Franco-Nevada Corporation

Good morning, ladies and gentlemen, and welcome to the Franco Nevada Corporation Q1 2020 results conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on May 7, 2020. I would now like to turn the conference over to Candida Hayden. Please go ahead.

Thank you, Chris. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's first quarter 2020 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. Paul Brink, our new president and CEO of Franco-Nevada, will provide a company update, and Sandy Brenna, CFO of Franco-Nevada, will provide a brief review of our results. and Ian Gray, VP Business Development of Franklin, Nevada, will comment on business development. This will be followed by a Q&A period. Representatives from our executive team are present in our boardroom 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 details cautionary note on slide two of this presentation. I will now turn over the call to Paul Brink, President and CEO of Franco Nevada.

Thank you, Candida, and welcome to all on the line. Our succession planning has been well signaled, and a number of the role changes took effect at our AGM yesterday. Today is the first day with Pierre as Chair Emeritus, David as Chair, and myself as CEO. David and Pierre have set a very high bar at Franco. I'm looking forward to the challenge of the new role. I'm delighted to have David's guidance as chair, and I'm confident the next chapter in the Franklin, Nevada story will be a good one. We were also pleased yesterday to welcome Maureen Jensen to the board. Maureen's experience both leading the Interior Securities Commission and working as a geoscientist in the industry will be great assets to the board. Franco-Nevada has been fortunate not to have any COVID-19 cases amongst our staff, and they've been able to remain fully productive working from home. We do have temporary closures at two of our core assets, Cobre Panama and Antamina. Candelaria and Antipakai have continued to operate normally. First Quantum has placed Cobre Panama into care and maintenance until the health ministry is satisfied that the quarantine conditions are appropriate. Antamina has also been temporarily suspended to support Peruvian COVID response efforts and facilitate a change in the workforce. They've safely demobilized the workforce, and while they're working towards a restart, the timing is still uncertain. Of our other 52 cash-flowing assets, 11 have announced temporary reduced or curtailed production, although five of those have since resumed activities. Franco doesn't have any fixed costs related to these investments, so any temporary closures are effectively only a deferral of revenue. The energy side of our business has been impacted by a sharp downturn in oil prices, operators reduced capex plans, and production curtailments. We have reviewed the carrying value for our energy assets and have recorded impairments this quarter, primarily related to the scoop stack and waiver. On a positive note, I'm pleased to announce our board has declared a quarterly dividend of $0.26 per share. It's a 4% increase from the previous $0.25 per share and the 13th consecutive annual dividend increase. Canadian investors in Franco Nevada's 2007 IPO are now receiving more than a 9% effective yield. Lastly, a brief reminder. In April, we released our 2020 Asset Handbook and ESU report. The handbook is our annual staple with descriptions of our main assets. The ESG report details our ESG efforts, including new commitments to the World Gold Council's Responsible Gold Mining Principles and the UN Global Compact. Both reports are available on our website and also as hard copies by request. With that, I'll hand it to Sandy for the Q1 financials.