Q4 2024 Franco-Nevada Corp Earnings Call

Candida Hayden: Thank you, Joanna.

Thank you Joanna and good morning, everyone.

Candida Hayden: Good morning, everyone. Thank you for joining us today to discuss Franco Nevada's year-end 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. The presentation is also available to view on the webcast.

You for joining us today to discuss Franco Nevada's year end 'twenty 'twenty four results okay.

Accompanying this call is a presentation, which is available on our website at Franco hyphen, Nevada Dotcom.

You will also find our full financial results.

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. This will be followed by a Q&A period. Our full executive team is available to answer any questions. Participants may submit questions by the telephone or via the webcast.

Speaker Change: During our call. This morning, Paul Brink, President and CEO of Franco Nevada will provide introductory remarks.

Speaker Change: Led by Sandy Brenna, Chief Financial Officer, who will provide a brief review of our results.

Speaker Change: She'll 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 the telephone or via the webcast 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 I will now turn over the call to Paul Brink, President and CEO of Franco Nevada.

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 two of this presentation.

Paul Brink: I will now turn over the call to Paul Brink, President and CEO of Franco Nevada. Thanks, Candida. Good morning.

Speaker Change: Yeah.

Speaker Change: Thanks Candido good morning.

Paul Brink: First of all, welcome to Daniel Melchuk, who joined our board in January. Daniel is an experienced director and spent much of his executive career at BHP, including roles heading operations in the Americas. running the copper, aluminium and nickel and manganese businesses and heading the exploration division. Daniel Chilean based out of Santiago, and I'm sure will add valuable perspectives on many of the assets and the countries in which we invest.

Speaker Change: First of all welcome to Daniel Mel Chuck joined our board in January.

Speaker Change: As an experienced director spent much of his executive career at BHP.

Speaker Change: All hitting operating.

Speaker Change: <unk> in the markets.

Speaker Change: The copper, although many of them.

Speaker Change: Nicola manganese businesses and having the exploration division.

Speaker Change: Joanne based out of San Diego and I'm sure will add valuable perspective on many of the assets in the country.

Speaker Change: We invest.

Paul Brink: We ended the year well with a strong fourth quarter. Do your sales for the year. We're near the top end of our revised year guidance. with a tailwind from rising gold prices with higher quarterly revenue, adjusted EBITDA and adjusted net income compared to Q4 2023. even without a contribution from Corporate Bank.

Speaker Change: We ended the year, well with a strong fourth quarter U S.

Speaker Change: Sales for the year when you're at the top end of our revised Geo guidance right.

Speaker Change: Well the tailwind the tailwind from rising gold prices went higher quarterly revenue adjusted EBITDA and adjusted net income compared to Q4 2023.

Speaker Change: Even without the contribution from corporate that.

Paul Brink: 2024 was the most active year in our history for business development. Ian and the team entered into more than $1.3 billion in acquisitions and commitments during the year. Transactions included Goldstream Investment in Castile and Ecuador. Royalty on the Anacota Gold Mine in Peru, and a principally gold stream on Savinia's Western Limit PGM operations in South Africa. All of them high quality, all bodies with potential to be very long life.

Speaker Change: 2024 was the most active year in our history for business development.

Speaker Change: Rather than more than one 3 billion in acquisitions have commitments during the year.

Speaker Change: It's actions included gold stream investment cascabel in Ecuador.

Speaker Change: Royalty on the Ampco to go mine in Peru, and are principally cold spring months upon years Western limb PGM operations in South Africa.

Speaker Change: All of them high quality ore bodies with potential to be very long life mines.

Paul Brink: One of our largest portfolio successes in 2024 was the completion of construction and commercial operation of Toca do Zinho in Brazil, where we have a 12.5% gold stream. No surprise mine built by the G mining team was on time and on budget. Rather than just providing stream financing, Franco Nevada is the financial backer of Team Inventures, having provided stream debt and equity components. DZ is only the first of many minds that Freeman will build, and Franco will require strong financial backing.

Speaker Change: One of our largest portfolio of successes in 2024 was the completion of construction and commercial operation of Poker Casino in Brazil, where we havent.

Speaker Change: Send goldstrike.

Speaker Change: No surprised minded built by the G mining team was on time and on budget.

Speaker Change: Robin just providing stream financing Franco nevadas financial backer of treatment ventures provide extreme.

Speaker Change: Equity coupons.

Speaker Change: He said, it's only the first of many main stream and spills.

Speaker Change: Franco.

Speaker Change: Strong financial backing.

Paul Brink: In January, we announced a second partnership based on the same principles, a financing package to support Discovery Silver's acquisition of Newmont's porcupine complex in Timmins. including a royalty credit facility and banking for their equity. Tony McCooch and team are absolutely the right group to revitalize the porcupine assets and realize the tremendous potential that still remains in the camp. This is possibly only the first move to consolidate operations in the camp. and with financial backing from Franco, Discovery's well-positioned for those next.

Speaker Change: In January we announced the second partnership based on the same principles are fantastic packaged tour discovered silvis acquisition.

Optical combined complex Tim it's.

Speaker Change: Clothing, a royalty credit facility.

Speaker Change: Backing for that equity raise.

Speaker Change: So on the Cogent team are absolutely the right group to revitalize we'll find assets and realize the tremendous potential that still remains in the camera.

Speaker Change: This is possibly only first moved to consult that consolidated operations in the GAAP.

Speaker Change: Whats financial backing from Franco discovery swap positions for those next steps.

Speaker Change: Okay.

Paul Brink: The acquisitions of the last 12 months have the potential to add 85,000 to 95,000 GEOs per annum to our medium-term production profile. Almost all gold now. with these new additions, along with organic growth from my existing portfolio. These drive the growth outlined in our 2025 guidance and outlook for the next five years. 2025 the new contributions from Subbania's Western Loam Operations and Porcupine and four-year contributions from Jana Kocha, DZ, Greenstone and Solaris Norte will have a big impact.

Speaker Change: The acquisitions over the last 12 months.

Speaker Change: To add 85 to 95000 geos per annum medium term production profile almost all gold ounces.

With these new additions along with organic growth from our existing portfolio.

Speaker Change: These strikes the growth outlined in our 2025 guidance. Thanks.

Speaker Change: Five years.

Speaker Change: What about 25, new contributions from span years western them operations will be fine.

Speaker Change: Full year contributions from you had a culture P. J greenstone, it's a lot of snow takes will have a big impact.

Paul Brink: Some of the highlights for the longer-term outlook are higher silver contributions from Antimina and new gold ounces from the startup of Valentine Gold, Escape Creech, and Steadmine. With Sandip's management of our balance sheet, all the acquisitions were or will be, when the Discovery Guild closes, funded from our cash balances, and we'll still have no debt and a substantial cash balance.

Speaker Change: Some of the highlights for the longer term outlook, our highest level of contributions from anthem.

Speaker Change: New gold ounces from the startup of Valentine Gold SK Creek comes to mind.

Speaker Change: Well Sandeep management of our balance sheet, all the acquisitions were or will be when the discovery deal closes.

Speaker Change: Our cash balances and we'll still have no debt and a substantial cash balance.

Paul Brink: Our growing operating cash flows also allowed us to increase dividends for the 18th consecutive time in January this year. Cumulative dividends since IPO are now greater than $2.5 billion.

Speaker Change: Our growing operating cash flows also allowed us to increase the dividend for the 18th consecutive time in January this year.

Speaker Change: You might have dividends since IPO are now greater than $2 5 billion.

Speaker Change: Okay.

Paul Brink: A business development team could do with a break off over the activity in the last 12 months, but I don't think that's going to happen. We have actual opportunities that could add more attractive assets this year.

Speaker Change: Our business development team could do with a break off there will be activity in the last 12 months, but I don't think that's going to happen.

Speaker Change: We have actual opportunities that could add more attractive assets this year.

Paul Brink: Finally, I'm very encouraged by the developments in Panama. President Molino has indicated a willingness to discuss corporate Panama this year, and sentiment in Panama now appears more supportive of restarting. I think there are good odds we'll see positive progress.

Speaker Change: Finally.

Speaker Change: I'm very encouraged by the developments in Panama.

Speaker Change: <unk> has indicated a willingness to discuss cobre, Panama this year.

Speaker Change: Sentiment in Panama. It now appears more supportive of restarting.

Speaker Change: I think there's good odds will see positive progress this year.

Paul Brink: With that, I'll hand the call over to Sandy. Thank you, Paul.

Seth: With that I'll hand, the call over to Seth.

Seth: Thank you Paul Good morning, everyone as Paul mentioned Franco Nevada, the year with a strong fourth quarter, which was the result of both strong production from our asset base and higher precious metal prices.

Sandip Rana: Good morning, everyone. As Paul mentioned, Franco Nevada ended the year with a strong fourth quarter, which was the result of both strong production from our asset base and higher precious metal prices. Precious metal prices, with gold in particular, reached record highs in 2024. On slide four, you will see the comparison of commodity prices for both fourth quarter and full year 2024. Gold and silver prices increased significantly for both periods, with gold higher by 34.7 percent in the quarter and 22.9 percent for the year. Prices for palladium, iron ore, and oil continue to be volatile and will lower year over year.

Seth: Gosh, if metal prices with Golden particular reached record highs in 2024.

Seth: On slide four you will see the comparison of commodity prices for both fourth quarter and full year 2020 for gold and silver prices increased significantly for both periods are called higher by 34, 7% in the quarter and 22, 9% for the year.

Seth: As for Palladium iron ore and oil continues to be volatile.

Seth: Year over year.

Sandip Rana: Slide 5 provides a recap of the company's performance against the revised guidance provided for last year. The updated guidance for 2024 provided for a range of $445,000 to $465,000 total DO sold. Of this total, the company guided 340,000 to 360,000 precious metal fields. with the balance being from diversified assets. With a strong finish at the end of the year, the company ended the year with 463,334 Geosold. which was near the top end of the guidance rail. We were also at the top end of the guidance range for Precious Metals with 355, 280 GeoSold. The diversified assets, which include our non-precious metal mining assets and energy assets, resulted in just over 108,000 geos sold.

Seth: Slide five provides a recap of the company's performance against the revised guidance provided for last year.

Seth: Stated guidance for 2024 provided for a range of 445000.

Seth: 465000 total deal.

Seth: Of this total the company guided 340000 to 360000.

Seth: With the balance based on diversified assets.

Seth: With the strong finish at the end of the year. The company ended the year with 463334 Geos.

Seth: Which was near the top end of the guidance range.

Seth: Also at the top end of the guidance range for precious metals for 355.

Seth: 280 Geos.

Seth: The diversified assets, which include our non precious metal mining assets and energy assets resulted in just over 108000 Geos sold for the year.

Sandip Rana: I'd like to point out that the revenue generated from our diversified assets was actually in line with our expectations for the year.

Seth: I'd like to point out that the revenue generated from our diversified assets was actually in line with our expectations for the year.

Sandip Rana: However, with a 37% higher average gold price in 2024 than our 1950 budgeted gold price, when converting to GEOs sold, it actually resulted in a loss of 21,000 GEOs than if the gold price had remained at our budget price. Turning to slide six, you'll see the 2023 and 2024 fourth quarter comparisons for GeoSold, Revenue, and Adjusted Earnings. Total Geo sold were $120,063 in fourth quarter compared to $152,351 in fourth quarter 2020. Precious Metal Geo sold in fourth quarter 2024 were $95,565 higher by 5% compared to prior year when excluding co-repair. For the fourth quarter, we received strong contributions from Candelaria and benefited from the continued ramp-up of new mines Tocantinio and Greenstone.

