer)
I think you should, I think you should see a stronger Q2 and then probably, probably pretty consistent. As for the remaining quarters, similar to Q2.
Tanya Jakoskonik
Okay, all right, got it. So it's hard to forecast these.
Sandeep Rana (Chief Financial Officer)
We have so many, yeah, we have so many assets, right Tanya, that you know, one quarter, one can slightly underperform while another one outperforms. So it's hard to really go quarter by quarter.
Tanya Jakoskonik
Yeah, no, I appreciate that. And then, you know, just. Sandy, on the increase in Barbados, when was the last time that you increased your credit facility in your Barbados division?
Sandeep Rana (Chief Financial Officer)
So we implemented a credit facility in 2018 for a few years. It was a smaller in size. It was $100 million at the time. And I believe it expired in 2021 and we didn't renew it. Now we just, we looked at, you know, our available capital. We always looked for financial flexibility. And the banks were very forthcoming with very good terms. And we thought it was a good opportunity to add some additional financial flexibility and additional tool for us. So we put in a $500 million credit facility. 500 with the 200 million accordion. So you have 750 in Barbados and 1.5. Yeah. And 1.5 at the parent level. So 2.25 in total.
Tanya Jakoskonik
Okay. All right, we'll watch. Stay tuned. Thank you very much for answering my questions and taking my questions.
Sandeep Rana (Chief Financial Officer)
Thanks, Daniel.
OPERATOR
Your next question comes from heiko Ile from H.E. wainwright. Please go ahead.
Heiko Ile
Hey, good morning, Paul and team. Thanks for taking my questions. Mostly been answered in all fairness. But I got two more little follow ups, really. Exploration at Yanacocha. I mean, it looks like Newmont seems to be willing to spend that site. You want to maybe give a bit of color on what you're seeing, your discussions with their team overall
Paul Brink (President and CEO)
on that Yanakucha site, that property, you've got the oxides, the potential sulfides project. Going forward, you've got conger, you've got. The big issue in the region is community support. And their area of concern has always been around water quality. So Newmont has a huge program that they're investing in the order of 2 billion over the course of four years to try and address that issue dealing with water management. Part of that is providing fresh water to the town of Cairmarca. So I think that that's the program that I think will unlock all those deposits in time. The, you know, right now sulfide is on pause. They're looking at some of the other projects. The, you know, the easier one and you know, one that may have a higher return of capital is Kielish. So I don't know how they proceed, you know, in what order they proceed with those projects, but in any discussions, they're very committed to the area and resolving those issues, building good social license so that ultimately they can develop all of those deposits. And there's, you know, the summary in Yanacocha is that they've mined 40 million ounces from that property and there's at least 40 million ounces of gold equivalent ahead of them. So it's a prize worth winning. Fair enough. And then completely different one. I mean, you got a very strong balance sheet, you got a high available capital, you got ongoing growth in geo margins. Gold prices don't seem to be going down anytime soon. Have there been calls for a special dividend at the board level? I know we sort of talked about M and A earlier, which is the exact opposite, but I mean, should we be more focused on elephant hunting or has there been meaningful calls at the board level to make like a single time payout?
Sandeep Rana (Chief Financial Officer)
Hi, Haiko, Sandeep here. You know, we do have the discussion. You know, our philosophy on the dividend has always been consistent. You know, overall and just in terms of, you know, where we use our cash, the priority is always adding good long life assets to the portfolio. But with respect to the dividend, it's, it's being sustainable and progressive. You know, raise the dividend every single year regardless of what commodity prices are doing and, and be in a position to raise it for an extended period of time. And we're proud of the way we have handled the dividend 19 years in a row in terms of increases. So that's the strategy. I don't think you'll see any sort of special dividend coming to Franco.
Heiko Ile
Fair enough. I only brought it up because it's now come up in two investor calls over the past call it month. Perfect. Thank you so much. I'll get back to you.
Sandeep Rana (Chief Financial Officer)
Thanks, Tycho.
OPERATOR
Your next question comes from Brian MacArthur from Raymond James, please go ahead.
Brian MacArthur
Good morning and thank you for taking my questions.
Sandeep Rana (Chief Financial Officer)
A lot of them have been answered. But can I ask first of all on the cra, you got the money back and looking through the account, it looks like that's fully settled now. That is, there's nothing outstanding that they owe you, is that correct, Brian? Yes, that is correct. So any deposits that we had put down during, you know, proceeding with our dispute have now been returned by CRA along with interest. So there's nothing reflected on the balance sheet. Okay, then the second thing, can you just, if you can, this whole federal government change here in Canada to transfer pricing. I know you say you're still evaluating it, but this potentially bigger. Do you have anything you can comment on that? You know, we're still looking into it. I think at the end of the day, you know, we were very successful with the settlement we reached with cra. I think as they went through their process and actually got down into the details, we went through discovery, they realized how good our structure is and the processes we have in place and the way we operate our business internationally. So, you know, the new transfer pricing rules, we're still evaluating, but we think we've got a very good structure in place. Right, but this will only be, as you said, from 2026 forward. They can't go back on anything still. Right. Okay. Correct. So then my next question is, and following up what Tanya asked, so opening the facility in Barbados, does that give you other than obviously access for capital at good rates, does it give you any other advantages or like why put it there versus just more in Canada? I mean, it was a decision by the Franco International board, Ren Nevada International, the Barbadian subsidiary. Their board wanted some additional flexibility. They requested it and so we proceeded with it.
Brian MacArthur
And my last question just you mentioned constant established you didn't get paid this quarter. But. But is that.
Sandeep Rana (Chief Financial Officer)
Just remember that correctly. It's just you switched the way this works. So it's just one quarter. You didn't get it, you make it up in Q2 and everything going forward is just on a 1/4 lag.
