Franco-Nevada Corporation

Good morning and welcome to Franco Nevada Corporation's 2023 Year-end Results Conference Call and Webcast. This call is being recorded on March 6, 2024. 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, Lara. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's year-end 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 Parana, 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 two of this presentation. I will now turn over the call to Paul Brink, President and CEO of Franco Nevada.

Thank you, Candida, and good morning. Our diversified top line business has a history of generating leading returns. But in late 2023, we were challenged by the unprecedented production halt at Cobra Panama. We're hopeful that the issues can be resolved, although we've taken a prudent approach to the carrying value of the asset. Despite the issues at Cobra Panama, our business remains robust. We finished the year with no debt and $1.4 billion in cash. The balance of our long-duration business still generates industry-leading cash flow. Our top-line business model is fortunately not impacted by industry cost inflation, and in 2023, we generated an 83% adjusted EBITDA margin. During the year, we added a number of attractive royalty interests, principally on gold mines and projects in Canada, Chile, Australia, and the U.S. Drop in U.S. natural gas prices also allowed us to add to our natural gas royalty interests. Our shareholders depend on us to allocate capital to operations that treat the environment and their host communities responsibly. Our work has resulted in top-level ratings from the ESG agencies. Notably, we're top-ranked in the gold sector and in the broader precious metal sector by Sustainalytics for 2024. Our objective is to have a sustainable and progressive dividend that's dependable even in volatile times. In 2024, our board were proud to increase our dividend for the 17th consecutive year. Investors from our IPO are now achieving a 9.4% yield in U.S. dollars for a 12.9% yield in Canadian dollars. Growth outlook for the balance of our business is strong over the next five years. Great assets keep getting better. Antamina has just sanctioned a capital program that will increase production. Candelaria is considering an underground expansion, and Agnico Eagle is planning to add underground production to Detour to expand output up to a million ounces per year. It's an exciting period of new mine builds. We're looking forward to new contributions from Tocco di Zinio, Greenstone, and Solaris Norte, amongst others, that will drive our organic growth through 2028. This outlook is good certainty. Two-thirds of the production is already under construction. With $2.4 billion in capital, we have available positions as well to add further assets. Cobre Panama represented roughly 20% of our revenue, and the production halt has seen more than that proportional reduction in our market cap. The prospect of Cobre restarting or an arbitration settlement are all upside optionality from these trading levels. Summary. The outlook for our business is bright. Our strategy of maintaining a strong balance sheet has never been more relevant, giving us a large treasury to grow the business at a time when capital for the industry is otherwise scarce. Now, I'll hand the call over to Sandy.