Q2 2026 Franco-Nevada Corp Earnings Call

August 12, 2026

Operator: Good morning, and welcome to Franco-Nevada Corporation's Q2 2026 results conference call and webcast. This call is being recorded on 12 August 2026. At this time, all lines and listen now removed. Following the presentation, we will conduct a Q&A session where you may ask a question through the phone line or webcast. If you are joining by webcast, you may submit written questions for the Q&A session any time during this call by typing your question in the Q&A section of the webcast platform. If you require any assistance during this call, please press star zero anytime for the operator. I would now like to turn the conference over to your host, Bonavie Tek, VP Finance Investor Relations. Please go ahead.

Speaker #1: Good morning, and welcome to Franco-Nevada Corporation's second quarter 2026 results conference call and webcast. This call is being recorded on August 12, 2026.

Speaker #1: At this time, our learning and lessons are now remote. Following the presentation, we will conduct a Q&A session where you may ask a question through the phone line or webcast.

Speaker #1: If you are joining by webcast, you may submit a written question for the Q&A session at any time during this call by typing your question in the Q&A section of the webcast platform.

Speaker #1: If you require immediate assistance during this call, please press star zero at any time for the operator. I would now like to conference over to your host, Bhanavi Tech, VP, Finance and Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Ernest. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's second quarter 2026 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results.

Bonavie Tek: Thank you, Anis. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's Q2 2026 results. Accompanying this call is a presentation which is available on our website at franco-nevada.com, where you will also find our full financial results. The presentation is also available to view on the webcast. During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q&A period. Our executive team is available to answer any questions. Participants may submit questions by telephone or via the webcast. We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on slide 2 of this presentation.

Speaker #2: The presentation is also available to view on the webcast. During our call this morning, Paul Brink, president and CEO of FRANCO NEVADA, will provide introductory remarks, followed by Sandeep Rana, Chief Financial Officer, who will provide a brief review of our results.

Speaker #2: This will be followed by a Q&A period. Our executive team is available to answer any questions. Participants may submit questions by telephone or via the webcast.

Speaker #2: 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.

Speaker #2: I will now turn over the call to Paul Brink, president and CEO of FRANCO NEVADA.

Bonavie Tek: I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

Speaker #3: Thank you, Bhanavi, and good morning. We had a strong second quarter, with GEOs sold up 18% year over year, due to higher production at Côté and Tamiya in South Arturo, new contributions from the recently acquired Kote Gold and Casa Berardi interests, and the start of production at Valentine Gold.

Paul Brink: Thank you, Bonavie, and good morning. We had a strong Q2 with GEO sold up 18% year-over-year due to higher production at Antamina and South Arturo, new contributions from the recently acquired Côté Gold and Casa Berardi interests, and start production at Valentine Gold. In addition to record gold prices in the quarter, we saw strong oil prices. With the higher energy contribution and the processing of stockpiles at Cobre Panama, we are tracking towards the upper half of our annual guidance range for 2026. At Cobre Panama, the environmental audit was completed, indicating no major findings and an overall compliance rate by the operation of 87.7%. The government then established a commission of senior ministers to evaluate both the environmental aspects and the economic contribution of a potential mine restart.

Speaker #3: In addition to record gold prices in the quarter, we saw strong oil prices. With the higher energy contribution and the processing of stockpiles at Koper Panama, we're tracking towards the upper half of our annual guidance range for 2026.

Speaker #3: At Koper Panama, the environmental audit was completed, indicating no major findings, and an overall compliance rate by the operation of 87.7%. The government then established a commission of senior ministers to evaluate both the environmental aspects and the economic contribution of a potential mine restart.

Speaker #3: Simply put, in our business, you want to grow through acquisition in a bear market and organically in a bull market. In particular, with our deep royalty portfolio, that organic growth can be very powerful.

Paul Brink: Simply put, in our business, you want to grow through acquisition in the bear market and organically in a bull market. In particular, with our deep royalty portfolio, that organic growth can be very powerful. Q2 is the spring quarter, and we saw green shoots across the portfolio. We received good news on future mine expansions at all of Côté, Detour, Magino, Valentine, Grondalstaad Lake, Caserones, and Séguéla. At Candelaria, we had news of a potential pit pushback, and at Porcupine, we had the Kidd acquisition that may ultimately allow a doubling of output. Guadalupe, Hemlo, Bulyanhulu, and Ormack all announced resource expansions. There was positive progress on mine development at Copper World and Stibnite Gold. Crawford Nickel received its federal approval, and PSJ Cobre Mendocino, previously San Jorge, its Argentinian RIGI approval. Lastly, success at the drill bit.

Speaker #3: Q2 is the spring quarter, and we saw green shoots across the portfolio. We received good news on future mine expansions at all of Cote, Detour, Mingino, Valentine, Conda, Star Lake, Caserones, and Seguela.

Speaker #3: At Candelaria, we had news of a potential pushback. And at Porcupine, we had the KID acquisition that may ultimately allow a doubling of output.

Speaker #3: Guadeloupe, Hemlo, Bullabulling, and Ormac all announced resource expansions. There was positive progress on mine development at Copper World and Stibnite Gold. Crawford Nickel received its federal approval, and PSJ Mendocino, previously San Jorge, received its Argentinian regal approval.

Speaker #3: And lastly, success at the drill bit. Great exploration results in the Porcupine Camp, Borden, Oil Outcreek and others; Midas, where Hecla are considering a restart; Stibnite, where they started drilling again after more than a decade; and at Ormac and Bullabulling, where we have new interests.

Paul Brink: Great exploration results in the Porcupine Camp, Borden, Hoyle, Owl Creek, and others. Midas, where Hecla are considering a restart, Stibnite, where they started drilling again after more than a decade, and at Ormack and Bulyanhulu, where we have new interests. Energy revenue was up on stronger oil prices. While operator capital discipline prevails, there has been a pickup in US oil rig rates, 450 rigs now up from 420 three months ago in the lower 48. Also, reinvestment rates amongst the US producers are moving up 55% now on average versus 51% earlier in the year, both of which bode well for higher future production rates. The leverage on the API at our Weyburn interest in Canada gave a nice boost to our Canadian energy segment. On the sustainability front, we continue to expand our engagement with and contributions to communities at mine sites.

Speaker #3: Energy revenue was up on stronger oil prices. While operator capital discipline prevails, there has been a pickup in U.S. oil rig rates—450 rigs now, up from 420 three months ago, in the Lower 48.

Speaker #3: Also reinvestment rates amongst the US producers are moving up, 55% now on average versus 51% earlier in the year. Both of which bode well for higher future production rates.

Speaker #3: The leverage on the NBI at our wayburn interest in Canada gave a nice boost to our Canadian energy segment. On the sustainability front, we continue to expand our engagement with and contributions to communities at mine sites.

Paul Brink: Franco-Nevada was recognized as one of Corporate Knights' best 50 corporate citizens in Canada for 2026 and achieved an A rating from CDP. We are in the progress of evaluating candidates for our expanded scholarship program and are delighted with a bumper crop of excellent applicants this year. Ian and the business development team have a strong pipeline of opportunities. Fortunately, our total available capital stands at $4.3 billion, so we are well-positioned to add attractive new assets to the portfolio. With that, I will hand the call over to Sandy.