Brian MacArthur
Is that how that works?
Sandeep Rana (Chief Financial Officer)
So it's so. Yeah. So we were fixed deliveries up until the end of the year and then once it switched into Variable production in Q1, our delivery is mid April. So. So it was one quarter, but there was a lag. So we will now be getting deliveries in the first month of the quarter following quarter. So, you know, Q1 Productions in April, Q2 production will get delivered in July and so on.
Brian MacArthur
Okay, so it's just a timing issue really.
Sandeep Rana (Chief Financial Officer)
Yeah, it was just a 1/4 window there. Great. Thank you very much for answering my questions.
OPERATOR
Your next question comes from the line of Derek Matt from TD Cohen. Please go ahead. Thank you.
Derek Matt
I just wanted to ask one question on the second revolving facility in Barbados. Actually, are you able to utilize that at the parent level for royalty and on stronger transactions or does that get too messy from a structure perspective? No, we were able to use both for whatever purpose we see in front of us. It doesn't matter if it's royalties or extremes. Just a question of how you. How you move the funds between companies. But it's open, there's no restrictions. Got it. Thank you.
OPERATOR
Your next question comes from John Tamazas from John Tamazz's very independent research. Please go ahead.
John Tamazas
Thank you. And congratulations on all the records. Could you explain the accounting of the interest income that shows up in the revenue line versus the finance income that's below operating income next to finance expense?
Sandeep Rana (Chief Financial Officer)
And why both numbers were smaller this quarter than prior period? Sure. So John, this quarter at the top line, revenue, interest income was zero compared to having an amount last year. That interest relates to any loans that we make. So we had provided financing to G Mining, to emx and we were recording revenue or interest income associated with those loans. Those loans were repaid in Q4 of 2025. And so now we have no loans outstanding per se. The interest income line, that's below, down at the bottom of the income statement is your typical interest that you earn on your. Your cash in your bank accounts. And as you know, we deployed a significant amount of cash last year. So with that lower cash balance, the corresponding interest income was lower. Thank you very much.
OPERATOR
There are no further questions over the phone lines. I'll now turn the Q and A session over to Wannabe Tech who will take questions from the webcast.
Vincent
Thank you, Vincent. There are no questions from the webcast either. So this concludes our Q1 2026 results, conference call and webcast. We expect to release our Q2 results on August 12th after market close and we will have a conference call the following morning. Thank you for your interest in Franco, Nevada.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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This article Franco-Nevada Q1 2026 Earnings Call: Complete Transcript originally appeared on Benzinga.com
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- FNV Q1 Earnings Beat Estimates on Record Revenues, Higher Prices
May 13, 2026 · zacks.com
Franco-Nevada tops Q1 earnings estimates with record revenues and surging profits, driven by higher prices, a strong precious metals mix and rising GEO sales.
- Franco-Nevada: Missing Out On Gold Upside, But Also Volatility
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Franco-Nevada (FNV) remains a fundamentally strong, asset-light gold royalty business with no debt and high margins, but valuation is currently unattractive. Despite gold's surge and FNV's 90%+ EBITDA margins, the stock underperformed physical gold and broader indices due to high P/E and investor preference for higher-beta miners. FNV's diversified exposure, including oil and gas, and its premium multiple limit upside; annualized RoR since 2020 is under 8%.
- Franco-Nevada Reports Record Q1 2026 Results
May 12, 2026
Tom Albanese appointed Chair
(in U.S. dollars unless otherwise noted)
TORONTO, May 12, 2026 /CNW/ - Franco-Nevada realized record financial results in the first quarter of 2026, driven by higher commodity prices, contributions from newly acquired assets, a partial buy-back and a refund from the Canada Revenue Agency. "The sharp rise in oil prices is expected to positively impact our Q2 revenues, while our royalty and streaming model is largely insulated from the impact of energy prices on cost inflation. Franco-Nevada is unique as a mining equity that benefits from rising oil prices. We look forward to further growth from new assets, additional contributions from Cobre Panamá and the potential for a full resumption of the mine", stated Paul Brink, President & CEO.
At today's AGM, David Harquail gave his last address as Chair before taking on the title of Chair Emeritus. The Board thanked David for leading the IPO of Franco-Nevada and for the tremendous shareholder value he created over the ensuing 18 years.
"After almost 40 years of being in the gold royalty business, I would like to thank all of the shareholders, portfolio managers, the analysts and brokers who believed in us and helped make this latest version of Franco-Nevada "the GOLD Investment that WORKS"", commented David Harquail. "In a world confronted by political volatility and financial market instability, having Franco-Nevada as a lower-risk gold investment that is insulated from inflation and with a strong balance sheet is the right business model. I am proud of the wealth that this strategy has generated for our shareholders and that Franco-Nevada today is a financial powerhouse. I am also proud of the strong management team and Board that is in place to continue to deliver decades more of dividends to shareholders."
Following the meeting, Tom Albanese was appointed as the independent non-executive Chair of its board of directors. Tom has most recently served as the Lead Independent Director of Franco-Nevada. He is a seasoned mining executive including prior CEO roles at both Rio Tinto plc and Vedanta Resources plc and many corporate director positions.
Financial Highlights – Q1 2026 compared to Q1 2025
$650.7 million in revenue, +77% – new record. 136,353 GEOs1 sold, +8%. 126,020 Net GEOs1 sold, +11%. $520.4 million in operating cash flow, +80% – new record. Operating cash flow included a $49.5 million refund from the CRA as a result of the settlement reached in September 2025. $591.9 million ($3.07/share) in Adjusted EBITDA2, +84% – new records. $468.6 million ($2.43/share) in net income, +123% – new records. $458.3 million ($2.38/share) in Adjusted Net Income2, +123% – new records. Adjusted Net Income included $55.1 million, or $0.28 per share, from the Cascabel buy-backs (net of tax). $3.4 billion in Available Capital3 as at March 31, 2026.