Seth: However, with a 37% higher average gold price in 2024 and our.

Seth: 950 per vehicle price when converting to Geo sold it actually resulted in a loss of 28000, Geos and if the gold price information under budget prices.

Seth: Turning to slide six you'll see the 2023 and 2020 for fourth quarter comparisons for Geo sold revenue and adjusted EBITDA total Dsos were 120063 in the fourth quarter compared to $152003 51 in fourth quarter 2023.

Seth: Precious metals Geos sold in the fourth quarter of 2024, or 95565 higher by 5% compared to prior year, but excluding COVID-19.

Seth: For the fourth quarter, we received strong contributions from candle area benefited from the continued ramp up of new mine still continue and greenstone.

Sandip Rana: Candelaria delivered 26,891 GOs for the quarter, which was almost 70% higher than prior year and twice as many GOs as Q3 2020. Diversified GEOs sold were $24,298 for the quarter, compared to $32,770 for prior year, despite diversified revenue being flat year-over-year. The approximate $8,000 GEO sold difference is due to the impact of GEO conversion using hierarchical pricing. Total revenue for the quarter was $321 million compared to $303.3 million last year, a 5.8% increase. Precious metals accounted for 79% of revenue. Justice Ibeda was 9% higher for the quarter at $277.4 million compared to $254.6 million in Q4 2023.

Seth: And Olivia delivered 26891, geos for the quarter, which was almost 70% higher than prior year and twice as many geos as Q3 2024.

Seth: Diversified deal sold were 24298 for the quarter compared to 32770 for prior year, despite diversified revenue being flat year over year to approximately 8000 Geos sold difference.

Seth: This is due to the impact of Geo conversion using chemical prices.

Seth: Total revenue for the quarter was $321 million compared to $303 3 million last year, a five 8% increase precious metals accounted for 79% of revenue.

Seth: Adjusted EBITDA was 9% higher for the quarter at $277 4 million.

Seth: Third to $254 6 million in the fourth quarter of 2023.

Sandip Rana: As you turn to slide 7, you'll see a new measure that we have presented in our year-end financial results. It is called NetGeo. As we look at our royalty and streaming business, we think it's important to evaluate contributions from assets based on margin contribution and not necessarily top line measures. Royalty GOs are higher margin GOs as there is minimal cost associated with each GO sold versus a stream where an ongoing fixed payment is required. The measure net geos removes the cost of sales component for all geos so that all geos sold are represented after cost.

Seth: As you turn to slide seven Youll see a new measure that we have presented in our year end financial results. It is called net geos as.

Seth: As we look at our royalty and streaming business. We think it's important to evaluate contributions from asset based on margin contribution and not necessarily top line measures royalty geos are higher margin geos theres minimal cost associated with each dollar sold versus the screen Brent ongoing fixed payment is required.

Seth: The measure net geos geos removes the cost of sales component for all Geos. So thats. All Geos sold are represented after cost for Q4 2024, net Geos were 107140 for Franco Nevada compared to 129527% in Q4 2023.

Sandip Rana: For Q4 2024, net geos were $107,140 for Franco Nevada compared to $129,527 in Q4 2020. Slide 8 highlights the key financial metrics used by the company. As mentioned, total GEOs sold were $120,063, generating $321 million in revenue in Q4. With respect to costs, we did have a decrease in cost of sales compared to Q4 2023, due to the last three mouses sold, which is predominantly related to the absence of Colbray Panama. Depletion decreased to $60 million versus $68.9 million a year ago. Depletion is based on actual mining geos sold and barrels of oil equivalent received on the energy side of the business.

Seth: Okay.

Seth: Slide eight highlights the key financial metrics used by the company.

Seth: As mentioned total Geos sold were 120063 generating $321 million in revenue in fourth quarter.

Seth: With respect to costs, we did have a decrease in cost of sales compared to Q4 2023 due to less stream ounces sold which is predominantly related to the absence of Colgate patents.

Seth: Depletion decreased to $60 million versus $68 9 million a year ago depletion is based on actual mining geos sold and barrels of oil equivalent received on the energy side of the business.

Sandip Rana: As we receive less geos from Cobre, Panama and Antipakai, this impacts depletion as those assets are higher per ounce depletion. Adjusted net income was $183.3 million or $0.95 per share for the quarter, up 6% and 5% respectively versus prior year.

Seth: We received less Geos from Cobre, Panama in answer to Cai This impact depletion as those assets are higher per ounce depletion assets.

Seth: Adjusted net income was $183 3 million or <unk> 95 per share for the quarter up 6% and 5% respectively versus prior year.

Sandip Rana: Slide nine highlights the continued diversification of the portfolio, 76.5% of our full year 2024 revenue was generated by precious metals, with revenue being sourced 83.9% from the Americas. Our largest contributor to revenue was Candelaria at 14.6% for the full year. Slide 10 illustrates the strength of our business model to generate high margins. For full year 2024, cash cost per geo, which is essentially cost of sales divided by gold equivalent ounces sold, is $278 per geo. This compares to $286 per geo in 2023. For the quarter, the cash cost per ounce was $287 compared to $296 in 4th quarter 2023.

Seth: Slide nine highlights the continued diversification of the portfolio 76, 5% of our full year 2024 revenue was generated by precious metals with revenue being sourced 83, 9% from the Americas.

Seth: Our largest contributor to revenue was tangible area at 14, 6% for the full year.

Seth: Slide 10 illustrates the strength of our business model to generate high margins for full year 2024 cash cost per Geo, which is essentially cost of sales divided by gold equivalent ounces sold is two.

Seth: $278 per Geo.

Seth: This compares to 286 per <unk> in 2023.

Seth: For the quarter, the cash cost per ounce was 287 compared to 296% fourth quarter 2023.

Sandip Rana: As the gold price has risen, Franco Nevada has seen a significant increase in our margin per geo. Margin was $2,375 per geo in Q4 2020. We've always stated that in a rising commodity price environment. We expect to benefit fully as the cost per geo sold should not increase significantly.

Seth: The gold price has risen Franco Nevada has seen a significant increase in our margin per geo margin with 2375 per Geo in Q4 2020.

Seth: We've always stated that in a rising commodity price environment.

Seth: We expect to benefit fully at the cost per DSO should not increase significantly.

Sandip Rana: With respect to the company's GeoSOLT guidance for 2025, please refer to slide 11. For 2025, we are guiding total geo sold of between $465,000 to $525,000. which is a 7% increase over 2024. If you use constant pricing between 2025 and 2024, the increase would be 13% year-over-year. On this range we are guiding 385,000 to 425,000 precious metal geos for the year. This is a 14% increase in precious metal geos over 2020. The overall main drivers for GEOs year-over-year are, for precious metals, we'll benefit from contributions from recent acquisitions, Sabanier Western Limb Mining Operations Stream, Porcupine Complex Royalty, and Yannick Hochelotti.

With respect to the company's Geo sold guidance for 2025, please refer to slide 11.

Seth: Our 2025 year guiding total geos sold of between 465000 to 525000.

Seth: Which is a 7% increase over 2024.

Seth: We use constant pricing between 2025 and 2024, the increase would be 13% year over year.

Seth: On this range, we are guiding 385000 to 425000 precious metal geos for the year.

Seth: This is a 14% increase in precious metal geos over 2012.

Seth: The overall main drivers for <unk> year over year are for precious metals will benefit from contributions from recent acquisitions.

Seth: <unk> western limb mining operation stream or defined complex royalty Diana <unk>, we will continue to benefit from the ramp up of new mines that began production in 2024. So continue greenstone as Florida, North Tech and we will again to receive initial ounces from the currently under construction Valentine goldmine.

Sandip Rana: We will continue to benefit from the ramp-up of new mines that began production in 2024, Tocantino, Greenstone, and Solaris Norte, and we will begin to receive initial ounces from the currently under construction Valentine Gold Mine in the Please note we will no longer be receiving gold ounces from MindWay Solutions as the cap was reached on October 21st. Our guidance has been calculated using $2,800 per ounce for gold, $31 for silver, $950 platinum, $950 for palladium, and $100 iron. Obviously prices are volatile and as they change it will impact the conversion of non-gold commodities to geos.

Seth: The second half of 2025.

Seth: Please note, we will no longer be receiving gold ounces from mine waste solutions as the cap was reached in October 2024.

Seth: Our guidance has been calculated using $2800 per ounce for gold $31 for silver 950 platinum 950 for palladium and $100 of iron ore.

Seth: Obviously prices are volatile and as they change it will impact the conversion of non gold's commodities to geos.

Sandip Rana: On the energy side, we're using a price of $70 per barrel WTI and $3 MCF natural gas. Using our budgeted goal price of $2,800 per ounce and the midpoint of our total GEOs guidance range, we expect a 25% increase in 2025 revenue over 2020. Also, with respect to timing, we do expect to see better performance as the year progresses. So a stronger second half is expected.

Seth: On the energy side, we are using a price of $70 per barrel <unk> and $3 Mcf natural gas.

Seth: Using our budgeted gold price 2800 per ounce and the midpoint of our total Geos guidance range, we expect a 25% increase in 2020 high revenue over 2024.

Seth: Also with respect to timing, we do expect to see better performance as the year progresses.

Seth: A stronger second half as expected.

Sandip Rana: As we look forward over the next few years, we do forecast 2028 as the current high for GeoSold, based upon the information we have to date. For 2029, our outlook is $490,000 to $550,000 GEOs sold. Of this range, precious metals will be $375,000 to $415,000 GEOs. Main contributors will be higher production from Antimina due to access to higher grade ore based on the latest mine plant. Full year contributions from Valentine Gold. and new mine starts from Stibnite Gold, Eskay Creek, Castle Mountain and Copper World. We've also assumed the startup of Takataka with a partial year contribution.

As we look forward over the next few years, we do forecast 2028 is the current high for Geos sold based upon the information we have to date.

Seth: 129, our outlook is 490000 to 550000 Geos sold.

Seth: This range precious metals will be 375 to 415000 geos.

Seth: Main contributors would be higher production from and to Mena due to access to higher grade ore based on the latest mine plan full year contributions from Valentine goal.

Seth: Our new mine start from Stibnite.

Seth: SK Creek Castle Mountain and comparable.

Seth: We've also assumed the startup of <unk> with a partial year contribution.

Sandip Rana: We assume mine expansions for Candelaria, Coracoaco and Antipokai, and Majita. For the energy assets, we do assume an increase in production over the next five years, resulting in an increase in geos. Also, we've held energy prices flat at $70 a barrel WTI and $3 in MCF natural gas. Overall, when you look at the outlook for GeoSold, The company has approximately 12% built-in organic growth from 2024 to 2029 at budgeted commodity prices, excluding Cobre Panama. This also assumes that no additional assets are added to the portfolio. Please note that for all Outlook ranges, we have excluded Cobrai Panama in our GeoSOLT numbers.

Seth: We assume mine expansions for candle area, Cora Kohei coed answer for Kai and machine.

For the energy assets, we do assume an increase in production over the next five years, resulting in an increase in geos.

