Corporate Profile

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company. We do not operate mines, develop projects or conduct exploration. Instead, we own and continue to grow a large, diversified portfolio of royalties and streams that provide:

Royalties and streams expose Franco-Nevada to the exploration and price optionality inherent with geologically favourable properties. They can often be registered on title to a property or in a secure fashion with less exposure to government resource nationalisation. They are not subject to operating or capital cash calls, making this a free cash flow business. Franco-Nevada can provide yield along with more upside than a gold ETF with less risk than an operating company.

Business Model Advantages

1. This business is truly a free cash flow business. We are effectively free of the need to directly fund unscheduled mining capital expenditures and other costs.
2. Typically, we participate at the revenue line of operations and are not directly impacted by cost inflation. This allows our margins to fully benefit from rising commodity prices.
3. Our business is high margin with low overheads enabling us to generate cash through the entire commodity cycle.
4. Our many assets provide exploration optionality by covering over 41,000 square kilometres of geologically prospective lands without any direct carrying, exploration or development costs.
5. Our business is scalable allowing for the acquisition of more interests than an operating company can effectively manage. A more diversified portfolio reduces overall risk.
6. Management has the benefit to be able to focus on growth as we do not have responsibility for day-to-day operational or development decisions.

Our Track Record

Since our IPO in December 2007, Franco-Nevada’s share price has outperformed both gold and other gold equities. Over those nine years our margins have remained high, our overhead has remained low and our effective tax rate has remained stable. The Company has been able to increase dividends in each of the past nine years.

Our History

The royalty portfolio was assembled starting in 1985 by Franco-Nevada Mining Corporation Limited (“Old Franco”) and predecessor companies. In 2002, Old Franco was acquired by Newmont Mining Corporation (“Newmont”). A number of Old Franco employees remained with Newmont and managed the royalty portfolio as well as created additional royalties on the property portfolio of Newmont and Normandy Mining. In late 2007, a team including some Old Franco employees formed Franco-Nevada Corporation and on December 20, 2007, acquired a portfolio of Newmont royalties and other interests, completed an initial public offering (“IPO”), completed a bank debt facility and listed on the Toronto Stock Exchange. Franco-Nevada has continued to acquire and create new royalties and streams to supplement original portfolio and in September, 2011 listed on the NYSE.

2016

• Market capitalization of >$10billion
• Dividend increased for 9th consecutive year
• $500 million Antapaccay transaction
• $100 million STACK oil acquisition
• $920 million bought deal financing

2015

• Market capitalization of >$7 billion
• Dividend increased for 8th consecutive year
• Inclusion in TSX 60 Index
• $610 million Antamina silver stream investment
• Finalized amended Cobre Panama agreement and began funding

2014

• Market capitalization of >$7 billion
• Dividend increased for 7th consecutive year
• $648 million Candelaria precious metals stream investment
• Over $900 million committed in total

2013

• Market capitalization of $6 billion
• Dividend increased
• Added to GDX and Aristocrat indices

2012

• Market capitalization > $7 billion
• Dividend increased
• $1 billion Cobre Panama precious metals stream investment
• C$400 million Weyburn oil investment

2011

• Market capitalization > $5 billion
• Dividend increased
• $1.2 billion invested in new precious metals investment
• Listed on the NYSE

2010

• Market capitalization > $4 billion
• Dividend increased and paid monthly
• Detour and Tasiast now +20 million ounce projects
• $350 million Prosperity gold stream investment

2009

• Market capitalization > $3 billion
• Dividend increased
• Palmarejo gold stream investment
• Subika royalty investment

2008

• Market capitalization > $2 billion
• Start of semi-annual dividends
• Gold Quarry investment

2007

• Dec. 20th IPO for $1.2 billion