Story Continues
GEOs Sold and Revenue
Quarterly GEOs sold and revenue by commodity Q1 2026 Q1 2025 GEOs Sold Revenue GEOs Sold Revenue # (in millions) # (in millions) PRECIOUS METALS Gold 91,158 $ 436.9 85,523 $ 245.9 Silver 23,618 113.5 12,490 37.0 PGM 3,204 17.7 2,610 7.8 117,980 $ 568.1 100,623 $ 290.7 DIVERSIFIED Iron ore 3,794 $ 17.1 3,888 $ 12.4 Other mining assets 1,403 6.1 1,557 4.4 Oil 7,406 33.5 13,494 34.9 Gas 4,579 20.6 4,499 17.3 NGL 1,191 5.3 2,524 5.8 18,373 $ 82.6 25,962 $ 74.8 GEOs and revenue from royalty, stream and working interests 136,353 $ 650.7 126,585 $ 365.5 Interest revenue and other interest income — $ — — $ 2.9 Total GEOs and revenue 136,353 $ 650.7 126,585 $ 368.4
In Q1 2026, we recognized revenue of $650.7 million, an increase of 77% from Q1 2025, and sold 136,353 GEOs, an increase of 8% from Q1 2025. We benefited from record gold and silver prices achieved during the quarter, strong contributions from Antamina, South Arturo, Hemlo, Musselwhite, and incremental contributions from Côté Gold, Porcupine and Valentine, all of which were acquired or commenced production over the past year. We also benefited from an increase in revenue from our Diversified assets, particularly from our Vale iron ore interest, and our Haynesville and Marcellus gas assets.
Precious Metal assets accounted for 87% of our revenue in Q1 2026 (67% gold, 17% silver, and 3% PGM). Revenue was sourced 87% from the Americas (42% South America, 21% Canada, 15% U.S. and 9% Central America & Mexico).
Portfolio Additions
Acquisition of Royalty Portfolio from Victoria Gold Corp.– Canada and U.S.: Subsequent to quarter-end, on April 16, 2026, we closed the previously announced acquisition of a portfolio of six royalties previously held by Victoria Gold Corp. for total cash consideration of $40.0 million (C$55 million). The portfolio includes a 6.0% NSR (subject to a 5.0% buy-back at the operator's election) on Banyan Gold Corp.'s AurMac property and a 1.0% NSR on Banyan Gold's Hyland property, both in the Yukon. The portfolio also includes a milestone payment royalty on i-80 Gold Corp.'s Cove project in Nevada and three additional royalties on earlier stage properties in Nevada and the Yukon. Partial Buy-Backs of Cascabel Stream and NSR – Ecuador: In March 2026, following the acquisition of SolGold plc ("SolGold") by Jiangxi Copper (Hong Kong) Investment Company Limited, for and on behalf of Jiangxi Copper Company Limited ("JCC"), SolGold and JCC exercised their option to buy back 50% of the Cascabel stream and NSR. As a result, Franco-Nevada received the equivalent of $40.7 million (net of the ongoing payment of 20% of spot price per ounce delivered) as a one-time delivery of gold ounces for the buy-back of 50% of the Cascabel stream, and $97.5 million in cash for the buy-back of 50% of the Cascabel NSR. Our acquisition cost (on a proportionate 50% basis) was $23.3 million for the stream and $50.0 million for the NSR. These buy-backs resulted in a gain of $63.8 million recognized in net income and Adjusted Net Income for Q1 2026, but excluded from Adjusted EBITDA. Acquisition of Stream on Casa Berardi Gold Mine – Quebec, Canada: On March 24, 2026, we closed the previously announced acquisition of a $100 million gold stream from Orezone Gold Corporation to support their acquisition of Hecla Mining's producing Casa Berardi gold mine and other Quebec assets, including the Heva-Hosco gold project. Stream deliveries to Franco-Nevada consist of fixed deliveries of 1,625 oz of gold per quarter (6,500 oz of gold per year) for the first five years, with the first delivery received subsequent to quarter-end, on April 15, 2026, followed by variable deliveries of 5.0% of gold produced from Casa Berardi and other Quebec assets, and 2.5% of gold produced from Heva-Hosco. Gold ounces delivered will be subject to an ongoing payment of 20% of spot price. Acquisition of Royalty with i-80 Gold Corp – Nevada, U.S.: On March 16, 2026, we closed the previously announced acquisition of a $250 million NSR from i-80 Gold. The royalty consists of a 1.5% NSR increasing to 3.0% in 2031 on all minerals produced from Granite Creek, the Ruby Hill Property (including Archimedes and Mineral Point), Cove and Lone Tree. Funding of the upfront payment of $225 million was made upon closing, with a further $25 million payable contingent on the incurrence, before the end of 2026, by i-80 Gold of an initial $25 million of budgeted expenditures to advance Mineral Point. Acquisition of Royalty on Bullabulling Gold Project with Minerals 260 Limited – Australia: On February 26, 2026, we closed the previously announced acquisition of a $120 million (A$170 million) gross royalty from Minerals 260 Limited to support its development of the Bullabulling gold project located in Western Australia. The royalty consists of a 1.45% gross royalty over certain tenements on which Franco-Nevada already held a 1.00% royalty and a new 2.45% gross royalty over tenements where Franco-Nevada did not already hold an existing royalty. Upon production of an aggregate 4.0 Moz Au from royalty lands, the royalties, in aggregate, will step down from 2.45% to 1.63%. Additionally, Franco-Nevada subscribed for $35 million (A$50 million) of Minerals 260's ordinary shares at a price of A$0.45 per share.
