Q3 2023 Franco-Nevada Corp Earnings Call

Speaker 1: A business is designed to weather such events, and regardless of the outcome, a business will remain robust, generating strong cash flows with high margins.

Designed to whether such events and regardless of the outcome business will remain robust generating strong cash flows with high margins.

Speaker 1: We have no debt and can cash balance a 1.3 billion.

We have no debt and I can cash balance of $1 3 billion.

Including our Undrawn facilities available capital for deployment is $2 3 billion.

Speaker 1: including our own facilities, our available capital for deployment is $2.3 billion.

Speaker 1: continue to be the capital provider of choice for many players where equity capital is difficult to raise and debt capital is increasingly expensive. With that...

We continue to be the capital provider of choice for many players where equity capital is difficult to raise and debt capital is increasingly expensive.

I'll turn it over to Sandy.

Speaker 2: Thanks, Paul. Good morning, everyone. Our diverse role team stream portfolio continue to generate strong cash flows and high margins during third quarter 2023. If you turn to slide four, the chart shows Gold of Global announced this sold for third quarter 2023, along with the previous four quarters.

Thanks, Paul Good morning, everyone, our diverse royalty and stream portfolio continued to generate strong cash flows and high margins during third quarter of 2023.

If you turn to slide four the chart shows gold equivalent ounces sold for third quarter 2023, along with the previous four quarters.

Speaker 2: Geosold in the quarter were 160,848. A 5% decreased relative to second quarter 2023, and a 9% decreased relative to the comparable period for the prior year.

<unk> sold in the quarter were 160, 848, 5% decrease relative to second quarter, 2023, and a 9% decrease relative to the comparable period for the prior year.

Speaker 2: Of total geo-sold for the quarter precious metals, we're 125,337, an increase of 4% from St. Quarter last year.

Of total Geo sold for the quarter precious metals were 125337, an increase of 4% from same quarter last year.

Speaker 2: For the quarter, the largest contributors for precious metal geodes were Cobra Panema, Candelary and Antipokite, with the increased year-over-year being from Cobra Panema and Guadalu.

For the quarter, the largest contributors for precious metal Geos, where Cobra Panama <unk>.

With the increase year over year being from Cobre, Panama and Guadalupe.

Speaker 2: Probrae Panama delivered 33% more Geos than the same Corridor in prior year. This was driven by higher copper grades and the continued ramp up of the CP100 expansion project.

Cobre, Panama delivered 33% more geos in the same quarter in prior year.

This was driven by higher copper grades and the continued ramp up of the CP 100 expansion project.

Guadalupe Geos sold were higher by 14% relative to the comparable period from the prior year with the increase being due to higher average grades being mined.

Speaker 2: Waterloo Bay Geo Sold were higher by 14% relative to the comparable period from the prior year with the increase being due to higher average grades being.

Speaker 2: One asset which did have a weaker quarter for us compared to prior year was Antimena.

One asset, which did have a weaker quarter for us compared to prior year was antonietta.

Speaker 2: At Antimena, we had approximately 30% lower geosolid in prior year. As the operator was impacted by a tropical cyclone that affected perusing northern region in April 2023.

At <unk>, we had approximately 30% lower geos sold in prior year as the operator was impacted by a tropical cyclone that affected Peru's Northern region in April 2023.

Speaker 2: As you will recall, there is a one-quarter lag for delivery of silver ounces from Antamina.

As you will recall there is a one quarter lag for delivery of silver ounces from eight to Mena.

Speaker 2: The deliveries in third quarter related to production from April to June 2023.

The deliveries in third quarter related to production from April to June 2023.

Speaker 2: For our diversified portfolio, we did record lower Geos and revenue in the quarter, as energy prices were lower compared to prior year.

For our diversified portfolio, we did record lower geos and revenue in the quarter as energy prices were lower compared to prior year.

Third quarter 2023 saw continued volatility in commodity prices as highlighted on slide five.

Speaker 2: Third quarter 2023 saw continued volatility in commodity prices as highlighted on slide 5.

Speaker 2: Prasas metals did seem to improve in year-over-year with average gold prices higher by 11.6% silver by 22.6% and platinum by 5.1%. However, palladium and energy prices were down significantly.

