Q2 2024 Franco-Nevada Corp Earnings Call

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Operator: This call is being recorded on August 14, 2024. At this time, all lines are in a listen-only mode.

Frank Konevada: Good morning and welcome to Franco Nevada Corporation's second quarter 2024 results conference call and webcast.

Speaker Change: This call is being recorded on August 14, 2024. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a Q&A session, where you may ask a question through the phone line or webcast.

Operator: Following the presentation, we will conduct a Q&A session where you may ask a question through the phone line or webcast. If you are joining by webcast, you may submit a written question for the Q&A session at any time during this call by typing your question in the Q&A section of the webcast platform. If you require immediate assistance during this call, please press star zero at any time for the operator.

Speaker Change: If you are joining by webcast, you may submit a written question for the Q&A session at any time during this call by typing your question in the Q&A section of the webcast platform. If you require immediate assistance during this call, please press star zero at any time for the operator.

Operator: I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations. Please go ahead. Thank you, Laura. Good morning, everyone.

Speaker Change: I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations. Please go ahead.

Candida Hayden: Thank you for joining us today to discuss Franco Nevada's second quarter 2024 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.

Candida Hayden: Thank you, Lara. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's second quarter 2024 results.

Candida Hayden: 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.

Candida Hayden: The presentation is also available to view on the webcast.

Candida Hayden: During our call this morning, Paul Brink, President and CEO of Franco Nevada, will provide introductory remarks, followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results, and Ian Gray, Senior Vice President, Business Development, who will discuss our recent transactions. This will be followed by a Q&A period. Our full executive team is available to answer any questions. Participants may submit questions by telephone or via the webcast.

Speaker Change: During our call this morning, Paul Brink, President and CEO of Franca Nevada, will provide introductory remarks, followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results.

Ian Gray: and Ian Gray, Senior Vice President, Business Development, who will discuss our recent transactions.

Speaker Change: This will be followed by a Q&A period.

Speaker Change: Our full executive team is available to answer any questions.

Speaker Change: Participants may submit questions by telephone or via the webcast.

Speaker Change: We would like to remind participants that some of today's commentary may contain forward-looking information and we refer you to our detailed cautionary note on Slide 2 of this presentation.

Candida Hayden: We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on slide 2 of this presentation. I will now turn the call over to Paul Brink, President and CEO of Franco Nevada. Thanks, Candida. Good morning.

Speaker Change: I will now turn the call over to Paul Brink, President and CEO of Franco Nevada.

Paul Brink: Q2 results benefited from record gold prices. Revenues and cash flow from operations were up compared with Q1. The results were lower compared to Q2 last year without the contribution from Cobrai Panama and due to lower production at Candelaria and Antipokai.

Paul Brink: Thanks, Candida, and good morning.

Speaker Change: Q2 results benefited from record gold prices.

Speaker Change: And revenues and cash flow from operations were up compared with Q1.

Speaker Change: The results were lower compared to Q2 last year without the contribution from Cobrai Panama and due to low production at Candelaria and Andapakai.

Paul Brink: The lower quarterly production of the two operating assets is a short-term bump and we expect to return to normal operations at both for the balance of the year. These are two of our best performing assets over the long term. And we look forward to the potential underground expansion at Candelaria and the future development of the Koroko Waiko project at Antipakahi.

Speaker Change: The lower quarterly production at the two operating assets is a short-term bump, and we expect to return to normal operations at both for the balance of the year.

Speaker Change: These are two of our best performing assets over the long term.

Speaker Change: And we look forward to the potential underground expansion at Candelaria and the future development of the Koroko Waiko project at Andapakai.

Paul Brink: Our business development team have had great success in recent months, and we're very pleased to have added two long-life assets to the portfolio, a gold stream on SolGold's Cascabel copper-gold development project in Ecuador, and a Royalty on New Marciana Coach Operation. Ian will give more detail on the acquisitions later in the call. Initial Contributions from Jana Kocher, and the growing contribution from the Solaris Norte, Greenstone and Tocatizeno gold mines that all started production in recent months, will boost our results in the second half. With that, I'll hand it over. Thanks, Paul. Good morning, everyone.

Speaker Change: Our business development team have had great success in recent months and we're very pleased to have added two long-life assets to the portfolio. A gold stream on SolGold's Cascavel Copper Gold development project in Ecuador and a royalty on New Marciana Cocha operations in Peru.

Speaker Change: Ian will give more detail on the acquisitions later in the call.

Ian Gray: Initial contributions from Yanacocha and the growing contribution from the Solaris Norte, Greenstone and Tocatizeno gold mines that all started production in recent months will boost our results in the second half of the year.

Sandip Rana: I'll turn to slide four to give an overview of the financial results for the quarter. Overall Geo sold were $110,264 for second quarter 2024. This compares to $168,515 for the prior year quarter. 131,865 for the prior year quarter when Cobrae Panama Geos are available. As you are aware, Colbray-Padua continues to be on preservation.

Ian Gray: With that, I'll hand it over to Sandip.

Sandip: Thanks, Paul. Good morning, everyone. I'll turn to slide 4 to give an overview of the financial results for the quarter.

Sandip: Overall GOs sold were $110,264 for second quarter 2024. This compares to $168,515 for the prior year quarter and $131,865 for the prior year quarter when COBRE Panama GOs are excluded.

Sandip: As you are aware, Cobre-Padua continues to be on preservation and safe management.

Sandip Rana: In terms of operating assets and geos delivered and sold for the quarter, we did receive less ounces from Candelaria and Antipakai compared to prior years. The geos delivered from both were less than ours. At Candelaria, geos delivered and sold in Q2 2024 were lower than those sold in Q2 2023 as mining rates were impacted, by the Interface of the Open Pit and Historic Underground Mining. This required more stockpile order to be processed, which reduced grades, with access to higher grade ore anticipated in the second half of 2024, Lundin Mining.

Sandip: In terms of operating assets and geos delivered and sold for the quarter, we did receive less ounces from Candelaria and Antipakai compared to prior year. The geos delivered from both were less than our expectations.

Sandip: At Candelaria, geodes delivered and sold in Q2 2024 were lower than those sold in Q2 2023 as mining rates were impacted by the interface of the open pit and the historic underground mining stopes.

Sandip: This required more stockpile ore to be processed, which reduced grades and recoveries.

Sandip: With access to higher-grade ore anticipated in the second half of 2024, Lundin Mining anticipates stronger production.

Sandip Rana: Strong of Production, and have maintained the production guidance. At Antipakai, deals delivered and sold were also lower in second quarter compared to prior year. Mine scheduling was adjusted in part due to a geotechnical event. Complete with Temporarily Limited Pitot.

Sandip: and have maintained the production guidance for Candelaria.

Sandip: At Antipakai, geos delivered and sold were also lower in second quarter compared to prior year. Mine scheduling was adjusted in part due to a geotechnical event which temporarily limited pit access, resulting in the lower production.

Sandip Rana: Resulting in the lower. Glencore anticipates stronger production in the second half of 2024, and Franco Nevada expects its stream deliveries for the full year to be within its initial expectations. 30,000 to 60,000.

Speaker Change: Glencore anticipates stronger production in the second half of 2024, and Franco-Nevada expects its stream deliveries for the full year to be within its initial expectations of 50,000 to 60,000 geos.

Sandip Rana: The Hemlo NPI was also weaker than expected in the second quarter of 2024. There was less mining on royalty lands, along with higher costs, which resulted in a lower NPI paid. It continues to be difficult to estimate what the Hamill MPI will be. For the quarter, Precious Metal Geos were $82,350, compares to 95,383 in prior year when Cobre-Panama Geos are, Precious Metal Geo is represented at approximately 75% of total... For diversified geos, total geos sold were 27,914 compared to just over 36,000. Ion ore geosols were relatively flat year-over-year while energy geos were lower at 22,100.

Speaker Change: The Hemlo NPI was also weaker than expected in Q2 2024. There was less mining on royalty lands along with higher costs which resulted in a lower NPI paid to Franco. It continues to be difficult to estimate what the Hemlo NPI will be going forward.

Speaker Change: For the quarter, Precious Metal Geos were 82,350. This compares to 95,383 in prior year when Cobre Panama Geos are excluded.

Speaker Change: Precious metal geos represented approximately 75% of total geos for the quarter.

Speaker Change: For diversified geos, total geos sold were 27,914 compared to just over 36,000 in Q2 2023.

Speaker Change: Ion ore GOs sold were relatively flat year over year, while energy GOs were lower at 22,100 per Q2 compared to 28,683 year ago.

Sandip Rana: 2, compared to 28,000. Decrease in GEOs is a combination of lower revenue due to weaker natural gas prices, as well as the impact of converting energy revenue to GEOs by higher emissions. Also in Q2 2023 revenue included a catch up, Wells in the Permian Basin, which was not present. As we look at total revenue, revenue was $260.1 million for the quarter compared to $329.9 million a year ago, and you exclude Colbury Panama from prior year revenue, revenue was actually still up.

Speaker Change: The decrease in GEOs is a combination of lower revenue due to weaker natural gas prices, as well as the impact of converting energy revenue to GEOs by higher gold prices.

Speaker Change: Also in Q2 2023, revenue included a catch-up royalty payment related to new wells in the Permian Basin, which was not present in Q2 2024.

Speaker Change: As we look at total revenue, revenue was $260.1 million for the quarter compared to $329.9 million a year ago. When you exclude Colbury-Panama from prior year revenue, revenue was actually still up from $258.2 million.