Seth: So we've held energy prices flat at $70, a barrel WTS and $3, an mcf natural gas.

Seth: Overall, when you look at the outlook for Geo sold.

Seth: Company has approximately 12% built in organic growth from 2024 to 2029 have budgeted commodity prices, excluding Cobra Panama.

Seth: Also assumes that no additional assets are added to the portfolio.

Seth: Please note that for all outlook ranges, we have excluded Cobra, Panama and our Geo sold numbers at Cobre, Panama remained in production with expected deliveries and sales from <unk>.

Sandip Rana: If Cobrai Panama remained in production, we would have expected deliveries and sales of between 130,000 and 150,000 Geos A.

Seth: 130000, and 150000 Geos.

Seth: Yeah.

Sandip Rana: One additional item to note, with the legal proceedings that will move forward related to Cobre Panama, we're expecting to incur annual costs of approximately $10 million per year. These costs will continue to be disclosed separately in our finances.

Seth: One additional item to note with the legal proceedings that will move forward related to cooperate Panama, we're expecting to incur annual cost of approximately $10 million per year.

Seth: These costs will continue to be disclosed separately in our financials.

Sandip Rana: Slide 13 summarizes the financial resources available to the company. When including our credit facility of $1 billion, total available capital at December 31st was $2.4 billion. After year-end, we have funded the $500 million Sabanier-Western Limb Complex acquisition and expect to fund the Fort Defiant Royalty acquisition during second quarter. The company remains well capitalized to continue to add long-life, high-quality assets to the portfolio.

Seth: Slide 13 summarizes the financial resources available to the company when including our credit facility of $1 billion total available capital at December 31 was $2 4 billion.

Seth: After year end, we have funded the $500 million of any western limb complex acquisition and expect to fund the port find royalty acquisition during second quarter.

Seth: The company remains well capitalized to continue to add long life high quality assets to the portfolio.

Candida Hayden: And now I'll pass it over to Jonah, and we're happy to answer any questions. Thank you.

Seth: And now I'll pass it over to Joanna and we're happy to answer any questions.

Joanna: Thank you.

Candida Hayden: Ladies and gentlemen, we will now begin the question and answer session. As a reminder, you may type your question in the Q&A section of the webcast platform.

Joanna: Ladies and gentlemen, we will now begin the question and answer session.

Joanna: A reminder, you may type your question in the Q&A section of the webcast platform for those on the phone who wish to ask a question. Please press star one on your Touchtone phone. If you are using a speaker phone. Please lift the handset before pressing any case.

Operator: For those on the phone who wish to ask a question, please press star 1 on your touch-tone phone.

Lawson Winder: If you are using a speakerphone, please lift the handset before pressing any The first question comes from Lawson Winder at Bank of America Security. Yes, thank you very much, Operator. And good morning, Paul and Sandip.

Joanna: The first question comes from Lawson Winder at Bank of America Securities. Please go ahead.

Lawson Winder: Yes, Thank you very much operator, and good morning, Paul and she needs.

Paul Brink: I wanted to start off with a couple of questions on Cobra Panama, if I might. So one would be just related to President Molino and some comments that he's made publicly, President Molino of Panama. He indicated that he would require all arbitrations to be halted prior to entering into discussions with First Quantum. I just want to confirm that that also included the Franco arbitration. And does Franco have the ability to put its arbitration on hold or just temporarily put it aside in order to facilitate those negotiations if needed? Thank you Lawson, Paul. A couple of things there, yes, separate arbitration processes and separate regimes.

Lawson Winder: I wanted to start off with a couple of questions on Cobre, Panama, if I might so.

Lawson Winder: One would be just related to president Molino and does some comments that he's made publicly president molino, Panama He indicated that.

Lawson Winder: She would require all arbitrations to be halted prior to entering into discussions with first quantum.

Lawson Winder: Wanted to confirm that that also included the Franco arbitration and at this frankly have the ability to put its arbitration on hold or or or just temporary put her to temporarily put it aside in order to facilitate those negotiations if needed.

Lawson Winder: Thank you.

Lawson Winder: Paul.

Lawson Winder: A couple of things, yes separate arbitration processes.

Lawson Winder: And a separate regimes.

Paul Brink: There is the ability under each of those processes that you can put the arbitration on hold for a fixed time frame, so that is a possibility, although we haven't had any asks from any of the parties to put us on hold.

Lawson Winder: There is the ability.

Lawson Winder: Each of those processes that you can put the arbitration on hold.

Lawson Winder: <unk>.

Lawson Winder: For a fixed timeframe. So that is a possibility although we haven't had any asks for it.

Lawson Winder: Any of the parties to put us on hold yet.

Lawson Winder: Okay, perfect and then thanks for that Paul.

Paul Brink: Okay, perfect, and then thanks for that call. And then another comment that President Molina had made. Speaking about the economics of the prior deal negotiated under the Cortezo government, relating to Cobre Panama and noting that it was unfavorable for Panama, has Franco Nevada had any messages delivered or has any understanding what that could potentially mean for the Franco stream or whether it means anything at all? And, you know, for example, there's been some discussion of, you know, potential change in the ownership position, so a potential ownership position going to the country of Panama. I mean, can you comment on any potential applications for for Franco there?

Lawson Winder: And then another comment that.

Speaker Change: President Milena all had made was just thinking about the economics of the prior deal negotiated under the <unk> government relating to Cobra, Panama and noting that it was unfavorable for for Panama has.

Lawson Winder: As Franco Nevada had any.

Messages delivered or has any understanding what that could potentially mean for.

Lawson Winder: For the Franco stream or whether it means anything at all for.

Lawson Winder: For example, there's been some discussion of a potential.

Lawson Winder: Potential changes.

Lawson Winder: The ownership positions.

Lawson Winder: Ownership position going to the.

Lawson Winder: Country Panama.

Lawson Winder: Yeah.

Speaker Change: Let me can you comment on any potential applications for our for Franco there I know, it's highly speculative but it has been mentioned many times in the Panamanian impressive we just like to get your views.

Paul Brink: I know it's highly speculative, but it has been mentioned many times in the Panamanian press, and we'd just like to get your views. Yeah, so first off, in terms of the economics, I think that the deal that was negotiated a couple of years back was positive, was a good deal for Panama. You'll recall in particular it had the provisions that provided minimum payments in the order of $375 million a year, which I think for any country is a particularly strong provision. I think there were good economics for Panama in that deal. I know there has been discussion of the country potentially wanting to get a better deal.

Speaker Change: Yeah, So first off in terms of the economics.

Speaker Change: I think that the deal that was.

Speaker Change: A couple of years back.

Speaker Change: <unk> was positive was a good deal for Panama Youll recall in particular had had the provisions.

Speaker Change: Thanks.

Speaker Change: Provided minimum payments.

Speaker Change: The order of 375 million, a year, which I think for any country, I guess, particularly strong provision so.

Speaker Change: I think they were good economics, Panama in that deal.

Speaker Change: I know there has been discussion.

Speaker Change: Sure.

Speaker Change: The country actually wanting to get a better deal.

Paul Brink: I'm not surprised by that.

Speaker Change: Not surprised by that.

Lawson Winder: You know, in terms of the way that may go for Franco, we're financiers here, not owners. So on the legalities of it, any change in ownership doesn't change the way that our stream is calculated. Any increase in taxes in country or any increase in royalties, none of that changes the way that our rule of law is calculated. Yeah, okay. Thank you very much for those comments. It's very helpful.

Speaker Change: In terms of the way that May go for Franco were financier cannot owners.

Speaker Change: So on the legalities of it and any change in ownership doesn't.

Speaker Change: Change the way that upstream is calculated.

Any increase in taxes in country or an increase in royalties.

Speaker Change: That changes the way that our royalties.

Speaker Change: Yes, okay. Thank you very much for those comments very helpful and then.

Lawson Winder: And then just two of the other streams that I'd like to ask about, it'd just be helpful to get a little bit of color on specifics.

Speaker Change: Just two of the other streams.

Speaker Change: I'd like to ask about just be helpful to get a little bit of color on specifics so with DSS.

Lawson Winder: So, with the SSW, or the Sabani Snow Water South African PGM stream, so it's closed. Congratulations.

<unk> Stillwater, South African PGM stream disclosed congratulations.

Sandip Rana: And then just for Q1, when we think about the 7,000 GEOs from 24, and then the 45-day delay before any GEOs are actually delivered to Franco, how should we think about when the first delivery might occur, whether it be Q1 or Q2, or what would you recommend us modeling with respect to that particular stream? It's Lawson and Sandip. So it has closed, it closed a couple of weeks ago. The delivery from September to December for 2024, we will receive in Q1. And you're correct, the next delivery related to 2025 production, there's a 45 day time delay.

Speaker Change: And then just for Q1, when we think about the 7000 Geos from 24 to 45 day delay between before any geos or actually delivered to Franco how should we think about it.

Speaker Change: When the first delivery might occur whether it would be Q1 or Q2 or what would you recommend us modeling.

Speaker Change: With respect to that particular strength.

Speaker Change: It will also mean sandeep.

Speaker Change: So the it has closed or closed a couple of weeks ago and the delivery from September to December for 2024, we will receive in Q1 and you are correct that the next delivery related to 2025 production. There's a 45 day time delay so that'll come in in Q2. So for Q1, you should only.

Sandip Rana: So that'll come in in Q2.

Sandip Rana: So for Q1, you should only be budgeting or estimating the delivery related to 2024.

Speaker Change: Budgeting or estimating the delivery related to 2024.

Unknown Executive: For more information, visit www.FEMA.gov Okay, fantastic.

Speaker Change: Okay Fantastic and then just longer term. Thank you for that Sandeep just longer term.

Lawson Winder: And then just longer term, thanks for that Sandip, just longer term, thinking about the 28 and 29 got in, you know, Maginot and Island are now sort of moving in the direction of becoming one operation. So with Maginot, there's a 3% royalty. And then with Island, there's a 0.62% royalty. How is that delineated? Or, you know, is there potential for those to become a combined royalty? Or would it strictly depend on from where the ore comes?

Speaker Change: Thinking about the 28 and 29 got it.

Speaker Change: <unk> an island are now sort of moving in the direction of becoming one operation So with <unk> there is a 3%.

Speaker Change: Royalty and then with <unk>.

Speaker Change: Ireland is a 62% royalty how long is that delineated or.

Speaker Change: Is there the potential for those to become a combined royalty or would it strictly dependent on from where the order comes in so the context here is that the idea is to it.

Sandip Rana: And so, you know, the context here is that the idea is to, you know, eventually close the Island mill and process Island ore at Maginot. Is there an additive benefit here? Or is it just, you know, we have to figure out what the mix is between the two ore sources going forward to get to the right royalty level? Yeah, so right now on island, we only cover up a portion of the deposit. And so, but at Magino, we cover the full land package. You're right, they are talking about, you know, shutting the island gold mill and expanding the Magino mill to 15,000 tonnes per day.

Eventually close the island mill and process island or Geno.

Speaker Change: Is there an additive benefit here or is it just.

Speaker Change: To figure out what the mix is between the two ore sources going forward to get to the right royalty level.

Speaker Change: Yes, so so right now on island, we only cover a portion of the deposit and so but <unk> cover the full land package you're right. They are talking about.