Cobre Panamá Update
Cobre Panamá remains in a phase of Preservation and Safe Management ("P&SM") with production halted. As part of the P&SM plan approved by the government of Panama (the "GOP"), import of energy supplies commenced and Cobre Panamá's power plant was restarted. As of the end of Q1 2026, Units 1 and 2 have been commissioned and synchronized to the national grid, and three coal vessels have been successfully received. Both units of the power plant have demonstrated reliable operation, meeting the power demands of the site and excess energy being sold to the national grid.
The integral audit, carried out by SGS Global, is ongoing, with five interim reports having been published, and the sixth report is expected to be published shortly. The integral audit and final seventh consolidated report are expected to be completed and published in Q2 2026.
Subsequent to quarter-end, on April 7, 2026, the GOP authorized the removal, processing, and export of stockpiled ore currently stored on site at the Cobre Panamá mine pursuant to the P&SM Plan. As a result, First Quantum estimates that Cobre Panamá will produce between 30,000 and 40,000 tonnes of copper in 2026, with the balance to be processed in 2027 for a total of approximately 70,000 tonnes. Based on these estimates, stream deliveries to Franco‑Nevada are expected to total approximately 23,100 gold ounces and 265,000 silver ounces. Deliveries of stream ounces to Franco-Nevada, which are determined based on the sale of copper concentrate by First Quantum under its offtake agreements, are expected to commence in Q3 2026, with the majority of deliveries anticipated in 2027.
Sustainability Updates
During the quarter, we collaborated with the Young Mining Professionals Scholarship Fund to roll-out a dedicated Franco-Nevada Mining Industry Scholarship and, beginning with the 2026/27 academic year, will fund up to C$30,000 annually in renewable, merit-based scholarships for students enrolled in mining related university, college or trade school programs in Canada. During the period, we renewed Franco-Nevada's commitment to Enseña Perú for the 2026/27 campaign in support of educational and community development initiatives in Peru. Subsequent to quarter end, we funded a contribution in partnership with i-80 Gold to support the Boys & Girls Club Early Learning Center in Eureka, Nevada. We continue to rank highly with leading ESG rating agencies, and improved our MSCI ESG rating to "AAA" during the quarter, placing us in the top rating tier.
Available Capital
We had $3.4 billion in Available Capital as at March 31, 2026. This was comprised of $714.7 million in cash and cash equivalents, $1,142.4 million in equity investments and $1.0 billion in unused credit facility with a $500.0 million accordion available directly to Franco-Nevada Corporation. Available credit was further bolstered subsequent to quarter-end by the addition of a second revolving credit facility of $500.0 million with a $250.0 million accordion, entered into by Franco-Nevada International Corporation, our wholly owned subsidiary.
Guidance
The following contains forward-looking statements. For a description of material factors that could cause our actual results to differ materially from the forward-looking statements below, please see the "Cautionary Statement on Forward-Looking Information" section at the end of this news release and the "Risk Factors" section of our most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and our most recent Form 40-F filed with the SEC on www.sec.gov. Our 2026 guidance is based on assumptions including the forecasted state of operations from our assets based on the public statements and other disclosures by the third-party owners and operators of the underlying properties and our assessment thereof.
We remain on track to achieve our 2026 GEO sales guidance of 510,000 to 570,000 ounces, which does not include any potential contributions from Cobre Panamá.
While we expect to benefit from the recent approval of the processing of stockpiled ore at Cobre Panamá, GEO contributions for 2026 are expected to be relatively moderate, with the majority of deliveries anticipated in 2027. First Quantum estimates it will produce approximately 70,000 tonnes of copper from the processing of stockpiled ore. This would result in stream deliveries to Franco-Nevada of approximately 23,100 gold ounces and 265,000 silver ounces.
As a royalty and streaming company, our revenues are largely insulated from the sharp increase in oil prices. Our guidance continues to be based on the commodity price assumptions used at the beginning of the year. Should oil prices remain elevated, we would expect a positive impact on our Energy revenue. An increase of $10 relative to our assumed WTI price of $70 per barrel would be expected to increase oil revenue by approximately 12%. In Q1 2026, oil revenue amounted to $33.5 million. Natural gas liquids, which have seen similar price appreciation, contributed a further $5.3 million.
The following table presents our Q1 2026 actual performance compared to our 2026 guidance.
2026 Guidance (1) (2) Q1 2026 Actual Commodity Gold ounces sold (oz) 360,000 to 400,000 91,158 Silver ounces sold (oz) 4,700,000 to 5,500,000 1,417,077 PGMs ounces sold (oz) 32,000 to 37,000 7,834 Diversified revenue (millions) $245 to $285 $82.6 GEOs Sold (oz) 510,000 to 570,000 136,353
1 Our 2026 guidance assumes the following commodity prices: $4,500/oz Au, $75.00/oz Ag, $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas. GEOs for the 2026 period are calculated based on fixed conversion ratios based on the prices assumed in this 2026 guidance. 2 Our guidance does not reflect any incremental revenue from additional contributions we may make to the Royalty Acquisition Venture with Continental. Our guidance does not reflect any buy-backs which may be elected at the discretion of our operators with the exception of the buy-back of the Cascabel royalty and stream, which occurred in March 2026.
Q1 2026 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets amounted to 117,980 GEOs for Q1 2026, an increase of 17% from 100,623 GEOs in Q1 2025. This was primarily due to robust production at Antamina and South Arturo, and contributions from Porcupine and Côté Gold which royalties were acquired in April and June 2025, respectively.