Speaker #3: FRANCO NEVADA was recognized as one of Corporate Night's best 100 or best 50 corporate citizens in Canada for 2026 and achieved an A rating from CDP.

Speaker #3: We're in the process of evaluating candidates for our expanded scholarship program and are delighted with a bumper crop of excellent applicants this year. Yen and the business development team have a strong pipeline of opportunities.

Speaker #3: Unfortunately, our total available capital stands at 4.3 billion. So we're well positioned to add attractive new assets to the portfolio. With that, I'll hand the call over to Sandeep.

Speaker #1: Thanks, Paul. Good morning, everyone. Franco-Nevada reported another quarter of solid financial results as our portfolio of royalty and stream assets continued to perform well and in line with our expectations.

Sandip Rana: Thanks, Paul. Good morning, everyone. Franco-Nevada reported another quarter of solid financial results as our portfolio of royalty and stream assets continued to perform well and in line with our expectations. The performance during the quarter continues the very strong start to the year, with record financial results achieved for revenue, adjusted EBITDA, adjusted net income, and operating cash flow for the first 6 months of 2026. On slide 4, you will see a summary of commodity prices for Q2 2026 and 2025. Precious metal prices have increased significantly year over year, with the average gold price higher by 38% and silver by 118% in the quarter. However, both gold and silver prices have retreated from the highs reached during Q1. For the diversified commodities, with the continued conflict in the Middle East, oil price has seen a sharp increase over prior year.

Speaker #1: The performance during the quarter continues the very strong start to the year, with record financial results achieved for revenue, adjusted EBITDA, adjusted net income, and operating cash flow for the first six months of 2026.

Speaker #1: On slide 4, you will see a summary of commodity prices for the second quarter of 2026 and 2025. Precious metal prices have increased significantly year over year, with the average gold price higher by 38% and silver by 118% in the quarter.

Speaker #1: However, both gold and silver prices have retreated from the highs reached during first quarter. For the diversified commodities, with the continued conflict in the Middle East, oil prices seen a sharp increase over prior year.

Speaker #1: The WTI price has been volatile over the last few months but remains above $80 a barrel. Energy revenues did benefit from the higher price in the quarter, and we expect this to carry through the third quarter.

Sandip Rana: The WTI price has been volatile over the last few months, but remains above $80 a barrel. Energy revenues did benefit from the higher price in the quarter, and we expect this to carry through to Q3. Slide 5 provides an overview of our key financial results. The performance from our assets, combined with stronger commodity prices, resulted in an increase in revenue of 57%, adjusted EBITDA of 45%, and adjusted net income of 46%. Total GEOs sold for the quarter increased by 18% to 132,405, compared to just over 112,000 in Q2 2025. Precious metal GEOs sold in the quarter were 114,111, higher by 23% compared to prior year. 56% of total GEOs sold during the quarter were sourced directly from mines where precious metals are the primary commodity. For the quarter, we received strong contributions from several assets.

Speaker #1: Slide 5 provides an overview of our key financial results. The performance from our assets, combined with stronger commodity prices, resulted in an increase in revenue of 57%, adjusted EBITDA 45%, and adjusted net income of 46%.

Speaker #1: Total geosold for the quarter increased by 18% to 132,405, compared to just over 112,000 in second quarter 2025. Precious metal geosold in the quarter were 114,111, higher by 23% compared to prior year.

Speaker #1: 56% of total geosold during the quarter were sourced directly from mines where precious metals are the primary commodity. For the quarter, we received strong contributions from several assets.

Speaker #1: At Antamina, we benefited from both higher deliveries but also benefited from the higher silver price resulting in an increase in revenue from 23.3 million in Q2 2025 to 57.4 million this quarter.

Sandip Rana: At Antamina, we benefited from both higher deliveries, but also benefited from the higher silver price, resulting in an increase in revenue from $23.3 million in Q2 2025 to $57.4 million this quarter. For Antamina, we benefited from the processing of higher grade ore, which we expect to continue in the H2 2026. At South Arturo, we had a significant increase in GEOs as we benefited from the phase 1 production of the open pit. Please note this strong performance was always weighted towards the H1 of the year. At Candelaria, production at the mine was lower compared to prior year, as last year the mine had the benefit of higher grade ore from Phase 11.

Speaker #1: FRANCO PEKAI we benefited from the processing of higher grade ore, which we expect to continue in the second half of 2026. At South Arturo, we had a significant increase in geos as we benefited from the phase one production of the open pit.

Speaker #1: Please note this strong performance was always weighted towards the first half of the year. At Candelaria, production at the mine was lower compared to prior year, as last year the mine had the benefit of higher grade ore from phase 11.

Sandip Rana: Lundin Mining expects production to be weighted towards the H2 of 2026 due to increased availability of higher grade Phase 12 ore, combined with increased underground mining rates as the underground insourcing initiative nears completion. Diversified GEOs sold were 18,209 for the quarter, compared to 19,644 for prior year, despite diversified revenue being 31% higher at USD 82.2 million. The decrease in GEOs is the result of converting revenue to GEOs at a higher gold price. As you know, we are converting GEOs to using a fixed gold price of USD 4,500 per ounce. With respect to cost, we did have an increase in cost of sales compared to Q2 2025 due to higher fixed costs paid for stream ounces, as a portion of our streams have a fixed cost base on a percentage of the gold price. Cost of sales was USD 45.9 million versus USD 32.5 million last year.

Speaker #1: Lendine Mining expects production to be weighted towards the second half of 2026 due to increased availability of higher grade phase 12 ore, combined with increased underground mining rates as the underground insourcing initiative nears completion.

Speaker #1: Diversified GEOs sold were 18,209 for the quarter, compared to 19,644 for the prior year, despite diversified revenue being 31% higher at $82.2 million. The decrease in GEOs is the result of converting revenue to GEOs at a higher gold price.

Speaker #1: As you know, we are converting geos to using a fixed gold price of 4,500 per ounce. With respect to cost, we did have an increase in cost to sales, compared to Q2 2025, due to higher fixed costs paid for stream ounces as a portion of our streams have a fixed cost base on a percentage of the gold price.

Sandip Rana: As you know, we are converting GEOs to using a fixed gold price of USD 4,500 per ounce. With respect to cost, we did have an increase in cost of sales compared to Q2 2025 due to higher fixed costs paid for stream ounces, as a portion of our streams have a fixed cost base on a percentage of the gold price. Cost of sales was USD 45.9 million versus USD 32.5 million last year.

Speaker #1: Cost of sales was 45.9 million versus 32.5 million last year. Depletion increased 84 million, versus 64 million a year ago, the increase being due to depletion being recorded on some of our recent transactions.

Sandip Rana: Depletion increased to USD 84 million versus USD 64 million a year ago. The increase being due to depletion being recorded on some of our recent transactions, Yanacocha, Casa Berardi, Porcupine, and Côté. These assets are higher per ounce depletion assets. We expect the depletion rate to decrease over time as the reserves on the properties grow. Adjusted net income was USD 349.2 million, or USD 1.81 per share for the quarter, both higher by 46% year over year. Slide 6 highlights the continued diversification of the portfolio. 86% of our Q2 revenue was generated by precious metals, with revenue being sourced 88% from the Americas, and no one asset generated more than 10% of revenue, as we have one of the most diverse portfolios in the industry. The model continues to be a very high margin business, as shown on slide 7.

