Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 | |
Ifrs Statement Line Items | |
Document Type | 6-K |
Entity File Number | 001-35286 |
Entity Registrant Name | FRANCO-NEVADA CORPORATION |
Entity Address, Address Line One | 199 Bay Street |
Entity Address, Address Line Two | Suite 2000 |
Entity Address, Address Line Three | P.O. Box 285 |
Entity Address, Address Line Four | Commerce Court Postal Station |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5L 1G9 |
Entity Central Index Key | 0001456346 |
Document Period End Date | Jun. 30, 2022 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents (Note 4) | $ 910.6 | $ 539.3 |
Receivables | 144.3 | 119.8 |
Loan receivable (Note 5) | 39.7 | |
Prepaid expenses and other (Note 6) | 47.9 | 52.6 |
Current assets | 1,102.8 | 751.4 |
Royalty, stream and working interests, net (Note 7) | 4,998.2 | 5,149.3 |
Investments (Note 5) | 213.2 | 235.9 |
Deferred income tax assets | 46.5 | 49.4 |
Other assets (Note 8) | 49.8 | 23.9 |
Total assets | 6,410.5 | 6,209.9 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 34.9 | 33.6 |
Current income tax liabilities | 7.5 | 9.6 |
Current liabilities | 42.4 | 43.2 |
Deferred income tax liabilities | 135.7 | 135.4 |
Other liabilities | 5.7 | 6.1 |
Total liabilities | 183.8 | 184.7 |
SHAREHOLDERS' EQUITY | ||
Share capital (Note 16) | 5,657 | 5,628.5 |
Contributed surplus | 17.9 | 16.1 |
Retained earnings | 740.8 | 484.9 |
Accumulated other comprehensive loss | (189) | (104.3) |
Total shareholders' equity | 6,226.7 | 6,025.2 |
Total liabilities and shareholders' equity | $ 6,410.5 | $ 6,209.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Ifrs Statement Line Items | ||||
Revenue (Note 10) | $ 352.3 | $ 347.1 | $ 691.1 | $ 656 |
Costs of sales | ||||
Costs of sales (Note 11) | 45.5 | 47.3 | 89.1 | 87.9 |
Depletion and depreciation | 69.6 | 77.2 | 144.2 | 148.4 |
Total costs of sales | 115.1 | 124.5 | 233.3 | 236.3 |
Gross profit | 237.2 | 222.6 | 457.8 | 419.7 |
Other operating expenses (income) | ||||
General and administrative expenses | 5.8 | 5.4 | 11.4 | 9.6 |
Share-based compensation expenses (Note 12) | 5 | 4.3 | 7 | |
Impairment charges | 7.5 | 7.5 | ||
Gain on sale of gold bullion | (0.2) | (0.6) | (1.5) | (1.2) |
Total other operating expenses | 5.6 | 17.3 | 14.2 | 22.9 |
Operating income | 231.6 | 205.3 | 443.6 | 396.8 |
Foreign exchange (loss) gain and other income (expenses) | (0.4) | (1.2) | 5.8 | (1.3) |
Income before finance items and income taxes | 231.2 | 204.1 | 449.4 | 395.5 |
Finance items (Note 14) | ||||
Finance income | 2.8 | 1.7 | 3.5 | 2.4 |
Finance expenses | (0.8) | (1.1) | (1.7) | (1.9) |
Net income before income taxes | 233.2 | 204.7 | 451.2 | 396 |
Income tax expense (Note 15) | 36.7 | 29.4 | 72.7 | 49.2 |
Net income | 196.5 | 175.3 | 378.5 | 346.8 |
Items that may be reclassified subsequently to profit and loss: | ||||
Currency translation adjustment | (49.2) | 17.7 | (27) | 27.1 |
Items that will not be reclassified subsequently to profit and loss: | ||||
(Loss) gain on changes in the fair value of equity investments at fair value through other comprehensive income ("FVTOCI"), net of income tax (Note 5) | (76.8) | 46.7 | (57.1) | 65.3 |
Other comprehensive (loss) income, net of taxes | (126) | 64.4 | (84.1) | 92.4 |
Comprehensive income | $ 70.5 | $ 239.7 | $ 294.4 | $ 439.2 |
Earnings per share (Note 17) | ||||
Basic earnings per share (in dollars per share) | $ 1.03 | $ 0.92 | $ 1.98 | $ 1.82 |
Diluted earnings per share (in dollars per share) | $ 1.02 | $ 0.92 | $ 1.97 | $ 1.81 |
Weighted average number of shares outstanding (Note 17) | ||||
Weighted average basic number of shares outstanding | 191.5 | 191 | 191.4 | 191 |
Weighted average diluted number of shares outstanding | 191.9 | 191.4 | 191.8 | 191.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 378.5 | $ 346.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion and depreciation | 144.2 | 148.4 |
Share-based compensation expenses | 3 | 3 |
Impairment charges | 7.5 | |
Unrealized foreign exchange loss | 0.3 | |
Deferred income tax expense | 13.2 | 11.9 |
Other non-cash items | (6) | (2.4) |
Acquisition of gold bullion | (23) | (21.2) |
Proceeds from sale of gold bullion | 26.5 | 17.5 |
Changes in other assets | (26.7) | (5.7) |
Operating cash flows before changes in non-cash working capital | 509.7 | 506.1 |
Changes in non-cash working capital: | ||
Increase in receivables | (24.5) | (22.3) |
Decrease (increase) in prepaid expenses and other | 2.6 | (6.3) |
Increase (decrease) in current liabilities | 0.1 | (8) |
Net cash provided by operating activities | 487.9 | 469.5 |
Cash flows used in investing activities | ||
Acquisition of royalty, stream and working interests | (12.8) | (733.5) |
Acquisition of investments | (47.4) | |
Acquisition of energy well equipment | (0.6) | (0.7) |
Proceeds from repayment of loan receivable | 42.7 | |
Proceeds from sale of investments | 1.7 | 12.7 |
Net cash used in investing activities | (16.4) | (721.5) |
Cash flows used in financing activities | ||
Payment of dividends | (101.4) | (87) |
Proceeds from draw of revolving credit facilities | 150 | |
Repayment of revolving credit facilities | (150) | |
Credit facility amendment costs | (0.1) | |
Proceeds from exercise of stock options | 5.2 | 0.3 |
Net cash used in financing activities | (96.2) | (86.8) |
Effect of exchange rate changes on cash and cash equivalents | (4) | 2.3 |
Net change in cash and cash equivalents | 371.3 | (336.5) |
Cash and cash equivalents at beginning of period | 539.3 | 534.2 |
Cash and cash equivalents at end of period | 910.6 | 197.7 |
Supplemental cash flow information: | ||
Dividend income received | 8.2 | 13.9 |
Interest and standby fees paid | 1.3 | 1.3 |
Income taxes paid | $ 59.3 | $ 51.3 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Millions | Share capital | Contributed surplus | Accumulated other comprehensive loss | Retained earnings (deficit) | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 5,580.1 | $ 14 | $ (115.9) | $ (34.4) | $ 5,443.8 |
Net income | 346.8 | 346.8 | |||
Other comprehensive (loss) income | 92.4 | 92.4 | |||
Total comprehensive income | 439.2 | ||||
Exercise of stock options | 0.4 | (0.1) | 0.3 | ||
Share-based payments | 3.2 | 3.2 | |||
Transfer of gain on disposal of equity investments at FVTOCI | (7) | 7 | |||
Dividend reinvestment plan | 19.5 | 19.5 | |||
Dividends declared | (106.5) | (106.5) | |||
Balance at end of period at Jun. 30, 2021 | 5,600 | 17.1 | (30.5) | 212.9 | 5,799.5 |
Balance at beginning of period at Dec. 31, 2020 | 5,580.1 | 14 | (115.9) | (34.4) | 5,443.8 |
Exercise of stock options | 0.5 | ||||
Dividend reinvestment plan | 41.8 | ||||
Balance at end of period at Dec. 31, 2021 | 5,628.5 | 16.1 | (104.3) | 484.9 | 6,025.2 |
Net income | 378.5 | 378.5 | |||
Other comprehensive (loss) income | (84.1) | (84.1) | |||
Total comprehensive income | 294.4 | ||||
Exercise of stock options | 6.7 | (1.5) | 5.2 | ||
Share-based payments | 3.3 | 3.3 | |||
Transfer of gain on disposal of equity investments at FVTOCI | (0.6) | 0.6 | |||
Dividend reinvestment plan | 21.8 | 21.8 | |||
Dividends declared | (123.2) | (123.2) | |||
Balance at end of period at Jun. 30, 2022 | $ 5,657 | $ 17.9 | $ (189) | $ 740.8 | $ 6,226.7 |
Corporate information
Corporate information | 6 Months Ended |
Jun. 30, 2022 | |
Corporate information | |
Corporate information | Note 1 - Corporate information Franco-Nevada Corporation (“Franco-Nevada” or the “Company”) is incorporated under the Canada Business Corporations Act. The Company’s shares are listed on the Toronto Stock Exchange and the New York Stock Exchange and the Company is domiciled in Canada. The Company’s head and registered office is located at 199 Bay Street, Suite 2000, Toronto, Ontario, Canada. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2022 | |
Significant accounting policies | |