Sandip Rana: 22 2024 saw continued volatility in average commodity price, as you see on slide 5, gold and silver average price, higher for the quarter when compared to prior year. However, platinum and in particular palladium average prices were lower year-over-year, which did negatively impact conversion of PGM.

Speaker Change: 2-2-2024 saw continued volatility in average commodity prices.

Speaker Change: As you see on slide 5, gold and silver average prices were significantly higher for the quarter when compared to prior year. However, platinum and, in particular, palladium average prices were lower year-over-year, which did negatively impact conversion of PGM revenues to geos.

Sandip Rana: Oil prices were higher as well, while natural gas averaged prices. Slide 6 highlights the financial results for the quarter and year-to-date 2024. As mentioned, GEO sold and revenue were lower year-over-year. Adjusted EBITDA was $221.9 million, while adjusted net income was $150 million, on a per share basis, adjusted net income was $75,000. On the cost side, we did have a decrease in cost of sales compared to prior year, as we did not incur the ongoing fixed cost for uses delivered for Cobre Panama, and had lower GOs delivered and sold from Antibacai and Canada.

Speaker Change: Oil prices were higher as well, while natural gas average prices were essentially flat.

Speaker Change: Slide 6 highlights the financial results for the quarter and year-to-date 2024. As mentioned, GEO sold and revenue were lower year over year.

Speaker Change: Adjusted EBITDA was $221.9 million while adjusted net income was $144.9 million.

Speaker Change: On a per share basis, adjust the net income with 75 cents per quarter.

Speaker Change: On the cost side, we did have a decrease in cost of sales compared to prior year as we did not incur the ongoing fixed cost for ounces delivered for Cobre Panama and had lower geos delivered and sold from Antipakai and Candelaria.

Sandip Rana: With respect to the arbitration cost for Cobrake Panama, the company incurred a cost of $800,000, and I've incurred 2.3 million year to date. We expect approximately $3 million to be incurred. Depletion decreased to 52.9 million versus 75.1 million a year ago. Again, the decrease was due to no depletion recorded for Cobre Panama, as well as lower depletion recorded for Antipakai.

Speaker Change: With respect to the arbitration costs for Colbray Panama, the company incurred costs of $800,000 in Q2 2024 and have incurred $2.3 million year-to-date. We expect approximately $3 million to be incurred for the rest of the year.

Speaker Change: Depletion decreased to 52.9 million versus 75.1 million a year ago. Again, the decrease was due to no depletion recorded for Cobre Panama, as well as lower depletion recorded for Antipakai because of the lower deliveries in the quarter.

Sandip Rana: One additional item to note in Q2 2024 is the tax adjustment recorded. In May 2024, the Government of Barbados enacted legislation to implement tax measures also in response to the OECD's Pillar, Global Tax Initiative. The measures include an increase of the Barbados corporate tax rate to 9% and the introduction of a qualified domestic minimum top-up tax, which together aim to ensure that the Barbados effective tax rate payable is reduced.

Speaker Change: One additional item to note in Q2 2024 is the tax adjustment recorded.

Speaker Change: In May 2024, the Government of Barbados enacted legislation to implement tax measures also in response to the OECD's Pillar 2.

Speaker Change: Global Tax Initiative

Speaker Change: The measures include an increase of the Barbados' corporate tax rate to 9%, and the introduction of a qualified domestic minimum top-up tax, which together aimed to ensure that the Barbados' effective tax rate payable, subjective pillar 2 is at least 15% going forward. [inaudible]

Sandip Rana: What's important to note is that of the 122.8 million total tax expense recorded for the six months ended June 30th. 2024, 49.1 relates to an adjustment for prior years. The actual incremental tax expense related to 2024 is about $21 million. Going forward, we estimate that our effective tax rate will be about 90.., depending on where it's at. Slide seven highlights the continued diversification of the portfolio. From the charts, you can see that 75% of our second quarter 2024 revenue was generated by precious metals, with the revenue being sourced to $80 million.

Speaker Change: What's important to note is that of the $122.8 million total tax expense recorded for the six months ended June 30th.

Speaker Change: 2024, 49.1 relates to an adjustment for prior years, and the actual incremental tax expense related to 2024 is about $21 million because of these changes.

Speaker Change: Going forward, we estimate that our effective tax rate will be about 19-20% depending on where taxable income is generated.

Speaker Change: Slide 7 highlights the continued diversification of the portfolio. From the charts, you can see that 75% of our second quarter 2024 revenue was generated by precious metals, with revenue being sourced 82% from the Americas.

Speaker Change: Slide 8 illustrates the strength of our business model to generate high margins.

Sandip Rana: Slide 8 illustrates the strength of our business model to generate high margins. The cash cost per GEO, which is essentially the cost of sales divided by gold equivalent ounces sold, 264 per geo, Paris 280 per geo.

Speaker Change: For Q2 2024, the cash cost per GEO, which is essentially cost of sales divided by gold equivalent ounces sold, was $264 per GEO. This compares to $280 per GEO in Q2 2023.

Operator: The amount will fluctuate depending upon the mix of royalty versus stream geos. Mining and Entering, but as you can see at current average gold prices to come, margin is approximately $2,100. In a rising commodity price environment, we expect to benefit fully as the cost... This poll should not have been posted.

Speaker Change: This amount will fluctuate depending upon the mix of royalty versus stream geos, including mining and energy, but as you can see, at current average gold prices, the company generates significant margins. The margin was approximately $2,100 per ounce in Q2 2024.

Speaker Change: In a rising commodity price environment, we expect to benefit fully as the cost per geosol should not increase significantly.

Sandip Rana: Thank you. As we turn to available capital, the company has $2.4 billion as of June 30, 2024, as highlighted on slide 9. Please note that subsequent to June 30, 2020 for the company has funded a number of transactions. The acquisition of a role to a new Montiana Cocha property for $210 million, which Ian will speak to shortly. $23.3 million advance to SolGold as part of the $525 million stream commitment agreed to in July.

Speaker Change: As we turn to available capital, the company has $2.4 billion as of June 30, 2024, as highlighted on slide 9.

Speaker Change: Please note that subsequent to June 30th, 2020 for the company has funded a number of transaction

Speaker Change: The acquisition of a Royalty of New Montsiana Cocha property for $210 million, which Ian will speak to shortly. $23.3 million advance to SolGold as part of the $525 million stream commitment agreed to in July .

Sandip Rana: The purchase of shares in G-Mining Ventures is part of the Reunion Gold business combination for $25 million, funding of a five-year, $35 million, Even after funding of DUPOP, the company still has a strong balance. Also during the quarter, the company amended its $1 billion unsecured revolving term credit facility, extend its term to June 3rd.

Speaker Change: The purchase of shares in G Mining Ventures is part of the reunion gold business combination for $25 million and the funding of a five-year, $35 million loan to EMX Royalty.

Speaker Change: Even after funding of the above, the company still has a strong balance sheet to complete additional transactions.

Speaker Change: Also, during the quarter, the company amended its $1 billion unsecured revolving term credit facility to extend its term to June 3, 2029.

Ian Gray: Finally, with respect to the geosoled guidance for 2024, 480 to 540,000 total geosoled and 360,000 to 400,000 precious metal geosoled, we reiterate those guidance ranges but expect to be at the lower end. We do anticipate stronger deliveries from Candelaria in the second half of the year, contributions from Tokunzinio, Greenstone, and Slardar. And with that, I will now pass it over to Ian to... Thank you, Sandy, and good morning.

Speaker Change: Finally, with respect to the GeoSold guidance for 2024, 480,000 to 540,000 total GeoSold and 360,000 to 400,000 precious metal GeoSold. We reiterate those guidance ranges but expect to be at the lower end of both ranges.

Ian Gray: We do anticipate stronger deliveries from Candelaria in the second half of the year and new contributions from Token Zinio, Greenstone, and Solaris Norte. And with that I will now pass it over to Ian who will speak to the recent business development transactions completed.

Ian Gray: As Paul mentioned, we were happy to announce GoldStreet Financing on the so-called Apollo project in July. We view this as a world-class copper-gold porphyry. The stream is tailored to solve gold's needs, allowing for de-risking with initial pre-construction tranches and funding construction once key stage gates are met and funding is secured. Transaction was syndicated 70-30 with a Cisco Gold Royalty, and we believe represents a prudent capital allocation and risk-adjusted return. The Alpala deposit stands out amongst copper bull projects globally based on its size and grade.

Ian Gray: Thank you, Sandy, and good morning.

Ian Gray: As Paul mentioned, we were happy to announce GoldStreet financing on SolGold's Apollo project in July.

Speaker Change: We view this as a world-class copper-gold porphyry.

Ian Gray: The stream is tailored to solve goals needs, allowing for de-risking with initial pre-construction tranches and funding construction once key stage gates are met and funding is secured.

Speaker Change: The transaction was syndicated 70-30 with the Cisco Gold Royalties and we believe represents a prudent capital allocation and risk-adjusted return.

Speaker Change: The Alpala deposit stands out amongst copper bull projects globally based on its size and grade.

Ian Gray: We summarize the recent pre-feasibility study, which demonstrates a robust project, and look forward to management steps to advance and de-risk the project. Our team sees great upside at El Pala and on the broader Cascabel concession, which the stream covers. Projects like Tendiyama increase the value of the stream in our view. Our experience is that these types of deposits also tend to cluster, and we see great potential in the drill bit over time on the property.

Speaker Change: We've summarized the recent pre-feasibility study which demonstrates a robust project and look forward to management steps to advance and de-risk the project.

Speaker Change: Our team sees great upside at El Pala and on the broader Cascabel concession, which the stream covers.

