Franco-Nevada

Our History

Franco-Nevada’s roots go back to 1983 when Seymour Schulich and Pierre Lassonde formed the original “Franco-Nevada Mining Corporation Limited” with an initial capitalization of $2 million. They created the first public mining royalty business with the acquisition of the Goldstrike royalty in 1985. It was the leading public mining royalty company until 2002 when it was acquired by Newmont Mining for $2.5 billion.

The original Franco-Nevada team continued to manage royalty assets as part of Newmont Capital, led by David Harquail. In 2007, Newmont offered a package of many original Franco-Nevada royalties along with other royalties for sale. The original Franco-Nevada team incorporated a new Franco-Nevada, launched an initial public offering (IPO) and on December 20, 2007, acquired the royalty portfolio for $1.2 billion. The Company has traded under the symbol FNV on both the Toronto and New York stock exchanges since 2007 and 2011, respectively. Franco-Nevada has since expanded the original IPO portfolio to become the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets.

The Company has avoided any long-term debt on its balance sheet to maximize its available capital through bull and bear resource markets. This strategy has paid handsome dividends. During the 2008 financial crisis, Franco-Nevada acquired a stream on the Palmarejo mine in Mexico and a royalty on the Gold Quarry Mine in Nevada and benefitted tremendously as gold prices surged following the crisis.  When the Chinese economy slowed abruptly in 2015, base metal prices sank presenting a new set of opportunities to Franco-Nevada. Owing to its strong balance sheet, the Company was able to acquire precious metal streams on three world class copper deposits; Candelaria, Antamina and Antapaccay. These long-dated mines make up three of the company’s four core assets.

Streaming has grown to be a material source of project financing for the resource industry. In 2012, Franco-Nevada acquired a $1 billion precious metal stream to help Inmet finance the planned $6 billion Cobre Panama project in Panama. Following Inmet’s acquisition by First Quantum, Franco-Nevada provided a further $356 million in financing to help complete construction of the expanded project and finance the buyback of one of the minority party interests. Cobre Panama was successfully commissioned in 2019, is the company’s largest revenue contributor and the largest growth driver in the medium term.

While gold and gold equivalents are our focus, investments in other resources allow us to be opportunistic through the commodity cycles, adding growth and diversity to our portfolio. Seymour Schulich made Franco-Nevada’s first investments in oil and gas with a focus on Canada’s Western Sedimentary Basin. Franco-Nevada has also been active acquiring interests in a number of the major US oil and gas basins following the sharp fall in oil prices in 2014. The Company has also accumulated royalty interest on producing nickel properties, large prospective copper development properties and much of the chromite resource in Ontario’s Ring of Fire. Most recently in 2021, Franco-Nevada acquired a tranche of debentures which are effectively a royalty on Vale’s world class iron ore operations in the Carajás region and elsewhere in Brazil.