Speaker #1: Yanacocha, Casaburrati, Porcupine, and Cote. These assets are higher per ounce depletion assets. We expect the depletion rate to decrease over time, as the reserves on the properties grow.

Speaker #1: And adjusted net income was $349.2 million, or $1.81 per share for the quarter, both higher by 46% year over year. Slide 6 highlights the continued diversification of the portfolio. Eighty-six percent of our second quarter revenue was generated by precious metals.

Speaker #1: With revenue being sourced 88% from the Americas, and no one asset generated more than 10% of revenue as we have one of the most diverse portfolios in the industry.

Speaker #1: The model continues to be a very high margin business, as shown on slide 7. The margin per geo is increased from 1,559 per geo in 2022 to 4,352 per geo in 2026, a 179% increase while during this time the gold price has increased 160%.

Sandip Rana: The margin per GEO has increased from USD 1,559 per GEO in 2022 to USD 4,352 per GEO in 2026, a 179% increase, while during this time the gold price has increased 160%. As we turn to dividends on slide 8, the company continues to pay a quarterly dividend, with USD 84 million being paid to shareholders during the quarter. With respect to our guidance summarized on slide 9, we have guided to 510,000 to 570,000 total GEOs sold for the full year 2026. With the strong performance of our portfolio for the first 6 months of 2026, with approximately 269,000 GEOs sold and an expected stronger H2 of the year, we are tracking towards the upper half of the annual guidance range. We expect stronger H2 performance from several assets, including Candelaria, Tocantinzinho, Côté, and Valentine.

Speaker #1: As we turn to dividends on slide 8, the company continues to pay a quarterly dividend with 84 million being paid to shareholders during the quarter.

Speaker #1: With respect to our guidance summarized on slide 9, we are guiding to 510,000 to 570,000 total GEOs sold for the full year 2026. With the strong performance of our portfolio for the first six months of '26, with approximately 269,000 GEOs sold, and an expected stronger second half of the year, we are tracking towards the upper half of the annual guidance range.

Speaker #1: We expect stronger second-half performance from several assets, including Candelaria, Toquepala, Zinnia, Côté, and Valentine. We expect to receive between 9,000 and 10,000 GEOs from Cobre Panama, as First Quantum has begun processing stockpile ore.

Sandip Rana: We expect to receive between 9,000 and 10,000 GEOs from Cobre Panama, as First Quantum has begun processing stockpile ore. With the continued strong oil price, we expect energy revenue to remain strong in the H2 of the year. Lastly, slide 10 highlights our available capital. As at 30 June 2026, the total available capital is USD 4.3 billion, comprised of USD 1 billion in cash, USD 2.25 billion of a credit facility, including the accordions, and USD 1.2 billion in liquid marketable securities. The company continues to remain debt-free and is well capitalized to continue to add good quality assets to the portfolio. With that, I will pass it over to Anis as management is happy to answer any questions.

Speaker #1: And with the continued strong oil price, we expect energy revenue to remain strong in the second half of the year. And lastly, slide 10 highlights our available capital.

Speaker #1: As at June 30, 2026, the total available capital is 4.3 billion, comprised of 1 billion in cash, 2.25 billion of a credit facility including the accordions, and 1.2 billion in liquid marketable securities, the company continues to remain debt-free and is well capitalized to continue to add good quality assets to the portfolio.

Speaker #1: With that, I will pass it over to Ennis, as management is happy to answer any questions.

Speaker #2: Of course, Sandy. During this Q&A session, if you'd like to ask a question, simply press 'star' and the number one on your telephone keypad.

Operator: Of course, Sandeep. 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 followed by two. If you are joining us on the webcast, please submit your questions through the Q&A section of the webcast platform. One moment please for your first question. Your first question comes from Cosmos Chiu with CIBC. Please go ahead.

Speaker #2: If you'd like to order your question, please press Start followed by 2. If you're joining us on the webcast, please submit your question through the Q&A section of the webcast platform.

Speaker #2: One moment, please, for your first question. Your first question comes from Cosma Chiu, with CIBC. Please go ahead.

Speaker #3: Thanks. Paul and Sandy, for taking my questions. Maybe my first questions on the NPIs. I noticed that Hemlow was down quarter over quarter. Whereas the Muscle White NPI was up quarter over quarter.

Cosmos Chiu: Thanks, Paul and Sandeep, for taking my questions. Maybe my first question is on the NPIs. I noticed that Hemlo was down quarter-over-quarter, whereas the Musselwhite NPI was up quarter-over-quarter. But I guess it is always volatile in terms of these NPIs, but how should we look at it based on what we know in Q1 and Q2, on what we should expect in Q3 and Q4?

Speaker #3: I guess it is always volatile in terms of these NPIs, but how should we look at it based on what we know in Q1 and Q2, and what should we expect in Q3 and Q4?

Sandip Rana: Sure. Hi, Cosmos. Thanks for the questions.

Speaker #1: Sure. Hi, Cosmos. Thanks for the questions.

Speaker #3: Hi, Sandy.

Cosmos Chiu: Hi, Sandeep.

Speaker #1: Hey, you said it correctly. They are volatile, and for us, a lot of it is based on visibility. At Hemlow, in Q2, Hemlow Mining produced less on our interlaced land than previous quarters, which impacted the NPI.

Sandip Rana: Hey, you said it correctly. They are volatile and for us, a lot of it is based on visibility. At Hemlo, in Q2, Hemlo Mining produced less on our Interlake lands than previous quarters, which impacted the NPI. I think for the H2 of the year, from what we gather, production should increase. Does it hit what was achieved in Q1? I do not know, but it should be higher than Q2. I would expect a slightly higher NPI for the H2 of the year from Hemlo. Obviously, that is all contingent upon commodity prices as well. At Musselwhite, we did have strong performance in Q2. A large component of that was a catch-up entry for 2025. For Musselwhite, we have limited visibility and there is a finalization of the NPI calculation that happens in the following year.

Speaker #1: I think for the second half of the year, from what we gathered, production should increase. Does it hit what was achieved in Q1? I don't know, but it should be higher than Q2.

Speaker #1: So I would expect a slightly higher NPI for the second half of the year from Hemlow. Obviously, that's all contingent upon commodity prices as well.

Speaker #1: At Muscle White, we did have strong performance in Q2. A large component of that was a catch-up entry for 2025. For Muscle White, we have limited visibility, and then there's a finalization of the NPI calculation that happens in the following year.

Speaker #1: So, in Q2 is when we got that final number, and we recorded that. But considering where commodity prices are right now, I would expect a very strong NPI for Muscle White for 2026.

Sandip Rana: In Q2 is when we got that final number and we recorded that. But considering where commodity prices are right now, I would expect a very strong NPI for Musselwhite for 2026.

Cosmos Chiu: Great. Maybe diving a little bit deeper into Hemlo. Last night, I guess they reported earnings and they are deferring formal guidance, production guidance from sometime in 2026 into 2027. From where you are standing, there is a lot of moving pieces, it is based on actual production from the asset, but also the Interlake component. Any concerns in terms of that deferral of guidance? It seems like things are kind of ramping up potentially slower than expected.