Speaker Change: Projects like Tandy Yacht increase the value of the stream in our view.

Speaker Change: Our experience is that these types of deposits also tend to cluster, and we see great potential in the drill bit over time on the property.

Ian Gray: The transaction includes a number of risk mitigates to determine when funding takes place and various protections for streamers should there be delays or re-scoping of the program. An acquirer would benefit also from the ability to reduce the stream, but to do so would have to provide a payment to both Franco Nevada and a CISCO. We along with the Cisco look forward to the steps management is taking to advance the project. I'm pleased that Cascabel will be a meaningful contributor to Franco Nevada for years to come.

Speaker Change: The transaction includes a number of risk mitigates to determine when funding takes place and various protections for streamers should there be delays or re-scoping of the project.

Speaker Change: An acquirer would benefit also from the ability to reduce the stream, but to do so would have to provide a payment to both Private Nevada and to Cisco.

Operator: Collins, second quarter, 2024 results, conference call and webcast. This call is being recorded on August 14th, 2024. At this time, all lines are in a listen only mode.

Speaker Change: We, along with the CISCO, look forward to the steps management is taking to advance the project. I believe that Cascabel will be a meaningful contributor to Franco Nevada for years to come.

Ian Gray: We'd also point investors to SolGold's recent update, released this morning, providing information on their steps to add value to the project. Moving to the Anacotra Royalty Acquisition from Buena Ventura, which was announced yesterday. We're happy to add this asset to the portfolio. The royalty will contribute immediately given significant oxide production and we expect it would step up significantly with the sulfides approaching. We are very positive on the sulfides and see great potential from the existing footprints to extend the life for many years beyond what is currently envisaged.

Speaker Change: We'd also point investors to SolGold's recent update, released this morning, providing information on their steps to add value to the project.

Operator: Following the presentation, we will conduct a Q&A session where you may ask a question through the phone line or webcast. If you are joining by webcast, you may submit a written question for the Q&A session at any time during this call by typing your question in the Q&A section of the webcast platform. If you require immediate assistance during this call, please press star zero at any time for the operator.

Speaker Change: Moving to the Anacota Royalty Acquisition from Buena Ventura, which was announced yesterday. We're happy to add this asset to the portfolio.

Speaker Change: The royalty will contribute immediately given significant oxide production and we expect would step up significantly with the sulfides project.

Candida Hayden: I would now like to turn the conference over to your host, Candida Hayden, senior analyst, investor relations. Please go ahead. Thank you, Lara.

Speaker Change: We are very positive on the sulfides and see great potential from the existing footprint to extend the life for many years beyond what is currently envisaged.

Ian Gray: The royalty also covers the Kong and Killish projects, providing excellent upsides. We're able to visit the site as part of our review and have good institutional knowledge of the ascitating back to Newmont and maintain an excellent relationship with Beneventura, providing comfort in the long-term potential. We view this as another world-class geological setting, as evidenced by past production and extensive resources.

Candida Hayden: Good morning, everyone. Thank you for joining us today to discuss Franco Nevada's second quarter, 2024 results. Accompanying this call is a presentation, which is available on our website at franko-navada.com, where you will also find our full financial results. The presentation is also available to view on the webcast.

Speaker Change: The royalty also covers the Kong and Killish projects, providing excellent upside.

Speaker Change: We're able to visit the site as part of our review and have good institutional knowledge of the asset dating back to Newmont and maintain an excellent relationship with Beneventura, providing comfort in the long-term potential.

Speaker Change: We view this as another world-class geological setting, as evidenced by past production and extensive resource.

Operator: We see great potential to contribute significant production for decades to come, and further potential in the ROFR that we maintain on the additional royalties. With that, I'll hand it back to the operator and Candida for any questions. Of course. During this Q&A session, if you would like to ask a question, simply press star, then the number 1 on your telephone keypad.

Paul Brink: During our call this morning, all-brink president and CEO of Franco Nevada will provide introductory remarks followed by Sandy Brenna, Chief Financial Officer, who will provide a brief review of our results.

Speaker Change: We see great potential to contribute significant production for decades to come.

Speaker Change: and further potential in the ROFR that we maintain on the additional royalties.

Candida Hayden: With that, I'll hand it back to the operator in Candida for any questions.

Paul Brink: And Ian Gray, Senior Vice President, Business Development, who will discuss our recent transactions. This will be followed by a Q&A period. Our full executive team is available to answer any questions. Participants may submit questions by telephone or via the webcast.

Candida Hayden: Thank you.

Candida Hayden: Of course.

Speaker Change: During this Q&A session, if you would like to ask a question, simply press star then the number 1 on your telephone keypad. If you would like to review your question, please press star 2. If you are joining us on the webcast, please submit your question through the Q&A section of the webcast platform.

Paul Brink: We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on slide two of this presentation.

Operator: If you would like to review your question, please press star 2. If you are joining us on the webcast, please submit your question through the Q&A section of the webcast platform. Our first question comes from the line of Josh Wolfson from RBC Capital Markets. Go ahead, please.

Speaker Change: [inaudible]

Speaker Change: Our first question comes from the line of Josh Wolfson from RBC Capital Markets. Go ahead, please.

Josh Wolfson: Yeah, thanks very much. First question on the Yanicocha transaction. You know, the returns that we calculate would be comparable to some of the, I guess, mega-type of returns we saw maybe in 2015, 2016, which I would know, you know, ultimately worked out fairly well for the company. You know, if we're looking at these deals today, like Yanicocha, and maybe others that could be on the horizon, you know, what's, what's the sort of appeal here?

Paul Brink: I will now turn the call over to Paul Brink, President and CEO of Franco Nevada. Thanks, Candida and good morning. Our Q2 results benefited from record gold prices, and revenues and cash flow from operations were up compared with Q1.

Speaker Change: First question on the Anticocha transaction, the returns that we calculate would be comparable to some of the mega type of returns we saw maybe 2015, 2016.

Speaker Change: which I would note you know ultimately worked out fairly well for the company.

Paul Brink: The results were lower compared to Q2 last year, without the contribution from corporate Panama, and due to lower production at Candle Area and Antipokai. The lower quarterly production at the two operating assets is short-term bond, and we expect to return to normal operations at both for the balance of the year. These are two of our best performing assets over the long term, and we look forward to the potential underground expansion at Candle Area and the future development of the Curricle White Co project at Antipokai.

Speaker Change: You know, if we're looking at these deals today, like Yanicocha and maybe others that could be on the horizon, you know, what's the sort of appeal here? And I would note from our perspective, like, the main bulk of the economics are not really – the project hasn't really been developed.

Josh Wolfson: And I would note from our perspective, like the, the main bulk of the economics are not really, the project hasn't really been developed, versus some of the historical low return deals. You know, we're large producing known assets, just a bit more insight on what the company sees versus what we know in the market today. Thanks Josh, see you in a week.

Speaker Change: versus some of the historical low return deals, you know, we're large producing known assets, just a bit more insight on what the company sees versus what we know in the market today.

Ian Gray: We see great potential. It's been a huge producer over the years, it's a brownfield site with a very large resource endowment. We do get the benefit of existing oxide production and expect, In the short term, there should be a decision on the salt pipe. We were able to do an on-site diligence as part of the transaction, which provided additional comfort, especially in the sulfide. We see that as a great project. The Newmonts, we expect, will advance.

Paul Brink: Our business development team have had great success in recent months, and we're very pleased to have added two long-life assets to the portfolio. A gold stream on soul golds, cascabell, copper gold development project in Ecuador, and a royalty on new martianicote operations in Peru. Ian will give more detail on the acquisitions later in the call. Initial contributions from Yanicote, and the growing contribution from the Salarish Norte, Greenstone, and Toka Tizenu Goldmines, that all started production in recent months will boost our results in the second half, of the year.

Speaker Change: Thanks, Josh. See you in the speaking.

Speaker Change: We see great potential in the asset. It's been a huge producer over the years. It's a brownfield site with a very large resource endowment.

Speaker Change: We do get the benefit of existing oxide production and expect, you know,

Speaker Change: In the short term, there should be a decision on the salt bias. We were able to do an on-site diligence as part of the transaction, which provided additional comfort, especially in the salt bias.

Speaker Change: We see that as a great project that Newmont, we expect, will advance. I think they've put off a decision until 2025.

Ian Gray: I think they've put off a decision until 2025. But then on top of that, you have fantastic projects on the site, which really incentivize maintaining production, in our view. You have the Conga project, which not that long ago was advancing, and in the fullness of time, there is potential there, and the Killish project, both very, very large.

Sandip Rana: With that, I'll hand it over to Sandip. Thanks, Paul.

Sandip Rana: Good morning, everyone. I'll turn to slide four to give an overview of the financial results for the quarter. Overall, Geos sold were 110,264 for second quarter, 2024. This compares to 168,515 for the prior year quarter, and 131,865 for the prior year quarter when co-rate Panama Geos are excluded. As you are aware, co-rate Panama continues to be on preservation and safe management. In terms of operating assets and Geos delivered and sold for the quarter, we did receive less sources from Candelaria and Antipokai compared to prior year.

Speaker Change: But then on top of that, you have fantastic projects on the site, which really incentivize maintaining production.

Speaker Change: R.P.

Speaker Change: You have the Conga project, which not that long ago was advancing in the fullness of time.

Speaker Change: There is potential there, and the Killish project.

Ian Gray: So you get the benefit both of immediate cash flow and fantastic optionality longer term. So that is why we find it attractive and it's a great partner. Numance, as I'm sure you know, has a great track record of both advancing projects and operating successfully. So we're happy to partner with them. Great. And then just, you know, in terms of the opportunity for maybe more of this style transaction that skews towards the optionalities, are these the type of opportunities you're seeing out there? Or, you know, there's been a focus, at least from commentary for other companies about, you know, project financing type of deals? We see both.