Russias metals did see an improvement year over year with average gold prices higher by 11, 6% silver by 22, 6% in platinum by five 1%, However, palladium and energy prices were down significantly.

A large component of our diversified geos and revenue comes from our energy assets on a barrel of oil equivalent basis production was slightly lower than prior year.

Speaker 2: A large component of our diversified Geo's in revenue comes from our energy.

Speaker 2: On a barrel of oil equivalent basis, production was slightly lower than prior year.

Speaker 2: However, a scene on the bar chart on slide six, those are larger retreating oil and gas prices.

However, as seen on the Bar chart on slide six there was a larger retreat in oil and gas prices.

Speaker 2: WTI average $82.26 of barrel in a quarter, lower by 10% versus the comparable quarter in prior year. And natural gas average $2.66 an MCF, lower by 66%.

<unk> averaged $82 26, a barrel in a quarter lower by 10% versus the comparable quarter in prior year and natural gas averaged $2 66, and Mcf lower by 66%.

Speaker 2: As a result, the low-energy prices impacted our geosold and revenue, with geosold from our energy assets being 43% lower in 3rd quarter of 2023 compared to prior year.

As a result of lower energy prices impacted our Geo sold and revenue with Geo sold from our energy assets being 43% lower than third quarter 2023 compared to prior year.

Slide seven highlights our total revenue and adjusted EBITDA amounts for the three months ended September 32023, and 2022 the portfolio continues to deliver consistent performance.

Speaker 2: Blight 7 highlights our total revenue and adjusted EBITDA amounts for the three months ended September 30, 2023 and 2022. The portfolio continues to deliver consistent performance.

Speaker 2: Revenue was 309.5 million for the quarter, slightly higher than prior year of 304.2 million, while adjusted EBITDA was relatively flat. At 255.1 million, compared to 256.7 million, in third quarter of 122.

Revenue was $309 5 million for the quarter slightly higher than prior year of $304 2 million, while adjusted EBITDA was relatively flat at $255 1 million compared to $256 7 million in third quarter of 2022.

Speaker 2: The company continued to generate a strong margin at 82.4% for the quarter.

The company continued to generate a strong margin at 82, 4% for the quarter.

As you turn to slide eight you will see the key financial results for the company as mentioned Geo sold were lower for the quarter, but revenue was higher due to higher average precious metal prices.

Speaker 2: As you turn to slide eight, you will see the key financial results for the company. As mentioned, GeoSold were lower for the quarter, but revenue was higher due to higher average pressures and mental price.

Speaker 2: On the cost side, we did have an increase in cost of sales, which was 48.9 million, compared to 42 million in third quarter 2022. The largest component of this is the per-ounce fixed cost we pay for streamouts.

On the cost side, we did have an increase in cost of sales, which was $48 9 million compared to $42 million in third quarter of 2022.

The largest component of this is the per ounce fixed costs, we pay for stream ounces we.

Speaker 2: We sold 97,275 stream ounces in third quarter compared to 90,237 in Europe .

We sold 97 275 stream ounces in third quarter compared to $92 37, a year ago.

Speaker 2: The police remained relatively flat at $68.1 million versus $68.5 million a year ago. And for third quarter of 2023, Adjust the net income was $175.1 million, or $0.91 per share, compared to $159.7 million, or 83% per share in prior year.

Depletion remained relatively flat at $68 1 million versus $68 5 million a year ago and for third quarter of 2023. Adjusted net income was $175 1 million or <unk> 91 per share compared to $159 7 million or 83% per share in prior year.

Speaker 2: Slide 9 highlights the continued diversification of the portfolio. As shown, 78% of our Q3 2023 revenue was generated by precious metals. This compares to 68% of Europe .

Slide nine highlights the continued diversification of the portfolio as shown 78% of our Q3 2023 revenue was generated by precious metals. This compares to 68% a year ago.

Speaker 2: The geographic revenue profile has revenue being source 88% from the Americas.

The geographic revenue profile has revenue being sourced 88% from the Americas.

Speaker 2: With respect to outfit diversification, Colbert Padama was our largest revenue generator at 22% of total revenue for the quarter, followed by Candelary and Nantobacchi.