Speaker #3: Great. And maybe diving a little bit deeper into Hemlow, last night, I guess they reported earnings and their deferring formal guidance, production guidance from sometime in 2026 into 2027.

Speaker #3: From where you're standing, there are a lot of moving pieces. It's based on actual production from the asset, but also the interlaced components. Are there any concerns in terms of that deferral of guidance?

Speaker #3: It seems like things are kind of ramping up, potentially slower than expected.

Speaker #1: Yeah, I think Hemlow is doing the team's doing a very good job there. They just took over the asset last year. From our perspective, we're pretty confident that mining on interlace will continue.

Sandip Rana: I think Hemlo is doing, the team is doing a very good job there. They just took over the asset last year. From our perspective, we are pretty confident that mining on Interlake will continue for the next number of years. Obviously, it will be volatile just depending upon how development is going, but we are pretty confident that the NPI will be there for the foreseeable future.

Speaker #1: For the next number of years, obviously, it will be volatile, just depending upon how development is going, but we're pretty confident that the NPI will be there for the foreseeable future.

Cosmos Chiu: Great. Maybe switching gears a little bit to Guadalupe on Palmarejo. As you mentioned in your prepared remarks, it continues to be one of the larger contributors of GEOs. My question is, when we talk to Coeur Mining, the management team continues to remind us that exploration continues beyond the Franco-Nevada area of influence. From that perspective, how should we look at it? Is there any kind of near-term concerns to Franco-Nevada?

Speaker #3: Great. And maybe switching gears a little bit to Guadalupe and Palmarejo. As you mentioned in your prepared remarks, it continues to be one of the larger contributors of GEOs.

Speaker #3: But I guess my question is, when we talk to current mining and the management team continues to remind us that exploration continues beyond the Franco Nevada area of influence, I guess from that perspective, how should we look at it?

Speaker #3: Are there any near-term concerns for Franco-Nevada?

Sandip Rana: They have had very good exploration results, both on stream ground and off stream ground, on our ground, specifically Hidalgo. Based upon what we have seen, production on our land will continue for the foreseeable future. A large portion of their production is still on Franco stream ground. Obviously, they are trying to find additional resources on adjacent lands where the stream doesn't apply. But right now we don't have any concern.

Speaker #1: All right. They've had very good exploration results, both on-stream ground and off-stream ground. On our ground specifically, Hidalgo, based upon what we've seen, production on our land will continue for the foreseeable future.

Speaker #1: A large portion of their production is still on Franco stream ground. Obviously, they are trying to find additional resources on adjacent lands where the stream doesn't apply.

Speaker #1: But right now, we don't have any concerns.

Cosmos Chiu: Great. Then maybe one last question, tracking your margins here. Sandeep, you did a good job in terms of looking at the margin expansion. Another way I looked at it was the adjusted EBITDA margin. I noticed that it has increased 87.6% four quarters ago to 90.6%, 91% now to 91.2%. Again, the adjusted EBITDA margin. Is that just a function of, I guess, the increase in commodity prices, coupled with not as much of an increase or no increase at all to cost? Is that a percentage that you track yourself? Are you happy with the 91.2% right now?

Speaker #3: Great. And then maybe one last question. Tracking your margins here, and Sandy, we did a good job in terms of looking at the margin expansion.

Speaker #3: Another way I looked at it was the adjusted EBITDA margin. I noticed that it's increased 87.6 four quarters ago to 90.6. 91 now to 91.2%.

Speaker #3: Again, the adjusted EBITDA margin—is that just a function of, I guess, the increase in commodity prices, coupled with not as much of an increase, or no increase at all, to cost?

Speaker #3: And is that a percentage that you track yourself, that you're happy with a 91.2% right now?

Speaker #1: Yeah, no, we are a very high-margin business. Obviously, it's composed of a number of factors. One is how much of our GEOs and revenue and EBITDA is being generated by streams.

Sandip Rana: Yeah, no, we are a very high margin business. Obviously, it is composed of a number of factors. One is how much of our GEOs and revenue and adjusted EBITDA is being generated by streams. It just so happens right now in the recent deals we have done have been more royalty deals, and they are obviously limited or if no cost associated with those. So it is just the leverage of the portfolio overall.

Speaker #1: It just so happens right now, in our recent deals we've done, that they've been more royalty deals. And they're obviously limited or have no cost associated with those.

Speaker #1: So, it's just the leverage of the portfolio overall.

Cosmos Chiu: Great. Those are all the questions I have. Thanks again, Sandeep and Paul, for answering all my questions.

Speaker #3: Great. Those are all the questions I have. Thanks again, Sandy, Ben, Paul, for answering all my questions.

Speaker #2: Thank you. Your next question comes from Lawson Winder with Bank of America Securities. Please go ahead.

Operator: Thank you. Your next question comes from Lawson Winder with BofA Securities. Please go ahead.

Speaker #1: Thank you, operator. Good morning, Paul and Sandy. Thank you for today's update. Kai, let's start with the 2026 guidance and your expectation to be in the top half of the range.

Lawson Winder: Thank you, operator. Good morning, Paul and Sandeep. Thank you for today's update. Can I start with the 2026 guidance and your expectation to be in the top half of the range, and that includes Cobre Panama, potentially stronger oil prices? Look, if you just take the midpoint of the GEO volume guidance range of 540 and then add Cobre Panama, which is about 27.5 GEOs, and then you assume higher oil prices, I think you could comfortably get above the range. It would suggest that you're tracking to above the range. Or, it might also suggest that ex Cobre Panama and higher oil prices, the portfolio is tracking to perhaps well below the midpoint. Could you maybe just clear up what would be the right way to think about that?

Speaker #1: And that includes corporate Panama, potentially stronger oil prices. If you just take the midpoint of the GEO volume guidance range of 540 and then add corporate Panama, which is about 27.5 GEOs, from and then you assume higher oil prices.

Speaker #1: I think you could comfortably get above the range, so it would suggest that you're tracking above the range. Or, I mean, it might also suggest that ex-corporate Panama and higher oil prices, the portfolio is tracking to perhaps well below the midpoint.

Speaker #1: Could you maybe just clear up what would be the right way to think about that?

Sandip Rana: That's a good question, Lawson. For us, obviously, we've looked at our numbers. As you said, the midpoint was 540 of our guidance range. Cobre is 9 to 10. Energy prices will add some additional GEOs, assuming oil prices stay where they are. But then we are expecting stronger performance from Candelaria, Côté, Valentine, a few others. We're expecting weaker performance from the South Arturo, which was more focused on the H1 of the year. As we've said, it's going to be tracking at the higher end of the overall range. We're still in the middle of the year. There is the possibility that you could surpass the range, but a lot of things have to happen for that to occur. So right now, we're comfortable with just providing that guidance range.

Speaker #3: Yeah, it's a good question, Lawson. So for us, obviously, we've looked at our numbers. As you said, the midpoint was 540 of our guidance range.

Speaker #3: Yeah, corporate is 9 to 10. Energy prices will add some additional GEOs, assuming oil prices stay where they are. And then we are expecting stronger performance from Candelaria, Côté, Valentine, and a few others.