Speaker Change: Both very, very large, and so you get the benefit both of immediate cash flow and fantastic optionality longer term. So that is why we find it attractive, and it's a great partner. Numance, as I'm sure you know, has a great track record of both advancing projects and operating successfully.

Sandip Rana: The Geos delivered were both less than or from both less than our expectations. At Candelaria, Geos delivered and sold in 222,24 were lower than those sold in 222,23, as mining rates were impacted by the interface of the open pit and historic underground mining stoves. This required more stockpile order to be processed, which reduced grades and recoveries. With access to higher grade ore anticipated in the second half of 2024, Lundin mining anticipates stronger production, and has maintained a production guidance for Candelaria.

Speaker Change: So we're happy to be involved there.

Speaker Change: Great. And then just, you know, in terms of the opportunity for maybe more of this style transaction that skews towards the optionalities, are these the type of opportunities you're seeing out there or, you know, there's been a focus at least from commentary for other companies about, you know, project financing type of deals?

Ian Gray: In short, I think there is certainly opportunity for project financing type transactions, operating assets. There's a pretty rich steel environment at the moment. The Pants, All.

Speaker Change: We see both. In short, I think there is certainly opportunity for project financing type transactions, operating assets.

Speaker Change: There's a pretty rich deal environment at the moment.

Sandip Rana: At Antipokai, Geos delivered and sold were also lower in second quarter compared to prior year. Mine scheduling was adjusted in part due to geotechnical event, which temporarily limited pit access, resulting in the lower production. Lundin core anticipates stronger production in the second half of 2024, and Franklin about expected stream deliveries for the full year to be within those initial expectations of 50,000 to 60,000 Geos. The HMO NTI was also weaker than expected in second quarter of 2024.

Josh Wolfson: Thank you. And one last question. Just on one of the deals that was done early this year on the energy side of things for Haynesville. I'm not sure if this is an anomaly for the quarter, but Haynesville production or revenues hasn't really improved that much. And there was a large investment made in the first quarter. When should we start to see the increased royalty revenues from this asset? Hi, Josh, it's Jason speaking.

Speaker Change: So, we'll continue to advance all...

Speaker Change: Thank you. And one last question, just on one of the deals that was done earlier this year on the energy side of things for Haynesville. I'm not sure if this is a, you know, anomaly for the quarter, but

Speaker Change: Hainesville production or revenues hasn't really improved that much and there was a large investment made in the first quarter. You know, when should we start to see the increased you know royalty revenues from this asset?

Sandip Rana: There was less mining on royalty land, along with higher costs which resulted in a lower NPI paid to Franco. It continues to be difficult to estimate what the HMO NTI will be going forward. For the quarter precious metal Geos were 82,350, this compares to 95,383 in prior year when co-grade Panama Geos were excluded. Precious metal Geos represented approximately 75% of total Geos for the quarter. For diversified Geos, total Geos sold were 27,914 compared to just over 36,000 in Q2-2023.

Jason OConnell: You're right, we did add incrementally to Hainstow at the end of last year. And despite that revenues were more sort of flat. A lot of that is timing and commodity price. Guest Presley, which you probably know are falling off fairly dramatically.

Speaker Change: Hi Josh, it's Jason speaking. You're right, we did add incrementally to AIMSIL at the end of last year and despite that revenues were sort of flat.

Speaker Change: A lot of that is timing and commodity price, so gas prices that you probably know have fallen off fairly dramatically in the period we're speaking about. That impacts the royalty both in terms of

Jason OConnell: It's not clear, though, about that impacts the Royal Tea Folk in turn. Strait Royalty Economics, then also impacts the way the operators are managing the production. Low gas prices in the Haynesville have resulted in softer drilling rates.

Speaker Change: demonstrate royalty economics that also impacts the way the operators are managing their production. So low gas prices in the Haynesville have resulted in softer drilling rates and at times operators dialing back their production levels to try to rebalance the market.

Jason OConnell: Times operators dialing back their production levels to try to rebalance. So there's a bit of a, there's a large commodity price, I guess, impact there in two ways. We're also onboarding, continuing to onboard the assets that we acquired at the end of last year. It does take some time for all, ownership interest to transfer over. So I think, as you'll see, commodity prices rebound here in the coming quarters. Williamson, Robyn.

Sandip Rana: Iron ore Geos sold were relatively flat year over year while energy Geos were lower at 22,100 per Q2 compared to 28,683 year ago. The decrease in Geos is a combination of lower revenue due to weaker natural gas prices, as well as the impact of converting energy revenue to Geos by higher gold prices. Also in Q2-2023 revenue included a catch-up royalty payment related to new wells in the Permian Basin, which was not present in Q2-2024.

Speaker Change: So there's a bit of a large commodity price, I guess, impact there in two ways. We're also onboarding, continuing to onboard the assets that we acquired at the end of last year. It does take some time for all the ownership interests to transfer over.

Speaker Change: So I think as you'll see commodity prices rebound here in the coming quarters, I think you'll see volumes and revenues normalize a bit.

Sandip Rana: As we look at total revenue revenue was 260.1 million per quarter compared to 329.9 million a year ago when you exclude co-grade Panama from prior year revenue revenue was actually slow up from 258.2 million. Q2-2024 sought continued volatility and average commodity prices as you see on slide 5 gold The prices were significantly higher for the quarter when compared to prior year, however platinum, and in particular palladium average prices were lower year-over-year, which did negatively impact conversion of PGM revenues to Geos.

Speaker Change: Those are all my questions.

Josh Wolfson: Those are all my questions. Thank you. Our next question comes from the line of Lawson Winder from Bank of America. Go ahead, please.

Speaker Change: Thank you. Our next question comes from the line of Lawson Winder from Bank of America. Go ahead, please.

Operator: Yeah, thanks, operator. And good morning, Franklin team. Thanks for taking the question here. I wanted to ask, first of all, about the deal on Yenikotra. Congratulations on getting another big deal done. Um... What was the assumption in terms of the startup of the sulfides when you got to a an IRR that you were comfortable with for this? Thanks Lawson, Ian again here. In terms of the sulfides, I think.

Lawson Winder: Yeah, thanks Operator and good morning Franklin team. Thanks for taking the question here. I wanted to ask first of all about the deal on Yanukovych. Congratulations on getting another big deal done.

Speaker Change: What was the assumption in terms of the startup of the sulfides when you got to an IRR that you were comfortable with for this?

Sandip Rana: Oil prices were higher as well, while natural gas average prices were essentially flat. Slide 6 highlights the financial results for the quarter and year-to-date 2024, as mentioned Geos sold and revenue were lower year-over-year. Adjusted EBADAD was $221.9 million, while adjusted net income was $144.9 million. On a per share basis, adjusted net income was $0.75 for the quarter. On the cost side, we did have a decrease in cost of sales, compared to prior year, as we did not incur the ongoing fixed cost for ounces delivered for co-rape Panama, and had lower Geos delivered and sold from Antibacai and Candelaria.

Speaker Change: Thanks, Lawson. Ian again here. In terms of the sulfides, I think

Lawson Winder: What Newmont has said is 2025, you know, that's possible that they'll adjust it. It's worth noting that the oxides are currently in production, and our diligence would indicate there's potential there to... Leaching, if there is a delay. But I think we're expecting something around the 2029 timeline.

Speaker Change: What Newmont has said is 2025, you know, that's possible that they'll adjust it.

Speaker Change: It's worth noting that the oxides are currently in production, and I think our diligence would indicate there's potential there to continue to do leaching if there is delay, but I think we're expecting something around the 2029 timeline.

Ian Gray: Okay, great. Very helpful. And then just thinking about the deal pipeline and the relative metal mix. I mean, that's improved.

Speaker Change: for production.

Sandip Rana: With respect to the arbitration costs for co-rape Panama, the company incurred costs of 800,000 in Q2 2024, and have incurred 2.3 million year-to-date, we expect approximately 3 million to be incurred for the rest of the year. Depletion decreased to 52.9 million versus 75.1 million a year ago. Again, the decrease was due to no depletion recorded for co-rape Panama, as well as lower depletion recorded for Antibacai. One additional item to note in Q2 2024 is the tax adjustment recorded.

Speaker Change: Okay, great. Very helpful. And then just thinking about the deal pipeline and the relative metal mix. I mean, that's improved.

Lawson Winder: By the way, I shouldn't use the word improve, but that's swung back in the favor of gold and silver and the precious metals quite significantly in Q2 versus Q1, where it dipped to quite a low level. So you're now back to 70% of revenue from gold and silver. In that context, how do you think about adding new streams in terms of metal mix?

Speaker Change: I shouldn't use the word improve, but that's swung back in the favor of gold and silver and the precious metals quite significantly in Q2 versus Q1 where it dipped to quite a low level. So you're now back to 70% of revenue from gold and silver.

Paul Brink: Is gold and silver still a continued priority here? Or does the rebound in gold and silver prices and the move to the metal mix as a result perhaps shift your focus now going forward more to non-precious deals? Lawson, it's Paul.

Speaker Change: In that context, how do you think about adding new streams in terms of metal mix? Is gold and silver still a continued priority here? Or does the rebound in gold and silver prices and the move to the metal mix as a result...

