Franco-Nevada Corporation

Good morning and welcome to Franco Nevada Corporation's 2022 Year End Results Conference Call and Webcast. This call is being recorded on March 16, 2023. 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 the 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, Candida Hayden, Senior Analyst, Investor Relations. Please go ahead.

Candida Hayden Thank you, Michelle. Good morning, everyone. Thank you for joining us today to discuss Franco Nevada's 2022 year-end 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 this call, During our call this morning, Paul Brink, President and CEO of Franco Nevada, will provide introductory remarks, followed by Sandy Brana, our Chief Financial Officer, 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, Candida, and good morning. I'm pleased to report strong fourth quarter and annual results for 2022. Our diversified assets outperformed driven by elevated energy prices in the year. The benefit of our top-line business was again apparent. While inflation impacted the margins of many operating companies, our EBITDA margins actually expanded slightly, and our business generated record profits. It's good to see our efforts on ESG being well received. Most recently, we were awarded a Sustainalytics Global Top 50 rating, given to the top 50 companies in their ratings universe. This January, we announced our 16th consecutive annual dividend increase. The roughly 6% increase takes our quarterly dividend to $0.34 US per share. Many of our largest shareholders have held the stock since the IPO, and they're now realizing a 12% yield in Canadian dollars or almost 9% in US dollars. The renegotiation of the Cobre Panama concession contract over the last few months and the brief production halt caused some sleepless nights. It was a relief, I'm sure, for everyone last week when First Quantum and the government reached agreement on a refreshed contract. We hope it moves swiftly through public consultation and parliamentary approval. Turning to Outlook. For 2023, our precious metal geos and our diversified production are expected to be consistent with 2022, although total geos are expected to be lower as current energy prices are off from the highs of last year. We're looking forward to Cobre Panama reaching its expanded throughput capacity of 100 million ton per annum by year end, and also to initial contributions from three new gold mines during the year, Megino, Segwella, and Solaris Norte. Our five-year outlook shows ongoing growth in the business. This organic growth comes from both mine expansions and new mines. The most significant new additions during the period are expected from Toca Tocino, Vale's southeastern iron ore system, and Hard Rock in Ontario. We expect Mineway Solutions will have reached its cap in 2024 and also a step down in the Candelaria stream rate in 2027. Resource optionality continues to drive our business. Success at the drill bit will provide one of our biggest annual increases in reserves from our underlying assets. The biggest impacts are reserve increases at Detour Lake and Cascabel. We'll publish our tributable royalty ounces with our asset handbook in April. The global drive for electrification will be good for Franco Nevada's longer-term outlook. Along with a deep portfolio of royalties on gold exploration properties, we have royalties on what are likely some of the next generation of copper and nickel mines. Our business development team is seeing good opportunities for precious metal financings, in particular financing new gold mines. We expanded the scope of our financing package with the Toco de Senor transaction with G Mining Ventures last year and are seeing good interest in similar structures. To wrap up, Franco Nevada has no debt, $2.2 billion in available capital, and in these uncertain markets, couldn't be better positioned to continue its growth record. I'll now hand over the call to Sandy.