Q3 2025 Franco-Nevada Corp Earnings Call

Speaker #3: Good morning , and welcome to FRANCO NEVADA Corp . Third quarter 2020 results conference call . This call is being recorded on November 4th , 2025 .

Speaker #3: At this time, all lines are in less than only mode. Following the presentation, we will conduct a Q&A session where you may ask a question through the phone line.

Speaker #3: If you require immediate assistance during this call , please press star Zero at any time for the operator . I'd now like to turn the conference over to your host .

Speaker #3: Candida Hayden senior Analyst , Investor Relations . Thank you . Please go ahead .

Speaker #4: Thank you . Ina . Good morning everyone . Thank you for joining us today to discuss FRANCO NEVADA Corp third quarter 2025 results .

Candida Hayden: Thank you, Ina. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's Q3 2025 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. During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks, followed by Sandeep Brar, 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. We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on slide 2 of this presentation. I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

Speaker #4: Accompanying this call is a presentation which is available on our website at FRANCO NEVADA Corp , where you will also find our full financial results .

Speaker #4: 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 .

Speaker #4: be followed by a Q&A period . Our full executive team is available to answer any questions . 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 .

Speaker #4: I will now turn over the call to Paul Brink president and CEO of Franco-nevada .

Paul Brink: Thank you, Candida. Good day to all. For the third time this year, we're announcing record quarterly results. The new benchmarks set this quarter were driven by high gold prices, strong operations, new acquisitions, and the sale of Cobre Panama stockpiles. Over the last 18 months, we've made six acquisitions of meaningful new gold interests. Yanacocha, Cascabel, Sibanye Western Limb, Porcupine, Cote, and Arthur, all large ore bodies that will contribute to our growth for many decades. Of the six, Porcupine, Yanacocha, and Western Limb are also producing. They'll impact our 5-year growth and have boosted our gold price exposure. 85% of our revenue was from precious metals in the quarter. The last of the acquisitions in July this year was a royalty on the Arthur Gold project in Nevada, operated by AngloGold.

Speaker #5: Thank you . And good day to all . For the third time this year , we're announcing record quarterly results . The new benchmark set this quarter were driven by higher gold prices , strong operations , new acquisitions and the sale of Cobre Panama stockpiles .

Speaker #5: Over the last 18 months , we've made six acquisitions of meaningful new gold interests Yanacocha , Cascabel , Sabanas West and Lim , porcupine , Cote and Arthur .

Speaker #5: All large orebodies that will contribute to our growth for many decades . Of the six porcupine , Yanacocha and Western limb are also producing .

Speaker #5: They'll impact our five year growth and have boosted our gold price exposure . 85% of our revenue was from precious metals in the quarter .

Speaker #5: The last of the acquisitions in July this year was a royalty on the Arthur Gold Project in Nevada , operated by AngloGold . We did draw on our corporate revolver to fund the acquisition , but with our strong cash flow generation and the proceeds from equity sales , the company was once again debt free by quarter end .

Paul Brink: We did draw on our corporate revolver to fund the acquisition, with our strong cash flow generation and the proceeds from equity sales, the company was once again debt-free by quarter end. During the quarter, we saw progress on the ground at Cobre Panama, completion of the concentrate shipments, pre-commissioning of the power plant for restart with the aim to provide power to the Panamanian grid, and formal notice to SGS to commence the environmental audit work. Perhaps just as important, we're encouraged by the recent constructive comments by the President of Panama towards resolution of the Cobre mine closure. If Cobre does come back online and with the contributions from our recent acquisitions, we're positioned for roughly 50% growth in GEOs over five years compared to last year. With the long-term assets we've added, we can maintain that level of production for many years thereafter.

Speaker #5: During the quarter , we saw progress on the ground at Cobre Panama . Completion of the concentrate shipments pre-commissioning of the power plant for restart with the aim to provide power to the Panamanian grid and formal notice to SGS to commence their environmental audit work .

Speaker #5: Perhaps just as important , we're encouraged by the recent constructive comments by the president of Panama towards resolution of the mine closure . If Cobre does come back online and with the contributions from our recent acquisitions , we're positioned for roughly 50% growth in GEOs over five years , compared to last year .

Speaker #5: The long term assets we've added , we can then maintain that level of production for many years thereafter . A deal pipeline remains very active , although with this run up in gold prices , we're also expecting good organic growth with roughly half our revenue coming from principal gold assets .

Paul Brink: Our deal pipeline remains very active, although with this run-up in gold prices, we're also expecting good organic growth. With roughly half our revenue coming from principal gold assets, we expect this to be a powerful driver. Operators have strong cash flow for mine expansions, some ongoing, like Detour, and others now planned at Cote, Magino, and Valentine. Developers have been able to raise capital for new builds. In particular, Skeena and Perpetua were both successful tapping the equity markets to ensure that they can advance Eskay Creek and Stibnite Gold, and the drills are turning on our large portfolio of exploration-stage royalties. The recognition of the importance of critical minerals has also unlocked a number of permitting processes, giving the green light to construction to Copper World and Stibnite Gold. Castle Mountain is also now included in the US FAST-41 permitting process.

Speaker #5: We expect this to be a powerful driver . Operators have strong cash flow from mining expansions , some ongoing like detour and others .

Speaker #5: Now planned at Cote and Valentine . Developers have been able to raise capital for new builds , in particular Skeena and Perpetua were both successful , tapping the equity markets to ensure they can advance .

Speaker #5: SK Creek and Stibnite Gold and the drills are on a large portfolio of exploration stage royalties . Recognition of the importance of critical minerals has also unlocked a turning permitting processes , giving the green light to construction to Copper World and Stibnite gold .

Speaker #5: number of The first was GM and ventures with Toca Zinho , and the second the discovery team with porcupine . Both are best in class and are proving to be highly successful .

Speaker #5: Castle Mountain is also now included in the U.S. FAST-41 permitting process. On that same note, I've been impressed to see the profile that the Ring of Fire is getting in the Ontario government's Critical Mineral Strategy.

Paul Brink: On that same note, I've been impressed to see the profile that the Ring of Fire is getting in the Ontario government's critical mineral strategy. In the last few years, we've added new avenue to grow our company. That is finding good teams and good projects and not just providing royalty or stream financing, but being their financial backer. The first was G Mining Ventures with Tocantinzinho, and the second, the Discovery team with Porcupine. Both are best in class and are proving to be highly successful. We are delighted to have played a role in their success. We're looking forward to supporting them going forward and to find other strong teams to back. With that, I'll hand the call over to Sandip to discuss the quarter.

Speaker #5: In the last few years, we've added new avenues to grow our company that involve finding good teams and good projects, and not just providing royalty or stream financing, but being their financial backer.

Speaker #5: We are delighted to have played a role in their success . We're looking forward to supporting them , going forward and to find other strong teams to back .

Speaker #5: With that , I'll hand the call over to Sandip to discuss the quarter .

Speaker #6: Thanks , Paul . Good day everyone . As Paul mentioned , Franco-nevada reported record financial results for third quarter ended September 30th , 2025 .

Sandip Rana: Thanks, Paul. Good day, everyone. As Paul mentioned, Franco-Nevada reported record financial results for Q3 ending 30 September 2025. Our diverse portfolio of royalty and stream assets performed ahead of recent expectations, and we continue to benefit from higher precious metal prices. Precious metal prices, with gold in particular, continue to be strong. On slide 4, you will see the comparison of commodity prices for Q3 2025 and Q3 2024. Gold and silver prices increased significantly year over year, with the average gold price higher by 40% in the quarter and average silver price higher by 34%. We also saw a rebound in prices for platinum and palladium, while prices for iron ore remained flat year over year, lower for oil, but we saw a significant increase in natural gas prices year over year.

Speaker #6: Our diverse portfolio of royalty and stream assets performed ahead of recent expectations , and we continue to benefit from higher precious metal prices .

Speaker #6: Precious metal prices with gold in particular , continued to be strong . On slide four , you will see the comparison of commodity prices for Q3 2025 and Q3 2024 .

Speaker #6: Gold and silver prices increased significantly year over year , with the average gold price higher by 40% in the quarter and average silver price higher by 34% .

Speaker #6: We also saw a rebound in prices for platinum and palladium , while prices for iron ore remained flat year over year . Lower for oil .

Speaker #6: But we saw a significant increase in natural gas prices year over year . On slide five , we highlight some of the key financial metrics used to measure performance .

Sandip Rana: On slide five, we highlight some of the key financial metrics used to measure performance. Total GEOs sold, net GEOs sold, revenue, and Adjusted EBITDA. Total GEOs sold increased 26% to 138,772 in the quarter, compared to 110,110 in Q3 2024. Precious metal GEOs sold in the quarter were 119,109, higher by 41% compared to prior year. Just under 50% of total GEOs sold were sourced directly from mines where precious metals are the primary commodity. For the quarter, received strong contributions from a number of our key assets, Cobre Panama, Guadalupe, and Candelaria, and we also benefited from our recent acquisitions Western Limb, Yanacocha, Porcupine, and Coté. This quarter, we recorded our first full quarter of revenue for both Porcupine and Coté.