Speaker #3: We're expecting weaker performance from the South Etoro, which was more focused on the first half of the year. So as we've said, it's going to be tracking at the higher end of the overall range.

Speaker #3: We're still in the middle of the year. There is the possibility that you could surpass the range, but a lot of things have to happen for that to occur.

Speaker #3: So, right now, we're comfortable with just providing that guidance range.

Operator: Lawson, do you have any follow-up?

Speaker #2: Lawson, do you have any follow-up?

Speaker #1: Yeah, thank you very much for that color. You spoke in the release also about the pipeline and you noted a relatively robust pipeline. Yet, I mean, a number of the transactions you did in the core while they were relatively numerous were relatively small.

Lawson Winder: Yeah. Thank you very much for that color. You spoke in the release also about the pipeline, and you noted a relatively robust pipeline. Yet, a number of the transactions you did in the quarter, while they were relatively numerous, were relatively small. Total value in the $84 million including around $84 million, including the July transactions. Could you just speak to what you're seeing in the pipeline in terms of substantially large transactions, particularly in light of $4.3 billion? The other side of the question would be, if you're not seeing really substantial meaty deals in the pipeline, if it's a lot more of these smaller transactions like you guys completed in Q2 and in Q3 to date, is there a thought to perhaps considering a special dividend?

Speaker #1: I mean, the total value is in the $84 million.

Speaker #3: Included around 84 million dollars, including the July transaction. Could you just speak to what you're seeing in the pipeline in terms of substantially large transactions?

Speaker #3: Particularly in light of $4.3 billion. And then, I mean, the other side of the question would be, I mean, if you're not seeing really substantial, meaty deals in the pipeline—if it's a lot more of these smaller transactions like you guys completed in Q2 and Q3 to date—is there a thought to perhaps considering a special dividend?

Speaker #1: Hi, Lawson. It's Ian speaking here. Thank you for the question—it's a good question. What I would say is that we're active across a range of development phases and deal sizes.

[Company Representative] (Franco-Nevada): Hi, Lawson, it's Ian speaking here. Thank you for the question. It's a good question. What I would say is we're active across a range of development phases and deal sizes. You're right that during the quarter, the size did step down from the cadence and magnitude that you had seen in prior quarters. I don't think that's reflective of the pipeline going forward necessarily, though. What I do see at the moment is a number of opportunities in project finance, which suits our financial backer strategy well. So we're hopeful that with time, we'll see more of those types of transactions come forward.

Eaun Gray: Hi, Lawson, it's Ian speaking here. Thank you for the question. It's a good question. What I would say is we're active across a range of development phases and deal sizes. You're right that during the quarter, the size did step down from the cadence and magnitude that you had seen in prior quarters. I don't think that's reflective of the pipeline going forward necessarily, though. What I do see at the moment is a number of opportunities in project finance, which suits our financial backer strategy well. So we're hopeful that with time, we'll see more of those types of transactions come forward.

Speaker #1: You're right that during the quarter, the size did step down from the cadence and magnitude that you had seen in prior quarters. I don't think that's reflective of the pipeline going forward, necessarily, though.

Speaker #1: What I do see at the moment is a number of opportunities in project finance, which suits our financial backer strategy well. So we're hopeful that with time, we'll see more of those types of transactions come forward.

Speaker #1: And in terms of overall liquidity, looking at the magnitude of the pipeline, I do feel comfortable at this stage that we're going to be able to deploy quite a bit of our capital before we have to think about any other ways to return it.

[Company Representative] (Franco-Nevada): In terms of overall liquidity, looking at the magnitude of the pipeline, I do feel comfortable at this stage that we're going to be able to deploy quite a bit of our capital before we have to think about any other ways to return it.

Eaun Gray: In terms of overall liquidity, looking at the magnitude of the pipeline, I do feel comfortable at this stage that we're going to be able to deploy quite a bit of our capital before we have to think about any other ways to return it.

Lawson Winder: Okay. Then just so thinking about some of the larger transactions that you might have in the portfolio, can you help sort of narrow that down to a bit of a size range? Are we talking like USD 100 million size range, or are there potential billion-dollar transactions in the pipeline?

Speaker #3: Okay. And then just so thinking about some of the larger transactions that you might have in the portfolio, could you help sort of narrow that down to a bit of a size range?

Speaker #3: Are we talking like 100 million size range or are there potential billion-dollar transactions in the pipeline?

[Company Representative] (Franco-Nevada): It's a wide range. As I highlighted, there are some significantly larger transactions which are required to deploy the kind of capital that we've accumulated. So, I think what you've seen over the last couple of years in terms of transactions is reflective of kind of the potential we see in the pipeline going forward. So, we were successful deploying in the past, and I believe we'll be successful going forward.

Eaun Gray: It's a wide range. As I highlighted, there are some significantly larger transactions which are required to deploy the kind of capital that we've accumulated. So, I think what you've seen over the last couple of years in terms of transactions is reflective of kind of the potential we see in the pipeline going forward. So, we were successful deploying in the past, and I believe we'll be successful going forward.

Speaker #1: It's a wide range. As I highlighted, there are some significantly larger transactions, which are required to deploy the kind of capital that we've accumulated.

Speaker #1: So I think what you've seen over the last couple of years in terms of transactions is reflective of kind of the potential we see in the pipeline going forward.

Speaker #1: So we were successful deploying in the past, and I believe we'll be successful going forward.

Lawson Winder: Then maybe just one final follow-up on the pipeline. To what extent would you describe the current pipeline as urgent, or how would you describe the urgency of the deals within the pipeline? Is this stuff you could see completed in Q3, or are we looking at sort of a longer timeline, maybe looking out 12 to 18 months?

Speaker #3: And then maybe just one final follow-up on the pipeline. To what extent would you describe the current pipeline as urgent, or how would you describe the urgency of the deals within the pipeline?

Speaker #3: Is this stuff you could see completed in Q3 or are we looking at sort of a longer timeline, maybe looking out 12 to 18 months?

[Company Representative] (Franco-Nevada): Sure. That's a good observation. What I would say is the larger transactions tend to be a little bit lumpier. The timeline can be longer for those. So hard to kind of handicap exactly when deals are going to close. But I'd see the cadence perhaps, just based on what I'm seeing now, picking up later in the year and into next year.

Eaun Gray: Sure. That's a good observation. What I would say is the larger transactions tend to be a little bit lumpier. The timeline can be longer for those. So hard to kind of handicap exactly when deals are going to close. But I'd see the cadence perhaps, just based on what I'm seeing now, picking up later in the year and into next year.

Speaker #1: Sure. That's a good observation. What I would say is the larger transactions tend to be a little bit lumpier in the timeline and can take longer for those.

Speaker #1: It's hard to kind of handicap exactly when deals are going to close, but I'd see the cadence, perhaps just based on what I'm seeing now, picking up later in the year and into next year.

Lawson Winder: Okay. Thanks so much. Appreciate it.

Speaker #3: Okay, thanks so much. Appreciate it, Ian. Appreciate it, Paul and Sandy. Thanks.

Lawson Winder: Yeah.

Eaun Gray: Yeah.

Lawson Winder: Appreciate it, Paul and Sandeep. Thanks.