With respect to asset diversification Cobra, Panama was our largest revenue generator at 22% of total revenue for the quarter followed by <unk>.

Speaker 2: The last chart highlights are operator diversity with first quantum being the largest at 22% of reps.

Last chart highlights our operator diversity with first quantum being the largest at 22% of revenue.

Speaker 2: Glython illustrates the strength of our business model to generate consistent high margins.

Slide 10 illustrates the strength of our business model to generate consistent high margins.

Speaker 2: On the slide you can see that cost of sales has remained fairly consistent over the period shown.

On the slide you can see that cost of sales has remained fairly consistent over the periods shown.

Speaker 2: The amount of cost of sales with depend on the mix of royalty versus streamed geos, including both mining and energy.

The amount of cost of sales will depend on the mix of royalty versus stream geos, including both mining and energy.

Speaker 2: Corporate administration costs, including stock-based compensation, was less than 2% of revenue for the quarter.

Corporate administration costs, including stock based compensation was less than 2% of revenue for the quarter.

Speaker 2: This can fluctuate quarter to quarter, but it's tended to average approximately 8 million each quarter historic.

This can fluctuate quarter to quarter, but it's tended to average approximately $8 million each quarter historically.

Speaker 2: In a rising commodity price environment, we expect to benefit fully as we do not expect our cost structure to change significant.

In a rising commodity price environment, we expect to benefit fully as we do not expect our cost structure to change significantly.

Speaker 2: Slide 11 summarizes the financial resources available to the company, when including our credit facility of $1 billion, the available capital is $2.3 billion at the end of September . The company continues to be debt-free and generated $236 million in operating cash flow during the quarter.

Slide 11 summarizes the financial resources available to the company when including our credit facility of $1 billion total available capital is $2 3 billion at the end of September.

The company continues to be debt free and generating $236 million in operating cash flow during the quarter.

Speaker 2: I will close for the quarter included 66.2 million Z mining ventures for the remainder of the $250 million stream deposit for TZ. The full deposit has now been funded.

Outflows for the quarter included $66 2 million to <unk> mining ventures for the remainder of the $250 million stream deposit for Ts at the full deposit has now been funded.

Speaker 2: We closed the Pasco Lama Rolte Transaction for 75 million and the company did declare dividends of 65.3 million during the quarter.

We closed the Pascua Lama royalty transaction for $75 million and the company declared dividends of $65 3 million during the quarter.

Speaker 2: On flight 12, we reiterate our guidance for the year, based upon updated commodity prices that's highlighted on the slide, and our expectations of production from our Royal Team Stream interest for the remainder of the year. We are maintaining our guidance range for total geosold of 640,000, so 700,000.

On slide 12, we reiterate our guidance for the year.

Based upon updated commodity prices as highlighted on the slide and our expectations of production from our royalty and stream interests for the remainder of the year, we are maintaining our guidance range for total Geo sold of 640000 700000.

Speaker 2: With respect to the low-rend of that range, due to the conversion of non-gold revenue to Geo's based on our revised commodity price.

With <unk>.

We expect to be near the lower end of that range due to the conversion of non gold revenue to geos based on our revised commodity prices for.

Speaker 2: For precious metals, the Geosold range is 490 to 530,000. Again, we expect to be near the low range of that range.

For precious metals. The Geo sold range is 490 to 530000 again, we expect to be near the lower end of that range.

Speaker 2: Turning to tax matters, as you are aware, the Canadian government has announced that it will be proceeding with the implementation of the 15 percent global minimum tax. We expect this to be effective January 2024. For Franklin Nevada, this will impact the tax associated with the income from our Barbados subsidiary, where the current corporate tax rate is less than 15 percent.

Turning to tax matters as you are aware the Canadian government has announced that it will be proceeding with the implementation of the 15% global minimum tax we expect this to be effective January 2024 for Franco Nevada. This will impact the tax associated with the income from our Barbados subsidiary, where the current corporate tax rate is less than 15.

<unk>.