Significant accounting policies | Note 2 - Significant accounting policies (a) Basis of presentation These unaudited condensed consolidated interim financial statements include the accounts of Franco-Nevada and its wholly-owned subsidiaries (its “subsidiaries”) (hereinafter together with Franco-Nevada, the “Company”). These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of condensed interim financial statements, including IAS 34 Interim Financial Reporting The financial information included herein reflects all adjustments, consisting only of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. Seasonality is not considered to have a significant impact over the condensed consolidated interim financial statements. Taxes on income in the interim period have been accrued using the tax rates that would be applicable to expected total annual income. (b) Significant judgments, estimates and assumptions The preparation of consolidated financial statements in accordance with IFRS requires the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The areas of judgment and estimation are consistent with those reported in the annual consolidated financial statements for the year ended December 31, 2021. (c) New and Amended Accounting Standards Certain new accounting standards and interpretations have been published that are currently effective requirements or forthcoming requirements. These standards are not expected to have a material impact on the Company’s current or future reporting periods. |
Acquisitions and other transact
Acquisitions and other transactions | 6 Months Ended |
Jun. 30, 2022 | |
Acquisitions and other transactions | |
Acquisitions and other transactions | Note 3 - Acquisitions and other transactions (a) Financing Package with G Mining Ventures on the Tocantinzinho Gold Project – Brazil Subsequent to Q2 2022, on July 18, 2022, the Company’s wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation (“FNBC”), acquired a gold stream with reference to production from the Tocantinzinho project, owned by G Mining Ventures Corp. (“G Mining Ventures”) and located in Pará State, Brazil (the “Stream”). FNBC will provide a deposit of $250.0 million. Additionally, the Company, through one of its wholly-owned subsidiaries, agreed to provide G Mining Ventures with a $75.0 million secured term loan (the “Term Loan”). Stream deliveries to FNBC are based on gold production from the Tocantinzinho property, according to the following schedule: (i) 12.5% of gold produced until 300,000 ounces of gold have been delivered and, thereafter, (ii) 7.5% of gold produced for the remaining mine life. G Mining Ventures will receive 20% of the spot gold price for each ounce of gold delivered. The $250 million deposit will become available after G Mining Ventures has spent at least $95 million on the Tocantinzinho project from January 1, 2022 and subject to certain other conditions. The Term Loan is a $75 million, 6-year 5-year Franco-Nevada also subscribed for 44,687,500 G Mining Common Shares for gross proceeds of $27.5 million at a share price of C$0.80 per G Mining Common Share. (b) Acquisition of Caserones Royalty – Chile On April 14, 2022, the Company agreed to acquire, through a wholly-owned subsidiary, an effective 0.4582% NSR on JX Nippon’s producing Caserones copper-molybdenum mine located in the Atacama Region of northern Chile for an aggregate purchase price of approximately $37.4 million. To purchase its interest in the Caserones royalty, Franco-Nevada acquired shares in Socieded Legal Minera California Una de la Sierra Peña Negra (“SLM California”). SLM California is a privately held entity whose purpose is to pay Chilean taxes in respect of and distribute proceeds from the Caserones royalty to its shareholders. Franco-Nevada is entitled to royalty payments in respect of the period commencing January 1, 2022. The Company also completed a private placement with EMX Royalty Corporation (“EMX”), acquiring 3,812,121 units of EMX at C $3.30 per unit for total cost of $10.0 million (C $12.6 million). Each unit consists of one common share of EMX and one warrant to purchase one common share of EMX over five years at an exercise price of C $4.45 . EMX used the proceeds from the private placement to acquire an NSR on the Caserones mine on similar terms as Franco-Nevada. Franco-Nevada’s investments in SLM California and EMX are accounted for as equity investments and designated at fair value through other comprehensive income in accordance with IFRS 9 Financial Instruments (c) Acquisition of Additional Castle Mountain Royalty – California, U.S. On May 2, 2022, the Company, through a wholly-owned subsidiary, acquired an existing 2% NSR on gold and silver produced from the Pacific Clay claims, which comprise a portion of the JSLA pit of Equinox Gold’s Castle Mountain project in San Bernardino County, California, for $6.0 million. When combined with the Company’s 2.65% NSR on the broader Castle Mountain land position, the Company now has an effective 4.65% NSR on the Pacific Clay claims. (d) Acquisition of Royalties – Chile Subsequent to Q2 2022, on July 25, 2022, the Company acquired, through a wholly-owned subsidiary, a portfolio of seven royalties, each with a 2% NSR on precious metals and 1% NSR on base metals, for $1.0 million. (e) Acquisition of Mineral Rights with Continental Resources, Inc. – U.S. The Company, through a wholly-owned subsidiary, has a strategic relationship with Continental Resources, Inc (“Continental”) to acquire, through a jointly-owned entity (the “Royalty Acquisition Venture”), royalty rights within Continental’s areas of operation. Franco-Nevada recorded contributions to the Royalty Acquisition Venture of $3.6 million in H1 2022 (H1 2021 – $4.1 million). As at June 30, 2022, Franco-Nevada’s total cumulative investment in the Royalty Acquisition Venture totaled $432.0 million and Franco-Nevada has remaining commitments of up to $88.0 million. Accounts payable at June 30, 2022 include $0.6 million (December 31, 2021 - $1.7 million) of contributions disbursed after period-end. The Royalty Acquisition Venture is accounted for as a joint operation in accordance with IFRS 11 Joint Arrangements . |
Cash and cash equivalents
Cash and cash equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Cash and cash equivalents | |
Cash and cash equivalents | Note 4 - Cash and cash equivalents Cash and cash equivalents comprised the following: At June 30, At December 31, 2022 2021 Cash deposits $ 541.2 $ 529.7 Term deposits 369.4 9.6 $ 910.6 $ 539.3 As at June 30, 2022 and December 31, 2021, cash and cash equivalents were primarily held in interest-bearing deposits. |
Investments and loan receivable
Investments and loan receivable | 6 Months Ended |
Jun. 30, 2022 | |
Investments and loan receivable | |
Investments and loan receivable | Note 5 - Investments and loan receivable Investments and loan receivable comprised the following: At June 30, At December 31, 2022 2021 Loan receivable $ — $ 39.7 $ — $ 39.7 Equity investments $ 210.6 $ 235.1 Warrants 2.6 0.8 $ 213.2 $ 235.9 (a) Equity investments Equity investments comprised the following: At June 30, At December 31, 2022 2021 Labrador Iron Ore Royalty Corporation ("LIORC") $ 139.3 $ 187.4 SLM California 37.4 — Other 33.9 47.7 $ 210.6 $ 235.1 During the six months ended June 30, 2022, the Company disposed of equity investments with a cost of $1.1 million (H1 2021 - $4.6 million) for gross proceeds of $1.7 million (H1 2021 - $12.7 million). The change in the fair value of equity investments recognized in other comprehensive income for the periods ended June 30, 2022 and 2021 were as follows: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 (Loss) gain on changes in the fair value of equity investments at FVTOCI $ (88.4) $ 53.5 $ (65.8) $ 74.9 Income tax recovery (expense) in other comprehensive income 11.6 (6.8) 8.7 (9.6) (Loss) gain on changes in the fair value of equity investments at FVTOCI, net of income tax $ (76.8) $ 46.7 $ (57.1) $ 65.3 (b) Loan receivable The loan receivable was extended to Noront Resources Ltd. (“Noront”) as part of the Company’s acquisition of royalty rights in the Ring of Fire mining district of Ontario, Canada, in April 2015. On May 4, 2022, following the acquisition of Noront by Wyloo Metals Pty Ltd., the Company received $42.7 million as full repayment of the loan. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 6 Months Ended |