Paul Brink: Thank you.

Eaun Gray: Thank you.

Speaker #1: Thank you.

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

Speaker #2: Thank you. Your next question comes from Daniel Major with UBS. Please go ahead.

Daniel Major: Hi. Yeah, thanks for the presentation. Thanks for the questions. Yeah, first question on Cobre Panama. My understanding is First Quantum has started or is imminently starting negotiations with the government on the fiscal terms to facilitate a restart. Have you had any engagement with the Panamanian government? Has there been any discussions around any potential changes to the economics of the stream?

Speaker #4: Hi. Yeah, thanks for the presentation. Thanks for the questions. Yeah, first question on just on corporate Panama. My understanding is first quantum is sort of started or is imminently starting negotiations.

Speaker #4: With the government on the fiscal terms to facilitate a restart. Have you had any engagement with the Panamanian government? Has there been any discussions around any potential changes to the economics of the stream?

Paul Brink: Daniel, it's Paul. No. First Quantum is the operator there. So they're the party that will engage with the government here. As you know, no formal negotiations yet, but we're not at that table.

Speaker #3: Daniel, it's Paul. No, yeah, first quantum is the operator there. So they're the party that will engage with the government here. As you know, no formal negotiations yet.

Speaker #3: But we're not at that table.

Daniel Major: Okay. So there's no discussion at this point of any potential changes to the fiscal terms as part of any negotiation or any settlement to start the mine?

Speaker #4: Okay. So there's no discussion at this point of any potential changes to the fiscal terms as part of any negotiation or any settlement to start the mine?

Paul Brink: No, there isn't.

Speaker #3: No, there isn't.

Daniel Major: Okay. Thank you. That is clear. Second question is on the energy diversified portfolio. You obviously highlighted the benefit from higher revenues and made a reference to the increase in the rig count in the US. Would you also expect to see any pickup in sales volumes, not on a GEO basis, but on a unit basis in the H2 and potentially following through into 2027?

Speaker #4: Okay. Thank you. That's clear. A second question is on the energy diversified portfolio. You obviously highlighted the benefit from higher revenues and made a reference to the increase in the rig count in the US.

Speaker #4: Would you also expect to see any pickup in sales volumes on a not on a GEO basis, but on a unit basis into second half and potentially following through into 2027?

Paul Brink: I am hopeful that they will be. In my own estimation, for the US plays, you need at least 6 months for people to change their drill programs. So Q2 is still too early. If you go 6 months ahead of that, your oil prices were probably still in the $60 ranges. So I only expect back end of this year, as you say, beginning of next year, that you will see those higher drill rates translating into production. I am hopeful that we will see higher unit volumes as a result.

Speaker #3: I'm hopeful that they will be. In my own estimation for the US plays, you'd need at least six months for people to change their drill programs.

Speaker #3: So Q2 is still too early. If you go six months ahead of that, your oil prices were probably still in the $60 ranges. So I only expect the back end of this year as you say, beginning of next year, that you'll see those the higher drill rates translating into production.

Speaker #3: I am hopeful that we'll see higher unit volumes as a result.

Daniel Major: Okay, so there is a potential tailwind independent of energy pricing into 2027 from a GEO basis?

Speaker #4: Okay. So there's a potential tailwind independent of energy pricing into 2027 from a GEO basis?

Paul Brink: Yes.

Speaker #3: Yes.

Daniel Major: Okay, thanks. The next one, just thinking about the question on the project pipeline. New Prosperity has been something you have mentioned on previous calls. Can you give us an update on the catalysts we should be looking for there?

Speaker #4: Okay, thanks. And then the next one, just thinking about the question on the project pipeline—New Prosperity has been something you've mentioned on previous calls.

Speaker #4: Can you give us an update on the catalysts we should be looking for there?

Paul Brink: Yeah, as we've spoken before, the arrangement that was set up, I think it's about a year ago now, between the operator there and First Nations, was that there's potential that if the First Nations decides to go ahead with the mining operation, that they would have 20% ownership of that. So there is a land use planning process that is going on amongst the First Nations. There's no timeline to that. It's at their determination. But they and the BC government are working on that. So I'm hopeful it'll come to a positive conclusion. Can't put a timeline on it. So I think that is the outlook.

Speaker #3: Yeah. As we've spoken before, the arrangement that was set up, I think it's about a year ago now, between the operator there and the First Nations, was that there's potential that if the First Nations decides to go ahead with the mining operation, that they would be 20% they would have 20% ownership of that.

Speaker #3: So, there is a land use planning process that is going on among the First Nations. There's no timeline for that—it's their determination. But they and the BC government are working on it.

Speaker #3: So I'm hopeful it'll come to a positive conclusion. Can't put a timeline on it. So I think that is the outlook.

Daniel Major: Okay. Great. Thank you. And one just very last quick one, if I may. I think Lundin mentioned the step-down in the Candelaria stream around the end of this year. What quarter, or can you give us any sort of clear guidance on when you expect that to come through?

Speaker #4: Okay, great. Thank you. And just one very last quick one, if I may. I think Lindene mentioned the step-down in the Candle Area stream around the end of this year.

Speaker #4: What quarter or can you give us any sort of clear guidance on when you expect that to come through?

Sandip Rana: Our estimate is H1 2027. Obviously, depending upon how production goes at Candelaria for the remainder of 2026, it could happen later this year. But for now, we're estimating H1 2027.

Speaker #3: So our estimate is early in the first half of 2027. Obviously, depending upon how production goes at Candelaria for the remainder of '26, it could happen later this year, but for now, we're estimating first half of 2027.

Daniel Major: Okay. Great. Thanks a lot.

Speaker #4: Okay. Great. Thanks a lot.

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

Speaker #2: Thank you. Your next question comes from Tanya Jacobek with Scotiabank. Please go ahead.

Tanya Jakusconek: Oh, great. Good morning, everybody. Thank you for taking my questions. Sandeep, can I start on just the revenue side? I was a bit light on the oil and gas, on the energy side. I am just wondering on the energy side, was there a little bit of a delay in sort of the pricing of oil and sort of when you received your revenue that shifted it into Q3? I am just wondering why I was a bit light. Sorry, I was a bit heavy on my side on the oil side.

Speaker #5: Oh, great. Good morning, everybody. Thank you for taking my questions. Sandy, can I start on just the revenue side? I was a bit light on the oil and gas.

Speaker #5: On the energy side. So I'm just wondering on the energy side, was there a little bit of a delay in sort of the pricing of oil and sort of when you received your revenue that shifted it into Q3?

Speaker #5: I'm just wondering why I was a bit light—sorry, I was a bit heavy on my side on the oil side.

Sandip Rana: Sure, Tanya. So part of that is just information in terms of production. There is a delay in receiving actual production data for the wells that is on our land. We do make an estimate, but in our nature, we do try to make sure that we are as accurate as possible. We will not lean more towards the conservative side. So, wells that we are producing and the production data for, say, May and June, we do not get the actual numbers till a few months later. So that is probably partly the reason why you were light.

Speaker #3: Sure, sure, Tanya. So part of that is just information in terms of production. There's a delay in receiving actual production data for the wells that are on our land.

Speaker #3: And so we do make an estimate, but in our nature, we do try to make sure that we're as accurate as possible. We'll lean more towards the conservative side.