Speaker #6: Total GEOs sold . Net geo sold revenue and adjusted EBITDA . Total GEOs sold increased 26% to 138,772 . In the quarter , compared to 110,001 ten in third quarter 2020 .

Speaker #6: For precious metal GEOs sold in the quarter were 119,109, higher by 41% compared to the prior year. Also, just under 50% of total GEOs sold were sourced directly from mines where precious metals are the primary commodity.

Speaker #6: For the quarter received strong contributions from a number of our key assets . Cobre Panama , Guadalupe and Candelaria , and we also benefited from our recent acquisitions .

Speaker #6: Western Limb Yanacocha , Porcupine and Cote . This quarter , we recorded our first full quarter of revenue for both porcupine and Coté .

Speaker #6: Approximately 11,000 GEOs were delivered and sold from Cobra Panama . As you receive GEOs related to the concentrate that had been stored on site since November 2023 , in addition to better performance from Guadalupe and Candelaria and receiving GEOs from recent acquisitions , we also benefited from the continued ramp up of operations at new mines , tokens Greenstone and Solaris Norte .

Sandip Rana: Approximately 11,000 GEOs were delivered and sold from Cobre Panama as we received GEOs related to the concentrate that had been stored on site since November 2023. In addition to better performance from Guadalupe and Candelaria and receiving GEOs from recent acquisitions, we also benefited from the continued ramp-up of operations at new mines, Tocantinzinho, Greenstone, and Salares Norte. With respect to the Hemlo NPI, the NPI was not as strong this quarter compared to earlier quarters this year due to lower production on Franco's Interlake claims on the property. Barrick is in the process of selling Hemlo, and we look forward to seeing what improvements the new team has planned for the mine.

Speaker #6: With respect to the Hemlo MPI , the MPI was not as strong this quarter compared to earlier quarters this year due to lower production on Franco's Interlake claims on the property .

Speaker #6: Barrick is in the process of selling Hemlo , and we look forward to seeing what improvements the new team has planned for the mine .

Speaker #6: Diversified geo sold were 19,663 for the quarter , compared to 25,733 for prior year . Despite diversified revenue being higher year over year , 67.1 million versus 61.2 million .

Sandip Rana: Diversified GEOs sold were 19,663 for the quarter, compared to 25,733 for prior year, despite diversified revenue being higher year-over-year, $67.1 million versus $61.2 million. The GEO sold reduction is due to the impact of higher gold prices when converting revenue to GEOs. For Q3 2025, net GEOs were 125,115 for Franco, compared to 97,232 in Q3 2024. Net GEOs removes the cost of sales component for all GEOs so that GEOs sold are represented after cost. As you know, royalty GEOs are higher margin than stream GEOs. As you can see from the chart, total revenue increased by 77% for the quarter to $487.7 million, which is a record for Franco-Nevada.

Speaker #6: The Geo sold reduction is due to the impact of higher gold prices when converting revenue to GEOs for Q3 2025 , Nat Geo was 125,115 for Franco , compared to 97,232 in Q3 2020 .

Speaker #6: For Nat Geo's removes the cost of sales component for all Geo so that Geo sold are represented after costs . As you know , royalty GEOs are higher margin than stream GEOs .

Speaker #6: As you can see from the chart, total revenue increased by 77% for the quarter to $487.7 million, which is a record for Franco-Nevada. Precious metals accounted for 85% of revenue.

Sandip Rana: Precious metals accounted for 85% of revenue. Adjusted EBITDA, also a record, was 81% higher for the quarter at $427.3 million, compared to $236.2 million in Q3 2024. Slide 6 details the key financial metrics reported by the company. As mentioned, total GEOs sold were 138,772, generating $487.7 million in revenue in Q3. With respect to cost, we did have an increase in cost of sales compared to prior year due to higher stream ounces sold, particularly Cobre Panama. Cost of sales was $47.2 million versus $31.9 million last year. Depletion increased to $87 million versus $54.2 million.

Speaker #6: Adjusted EBITDA also record was 81% higher for the quarter at 427.3 million , compared to 236.2 million in third quarter 2020 . For slide six details , the key financial metrics reported by the company .

Speaker #6: As mentioned , total geo sold were 138,772 , generating 487.7 million in revenue in third quarter , with respect to cost , we did have an increase in cost of sales compared to prior year due to higher stream ounces sold , particularly Cobre Panama .

Speaker #6: Cost of sales was 47.2 million versus 31.9 million last year . Depletion increased to 87 million versus 54.2 million as we received more GEOs from Candelaria , Cobre Panama and began depleting our recent transactions .

Sandip Rana: As we received more GEOs from Candelaria, Cobre Panama, and began depleting our recent transactions, this impacted depletion as those assets are currently higher per ounce depletion assets. Adjusted net income was $275 million or $1.43 per share for the quarter, both up 79% versus prior year. One other transaction that did occur during the quarter was the sale of some equity investments. We sold a portion of our equity investment in Discovery Silver and received total proceeds of $84.4 million, with a gain of $67.4 million recorded on the sale. Under our accounting policies, these gains are recorded in other comprehensive income and not reflected in our earnings per share. However, the gain would have generated an additional earnings per share of $0.30. Slide 7 highlights the continued diversification of the portfolio.

Speaker #6: This impacted depletion as those assets are currently higher per ounce . Depletion assets . Adjusted net income was 275 million , or $1.43 per share , for the quarter .

Speaker #6: Both up 79% versus the prior year. One other transaction that did occur during the quarter was the sale of some equity investments. We sold a portion of our equity investment in Discovery Silver and received total proceeds of $84.4 million, with a gain of $67.4 million recorded on the sale.

Speaker #6: Under our accounting policies, these gains are recorded in other comprehensive income and not reflected in our earnings per share. However, the gain would have generated an additional earnings per share of $0.30.

Speaker #6: Slide seven highlights the continued diversification of the portfolio . As mentioned , 85% of our revenue was generated by precious metals , with revenue being sourced 88% from the Americas .

Sandip Rana: As mentioned, 85% of our revenue was generated by precious metals, with revenue being sourced 88% from the Americas. No asset contributed more than 10% of our revenue. Slide 8 illustrates the strength of our business model to continue to generate high margins. For Q3 2025, the cash cost per GEO is $340 per GEO. This compares to $290 per GEO last year. As the gold price has risen, Franco has seen a significant increase in our margin per GEO. Margin was $3,116 per GEO in the quarter, an increase of 42% year over year. Slide 9 summarizes our updated guidance. We have benefited from an increase in GEOs from Cobre Panama and Coté during the first 9 months of 2025.

Speaker #6: No contributed more than 10% of our revenue . Slide eight illustrates the strength of our business model to continue to generate high margins for third quarter 2025 .

Speaker #6: The cash costs per Geo is $340 per geo . This compares to 290 per Geo last year , as the gold price has risen .

Speaker #6: Franco has seen a significant increase in our margin per geo . Margin was 3116 per geo in the quarter , an increase of 42% year over year .

Speaker #6: Slide nine summarizes our updated guidance . We have benefited from an increase in GEOs from Cobre Panama and Cotai during the first nine months of 2025 .

Speaker #6: That , along with record gold prices as resulted in record financial results for the first nine months . Based on geo sold to date and what our expectations are for Q4 2025 , we expect to be at the higher end of our initial guidance range , which was 465,000 to 525,000 .

Sandip Rana: That, along with record gold prices, has resulted in record financial results for the first 9 months. Based on GEOs sold to date and what our expectations are for Q4 2025, we expect to be at the higher end of our initial guidance range, which was 465,000 to 525,000. We've narrowed this range to the higher end and now expect total GEOs sold to be between 495,000 to 525,000. With respect to precious metals GEOs sold guidance, our original guidance range was 385,000 to 425,000. With asset performance to date and precious metal GEOs received from Cobre Panama and Tocantinzinho, we now expect to exceed the top end of the original guidance range.

Speaker #6: We've narrowed this range to the higher to the higher end . And now expect total GEOs sold to be between 400 and 90 5000 to 525,000 , with respect to precious metals , geo sold guidance , our original guidance range was 385 to 425,000 , with asset performance to date and precious metal GEOs received from Cobre Panama and Cote .

Speaker #6: We now expect to exceed the top end of the original guidance range . As a result , our updated , updated guidance range for precious metal GEOs is 420,000 to 440,000 .

Sandip Rana: As a result, our updated guidance range for precious metal GEOs is 420,000 to 440,000. Slide 10 summarizes the financial resources available to the company. The company had $236.7 million in cash and cash equivalents on hand at the end of Q3. When including our credit facility of approximately $1 billion and our equity investments, total available capital at 30 September 2025 is in excess of $1.8 billion. As well, we continue to be debt-free.