Jun. 30, 2022 | |
Prepaid expenses and other current assets. | |
Prepaid expenses and other current assets | Note 6 - Prepaid expenses and other current assets Prepaid expenses and other current assets comprised the following: At June 30, At December 31, 2022 2021 Gold bullion $ 30.4 $ 32.4 Prepaid expenses 16.2 18.8 Stream ounces inventory 0.4 0.5 Debt issue costs 0.9 0.9 $ 47.9 $ 52.6 |
Royalty, stream and working int
Royalty, stream and working interests | 6 Months Ended |
Jun. 30, 2022 | |
Royalty, stream and working interests | |
Royalty, stream and working interests | Note 7 - Royalty, stream and working interests (a) Royalties, streams and working interests Royalty, stream and working interests, net of accumulated depletion and impairment charges and reversals, comprised the following: Impairment Accumulated (charges) As at June 30, 2022 Cost depletion (1) reversals Carrying value Mining royalties $ 1,580.5 $ (702.1) $ — $ 878.4 Streams 4,511.9 (1,979.4) — 2,532.5 Energy 1,964.2 (740.2) — 1,224.0 Advanced 363.5 (56.7) — 306.8 Exploration 69.3 (12.8) — 56.5 $ 8,489.4 $ (3,491.2) $ — $ 4,998.2 1. Accumulated depletion includes previously recognized impairment charges and reversals. Impairments Accumulated (charges) As at December 31, 2021 Cost depletion (1) reversals Carrying value Mining royalties $ 1,590.2 $ (687.2) $ — $ 903.0 Streams 4,511.9 (1,888.9) — 2,623.0 Energy 1,972.6 (789.8) 75.5 1,258.3 Advanced 365.9 (49.6) (7.5) 308.8 Exploration 67.1 (10.9) — 56.2 $ 8,507.7 $ (3,426.4) $ 68.0 $ 5,149.3 1. Accumulated depletion includes previously recognized impairment charges and reversals. Changes in royalty, stream and working interests for the periods ended June 30, 2022 and December 31, 2021 were as follows: Mining royalties Streams Energy Advanced Exploration Total Balance at January 1, 2021 $ 406.9 $ 2,653.6 $ 1,214.6 $ 294.0 $ 63.0 $ 4,632.1 Additions 540.0 165.6 24.7 22.7 — 753.0 Transfers 6.3 — — — (6.3) — Impairment (charges) and reversals — — 75.5 (7.5) — 68.0 Depletion (42.7) (196.2) (57.9) (0.6) — (297.4) Impact of foreign exchange (7.5) — 1.4 0.2 (0.5) (6.4) Balance at December 31, 2021 $ 903.0 $ 2,623.0 $ 1,258.3 $ 308.8 $ 56.2 $ 5,149.3 Additions $ 6.3 $ — $ 3.6 $ — $ 1.1 $ 11.0 Depletion (20.2) (90.5) (32.3) (0.2) — (143.2) Impact of foreign exchange (10.7) — (5.6) (1.8) (0.8) (18.9) Balance at June 30, 2022 $ 878.4 $ 2,532.5 $ 1,224.0 $ 306.8 $ 56.5 $ 4,998.2 Of the total net book value as at June 30, 2022, $4,119.6 million (December 31, 2021 - $4,107.5 million) is depletable and $878.6 million (December 31, 2021 - $1,041.8 million) is non-depletable. |
Other assets
Other assets | 6 Months Ended |
Jun. 30, 2022 | |
Other assets | |
Other assets | Note 8 - Other assets Other assets comprised the following: At June 30, At December 31, 2022 2021 Deposits related to Canada Revenue Agency ("CRA") audits $ 42.3 $ 15.6 Energy well equipment, net 5.5 5.4 Right-of-use assets, net 1.2 1.5 Debt issue costs 0.7 1.2 Furniture and fixtures, net 0.1 0.2 $ 49.8 $ 23.9 Deposits related to CRA audits represent security paid in cash by the Company in connection with an audit by the CRA of its 2012-2017 taxation years, as referenced in Note 21. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt | |
Debt | Note 9 - Debt Changes in obligations related to the Company’s credit facilities were as follows: Corporate revolver Size of facility $ 1,000.0 Balance at January 1, 2021 $ — Drawdowns 150.0 Repayment (150.0) Balance at December 31, 2021 $ — Drawdowns $ — Repayment — Balance at June 30, 2022 $ — (a) Corporate Revolver The Company has a $1.0 billion unsecured revolving term credit facility (the “Corporate Revolver”). The Corporate Revolver has a maturity date of July 9, 2025. Advances under the Corporate Revolver bear interest depending on the currency of the advance and the Company’s leverage ratio, and the Corporate Revolver is subject to standby fees even if no amounts are outstanding. The Company has two standby letters of credit in the amount of $17.9 million (C $23.1 million) against the Corporate Revolver in relation to the audit by the CRA of its 2013-2015 taxation years, as referenced in Note 21. (b) FNBC Revolver The Company’s subsidiary, FNBC, had a $100.0 million unsecured revolving term credit facility (the “FNBC Revolver”). The FNBC Revolver had a maturity date of March 20, 2022. As the Company did not renew the FNBC Revolver, the facility expired and is no longer available to draw on. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue. | |
Revenue | Note 10 - Revenue Revenue classified by commodity, geography and type comprised the following: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Commodity Gold (1) $ 190.7 $ 194.9 $ 378.2 $ 384.9 Silver 35.8 45.0 76.9 92.7 Platinum group metals (1) 17.3 22.0 31.5 41.5 Iron ore (2) 14.6 36.9 33.9 41.9 Other mining assets (3) 2.4 1.0 3.5 2.6 Mining $ 260.8 $ 299.8 $ 524.0 $ 563.6 Oil $ 46.2 $ 25.3 $ 85.2 $ 51.2 Gas 37.9 17.9 67.4 32.3 Natural gas liquids 7.4 4.1 14.5 8.9 Energy $ 91.5 $ 47.3 $ 167.1 $ 92.4 $ 352.3 $ 347.1 $ 691.1 $ 656.0 Geography South America (3) $ 89.2 $ 116.0 $ 191.4 $ 204.9 Central America & Mexico 84.5 89.9 163.7 158.1 United States 88.5 66.3 161.6 132.6 Canada (1)(2) 60.7 46.3 112.4 102.0 Rest of World 29.4 28.6 62.0 58.4 $ 352.3 $ 347.1 $ 691.1 $ 656.0 Type Revenue-based royalties $ 130.9 $ 111.4 $ 252.2 $ 205.5 Streams (1) 181.3 199.5 365.5 376.4 Profit-based royalties 27.6 22.2 52.4 50.9 Other (2)(3) 12.5 14.0 21.0 23.2 $ 352.3 $ 347.1 $ 691.1 $ 656.0 1. For Q2 2022, revenue includes a loss of $0.3 million and loss of $0.2 million of provisional pricing adjustments for gold and platinum-group metals, respectively (Q2 2021 – losses of $0.1 million and $0.1 million, respectively). For H1 2022, includes a loss of $0.4 million and gain of $0.4 million of provisional pricing adjustments for gold and platinum group metals, respectively (H1 2021 – a loss of $0.3 million and a gain of $0.5 million, respectively) 2. For Q2 2022 and H1 2022, revenue includes dividend income of $4.5 million and $7.0 million, respectively, from the Company’s equity investment in LIORC (Q2 2021 and H1 2021 – $8.9 million and $13.9 million, respectively). 3. For Q2 2022 and H1 2022, revenue includes dividend income of $1.2 million from the Company’s equity investment in SLM California (Q2 2021 and H1 2021 – nil ) . |
Costs of sales
Costs of sales | 6 Months Ended |
Jun. 30, 2022 | |
Costs of sales | |
Costs of sales | Note 11 - Costs of sales Costs of sales, excluding depletion and depreciation, comprised the following: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Costs of stream sales $ 41.3 $ 44.2 $ 81.3 $ 81.3 Mineral production taxes 0.4 0.5 0.9 1.1 Mining costs of sales $ 41.7 $ 44.7 $ 82.2 $ 82.4 Energy costs of sales 3.8 2.6 6.9 5.5 $ 45.5 $ 47.3 $ 89.1 $ 87.9 |
Share-based compensation expens
Share-based compensation expense | 6 Months Ended |
Jun. 30, 2022 | |
Share-based compensation expense | |
Share-based compensation expense | Note 12 - Share-based compensation expense Share-based compensation expenses comprised the following: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Stock options and restricted share units $ 1.4 $ 1.6 $ 3.0 $ 3.0 Deferred share units (1.4) 3.4 1.3 4.0 $ — $ 5.0 $ 4.3 $ 7.0 Share-based compensation expenses include the amortization expense of equity-settled stock options and restricted share units (“RSUs”), as well as the gain or loss on the mark-to-market of the value of the deferred share units granted to the directors of the Company. |
Related party disclosures
Related party disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Related party disclosures | |