Speaker #3: So wells that were producing in the production data for, say, May and June, we don't get the actual numbers till a few months later.

Speaker #3: So that's probably partly the reason why you were light. Or sorry, too high.

Tanya Jakusconek: Okay.

Sandip Rana: Or sorry, too high.

Tanya Jakusconek: Yeah, too high. The other area I was a bit too high on was also iron ore. Just wondering on the Vale side, how should I be thinking about the H2? On Sudbury, on the PGM, how should I be thinking about that?

Speaker #5: Yeah, too high. And then the other area I was a bit too high on was also iron ore. So I was just wondering, on Vale's side, how should I be thinking about the second half?

Speaker #5: And then on Sudbury, on the PGMs, how should I be thinking about that?

Matt Baver: Sure. Hi, Tanya. It's Matt Baver here. On the iron ore, I think that is impacted in part by our estimate on the shipping rates, is probably the largest variance there. I know that is also an accrual where we'll get the true up later into September. But probably the largest variance there is our estimation to the read-through of the higher shipping rates caused by the Strait of Hormuz closure.

Matt Begeman: Sure. Hi, Tanya. It's Matt Baver here. On the iron ore, I think that is impacted in part by our estimate on the shipping rates, is probably the largest variance there. I know that is also an accrual where we'll get the true up later into September. But probably the largest variance there is our estimation to the read-through of the higher shipping rates caused by the Strait of Hormuz closure.

Speaker #3: Sure, Tanya. It's Matt Babing here. On the iron ore, I think that is impacted in part by our estimate on the shipping rates is probably the largest variance there.

Speaker #3: I know that is also an accrual where we'll get the true up later in the September. But probably the largest variance there is our estimation to read through of the higher shipper rates caused by the straight and forward moves closure.

Tanya Jakusconek: Okay. Should I be thinking that we have a better H2, or how should I be thinking about that?

Speaker #5: Okay. Should I be thinking that we have a better second half, or how should I be thinking about that?

Matt Baver: Yeah, I think it'd probably be a bit more flat absent the change in the kind of maritime rates.

Matt Begeman: Yeah, I think it'd probably be a bit more flat absent the change in the kind of maritime rates.

Speaker #3: Yeah, I think you'd probably be a bit more flat, absent the change in the kind of maritime rates.

Tanya Jakusconek: Okay. Anything on the PGMs in Sudbury that had an impact?

Speaker #5: Okay. And anything on the PGMs in Sudbury that had an impact?

Sandip Rana: No, we have the stream there with Magna Mining. They actually did quite well in terms of their production for the H1 of the year. On the PGMs, it's just lower production from Stillwater and the Sabodala assets than initially expected for the first part of this year.

Speaker #3: No, it's—we have the stream there with Magna Mining. They actually did quite well in terms of their production for the first half of the year. On the PGMs, it's just lower production from Stillwater and the Savannah assets.

Speaker #3: Then initially expected for the first part of this year.

Tanya Jakusconek: Okay. Thank you for that. If I could come back just maybe to capital allocation before I come back to just the transaction environment. How should I be thinking, should IAMGOLD decide to purchase back half the Côté Gold NPI, it would be USD 500 million coming in for you guys. Would I be thinking as that as something you would allocate to the dividend if something like that was to occur?

Speaker #5: Okay, thank you for that. And then if I could come back, just maybe to capital allocation, before I come back to the transaction environment.

Speaker #5: Should how should I be thinking? Should IM Gold decide to purchase back half the cote gold NPI? It'd be 500 million coming in for you guys.

Speaker #5: Would I be thinking as that as something you would allocate to the dividend if something like that was to occur?

Sandip Rana: Tanya, if they do the buyback, obviously that would be an influx of cash for us. As the teams highlighted, we are active on the deal pipeline front. We have never been worried about having cash on the balance sheet, as we know this is a very capital-intensive industry and there is always a requirement for financing. If we did come to that conclusion, it would not be any sort of special dividend of that nature. It would just be looking at what is on our balance sheet in terms of cash and increasing the dividend at a higher percentage than we have in possibly previous years.

Speaker #3: Tanya, if they do the buyback, obviously that would be an influx of cash for us. As the team has highlighted, we're active on the deal pipeline front.

Speaker #3: We've never been worried about having cash on the balance sheet, as we know this is a very capital-intensive industry, and there's always a requirement for financing.

Speaker #3: But if we did come to that conclusion, it wouldn't be any sort of special dividend of that nature. It would just be looking at what's on our balance sheet in terms of cash and increasing the dividend at a higher percentage than we have in, possibly, previous years.

Tanya Jakusconek: Okay. All right. Thank you for that. Then maybe just on the deal transaction, Ian, you were saying it is quite varied. Again, I always divide the deals into two categories. There are the precious metals deals, then there are the non-precious metals ones. So maybe you can talk a little bit about in the non-precious metal side. You had talked about deals in the $200 million to $500 million range. Has that changed at all from Q1, or has anything changed in that area?

Speaker #5: Okay. All right. Thank you for that. And then maybe just on the deal transaction, Ian, you were saying it's quite varied. And again, I always divide the deals into two categories as the precious metals deals and then there's the non-precious metals ones.

Speaker #5: So maybe you can talk a little bit about, sort of, in the non-precious metals side. You had talked about value deals in the $200 to $500 million range.

Speaker #5: Has that changed at all from Q1, or is anything changed in that area?

[Company Representative] (Franco-Nevada): Yes, Tanya. Good question. I think that remains unchanged. It continues to be very active on the precious side. I would highlight for you the magnitude of potential transactions does vary, as you have seen in the market. Some can be very large. We like to maintain optionality when we see it at relatively low cost, so we will still do some of the smaller deals when we have got capacity. So pretty much steady as she goes.

Eaun Gray: Yes, Tanya. Good question. I think that remains unchanged. It continues to be very active on the precious side. I would highlight for you the magnitude of potential transactions does vary, as you have seen in the market. Some can be very large. We like to maintain optionality when we see it at relatively low cost, so we will still do some of the smaller deals when we have got capacity. So pretty much steady as she goes.

Speaker #3: Yes, Tanya. Good question. I think that remains unchanged. It continues to be very active on the precious side. I would highlight for you that the magnitude of potential transactions does vary, as you've seen in the market.

Speaker #3: Some can be very large. We like to maintain optionality when we see it at a relatively low cost, and so we'll still do some of the smaller deals when we have got capacity.

Speaker #3: So, pretty much steady as she goes.

Tanya Jakusconek: Okay. But in the non-precious metals, is that $200 million to $500 million still valid?

Speaker #5: Okay, but in the non-precious metals, is that 200 to 500 still valid? Okay, so that's that. And on the precious metal side, we had talked previously about these larger operators in the base metal side looking at streaming off gold and silver, maybe.

[Company Representative] (Franco-Nevada): Yes.

Eaun Gray: Yes.

Tanya Jakusconek: Okay. So that. In the precious metal side, we had talked previously about these larger operators in the base metal side, looking at streaming off gold and silver maybe. We had looked at mine builds. Anything change there from Q1?

Speaker #5: And we had looked at mine builds, anything change there from Q1?