Speaker #6: Slide ten summarizes the financial resources available to the company . The company had two and 36.7 million in cash and cash equivalents on hand at the end of the quarter when including our credit facility of approximately 1 billion and our equity investments total available capital at September 30th , 2025 is in excess of 1.8 billion .

Speaker #6: As well . We continue to be debt free . And before I turn it over to the operator , I would just like to summarize the recent CRA settlement that we achieved on September 11th , 2025 , we reached a settlement with the Canada Revenue Agency , which provided for a final resolution of FRANCO NEVADA Corp dispute in connection with the reassessments under transfer pricing rules for the years 2013 to 2019 .

Sandip Rana: Before I turn it over to the operator, I would just like to summarize the recent CRA settlement that we achieved. On 11 September 2025, we reached a settlement with the Canada Revenue Agency, which provided for a final resolution of Franco-Nevada's tax dispute in connection with the reassessments under transfer pricing rules for the years 2013 to 2019 for our Mexican and Barbadian subsidiaries. Under the terms of the settlement, no payment of any tax in Canada is required on these foreign earnings for the subsidiaries for this period. We're glad to have this matter behind us and are very pleased with the settlement reached. With that, I will pass it over to the operator, and we're happy to answer any questions.

Speaker #6: For our Mexican and Barbadian subsidiaries . Under the terms of the settlement no payment of any tax in Canada is required on these foreign earnings for the subsidiaries for this period .

Speaker #6: We're glad to have this matter behind us and are very pleased with the settlement reached . And with that , I will pass it over to the operator , and we're happy to answer any questions .

Speaker #3: Thank you . During this Q&A session , if you would like to ask a question , simply press star . Then the number one on your telephone keypad .

Operator: Thank you. During this Q&A session, if you would like to ask a question, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star then the number two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Fahad Tariq from Jefferies. Please go ahead.

Speaker #3: If you would like to withdraw your question , please press star . Then the number two . If you are using a speakerphone , please lift the handset before pressing any keys .

Speaker #3: One moment please , for your first question . Thank you . And your first question comes from the line of Fahad Tariq from Jefferies .

Speaker #3: Please go ahead .

Speaker #7: Hi . Thanks for taking my question . On the deal pipeline , can you talk a little bit more about the commodity focus ?

Fahad Tariq: Hi. Thanks for taking my question. On the deal pipeline, can you talk a little bit more about the commodity focus? There were some articles recently talking about maybe expanding the gold business in Australia specifically, but at the same time, I know historically Franco's strategy has been to try to be as countercyclical as possible. Just curious what the commodity focus is given where gold prices are today. Thanks.

Speaker #7: There were some articles recently talking about maybe expanding the gold business in Australia specifically , but at the same time , I know historically , Franco's strategy has been to try to be as counter-cyclical as possible .

Speaker #7: So just curious what the commodity focus is given where gold prices are today . Thanks .

Speaker #5: Fahad , Here . The pipeline is good . So I think there's some good prospects of adding more gold deals . You know that said , gold prices are high .

Speaker #5: it's Paul , thanks for the question . It's a good one . The . As for the usual , number one commodity focus is on precious metals .

Paul Brink: Hey, Fahad, it's Paul. Thanks for the question. It's a good one. As usual, our number one commodity focus is on precious metals here. The pipeline is good. I think there's some good prospects of adding more gold deals. You know, that said, gold prices are high. I think we're better positioned than most. Two reasons. The one that I spoke a bit about in my comments there is, in this environment, we expect strong organic growth. The second is we always have a bit of our business open to diversified and always have the discipline in this environment if there are better deals to do on the diversified side, we've got some room to do that. As I say, most of the pipeline is currently gold.

Speaker #5: The I think we're better positioned than most two reasons . The one that I spoke a bit about in my comments there is in this environment , we expect strong organic growth .

Speaker #5: The second is we always have a bit of a business open to diversified , and so we always have the discipline in this environment .

Speaker #5: If there are better deals to do on the diversified side , we've we've got some room to do that . But as I say , most of the most of the pipeline is currently gold on Australia .

Paul Brink: On Australia, I was down there visiting recently. We speaking to the a number of Australian investors and the press about our plans there. We have added a new person to our team in Australia, Matt Selby, out of Perth, who's driving our business development there. We would like to grow our business in Australia. As you know, we have a ton of royalties that cover a huge amount of land in Australia, but it's not yet a big part of our revenue. I think they're particularly good prospects and, you know, in, you know, very keen to find good teams in Australia that we can back, and potentially do something similar to what we've done with G Mining or Discovery in the country.

Speaker #5: I was down there visiting recently . We and speaking to the a number of Australian investors and the press about our plans . There .

Speaker #5: We have had a new person to our team in Australia , Matt Selby out of Perth , who's driving our business development . There .

Speaker #5: We would like to grow our business in Australia . As you know , we have a ton of royalties that cover a huge amount of land in Australia , but it's not yet a big part of our revenue .

Speaker #5: I think they're particularly good prospects and in , you know , very keen to find good teams in Australia that we can back up and potentially do something similar to what we'd done with with G mining or Discovery in the country .

Speaker #7: Okay , great . And maybe just as a follow up , there were some comments , probably now two months ago about looking at natural gas , given where natural gas prices were , maybe lithium brine transactions , given where lithium prices are , and maybe oil , although the last time I think Franco-nevada did an oil royalty was when oil was below $50 a barrel .

Fahad Tariq: Okay, great. Maybe just as a follow-up, there were some comments probably now 2 months ago about looking at natural gas, given where natural gas prices were, maybe lithium brine transactions, given where lithium prices are, and maybe oil, although the last time I think Franco-Nevada did an oil royalty was when oil was below $50 a barrel, so we're not quite there yet. Just maybe comments on those 3 commodities specifically. Thanks.

Speaker #7: So we're not quite there yet . Just maybe comments on those three commodities specifically . Thanks .

Speaker #5: We're open to all three . The as I said right now , as we look at what is ahead of us in the pipeline , the most actionable is on the gold side .

Paul Brink: Fahad, we're open to all three. As I said, right now, as we look at what is ahead of us in the pipeline, the most actionable is on the gold side. On the other commodities, it's less driven by the commodity, it's more driven by asset quality and being able to get good value. If there is good value in either of those areas, we'd be open to it.

Speaker #5: But we're on the other commodities . It's it's less driven by the commodities . It's more driven by asset quality and being able to get good value .

Speaker #5: So if there is good value in either of those areas , we'd be open to it .

Speaker #7: Okay , great . Thank you so much .

Fahad Tariq: Okay, great. Thank you so much.

Speaker #3: Thank you . And your next question comes from the line of Satish Kasinathan from Bank of America . Please go ahead .

Operator: Thank you. Your next question comes from the line of Satish Kasinaden from Bank of America. Please go ahead.

Speaker #8: Yeah . Hi . Good morning . Thank you for taking my questions . This is Satish on Loss and Minerals team . Just a follow up on the deal pipeline .

Satish Kasinaden: Yeah, hi, good morning. Thank you for taking my questions. This is Satish on Lawson Winder's team. Just a follow-up on the deal pipeline. You highlighted that you have a strong growth potential on the organic side with all the projects that you have under your portfolio. Does that mean that going forward, are the focus going to be more on the organic side instead of deals? Or how should we look at it?

Speaker #8: So so you you highlighted that you have a strong growth potential on the organic side with all the projects that you have under your portfolio .

Speaker #8: Does that mean that going forward the focus is going to be more on the organic side instead of deals or how should we look at it , you .

Speaker #8: ?

Speaker #5: No , as I just said on my last comment , the there's a good pipeline . We're always focused on getting new deals done .

Paul Brink: No, as I just said on my last comment, there's a good pipeline. We're always focused on getting new deals done. I make the comment on organic growth, really just in respect of discipline. The market is bullish. We don't need to overpay for assets in this environment because we know that we're gonna have good organic growth. We know we've got a baseline there. The acquisitions on top of that are incremental. The confidence that we'll have good organic growth allows us to keep our discipline.

Speaker #5: I make the comment on organic growth really just in respect of of discipline . You don't . The market is bullish . We don't need to overpay for assets in this environment because we know that we're going to have good organic growth .

Speaker #5: So we know we've got a baseline there . The acquisitions on top of that are incremental . But the the confidence that we'll have good organic growth allows us to keep our discipline .

Speaker #8: Okay . That is clear . Just one follow up on Palmarejo . So it it had a huge quarter this this quarter . It seems it is driven by a higher proportion of ore from the from the region .

Satish Kasinaden: Okay, that is clear. Just one follow-up on Palmarejo. It had a huge Q3. It seems it is driven by a higher proportion of ore from the region that is covered by the stream. How should we look at Q4?