Related party disclosures | Note 13 - Related party disclosures Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. Key management personnel include the Board of Directors and the executive management team. Compensation for key management personnel of the Company was as follows: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Short-term benefits (1) $ 0.9 $ 0.9 $ 1.9 $ 1.7 Share-based payments (2) 0.1 5.0 3.5 5.9 $ 1.0 $ 5.9 $ 5.4 $ 7.6 1. Includes salary, benefits and short-term accrued incentives/other bonuses earned in the period. 2. Represents the expense of stock options and restricted share units and mark-to-market charges on deferred share units during the period. |
Finance income and expenses
Finance income and expenses | 6 Months Ended |
Jun. 30, 2022 | |
Finance income and expenses | |
Finance income and expenses | Note 14 - Finance income and expenses Finance income and expenses for the periods ended June 30, 2022 and 2021 were as follows: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Finance income Interest $ 2.8 $ 1.7 $ 3.5 $ 2.4 $ 2.8 $ 1.7 $ 3.5 $ 2.4 Finance expenses Standby charges $ 0.5 $ 0.5 $ 1.1 $ 1.1 Amortization of debt issue costs 0.3 0.3 0.6 0.5 Interest — 0.2 — 0.2 Accretion of lease liabilities — 0.1 — 0.1 $ 0.8 $ 1.1 $ 1.7 $ 1.9 |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income taxes | |
Income taxes | Note 15 - Income taxes Income tax expense for the periods ended June 30, 2022 and 2021 was as follows: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Current income tax expense $ 30.5 $ 15.2 $ 59.5 $ 37.3 Deferred income tax expense 6.2 14.2 13.2 11.9 Income tax expense $ 36.7 $ 29.4 $ 72.7 $ 49.2 The Company is undergoing an audit by the CRA of its 2012-2017 taxation years, as referenced in Note 21 . |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Jun. 30, 2022 | |
Shareholders' equity | |
Shareholders' equity | Note 16 - Shareholders' equity (a) Share capital The Company’s authorized capital stock includes an unlimited number of common shares (191,556,373 common shares issued and outstanding as at June 30, 2022) having no par value and preferred shares issuable in series (issued - nil). Changes in share capital in for the periods ended June 30, 2022 and December 31, 2021 were as follows: Number of shares Amount Balance at January 1, 2021 190,956,476 $ 5,580.1 Exercise of stock options 5,614 0.5 Vesting of restricted share units 58,457 6.1 Dividend reinvestment plan 313,845 41.8 Balance at December 31, 2021 191,334,392 $ 5,628.5 Exercise of stock options 71,741 $ 6.7 Dividend reinvestment plan 150,240 21.8 Balance at June 30, 2022 191,556,373 $ 5,657.0 (b) Dividends In Q2 2022 and H1 2022, the Company declared dividends of $0.32 and $0.64 per common share, respectively (Q2 2021 and H1 2021 - $0.30 and $0.56 per common share, respectively). Dividends paid in cash and through the Company’s Dividend Reinvestment Plan (“DRIP”) were as follows: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Cash dividends $ 51.3 $ 45.2 $ 101.4 $ 87.0 DRIP dividends 9.7 11.4 21.8 19.5 $ 61.0 $ 56.6 $ 123.2 $ 106.5 |
Earnings per share (EPS)
Earnings per share (EPS) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per share ("EPS") | |
Earnings per share ("EPS") | Note 17 - Earnings per share ("EPS") For the three months ended June 30, 2022 2021 Shares Per Share Shares Per Share Net income (in millions) Amount Net income (in millions) Amount Basic earnings per share $ 196.5 191.5 $ 1.03 $ 175.3 191.0 $ 0.92 Effect of dilutive securities — 0.4 (0.01) — 0.4 — Diluted earnings per share $ 196.5 191.9 $ 1.02 $ 175.3 191.4 $ 0.92 For the six months ended June 30, 2022 2021 Shares Per Share Shares Per Share Net income (in millions) Amount Net income (in millions) Amount Basic earnings per share $ 378.5 191.4 $ 1.98 $ 346.8 191.0 $ 1.82 Effect of dilutive securities — 0.4 (0.01) — 0.3 (0.01) Diluted earnings per share $ 378.5 191.8 $ 1.97 $ 346.8 191.3 $ 1.81 For the three and six months ended June 30, 2022, there were 109,948 stock options (Q2 2021 – 61,594 stock options) excluded from the computation of diluted EPS due to being anti-dilutive. RSUs totaling 66,794 (Q2 2021 - 66,996 RSUs) were excluded from the computation of diluted EPS due to the performance criteria for the vesting of the RSUs not being measurable as at June 30, 2022. |
Segment reporting
Segment reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment reporting | |
Segment reporting | Note 18 - Segment reporting The chief operating decision-maker organizes and manages the business under two operating segments, consisting of royalty, stream and working interests in each of the mining and energy sectors. The Company’s reportable segments for purposes of assessing performance are presented as follows: For the three months ended June 30, 2022 2021 Mining Energy Total Mining Energy Total Revenue $ 260.8 $ 91.5 $ 352.3 $ 299.8 $ 47.3 $ 347.1 Expenses Costs of sales $ 41.7 $ 3.8 $ 45.5 $ 44.7 $ 2.6 $ 47.3 Depletion and depreciation 53.7 15.3 69.0 61.1 15.5 76.6 Segment gross profit $ 165.4 $ 72.4 $ 237.8 $ 194.0 $ 29.2 $ 223.2 For the six months ended June 30, 2022 2021 Mining Energy Total Mining Energy Total Revenue $ 524.0 $ 167.1 $ 691.1 $ 563.6 $ 92.4 $ 656.0 Expenses Costs of sales $ 82.2 $ 6.9 $ 89.1 $ 82.4 $ 5.5 $ 87.9 Depletion and depreciation 110.9 32.3 143.2 120.3 27.0 147.3 Segment gross profit $ 330.9 $ 127.9 $ 458.8 $ 360.9 $ 59.9 $ 420.8 A reconciliation of total segment gross profit to consolidated net income before income taxes is presented below: For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Total segment gross profit $ 237.8 $ 223.2 $ 458.8 $ 420.8 Other operating (income)/expenses General and administrative expenses $ 5.8 $ 5.4 $ 11.4 $ 9.6 Share-based compensation expense - 5.0 4.3 7.0 Impairment and charges - 7.5 - 7.5 Gain on sale of gold bullion (0.2) (0.6) (1.5) (1.2) Depreciation 0.6 0.6 1.0 1.1 Foreign exchange loss (gain) and other expenses (income) 0.4 1.2 (5.8) 1.3 Income before finance items and income taxes $ 231.2 $ 204.1 $ 449.4 $ 395.5 Finance items Finance income $ 2.8 $ 1.7 $ 3.5 $ 2.4 Finance expenses (0.8) (1.1) (1.7) (1.9) Net income before income taxes $ 233.2 $ 204.7 $ 451.2 $ 396.0 |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair value measurements | |
Fair value measurements | Note 19 - Fair value measurements Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same - to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. ● Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. ● Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. There were no transfers between the levels of the fair value hierarchy during the three and six months ended June 30, 2022. Assets and Liabilities Measured at Fair Value on a Recurring Basis: Quoted prices in Significant other Significant active markets for observable unobservable identical assets inputs inputs Aggregate As at June 30, 2022 (Level 1) (Level 2) (Level 3) fair value Receivables from provisional concentrate sales $ — $ 7.4 $ — $ 7.4 Equity investments 169.2 — 41.4 210.6 Warrants — 2.6 — 2.6 $ 169.2 $ 10.0 $ 41.4 $ 220.6 Quoted prices in Significant other Significant active markets for observable unobservable identical assets inputs inputs Aggregate As at December 31, 2021 (Level 1) (Level 2) (Level 3) fair value Receivables from provisional concentrate sales $ — $ 4.8 $ — $ 4.8 Equity investments 231.0 — 4.1 235.1 Warrants — 0.8 — 0.8 $ 231.0 $ 5.6 $ 4.1 $ 240.7 The fair values of the Company’s remaining financial assets and liabilities, which include cash and cash equivalents, receivables, loan receivables, accounts payable and accrued liabilities, and debt approximate their carrying values due to their short-term nature, historically negligible credit losses, fair value of collateral, or floating interest rate. The Company has not offset financial assets with financial liabilities. The valuation techniques that are used