Speaker Change: Sharing the island gold mill and expanding the <unk> mill to 15000 tonnes per day, and almost just reviewing that right now.

Sandip Rana: Alamos is reviewing that right now. So once they do that, it'll just be a question of where does the ore come? When we did our deal, we had budgeted 11,500 tonnes per day coming from Magino. So I think at a minimum, that's what we should be receiving on any production going forward once they do expand. And then in your current 2028 and 2029 guidance, that's the 11,500 tons per day. Is that correct? Right.

Speaker Change: So once they do that will just be a question of where does the or when we did our deal.

Speaker Change: We budgeted 11500 tonnes per day coming from Gino. So I think at a minimum that that's what we should be receiving.

Speaker Change: On any production going forward once they do you expand the mill.

Speaker Change: And then in your current 2028 2009 guidance. That's the 11500 tonnes per day is that correct.

Speaker Change: Great. Thank you very much guys I appreciate it.

Lawson Winder: Thank you very much, guys. I appreciate it. Thank you.

Speaker Change: Thank you. The next question comes from Cosmos <unk> at CIBC. Please go ahead.

Cosmos Chiu: The next question comes from Cosmos Chiu at CIBC. Please go ahead. Thanks, Paul and...

Thanks, Paul and Sandeep.

Cosmos Chiu: Maybe my first question is on geos and how you calculate it. Could you remind us, you know, each and every quarter, how you calculate geos, how you convert, you know, commodities, not gold into gold equivalent ounces? Is that based on the spot prices during that quarter? Or is it based on your assumption that you put out beginning of the year, like today, $2,831 in Hi, Cosmos. Yeah, we will adjust at each quarter. So essentially, at a high level, we'll take our non-gold revenue, and we will divide by the average gold price for the quarter. So obviously, you saw last year, gold prices increased, and it impacted the number of geos or diversified assets generated, even though the revenue was the same as what we had expected for the year.

Speaker Change: Maybe my first question is on <unk>.

Speaker Change: Deals and how you calculate it.

Speaker Change: Could you remind us.

Speaker Change: Each and every quarter.

Speaker Change: How you calculate Gilles how you convert.

Commodities not gold into gold equivalent analysis is that based on the.

Speaker Change: Spot prices during the quarter or is it based on your assumption that you put out.

Speaker Change: Beginning of the year like today $2831 an ounce.

Speaker Change: Hi, Cosmos, yes, we will adjust it each quarter, so essentially at a high level, we will take our non gold revenue and we will divide by the average gold price for the quarter. So obviously you saw last year gold prices increase and it impacted the number of Geos are diversified asset.

Speaker Change: January even though the revenue was the same as well.

Speaker Change: We had expected for the year.

Cosmos Chiu: Yeah. And Sandip, as you mentioned last year, you had to change it because gold prices clearly fluctuated quite a bit beyond what you had expected beginning of 2024.

Speaker Change: Yes.

Speaker Change: Sandeep as you mentioned last year, you had to change it because the.

Speaker Change: Gold prices clearly fluctuated quite a bit.

Speaker Change: Beyond what you had expected beginning of 2024, but for 2025 guidance I guess my question is.

Sandip Rana: But for 2025 guidance, I guess my question is, Could you share with us how much buffer you've put into that guidance? And. I guess my question is, how much can it withstand in terms of volatility and commodity prices? Just given that last year, when you had to change your guidance in 2024, it was not exactly too well received. I'm just trying to see if that could happen again in 2024. Uh, you know, if it does happen, it's actually a great thing, because I mean, the gold price has gone up significantly. But, you know, our guidance range is, you know, a 60,000 ounce range, you know, you take the midpoint, so we've got 30,000 geos to the downside.

Speaker Change: Could you share with us how much buffer you put into that guidance.

Speaker Change: And.

Speaker Change: I guess my question is how much can it withstand in terms of volatility and commodity prices.

Speaker Change: Just given that last year, when you had to change our guidance in 2024, it was not exactly two well received.

Speaker Change: Just trying to see if that could happen again in 2025.

Speaker Change: If it does happen in such a great thing because that means the gold price has gone up significantly.

Speaker Change: Our guidance range is.

Speaker Change: Yes.

Speaker Change: Ah 60 <unk>.

Speaker Change: <unk> range you take the mid point, so we've got 30000 geos to the downside.

Sandip Rana: You know, if gold price went up, you know, you know, around 20%, I think we'd still be okay. But obviously, it's a risk that's, part of the way we calculate guidance. Certain years, you benefit when other commodities outperform gold prices. But obviously, gold outperforming now, it is impacting the conversion. But we did run a number of sensitivities at this stage, we're comfortable with the range.

Speaker Change: Gold price went up.

Speaker Change: Around 20% I think we'd still be okay.

Speaker Change: But obviously, it's a risk.

Speaker Change: Part of the way, we calculate guidance certain year, you benefit when other commodities outperform coal prices.

Speaker Change: Correct, obviously gold outperforming now it is impacting the conversion, but we did run a number of sensitivities at this stage, we're comfortable with the range.

Sandip Rana: of course yeah I agree you know higher gold prices is always better in the end Revenue that really matters. It's cash flow that really matters. I think I think you're correct.

Speaker Change: Of course, yes, I agree you know higher gold prices is always better Indiana.

Speaker Change: Revenue that really matters, its cash flow that really matters.

Speaker Change: I think youre correct.

Cosmos Chiu: Um, maybe moving on to Kobe, Panama. Paul, as you mentioned, you know, the international arbitration seems to be under different regimes. And I think I noticed that your meeting is October 2026. I think First Quantum had mentioned that their meetings in February 2026. Could you maybe, is there any importances that we should be aware of, of the different timing of the different sort of regimes that the arbitration is going under? Or is it pretty much? I don't think there's anything to read into the timing there, Cosmos. First Quantum, you know, has the option of going either under the ICC, which they're going under, that they could also go under the Canada Panama Free Trade Agreement, which is what we're going under.

Speaker Change: Maybe moving onto Cobra, Panama, Paul as you mentioned.

Speaker Change: The international arbitration seems to be under different regimes, and I think I notice that your meetings in its October 2026, I think first quantum had mentioned at their meetings in February 2026 could you maybe is there any importance is that we should be aware of.

Speaker Change: The different timing of the different sort of regimes.

Speaker Change: The arbitrations going under or is it pretty much the same.

Speaker Change: I don't think theres anything to read into the timing there cosmos.

Speaker Change: First quantum has the option of going either under the ICC, which they going under the Lake will also go under the Canada, Panama Free trade agreement, which is what we are going out there.

Paul Brink: You know, it's MPSA that's pursuing it under the ICC. We don't have that option, so our only option is under the Canada Panama. The different tribunals have different timeframes that they work under. The difference in timing is just because of the different process.

Speaker Change: It's NPSA pursuing it under the ICC we.

Speaker Change: We don't have that option.

Our only option this under the Canada Panama.

Speaker Change: The difference.

Speaker Change: The different tribunals have different timeframes that they will come back.

Speaker Change: Alright.

Speaker Change: And timing is just because of the different processes.

Paul Brink: Okay, but as you said, Paul, you know, this is really I think your preferred alternative is to for the operator and the government to work out something on Absolutely, that's always the best out there. Of course.

Speaker Change: Okay, but as you said Paul this is really a plan b.

Speaker Change: Your preferred alternative is to for the operator, and the government to work out something on their own right.

Speaker Change: Absolutely that's always the best outcome.

Speaker Change: Of course, one last question Porcupine.

Cosmos Chiu: One last question. Porcupine? Could you maybe talk about how that deal came about? Clearly, this is the only royalty streaming involvement in the Newmont divestitures. And so how did the parties come together? What's the evolution of that deal?

Speaker Change: Could you maybe talk about how that deal came about clearly this is the only royalty streaming involvement in the newmont divestitures.

Speaker Change: And so how did the parties come together, what's the evolution of that deal.

Ian: My other part of the question is that I see that you are providing a credit facility, Paul, as you mentioned, and an equity investment as well, more sort of full-service financing. Is that the type of deal we could expect on a go-forward basis or service on a go-forward?

Speaker Change: My other part of the question is that I see that you are providing a credit facility Paul as you mentioned and then equity investment as well.

Speaker Change: More sort of full service.

Speaker Change: Financing is that the type of deal we could expect on a go forward basis or service on a go forward basis.

Ian: Hi, Cosmos. It's Ian here. I hope you're having a good day. Happy to answer that question. I guess first off in terms of how it came together. Tony McCouch, we know well, a number of people within Franco Nevada have a strong relationship with Tony and when those assets came for sale, the obvious strategy was to work with, you know, the ideal person to revitalize And so we quickly spoke with Tony and formed a strategy together as to how we would back him in doing that. And the rest is history. did provide multiple tranches. And, you know, I think that's what you will see going forward.

Ian: Hi, Cosmos, it's Ian here.

Ian: Congrats on a good days, having to answer that question I guess first off in terms of how it came together.

Ian: Turning to coach we know well a number of people and Franco Nevada have a strong relationship with Tony and when those assets came for sale.

Ian: The obvious strategy was to work with the ideal person to revitalize them.

Ian: And so we quickly.

Tony: Spoke with Tony.

Tony: Formed a strategy together as to how we would back him in doing that.

Tony: And the rest is history.

Tony: We.

Tony: Did provide multiple tranches.

Tony: And I think Thats, what you will see going forward when we can do that we find a suitable.

Ian: When we can do that, we find a suitable human asset will provide flexibility, because capital markets aren't always the most efficient around these kinds of things. And when we see good ability, you know, to get a good return for our shareholders, we'll utilize other elements of the capital structure. So it's not going to be all of what we do, but it certainly we hope it's a component going forward. And we're very pleased with the result of that transaction. Great.

Tony: Asset will provide flexibility because capital markets aren't always the most efficient around these kinds of things and when we see good ability.

Tony: To get a good return for our shareholders will utilize other elements of the capital structure.

Tony: So it's not going to be all of what we do but certainly we hope it's a component going forward and we're very pleased with the results of that transaction.

Speaker Change: Great. Those are all the questions I have thanks, once again, Paul Sandeep <unk>. Thank you.

Cosmos Chiu: Those are all the questions I have. Thanks once again, Paul, Sandip, and Eaun. Thank you.

Speaker Change: Thank you. The next question comes from Josh Wolfson at RBC capital markets. Please go ahead.

Josh Wolfson: The next question comes from Josh Wolfson at RBC Capital Markets. Please go ahead. Thanks very much. First question on the five-year guidance. I noticed the inclusion of the underground production expansion at the Candelaria and then also Taka Taka. We don't have a lot of, you know, insights as to what the production contribution could be for those opportunities. Is the company able to provide a bit more disclosure there and maybe what the volume contribution would Sure. So, you know, Candelaria underground expansion, you know, they've talked about it going from 14,000 tonnes per day to 22,000 tonnes per day.

Speaker Change: Okay. Thanks, very much first your first question on the five year guidance I noticed the inclusion of the underground production expansion of candle area.

Speaker Change: And then also Tucker Tucker.

Speaker Change: We don't have a lot of.

Speaker Change: Insights as to what the production contribution could be for those opportunities.

Speaker Change: Able to provide a bit more disclosure there and maybe what the volume contribution would be.

Speaker Change: Sure So candidly area underground expansion.

Speaker Change: Dave talked about going from 14000 tons per day to 22000 tons per day.