Speaker #8: That is covered by the stream . How should we look at Q4 ?

Speaker #6: Hi . It's Sandeep here . Yeah , I would expect similar levels to what we've averaged for the first nine months of the year .

Sandip Rana: Hi, it's Sandip here. I would expect similar levels to what we've averaged for the first nine months of the year. You know, our projection for the year is anywhere between 40 to 50 thousand GEOs from Palmarejo. That's the guidance at this stage.

Speaker #6: You know , our projection for the year is anywhere between 40 to 50,000 from Palmer Rail . So that's that's that's the guidance at this stage okay .

Speaker #8: Thank you .

Satish Kasinaden: Okay. Thank you.

Speaker #3: Thank you . And your next question comes from the line of Heiko from each see Wainwright , please go ahead .

Operator: Thank you. Your next question comes from the line of Heiko Ihle from H.C. Wainwright & Co. Please go ahead.

Speaker #9: Hi everyone . This is Kate calling in for Heiko as he's on another call . Thank you for taking our question .

[Analyst] (H.C. Wainwright): Hi, everyone. This is Case calling in for Heiko, as he's on another call. Thank you for taking our question.

Speaker #6: Hey ,

Speaker #10: Case .

Sandip Rana: Hey, Case.

Speaker #9: Just on our end , we're thinking out loud here . Three months ago , gold was just below 3400 . Today we're just below 4000 .

[Analyst] (H.C. Wainwright): Just on our end, we're thinking out loud here. 3 months ago, gold was just below $3,400. Today, we're just below $4,000. Obviously, a pretty huge change in price, not really expected by most. You guys have been a huge benefactor of this. You probably have more cash flows now than you budgeted for in recent past. The question is, you know, has the recent gold price environment maybe changed your mind a bit in regard to shareholder returns as it relates to the higher dividend, potential share buyback, or continued M&A, given the pricing environment?

Speaker #9: Obviously pretty huge change in price . Not really expected by most . You guys have been a huge . Benefactor of this . Probably have more cash flows now than you budgeted for in recent past .

Speaker #9: So the question is , you know , has the recent gold price environment maybe change your mind a bit in regard to shareholder returns as it relates to the higher dividend potential ?

Speaker #9: Share buyback or continued M&A given the pricing environment ?

Speaker #6: I'm sure really no , it's it's business as usual as Paul highlighted , our priority is continuing to add good quality assets to the portfolio .

Sandip Rana: I'm sure. Really, no, it's business as usual. As Paul highlighted, our priority is continuing to add good quality assets to the portfolio, focus on precious metals, and then adding diversified if there's very good opportunities available to us. That is number one priority for capital deployment. With respect to the dividend, you know, it's a decision we sit down with our board at the beginning of every year and go through what's in the pipeline, what our cash flow projections are, and make a recommendation on how much we should increase that dividend. You know, our philosophy on the dividend is sustainable and progressive. Raise it every year, never be in a position where you cut it regardless of what's happening with commodity prices. You know, we will be increasing it next year.

Speaker #6: Focus on precious metals and then adding diversified . If there's very good opportunities available to us . So that is number one priority for capital deployment with respect to the dividend .

Speaker #6: You know it's a it's a decision . We sit down with our board at the beginning of every year and go through what's in the pipeline , what our cash flow projections are and make a recommendation on how much we should increase that dividend .

Speaker #6: You know , our philosophy on the dividend is sustainable . And progressive . Raise it every year , never be in a position where you cut it regardless of what's happening with commodity prices .

Speaker #6: So , you know , we will be increasing it next year . The quantum is still yet to be determined , but that will definitely be an increase .

Sandip Rana: The quantum is still yet to be determined. There will definitely be an increase. As for buybacks, that's, you know, it comes down to what's the best use of a dollar. For us, we think the best use of a dollar is still adding good quality assets to the portfolio. Share buybacks is not something that we're considering at this time.

Speaker #6: As for buybacks , that's , you know , it comes down to what's the best use of a dollar . And for us we think the best use of a dollar is still adding good quality assets to the portfolio .

Speaker #6: So, share buybacks are not something that we're considering at this time.

Speaker #9: Well thank you very much . I'll hop back in queue .

[Analyst] (H.C. Wainwright): Thank you very much. I'll hop back in queue.

Speaker #3: Thank you once again . Should you have a question , please press star . Then the number one on your telephone keypad and your next question comes from the line of cosmos Du from TVC .

Operator: Thank you. Your next question comes from the line of Cosmos Chiu from CIBC. Please go ahead.

Speaker #3: Please go ahead .

Speaker #11: Hi . Thanks , Paul and Sandeep , this is cosmos from cosmos team at CIBC . Maybe my first question is on Mpis Paul and Sandeep , as you know , I like to ask about these Mpis during periods of more robust precious metals prices .

Cosmos Chiu: Hi. Thanks, Paul and Sandeep. This is Cosmos from Cosmos' team at CIBC. Maybe my first question is on the NPIs. Paul and Sandeep, as you know, I like to ask about these NPIs during periods of more robust precious metals prices. As you mentioned, Hemlo did not have the best quarter in Q3, in part due to less ore being mined at the Interlake. I guess my question is, I'm just wondering how much visibility do you have in terms of what's being mined from the different areas, you know, into Q4 and potentially into 2026 as well? How is the potential change in ownership gonna potentially change that thinking?

Speaker #11: But as you mentioned , Hemlo did not have the best quarter in in Q3 , in part due to less oil being mined that Interlake .

Speaker #11: I guess my question is , I'm just wondering how much visibility do you have in terms of what's being mined from the different areas , you know , into Q4 and potentially into 2026 as well ?

Speaker #11: And how is the potential change in ownership going to potentially change that thinking ?

Speaker #6: Hi , cosmos . So in terms of visibility , it's it's limited . Obviously there's a mine plan put in place at the beginning of each year and a budget that the operator does .

Sandip Rana: Hi, Cosmos. In terms of visibility, it's limited. Obviously there's a mine plan put in place at the beginning of each year and a budget that the operator does, in this case, Barrick. You know, you can move away from that, and sometimes it's based on timing, and that was what's happened in Q3. In this environment at these gold prices, we do expect the NPI to do quite well, and it did in the first part of this year. You know, I think part of the impact of Q3 was also with the sale going through and just, you know, probably some impact to efficiency for the mining on site.

Speaker #6: So in this case , Barrick . But you know , you can you can move away from that . And sometimes it based on timing .

Speaker #6: And that was what's happened in Q3 in this environment that these gold prices , we do expect the NPI to do quite well .

Speaker #6: And it did in the first part of this year . You know , I think part of the impact of Q3 was also with the sale going through and just , you know , probably some impact to efficiency on the with the mining on site , with respect to the new ownership group .

Sandip Rana: With respect to the new ownership group, that transaction has not closed yet, you know, obviously they're seeing something there to be spending over $1 billion to acquire that asset. That is encouraging. It's a wait and see approach at this time as to what changes or improvements they will make. You know, we're excited to see, you know, what their plan is and what they envision, and I think we'll have more information over the next few months.

Speaker #6: And that transaction has not closed yet . You know , obviously they're seeing something there to be to be spending over $1 billion to acquire that asset .

Speaker #6: So that is encouraging . We're it's a wait and see approach at this time as to what changes or improvements they will make .

Speaker #6: But you know , we're we're excited to see you know , what their plan is and what they envision . And I think we'll have more information over the next , next few months .

Speaker #11: Thanks . And how about the Musselwhite 5% MPI again , I'm seeing Q3 . It didn't really increase that much from previous quarters in 2025 .

Cosmos Chiu: Thanks. How about the Musselwhite 5% NPI? Again, I'm seeing Q3, it didn't really increase that much from previous quarters in 2025. Like, when does that one kick in? How should we look at that one, at Musselwhite?

Speaker #11: Like , when does that one kick in ? How should we look at that one at Musselwhite ?

Speaker #6: Yeah , so so Musselwhite is a it's a again , it's a profit calculation . We have limited visibility at this time . We get paid once a year , which is after year end .

Sandip Rana: Musselwhite, it's a profit calculation. We have limited visibility at this time. We get paid once a year, which is after year-end. Right now, what you're seeing from our numbers is just an estimate. We haven't seen what capital is being spent. We'll get the calculation, as I said, post year-end, and there'll be a true up there. You know, we're a conservative group, so our numbers are conservative. I'm hopeful that the actual number that comes out at the end of the year is much higher. At this stage, it's our best estimate.

Speaker #6: So right now what you're seeing from our from our numbers is just an estimate . We we haven't seen what capital is being spent .

Speaker #6: We'll get the calculation . As I said , post year end . And there'll be a true up there . You know , we're a conservative group .

Speaker #6: So our numbers are conservative . So I'm I'm hopeful that the actual number that comes out at at the end of the year is , is much higher .