[Company Representative] (Franco-Nevada): Look, I think it is very mainstream. Any CFO now has to look very seriously at streaming and royalties as an option to finance, including at the very large companies. Potential exists there, and we need liquidity to be able to execute on those appropriately. The key theme, however, that I see emerging, Tanya, as I mentioned earlier, is project finance. We are seeing good impetus for new mines to be built and our strategy, as you would have noticed, we have tilted towards backing teams to get projects built, and we are looking to do that big and small.

Eaun Gray: Look, I think it is very mainstream. Any CFO now has to look very seriously at streaming and royalties as an option to finance, including at the very large companies. Potential exists there, and we need liquidity to be able to execute on those appropriately. The key theme, however, that I see emerging, Tanya, as I mentioned earlier, is project finance. We are seeing good impetus for new mines to be built and our strategy, as you would have noticed, we have tilted towards backing teams to get projects built, and we are looking to do that big and small.

Speaker #3: Look, I think it's very mainstream. Any CFO now has to look very seriously at streaming and royalties as an option to finance, including at the very large companies.

Speaker #3: So potential exists there. And we need liquidity to be able to execute on those appropriately. The key theme, however, that I see emerging, Tanya, as I mentioned earlier, is project finance.

Speaker #3: We're seeing good impetus for new mines to be built and our strategy as you would have noticed, we've tilted towards backing teams to get projects built.

Speaker #3: And we're looking to do that big and small.

Tanya Jakusconek: Still the same thing, Ian, in terms of there is a stream component plus an equity component and a debt component. Has anything else changed in the structure of these deals?

Speaker #5: And still the same thing, Ian, in terms of there's a string component plus an equity component and a debt component. Has anything else changed in the structure of these deals?

[Company Representative] (Franco-Nevada): No, I think you precisely got it. What we are trying to do is where there is acute need for capital, provide it. It is smoother, provides the market confidence. The team has got the backing they need to get a project built. We will continue to work across the capital structure with the core, however, continuing to be royalties and streams.

Eaun Gray: No, I think you precisely got it. What we are trying to do is where there is acute need for capital, provide it. It is smoother, provides the market confidence. The team has got the backing they need to get a project built. We will continue to work across the capital structure with the core, however, continuing to be royalties and streams.

Speaker #3: No, I think you precisely got it. What we're trying to do is where there's acute need for capital, provide it, makes it smoother, provides the market confidence that the team's got the backing they need to get a project built.

Speaker #3: And so, we'll continue to work across the capital structure, with the core, however, continuing to be royalties and streams.

Tanya Jakusconek: Well, good luck on that. Thank you so much for taking my questions.

Speaker #5: Okay. Well, good luck on that. Thank you so much for taking my questions.

[Company Representative] (Franco-Nevada): Thank you, Tanya.

Eaun Gray: Thank you, Tanya.

Speaker #3: Thank you, Tanya.

Operator: Thank you. Your next question comes from Brian MacArthur with Raymond James Financial. Please go ahead.

Speaker #2: Thank you. Your next question comes from Brian MacArthur with Raymond James Financial. Please go ahead.

Brian MacArthur: Thank you. Most of my question has been answered, but can I just ask on Karma, whether there is any update? Secondly, if that does not work out, I assume the book value of that is pretty low.

Speaker #4: Thank you most. My question's been answered, but can I just ask on Karma whether there's any update? And secondly, if that doesn't work out, I assume the book value that's pretty low.

Lloyd Hong: Hi, Brian, it is Lloyd Hong here. There is no real update since we put out our press release. We are continuing to pursue our remedies under the agreement, which is governed by Ontario law. We do believe that the Burkinabè judgment is not valid and are continuing to seek to have that vacated. In terms of book value, we are not carrying any book value for that asset.

Speaker #3: Hi, Brian. It's Lloyd. Lloyd Hong here. There's no real update. Since we put out our press release, we are continuing to pursue our remedies under the agreement, which is governed by Ontario law.

Speaker #3: We do believe that the Birkenau Bay judgment is not valid and are continuing to seek to have that vacated. In terms of book value, we have no we are not carrying any book value for that asset.

Brian MacArthur: Thank you. Maybe just one other question. This Lomi deal, is that totally separate from G Mining, and what are you actually trying to do with that, to the extent that you can talk about it? Should I think about you doing more of these things?

Speaker #4: Thank you. And maybe just one other question. This LOMI deal, is that totally separate from G Mining, and what are you actually trying to do with that, to the extent that you can talk about it?

Speaker #4: And should I think about you doing more of these things?

Paul Brink: Brian, it's Paul. As you know, we've got a very strong relationship with the Virginias.

Speaker #3: Brian is tall. As you know, we've got a very strong relationship with the Virginiax back then in the build of Topazinho. The one of their next ventures here is with Tintina.

Brian MacArthur: Yeah.

Paul Brink: Backed them in the build of Tocantinzinho. One of their next ventures here is with Tintina. You would've seen that they have made an investment there. We also were included in that investment. It's a copper-gold property down in Chile. Their objective was that they could invest in that without having to liquidate any of their shares in the G Mining Ventures. So we have backed them in doing that. I am sure they will be very successful, and we're hopeful that there will also be a stream opportunity on that asset in due course.

Speaker #3: You would have seen that they have made an investment there. We also were included in that investment. It's a copper gold property down in Chile.

Speaker #3: Their objective was that they could invest in that without having to liquidate any of their shares in the GMan ventures. So, we have backed them in doing that.

Speaker #3: I'm sure they will be very successful, and we're hopeful that there will also be a streaming opportunity on that asset in due course.

Brian MacArthur: Sorry. So if I can just follow up, that was kind of my question. Do you, by doing this, get a first right of refusal or an option on a stream or a royalty if they go forward? Is that like you're kind of buying, I almost think of it as exploration dollars with a return, and you're getting an option on that. Is that the way to think about it?

Speaker #4: Sorry. So having this follow-up, is that kind of my question. Do you by doing this at a first rate of refusal or an option on a stream or a royalty if they go forward, is that like you're kind of buying, I almost think of it as exploration dollars with a return and you're getting an option off that?

Speaker #4: Is that the way to think about it?

Paul Brink: There is no obligation there, Brian. We have got a very strong relationship, and we hope this helps build the relationship and that positions us well.

Speaker #3: There's no obligation there, Brian. We're just trying to we've got a very strong relationship and we hope this helps build the relationship and that positions us well.

Brian MacArthur: Great. Thanks very much. That is helpful.

Speaker #4: Great, thanks very much. That's helpful.

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

Speaker #2: Thank you. There are no further questions on the phone line. I will now turn to Q&A session over to Banavi, who will take questions from the webcast.

Bonavie Tek: Thank you, Anis. There are no questions from the webcast. This concludes our Q2 2026 conference call and webcast. We expect to release our Q3 2026 results after market close on 10 November, with the conference call held the following morning. Thank you for your interest in Franco-Nevada.

Speaker #5: Thank you, Enis. There are no questions from the webcast. This concludes our second quarter 2026 conference call and webcast. We expect to release our Q3 2026 results after market close on November 10th.

Speaker #5: The conference call held the following morning. Thank you for your interest in Franco NEVADA.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a great day.

Speaker #2: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a great day.