South America:
Candelaria (gold and silver stream) – GEOs sold in Q1 2026 were lower than those sold in Q1 2025, as the prior period quarter included the sale of 3,333 GEOs from inventory held at December 31, 2024. In addition, production at the mine was lower compared to last year, which had the benefit of higher-grade ore from Phase 11. Lundin Mining expects production to be weighted towards H2 2026 when it expects to access higher grade ore from Phase 12. Antapaccay (gold and silver stream) – GEOs sold in Q1 2026 were higher than those sold in Q1 2025, primarily due to mine sequencing and timing of shipments. Antamina (22.5% silver stream) – Silver ounces sold in Q1 2026 were higher than in Q1 2025. The increase in deliveries is attributable to higher silver grades in the current period and timing of shipments. Tocantinzinho (gold stream) – GEOs sold in Q1 2026 were relatively consistent with those sold in Q1 2025. Gold production was lower in the quarter than in previous quarters due to planned processing of lower grade ore. G Mining Ventures expects production to be weighted towards H2 2026 as higher-grade mineralization becomes available in accordance with the mine plan. GEOs sold in the prior year quarter also included the sale of 667 GEOs from inventory held at December 31, 2024. Condestable (gold and silver stream) – There were no GEO deliveries from Condestable during the quarter as the stream transitioned from fixed deliveries to variable deliveries. Variable deliveries for the Condestable stream are due 15 days following the end of each quarter. 3,146 GEOs attributable to the mine's Q1 2026 production period were received in April 2026. This compares to 2,994 GEOs sold in Q1 2025. Yanacocha (1.8% royalty) – GEOs from our Yanacocha royalty were higher in Q1 2026 than in Q1 2025, with strong contributions from the mine which produced 144,000 gold ounces in the current period. Newmont anticipates total production for 2026 of approximately 460,000 gold ounces.
Central America & Mexico:
Guadalupe-Palmarejo (50% gold stream) – GEOs sold in Q1 2026 were slightly lower than in Q1 2025, as the prior period quarter included the sale of 2,216 GEOs from inventory held at December 31, 2024. In February 2026, Coeur Mining announced an increase in gold mineral reserves of 40%, extending the mine life by approximately five years. Cobre Panamá (gold and silver stream) – During the quarter, we sold 935 GEOs in connection with the sale of concentrate that had remained on site when production was suspended in November 2023. As a result of the approval of the processing of stockpiled ore at Cobre Panamá, we expect additional stream deliveries of approximately 23,100 gold ounces and 265,000 silver ounces. Deliveries for 2026 are expected to be relatively moderate, with the majority of deliveries anticipated in 2027.
Canada:
Côté Gold (7.5% GMR) – GEOs from Côté were lower in Q1 2026 than in Q4 2025, as the mine produced 74,700 gold ounces (100% basis) compared to 87,200 ounces in Q4 2025. Throughput in the quarter was limited by unplanned conveyor downtime. Performance improved in April 2026. In addition, gold production is expected to be more heavily weighted towards H2 2026 based on expected higher grades as determined by the scheduled mine sequence. An updated mineral resource estimate for Côté is planned for Q2 2026, followed by a technical report that is on track by year-end and is expected to outline a larger-scale mine incorporating both the Côté and Gosselin zones. Detour Lake (2% royalty) – Agnico Eagle reported strong production from Detour during the quarter driven by higher availability and productivity of the hauling fleet. Development activities for the underground project continued, with the exploration ramp reaching a depth of 147 metres and overburden removal commencing for the conveyor‑ramp portal. Exploration drilling, which totalled 39,052 metres during the quarter, continued to expand and infill the mineralization below and to the west of the mineral resource pit. Hemlo (50% NPI and 3% NSR) – We earned 5,841 GEOs in Q1 2026, a decrease compared to 6,347 GEOs in Q1 2025. GEOs recognized in the current period included 2,100 GEOs related to Q4 2025. Hemlo Mining Corporation continued to advance several optimization initiatives during the quarter, including transitioning to an owner-operated model, launching a 130,000-metre drill program, and advancing an updated mineral resource estimate and mine plan. Porcupine (4.25% royalty) – In April 2026, Discovery Silver reported strong exploration results at all operations, including multiple high-grade intersections from resource conversion and extension drilling at Hoyle Pond and Borden, favourable drill results within and along strike of current resources at Pamour, and encouraging results from district exploration drilling at Owl Creek. In March 2026, Discovery announced the acquisition of Glencore's Kidd Operations which will provide Discovery with the ability to potentially double production from their Timmins complex. Greenstone (3% royalty) – Equinox Gold reported operational improvements in Q1 2026, with winter mining rates averaging 180 ktpd, consistent with expectations. Mill throughput exceeded nameplate capacity of 27 ktpd for 51% of days in Q1 2026 compared to 36% in Q4 2025. Valentine (3% royalty) – Equinox Gold reported that the ramp-up is progressing well, with the mine averaging 90% of nameplate capacity for Q1 2026. Once operating at design capacity, Valentine Gold is expected to produce between 175,000 and 200,000 ounces of gold annually. Equinox is also continuing to advance the Phase 2 expansion which would increase average annual production to approximately 223,000 ounces for ten years. Musselwhite (5% NPI) – In April 2026, Orla Mining continued to report exploration success at Musselwhite, with stacked extension zones expanding the mine trend by more than two kilometers and providing for significant mine life extension. Surface drilling within 10km of the mill identified multiple targets for potential open-pit satellite deposits, including at Camp Bay which is covered by our NPI. Sudbury (gold and PGM stream) – GEOs sold from our Sudbury stream were higher in Q1 2026 than in Q1 2025. Production relates to the McCreedy West Mine operated by Magna Mining. Since acquiring the assets in January 2025, Magna continues to evaluate production opportunities at McCreedy West as it continues to receive new diamond drilling information and optimizes its plan to increase production and profitability. Eskay Creek (2.5% royalty) – Skeena Resources reported that construction was 49% complete as of February 28, 2026 and that the project remains on schedule, with initial production targeted for Q2 2027 and commercial production for Q3 2027. In April 2026, Skeena raised $750 million through the issuance of senior secured notes. Canadian Malartic (1.5% royalty) – At Odyssey, production from the East Gouldie ramp commenced in March 2026, three months ahead of schedule. Gold production was in line with plan at approximately 27,400 ounces, with Odyssey expected to contribute approximately 120,000 ounces of gold in 2026. It is estimated that Franco-Nevada's East Gouldie claims cover approximately 28% of the East Gouldie reserve, with drilling continuing to extend East Gouldie to the east in both the upper and lower portions of the deposit. For 2026, Franco-Nevada estimates 600-700 GEOs will be received from our royalty interest at Canadian Malartic.