Speaker #6: But at this stage, it's our best estimate.

Paul Brink: Great.

Speaker #11: Right now .

Paul Brink: Right now it's early.

Speaker #5: It's early .

Cosmos Chiu: Okay. Yep. Sorry, Paul.

Speaker #11: Sorry .

Speaker #5: It's early days on both of those assets, Cosmos. But I gotta say I'm delighted with the change in ownership in both Bob Quartermain and their team.

Paul Brink: It's early days of both of those assets, Cosmos, I got to say delighted with the change in ownership in both Bob Quartermain and their team. Bob, as you probably know, started his career at Hemlo, drilled some of the original discovery holes there. Having that team in place, you know, led by Bob, there's no doubt in my mind that they are gonna drill and expand that ore body, which I think is gonna do terrifically well for us over time. Similarly, on Musselwhite, delighted that it's the Orla team led by Jason Simpson, very capable group, also very aggressive, having great success in drilling out the strike extension of that deposit.

Speaker #5: Bob , as you as you probably know , started his career at Hemlo , drilled some of the original discovery holes there . So having that team in place , led by Bob , there's no doubt in my mind that that they are going to drill and expand that all body , which I think is going to do terrifically well for us over time .

Speaker #5: Similarly , on Musselwhite , delighted that it's the Ola team led by Jason Simpson , very capable group also very aggressive , having great success in drilling out the strike extension of that deposit .

Speaker #5: So all these things take a little bit of time before it starts showing up as cash flow . But but you know , I think very positive that you've got both those teams focused on expanding those assets .

[Analyst] (H.C. Wainwright): All these things take a little bit of time before it starts showing up as cash flow.

Paul Brink: Very positive that you've got both those teams focused on expanding those assets.

Speaker #11: Great . Thanks , Paul . I do agree as well . Maybe switching gears a little bit , I noticed that as you mentioned , you sold some or the company sold some discovery shares in the quarter .

Cosmos Chiu: Great. Thanks, Paul. I do agree as well. Maybe switching gears a little bit, I noticed that, as Sandip, you mentioned, the company sold some Discovery shares in the quarter. How much of that was kind of related to your desire to be debt-free by the end of the quarter, especially since you had drawn $175 million on your credit facilities to pay for the expanded Sibanye acquisition. How much of that was due to you wanting to be debt-free? Number 1 and number 2, what's kind of like the plan now for, you know, the remaining Discovery shares or for that matter, your G Mining shares?

Speaker #11: How much of that was kind of related to your desire to be debt free by the end of the quarter , especially since you had drawn $175 million on your credit facilities to pay for the expanded silicon acquisition .

Speaker #11: So how much of that was due to you wanting to be debt free ? And number one and number two , what's kind of like the plan now for the remaining discovery shares or for that matter , your G mining shares ?

Speaker #5: Hey , cosmos . Paul , the you know , so first of all , with with with G-Men and discovery , the our plan is to be their financial backers , not not just with with stream and royalties , but but also to be in the equity .

Paul Brink: Hey, Cosmos, Paul.

Cosmos Chiu: Hi, Paul.

Paul Brink: You know, first of all, with G Mining and Discovery, our plan is to be their financial backers, not just with stream and royalties, but also to be in the equity. We will be long-term holders. You know, that said, the equity side of our business as we all know, it's not the core side, we do plan to take profits over time. With Discovery, there were a couple of things there. One is we had very good share price performance, and you're absolutely right. The other part of it was, we had some debt outstanding and, you know, those two things together, we sold a small part of our position.

Speaker #5: So so we will be long term holders . Now that said the the equity side of our business , as we all know , it's not the core side .

Speaker #5: So we do plan to take profits over time with , with with discovery . The there were a couple of things there . The one is had had very good share price performance and you're absolutely right .

Speaker #5: The other part of it was we had some debt outstanding . And so , you know , those two things together , we we sold a small part of our position .

Speaker #5: We're able to realize a good gain and repay the debt . But we , you know , longer term we will continue to be holders of their stock and supporters of the company .

Paul Brink: We're able to realize a good gain and repay the debt. We, you know, longer term, we will continue to be holders of their stock and supporters of the company.

Speaker #11: Great . And then one last question . Western limb . I saw that it had good results in Q3 . And you had mentioned that , you know , platinum prices , PJM prices are PJM prices have actually outperformed gold since the acquisition , which is good .

Cosmos Chiu: Great. One last question. Western Limb, I saw that it had good results in Q3, and you had mentioned that, you know, platinum prices, PGM prices have actually outperformed gold since the acquisition, which is good. I just wanna, you know, understand because I know this is a bit of a complicated transaction. I know that gold is actually based on PGM production. The delivery is actually pegged to the 4-year PGM production. You also mentioned in the MD&A that right now it's 82% and 18% gold versus PGM. I think the press release that came out earlier this year during the acquisition was 70 and 30. That was the split. I guess I'm trying to confirm PGM prices have outperformed gold. Does that benefit your stream?

Speaker #11: But I just want to , you know , understand because I know this is a bit of a complicated transaction . And so I know the gold is actually based on PJM production .

Speaker #11: The deliveries are actually pegged to the 4 p.m. production. You also mentioned in the mDNA that right now it's 82% and 18% gold versus PM.

Speaker #11: And I think the press release that came out earlier this year during the acquisition was 70 and 30 . That was a split .

Speaker #11: So, I guess I'm trying to confirm that PJM prices have outperformed gold. Does that benefit your stream, and if so, how does it benefit?

Cosmos Chiu: If so, how does it benefit?

Speaker #6: Cosmos . It's seen speaking . Thank you for the question .

Eaun Gray: Hi, Cosmos, it's Ian speaking. Thank you for the question.

Speaker #12: Hi . Thanks . A very good question . I would say first of all , delighted with the performance of platinum . It has outpaced gold to a certain degree , and we do benefit from that .

Cosmos Chiu: Hi, Ian.

Eaun Gray: I think it's a very good question. I would say, first of all, delighted with the performance of platinum. It has outpaced gold to a certain degree, and we do benefit from that both directly and indirectly. You'll note that there is a portion of the stream that is platinum, so we do enjoy the appreciation in those platinum revenues immediately. Secondarily, you're quite right that what we've done is we've linked the gold deliveries to the 4E PGM production. As the basket improves, as Sibanye looks at options for the assets, we would benefit indirectly from that as well. As you'll probably note that there are two distinct ore bodies in these deposits, the UG2 and the Merensky.

Speaker #12: Both directly and indirectly . So you'll note that there is a portion of the stream that is platinum . So we do enjoy the appreciation in those platinum revenues immediately .

Speaker #12: And then secondarily , you're quite right that what we've done is we've linked the gold deliveries to the 40 PM production . So as the basket improves as Sibanye looks at options for for the assets , we would benefit indirectly from that as well .

Speaker #12: And as you'll probably know that there are two distinct orebodies in these deposits . The Ug2 and the Mariinsky . And this structure mitigates any risk of volatility from mining from one versus the other .

Eaun Gray: This structure mitigates any risk of volatility from mining from one versus the other for us, and provides a more stable stream of gold revenues to Franco. That's why that was done.

Speaker #12: For us and provides a more stable stream of gold revenues to Franco . So that's why that was done .

Speaker #11: Great . Thanks once again , Paul , Sandeep and you for answering all my questions . Congrats on a very strong Q3 . And those are the questions I have .

Cosmos Chiu: Great. Thanks once again. Once again, Paul, Sandip, and Eaun for answering all my questions. Congrats on a very strong Q3. Those are all the questions I have.

Speaker #5: Thanks , cosmos .

Paul Brink: Thanks, Cosmos.

Speaker #10: Thanks cosmos .

Eaun Gray: Thanks, Cosmos.

Speaker #3: Thank you and your next question comes from the line of Tanya Jakusconek , Scotiabank . Please go ahead .

Operator: Thank you. Your next question comes from the line of Tanya Jakusconek from Scotiabank. Please go ahead.

Speaker #13: Oh , great . Good morning everyone . Thank you so much for taking my questions . I just wanted to come back to the transaction environment in a little more detail .

Tanya Jakusconek: Great. Good morning, everyone. Thank you so much for taking my questions. I just wanted to come back to the transaction environment in a little more detail. I guess it's divided into three sections. I'm gonna start on the precious metals opportunities that you're seeing out there. When we last spoke, 'cause lots of things have happened with this rapid rise in the gold price, the opportunities were in the $100 to 500 million range. I'm trying to understand if that's still what you're seeing out there, and is it still for funding of asset sales or still funding for, you know, asset builds.

Speaker #13: I guess it's divided into three , three , three sections . I'm going to start on the the precious metals opportunities that you're seeing out there .

Speaker #13: When we last spoke , because lots of things have happened with this rapid rise in the gold price , the opportunities were in the 100 to 500 million range .

