Franco-Nevada Corporation

Good morning, ladies and gentlemen, and welcome to the Franco-Nevada Corporation's second quarter 2022 results conference call and webcast. This call is being recorded on August 11, 2022. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a Q&A 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 this call by typing your question in the Q&A section of the webcast platform. If you require immediate assistance during this call, please press star zero at any time for the operator. I would now like to turn the conference over to your host, Bonavitek, Vice President, Finance. Please go ahead.

Thank you, Christina. Good morning, everyone. Thank you for joining us today to discuss Franco Nevada's second 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. During our call this morning, Paul Brink, President and CEO of Franco Nevada, will provide introductory remarks, followed by Sandy Brana, Chief Financial Officer, who will provide a brief review of our results, and Ian Gray, Senior Vice President, Business Development, who will provide an overview of our Tocantinsenio transaction. 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.

Thank you, Bonnevie, and good morning. We're proud to report our best quarterly and half-year results on record. Each of revenues adjusted EBITDA and adjusted net income were records for the quarter. The low risk nature of our business is most pronounced in today's inflationary environment. Our top-line precious metal stream and royalty interests helped generate our highest ever margins since adding streaming to our business, over 85% for adjusted EBITDA and 55% for adjusted net income. High energy prices in this environment are a positive for us and drove an increase in our diversified geos, partly offset by marginally lower precious metal geo salt. At half-year, our total geo salt is slightly ahead of the midpoint of our guidance range, and we're maintaining our previously issued guidance. In July, we were delighted to announce a financing package for the Tocantinsinho property in Brazil with G-Mining Ventures for $353 million. The financing package included a $250 million gold stream, $75 million term loan, and a $27.5 million equity financing. The project is construction-ready with first gold deliveries expected in late 2024 and is fully financed. The team behind G-Mining Ventures is well known in the industry for its record of building mines on time and on budget, including Merian for Newmont Mining and Fruta del Norte for Lundin Build. We expect Toca de Senor will be the first of many mine builds for the company and have entered into a long-term partnership for future financings and acquisitions. We've been in close dialogue with Lundin Mining on the sinkhole that has developed close to the Alcaparosa portion of their Candelaria operations. Fortunately, all staff and community are safe, and the appearance of the sinkhole didn't result in any injuries. Lundeen and Zanagio have experts evaluating the event and hope to have an initial understanding of the causes in the coming weeks. Notable in terms of organic growth news in the quarter was Detour Lake. Ignico Eagle announced a 10-year mine life extension to 2052, and that they're looking to expand throughput to 32 million tons per year as well as potentially develop an underground mine that could increase production to a million ounces or more per year. The detour expansion, along with expansions at Stillwater and Tassiust, and of course Cobre Panama, form the core of our near-term organic growth. We'll also have contributions from three new mines in the next couple of years, and the construction of Solaris Norte, Greenstone, and Seguela are all proceeding on track. We expect the development of Valentine Lake, Stibnite Gold, and Escape Creek to follow. With respect to ESG, during the quarter, Franco-Navarro was named the Corporate Night's 2022 list of the best 50 corporate citizens in Canada. Also, as part of the Toca de Zinio transaction, we committed $1 million of environmental and community support programs over four years. We also continue to expand our community engagement and contributions with existing partners. In summary, Franco Nevada continues to deliver with record financial performance, built-in growth, and long-term optionality. We're cash flow positive with no debt, have $1.9 billion in available capital, and are generating operating cash flow at a rate of $1 billion per year. We're focused on growing the company by adding more precious metal assets and are seeing a good pipeline of opportunities. With that, I'll hand it over to Sandy.