U.S.:
Stillwater (5% royalty) – Sibanye-Stillwater reported that its US PGM Operations were converting its stoping technique to allow increased volumes mined. The phased implementation is expected to be completed by H2 2028. Sibanye-Stillwater expects steady-state production of approximately 410,000 ounces by 2029, with Stillwater West providing future optionality and upside. South Arturo (4-9% royalties) – GEOs sold in Q1 2026 were higher than in Q1 2025, as Nevada Gold Mines continues to mine the South Arturo pit in 2026, in line with the Carlin mine plan. Bald Mountain (1-5% royalties) – Kinross reported that the Redbird project advanced across several key areas during the quarter, including mining, construction of processing infrastructure, and earthworks for the heap leach pad extension. The Redbird project, along with five additional satellite pits, is expected to incrementally produce a total of 640,000 gold ounces and extends the mine life to 2032. i-80 (1.5% royalty) – In March 2026, i-80 completed a recapitalization plan which is expected to fully fund its development plan through Phase 1 and Phase 2, with a path to funding Phase 3. In April, i-80 announced positive assay results from its drilling campaign at the Archimedes project. i-80 commenced construction of Archimedes in Q3 2025.
Rest of World:
Western Limb (gold and platinum stream) – GEOs sold in Q1 2026 were lower than in the prior year quarter. Deliveries received in Q1 2025 related to four months of production, commencing from the effective date of the agreement (September 1, 2024) through December 31, 2024. Tasiast (2% royalty) – GEOs from our Tasiast royalty were higher than in Q1 2025, due to higher production supported by higher grades. Subika (Ahafo) (2% royalty) – GEOs from our Subika (Ahafo) royalty were lower in Q1 2026 than in Q1 2025 as mining activities in the Subika open pit were completed as planned in Q3 2025. Production on royalty ground continues at the Subika Underground, where Newmont plans to increase its investment in exploration and advanced projects.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $82.6 million in revenue, compared to $74.8 million in Q1 2025. When converted to GEOs, our Diversified assets contributed 18,373 GEOs, compared to 25,962 GEOs in Q1 2025. The lower GEOs are due to using a higher gold price for conversion ($4,500 per ounce for the current period).
Other Mining:
Vale (iron ore royalty) – Revenue from the Vale royalty increased when compared to Q1 2025, largely driven by the inclusion of sales from the Southeastern System following the achievement of the cumulative sales threshold of 1.7 billion tonnes of iron ore in April 2025. LIORC – Revenue from our attributable interest on the Carol Lake mine in Q1 2026 was lower than in Q1 2025. LIORC declared a cash dividend of C$0.30 per common share in the current period, compared to C$0.50 in Q1 2025. Production at IOC in Q1 2026 was lower due to adverse weather and ongoing challenges including mine equipment reliability. Ring of Fire – In March 2026, the government of Ontario released an accelerated plan for all‑season road construction into the Ring of Fire, with construction scheduled to commence in mid-2026. The Ontario government has also signed new economic partnerships with Marten Falls First Nation and Webequie First Nation. In December 2025, the Ontario and Canadian federal governments signed a cooperation agreement aimed at eliminating duplicative environmental and impact assessment processes through the "One Project, One Process" framework.
Energy:
U.S. (various royalty rates) – Revenue from our U.S. Energy interests increased to $43.0 million in Q1 2026, compared to $41.8 million in Q1 2025. The increase was driven by higher production at our Haynesville interests, and higher realized gas prices at Marcellus due to weather-related seasonality. Canada (various royalty rates) – Revenue from our Canadian Energy interests was $16.4 million in Q1 2026, compared to $16.2 million in Q1 2025 due to higher realized oil prices. Our Weyburn NRI benefited from stronger pricing and lower expenses compared to Q1 2025.
Dividend Declaration
Franco-Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of US$0.44 per share. The dividend will be paid on June 25, 2026, to shareholders of record on June 11, 2026 (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. The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price. The Company may, from time to time, in its discretion, 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. Participation 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 news 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 and Details for Q1 2026 Conference Call
The complete Consolidated 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 Q1 2026 quarterly results. Interested investors are invited to participate as follows:
Conference Call and Webcast: May 13th 8:00 am ET Dial‑in Numbers: Toll‑Free: 1-888-510-2154
International: 437-900-0527 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): emportal.ink/4eu8kF3 Webcast: www.franco-nevada.com Replay (available until May 20th): Toll‑Free: 1-888-660-6345
International: 289-819-1450
Pass code: 31601#
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.
Forward-Looking Statements
This news 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 resources and mineral reserves 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, any ongoing or future audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panamá mine. In addition, statements relating to mineral resources and mineral reserves, GEOs or mine lives 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 mineral resources and mineral reserves, GEOs or mine lives 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, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Brazilian real, 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; tariff and other trade measures that may be imposed by the United States and proposed retaliatory measures that may be adopted by its trading partners; the adoption and implementation 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 mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from mineral 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 future pandemics; and the integration of acquired assets. The forward-looking statements contained herein 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 (i) the outcome of any ongoing or future audits by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panamá mine. 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 as well as Franco-Nevada's most recent Management's Discussion and Analysis 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 hereof 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.