Sandip Rana: In May 2024, the government of Barbados enacted legislation to implement tax measures also in response to the OECD's pillar to global and tax initiative. The measures include an increase of the Barbados' corporate tax rate to 9%, and the introduction of a qualified domestic minimum top-up tax, which together aimed to ensure that the Barbados' effective tax rate payable, subjective pillar 2 is at least 15% going forward. What's important to note is that of the 122.8 million total tax expense recorded for the six months ended June 30, 2024, 49.1 relates to an adjustment for prior years, and the actual incremental tax expense related to 2024 is about $21 million because of its changes. Going forward, we estimate that our effective tax rate will be about 19 to 20%, depending on where tax income is generated.

Speaker Change: Perhaps shift your focus now going forward more to non-precious deals.

Paul Brink: Thanks for the question. Focus, as always, is precious metals. And it starts, as always, with antiquality.

Speaker Change: Lawson, it's Paul. Thanks for the question. Focus, as always, is precious metals.

Paul Brink: Any time we're looking at stuff, it's what are the great assets. That is the biggest driver and what generates the best returns over time. You know and then we get on to commodity mix so first is do we like the asset and second, you know Can we get it done, you know within the guidelines of what we? Komari, So as always, gold and precious metal is number one on our list in terms of what we'd like to do. But always open-minded if they're great assets in other commodities. I think we'll get long-term returns, I'm happy to add. Okay, that's great context.

Speaker Change: And it starts, as always, with anti-quality.

Speaker Change: Any time we're looking at stuff, it's what are the great assets that is the biggest driver and what generates the best returns over time.

Speaker Change: You know, and then we get on to commodity mix, so first is, do we like the asset? And second, you know, can we get it done, you know, within the guidelines of what we do with the commodity mix?

Speaker Change: So as always, gold and precious metal is number one on our list in terms of what we'd like to do.

Speaker Change: But always open-minded. If they're great assets and other commodities, we think we'll get long-term returns. Happy to have those, too.

Lawson Winder: Thanks very much, Paul. Thanks, Ian. Thank you. Our next question comes from the line of Tanya Jakusconek from Scotiabank. Go ahead, please. Hi, good morning.

Sandip Rana: Light 7 highlights the continued diversification of the portfolio. From the charts, you can see that 75% of our second quarter 2024 revenue was generated by precious metals, with revenue being sourced 82% from the Americas. Light 8 illustrates the strength of our business model to generate high margins for Q2 2020 for the cash cost per geo, which is essentially cost of sale, divided by global analysis sold was 264 per geo, this compares to 280 per geo in Q2 2023.

Speaker Change: Okay, that's great context. Thanks very much, Paul. Thank you.

Speaker Change: f

Speaker Change: Thank you. Our next question comes from the line of Tanya Jigaskone from Scotia Bank. Go ahead please.

Operator: Thank you so much for taking my questions. I'm just going to start off on just some of the guidance. And thanks, Sandip, that Hemlo is always difficult to forecast, but just as we look at the second half of the year, and we do have, you know, the, you know, Candelaria, I think, was one that you had mentioned, and Tocanzino, Solaris Norte, those ones ramping up. I might just think that, like, it's a second half, is second half weighted but is it more weighted to Q4 or is it more of an even distribution plus I have the valet top up in Q3 so I'm just trying to understand you know Q3 versus Q4.

Tanya Jigaskone: Hi, good morning. Thank you so much for taking my questions. I'm just going to start off on just some of the guidance.

Tanya Jigaskone: And thanks Sandip, that Hemlo is always difficult to forecast, but just as we look at the second half of the year and we do have, you know, the, you know, Candelaria, I think was the

Sandip Rana: This amount will fluctuate depending upon the mix of royalty versus stream geos, including mining and energy. But as you can see at current average global prices, the company generates significant margins, margin is approximately $2,100 per ounce in Q2 2024. In a rising commodity pricing environment, we expect to benefit fully as the cost. D.O. 's sole should not increase significantly. As we turn to available capital, the company has 2.4 billion as at June 30th, 2024, as highlighted on slide 9.

Speaker Change: was one that you had mentioned, and Tocantinos, Solaris Norte, those ones ramping up. I might just think that, like, it's a second half.

Speaker Change: is second half weighted but is it more weighted to Q4 or is it more of an even distribution plus I have the valet top up in Q3 so I'm just trying to understand you know Q3 versus Q4.

Tanya Jakusconek: Sure Tanya, as of right now from the visibility that that we have I would say it's probably going to be pretty even, and the two maybes. You know, Q4 might be a little bit higher as, you know, Greenstone and Solaris Norte ramp up. But I don't expect too much of a difference.

Speaker Change: I'm sure, Tanya, as of right now, from the visibility that we have, I would say it's probably going to be pretty even between the two. Maybe...

Sandip Rana: Please note that subsequent to June 30th, 2024, the company has funded a number of transactions.

Sandip Rana: The acquisition of a roll to a new Monteana Cocha property for 210 million, which Ian will speak to shortly. 23.3 million advance to solid gold as part of the 525 million dollar stream commitment agreement. The purchase of shares in G mining ventures is part of the reunion gold business combination for 25 million, and the funding of a 5-year $35 million loan to EMAX royalty.

Speaker Change: You know, Q4 might get a little bit higher as, you know, Greenstone and Solaris Norte ramp up. But I don't expect too much of a difference. Obviously, part of it is all dependent on commodity prices.

Sandip Rana: Obviously, part of it is all dependent on commodity prices. I'm going to go back to the NPI's, but for... William Sederstein, Okay, that's helpful. Thank you for that. And then if I can move on to just the, you know, the transactions and just the environment itself. And Ian, for you, you know, thank you for, you know, your, you know, forecast of 2029 for the startup of the Salt Sides. We modeled it into the next decade ourselves. But when you look at the internal rate of return, and again, making that decision. You know, whatever gold price you want to use for both of your transactions that you recently did.

Speaker Change: with respect to the NPIs, but for simplicity, I would say they should be pretty close.

Speaker Change: Okay, that's helpful. Thank you for that. And then if I can move on to just some...

Sandip Rana: Even after funding of Vibov, the company still has a strong balance sheet to complete additional transaction. Also during the quarter of the company amended its $1 billion unsecured revolving term credit facility to extend its term to June 3rd, 2029.

Speaker Change: The Transactions and just the environment itself.

Speaker Change: and Ian, for you, you know, thank you for, you know, your, you know, forecast of 2029 for

Ian Gray: The start-up of the sulfides, we modeled it into the next decade ourselves, but when you look at the internal rate of return, and again, it's making that decision.

Sandip Rana: Finally, with respect to the Geosold Guidance for 2024, 480 to 540,000 total Geosold, and 360,000 to 400,000 precious metal Geosold, we reiterate those guidance ranges but expect to be at the low range of both ranges. We do anticipate stronger delivery from Canjolary in the second half of the year, and new contributions from Toccasinio, Greenstone, and Solaris Norte.

Speaker Change: You know, whatever gold price you want to use for both of your transactions that you recently did, what are you getting? Are you getting the middle, you know,

Tanya Jakusconek: What are you getting? Are you getting the middle, you know, single digit internal rate of return? Just a benchmark for us to see on that. And same with Casabella.

Speaker Change: single-digit internal rate of return. Just a benchmark for us to see on that. And same with Kappa Bell, like when did you figure startup on that asset as well?

Ian Gray: Like, when did you figure start up on that asset as well? Thanks, Tanya, for the question. There's a lot there to unpack. I would say, first of all, it's risk-adjusted returns is what we think about, and optionality.

Ian Gray: With that, I will now pass it over to Ian, who will speak to the recent business development transactions completed. Thank you, Sandy. Good morning. As Paul mentioned, we were happy to announce gold stream financing on solid gold polyprojects in July. We view this as a world-class copper gold porphyry. The stream is tailored to solid gold steeds, allowing for de-risking with initial pre-construction tranches and funding construction once key stage aids are met and funding is secured.

Teddi: Thank you, Tanya.

Speaker Change: Thank you for the question. There's a lot there to unpack. I would say, first of all, it's risk-adjusted returns, is what we think about, and optionality.

Ian Gray: We want to see that there's a lot there that can go right over time and we can earn an outsized return. Even if it does take time, it might not show up in an IRR, certainly enhances the profile of the company. Gold, you know, for years to come. So, with Yanakocha, yes, I would say it's a pretty reasonable return lease, with the oxides and the sulfides, and beyond that you have fantastic projects which stand to provide you many more, on your vest. Layton, and Jim.

Speaker Change: Yeah.

Speaker Change: It is important in the investments, we want to see that there's a lot there that can go right over time and we can earn an outsized return.

Speaker Change: Even if it does take time, it might not show up in an IRR, but it certainly enhances the profile of the company, providing gold for years to come.

Ian Gray: Transaction was syndicated at 7030 with the Cisco gold royalties, and we believe represents a prudent capital allocation and risk adjusted return. The Apollo deposit stands out amongst copper gold projects globally based on its size and grade. We've summarized the recent pre-feasibility study, which demonstrates the robust project and look forward to management steps to advance the de-risk of the project. Our team sees great upside down Apollo and on the broader cascabell concession, which the stream covers.

Hannah Cochid: So, with the anacocha, yes, I would say it's a pretty reasonable return we see with the oxides and the sulfides.

Speaker Change: And beyond that, you have fantastic projects which stand to provide you many multiples.

Ian Gray: Now, Konga, you know, Kilish could take a lot of time, you know, if they get developed, but certainly that skewed towards outsized cash flows from the investment was tracked. Maybe that provides a bit of context. It is reasonable for you single, middle, single digit, like 5%, I don't know what reasonable is for you. Uh, yeah, for an asset that has a great degree of... Optionality, that would be a reasonable return, again, all things equal, it's risk adjusted.

