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2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation

Franco-Nevada Corporation · Mar 26, 2015 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 1
    FNV TSX/NYSE 2014 Results & Investor Day March 26, 2015
  2. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 2
    Management Participants David Harquail Sandip Rana Paul Brink President & CEO CFO SVP Business Development Geoff Waterman Lloyd Hong Kerry COO CLO & Sparkes Corporate VP, Geology Secretary 3
  3. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 3
    Agenda Overview of 2014 Results: Sandip Rana Business Development: Paul Brink Oil & Gas Update: Geoff Waterman Associated Gold Ounces & REUs: Kerry Sparkes Outlook and Q&A: David Harquail 4
  4. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 4
    Overview of 2014 Results Sandip Rana CFO 5
  5. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 5
    Delivering Growth in 2014 500 1,800 Record Revenues 450 Average Annual Gold Price (/oz) 1,600 442.4 400 427.0 1,400 2014: +10.4% 411.2 Revenue (millions) 350 400.9 1,200 300 2014 Gold Price: -10% 1,000 250 800 200…
  6. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 6
    Record Corporate Activity in 2014 January Sabodala Stream 135 million February Fire Creek/Midas Royalties 35 million March Increased Dividend +11% April Cerro Moro Royalty 20 million August Bought Deal Financing 500 million…
  7. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 7
    2014 Performance vs Guidance 2013 2014 2014 Results 2014 Results Results Guidance1 without with Candelaria Candelaria GEOs2 241,000 245 265,000 273,000 293,000 Oil & Gas Revenue 67 million 60-70 million 74 million 74 million…
  8. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 8
    GEOs1 Realized Gold Equivalent (000 ounces) 350 293.4 300 other 241.4 PGM 250 237.7 230.3 200 GOLD 156.2 150 100 2010 2011 2012 2013 2014 GEOs1 realized increased 21.5% year over year 1. Please see note 4 on slide 43…
  9. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 9
    2014 Financial Results ( millions except gold price, Q4 2014 Q4 2013 FY 2014 FY 2013 GEOs, per share and %) Gold Price (/ounce) 1,200 1,272 1,266 1,411 Gold Equivalent Ounces (GEOs)1 92,774 69,741 293,415 241,402 Revenue 123.0…
  10. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 10
    2014 Q4 Revenue Sources By Commodity By Geography Other 3% Oil & Gas 9% Rest of US World 18% 20% PGMs 9% Canada Gold Latin 30% 79% America 32% 88% Precious Metals 80% from the Americas 11
  11. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 11
    Adjusted Net Income1: 2013 to 2014 2.7 1.6 41.5 33.8 12.7 138.3 137.5 1. Please see note 2 on slide 43 12
  12. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 12
    Impairments Recorded MWS: 26.6 million This stream was capped as part of agreement to transfer asset from First Uranium to AngloGold Ashanti Benefit of blending both AngloGold dumps with First Uranium More dependable producer in…
  13. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 13
    A High Margin and Scalable Business 925/oz 500 79.2% 79.6% 81.5% 80.4% 80.7% Margin1 400 300 Revenue 200 Millions 1,569/oz 1,669/oz 1,411/oz 1,266/oz Au price2 1,225/oz 100 - Fixed Costs3 Variable Costs4 -100…
  14. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 14
    Business Development Paul Brink SVP, Business Development 15
  15. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 15
    Our Business Principles Goldstrike Candelaria Duketon Maximize Minimize Exploration upside Cost exposure Security of tenure Potential for encroachments Management time on new deals Involvement in operations Long term…
  16. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 16
    New Investment Opportunities Cerro Moro Yamana Gold Since 1985 3rd Party Royalties Brucejack Pretium Resources Hardrock Premier Gold Mines Since Cobre Panama - First Quantum 2008 By-product Streams Palmarejo - Coeur Mining…
  17. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 17
    Ring of Fire Royalties Franco-Nevada is providing Noront Resources Ltd. with1: 22.5 million loan (5 year, 7%, secured on Cliffs ROF lands) 3.5 million for royalties Royalties acquired are: 3% on Black Thor chromite deposit 2% on…
  18. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 18
    Ring of Fire Royalties Noront properties * * New royalties covering 1,000 km2 * Royalties do not cover the Eagles Nest deposit or certain JV ground 19
  19. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 19
    Available Capital Capital Resources Working Capital1 678 million Marketable Securities1 62 million Credit Facility1 (undrawn) 500 million Cobre Panama commitments (2015) (325 million) Other commitments (75 million) Total…
  20. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 20
    Oil & Gas Geoff Waterman COO 21
  21. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 21
    Oil & Gas Revenue vs Oil Price 80 120 70 73.9 100 WTI Oil Price (US/Barrel) 60 67.0 Addition of Revenue (millions) Weyburn NRI 80 50 40 60 40.9 30 35.8 34.9 40 20 20 10 0 0 2010 2011 2012 2013 2014 2015* Revenue…
  22. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 22
    2015 Expected Revenue Sources (50 WTI) Other 1% Oil & Gas 6% Assumes: Midpoint of GEO guidance (see slide 35) 1,200 per ounce gold Midpoint of Oil & Gas guidance (previous slide) Precious Metals 93% Opportunity to…
  23. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 23
    Associated Gold Ounces & REUs Kerry Sparkes VP, Geology 24
  24. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 24
    2015 Asset Handbook Includes: Update on all our Producing & Advanced Assets Details of ounces associated with each asset Details of our REUs estimates Oil & Gas reserves Other corporate information Available Today: Website or…
  25. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 25