Josh Wolfson: And, you know, they'll likely make a decision later this year. So, you know, we Obviously, we've made the assumption that they will go ahead with that, but you know, they have to disclose whether they will or not. On Taka Taka, we just looked at where First Quantum is, and with everything going on in Argentina, it would likely be their next project that they develop. In 2029, we've assumed a partial, you know, ramp up. It works out to 4,000 geos to Franco in the total, so it's not significant.

Speaker Change: And we'll likely make a decision later this year so we.

Speaker Change: Obviously, we've made the assumption that they will go ahead with that.

Speaker Change: But they have disclosed whether they will or not on Taco Taco, we just looked at where first quantum is.

Speaker Change: With everything going on in Argentina, It would likely be their next project that they develop.

Speaker Change: In 2029, we've used we've assumed a partial.

Speaker Change: Yes.

Speaker Change: Ramp up it works out to about 4000 geos to Franco in total so it's not significant.

Josh Wolfson: Good, thank you very much.

Speaker Change: Got it thank you very much.

Josh Wolfson: And then just a couple of sort of small details. So for Paul Morejo, the disclosures talk about production declining in 2029. Should we assume that production stays steady through 2028 versus some of the very high levels this year? That's correct. You know, from 2025 to 2028, it's pretty consistent. And then it's about a 50% drop in 2020. And Josh, those operations have had a great history of being able to replace ounces. So that's what's in the mine plan today. We hope that in the interim that there'll be the ability to extend that mine plan.

Speaker Change: And then just a couple of sort of small details so for Palmer eho.

Speaker Change: The disclosures to talk about production declining in 2029.

Speaker Change: Is the should we assume that production stays steady through 2028 versus some of the very high levels. This year.

Speaker Change: Thats correct from 2025 to 2028, it's pretty consistent and then it's about a 50% drop in 2029.

Josh: And Josh those operations.

Josh: Great history of being able to replace ounces.

Josh: That's what's in the mine plan today, we hope that in the interim that there'll be the ability to extend that mine plan.

Josh Wolfson: Thank you.

Josh: Got it thank you and one last small housekeeping question.

Josh Wolfson: And one last small housekeeping question. For Bald Mountain, and I know it's not a huge asset in terms of the overall production, but just because the royalty has come up pretty strongly in recent years, and the royalty can vary quite a bit depending on what land is being mined. For these new Redbird pits, any sort of idea what the royalty rate would be? Off the top of my head, Josh, I can't recall. I'll have to get back to you.

Josh: For both <unk> and <unk>.

Josh: I know, it's not a it's not a huge.

Josh: Asset in terms of the overall production.

Josh: But just because the royalty has come up pretty strongly.

Josh: At year's end.

Josh: The royalty can vary quite a bit depending on what land is being mined for these new redbird.

Josh: Pits.

Josh: Any sort of idea of what the.

Josh: Royalty rate would be.

Speaker Change: Off the top of my head, Josh I can't recall.

Josh: I'll have to get back to yellow.

Josh Wolfson: Okay, thanks very much.

Josh: Got it okay. Thanks very much.

Heiko Ihle: Thank you. The next question comes from Heiko Ihle at HC Wainwright. Please go ahead. Hey there, Paul, Sandy, and team. Thanks for taking my question. A recent market volatility has been quite rocky. I mean, today is another fun day in the markets.

Speaker Change: Thank you. The next question comes from Heiko Ely at H C. Wainwright. Please go ahead.

Hey, there Paul Sandeep and team thanks for taking my questions.

Speaker Change: Recent market volatility has been quite rocky I mean today is another funding in the markets.

Paul Brink: It gets a bit of an open-ended question, but I mean, do you already see some impact of what's going on just, you know, in pretty much every stock in these out there flowing down into your M&A discussions, or is this essentially offset because gold's still sitting at $2,900? I call the, everyone is impacted by volatility. in some form. But I got to say that the gold mining industry is very fortunate in terms of, you know, in most places, you can put the gold on a plane and fly it to wherever you want and sell it wherever you want.

Speaker Change: I guess a bit of an open ended question, but I mean do you already see some impact of what's going on just in.

Speaker Change: Pretty much every stock in these out there flowing going into your M&A discussions or is this essentially offset because gold skull sitting at 29 our books.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Everyone is impacted by volatility.

Speaker Change: In some form.

Speaker Change: Not to say that the gold mining industry is very fortunate.

Speaker Change: Terms of in most places you can put the gold on a claim.

Speaker Change: Slide to wherever you want to sell it wherever you want so I would say of all the industries, it's probably the least impacted.

Paul Brink: So I'd say of all the industries, it's probably the least. And it doesn't come up in conversation where people are like, I want to get out now. No, no, no, certainly we haven't had any conversations like that.

Speaker Change: And it doesn't come up in conversation, where people are like I want to get out now.

Speaker Change: Soon.

Speaker Change: No no no.

Speaker Change: Certainly we haven't had any conversations like that.

Speaker Change: Okay.

Paul Brink: Building on what you almost just answered a little bit, have there been rumblings of countries trying to, your words, put stuff on planes and get it out of there, make that a little bit tougher, given what's going on geopolitically right now? You know, not in a sense of operations, although I'm sure you're familiar that there's been a huge movement in stocks, particularly gold stocks, out of London and into the U.S. And I believe there's some of that happening in terms of copper stocks as well. But other than that, I haven't heard any of that in other jurisdictions.

Speaker Change: Building on what you almost just answered a little bit have there have been rumblings of countries trying to Youre awards put stuff on planes and get it out of there make that a little bit tougher given what's going on geopolitically right now.

Speaker Change: Right.

Speaker Change: And our sense of operation cycle, although I'm sure you're familiar with.

Speaker Change: Been a huge movement in stocks, particularly gold stocks out of London and into the U S.

Speaker Change: And I believe that some of that happening in terms of copper stocks as well, but I haven't done.

Speaker Change: Matt I Havent heard it.

Speaker Change: Any of that in other jurisdictions.

Unknown Executive: That's reassuring. I'll get back to you.

Speaker Change: That's reassuring I will get back in queue.

Speaker Change: Okay.

Daniel Major: Thank you. The next question comes from Daniel Major at UBS. Please go ahead. Hi there, thanks for the question, can you hear me okay? Great, thanks.

Speaker Change: Thank you. The next question comes from Daniel Major at UBS. Please go ahead.

Daniel Major: Hi, there.

Daniel Major: Thanks for the question can you hear me okay.

Daniel Major: Yes.

Great. Thanks.

Sandip Rana: Just the first question you, I think, have partially answered already, but can you just run us through the delta, the key driver for the moderation in the guidance 2029 versus 2028? Sure. Hi, Daniel. Sandip here. Really, the main adjustment is Guadalupe-Palmarillo, where you essentially, you know, based on the mine plan that we have right now, and as Paul mentioned, the mine continues to be extended over time. So we're hopeful that the mine life will continue to be extended. You get a 50% drop in geos, and that's essentially the drop.

Just the first question I think is partially answer it already but can you just.

Bonus through the Delta the key drivers for the moderation in the guidance 2029 versus 2028.

Daniel Sandeep: Sure Hi, Daniel Sandeep here.

Daniel Sandeep: Really the main the main adjustment is Guadalupe Palmer rail where are you essentially based on the mine plan that we have right now.

Speaker Change: As Paul mentioned the mine continues to be extended over time. So we're hopeful that the mine life will continue to be extend it you get a 50% drop in.

Daniel Sandeep: And thats essentially the drop in 2029.

Sandip Rana: Thank you. That's clear.

Speaker Change: Thank you.

Eaun Gray: And then. The second question, just thinking slightly bigger picture about the Spanier deal and the profile that you've provided. I mean, when we look at this kind of asset towards the upper end of the cost curve, obviously a large reserve life, but in the context of a commodity with potentially challenging longer term fundamentals, Ivanhoe has the plans to bring on the Platt Reef towards the end of the decade. How concerned are you about the longevity of production basis, the kind of cost position of the asset and the fundamental outlook for the market? Hi Daniels, Eaun Gray again.

Speaker Change: And then.

Speaker Change: The second question just thinking.

Speaker Change: Slightly bigger picture about the Spanish deal.

Speaker Change: The profiles.

Speaker Change: You've provided I mean, when we look at this.

Speaker Change: Kind of asset towards the upper end of the cost curve of large reserve life, but in the context of a commodity with potentially.

Speaker Change: Essentially challenging longer term fundamentals either no has the plans to.

Speaker Change: Bring on.

Speaker Change: The <unk> towards the end of the decade, I mean, how concerned are you about the longevity of production.

Speaker Change: Basis.

Speaker Change: Cost position of the asset and the fundamental outlook for the market.

Speaker Change: Hi, Daniel Ian Great guys.

Eaun Gray: to meet you. In terms of the assets, you know, I actually think that when you look at the cost curve, you'll see they're more towards the middle, especially when you account for byproducts. Relative to the plat reef, you have very significant non-PGM byproducts coming out of the UG2, which Spanier is focused on. So things like chrome, iridium, ruthenium have kind of non-catalytic uses. So that stands to benefit these authors. relatively compared to some of the others. The infrastructure, this is a market that as I'm sure are well aware, offtake of crossings rates is very limited as to where it could go.

Speaker Change: I hope to meet you.

Speaker Change: In terms of the assets.

Speaker Change: I actually think that when you look at the cost curve, you'll see therefore towards the middle, especially when you account for byproducts.

Speaker Change: Relative to the <unk> very significant on PGM byproducts coming out of the <unk>, which is focused on things.

Speaker Change: Things like from Iridium ruthenium.

Speaker Change: Kind of non catalytic uses.

That stands to benefit these offerings.

Speaker Change: Relatively.

Speaker Change: Compared to some of the others.

Restructure this is a market that as you I'm sure are well aware.

Speaker Change: Take our concentrates is very limited as to where it could go as.

Eaun Gray: Sabanier is fully integrated. A lot of these other operations, it's unclear whether they have all of the offtake or other things such as water and other key elements for production that are operations. It will take a lot of comfort that long term, they'll be strong producers. from that basket and fully integrated nature of the audience.

Speaker Change: <unk> fully integrated a lot of these other operations unclear.

Speaker Change: Whether they have all of the offtake or other things such as water and other key elements for production that are necessary.

Whereas these are very much a fully integrated operations to take a lot of comfort that long term there'll be strong producers.

Speaker Change: That basket of fully integrated nature of the operations.

Eaun Gray: Okay, thanks. Thanks for that.

Speaker Change: Okay. Thanks.

Speaker Change: Thanks for that and then just final one.

Unknown Executive: And then, just final one. In the last couple of calls, you've filled the questions and there's been some talk about fertilizers, potash, I see acquired a small option from Brazil, Podash Corp. Can you give us any sense of how advanced are you in in this segment of the market with other potential deals and how they rank relative to other opportunities out there? Thanks.

Speaker Change: And the last couple of calls.

Speaker Change: Further questions and Theres been some talk about.

Speaker Change: Title losses potash.

Speaker Change: Yes.

Speaker Change: Claude is small.

Speaker Change: Option from Brazil, Potash Corp, can you give us any sense of.

Speaker Change: Hello.

<unk> and <unk>.

Speaker Change: In this segment of the market with other potential deals and how they.

Speaker Change: Rank relative to other opportunities out there.