Speaker Change: on your investment.

Speaker Change: as those move forward. Now, Konga, you know, Kilish could take a lot of time, you know, if they get developed, but certainly that skew towards outsized cash flows from the investment was attractive to us. So maybe that provides a bit of context.

Ian Gray: Projects like Teniyama increase the value of the stream in our view. Our experience is that these types of deposits tend to cluster, and we see great potential in the drill bit over time on the property. The transaction includes a number of risk mitigates to determine when funding takes place and various protections for streamers should there be delays or rescoping of the project. An acquirer would benefit also from the ability to reduce the stream, but to do so would have to provide a payment to private Nevada and a Cisco. We, along with the Cisco, look forward to the steps management taking to advance the project. Please, the cascabell will be a meaningful contributor to private Nevada for years to come.

Speaker Change: It is reasonable for you single, middle, single digit, like 5%. I don't know what reasonable is for you.

Speaker Change: Yeah, for an asset that has a great degree of...

Speaker Change: Optionality.

Speaker Change: that would be a reasonable return. Again, all things equal, it's risk-adjustive. In other cases, like SolGold, the return was meaningfully higher.

Ian Gray: In other cases, like SolGold, the return was meaningfully higher, and it just represents, again, I mentioned, a risk. Okay, and then for sole goal, when did you assume startup of that one? And when you say significantly higher, are you implying double digit?

Speaker Change: And it just represents, again, I mentioned a risk-adjusted rate of return.

Ian Gray: We'd also point investors to saw goals recent update, release this morning, providing information on their steps to add value to the project.

Speaker Change: Okay, and then for SoGoal, when did you assume startup of that one? And when you say significantly higher, are you implying double-digit?

Ian Gray: Uh, yeah, in terms of, uh, I don't want to get too much into deal specifics, I don't think it's appropriate, but, uh, roughly, you know, we look at scenarios for start-up there in the early 2030s, and Ray Turner, certainly above the mid-single digits. So, you'll be on that. Okay, no, thank you for that color, Ian.

Ian Gray: We're moving to the Anticocha Royalty at position from one of Ventura, which was announced yesterday. We're happy to add this asset to the portfolio. The Royalty will contribute immediately given significant oxide production, and we expect would step up significantly with the Salphites project. We are very positive on the Salphites and see great potential from the existing footprints to extend the life for many years beyond what is currently envisaged. The Royalty also covers the Kong and Killish projects providing excellent upside.

Speaker Change: Yeah, in terms of, I don't want to get too much into deal specifics. I don't think it's appropriate, but roughly, you know, we look at scenarios that started there in the early 2030s.

Speaker Change: and rate of return, certainly above the mid-single digits, but beyond that I don't think it's appropriate to comment.

Tanya Jakusconek: And maybe just turning to the M&A environment. Just, I wanted to, you know, on the last conference call we talked about. You're seeing bigger size deals, you know, plus 500 million, I guess the Cathabel one was over 500 million. What sort of opportunity size are we still looking at now? Is it still over that 500?

Speaker Change: Okay now thank you for that color Ian and maybe just turning to the M&A environment. Just I wanted to you know on the last conference call we talked about

Ian Gray: We're able to visit the site as part of our review and have good institutional knowledge of the asset dating back to Newmont and maintain an excellent relationship with Ventura providing comfort in the long-term potential. We view this as another world-bossed geological setting as evidenced by past production and extensive resource. We see great potential to contribute significant production for decades to come and further potential in the role for that we maintain on the additional royalties.

Tanya Jakusconek: Are we back to that 100 to 300 million on the gold side? That's my first question on the on the transaction side. Thank you for the question. It's a good question. I would say expect more of the same, in terms of what you've seen recently for deal size. You know 1 to 300 is a pretty good kind of average, Size Within the Pipeline.

Speaker Change: You're seeing bigger size deals, you know, plus 500 million. I guess the Casabella one was over 500 million What sort of opportunity size are we still looking at now? Is it still over that 500? Are we back to that 100 to 300 million on the gold side?

Speaker Change: That's my first question on the transaction side.

Operator: With that, we'll hand it back to the operator and Candida for any questions. Of course, during this Q&A session, if you would like to ask a question, simply press star then the number one on your telephone keypad. If you would like to avoid your question, please press star two. If you're joining us on the webcast, please submit your question through the Q&A section of the webcast platform.

Speaker Change: Thanks, Daniel, for the question. It's a good question. I would say, you know, expect more of the same.

Speaker Change: in terms of what you've seen recently for deal size.

Speaker Change: 1-300 is a pretty good kind of average size within the pipeline. The overall comment, I think, is that it remains extremely busy.

Ian Gray: The overall comments, I think, is that it remains... So there's lots to look at, which is great, and plenty on the personal side, so the team remains very OK, and then in terms of royalties, I mean, Duane Ventura has been talking about selling this royalty on Yenakocha since last year. So congrats on finally getting this done.

Speaker Change: So, there's lots to look at, which is great, and plenty on the participant side, so the team remains very focused.

Joshua Wolfson: Our first question comes from the line of Josh Wolfson from RBC Capital Market. Go ahead, please. Thanks very much.

Ian Gray: The first question on the Yanikotya transaction. The returns that we calculate would be comparable to some of the mega type returns we saw maybe 2015, 2016, which I would note ultimately worked out fairly well for the company. If we're looking at these deals today like Yanikotya and maybe others that could be on the horizon, what's the sort of appeal here? I would note from our perspective, the main bulk of the economics are not really, the project hasn't really been developed versus some of the historical lower turn deals.

Duana Ventura: Okay, and then in terms of royalties, I mean, Duana Ventura has been talking about this.

Speaker Change: I've been selling this royalty on Yenik Coaches since last year, so congrats on finally getting this done. Are you seeing other opportunities on the royalty side in the environment, separate from streams?

Tanya Jakusconek: Are you seeing other opportunities on the royalty side and, you know, in the environment separate from streams? Uh, certainly, uh, you know, we like royalties, uh, I think they're great within the portfolio, so we see a bit of both. Okay, and then maybe just for Paul, I think the last conference call we talked about. Transactions in the non-gold space. We have specifically talked about lithium in the 50 to 400 million range.

Speaker Change: Certainly, we like royalties. I think they're great within the portfolio, so we see them in both.

Speaker Change: both in terms of streams and waterways.

Speaker Change: [inaudible]

Speaker Change: Okay, and then maybe just for Paul, I think the last conference call we talked about.

Ian Gray: We're large producing known assets, just a bit more insight on what the company sees versus what we know in the market today. Thanks, Josh, for seeing and speaking. We see great potential in the asset. It's been a huge producer over the years, the ground field site, with a very large resources down it. We do get the benefit of existing off-site production and expect in the short term, there will be a decision on the solid bias.

Paul Brink: transaction in non-gold space.

Paul Brink: We specifically talked about lithium in the 50 to 400 million range.

Paul Brink: And just looking at opportunities in the part of the market where commodities are not as strong as we see in the gold market. So I'm just wondering what your thoughts, have they changed, are the opportunities for lithium still there, and is that something you still wanna pursue? We're still busy on that front. As Ian mentioned, most of our effort is on the precious metals side. But we are looking at some diversified, some of that is lithium, some in other commodities.

Speaker Change: and you know just you know looking at opportunities in the part of the market where commodities are not as strong as we see in the gold market so I'm just wondering what your thoughts have they changed is though are the opportunities for lithium still there and is that something you still want to pursue

Ian Gray: We were able to do an onsite diligence as part of the transaction, which provided additional comfort, especially in the solid bias. We see that as a great project, the new ones, we expect a little advance. I think they've put off a decision until 2025. But then on top of that, you have fantastic projects on the site, which really incentivize maintaining production in our view. You have the Tonga project, which not that long ago was advancing, and in the fullness of time, there is potential there and the Kilesh project.

Speaker Change: We're still busy on that front. As Ian mentioned, most of our effort is on the precious metal side, but we are looking at some diversified. Some of that is lithium, some in other commodities.

Paul Brink: So I think there's still good potential to get somebody else done on those, and that 50 to 400 million range is so the range that those would fit into uh yeah that's a good range, Okay, looks like you're very busy. Congratulations on both of those deals. Thank you, Tanya.

Ian Gray: So I think there's still good potential to get some deals done in those areas.

Ian Gray: And that 50 to 400 million range is still the range that those would fit into? Yeah, that's a good range.

Ian Gray: no

Speaker Change: Okay, looks like you're very busy. Congratulations on both of those deals.

Ian Gray: Both, very, very large, and so you get the benefit of both of the media task flow and fantastic optionality of long term. So that is why we find it attractive and it's a great partner, nuance, as I'm sure you know, as a great track record of both advancing projects and operating successfully, so we're happy to be involved there.

Tanya Jakusconek: Thank you. Our next question comes from the line of Martin Pradier from Veritas Investment Research. Go ahead, please.

Tanya Jigaskone: Thank you, Tanya.

Speaker Change: Thank you. Our next question comes from the line of Martin Pradier from Veritas Investment Research. Go ahead, please.

Operator: Thank you. It looks like you need the Sulfite project to go ahead to make your money back on Unacocha. Is that the correct assumption?

Martin Perdiere: Thank you. It looks like you need the Sulfite project to go ahead to make your money back on Unacocha. Is that the correct assumption?

Martin Pradier: That is correct. Okay, and did I hear that there was a 49 million tax adjustment from previous year? Is that correct or it's just previous quarter? Yes, so because Barbados increased its tax rate to 9%, its corporate tax rate, our deferred tax liability on our balance sheet... Set up at the old rate. So we had to adjust that and that was 49.1 million. It's a long time, Okay, perfect.