    Gold Reserves Associated with FNV Assets Seven straight years of increased gold reserves Notes: For a breakdown of Mineral Reserves and Resources by category and additional information relating to Mineral Reserves and Resources,…
  26. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 26
    Gold Resources Associated with FNV Assets Reserve growth at expense of resources in 2014 Notes: For a breakdown of Mineral Reserves and Resources by category and additional information relating to Mineral Reserves and Resources,…
  27. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 27
    Associated Ounces Notable Changes Candelaria New Assets: Karma Dublin Gulch (Eagle) Midas/Fire Creek Reserve & Resource Growth: Hardrock Cooke 4 Stibnite Gold Resources converted to Reserves: Tasiast Marigold Reserves converted…
  28. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 28
    Royalty Equivalent Units (REUs) Rationale: Better representation of value for royalty and stream company Reflects economics between NSRs, NPIs and Streams Limitations: Requires management guidance regarding: o Ounces on royalty…
  29. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 29
    REUs Comparison Year over Year 12 +4% +116% +2% 10 M&I M&I M&I 8 REUs (Moz) 6 +71% -14% 4 M&I -12% P&P P&P P&P Inferred Inferred Inferred Inferred 2 P&P 0 2011 2012 2013…
  30. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 30
    Outlook David Harquail, President & CEO 31
  31. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 31
    Cobre Panama is Advancing Port PP Foundation & conc. warehouse Power plant man camp Botija quarry Expect 300-350 million of funding in 2015 32
  32. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 32
    Cobre Panama Mill and Stockpile Reclaim Looking south Aerial view Looking NW Looking west 33
  33. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 33
    2015 Expected Changes vs 2014 Candelaria: 60,000 GEOs Oil & Gas Lower oil price Hemlo (stronger NPI) Sabodala (full year) Other upsides: Goldstrike (less capex) Detour (continued ramp up) Subika (mine sequence & Ghana power)…
  34. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 34
    2015 Guidance Expected GEOs1: 335,000 355,000 18% increase versus 2014 (assuming midpoint of guidance) Oil & Gas revenue: 20 to 30 million2 49 million decrease versus 2014 (assuming midpoint of guidance) Begin funding of Cobre…
  35. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 35
    Five Year Outlook (2019) Expect GEOs1: 385,000 415,000 Cobre Panama producing based on First Quantums projections Candelaria delivering 60,000 GEOs/annum Guadalupe production at Palmarejo (decrease from minimum 50,000 oz/year) New…
  36. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 36
    Other Portfolio Potential TCM ramp-up Goldstrike Supplementary ore from South Arturo Candelaria Lundin new mine plan Subika / Ahafo Mill expansion and underground decisions Rosemont (HudBay) Final permits Lakeshore Gold New 144 GAP…
  37. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 37
    Progressive Dividend Dividends Dividends & DRIP Paid (US per share) (US millions) 0.90 120 0.80 100 0.70 0.60 80 US / share US millions 0.50 60 0.40 0.30 40 0.20 20 0.10 0.00 0 2008 2009 2010 2011 2012 2013 2014…
  38. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 38
    Franco-Nevada since IPO Revenue Adjusted Net Income1 Producing Mineral (US millions) (US per share) Assets3 Working Capital2 Market Capitalization3 Dividends (US millions) (US billions) (US per share) 1. Please see note 2 on…
  39. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 39
    What Differentiates Franco-Nevada OUR BOARD OUR EXECUTIVES Highly experienced in resource Focused only on FNV, no other boards investments Lower G&A than comparables Owners with 200 million invested Active with deals and new…
  40. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 40
    Franco-Nevada Provides: Gold exposure at a discount 300% Growth organic and acquisitions FNV 250% Dividends vs. ETF fees 200% 150% 100% GOLD 50% FNV IPO: Dec 2007 0% S&P/TSX Global -50% Gold Index -100% 2008 2009…
  41. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 41
    Q&A Cautionary Note Regarding Mineral Reserve and Resource Estimates This presentation has been prepared in accordance with the requirements of Canadian securities laws in effect in Canada, which differ from the requirements of U.S.…
  42. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 42
    Notes 1. Adjusted EBITDA and Adjusted EBITDA per share are non-IFRS financial measures, which excludes the following from net income and net income per share: income tax expense/recovery; finance expenses and finance income; foreign…
  43. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 43
    Appendix Non IFRS Measures Three months ended Twelve months ended December 31, December 31, (expressed in millions, except per share amounts) 2014 2013 2014 2013 Net Income (Loss) 1.2 (80.6) 106.7 11.7 Income tax expense 10.2 (17.1)…
  44. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 44
    Appendix Non IFRS Measures Three months ended Twelve months ended December 31, December 31, (expressed in millions, except per share amounts) 2014 2013 2014 2013 Net Income (Loss) 1.2 (80.6) 106.7 11.7 Foreign exchange…
  45. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 45
    Appendix Income Taxes Depletion and balances as at December 31, 2014: Applicable statutory tax rates as at December 31, 2014: CANADA Canadian combined income tax rates (Canadian Oil & Gas, Canadian Mining Assets) Canadian Oil & Gas:…
  46. 2014 RESULTS & INVESTOR DAY – Franco-Nevada Corporation – slide 46
    Appendix - Book Value at Dec 31, 2014 GOLD UNITED STATES PRODUCING ADVANCED & PGMs PRODUCING ADVANCED & EXPLORATION EXPLORATION Goldstrike 113.1 M 0.0 M Stillwater 158.9 M 0.0 M Gold Quarry 58.2 0.0 Pandora 13.7 0.0 Marigold 19.7 0.0…

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