Speaker 2: However, earlier this week, the Barbados government announced that they are proposing to raise their corporate tax rate to 9%. In addition, they are proposing to implement an additional 6% top-up tax for a company's whose parent entity is subject to the global minimum tax.

However earlier this week, the Barbados government announced that they're proposing to raise their local corporate tax rate to 9%. In addition, they are proposing to implement an additional 6% top up tax for companies, whose parent entity is subject to the global minimum tax.

Speaker 2: The specific Barbados legislation has not been released at this time. We will review and determine the impact once available. And now I'll pass it over to Gerry.

The specific Barbados legislation has not been released at this time.

We will review and determined the impact once available.

Now I will pass it over to Gerry as we're happy to answer any questions.

Of course.

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Now first question comes from the line of Heiko.

Speaker 3: Now first question comes from the line of Hica ile of HC Wainwright. Please go ahead.

H C. Wainwright. Please go ahead.

Good morning, Paul Saunders. Thank you.

Okay.

Speaker 4: Hey, with Antimena in your release, you stated that a quote of production at the mine was also impacted by Staglund Jakku, which constraints logistics in March and April of this year.

Hey, Anthony in your release you state.

Production at the mine was also impacted by cyclone Yahoo, which constrained logistics in March and April of this year, which is reflected in the deliveries we received in Q3 23.

Speaker 4: This was reflected in the deliveries we received in Q3 23.

Speaker 4: You sort of hinted at this in your prepared remarks, but just to clarify this again, this issue is completely in the review mirror now and given the delivery schedule that was agreed upon, and we can go back to our prior models on the slide, correct? In other words, there should not be any follow-through to this into Q4.

Sort of hinted at this in your prepared remarks, but just to clarify. This again. This issue is completely in the rearview mirror now and given that given the delivery schedule that was agreed upon and we can go back to our prior models almost slight correct in other words, there should not be any follow through into Q4, yes, yes that that related to.

Speaker 2: Yes, yes, that related to earlier in the year and that's been rectified so the delivery we would get in November .

Earlier in the year and that's been rectified so the delivery we would get in November.

Speaker 2: and will be from production from July 2nd.

We will be from production from July to September.

Speaker 4: That's how I figured it. And this one's a little bit more open-ended. I mean, I understand that the chart's looking quite pretty. Gold's up $240 over the past year. It's within $120, $130 of its annual high, and it's looking quite nice on the five-year chart as well.

Okay.

And this was a little bit more open ended I mean, I understand that the charts looking quite pretty goes up 240 books over the past year. So within a 120 $130 of its annual high and it's looking quite nicely five year chart as well.

Speaker 4: In the meantime, the GDX is close to its annual low. Franco-Nevada shares really aren't a big exception to all of this, though. Obviously, pre-market today is looking quite decent.

I mean on the GDS systems causes annual low Franco Nevada shares really are in the B all of those store re market today is quite decent.

Speaker 4: In your view, the market, the broader market, missing something, what are they looking for to properly reward your company? And then it's nesters, is it more ESG for broader bases, higher dividends? It is just people have been beaten on for too long. They don't care anymore. Anything you want to share with us that you're seeing from folks you talk with on the phone.

In your view as to market the broader market missing something what are they looking towards properly reward your company.

Or is it more ESG.

Broader base and higher dividends.

People have been beaten down for too long they don't care anymore of anything you want to share with us that youre seeing from folks who talk with on the phone.

Speaker 1: I go there and think a couple of things there and here the obvious one is the impacts of the co-repairment at the moment and that is how to clear it.

Heiko.

A couple of things there.

The obvious one is the impacts of cobre, Panama at the moment.

It is.

<unk>.

A clear impact on the stock.

Speaker 1: The other one and in terms of the performance of the stock and where we found the...

Yes.

Sure.

The other one in terms of the performance of the stock and where we have found that the.

Speaker 1: The value creation over time is we truly have a business that's not impacted by cost inflation.

The value creation over time as we truly have a business that's not impacted by cost inflation.

Speaker 1: and cost inflation has been such a big element that's eaten into the return of mining companies over time. So one, it's been protected on that aspect of the business.

And cost inflation has been such a big element thats eaten into the return of mining companies over time.

So walnuts.

Green protected on that aspect of the business.