Speaker Change: That is correct, Ian speaking here.

Ian Gray: Great. And then just in terms of the opportunity for maybe more of this style transaction that's excused towards the optionalities, are these the type of opportunities you're seeing out there, or there's been a focus at least from commentary for other companies about, you know, project financing type of deals. We see both, in short, I think there is certainly opportunity for project financing type transactions operating assets, you know, there's a pretty rich deal environment at the moment, so we'll continue to advance all fronts. Thank you.

Speaker Change: Okay, and did I hear that there was a 49 million tax adjustment from previous year? Is that correct or is it just previous quarter?

Speaker Change: Yes, so because Barbados increased its tax rate to 9%, its corporate tax rate, our deferred tax liability on our balance sheet was set up at the old rate, so we had to adjust that and that was $49.19.

Martin Pradier: Thank you. That's all. Thank you very much.

Speaker Change: It's a one-time adjustment.

Speaker Change: Okay, perfect. Thank you. That's all. Thank you very much.

Operator: Thank you. There are no further questions on the phone line, I will now turn the Q&A session over to Candida Hayden, who will take questions from the webcast. Thank you, Laura.

Jason OConnell: And one last question, just on one of the deals that was done early this year on the energy side of things for Haynesville, I'm not sure if this is a, you know, anomaly for the quarter, but, you know, Haynesville production or revenues hasn't really improved that much, and there was a large investment made in the first quarter, you know, when should we start to see the increased in a royalty revenues from this asset?

Speaker Change: Thank you.

Speaker Change: There are no further questions on the phone line. I will now turn the Q&A session over to Candida Hayden, who will take questions from the webcast.

Candida Hayden: Our first question comes from Bernie, from Palisade Capital. Given the recent social and political turmoil in Ecuador, I'm a bit surprised by your commitment to the Cascabel project, especially after Panama experience. To what extent have you balanced your attention to the project geology versus your view of the political environment there?

Candida Hayden: Thank you, Laura. Our first question comes from Bernie Feechey.

Bernie Feachy: from Palisade Capital.

Speaker Change: Given the recent social and political turmoil in Ecuador, I'm a bit surprised by your commitment to the Cascabel project, especially after Panama experience. To what extent have you balanced your attention to the project geology versus your view of the political environment there?

Jason OConnell: Hi, Josh. It's Jason speaking. You're right. We did add it permanently to Haynesville at the end of last year, and despite that, revenues were sort of flat. A lot of that is timing and commodity price, so gas prices, which you probably know are falling off fairly dramatically in the period we're speaking about. That impacts the royalty both in terms of the straight royalty economic, and also impacts the way the operators are managing the production.

Ian Gray: Thank you for the questions. Cascabel transaction was very carefully structured to take advantage of the geology but also mitigate, The first point, in terms of the funding structure, it's broken down into branches based on... This allows certain items.., to be dealt with before additional capital is funded. And then when it comes to the final construction funding, that is... Robust Investment Agreement being signed with the Government of Ecuador. Criterion. Please see the complete disclaimer at https://sites.google.com, We take a lot of comfort from that, but I would probably say, bigger picture, Ecuador has a very fair split of fiscal flows versus other countries.

Speaker Change: Thank you for the question.

Speaker Change: Cascabel transaction was very carefully structured to take advantage of the geology but also mitigate the risks.

Jason OConnell: So low gas prices in Haynesville resulted in software drilling rates and at times operators dialing back into production levels to try to rebalance the market. So there's a bit of a large commodity price, I guess, impact there in two ways. We're also onboarding, continuing to onboard the assets that we acquired at the end of last year. It does take some time for all the ownership interest to transfer over. So I think as you see, the money price is rebound here in the coming quarters.

Speaker Change #100: First point, in terms of the funding structure, it's broken down into branches based on stage gates.

Speaker Change #100: and this allows certain items to be dealt with before additional capital is funded.

Speaker Change #100: And then when it comes to the final construction funding, that is contingent on the rest of the funding being secured and a robust

Speaker Change #100: Investment agreement being signed with the government of Ecuador with criteria included as conditions of funding.

Speaker Change #100: So we take a lot of comfort from that, but I would probably say, bigger picture, Ecuador has a very fair split of fiscal flows versus other countries, so we draw a lot of comfort from that as well. With mines like Fruits Del Norte, the government derives 50% of the economic benefit of the projects.

Paul Brink: We draw a lot of comfort from that as well, with Minds Like Fruits Del Norte, the government derives 50% of the economic benefit of the project. So that provides what I believe is a good backdrop. The government is also quite supportive of the project, campus a lot of comfort and that's part of our and a number of government officials, names in tow, along with our partners at Cisco and also... The next question is also from Bernie Kuchy at Cal State Capital. There's an update on Panama, especially given the new government. So Bernie, it's Paul.

Jason OConnell: I think you'll see volumes and revenues normalize a bit.

Speaker Change #100: So that provides what I believe is a good backdrop towards stability going forward and social acceptability of mining projects.

Joshua Wolfson: Those were my questions. Thank you.

Speaker Change #101: The government is also quite supportive of the project, which gave us a lot of comfort as part of our diligence. We met with a number of government officials, in-toe, along with our partners at Cisco, and also Canadian and U.S. Embassy staff.

Lawson Winder: Our next question comes from the line of Lawson Winder from Bank of America. Go ahead, please. Yeah, thanks operator and good morning, Franklin team. Thanks for taking the question here. I wanted to ask, first of all, about the deal on Yanikotra. Congratulations on getting another big deal done. What was the assumption in terms of the startup of the solfides when you got to an IRR that you were comfortable with for this?

Speaker Change #102: Thank you.

Speaker Change #103: The next question is also from Bernie Pichie at Cal State Capital. An update on Panama, especially given the new government.

Paul Brink: Since the Molina administration has come in, I think all the indications have been positive. They've indicated a willingness to look at a reopening of the mine, uh... entrant in negotiations that is with some conditions And I'd say most positives are the steps of the taking of the first, The item is that they want to do a comprehensive environmental review, and so they're putting together a panel of experts so that they can do that. I'm very hopeful that that will help demonstrate that the asset has been very well operated. Some of the misgivings that had been promoted in the population that there was environmental damage will be dispelled.

Speaker Change #103: So Bernie and Paul, they...

Ian Gray: Thanks, Lawson. In terms of the solfides, I think What Neumanzo said is 2025, that's possible to build the law justice. It's worth noting that the oxides are currently in production and I think in our diligence would indicate there's potential there to continue to do leaching after is delayed. But I think we are expecting something around the 2029 timeline for production.

Speaker Change #104: Since the Malino administration has come in, I think all the indications have been positive.

Speaker Change #105: They've indicated a willingness to look at a reopening of the mine, enter into negotiations, that is, with some conditions.

Speaker Change #106: And I'd say most positives are the steps that they're taking, the first...

Speaker Change #107: The item is that they want to do a comprehensive environmental review and so they're putting together a panel of experts so that they can do that. I'm very hopeful that that will help demonstrate that the asset has been very well operated and that

Paul Brink: Okay, great. Very helpful. And then just thinking about the deal pipeline and the relative metal mix. I mean, that's improved, but I shouldn't use the word improve, but that's swung back in the favor of gold and silver and the precious metals quite significantly in Q2 versus Q1 were a dip to quite a low level. So you're now back to 70% revenue from gold and silver. In that context, how do you think about adding new streams in terms of metal mix is gold and silver still a continued priority here, or does the rebound gold and silver prices and the move to the metal mix as a result, perhaps shift your focus now going forward more to non precious deals.

Speaker Change #107: Some of the misgivings that had been promoted in the population that there was environmental damage will be dispelled. So I think taking very positive steps to set the table so that they can, one, have a discussion with the company, and two, position this project better with the public in Panama.

Paul Brink: So I think taking very positive steps to set the table. So that they can, one, have a discussion with the company and, I'm going to position this project better with a public hearing. The last question comes from Bjorn Wicklander. The current cash portfolio is 1.4 billion U.S. dollars. Is there deals out there such as royalties?

Speaker Change #107: Well, the last question comes from Bjorn Glender.

Speaker Change #108: The current cash portfolio is $1.4 billion USD.

Ian Gray: that are coming that can match this cash position, or are there other opportunities that this cash position can be used for, and if so, what could that be? Thank you for the questions. As I mentioned, we see a very robust pipeline that has good potential to deploy.

Speaker Change #109: Is there deals out there such as royalties or streams that are coming that can match this cash position? Or are there other opportunities that this cash position can be used for? And if so, what could that be?

Paul Brink: Lawson as Paul, thanks a question. Focus is always is precious metals. And it starts as always with the quality. Any time we're looking at stuff, it's what are the great assets. That's the biggest driver and it was generates the best returns of a time. You know, and then we get on to commodity mix. So first is do we like the asset and second, you know, can we get it done, you know, within the guidelines of what we do with the with the commodity mix.

Speaker Change #109: Thank you for the questions, Ian speaking. As I mentioned, we see a very robust pipeline. There's good potential to deploy that capital with what we have in the pipeline. Going forward, I think you will see us continue to transact.

Ian Gray: , with what we have in the pipeline going forward. I think you will see us continue to transact. We have a number of opportunities, so I don't see it as a surplus.

Ian Gray: It's quite beneficial for us. Thank you, Ian. There are no further questions from the webcast. This concludes our second quarter results conference call and webcast. We expect to release our third quarter 2024 results after market close on November 8th, with a conference call held the following morning.