Speaker #13: I'm trying to understand if that's still what you're seeing out there . And is it still for funding of asset sales or still funding for , you know , asset builds ?

Speaker #13: I'm just wondering if that has changed at all . And are you seeing more competition now in the market with Zinzin coming in and other players ?

Tanya Jakusconek: I'm just wondering if that has changed at all, and are you seeing more competition now in the market with Zijin coming in and other players, and are you finding it's taking longer to get deals done? That's my first question on the precious metals.

Speaker #13: And are you finding it's taking longer to get deals done? That's my first question on the precious metals.

Speaker #12: Okay . Thank you . Tanya , it's Ian speaking again . It's a very good question . When we last spoke , I indicated a similar environment to what we had seen in prior quarters , and I would reiterate that that continues to be the case in terms of deal size .

Eaun Gray: Okay. Thank you, Tanya. It's Ian speaking again. It's a very good question. When we last spoke, I indicated a similar environment to what we had seen in prior quarters, and I would reiterate that that continues to be the case in terms of deal size, certainly, and also in terms of the type of transaction. We do see good opportunities in asset sales as likely over the coming quarters. Likewise, good potential for project financings as well. I think those are two kind of legs of the stool, and we look to back teams in both of those types of financings, utilizing similar structures to what we would have done with Discovery or GMIN. We're quite optimistic about more of those transactions as we move forward.

Speaker #12: Certainly . And also in terms of the type of transaction . So we do see good opportunities in asset sales as likely over the coming quarters .

Speaker #12: Likewise , good potential for project financings as well . And I think those are two kind of legs of the of the stool .

Speaker #12: And we look to back teams in both of those types of financings utilizing similar structures to what we would have done with with discovery or Gmin .

Speaker #12: So we're quite optimistic about more of those transactions as we as we move forward . There are also some high quality third party royalties that that are out there , and we continue to look at those and selectively execute on on transactions like that when they come available .

Eaun Gray: There are also some high-quality third-party royalties that are out there. We continue to look at those and, you know, selectively execute on transactions like that when they come available. Hopefully that's helpful.

Speaker #12: Hopefully that's that's helpful .

Speaker #13: And are you finding that there is more competition in taking longer to complete deals with this higher gold price ? I'm just trying to understand how tight this market is .

Tanya Jakusconek: Are you finding that there is more competition and taking longer to complete deals with this higher gold price? I'm just trying to understand how tight this market is.

Speaker #10: Sure , I would say .

Eaun Gray: Sure. I would say not a noticeable change in the competitive landscape really from my perspective. What has defined recent period is volatility in prices, and, you know, volatility in terms of, you know, a number of other factors at play in the market. As things kind of settle down and find more of a, you know, a base, I think we'll see more transactions happen. When you have significant moves in metal prices, of course, for any type of transaction, on the short term it makes it a bit more difficult to execute. I think we'll see hopefully some more stability as we move forward.

Speaker #12: Not a noticeable change in the competitive landscape , really . From my perspective , what has defined recent period is volatility , volatility and prices and volatility in terms of a number of other factors at play in the market .

Speaker #12: And as things kind of settle down and find more of a, you know, a base, I think we'll see more transactions happen.

Speaker #12: And when you have significant moves in metal prices , of course , for any type of transaction on the short term it makes it a bit more difficult to execute .

Speaker #12: But I think we'll see . Hopefully some more stability as we move forward .

Speaker #13: Okay . Thank you , Anne , for that . On the precious metals side , on the Non-precious metals side , I know we talked about , you know , lithium and natural gas and oil .

Tanya Jakusconek: Okay. Thank you, Ian, for that on the precious metal side. On the non-precious metal side, I know we talked about, you know, lithium and natural gas and oil. I wanted to ask whether that extends to also iron ore, if that's still something you're looking at. What's the size in a non-precious metal deal? Are you seeing transactions similarly in that $100 to 500 million range? Does iron ore or maybe potash also fit within that at this point?

Speaker #13: So, I wanted to ask whether that extends to also iron ore, if that's still something you're looking at. And also, what's the size in a non-precious metals deal?

Speaker #13: Are you seeing transactions similarly in that $100 million to $500 million range? And does iron ore, maybe potash, also fit within that at this point?

Speaker #5: So Tanya Paul , the at my comments were earlier on what we're looking at . That's immediately actionable in the pipeline is precious metal focused where but all those commodities that you mentioned there are lithium , oil and gas , iron ore where we're open to those .

Paul Brink: Tanya, Paul, you know, my comments were earlier on, what we're looking at that's immediately actionable in the pipeline is precious metal focused. All those commodities that you mentioned there, lithium, oil and gas, iron ore, we're open to those if there are transactions with good value. On the potash side, you do know we did and we were able to acquire an option on the Autazes Potash project down in Brazil. You know, that is if and when that project reaches a project financing, we've got the option to buy a royalty on that one. All of those are future prospects.

Speaker #5: If there are transactions with good value . The on the potash side , you do know we we didn't we were able to acquire an option on the potash project down in in Brazil .

Speaker #5: So that is if and when that project reaches a project financing . We've got the option to buy a royalty on that one .

Speaker #5: So all of those are future prospects .

Speaker #13: And size wise . Paul , what are we looking at in those types of transactions ?

Tanya Jakusconek: size-wise, Paul, what are we looking at in those types of transactions?

Speaker #5: The you know , as I say , the word open in concept to to transactions . The so the , you know , nothing that I can say is immediate in the pipeline and but you know , you know what our guidance is on diversified .

Paul Brink: You know, as I said, they were open in concept to transactions. You know, nothing that I can say is immediate in the pipeline. You know, you know what our guidance is on diversified. It's a limited part of our portfolio, so don't expect anything large.

Speaker #5: It's a limited part of our portfolio, so don't expect anything large, okay?

Tanya Jakusconek: Okay, under $500 million. Okay. Maybe just on my third portion of this is, you know, are you know, as you look at the landscape out there, how do you assess corporate transaction vis-a-vis some of these other opportunities?

Speaker #13: So under 500 million . Okay . And then maybe just on my third portion of this as you are you you know , as you look at the landscape out there , how do you assess corporate transaction vis a vis some of these other opportunities ?

Paul Brink: We always run our pencil over the other companies, Tanya, to see if there is good value. Nothing has changed from what we've said in the past. It comes down to you've got a dollar to spend and where are you gonna get the best return for your dollar? We typically find that that is in doing private deals and I'd say, you know, that's where we currently are again.

Speaker #5: We always run our pencil over the other companies . Tanya , to see if there is good value and the nothing has changed from what we've said in the past .

Speaker #5: It comes down to you've got a dollar to spend and where have you , where are you going to get the best return for your dollar .

Speaker #5: We typically find that that is , in doing private deals , and I'd say , you know , that's where we're currently are .

Speaker #5: Again .

Speaker #13: Okay . And then just maybe if I could ask on the equity interest , I think 625 million of equity investments just with the sale of the discovery silver and I don't know what else may have been sold .

Tanya Jakusconek: Okay. Then just maybe if I could ask on the equity interest, I think $625 million of equity investments. With the sale of the Discovery Silver, and I don't know what else may have been sold, can you just kind of remind me, Sandip, what are the biggest portion of that $625 Discovery Silver, G Mining?

Speaker #13: Can you just kind of remind me , Sandeep , what are the biggest portion of that 625 discovery silver mining ? Is there anything else that public .

Speaker #6: A lot . Sorry , sorry , Tanya Labrador , iron ore royalty leaf is those are the three largest positions .

Sandip Rana: Sorry, Tanya. Labrador Iron Ore Royalty, LIF is-

Tanya Jakusconek: Oh.

Sandip Rana: Those are the three largest positions.

Speaker #13: Okay , so the Labrador is in there as well . Okay . No , that's very good . Thank you so much for taking my questions .

Tanya Jakusconek: Okay. The Labrador is in there as well. Okay. No, that is very good. Thank you so much for taking my questions, and congrats on a good quarter.

Speaker #13: And congrats on a good quarter .

Speaker #5: Thank you Tanya .

Paul Brink: Thank you, Tanya.

Speaker #10: Thanks , Tanya .

Sandip Rana: Thanks, Tanya.

Speaker #3: Thank you and your next question comes from the line of Jen from gentleman Independent Research . Please go ahead .

Operator: Thank you. Your next question comes from the line of John Tumazos from John Tumazos Independent Research. Please go ahead.

Speaker #14: Thank you for taking my questions . Could you elaborate on the extra royalty on Gold Quarry by in it's famously discovered over 40 years ago is the coverage the underground mining from the feeder zone with the open pit oxide all used up or are there more oxides that are economic ?