ENDNOTES:
1. Gold Equivalent Ounces ("GEOs") and Net Gold Equivalent Ounces ("Net 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. Where the Company receives gold and silver bullion in-kind as payment for its royalties, GEOs are recognized at the time of receipt of such bullion. 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. Beginning in 2026, the Company adopted fixed GEO conversion ratios based on the pricing assumptions outlined in our guidance. This methodology replaces our previous methodology which was based on variable GEO conversion ratios using prevailing market prices. Our 2026 guidance, as disclosed in our 2025 MD&A filed on March 10, 2026, assumed the following commodity prices: $4,500/oz Au, $75.00/oz Ag, $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas. GEOs for the 2026 period are calculated based on fixed conversion ratios based on the prices assumed in this 2026 guidance. Net GEOs are GEOs sold, net of direct operating costs, including for our stream GEOs, the associated ongoing cost per ounce.
Calculation of Net Gold Equivalent Ounces:
For the three months ended March 31, (expressed in millions, excepts GEOs and Gold Price) 2026 2025 GEOs 136,353 126,585 Less: Cash Costs $ 46.5 $ 38.5 Divided by: Gold price per ounce $ 4,500 $ 2,863 10,333 13,447 Net GEOs 126,020 113,138
2. NON-GAAP FINANCIAL MEASURES:
Adjusted Net Income, Adjusted Net Income per share, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial measures with no standardized meaning under International Financial Reporting Standards ("IFRS Accounting Standards") 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 financial measure under IFRS Accounting Standards, refer to the below 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 months ended March 31, 2026 dated May 12, 2026 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. Change in Composition of Adjusted Net Income – Gains on buy-backs of royalty and stream interests: Effective Q1 2026, the Company updated the composition of its Adjusted Net Income (and related per share and margin amounts) to no longer adjust for gains on contractual buy-backs of royalty and stream interests. Previously, gains on buy-backs were an adjusting item when calculating Adjusted Net Income (and related per share and margin amounts). Management continues to adjust for gains or losses on sales on discretionary sales of mineral interests when calculating these non-GAAP measures. Management believes that this change more appropriately reflects the Company's operating performance as contractual buy-backs are embedded in the terms of many of the Company's royalty and stream interest agreements, such that they occur in the ordinary course and are an integral part of Franco Nevada's royalty and stream business. Unlike less common discretionary sales of mineral interests, these transactions are evaluated by management when assessing overall returns from our royalty and stream interests, and accordingly, we believe such gains should not be eliminated for purposes of calculating Adjusted Net Income and related per share amounts, when evaluating performance for investors. This change is reflected on a full retrospective basis. 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 losses and reversal related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests (excluding gains on buy-backs of royalty and stream interests) and investments; impairment losses and expected credit losses related to equity investments, loans receivable and other financial instruments, changes in fair value of investments, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; the impact of income taxes on these items; income taxes related to the reassessment of the probability of realization of previously recognized or de-recognized deferred income tax assets; and income taxes relating to the revaluation of deferred income tax assets and liabilities as a result of statutory income tax rate changes in the countries in which the Company operates. Adjusted Net Income Margin is a non-GAAP financial measure which is defined by the Company as Adjusted Net Income divided by revenue. 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; impairment losses and reversals related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; gains on buy-backs of royalty and stream interests, impairment losses and expected credit losses related to equity investments, loans receivable and other financial instruments, changes in fair value of investment, loans receivable and other financial instruments, and foreign exchange gains/losses and other income/expenses. Adjusted EBITDA Margin is a non-GAAP financial measure which is defined by the Company as Adjusted EBITDA divided by revenue.
Reconciliation of Non-GAAP Financial Measures:
For the three months ended March 31, (expressed in millions, except per share amounts) 2026 2025 Net income $ 468.6 $ 209.8 Foreign exchange gain and other income (12.4) (5.7) Tax effect of adjustments 2.1 1.5 Adjusted Net Income $ 458.3 $ 205.6 Basic weighted average shares outstanding 192.8 192.6 Adjusted Net Income per share $ 2.38 $ 1.07
For the three months ended March 31, (expressed in millions, except Adjusted Net Income Margin) 2026 2025 Adjusted Net Income $ 458.3 $ 205.6 Divided by: Revenue 650.7 368.4 Adjusted Net Income Margin 70.4 % 55.8 %
For the three months ended March 31, (expressed in millions, except per share amounts) 2026 2025 Net income $ 468.6 $ 209.8 Income tax expense 126.3 59.8 Finance income (5.5) (11.1) Finance expenses 0.8 0.7 Depletion and depreciation 77.9 68.4 Gain on buy-back of royalty and stream interests (63.8) — Foreign exchange gain and other income (12.4) (5.7) Adjusted EBITDA $ 591.9 $ 321.9 Basic weighted average shares outstanding 192.8 192.6 Adjusted EBITDA per share $ 3.07 $ 1.67
For the three months ended March 31, (expressed in millions, except Adjusted EBITDA Margin) 2026 2025 Adjusted EBITDA $ 591.9 $ 321.9 Divided by: Revenue 650.7 368.4 Adjusted EBITDA Margin 91.0 % 87.4 %
3. AVAILABLE CAPITAL: Available Capital comprises our cash and cash equivalents of $714.7 million as at March 31, 2026, our equity investments (excluding our long-term investment in Labrador Iron Ore Company of Canada) of $1,142.4 million and the amount available to borrow under our $1.0 billion corporate revolving credit facility and its accordion of $500.0 million as at March 31, 2026. Subsequent to quarter-end, on May 8, 2026, FNIC entered into a revolving credit facility of $500.0 million with a $250.0 million accordion.