Speaker Change: Thanks.

Paul Brink: And maybe on the strategy overall, the... You know our objective is to be the go-to gold stock and that means always the focus is on gold and precious metals. But I've always said also sometimes you can you can take advantage of good opportunities and other commodities when they come along Hence, we have had a diversified component over time. That the opportunity with Brazil potash there is for a very low entry point. We were able to get an option to ride a royalty if and when that very large project does get developed. I think it's a high likelihood it does, this is a very attractive deposit, it sits very close to the huge agricultural area in Brazil.

Speaker Change: Maybe on the on the strategy overall.

Speaker Change: Our objective is to be the go to gold stock and that means voice focused is on gold and precious metals.

Speaker Change: But I've always said also.

Speaker Change: Sometimes you can you can take advantage of good opportunities in other commodities when they come along.

Speaker Change: And hence we have had a diversified component over time the opportunity with Brazil potash. There is for a very low entry point, we were able to get an option to ride a royalty if and when that very large part of that project does get developed.

Speaker Change: I think it's a highlight we hope it does this is a very attractive deposit it's very close to the huge agricultural area in Brazil.

Paul Brink: Its cost advantages in terms of logistics are very substantial. I'm very hopeful that we'll get to exercise that option over time. Other than that, as we look at the pipeline, as usual, there's a mix of what we're looking at, precious metal and diversified, but by far the most of it is precious metal, and so I expect that. Most likely what you'll see as we go forward the next number. Great, thanks so much. I'll go back.

Speaker Change: It's cost advantages in terms of logistics are very substantial.

Speaker Change: I am very hopeful that we'll get to exercise that option over time.

Other than that as we look at the pipeline that there as usual that's a mix of what we're looking at precious metal and diversified but by far the most of it is precious metal and so I expect us.

Speaker Change: Most likely what you'll see as we go forward the next number of months.

Speaker Change: Okay.

Speaker Change: Great. Thanks, so much ill get back in the queue.

Brian Macarthur: Thank you.

Speaker Change: Thank you. The next question comes from Brian Macarthur at Raymond James. Please go ahead.

Brian Macarthur: The next question comes from Brian MacArthur at Raymond James. Please go ahead. Yeah, so Brian, you have a it's partway through 28. So you'll have a full year drop in 29. So you do lose ounces from Antipakai in 2029. So between Guadalupe and Antipakai, you lose some ounces. And then on the other side, you know, you've got Copper World, you've got Takataka, that'll pick up some of that. Great, thanks. And just on Candelaria while I'm at it, the step down from 68 to 40, again, is that partially through the year in your assumptions in 2027 or at the beginning of the year?

Brian Macarthur: Hi, good morning, and thank you for taking my questions most of them answered, but can I go back to the Delta between 28, and 29 I get at Guadalupe.

Brian Macarthur: It's down and I guess youre, saying its the full 25000 ounces, but can I confirm that on the anti pie you talk about cutting back in 2028 is that at the beginning of the year or is that partially through the year I'm still trying to make up the difference between.

Brian Macarthur: 28 and 29.

Brian Macarthur: Yes, so Brian you have it's partway through 2008, so youll have a full year dropped in 2009.

Brian Macarthur: So you do lose ounces from <unk> in 2029, so between Guadalupe and <unk> you lose some ounces and then on the other side you've got.

Brian Macarthur: Copper World, you've got top attack.

Brian Macarthur: That will pick up some of that difference.

Brian Macarthur: Great. Thanks, and just on candle area, while I'm at it the step down from 68% to 40 again is that partially through the year in your assumptions on 2027 or at the beginning of the year.

Brian Macarthur: Partial Great, thanks very much. Thank you.

Brian Macarthur: A partial year.

Brian Macarthur: Great. Thanks very much.

Brian Macarthur: Okay.

Speaker Change: Thank you. The next question comes from Tanya Yeah Kusanagi SKU.

Tanya Jakusconek: The next question comes from Tanya Jakusconek at Scotiabank. Please go ahead. Oh, great. Good morning, everyone. Thank you so much for taking my three questions. I just wanted to follow again on this guidance and a lot of it's been answered.

Brian Macarthur: Please go ahead.

Tanya Kusanagi: Oh, great. Good morning, everyone. Thank you so much for taking my three questions.

Brian Macarthur: I just wanted to follow again on this guidance and a lot of it.

Tanya Kusanagi: I'm sorry.

Tanya Jakusconek: But maybe what I just would like to clarify with you is that the Pomarejo last year is twenty twenty nine. Ma. Gone. Is there anything else that of, you know, in the timeframe, I'm not contributing. 401... is dying out over the time frame there. be aware of. From a materiality standpoint, Tanya, those are the two largest. Okay, perfect.

Tanya Kusanagi: Maybe what I just would like to.

Tanya Kusanagi: Clarify with you is that your primary Hello last year of 2029 minor.

Tanya Kusanagi: Finally simulation is gone is there anything else that is.

Tanya Kusanagi: It does.

Tanya Kusanagi: In this timeframe.

Tanya Kusanagi: Contributing.

Tanya Kusanagi: Or is it is dying out over this timeframe that we should be aware of.

Tanya Kusanagi: From a materiality standpoint, Tanya at those are the two largest.

Tanya Kusanagi: Okay perfect.

Tanya Jakusconek: And then you mentioned, I wanted to understand, what is your assumption for still water? Because as you are aware, we have a quite a drop in 2025. and then yeah so yeah go ahead. Alright, so spillwater as the operator has guided 265,000 pgm ounces for 2025. We've assumed that for three years, and then it ramps back up. and back to that 500 or 600,000 GEO. Bye, bye. Thank you.

Tanya Kusanagi: Then you mentioned.

Tanya Kusanagi: Wanted to understand what is your assumption for Stillwater.

Speaker Change: You are aware, we have quite a drop in 2025.

Tanya Kusanagi: And then so.

Speaker Change: Yeah go ahead.

Speaker Change: Alright, so stillwater.

Speaker Change: The operator has guided.

Speaker Change: 265000, PGM ounces for 2025.

We've assumed that for three years and then it ramps back up.

Speaker Change: Subsequent to that.

Speaker Change: And back to that 500 or 600000 range.

Speaker Change: By 500.

Speaker Change: Okay.

Speaker Change: Thank you and then just continuing on the guidance you mentioned the energy Division.

Tanya Jakusconek: And then just continuing on the guidance, you mentioned the energy division is increasing over this time frame. You used to provide guidance on what the energy contribution. So if I think of, you know, your, you know, your 2029 or 2028 guidance, you know, we were able to see what percentage, you know, 79, 80% gold or, you know, even, you know, 76% gold, what would you put the energy as a percentage within your 25, 28, and 29 guidance? So I think for 25, 25 we did disclose what the percentage would be energy for 29, you know, off the top of my head, I'd say around 16, 17% of geo.

Speaker Change: Is increasing over this timeframe.

Speaker Change: You used to provide guidance on what the energy contribution.

Yes.

Speaker Change: 2029 of 2028 guidance.

Speaker Change: We were able to see what percentage of <unk>, 79% to 80% gold or.

Speaker Change: Leaving.

Speaker Change: 76% goals, what would you see.

Speaker Change: The energy as a percentage within your 'twenty, five 2020 nine guidance.

Speaker Change: So I think for 'twenty five 'twenty five we did disclose what the percentage would be energy.

Speaker Change: For 2009.

Speaker Change: Off the top of my head I'd say around 16% 17% of Geos.

Speaker Change: Okay.

Tanya Jakusconek: All right, that's helpful. Thank you.

Speaker Change: Great. That's helpful. Thank you and then just a final one on guidance.

Tanya Jakusconek: And then final one on guidance is you mentioned that Sandy said it's going to I'm, you know, set stronger second half. And so we understand Black Savannah deal. I'm here. I'm here to say if you get open on the front desk, try to address the public hours which But otherwise this is a new initiative to try to infuse these conversations into everyday your, you know, your, your price forecast and assuming them to be flat without Commodities. But if I think of it that way, is it a $45.55? Just, you know, numbers I've looked at and our budgeted assumptions, I'd say it's $47.50.

Speaker Change: Should that Sandy said, it's going to be.

Speaker Change: Stronger second half.

Speaker Change: And so we understand.

Speaker Change: So that Neil obviously that cycle from mine ramp up occurring.

Speaker Change: Should I be thinking first half second half is that a very big differences in a 45 55 and again this is Tim.

Speaker Change: Price forecast, assuming them to be flat without movement in commodities.

Speaker Change: I think of it that way is at a 45 55.

Speaker Change: Jess numbers I've looked at and our budgeted assumptions I'd say, it's a $47 53.

Speaker Change: Okay and is it quarter over quarter improvement should I can think of it that way as well.

Tanya Jakusconek: And is it quarter over quarter improvement? Should I be thinking of it that way as well? Second quarter will be better than Q1 just because of the timing of the Sauvignon, but I looked at Q3 and Q4, not too far off. All right, so those are my guidance questions.

Speaker Change: Second quarter will be better than Q1, just because of the timing of the survey.

Speaker Change: But I look to Q3, and Q4 not too far off of our future.

Speaker Change: Okay Alright.

Mike: Alright, well ill go Mike My guidance.

Speaker Change: Question.

Tanya Jakusconek: My second one has to do with Cobre Panama. Just wanted to confirm again, is there any further discussions on the concentrate on site and whether that may be dealt with ahead of, you know, these decisions and or other in 2026? Maybe Paul, is there anything on the concentrate and remind me the size of this concentrate? Tanya, there are discussions. The company has been keen to be able to move initially what were the remaining explosives off-site. Second is to move that concentrate off-site. They do have an agreement. They have been able to move the explosives. So discussions continue on the concentrate.

Speaker Change: My second one has to do with them.

Speaker Change: Cobra, Panama just wanted to confirm again is there any.

Speaker Change: Further discussions on the concentrate on site and whether that may be dealt with ahead of you.

Speaker Change: Decisions and our other <unk>.

Speaker Change: <unk> thousand 26, and maybe power is there anything on the concentrate and remind me the size of this concentrate.

Speaker Change: There are discussions.

Speaker Change: The company has been keen to be able to move.

Speaker Change: Initially what were the remaining explosive.

Speaker Change: Second is to move that concentrate off site. They do have an agreement they have been able to move the explosives. So.

Speaker Change: Discussions continue on the concentrate it is one of the first things so I'd like to get moving.

Paul Brink: It is one of the first things I'd like to get moving. as the government gets more willing to discuss progress on the mine. In terms of value of the concentrate, I think the value is in the order of $250 million. It's the total value.

Speaker Change: As the government gets more willing to discuss progress on the mind.

Speaker Change: In terms of value of our concentrate.

Speaker Change: Thanks to the values in the order of $250 million.

Speaker Change: So as the total value for concentrate.

Okay, Alright would be good if we could.

Paul Brink: Well, that would be good if we could at least deal with the concentrate and then just remind me again on your security on on the asset, you have security at the asset level. do not have a parent guarantee, right? Just so that I remember this correctly. So our security, MPSA is the operating entity in Panama. So we are secured on the pairs of MPSA, that operating entity as When we look at all these deals, as any good bank will tell you, where you want to be is as close to the asset as possible. So very happy with the security structure that we have.

Speaker Change: With a concentrate and then just remind me again on <unk>.