Speaker 1: The other is that very deep portfolio and hand.

The other is we have a very deep portfolio.

Speaker 1: The core thing about the mining industry is so much of the value is created at the drill bit. And when the industry is able to drill at the capital and can make new discoveries inevitably, they do. And the beauty of our businesses, we are exposed to that. Both with our streams plus an extremely deep world people follow you. And it's that optionality. And it's why I'm spoken to a bit in my comment.

The core thing about the mining industry is so much of the value is created at the drill bit.

And when the industry is able to drill has the capital and can make new discoveries inevitably they do and the beauty of our businesses we are exposed to that.

Both with our streams plus an extremely deep royalty portfolio.

That optionality and this is why I spoke to it a bit in my in my comments.

Speaker 1: You know, we continually get good news as to what's happening in the expiration portfolio. And I think that's the element that ultimately drives the future value of the company.

We continue to get good news as to what's happening in the exploration portfolio and I think thats the element that ultimately drives the future value of the company.

Fair enough.

Speaker 4: Fair enough. I mean, Cobra Panama obviously doesn't really have a whole lot of impact on the GDX, it's really just you, but I agree with the rest of your answer and I'll get back in queue. Thank you so much.

Cobre, Panama, obviously doesn't really have all of the impact on the Gtx is really just you, but I agree with the rest of your answer and I'll get back in queue. Thank you so much.

Okay.

Speaker 3: Just to remind participants if you would like to ask a question, please press the star and then the number one on your telephone.

Just to remind participants if you would like to ask a question.

Please press the Star then the number one on your telephone keypads.

Speaker 3: And there are no further questions I've done corrected. We have a question from the line of Brian MacArthur of Raymond James.

And there are no further questions I'll stand corrected we have a question from the line of Brian Macarthur of Raymond James. Please go ahead.

Speaker 3: Hey Brian MacArthur of Raymond Dremes, you may go ahead and ask your question. If you have your phone or mute, could you please unmute?

Hey, Brian Macarthur of Raymond James You May go ahead and ask you a question. If you have your phone on mute could you. Please on mute.

Speaker 5: Good morning. Sorry about that. I was wondering if you could just go through the Barbados again. Sorry, I may have missed it because my line cut out. But, sorry, is it not just going to be 15% going forward, like everything else in global, of minimum tax? Or is there something else you were kind of going through? Because I sort of heard nine and six when you went through it. If you could just go through that again, that would be helpful. Thank you.

Good morning.

Sorry about that.

I was wondering if you can just go through the Barbados again, sorry, I may have missed it with my line cut out but im.

Sorry.

Is it just going to be 15% going forward like everything else in global <unk>.

A minimum tax or is there something else.

Going through because I thought I heard nine six when you went through it if you could just go through that again that'd be helpful. Thank you.

Speaker 2: So the way the global minimum tax works, Brian , is that...

Sure.

So the way the global minimum tax works add Brian is that.

Speaker 2: whatever the difference is between the 15% and the local corporate tax rate. You'll pay a top-up, you were supposed to pay a top-up tax in Canada based on accounting income.

And whatever the differences between the 15% and the local corporate tax rate Youll pay a top up you were supposed to pay a top up tax in Canada based on accounting income.

Speaker 2: So for example, we were low single digits in Barbados and now the 15% so assume the delta is 13%. You would pay that 13% based on accounting income. So there would be a tax tax payable. Barbados is now increasing their corporate tax rate from low single digits to 9% least they propose to do so.

For example, we were low single digits in Barbados and now the 15%. So assume that Delta is 13% you would pay that 13% based on accounting income. So there would be a cash tax payable Barbados is now increasing their corporate tax rate from low single digits to 9% leased a propel.

To do so as a result that will be based on regular tax tax where you get the deposit treatment and then what they're doing is proposing to implement a top up tax from nine to 15, which would be based on accounting.

Speaker 2: As a result, that will be based on regular tax tax, where you get the deposit treatment. And then what they're doing is they're proposing to implement a top-up tax from nine to 15, which would be based on accounting. And so for there, there would be a cash tax payable. So essentially, we're still determining the impact, but we think it will be possible.

