Franco-Nevada Corporation

Good morning, ladies and gentlemen, and welcome to Franco Nevada Corporation's first quarter 2022 results conference call and webcast. This call is being recorded on May the 5th, 2022. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session where you may ask a question through the phone line or webcast. If you are joining by webcast, you may submit a written question for the Q&A session at any time during the call by typing your question in the Q&A section of the webcast platform. If you require immediate assistance during the call, please press star zero at any time for the operator. I would now like to turn the conference over to your host, Bonnevie Tech, Vice President of Finance. Please go ahead.

Thank you, Michelle. Good morning, everyone. Thank you for joining us today to discuss Franco Nevada's first quarter 2022 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. Paul Brink, President and CEO of Franco Nevada, will provide some introductory remarks, followed by Sandy Brana, Chief Financial Officer of Franco Nevada, who will provide a brief review of our results. This will be followed by a Q&A period. Our full 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 three of this presentation. I will now turn the call over to Paul Brink, President and CEO of Franco-Nevada.

Thanks, Bonnevie, and good morning. I'm pleased to announce strong Q1 results that once again demonstrate the high margin nature of our business. The quarter benefited from strong precious metal energy and iron ore prices. The energy contribution was particularly strong, offset somewhat by lower precious metal deliveries. Our total GOs are on track to meet annual guidance. With slightly lower precious metal deliveries than expected from Cobre, Candelaria, and Sudbury, The impacts were planned maintenance, shipment timing, and transport constraints. None of the issues are likely to impact annual production. Oil and gas prices have been strong. Gas prices in particular remain above $7 per MCF, almost double the $3.75 per MCF we used to compile our guidance. We're getting accelerated payback from our Marcellus and Haynesville natural gas investments. During the quarter, we published our fourth annual ESG report. A highlight for this year was the addition of comprehensive emissions disclosure for our producing mining assets. We've made further progress on our diversity goals as our team grows. Our efforts continue to be recognized, and last month we were named to the Corporate Knights list of Best 50 Canadian Corporate Citizens. Our business stands out in today's inflationary world. Our NSR and stream interests are effectively inflation-proof. Our GNA is less than 3% of revenue, and our energy interests actually provide leverage to energy price inflation. As a result, our revenue growth is translating directly into expanded earnings. We provided guidance at year-end and expect good growth through 2026 for mine expansions and new mines. First Quantum is on track to expand Cobrae Panama up to 100 million ton per annum of throughput by the end of 2023. Detour Lake has seen further exploration success and Ignico is now considering an underground mine and an even larger throughput expansion. The Tazius 24K expansion is ongoing and currently is operating around 21,000 tons per day. At Melodic, the Odyssey project construction is on track. and over time, more of East Goldie appears to fall on our royalty claims. Newmont's Harpo South production is also moving more onto our Sabica claims for the next number of years. The Solaris Norte mine build is now 70% complete, and Seguela and Greenstone are under construction. When the industry has access to capital, it typically drives our organic growth. Our asset handbook, launched at our recent investor day, highlighted impressive resource growth in the portfolio. M&I Royalty ounces were up 15% year-on-year to 18.6 million ounces. Our calculation of mine life based on M&I Royalty ounces moved from 28 years to 32 years. We had a couple of small additions to the portfolio during the quarter. 0.46% NSR on the Casarones copper mine in Chile. and a 2% NSR on claims that cover a portion of the Castle Mountain gold mine, where we have an existing royalty on the broader property. We have no debt and 1.7 billion in available capital. We're generating robust cash flow, 231 million in the quarter. Earlier this year, we increased the dividend to 32 cents a share, or roughly $61 million per quarter. Looking forward, our business development team is very active, principally looking to finance new gold mines. With that, I'll hand the call over to Sandy.