to measure fair value are as follows: (a) Receivables The fair values of receivables arising from gold and platinum group metal concentrate sales contracts that contain provisional pricing mechanisms are determined using the appropriate quoted forward prices from the exchange that is the principal active market for the particular metal. As such, these receivables are classified within Level 2 of the fair value hierarchy. (b) Investments The fair values of publicly-traded investments are determined based on a market approach reflecting the closing prices of each particular security at the statement of financial position date. The closing prices are quoted market prices obtained from the exchange that is the principal active market for the particular security, and therefore are classified within Level 1 of the fair value hierarchy. The Company holds two equity investment that do not have a quoted market price in an active market. The Company has assessed the fair value of the instruments based on a valuation technique using unobservable discounted future cash flows. As a result, the fair value is classified within Level 3 of the fair value hierarchy. The fair values of warrants are estimated using the Black-Scholes pricing model which requires the use of inputs that are observable in the market. As such, these investments are classified within Level 2 of the fair value hierarchy. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2022 | |
Commitments | |
Commitments | Note 20 - Commitments (a) Commodity purchase commitments The following table summarizes the Company’s commitments pursuant to the associated precious metals agreements as at June 30, 2022: Attributable payable production to be purchased Per ounce cash payment (1),(2) Term of Date of Interest Gold Silver PGM Gold Silver PGM agreement (3) contract Antamina 0 % 22.5 % (4) 0 % n/a 5 % (5) n/a 40 years 7-Oct-15 Antapaccay — % (6) — % (7) 0 % 20 % (8) 20 % (9) n/a 40 years 10-Feb-16 Candelaria 68 % (10) 68 % (10) 0 % $ 400 $ 4.00 n/a 40 years 6-Oct-14 Cobre Panama Fixed Payment Stream — % (11) — % (12) 0 % $ 418 (13) $ 6.27 (14) n/a 40 years 19-Jan-18 Cobre Panama Floating Payment Stream — % (15) — % (16) 0 % 20 % (17) 20 % (18) n/a 40 years 19-Jan-18 Condestable — % (19) — % (20) 0 % 20 % (21) 20 % (22) n/a 40 years 8-Mar-21 Karma 4.875 % (23) 0 % 0 % 20 % (24) n/a n/a 40 years 11-Aug-14 Guadalupe-Palmarejo 50 % 0 % 0 % $ 800 n/a n/a 40 years 2-Oct-14 Sabodala — % (25) 0 % 0 % 20 % (26) n/a n/a 40 years 25-Sep-20 MWS 25 % 0 % 0 % $ 400 n/a n/a 40 years (27) 2-Mar-12 Cooke 4 7 % 0 % 0 % $ 400 n/a n/a 40 years 5-Nov-09 Sudbury (28) 50 % 0 % 50 % $ 400 n/a $ 400 40 years 15-Jul-08 1 Subject to an annual inflationary adjustment except for Antamina, Antapaccay, Karma, Guadalupe-Palmarejo, and Sabodala. 2 Should the prevailing market price for gold be lower than this amount, the per ounce cash payment will be reduced to the prevailing market price. 3 Subject to successive extensions. 4 Subject to a fixed payability of 90% . Percentage decreases to 15% after 86 million ounces of silver has been delivered under the agreement. 5 Purchase price is 5% of the average silver price at the time of delivery. 6 Gold deliveries are referenced to copper in concentrate shipped with 300 ounces of gold delivered for each 1,000 tonnes of copper in concentrate shipped, until 630,000 ounces of gold has been delivered. Thereafter, percentage is 30% of gold shipped. 7 Silver deliveries are referenced to copper in concentrate shipped with 4,700 ounces of silver delivered for each 1,000 tonnes of copper in concentrate shipped, until 10.0 million ounces of silver has been delivered. Thereafter, percentage is 30% of silver shipped. 8 Purchase price is 20% of the spot price of gold until 750,000 ounces of gold have been delivered, thereafter the purchase price is 30% of the spot price of gold. 9 Purchase price is 20% of the spot price of silver until 12.8 million ounces of silver have been delivered, thereafter the purchase price is 30% of the spot price of silver. 10 Percentage decreases to 40% after 720,000 ounces of gold and 12.0 million ounces of silver have been delivered under the agreement. 11 Gold deliveries are indexed to copper in concentrate produced from the project. 120 ounces of gold per every 1 million pounds of copper produced until 808,000 ounces of gold delivered. Thereafter, 81 ounces of gold per 1 million pounds of copper produced until 1,716,188 ounces of gold delivered. Thereafter, 63.4% of the gold in concentrate. 12 Silver deliveries are indexed to copper in concentrate produced from the project. 1,376 ounces of silver per every 1 million pounds of copper produced until 9,842,000 ounces of silver delivered. Thereafter 1,776 ounces of silver per 1 million pounds of copper produced until 29,731,000 ounces of silver delivered. Thereafter, 62.1% of the silver in concentrate. 13 After 1,341,000 ounces of gold delivered, purchase price is the greater of 50% of spot and $418.27 per ounce. As the mill throughput for 30 consecutive days commensurate with annual capacity of 58 million tonnes per annum was not reached by January 1, 2019, Franco-Nevada will receive a 5% annual rate of return until such mill throughput was achieved, through a reduction of the applicable fixed gold price of $100 per ounce or a delivery of additional ounces for no consideration. 14 After 21,510,000 ounces of silver delivered, purchase price is the greater of 50% of spot and $6.27 per ounce. 15 Gold deliveries are indexed to copper in concentrate produced from the project. 30 ounces of gold per every 1 million pounds of copper produced until 202,000 ounces of gold delivered. Thereafter 20.25 ounces of gold per 1 million pounds of copper produced until 429,047 ounces of gold delivered. Thereafter, 15.85% of the gold in concentrate. 16 Silver deliveries are indexed to copper in concentrate produced from the project. 344 ounces of silver per every 1 million pounds of copper produced until 2,460,500 ounces of silver delivered. Thereafter, 444 ounces of silver per 1 million pounds of copper produced until 7,432,750 ounces of silver delivered. Thereafter 15.53% of the silver in concentrate. 17 After 604,000 ounces of gold delivered, purchase price is 50% of the spot price of gold. As the mill throughput for 30 consecutive days commensurate with annual capacity of 58 million tonnes per annum was not reached by January 1, 2019, Franco-Nevada will receive a 5% annual rate of return until such mill throughput was achieved, through a reduction of the applicable fixed gold price of $100 per ounce or a delivery of additional ounces for no consideration. 18 After 9,618,000 ounces of silver delivered, purchase price is 50% of the spot price of silver. 19 Gold deliveries are fixed at 8,760 ounces per annum from January 1, 2021 to December 31, 2025. Thereafter, 63% of the gold in concentrate until a cumulative total of 87,600 ounces of gold delivered. Thereafter, 25% of the gold in concentrate. 20 Silver deliveries are fixed at 291,000 ounces per annum from January 1, 2021 to December 31, 2025. Thereafter, 63% of the silver in concentrate until a cumulative total of 2,910,000 ounces of silver delivered. Thereafter, 25% of the silver in concentrate. 21 Purchase price is 20% of the spot price of gold at the time of delivery. 22 Purchase price is 20% of the spot price of silver at the time of delivery. 23 Gold deliveries were fixed until February 28, 2021. Percentage is now 4.875% of gold production. 24 Purchase price is 20% of the average gold price at the time of delivery. 25 Based on amended agreement with an effective date of September 1, 2020, gold deliveries are fixed at 783.33 ounces per month until 105,750 ounces of gold is delivered. Thereafter, percentage is 6% of gold production (subject to reconciliation after fixed delivery period to determine if Franco-Nevada would have received more or less than 105,750 ounces of gold under the original 6% variable stream for such period, entitling the operator to a credit for an over-delivery applied against future stream deliveries or a one-time additional delivery to Franco-Nevada for an under-delivery). 