Speaker Change #110: on a number of opportunities. So I don't see it as a surplus. It's quite beneficial for us in terms of bidding competitively. Thank you, Ian.

Speaker Change #111: There are no further questions from the webcast. This concludes our second quarter of results conference call and webcast.

Paul Brink: So as always, golden precious metal is no one on a list in terms of what we like to do, but always open minded if they're great assets and other commodities. We think we'll get long term returns. Happy to add those two. Okay, great context. Thanks very much Paul.

Speaker Change #112: We expect to release our third quarter 2024 results after market close on November 8th With a conference call held the following morning. Thank you for your interest in Franco, Nevada. Goodbye

Candida Hayden: Thank you for your interest in Franco Nevada. Goodbye. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. , , , , , , , , , , , , , , , , , , , , , , , , ,

Paul Brink: Thank you.

Speaker Change #113: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

Tanya Jakusconek: Our next question comes from the line of tania jica's corner from Scotia bank. Go ahead, please. Hi, good morning. Thank you so much for taking my questions. I'm just going to start off on some of the guidance. And thanks, Sandi, that Hamlo is always difficult to forecast, but just as we look at the second half of the year and we do have, you know, the, you know, candle candle area. I think it was the was one that you had mentioned and took and you know, it's allowed Northay.

Speaker Change #113: [music]

Tanya Jakusconek: Those ones ramping up. I might think that like it's a second half. It's a second half weighted, but is it more weighted to Q4 or is it more of an even distribution plus I have the valley top up in Q3. So I'm just trying to understand, you know, Q3 versus Q4.

Sandip Rana: Sure, tania. As of right now from the visibility that that we have, I would say it's probably going to be pretty even between between the two, maybe, you know, two for Mike, a little bit higher as, you know, green stone and slarse Northay ramp up. But I don't expect too much of a difference. Obviously part of it is all dependent on commodity price. This is with respect to the NPI's, but for the simplicity, I don't say their state should be pretty close. Okay, that's awful. Thank you for that.

Speaker Change #113: [music]

Ian Gray: And then if I can move on to just the transactions and just the environment itself. And Ian, for you, thank you for your forecast of 2029 for the start-up of the fallpides. We modeled it into the next decade ourselves. But when you look at the internal rate of return, and again, making that decision, you know, whatever gold price you want to use for both of your transactions that you recently did, what are you getting?

Ian Gray: Are you getting the middle, you know, single digital internal rate of returns, just a benchmark for us to see on that. It's same with Casabelle, like when did you, you know, figure start up on that asset as well.

Ian Gray: Thanks, Tanya, for the question. There's a lot there to unpack. I would say, first of all, it's, you know, risk-adjusted returns, what we think about and optionality is important in the investments. You want to see that there's a lot there that can go right over time and we can earn an outsize return. Even if it does take time, it might not show up in an IRR, but certainly enhances the profile of the company writing gold, you know, for years to come.

Speaker Change #113: [music]

Ian Gray: So, with Ian and Cocher, yes, I would say it's a pretty reasonable return we see with the outsides and the sulfides. And beyond that, you have fantastic projects which stand to provide you many multiples on your investment. As those move forward now, Konga, you know, Kilesh could take a lot of time, you know, if they get developed, but certainly that skewed towards outsides, cash flows from the investment was tracked to us.

Speaker Change #113: [inaudible]

Ian Gray: So, maybe that provides a bit of context on- It is reasonable for you, single digit, middle single digit, like 5%, I don't know what reasonable is for you. Yeah, for an asset that has a great degree of optionality, that would be a reasonable return again, all just the whole thing equals its risk adjusted. You know, in other cases, like solvable, the return is meaningfully higher. And it just represents, again, I mentioned a risk adjusted rate return.

Ian Gray: Okay, and then for so goal, when did you assume startup of that one, and when you say significantly higher, are you implying double digit? Yeah. Yeah, in terms of, I don't want to get too much into field specifics, I don't think it's appropriate, but roughly, you know, we look at scenarios for startup there in the early 2030s, and rate of return, certainly above the mid single digits. But, you know, be on that.

Ian Gray: I don't think it's purpose comment. Okay.

Paul Brink: No, thank you for that color, Ian, and maybe just turning to the M&A environment. Just I wanted to, you know, on the last conference hall we talked about seeing bigger size deals, you know, plus 500 million, I guess the Casabell one was over 500 million. What sort of opportunity size are we still looking at now? Is it still over that 500? Are we back to that? 100 to 300 million on the goal side.

Paul Brink: That's my first question on the transaction side. Thank you for the question. That's a good question. I would say, you know, expect more of the same in terms of what you've seen recently for deal size. You know, one to 300 is a pretty good kind of average size within the pipeline. You know, the overall comments, I think, is that it remains extremely busy. So there's lots to look at, which is great. And plenty on the price of all size. So T remains very focused.

Paul Brink: Okay.

Ian Gray: And then in terms of royalties, I mean, one of inter have been talking about selling of this royalty on Yannick coaches since last year, so congrats on finally getting this done. Are you seeing other opportunities on the royalty side in, you know, in the environment separate from streams? Certainly, you know, we like royalties. I think they they're great with the portfolio. So we see that both. Both inter streams. Okay.

Paul Brink: And then maybe just where Paul, I think the last conference call we talked about transaction in non-negole space, we had specifically talked about lithium in the 50 to 400 million. And you know, just, you know, looking at opportunities in the part of the market where commodities are not as strong as we see in the gold market. So I'm just wondering what your thoughts have they changed is the opportunities for lithium still there and is that something you still want to pursue?

Paul Brink: We're still busy on that front. As Ian mentioned, most of us are on the fresh smell side, but we are looking at some zero five. Some of that is lithium, some and other commodities. So I think there's still good potential to get to some deals done in those areas. And that 50 to 400 million ranges. So the range of those would fit into. Yeah, that's a good range. Okay, look like you're very busy.

Operator: Congratulations on both of those deals.

Operator: Thank you, Daniel.

Operator: Thank you.

Martin Pradier: Our next question comes from the line of Martin. Good year from a very tight investment research. Go ahead, please. Thank you. It looks like you need the soul fight project to go ahead to make your money back in a coach. Is that the correct assumption? That is correct, he is speaking here. And did I hear that there was a 49 million tax adjustment from previous year? Is that correct or is this previous quarter?

Martin Pradier: Yes, so because Barbados increased its tax rate to the 9% its corporate tax rate, our deferred tax liability on our balance sheet was set up at the old rate, so we had to adjust that and that was 49.1 million. It's a one-time adjustment. Okay, thank you.

Operator: That's all. Thank you very much. Thank you. There are no further questions on the phone line.

Candida Hayden: I will not turn the Q&A session over to Candida Hayden, but we'll take questions from the webcast.

Bernie Feachie: Thank you, Lara.

Ian Gray: A first question comes from Bernie Feachie from Palisade Capital. Given the recent social and political turmoil and Ecuador, I'm a bit surprised by your commitment to the CACBEL project, especially after Panama experience. To what extent have you balanced your intention to the project geology versus your view of the political environment there? Thank you for the question. CACBEL transaction was very carefully structured to take advantage of the geology, but also mitigate the risks.

Ian Gray: First of all, in terms of funding structure, it's broken down into launches based on stage gates. And this allows certain items to be dealt with before additional capital is funded. And then when it comes to the final construction funding that is contingent on the rest of funding being secured and a robust investment agreement being signed with the government of Ecuador with criteria included as conditions of funding. So we take a lot of comfort from that, but I would probably say bigger picture Ecuador has a very fair split fiscal flow versus other countries.

Ian Gray: And so we draw a lot of comfort from that as well. We find like groups still loyalty, the government drive 50% of the economic benefit of the projects. So that provides what I believe is a good backdrop towards stability going forward with social acceptability of planning projects. The government is also quite supportive of the project, which came us a lot of comfort as part of our diligence that we met with. And a number of government officials in Sinto, along with our partners at Cisco and also Canadian and US Embassy staff.

Bernie Feachie: Thank you.

Paul Brink: The next question is also from Bernie Pichu, a calisade capital, an update on Panama, especially given the new government.

Paul Brink: So Bernie is Paul, the, since the millennial, Malino administration has come in and any, any, all the indications have been positive. They've indicated a willingness to look at a reopening of mine, entry into negotiations that is with some conditions. And I'd say most positives are the steps of the taking of the first. The first item is that they want to do a comprehensive environmental review and so they're putting together a panel of experts that they can do that.

Paul Brink: I'm very hopeful that that will help demonstrate that the asset has been very well operated and that some of the misgivings that had been promoted in the population that there was environmental damage will be dispelled. So I think taking very positive steps to set the table so that they can want to have a discussion with the company and to position this project better with the public and panel.

Ian Gray: Last question comes from Bjorn Glender. The current cash portfolio is 1.4 billion USD. Is there deals out there that's as royalty or streams that are coming that can match this cash position? Or are there other opportunities that this cash position can be used for? And if so, what could that be? Thank you for the questions, Ian speaking. As I mentioned, we see a very robust pipeline. We have a good potential to deploy that capital.

Ian Gray: Before we have in the pipeline going forward, I think you will see us continue to transact on a number of opportunities. So I don't see it as a surplus. It's quite beneficial for us in terms of bidding competitively.

Operator: Thank you, Ian. There are no further questions from the webcast. This concludes our second quarter of results conference call and webcast. We expect to release our third quarter 2024 results after market closed on November 8th with the conference call held the following morning. Thank you for your interest in Frank and Nevada. Goodbye.

Eaun Gray: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line. Eaun Gray