And so for there there wouldn't be a cash tax payable.

So essentially.

We're still determining the impact, but we think it will be positive.

Speaker 5: So just if I look at your global portfolio, though, will you not then just pay like on all the streams that are run through their 15% and then the other stuff that's outside for the other structured ones, you'll pay the rate in that jurisdiction on a consolidated basis, so you'll probably get something just weighted slightly higher than

So just about looking at global portfolio, though youre not then just pay like on all the screens that are run through their 15% and then the other stuff.

And the other structured one youll pay the rate in that.

<unk> on a consolidated basis, you'll probably get pumping just weight it slightly higher than.

Speaker 2: you know, 15%. Is that fair? Or how should I think about that? It's just it's the split between what's going to be calculated based on tax versus accounting.

15% is that fair or how should I think about that.

Just as the split between what's going to be calculated based on tax versus accounting.

Speaker 2: There is an impact to that. We can go offline, Brian . I can walk you. Okay.

There is an impact to that we can go offline, Brian I can walk you okay.

Great. Thanks very much.

Speaker 3: Your next question comes from the line of Agendaing of Agendae Assets Management. Please go ahead.

Your next question comes from the line of Adrian Day of Adrian Day asset management. Please go ahead.

Speaker 6: Yes, good morning. I was just wondering if you could update us how your view in the market, you know, for new streams and possibly royalties, but new streams. Yeah, yeah.

Yes, good morning.

I was just wondering if you could update us how you'll deal in the market.

New strains.

And possibly royalties <unk> streams.

Yes, yes.

Hello, Adrienne, it's Ian Great speaking.

Speaker 7: I'm the major in the C.E. and Gray speaking. As Paul comments, the Gold Market is quite constrained for capital. So we are seeing good opportunities there for additional royalties and streams as you saw with our recent Machino transaction. So we're looking forward to doing more there and I do see it as being relatively buoyant, especially on the Gold side.

As Paul commented the gold market is quite constrained for capital. So we are seeing good opportunities there.

For additional royalties and streams as you saw with our recent machine no transaction. So we're looking forward to doing more there and I do see it as being relatively full and especially on the gold side.

Speaker 6: mostly development, helping development. Yes, I think that's a very careful...

Mostly development.

<unk> development.

Yes, I think Thats a fair characterization.

Okay. Thank you.

Speaker 3: And there are no further questions on the phone line at this time. I will now turn the Q&A session over to Candida Hayden who will take questions from the web.

And there are no further questions on the phone line at this time I will now turn the Q&A session over to Ken Peter Haden, who will take questions from the webcast.

Thank you Jerry our first question comes from Alex Richardson.

Speaker 8: Our first question comes from Alex Richardson from a NAND asset management.

And then to asset management.

Speaker 8: Why did you decide to become so reliant on Cobra Panama for future geogrowth given it is not a gold property?

Why do you decide to become reliant on cobre, Panama for future year growth given it is not a growth property.

Okay.

Alex.

Sure.

Speaker 1: Our business has expanded over time, and you know the history of the company is we've bought many royalties on gold properties, and those have shown tremendous optionality and growth over time. But a lot of the growth in our business, as you correctly point out, has been buying precious metal streams on big copper assets.

Our businesses is.

<unk> expanded over time in the history of the company is with both many royalties on gold properties and those have had tremendous shown tremendous optionality and growth over time.

But a lot of the growth in our business as you correctly pointed out has been buying precious metal streams on copper assets.

Speaker 1: and that has been a very good element.

And that has been.

Very good elements.

Speaker 1: It's allowed us to grow the business faster. You know, principally, copper assets tend to be much larger than gold assets. They also tend to have much longer life spans. So if you look at it...

Brought us to grow the business faster, principally copper assets tend to be much larger than gold assets.

They also tend to have much longer life spans.

So if you look at anthem Mena at Mackay Campbell area all of those we get the precious metal form those copper assets.

Speaker 1: At the Pekai Candle Area, all of those we get the precious metafromose copper assets. Not only of those assets done very well, all of them have outperformed our assumptions and acquisition. They have very long lives, and we've also seen tremendous life expansion from those assets. Probably a good example is Candle Area.