John Tumazos: Thank you for taking my questions. Could you elaborate on the extra royalty on Gold Quarry buy-in? It's famously discovered over 40 years ago. Is the coverage the underground mining from the feeder zone with the open pit oxide all used up, or are there more oxides that are economic because gold's $4,000? I'm wondering what the sizzle is there.

Speaker #14: Because gold's 4000 . I'm wondering what the sizzle is . There .

Speaker #12: Hi , John . It's it's Ian speaking . Thanks for the question . I'd say first of all , we're very happy to add to our position on Gold Quarry .

Eaun Gray: Hi, John, it's Ian speaking. Thanks for the question. I'd say, first of all, we're very happy to add to our position on Gold Quarry. This is incremental to what we already have there. In reality, this royalty is structured with a minimum, which is based on a number of factors, one of which is the amount of reserves. As those change based on a number of assumptions, one of which often would, of course, be gold price, that can trigger a change in the minimums. In terms of what makes it attractive to us, there's that potential for sure, and I think as well, based on the current level of payments, it provides a very healthy rate of return. Very pleased to add that.

Speaker #12: This is incremental to what we already have there . And so . In reality , this royalty is is structured with a minimum , which is based on a number of factors , one of which is the amount of of reserves .

Speaker #12: So as those change based on a number of assumptions , one of which often would of course be gold price , that can trigger a change in the minimums .

Speaker #12: So in terms of what makes it attractive to us , there's that potential for sure . And I think as well , based on the current level of payments , it provides a very healthy rate of return .

Speaker #12: So very pleased to to add that . And the coverage is the same as set out for the existing royalty in the asset handbook , which I would have you refer to .

Eaun Gray: The coverage is the same as set out for the existing royalty in the asset handbook, which I would have you refer to.

Speaker #5: And John , there's a there's a pushback of the pit wall to the north and east that's been contemplated over time . Not , not not not something that's currently on the books , but the hopes and dreams are with high gold prices that that is something that would go ahead and that we could get a lot more from that royalty .

Paul Brink: John, there's a pushback of the pit wall to the north and the east that's been contemplated over time. Not something that's currently on the books, but, you know, hopes and dreams are with high gold prices that is something that would go ahead and that we could get a lot more from that royalty.

Speaker #14: Thank you . If I could ask one more on discovery , the quick calculation I made was that you sold 27.8 million shares and had 52.2 left , and that you receive $3.04 US per share .

John Tumazos: Thank you. If I could ask one more. On Discovery, the quick calculation I made was that you sold 27.8 million shares and had 52.2 left, and that you received $3.04 US per share. Is that about right?

Speaker #14: Is that about right ?

Speaker #6: So , John , we sold 26 million shares .

Eaun Gray: John, we sold, 26 million shares.

Speaker #14: So you got a little more for it . Thank you .

John Tumazos: You got a little more for it. Thank you.

Speaker #3: Thank you. And your next question comes from the line of Daniel Major from UBS. Please go ahead.

Operator: Thank you. Your next question comes from the line of Daniel Major from UBS. Please go ahead.

Speaker #15: Yeah . Thanks . Can you hear me ? Okay .

Daniel Major: Yeah, thanks. Can you hear me okay?

Speaker #10: Yes , yes .

Paul Brink: Yes, yes, loud and clear.

Speaker #5: Loud and clear .

Speaker #15: Great . Thanks . Yeah . My first one . Apologies . I was slightly late during the call . If it's already been asked , but just the first one on Korea .

Daniel Major: Great, thanks. My first one, apologies if I was slightly late joining the call if it's already been asked. Just the first one on Cobre Panama and from a, I guess, a significantly involved party, but not directly at the table. I mean, when you look at the catalysts that need to occur to trigger the restart, the environmental audit, the renegotiation of fiscal terms, remobilizing the workforce, et cetera, what do you think kind of feels most likely to be the bottleneck in the process? I heard some commentary out of Panama that there's still a belief that the environmental audit and the fiscal terms can be negotiated by the end of the year. Do you think that's realistic?

Speaker #15: Panama and from , I guess significantly involved party , but not directly at the table . I mean , when you look at the catalysts that need to occur to , to , to trigger the restart , the environmental audit , the renegotiation of fiscal terms , remobilising the workforce , etc.

Speaker #15: , what what do you think kind of feels most likely to be the bottleneck in the process ? And I heard the some commentary out of Argentina that there's still a belief that the environmental audit and the fiscal terms can be negotiated by the end of the year .

Speaker #15: Do you think that's realistic ?

Speaker #5: The that is , Daniel . That's the timeline that that President Merlino had put out there as his objective . These things can always take longer .

Paul Brink: That is, Daniel, that's the timeline that President José Raúl Mulino had put out there as his objective. These things can always take longer, they've been consistent on saying that is what they're aiming for. The audit is underway. There are no formal negotiations at this stage, although I know the company and the government have engaged in getting set for that. I, it is, you know, I think it's still possible that kind of timeline gets met.

Speaker #5: But the they've been consistent in saying that is what they're aiming for . The the audit is underway . There are no formal negotiations at this stage .

Speaker #5: Although I know the company and the government have engaged in in getting set for that . So I it is you know , I think it's still possible that that kind of timeline gets met .

Paul Brink: We're encouraged by You probably would have seen the recent press comments by President Mulino, also comments by Tristan Pascall on acknowledging that the state would remain the owner of the minerals and agreement on trying to negotiate on that basis. I take that as a strong positive. The government comments is that is being received well. I think that news is positive.

Speaker #5: We're encouraged by you probably would have seen the recent press comments by President Merlino , also comments by Tristan Pascal on acknowledging that that the state would remain the owner of the minerals and agreement on on trying to negotiate on that basis .

Speaker #5: So I take that as a as a strong positive . The government comments . That that has been received well . So I think that news is positive .

Speaker #5: The other positive news has been coming out of country is just the shift in sentiments where you saw 70 , 80% of folks post protests were were anti-mining in any form , and that has shifted to slight majority now that are open and also a good amount that that I think would be supportive under the right terms .

Paul Brink: The other positive news that's been coming out of country is just the shift in sentiments, where you saw 70% and 80% of folks post-protests were anti-mining in any form. That has shifted to a slight majority now that are open and also a good amount that I think would be supportive under the right terms, the right participation for the government of Panama, the right amount of transparency. I think things are definitely trending in the right direction. As we mentioned, there is movement on the ground with the government approving the various aspects of preservation and safe maintenance, the shipping of the concentrate, the power plant. The company has been rehiring folks so that they can start some of those activities.

Speaker #5: The right participation for the government of Panama , the right amount of of transparency . So I think things are definitely trending in the right direction .

Speaker #5: As we mentioned , there is movement on the ground with the government approving the various aspects of preservation and safe maintenance . The shipping of the concentrate , the power plant .

Speaker #5: The company has been rehiring folks so that they can start some of those activities . They've had a very strong response . A lot of folks looking to acquire those jobs , and I think that has also helped shift sentiment as people realize the value of the mine to the economy .

Paul Brink: They've had a very strong response, a lot of folks looking to acquire those jobs and I think that has also helped shift sentiment as people realize the value of the mine to the economy.

Speaker #15: Okay . Thank you . The second one on the Arthur Gold Project , I mean , how do you see the initial scope of the project ?

Daniel Major: Okay. Thank you. The second one on the Arthur Gold project. I mean, how do you see the initial scope of the project? We've seen some initial kind of projections, et cetera. I mean, yeah, from your perspective, how do you envisage the timeline and the initial scope of the project if you had to kind of hazard a range of expectations?

Speaker #15: And obviously we've seen some initial kind of projections , etc. , but I mean , yeah , from your perspective , how do you envisage the the timeline and the initial scope of of the project ?

Speaker #15: If you had to kind of hazard a range of expectations ?

Eaun Gray: Thank you, Daniel. It's Eaun Gray speaking here. First of all, we're thrilled to be involved in this project with AngloGold. We think the geological upside on the royalty grounds over time is phenomenal. In terms of first steps in permitting, I understand that, you know, they need to start somewhere, even though the full deposit, in our view, likely hasn't emerged. They, you know, I think AngloGold's disclosure is around, you know, Merlin-focused plan to start, and then, you know, exploration hopefully continuing from there. We have also been very happy to see the US permitting environment has evolved quite, you know, positively over the last little while, and projects, such as Stibnite, where we're involved, have moved along quite well.

Speaker #12: Thank you . Daniel . It's Ian Gray speaking here . First of all , we were thrilled to be involved in this project with AngloGold .

Speaker #12: We think the geological upside on the royalty grounds over time is is phenomenal in terms of first steps in permitting . I understand that they need to start somewhere , even though the full deposit , in our view , likely hasn't , hasn't emerged .

Speaker #12: So they you know , I think AngloGold disclosure is around , you know , Merlin focused plan to start and then , you know , exploration hopefully continuing from there .

Speaker #12: We have also been very happy to see that us permitting environment has evolved quite you know , positively over the last little while .