FRANCO-NEVADA CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (in millions of U.S. dollars)
At March 31, At December 31, 2026 2025 ASSETS Cash and cash equivalents $ 714.7 $ 670.9 Receivables 267.5 241.9 Gold and silver bullion and stream inventory 123.3 40.1 Other current assets 22.1 68.5 Current assets $ 1,127.6 $ 1,021.4 Royalty, stream and working interests, net $ 6,307.2 $ 6,043.1 Investments 1,322.0 1,141.3 Deferred income tax assets 19.8 23.2 Other assets 21.0 12.4 Total assets $ 8,797.6 $ 8,241.4 LIABILITIES Accounts payable and accrued liabilities $ 49.7 $ 44.9 Income tax liabilities 133.5 78.1 Current liabilities $ 183.2 $ 123.0 Deferred income tax liabilities $ 487.0 $ 440.7 Income tax liabilities 12.4 33.8 Other liabilities 8.3 8.6 Total liabilities $ 690.9 $ 606.1 SHAREHOLDERS' EQUITY Share capital $ 5,813.9 $ 5,803.4 Contributed surplus 16.5 21.6 Retained earnings 1,771.6 1,379.8 Accumulated other comprehensive income 504.7 430.5 Total shareholders' equity $ 8,106.7 $ 7,635.3 Total liabilities and shareholders' equity $ 8,797.6 $ 8,241.4
The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website
FRANCO-NEVADA CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (in millions of U.S. dollars and shares, except per share amounts)
For the three months ended March 31, 2026 2025 Revenue Revenue from royalty, streams and working interests $ 650.7 $ 365.5 Interest revenue — 2.9 Total revenue $ 650.7 $ 368.4 Costs of sales Costs of sales $ 46.5 $ 38.5 Depletion and depreciation 77.9 68.4 Total costs of sales $ 124.4 $ 106.9 Gross profit $ 526.3 $ 261.5 Other operating (income) expenses General and administrative expenses $ 9.2 $ 9.4 Share-based compensation expenses 6.2 5.7 Gain on buy-back of royalty and stream interests (63.8) — Gain on sale of gold and silver bullion (3.1) (7.1) Total other operating (income) expenses $ (51.5) $ 8.0 Operating income $ 577.8 $ 253.5 Foreign exchange gain and other income $ 12.4 $ 5.7 Income before finance items and income taxes $ 590.2 $ 259.2 Finance items Finance income $ 5.5 $ 11.1 Finance expenses (0.8) (0.7) Net income before income taxes $ 594.9 $ 269.6 Income tax expense 126.3 59.8 Net income $ 468.6 $ 209.8 Other comprehensive income, net of taxes Items that may be reclassified subsequently to profit and loss: Currency translation adjustment $ (51.9) $ 2.7 Items that will not be reclassified subsequently to profit and loss: Gain on changes in the fair value of equity investments at fair value through other comprehensive income ("FVTOCI"), net of income tax 133.7 148.8 Other comprehensive income, net of taxes $ 81.8 $ 151.5 Comprehensive income $ 550.4 $ 361.3 Earnings per share Basic $ 2.43 $ 1.09 Diluted $ 2.43 $ 1.09 Weighted average number of shares outstanding Basic 192.8 192.6 Diluted 193.2 192.9
The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website
FRANCO-NEVADA CORPORATION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (in millions of U.S. dollars)
For the three months ended March 31, 2026 2025 Cash flows from operating activities Net income $ 468.6 $ 209.8 Adjustments to reconcile net income to net cash provided by operating activities: Depletion and depreciation 77.9 68.4 Share-based compensation expenses 1.1 2.1 Gain on buy-back of royalty and stream interests (63.8) — Unrealized foreign exchange gain (1.3) (6.0) Deferred income tax expense 33.7 9.1 Gain on sale of gold and silver bullion (3.1) (7.1) Gain on derivative financial instruments (11.0) (0.1) Other non-cash items (0.2) (0.2) Gold and silver bullion from royalties received in-kind (47.4) (19.2) Proceeds from sale of gold and silver bullion 15.1 30.2 Receipt of deposits and interest from Canada Revenue Agency 49.5 — Increase in other assets (8.2) — Operating cash flows before changes in non-cash working capital $ 510.9 $ 287.0 Changes in non-cash working capital: Increase in receivables $ (25.6) $ (8.4) (Increase) decrease in other current assets (3.2) 8.9 Increase in accounts payable and accrued liabilities 38.3 1.4 Net cash provided by operating activities $ 520.4 $ 288.9 Cash flows used in investing activities Acquisition of royalty, stream and working interests $ (449.4) $ (505.2) Acquisition of investments (35.3) (52.3) Proceeds from buy-back of royalty interest 97.5 — Acquisition of gold bullion from buy-back of stream interest (10.2) — Acquisition of energy well equipment (0.3) (1.2) Acquisition of property and equipment (0.2) (2.0) Proceeds from sale of investments — 9.7 Net cash used in investing activities $ (397.9) $ (551.0) Cash flows used in financing activities Payment of dividends $ (80.5) $ (70.2) Capitalized debt issue costs (0.7) — Proceeds from exercise of stock options 0.4 3.4 Net cash used in financing activities $ (80.8) $ (66.8) Effect of exchange rate changes on cash and cash equivalents $ 2.1 $ 5.7 Net change in cash and cash equivalents $ 43.8 $ (323.2) Cash and cash equivalents at beginning of period $ 670.9 $ 1,451.3 Cash and cash equivalents at end of period $ 714.7 $ 1,128.1 Supplemental cash flow information: Income taxes paid $ 58.1 $ 47.5 Dividend income received $ 1.6 $ 3.3 Interest and standby fees paid $ 0.8 $ 1.0
The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our websiteCision
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