Not only have those assets done very well all of them have outperformed our assumptions at acquisition.

They have very long lives and we've also seen tremendous life expansion from those assets probably a good example is candle area.

Speaker 1: Candle area when we bought, when we helped finance London to acquire that asset six or so years ago. It had a 14 year mind life.

Caballero, when we book when we help find.

Finance lundin to acquire that asset.

Or so years ago and had a 14 year mine life.

Speaker 1: Fundy mining has had tremendous success with the exploration program. And when we look forward today, the GoFord mine life is in the order of 25 years. So they are long-life assets, but also have potential to get better over time. So it's been a good business for us.

On the mining such tremendous success with exploration program.

And when we look forward today that the go forward mine life is in the order of 25 years. So.

Yes.

They are long life assets, but also have the potential to get better over time. So it's been a good business for us.

Hello.

Speaker 8: Our next question comes from a private investor. Any provisions taken on the Cobrae Panama situation?

Our next question comes from a private investor any provisions taken on the Cobra Panama situation.

Speaker 2: Hi, no provisions as is out there from first quantum and ourselves the mine is still operating operating very well So there's no provision no no review or impairment at this time

No provision as is out there from first quantum and ourselves to mine is still operating operating very well.

So there is no provision no no review of our impairment at this time.

Speaker 8: Thank you. Our next question comes from Winxanzo at Seven Pillars Capital, Managed Ramp.

Our next question comes from Vincenzo at seven pillars capital management.

Speaker 8: Could you please give me some color on the contingency plan at first quantum, co-grade Panama, where to go into arbitration? How should we think about potential claims that Frank and Nevada might have on an arbitration result, or if any potential expropriation of co-grade Panama should occur? Is there any insurance or antibiotic in claim?

Could you. Please give me some color on the contingency plan, if first quantum Cobra, Panama, where to go into arbitration, how should we think about potential claim.

Franco Nevada might have.

On an arbitration results or if any potential ex appropriate patients.

Panama should occur is there any concern.

Franco Nevada can claim.

Speaker 1: Yes, so we hope it doesn't go in that direction.

Yes so.

So we hope it doesn't go in that direction.

Speaker 1: But if the concession were taken away from the operators, the one route for them is arbitration. What we've seen in the past is in some of the water circumstances, the international operators have ruled in favor of the mining companies. So you typically have seen settlements for the companies that have been meaningful. They do have real teeth.

But.

If the concession were taken away from the operators the <unk> root for them is arbitration.

What we've seen in the past this and similar sort of circumstances and national operators have ruled in favor of the mining companies typically have seen settlements for the companies that have been meaningful they do have real piece.

Speaker 1: So they ultimately do get paid. I agree with that our contract is if there is a settlement that we would get a proportionate share of that sale.

So they ultimately.

Do you get paid our agreement at our contract is if there is a settlement that we would get a proportionate share of that settlement.

Speaker 8: Thank you, Paul. Next question is from Diego at North Star Capital Management. In a scenario where corporate panorama is expropriated, what kind of actions would you legally expect?

Thank you Paul next question is from Diego <unk>.

First our capital management in a scenario, where Cobra Panama is expertly created what kind of actions with zoom illegally expected.

Speaker 1: Here I would, in terms of the comments that we've already made, the action to be taken is by the operators.

Yes, I would.

In terms of the comments that we've already made.

The action to be taken as by the operators.

Speaker 1: The arbitration is the most likely clause for them there. Again, hope they don't put down that clause and then our protections are already outlined.

The arbitration is the most likely course for them, they're again hope they don't go down that cost and then our protection so absolute already outlined.

Thank you Paul there are no further questions from the webcast. This concludes our third quarter 2023 results conference call and webcast, we expect to release our year end 2023 results.

Speaker 8: Thank you, Paul. There are no further questions from the webcast. This concludes our third quarter, 2023 results call for school and webcast. We expect to release our year end 2023 results. Aftermarket close on March 5th with a conference call held the following morning. Thank you for your interest in Frank, Nevada. Thank you, Paul.

After market close on March 5th with a conference call held the following morning. Thank you for your interest in Franco Nevada.

Yes.

Okay.