Speaker #12: And projects such as Stibnite , where we're involved have have moved along quite well . So in terms of permitting , we're hopeful on the , on the time frame as to when that when that can happen .

Eaun Gray: In terms of permitting, we're hopeful on the timeframe as to when that can happen. You know, I think, you know, there's got to be a significant over-under in exactly when that happens with any regulatory process, but we're hopeful that the mine would start, you know, in the early portion of the 2030s.

Speaker #12: You know , I think a , you know , there's got to be a significant over under and exactly when that happens with any regulatory process .

Speaker #12: But we're hopeful that the mine would start , you know , in the early portion of the 2030s .

Speaker #15: Okay . Thank you . I'll leave it there .

Daniel Major: Okay. Thank you. I'll leave it there.

Speaker #3: Thank you . And your next question comes from the line of Derek . Ma from TD Cohen . Please go ahead .

Operator: Thank you. Your next question comes from the line of Derick Ma from TD Cowen. Please go ahead.

Speaker #16: Thank you . At current gold prices , is there more leverage in royalties and streams on primary gold mines versus byproduct gold streams ?

Derick Ma: Thank you. At current gold prices, is there more leverage in royalties and streams on primary gold mines versus byproduct gold streams? Does that factor into the way you look at your portfolio or your decision-making when assessing new opportunities?

Speaker #16: And does that factor into the way you look at your portfolio or your decision making when assessing you opportunities ?

Speaker #5: Good question Derek . The and yes , it's the short answer . Obviously when the when the gold price is running on a primary gold deposit , the it allows operators when they look at their reserves and that's going to I think a lot of operators are looking at their reserves right now to figure out what price are they going to use at year end .

Paul Brink: Good, good question, Derick. Yes is the short answer. Obviously, when the gold price is running on a primary gold deposit, it allows operators when they look at their reserves. I think a lot of operators are looking at their reserves right now to figure out what price are they gonna use at year-end. I think at the end of last year, the average for the industry was about $1,800 an ounce. I'm guessing at this, but I think the industry will be over $2,000 an ounce for their gold reserves. It means lower cutoff grades, it means a lot of material that's gonna move into the mine plan. You know, put that forward just a couple of years.

Speaker #5: I think at the end of last year, the average for the industry was about $1,800 an ounce. I'm guessing at this, I think the industry will be over $2,000 an ounce for their gold reserves.

Speaker #5: It means lower cut off grades and it means a lot of material that's going to move into the mine plan . You know , put that forward just a couple of years .

Speaker #5: Let's just assume we're at $4,000 years and $4,000 gold in three years time . You could easily see the industry at , you know , 26 , 28 , $3,000 gold for reserves .

Paul Brink: Let's just assume we're at $4,000 gold in 3 years' time. You could easily see the industry at, you know, $2,600, $2,800, $3,000 gold for reserves. Even if the gold price stayed flat in that scenario, our stock price would be worth a lot more because you get a huge amount of ounces that get moved into reserves. That's, you know, on our portfolio, about half the assets are gold streams on copper mines. Half the assets are royalties on principal gold assets. I think that's a big driver. You know, on the other side, copper prices are doing great too. The same thing applies for a copper asset. Higher copper prices, you'll get a lot more material moved into those mine plans.

Speaker #5: So even if the gold price stayed flat in that scenario , our stock price would be worth a lot more because you get a huge amount of ounces that get moved into reserves .

Speaker #5: And so that's , you know , on our portfolio , about half the assets are are gold streams on copper mines , half the assets are royalties on on principal gold assets .

Speaker #5: So I think that's a big driver . You know , on the other side , copper prices are doing great too . So the same thing applies for copper asset .

Speaker #5: Higher copper prices will result in a lot more material being moved into those mine plants. So, on both sides, I think we should see great organic growth.

Paul Brink: On both sides, I think we should see great organic growth.

Speaker #16: Okay , great . And maybe a question on Argentina . Two of your longer term growth assets that you've listed . Takataka and San Jorge , are , are Argentina .

Derick Ma: Okay, great. Maybe a question on Argentina. Two of your longer-term growth assets that you've listed, Taca Taca and San Jorge, are in Argentina. Midterm elections are behind us now. What are your current views on Argentina as a mining jurisdiction and as a investment destination for Franco-Nevada going forward? Maybe a follow-up on top of that is how many GEOs for Taca Taca and San Jorge are in your 2029 outlook?

Speaker #16: Midterm elections are behind us . Now . What are your current views on Argentina as a mining jurisdiction and as an investment destination for Franco-nevada going forward ?

Speaker #16: And then maybe a follow up on top of that is how many GEOs for Takataka and San Jorge are in your 2029 outlook ?

Speaker #5: Yeah , maybe I'll just speak about the assets and then Santa can comment on the guidance . The sand quarry is is a I'd call it a mid-size , but good grade copper gold asset in Mendoza company try to get it permitted probably more than a decade ago .

Paul Brink: Yeah, maybe I'll just speak about the assets and then Sandy can comment on the guidance. The San Jorge is a I'd call it a mid-size, but good grade copper-gold asset in Mendoza. Company tried to get it permitted probably more than a decade ago. Didn't quite get there at the time. Things have changed materially. You know, in meetings early this year, I met with the governor for natural resources in Mendoza, and she was very encouraging, saying, San Jorge could be the very first of the assets to move ahead under the new RIGI program. We're very encouraged by that. Know the company is working on raising financing to move that forward. Next up, Taca Taca.

Speaker #5: Didn't quite get there at the time . Things have changed materially , you know , in meetings early this year I met with the the governor for Natural Resources in Mendoza , and she was very encouraging , saying San Jorge could be the very first of the assets to move ahead under the new program .

Speaker #5: So we're very encouraged by that . No , the company is working on on raising financing to to move that forward . And next up , Takataka .

Speaker #5: We're very hopeful that that is the next big copper asset , that first quantum will build . I think , as we all know , Rai is a two year window to get your applications in .

Paul Brink: We're very hopeful that that is the next big copper asset that First Quantum will build. I think as we all know, RIGI is a 2-year window to get your applications in, and we're 1 year into that. There's another 12 months to get that application in, and then companies need to start spending and their minimum spends over the next 2 years. I think it's highly likely that you'll see spending going ahead on Taca Taca in the short term. For Argentina, we don't need to invest anything on those assets. We already own those interests, so that'll happen regardless. For Argentina, it is the big question. Huge amount of assets there that are going to attract a lot of investment dollars. We will consider Argentina.

Speaker #5: And we're a year into that . So there's another 12 months to get that application in . And then companies need to start spending and their minimum spends over the next two years .

Speaker #5: So I think there's highly likely that that you'll see spending going ahead on Taca in the short term for Argentina . We don't need to invest anything on those assets .

Speaker #5: We already own those interests . So so that'll happen regardless for Argentina , it is the big question . Huge amount of assets .

Speaker #5: There that are going to attract a lot of investment dollars . The so we will consider Argentina the what has been put forward in Rai is very positive .

Paul Brink: What has been put forward in RIGI is very positive. It addresses the two big issues you have. The one is currency convertibility that does get guaranteed if you enter into the RIGI program. The second thing is to make sure that it has teeth that survives through multiple regimes. You do need rights to international arbitration, and RIGI does afford that too. Both those things go a long way to making Argentina an attractive destination.

Speaker #5: It addresses the two big issues you have. The first is currency stability, which does get guaranteed if you enter into the Rai program.

Speaker #5: And then the second thing is to make sure that it has teeth that survives through multiple regimes . You do need rights to international arbitration , and Rai does afford that .

Speaker #5: Too . So both those things go a long way to to making Argentina and attractive destination .

Speaker #6: And Derek , just in terms of the 2029 guidance for those two assets , you know , obviously they still have to be built .

Sandip Rana: Derick, just in terms of the 2029 guidance for those two assets, you know, obviously, they still have to be built. We're conservative in our estimates, but on a combined basis, it's about 5,000 GEOs.

Speaker #6: So we were conservative in our estimates . But it on a combined basis , it's about 5000 geos .

Speaker #16: Great . Thank you .

Derick Ma: Great. Thank you.

Speaker #3: Thank you. There are no further questions on the phone line. I will now turn the conference over to Candida Hayden for any closing remarks.

Operator: Thank you. There are no further questions on the phone line. I will now turn the conference over to Candida Hayden for any closing remarks.

Speaker #4: This concludes our third quarter 2025 results . Conference call . We expect to release our year end 2025 results after market close on March 10th .

Candida Hayden: This concludes our Q3 2025 results conference call. We'll expect to release our year-end 2025 results after market close on 10 March. Thank you for your interest in Franco-Nevada. Goodbye.

Speaker #4: Thank you for your interest in Franco-Nevada. Goodbye.

Operator: And this concludes today's call. Thank you for participating. You may all disconnect.