Speaker Change: Your security.

Speaker Change: On the asset you have security at the asset level.

Speaker Change: But you do not have a parent guarantee right.

Speaker Change: I remember that correctly.

Speaker Change: The sort of security and PSA as the operating entity in Panama.

Speaker Change: So we are secured on cash.

Speaker Change: That that operating entity.

Speaker Change: When we look at all these deals.

Speaker Change: As any good bank will tell you, where you want to be as close to the asset as possible.

Speaker Change: So very happy with the security structure that we have an opening.

Speaker Change: Okay.

Paul Brink: So the security of the asset, but you don't have a corporate down. We have undertakings up the chain that the various entities would ensure that the undertakings of MPSA are... are fulfilled, which is, those are the usual sort of provisions that you would get. And maybe one thing to add, Tanya, in order to have, you know, the arbitration directly with Panama, it's very important. is your link directly to the app. So in a lot of cases, you know, if you're just a corporate obligation, you wouldn't be able to avail yourself of that. That's one of the benefits.

The asset, but you don't have a corporate guarantee right.

Speaker Change: Okay.

Speaker Change: We have undertakings up the chain.

Speaker Change: S entities would ensure that the undertakings of NPSA are.

Speaker Change: Are fulfilled.

Speaker Change: Which is also the usual solar provisions that you would get from them.

Speaker Change: And maybe one thing to add tenure in order to have arbitration directly with Panama is very important.

Speaker Change: We are linked directly to the asset so and a lot of cases.

Speaker Change: As to corporate obligation you wouldn't be.

Speaker Change: And be able to avail yourself of that.

Speaker Change: Type of protection.

Speaker Change: Okay, just one of the benefits that structure.

Paul Brink: As I said, hopefully we don't get there, hopefully all of this is resolved. That's for everybody here.

Speaker Change: Hopefully, we don't get there hopefully all of that is resolved okay.

Speaker Change: Everybody here.

Tanya Jakusconek: Um, okay, so maybe my last question, and I'll just continue on the M&A side on the transaction side, done a lot of deals on the gold front, you know, potash was a smaller one.

John: Okay. So maybe my last question and then I'll just continue on the M&A side on the transaction side, John a lot of deals on the schools France.

Speaker Change: France, where potash was a smaller one.

Tanya Jakusconek: So where do we stand now? , Tanya Jakusconek, David Harquail, Cosmos Chiu, Lloyd Hong, Martin Pradier, David Hong, , William G. , William G.

Speaker Change: So where do we stand now on the commodity mix of your deals that you are currently looking at in the market.

Speaker Change: Maybe we can just reduce size wise is it still that $300 million to $500 million is that still the deal sizes are you focused now more on precious metals or have you done enough precious metals Atlanta.

Tanya Jakusconek: Where are we on that?

Speaker Change: Where are we on that.

Speaker Change: It's ASC and again.

Ian: Tanya, it's Ian again. So in terms of metals, I think Paul alluded earlier to the fact that we're still very much focused on precious metals, the vast majority of what we're looking at. It doesn't mean that there aren't good opportunities outside of that, but in terms of just deal flow. That's primarily what we're seeing. at the moment, I think it's a good time. And in terms of the complexion of the deals, what I would really say is what you saw last year is a good reflection of kind of what we're seeing now. Last year obviously was also unprecedented in terms of total dollars that we deployed.

Speaker Change: So in terms of metals I think Paul alluded earlier to the fact that we're still very much focused on precious metals. The vast majority of what we're looking at right now is as precious metals. It doesn't mean that there arent good opportunities outside of that but in terms of just.

Speaker Change: Deal flow.

Speaker Change: That's primarily what we're seeing.

Speaker Change: At the moment I think it's a good time.

Speaker Change: And in terms of the complexion of the deals what I would really say is what you saw for the last year is a good reflection of what we're seeing now.

Speaker Change: Last year, obviously was also unprecedented in terms of total dollars that we deployed very happy about just how active we are.

Ian: Very happy about just how active we were. and the investments that we made, but in terms of what they look like, very similar in terms of whether it's size or, you know, reason for it. And would it also still be for development of assets? Is it still that? So financing options for smaller companies, is that still the case? Absolutely, I think a core pillar of our business development efforts is project finance. strong team to do that. It's a great conversation.

Speaker Change: And the investments that we made.

Speaker Change: But in terms of what they look like very similar.

Speaker Change: So whether its sai.

Speaker Change: The reason for doing the deal.

Speaker Change: Okay and would it also be for asset.

Speaker Change: For development.

Speaker Change: Nebraska does it fill backfill financing options for smaller companies is that still the case.

Speaker Change: Absolutely I think a core pillar of our business development efforts is project finance.

Speaker Change: Got a strong team to do that.

Speaker Change: All placed with our balance sheet. So we continue to focus very much on trying to.

Tanya Jakusconek: Thank you very much. Thank you.

Speaker Change: Significantly perfect financing deals.

Tanya Jakusconek: University of New York. Thank you. Okay, and then I wanted to ask just on the non-gold side. is that there could be opportunities come up. Are there opportunities in the non-gold side of your business? And if so, what sort of size of those? Certainly, there are opportunities that expand, you know, a range in terms of size, but probably similar to what we've been looking at on the precious metals side, Tanya, you know, some are smaller. Medium Size. Okay, so that's 300 to 500 million.

Speaker Change: Okay, and then I wanted to ask you is on the non gold side.

Speaker Change: You said there could be opportunities come up are there opportunities in non core site.

Speaker Change: Your business and if so what sort of size of those.

Speaker Change: Potential transaction.

Speaker Change: Certainly there are opportunities.

Dan.

Speaker Change: Our range in terms of size, that's probably similar to.

Speaker Change: What we've been looking at on the precious metals side tenure some are smaller some are more.

Speaker Change: Medium size.

Speaker Change: Okay, so that $300 million to $500 million.

Speaker Change: Okay.

Tanya Jakusconek: Okay, and would we still continue to keep focusing on the sort of non-gold commodities that you have historically looked at, or is energy back in the game? Would you consider energy in that? I know you have to put a pause button on. So Tanya, we're, you know, as usual, the diversified strategies is all around being opportunistic, you know, rather than starting with a particular commodity. So energy is the, if the right opportunities there, we would also add, we've got a better room currently. but nothing currently. Okay, thank you so much for taking my questions. I'll let someone else.

Speaker Change: Okay and.

Would we still continue to keep focusing on the SAR does.

Speaker Change: Non gold.

Speaker Change: <unk> is that you have historically looked at or is energy back in the game as I guess, what im asking.

Speaker Change: Would you consider an ODM that non gold component.

Speaker Change: I know you had to put a pause button on it for a while.

Speaker Change: So Tanya ware.

Speaker Change: As usual with a diversified strategy is all around being opportunistic.

Speaker Change: Robin starting with a particular commodity.

Speaker Change: So energy is the if the right opportunities that we would also add.

Speaker Change: Bob.

Speaker Change: Great.

Speaker Change: But nothing currently active.

Speaker Change: Okay.

Speaker Change: Okay. Thank you so much for taking my questions I will now I really appreciate it. Thank you.

Tanya Jakusconek: I really appreciate it. Thank you.

Speaker Change: Okay.

Speaker Change: Thank you. The next question comes from Martin <unk> at vertex. Please go ahead.

Martin Pradier: The next question comes from Martin Pradier at Veritas. Please go ahead. Yes, thank you for taking my question. Can you give us some precision on on what do you expect from Toccatin-Signo and Ballentine goal for 2025? Sure. So for 2025, Valentine will be ramping up in the second half of the year. So it's it's minimal. It's you know, 1500 to 2000 geos. Token Zinio fully ramped up just over 20%. And I've seen a lot about the CRA and you continue having that, that it's a recurring issue. Do you expect some kind of decision in this year, this coming year?

Martin: Yes. Thank you for taking my question.

Speaker Change: Could you give us some precision on what do you expect from took it took it does see Neal Burlington goal for 2025.

Speaker Change: Sure.

Speaker Change: <unk> for 2025.

Speaker Change: Ballantyne will be ramping up in the second half of the year. So it's minimal.

Speaker Change: 500 to 2000.

Speaker Change: Token Danielle fully ramped up by just over 20000 Geos.

Speaker Change: Okay. Thank you.

Speaker Change: We've seen a lot about the CRA and you continue having that there is a recurring issue.

Speaker Change: Well.

Speaker Change: Do you expect some kind of decision in the in this year that this coming year.

Martin Pradier: Um, obviously, you know, we're a large cap taxpayer in the view of CRA. So we are constantly audited, no different than other large cap taxpayers. Obviously, we had three audit issues outstanding, two got resolved, where they dropped the reassessments, we've got the transfer pricing dispute that's ongoing. We continue to work with CRA. You know, would I like to resolve it this year? Absolutely. But with CRA, it's just a question of timing and what their views are. So we continue to move forward. But no resolution. Okay, but the 2013-16 or something like that, isn't that part supposed to...

Speaker Change: Obviously, we're a large cap taxpayer and the view of CRA. So we are constantly audited no different than other large cap taxpayers.

Speaker Change: We had three audit issues outstanding two got resolved, where they dropped the reassessment, we got the transfer pricing.

Speaker Change: Dispute that's ongoing we continue to work with CRA.

Speaker Change: What I'd like to resolve it this year absolutely but.

Speaker Change: With CRA, it's just a question of timing and what their views are so we continue to move forward, but no resolution at this time.

Speaker Change: Okay, but the 2013 16 or something like that.

Speaker Change: Isn't that parts of both too.

Martin Pradier: I am supposed to reach a decision this year? Yeah, so you have to, you know, They reassessed us, we appealed. And then you have to go through a process and work your way towards a potential court date. We're working through that process. You have you have to go through discovery. We've done that. Now it's just a case of, you know, can you, you know, resolve it yourselves? Or do you end up in court? So no, no decision at this Okay, great. Thank you very much. Thank you.

Speaker Change: It's supposed to them too.

Speaker Change: Each of decision this year.

Speaker Change: Yes, so you have to.

Speaker Change: They reassess desk, we appealed and then you have to go through a process and work your way towards a potential court date, we're working through that process. You have you have to go through discovery and we've done that now it's just a case of can.

Speaker Change: Can you.

Speaker Change: All of it yourselves or would you end up in court so.

Speaker Change: No no decision at this time.

Speaker Change: Okay, great. Thank you very much.

Speaker Change: Thank you. The next question comes from John Tumazos at John Tumazos, very independent research. Please go ahead.

John Tumazos: The next question comes from John Tumazos at John Tumazos Very Independent Research. Please go ahead. Congratulations on putting a billion dollars to work. And for the $55 million in Discovery Sock to basically double in a month, well done. If you wanted to go to the beach or fish or... play golf for the rest of the year, you've done a good job for the shareholders. You earned it. And in all seriousness, thank you.

Speaker Change: Congratulations on putting $1 billion to work.

Speaker Change: And for the $55 million of discovery today.

Speaker Change: Basically double on a month well done.

Speaker Change: If you wanted to go to the future Fisher.

Speaker Change: Play golf for the rest of the year, you've done a good job for the shareholders.

Speaker Change: Sure.

Speaker Change: In all seriousness.

Speaker Change: Yes.