26 Purchase price is 20% of prevailing market price at the time of delivery. 27 Agreement is capped at 312,500 ounces of gold. 28 The Company is committed to purchase 50% of the precious metals contained in ore from the properties. Payment is based on gold equivalent ounces. For McCreedy West, effective June 1, 2021, purchase price per gold equivalent ounce is determined based on the monthly average gold spot price: (i) when the gold spot price is less than $800 per ounce, the purchase price is the prevailing monthly average gold spot price; (ii) when the gold spot price is greater than $800 per ounce but less than $1,333 per ounce, the purchase price is $800 per ounce; (iii) when the gold spot price is greater than $1,333 per ounce but less than $2,000 per ounce, the purchase price is 60% of the prevailing monthly average gold spot price; and (iv) when the gold spot price is greater than $2,000 , the purchase price is $1,200 per ounce. (b) Capital commitments The Company is committed to funding its share of the acquisition of mineral rights acquired through the Royalty Acquisition Venture with Continental as described in Note 3 (e). The Company also has commitments of $12.5 million for contingent payments in relation to its Rosemont/Copper World 0.585% NSR acquired in November 2021, and $8.0 million for contingent payments in relation to its Rio Baker (Salares Norte) royalty. Subsequent to Q2 2022, as of July 18, 2022, the Company is committed to funding its acquisition of the Stream and its obligations under the Term Loan in relation to the Tocantinzinho project as described in Note 3 (a). |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Contingencies | |
Contingencies | Note 21 - Contingencies Canada Revenue Agency Audit The CRA is conducting an audit of Franco-Nevada for the 2012-2017 taxation years. During the quarter, the Company received a Notice of Reassessment for the 2017 taxation year in relation to the Canadian Domestic Tax matters, as further detailed below in Note 21 (a). The Company has filed a formal Notice of Objection against the reassessment and has posted security in the form of cash for 50% of the reassessed amounts. Management believes that the Company and its subsidiaries have filed all tax returns and paid all applicable taxes in compliance with Canadian and applicable foreign tax laws and, as a result, no liabilities have been recorded in the financial statements of the Company for the Reassessments (as defined below), or for any potential tax exposure that may arise in respect of these matters. The Company does not believe that the Reassessments are supported by Canadian tax law and jurisprudence and intends to vigorously defend its tax filing positions. The following table provides a summary of the various CRA audit and reassessment matters further detailed below: CRA Position Taxation Years Reassessed Potential Exposure for Tax, Interest and Penalties (in millions) Canadian Domestic Tax Matters Upfront payment made in connection with precious metal stream agreements should be deducted for income tax purposes in a similar manner to how such amount is expensed for financial statement purposes. 2014, 2015, 2016, 2017 For 2014-2017: Tax: $15.5 (C $19.9 ) Interest and other penalties: $4.4 (C $5.6 ) If CRA were to reassess the 2018-2021 taxation years on the same basis: Tax: $34.3 (C $44.2 ) Interest and other penalties: $3.4 (C $4.3 ) Transfer Pricing (Mexico) Transfer pricing provisions in the Act (as defined below) apply such that a majority of the income earned by the Company’s Mexican subsidiary should be included in the income of the Company and subject to tax in Canada. 2013, 2014, 2015, 2016 For 2013-2016: Tax: $23.3 (C $29.9 ) Transfer pricing penalties: $8.0 (C $10.3 ) for 2013-2015; $1.3 (C $1.7 ) for 2016 under review Interest and other penalties: $11.0 (C $14.2 ) The amounts set forth above do not include any potential relief under the Canada-Mexico tax treaty. The Company’s Mexican subsidiary ceased operations after 2016 and no reassessments for this issue are expected for subsequent years. Transfer Pricing (Barbados) Transfer pricing provisions in the Act (as defined below) apply such that a majority of the income relating to certain precious metal streams earned by the Company’s Barbadian subsidiary should be included in the income of the Company and subject to tax in Canada. 2014, 2015, 2016, 2017 For 2014-2017: Tax: $36.1 (C $46.5 ) Transfer pricing penalties: $1.9 (C $2.5 ) for 2014-2015; $11.7 (C $15.1 ) for 2016-2017 under review Interest and other penalties: $11.7 (C $15.0 ) If CRA were to reassess the 2018-2021 taxation years on the same basis: Tax: $166.6 (C $214.7 ) Transfer pricing penalties: $62.9 (C $81.0 ) Interest and other penalties: $16.4 (C $21.1 ) FAPI (Barbados) The FAPI provisions in the Act (as defined below) apply such that a majority of the income relating to precious metal streams earned by the Company’s Barbadian subsidiary, in 2012 and 2013, should be included in the income of the Company and subject to tax in Canada. 2012, 2013 For 2012-2013: Tax: $5.9 (C $7.7 ) Interest and other penalties: $3.1 (C $4.0 ) Based on CRA’s proposal letter, no reassessments for this issue for years after 2013 are expected. (a) Canadian Domestic Tax Matters (2014-2017) In October 2019, certain wholly-owned Canadian subsidiaries of the Company received Notices of Reassessment for the 2014 and 2015 taxation years (the “2014 and 2015 Domestic Reassessments”) in which the CRA increased income by adjusting the timing of the deduction of the upfront payments which were made in connection with precious metal stream agreements. The CRA’s position is that the upfront payment should be deducted for income tax purposes in a similar manner to how such upfront payment is expensed for financial statement purposes. Consequently, the CRA’s position results in a slower deduction of the upfront payment and an acceleration of the payment of Canadian taxes. This results in the Company being subject to an incremental payment of Federal and provincial income taxes for these years of $1.1 million (C $1.4 million) (after applying available non-capital losses and other deductions) plus estimated interest (calculated to June 30, 2022) and other penalties of $0.2 million (C $0.2 million). The Company has filed formal Notices of Objection with the CRA against the 2014 and 2015 Domestic Reassessments, posted security in cash for 50% of the reassessed amounts, as referenced in Note 8, and has commenced an appeal in the Tax Court of Canada with respect to these reassessments. On September 14, 2021, the Company received a Notice of Reassessment for the 2016 taxation year (the “2016 Domestic Reassessment”) on the same basis as the 2014 and 2015 Domestic Reassessments, resulting in an incremental payment of Federal and provincial income taxes of $7.8 million (C$10.0 million) (after applying available non-capital losses and other deductions) plus interest (calculated to June 30, 2022) and applicable penalties of $2.3 million (C$2.9 million). The Company has filed a formal Notice of Objection with the CRA against the 2016 Domestic Reassessment and has posted security in cash for 50% of the reassessed amounts, as referenced in Note 8. On April 1, 2022, the Company received a Notice of Reassessment for the 2017 taxation year (the “2017 Domestic Reassessment” and, collectively with the 2016 Domestic Reassessment and the 2014 and 2015 Domestic Reassessments, the “Domestic Reassessments”) on the same basis as the 2014 and 2015 Domestic Reassessments, resulting in an incremental payment of Federal and provincial income taxes of $6.6 million (C $8.5 million) (after applying available non-capital losses and other deductions) plus interest (calculated to June 30, 2022) and applicable penalties