Franco-Nevada Corporation

Good morning and welcome to Franco Nevada Corporation's first quarter 2023 results conference call and webcast. This call is being recorded on May 3, 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 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 in Best Relations. Please go ahead.

Thank you, Joanna. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's first quarter 2023 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 Perrena, 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 over the call to Paul Brink, President and CEO of Franca Nevada.

Thank you, Candida, and good morning. I'll start with a note on our ongoing director succession. At our AGM yesterday, we were sad to mark the retirement of two of our directors, Louis Gignac and Elliot Pugh. Louis was one of the original directors of Franklin, Nevada, and his expertise and guidance has been the foundation of many of our investment decisions. Elliot joined our board in 2019 and was key to directing our oil and gas investments. Thank you, Louis and Elliot, for the enormous contribution that you've made to our success. Turning now to the first quarter results. Our diversified portfolio continues to generate strong cash flow and high margins, though the quarter was impacted by production disruptions at Cobra Panama and Antipokai, as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2, with the social disruptions at Antipokai having subsided and First Quantum and the government of Panama having agreed on terms for a refreshed concession contract. The results for the quarter, while lower, bring home to me the robustness of our business. Despite the production impacts, the business still generated an 83% adjusted EBITDA margin and a 55% adjusted net income margin. We have no fixed costs related to our royalty and stream assets, so a temporary production halt is largely a deferral of revenue. We like to say great ore bodies get even better over time, and I think that'll apply to both Cobre Panama and Antibagai. During the quarter, we published our 2023 ESG report. Highlights include an outline of our ESG due diligence focus, increased community contributions, new board diversity goals, disclosure of Scope 3 financed emissions, and details of our new climate action policy. We also published our annual asset handbook. A few numbers in the handbook stood out to me. We now have interest in 419 assets. of which 113 are cash flow producing. Those assets generated 1.3 billion of revenue in 2022. That's 8.7 times the revenue of our first full year in 2018. At year end 22, we had 18.8 million M&I resource royalty ounces. Those are ounces that are cost-free to Franco. At current production rates, our M&I resource mine life stands at 34 years. Those numbers don't include our energy assets, our exploration assets, or obviously the upside potential of the producing assets. In total, our assets cover 66,000 square kilometers on some of the world's best mineral trends. Looking forward to the balance of 2023, the expansion of Cobre Panama will be a big driver. I was impressed that despite the disruptions, First Quantum completed construction for the CP100 expansion project ahead of schedule. They're now ramping up throughput to achieve 100 million tons per annum by year end. There are three new mine starts we're looking forward to this year. Maginot in Ontario, Seguela in Cote d'Ivoire, and Solaris Norte in Chile. And during the quarter, we commenced funding the Toca de Zinio stream deposit. The G Mining Ventures team are targeting first production in the back half of 2024, driving our next leg of growth. Our business development team is seeing good opportunities for financing new gold mines, and I'm confident they will further add to our five-year growth outlook. With that, I'll hand it over to Sandy.