John Tumazos: In all seriousness, could you tell us... Your criteria in terms of minimum rate of return, gold price, or other. So, in evaluating future deals to not... Reduce the average quality of the portfolio given some of the great deals you have in hand. and all your criteria. primarily numerical. quantitative or as Qualitative Geologic Inference . . more important to you. Learner, NNPV. John, I think you've answered the question there. At the end of the day, you've got to be invested in good old bodies and our overall objective is to make sure that we do that and anything that we added to the portfolio is a great quality old body.

Speaker Change: In all seriousness.

Speaker Change: Tell us.

Speaker Change: Your criteria in terms of minimum rate of return gold price or other.

Speaker Change: So.

Speaker Change: Evaluating future deals to not.

Speaker Change: Reduce the average quality of the portfolio given some of the great deals you have in hand.

Speaker Change: And are your criteria.

Speaker Change: Primarily numerical.

Speaker Change: Quantitative.

Speaker Change: Or is qualitative geologic inference more important to you.

Speaker Change: And then peasy.

Speaker Change: John I think you've answered the question there.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Uh huh.

Speaker Change: At the end of the day, you got to be invested in good ore bodies.

Our overall objective is to make sure that we do that and anything that we add it added to the portfolio as a great quality ore body.

Paul Brink: Um, you know, we Anytime we look at a deal and our board constantly reminds us of this, whatever you put in your spreadsheet, it's not going to happen. The ore bodies will develop and grow over time, commodity prices will change over time. So the focus is on the quality of the ore bodies, getting the right ones in the portfolio. You know how we think about it, which is We're prepared to accept the low rate of return for what you can see today on those old bodies. But if you pick the ones that have got the best odds of getting bigger over time, that's really where we make our return.

Speaker Change: We.

Speaker Change: Anytime we look at a deal and our board constantly reminds US office whatever you put in your spreadsheet is not going to happen.

Speaker Change: Yes.

Speaker Change: Oh bodies will develop and grow over time commodity prices will change over time.

Speaker Change: So the focus is on the quality of your body is getting the right ones in the portfolio.

Speaker Change: You know, how we think about it which is.

Speaker Change: We are prepared to accept the low rate of return for what you can see today on those ore bodies.

Speaker Change: But if you pick the ones that have got the best thoughts of getting bigger over time, that's really where we make our return the focus is.

Paul Brink: The focus is You know, what are your bodies with great economics that we can be very comfortable? We're going to get our money back and then what are we exposing ourselves to? What's the potential optionality? You know, what's the multiple of our money that we can make if our hopes and dreams come true for the expansion?

Speaker Change: What are your robotics with great economics that we can be very comfortable we're going to get our money back.

Speaker Change: Then what are we exposing ourselves to whats the potential optionality whats the multiple of our money that we can make their hopes.

Speaker Change: Hopes and dreams come true for the expansion of the ore bodies.

John Tumazos: In terms, thank you, in terms of the new Discovery Silver investment, Is it limited to exactly the land holdings bought from Newmont at closing? and the existing Dumb Mill. And for example. If Tony were to buy back his old company, Lakeshore Gold, from Pan Am? Should we assume that's excluded from your royalties?

Speaker Change: In term. Thank you in terms of the new discovery silver and.

Speaker Change: Investment.

Speaker Change: Is it limited to exactly the land holding spot from Newmont at closing.

Speaker Change: And the existing mill and for example.

Speaker Change: Yes, Tony were to buyback as old company Lake Shore Gold from 10 a M.

Speaker Change: Should we assume that's excluded from your royalty.

Ian: John, it's Ian here. Thank you for the kind words up front. On the discovery deal, I guess, first of all, what matters to us is relationships . So we are very much trying to support Tony in his efforts. As he's alluded to, to the market, he has very ambitious plans for that campaign. and we want to be there to support him. We agreed some partnership clauses in the agreement to provide us certain certain rights. I would say more as a kind of commercial relationship, we are very keen to help them. As he looks at the one you, you know, there are many other opportunities, not just one in the area.

Speaker Change: John.

Ian: Ian here. Thank you for the kind words upfront on the discovery deal.

Speaker Change: I guess first of all what matters to us is relationships.

Speaker Change: So we are very much trying to support Tony and his efforts.

Speaker Change: As you alluded to to the market.

Speaker Change: He has very ambitious plans for that camp.

Speaker Change: And we want to be there to support him on those we agreed.

Speaker Change: Some partnership clauses in the agreement to provide us certain certain rights.

Speaker Change: In certain circumstances, but we are I would say more as a kind of a commercial loan relationship kind of very key to help them as.

Speaker Change: As he looks at the one year.

Speaker Change: There are many other opportunities not just one in the area. So we are keen to help them evaluate.

Ian: So we're keen to help them evaluate. how you may be able to maximize value for Discovery shareholders of which of course we are one. That's an exciting opportunity for us.

Speaker Change: We may be able to maximize.

Speaker Change: Sal you for discovery shareholders of which of course, we are one.

Speaker Change: So.

Speaker Change: It's an exciting for us.

Speaker Change: Thank you.

Candida Hayden: Thank you. We have no further questions on the phone.

Speaker Change: Thank you we have no further questions on the phone I will turn the call back over to Ken Peter Haden.

Candida Hayden: I will turn the call back over to Candida Hayden. Thank you.

Berny Picchi: Thank you. Our first question comes from Berny Picchi Palisade capital management. Additionally, Franco Nevada has avoided investments in certain places Russia. China. For example, the rule of law is critical I was surprised by your investment in <unk> Stillwater Africa has generally not been an area of interest for free.

Bernie Peachy: Our first question comes from Bernie Peachy at Palisade Capital Management. Traditionally, Franco Nevada has avoided investments in certain places, Russia, China, for example. Rule of law is critical. I was surprised by your investment in Sabani Stillwater. Africa has generally not been an area of interest for Franco Nevada. Can you explain this decision further? Thanks for the question there. Our objective is be a low-risk way that investors can invest in the industry, gold, and the benefit of exploration upside. The approach geopolitically is you've got to make sure that most of your assets are in great countries, and we're blessed.

Speaker Change: In Nevada can you.

Berny Picchi: Explain this decision further.

Berny Picchi: Thanks for the question there.

Berny Picchi: Our objective is very low risk way of investors can <unk>.

Berny Picchi: And best in the industry gold and the benefit of exploration upside.

Berny Picchi: <unk> approach Geo politically is you've got to make sure that most of your assets are in great countries and we're blessed.

Paul Brink: So many assets, Canada, US, Australia, a lot of other good mining countries in the world. And so we're also exposed in Chile, Peru, Brazil. We do have assets in West Africa. And we have had assets in South Africa. In particular, for many years, we've had an interest in mine waste. It wasn't planned this way. But actually, the mine waste deal has ended, it was about 20 plus 1000 ounces a year in geos, and we're able to do the Spanier deal, similar amount over the long term. So our exposure to South Africa And so we're able to do the Spanier deal.

Berny Picchi: So many assets, Canada U S Australia.

Berny Picchi: It's got a lot of other.

Good mining countries in the World and so we're also exposed in Chile, Peru and Brazil.

Berny Picchi: <unk>.

Berny Picchi: We do have assets in West Africa, and we have had assets in South Africa in particular for many years and interest and mine waste. It wasn't planned this way, but actually.

Speaker Change: The mine waste steel Hassan data pushed about 20, plus thousand ounces a year in geos.

Speaker Change: We're able to do this by near deal similar amount over the long term so our exposure to South Africa.

Paul Brink: is about the same as it was previously. South Africa is different from much of Africa. It is a very well-developed mining economy. It's got a long history. It's got a good labor force, good suppliers. And it does have a good rule of law as opposed to foremining. So in terms of the amount of exposure that we've got, roughly the 500 million are comfortable in putting that in South Africa. It does have its risks and its political risks. I actually think it's on the uptick in recent years. You had the change in government, the ANC is still leading it, but for the first time it's a government of national unity and I think that's put some checks and balance on the ANC and there's a good level of optimism in country.

Speaker Change: About the same as it was previously.

Speaker Change: South Africa is different from much of Africa.

Speaker Change: It is a very.

Speaker Change: Very well developed mining economy.

Speaker Change: It's got a long history, it's got.

Speaker Change: Good Labor force good suppliers.

And it does have a goodwill law supposedly for mining so in terms of amount of exposure that we've got.

The $500 million are comfortable in putting that in South Africa.

Speaker Change: It does have its risks.

Speaker Change: Political risks I actually think it's on the uptick.

In recent years.

Speaker Change: You had the change in government.

Speaker Change: <unk> is the leading it but for the first time its governance of National Unity and.

Speaker Change: I think thats put some checks and balance on the ANC in there is there is a good level of optimism in country.

Speaker Change: But it is there is it.

Paul Brink: There's a change in direction in terms of the quality of government management. I think you've seen very practical results in terms of a turnaround in the power situation and also real good results on the ground. in terms of improving the transportation infrastructure. So quite happy with that investment in South Africa. I think it's gonna do us well.

Speaker Change: Change in direction in terms of the quality of government management.

Speaker Change: Thank you you've seen very practical results in terms of a turnaround in the past situation.

Speaker Change: So.

Speaker Change: Well good results on the ground.

Speaker Change: In terms of improving the transportation infrastructure.

Speaker Change: Quite happy with that.

Speaker Change: I think it's going to do us well over time.

Bernie Peachy: Our next question is also from Bernie Pichie at Palisade Capital Management. When you say there's 250 million of concentrates on-site at Cobre Panama that you and First Quantum would like to move, how much of that is yours versus First Quantum? We haven't done the math recently. Depends on what the gold price is at the time, obviously, but that roughly the value there that we are due to receive is $15,000. Thank you, Paul. There are no further questions from the webcast.

Speaker Change: Our next question is also from burning PCI Palisade capital management. When you say there is $250 million of concentrate.

Speaker Change: On site at Cobre, Panama.

Speaker Change: And first content.

Speaker Change: Like to move on much of that is yours versus brinci contents.

Speaker Change: I haven't done the math recently.

Speaker Change: And what the gold prices at the time, obviously, but.

Speaker Change: Is that roughly the value there.

Speaker Change: We are due to receive is $15 million to $20 million.

Speaker Change: Thank you Paul.

Speaker Change: Further questions from the webcast. This concludes our 2024 year end results conference call and webcast.

Candida Hayden: This concludes our 2024 Year-End Results Conference Call and Webinar. We will host our Investor Day on Tuesday, March 25, 2025. The in-person presentation will be hosted at the Lumi Experience Center in Toronto at 1pm Eastern. The presentation will also be available to view virtually. Registration details are available on our website. We expect to release our first quarter 2025 results after market close on May 8th, with the conference call held the following morning. Thank you for your interest in Franco Nevada. Goodbye. Thank you.

Speaker Change: We will host our Investor day on Tuesday March 25, 2025.

Speaker Change: In person presentation will be hosted at Lumi experience center in Toronto at one PM Eastern time.

Speaker Change: The presentation will also be available to be virtually registration details are available on our website. We expect to release, our first quarter 2025 results after market close on May eight.

Speaker Change: Prince call held the following morning. Thank you for your interest in Franco Nevada.

Speaker Change: Goodbye.

Speaker Change: Thank you ladies and gentlemen, this concludes your conference call for today.

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

Speaker Change: Thank you for participating and we ask that you. Please disconnect your lines.