of $1.9 million (C $2.5 million). The Company has filed a formal Notice of Objection with the CRA against the 2017 Domestic Reassessment and has posted security in cash for 50% of the reassessed amounts, as referenced in Note 8. If the CRA were to reassess the particular Canadian subsidiaries for taxation years 2018 through 2021 on the same basis, the Company estimates that it would be subject to an incremental payment of Canadian tax (after applying available non-capital losses and other deductions) of approximately $34.3 million (C $44.2 million) plus interest (calculated to June 30, 2022) and other penalties of approximately $3.4 million (C $4.3 million). (b) Mexico (2013-2016) In December 2018 and December 2019, the Company received Notices of Reassessment from the CRA for the 2013 taxation year (the “2013 Reassessment”) and for the 2014 and 2015 taxation years (the “2014 and 2015 Reassessments”, collectively with the 2013 Reassessment, the “2013-2015 Reassessments”) in relation to its Mexican subsidiary. The reassessments were made on the basis of the transfer pricing provisions in the Income Tax Act In December 2020, the CRA issued revised 2013-2015 Reassessments to include transfer pricing penalties of $8.0 million (C$10.3 million). The Company has filed formal Notices of Objection with the CRA against these revised reassessments and has posted security in the form of cash for of the reassessed amounts of penalties, as referenced in Note 8. The Company has commenced an appeal in the Tax Court of Canada with respect to the 2013-2015 Reassessments. On December 21, 2021, the Company received a Notice of Reassessment for the 2016 taxation year (the “2016 Reassessment”) on the same basis as the 2013-2015 Reassessments, resulting in additional Federal and provincial income taxes of $3.6 million (C$4.6 million) plus estimated interest (calculated to June 30, 2022) and other penalties of $1.2 million (C$1.5 million) but before any relief under the Canada-Mexico tax treaty. The Company’s Mexican subsidiary ceased operations after 2016 and no reassessments are expected for subsequent years. The 2016 Reassessment did not include transfer pricing penalties which are currently under review. If the CRA were to apply transfer pricing penalties, the Company estimates that the amount would be approximately For taxation years 2013 through 2016, the Company’s Mexican subsidiary paid a total of $34.1 million (490.3 million Pesos) in cash taxes, at a 30% tax rate, to the Mexican tax authorities on income earned in Mexico. If required, the Company intends to seek relief from double taxation under the Canada-Mexico tax treaty. (c) Barbados (2014-2017) The 2014 and 2015 Reassessments also reassess the Company in relation to its Barbadian subsidiary. The reassessments were made on the basis of the transfer pricing provisions in the Act and assert that a majority of the income relating to certain precious metal streams earned by the Barbadian subsidiary should have been included in the income of the Company and subject to tax in Canada, resulting in additional Federal and provincial income taxes of $5.2 million (C$6.7 million) plus estimated interest (calculated to June 30, 2022) and other penalties of $2.4 million (C$3.1 million). As noted previously, the Company has filed formal Notices of Objection with the CRA against the 2014 and 2015 Reassessments and has posted security in the form of a standby letter of credit for 50% of the reassessed amounts, as referenced in Note 9 (a). As noted above, in December 2020, the CRA issued revised 2014 and 2015 Reassessments to include transfer pricing penalties of $1.9 million (C$2.5 million). The Company has filed formal Notices of Objection with the CRA against these revised reassessments and has posted security in the form of cash for On December 21, 2021, the Company received the 2016 Reassessment as well as a Notice of Reassessment for the 2017 taxation year (the “2017 Reassessment”, collectively with the 2016 Reassessment, the “2016 and 2017 Reassessments”) that reassess the Company in relation to its Barbadian subsidiary on the same basis as the 2014 and 2015 Reassessments, resulting in additional Federal and provincial income taxes of $30.9 million (C$39.8 million) plus estimated interest (calculated to June 30, 2022) and other penalties of $9.3 million (C$11.9 million). The 2016 and 2017 Reassessments did not include transfer pricing penalties which are currently under review. If the CRA were to apply transfer pricing penalties, the Company estimates that the amounts would be approximately If the CRA were to reassess the Company for taxation years 2018 through 2021 on the same basis and continue to apply transfer pricing penalties, the Company estimates that it would be subject to additional Canadian tax for these years of approximately $166.6 million (C$214.7 million), transfer pricing penalties of approximately $62.9 million (C$81.0 million) plus interest (calculated to June 30, 2022) and other penalties of approximately $16.4 million (C$21.1 million). (d) Barbados (2012-2013) In August 2020, the Company received Notices of Reassessment for the 2012 and 2013 taxation years (the “FAPI Reassessments” and, collectively with the Domestic Reassessments, the 2013 Reassessment, the 2014 and 2015 Reassessments, and the 2016 and 2017 Reassessments, the “Reassessments”) in relation to its Barbadian subsidiary. The FAPI Reassessments assert that a majority of the income relating to precious metal streams earned by the Barbadian subsidiary, in those years, should have been included in the income of its Canadian parent company and subject to tax in Canada as Foreign Accrual Property Income (“FAPI”). The CRA has noted that its position may not extend beyond the 2013 taxation year. The FAPI Reassessments result in additional Federal and provincial income taxes of $5.9 million (C$7.7 million) plus estimated interest (calculated to June 30, 2022) and other penalties of $3.1 million (C$4.0 million). The Company has filed formal Notices of Objection with the CRA against the FAPI Reassessments, has posted security in cash for 50% of the reassessed amounts, as referenced in Note 8, and has commenced an appeal in the Tax Court of Canada with respect to these reassessments. The CRA audit is ongoing and there can be no assurance that the CRA will not further challenge the manner in which the Company or any of its subsidiaries has filed its tax returns and reported its income. In the event that the CRA successfully challenges the manner in which the Company or a subsidiary has filed its tax returns and reported its income, this could potentially result in additional income taxes, penalties and interest, which could have a material adverse effect on the Company. |
Significant accounting polici_2
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Significant accounting policies | |
Basis of presentation | (a) Basis of presentation These unaudited condensed consolidated interim financial statements include the accounts of Franco-Nevada and its wholly-owned subsidiaries (its “subsidiaries”) (hereinafter together with Franco-Nevada, the “Company”). These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of condensed interim financial statements, including IAS 34 Interim Financial Reporting The financial information included herein reflects all adjustments, consisting only of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. Seasonality is not considered to have a significant impact over the condensed consolidated interim financial statements. Taxes on income in the interim period have been accrued using the tax rates that would be applicable to expected total annual income. |
Significant judgments, estimates and assumptions | (b) Significant judgments, estimates and assumptions The preparation of consolidated financial statements in accordance with IFRS requires the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The areas of judgment and estimation are consistent with those reported in the annual consolidated financial statements for the year ended December 31, 2021. |
New and Amended Accounting Standards | (c) New and Amended Accounting Standards Certain new accounting standards and interpretations have been published that are currently effective requirements or forthcoming requirements. These standards are not expected to have a material impact on the Company’s current or future reporting periods. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | At June 30, At December 31, 2022 2021 Cash deposits $ 541.2 $ 529.7 Term deposits 369.4 9.6 $ 910.6 $ 539.3 |
Investments and loan receivab_2
Investments and loan receivable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments and loan receivable | |
Schedule of investments and loan receivable | At June 30, At December 31, 2022 2021 Loan receivable $ — $ 39.7 $ — $ 39.7 Equity investments $ 210.6 $ 235.1 Warrants 2.6 0.8 $ 213.2 $ 235.9 |
Schedule of equity method investments | At June 30, At December 31, 2022 2021 Labrador Iron Ore Royalty Corporation ("LIORC") $ 139.3 $ 187.4 SLM California 37.4 — Other 33.9 47.7 $ 210.6 $ 235.1 |
Schedule of unrealized gains (losses) on available-for-sale investments recognized in other comprehensive income | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 (Loss) gain on changes in the fair value of equity investments at FVTOCI $ (88.4) $ 53.5 $ (65.8) $ 74.9 Income tax recovery (expense) in other comprehensive income 11.6 (6.8) 8.7 (9.6) (Loss) gain on changes in the fair value of equity investments at FVTOCI, net of income tax $ (76.8) $ 46.7 $ (57.1) $ 65.3 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Prepaid expenses and other current assets. | |
The schedule of prepaid expenses and other current assets | At June 30, At December 31, 2022 2021 Gold bullion $ 30.4 $ 32.4 Prepaid expenses 16.2 18.8 Stream ounces inventory 0.4 0.5 Debt issue costs 0.9 0.9 $ 47.9 $ 52.6 |
Royalty, stream and working i_2
Royalty, stream and working interests (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Royalty, stream and working interests | |
Disclosure of detailed information about royalty, stream and working interest, net | Impairment Accumulated (charges) As at June 30, 2022 Cost depletion (1) reversals Carrying value Mining royalties $ 1,580.5 $ (702.1) $ — $ 878.4 Streams 4,511.9 (1,979.4) — 2,532.5 Energy 1,964.2 (740.2) — 1,224.0 Advanced 363.5 (56.7) — 306.8 Exploration 69.3 (12.8) — 56.5 $ 8,489.4 $ (3,491.2) $ — $ 4,998.2 1. Accumulated depletion includes previously recognized impairment charges and reversals. Impairments Accumulated (charges) As at December 31, 2021 Cost depletion (1) reversals Carrying value Mining royalties $ 1,590.2 $ (687.2) $ — $ 903.0 Streams 4,511.9 (1,888.9) — 2,623.0 Energy 1,972.6 (789.8) 75.5 1,258.3 Advanced 365.9 (49.6) (7.5) 308.8 Exploration 67.1 (10.9) — 56.2 $ 8,507.7 $ (3,426.4) $ 68.0 $ 5,149.3 1. Accumulated depletion includes previously recognized impairment charges and reversals. |
Disclosure of detailed information about royalty, stream and working interest, net rollforward | Mining royalties Streams Energy Advanced Exploration Total Balance at January 1, 2021 $ 406.9 $ 2,653.6 $ 1,214.6 $ 294.0 $ 63.0 $ 4,632.1 Additions 540.0 165.6 24.7 22.7 — 753.0 Transfers 6.3 — — — (6.3) — Impairment (charges) and reversals — — 75.5 (7.5) — 68.0 Depletion (42.7) (196.2) (57.9) (0.6) — (297.4) Impact of foreign exchange (7.5) — 1.4 0.2 (0.5) (6.4) Balance at December 31, 2021 $ 903.0 $ 2,623.0 $ 1,258.3 $ 308.8 $ 56.2 $ 5,149.3 Additions $ 6.3 $ — $ 3.6 $ — $ 1.1 $ 11.0 Depletion (20.2) (90.5) (32.3) (0.2) — (143.2) Impact of foreign exchange (10.7) — (5.6) (1.8) (0.8) (18.9) Balance at June 30, 2022 $ 878.4 $ 2,532.5 $ 1,224.0 $ 306.8 $ 56.5 $ 4,998.2 |
Other assets (Tables)
Other assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other assets | |
Schedule of Other assets | At June 30, At December 31, 2022 2021 Deposits related to Canada Revenue Agency ("CRA") audits $ 42.3 $ 15.6 Energy well equipment, net 5.5 5.4 Right-of-use assets, net 1.2 1.5 Debt issue costs 0.7 1.2 Furniture and fixtures, net 0.1 0.2 $ 49.8 $ 23.9 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt | |
Schedule of changes in obligations related to the Credit Facility | Corporate revolver Size of facility $ 1,000.0 Balance at January 1, 2021 $ — Drawdowns 150.0 Repayment (150.0) Balance at December 31, 2021 $ — Drawdowns $ — Repayment — Balance at June 30, 2022 $ — |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue. | |
Schedule of Revenue | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Commodity Gold (1) $ 190.7 $ 194.9 $ 378.2 $ 384.9 Silver 35.8 45.0 76.9 92.7 Platinum group metals (1) 17.3 22.0 31.5 41.5 Iron ore (2) 14.6 36.9 33.9 41.9 Other mining assets (3) 2.4 1.0 3.5 2.6 Mining $ 260.8 $ 299.8 $ 524.0 $ 563.6 Oil $ 46.2 $ 25.3 $ 85.2 $ 51.2 Gas 37.9 17.9 67.4 32.3 Natural gas liquids 7.4 4.1 14.5 8.9 Energy $ 91.5 $ 47.3 $ 167.1 $ 92.4 $ 352.3 $ 347.1 $ 691.1 $ 656.0 Geography South America (3) $ 89.2 $ 116.0 $ 191.4 $ 204.9 Central America & Mexico 84.5 89.9 163.7 158.1 United States 88.5 66.3 161.6 132.6 Canada (1)(2) 60.7 46.3 112.4 102.0 Rest of World 29.4 28.6 62.0 58.4 $ 352.3 $ 347.1 $ 691.1 $ 656.0 Type Revenue-based royalties $ 130.9 $ 111.4 $ 252.2 $ 205.5 Streams (1) 181.3 199.5 365.5 376.4 Profit-based royalties 27.6 22.2 52.4 50.9 Other (2)(3) 12.5 14.0 21.0 23.2 $ 352.3 $ 347.1 $ 691.1 $ 656.0 1. For Q2 2022, revenue includes a loss of $0.3 million and loss of $0.2 million of provisional pricing adjustments for gold and platinum-group metals, respectively (Q2 2021 – losses of $0.1 million and $0.1 million, respectively). For H1 2022, includes a loss of $0.4 million and gain of $0.4 million of provisional pricing adjustments for gold and platinum group metals, respectively (H1 2021 – a loss of $0.3 million and a gain of $0.5 million, respectively) 2. For Q2 2022 and H1 2022, revenue includes dividend income of $4.5 million and $7.0 million, respectively, from the Company’s equity investment in LIORC (Q2 2021 and H1 2021 – $8.9 million and $13.9 million, respectively). 3. For Q2 2022 and H1 2022, revenue includes dividend income of $1.2 million from the Company’s equity investment in SLM California (Q2 2021 and H1 2021 – nil ) . |
Costs of sales (Tables)
Costs of sales (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Costs of sales | |
Schedule of Costs of sales | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Costs of stream sales $ 41.3 $ 44.2 $ 81.3 $ 81.3 Mineral production taxes 0.4 0.5 0.9 1.1 Mining costs of sales $ 41.7 $ 44.7 $ 82.2 $ 82.4 Energy costs of sales 3.8 2.6 6.9 5.5 $ 45.5 $ 47.3 $ 89.1 $ 87.9 |
Share-based compensation expe_2
Share-based compensation expense (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-based compensation expense | |
Schedule of Share-based compensation expense | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Stock options and restricted share units $ 1.4 $ 1.6 $ 3.0 $ 3.0 Deferred share units (1.4) 3.4 1.3 4.0 $ — $ 5.0 $ 4.3 $ 7.0 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related party disclosures | |
Schedule of compensation for key management personnel | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Short-term benefits (1) $ 0.9 $ 0.9 $ 1.9 $ 1.7 Share-based payments (2) 0.1 5.0 3.5 5.9 $ 1.0 $ 5.9 $ 5.4 $ 7.6 1. Includes salary, benefits and short-term accrued incentives/other bonuses earned in the period. 2. Represents the expense of stock options and restricted share units and mark-to-market charges on deferred share units during the period. |
Finance income and expenses (Ta
Finance income and expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Finance income and expenses | |
Schedule of finance income and expenses | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Finance income Interest $ 2.8 $ 1.7 $ 3.5 $ 2.4 $ 2.8 $ 1.7 $ 3.5 $ 2.4 Finance expenses Standby charges $ 0.5 $ 0.5 $ 1.1 $ 1.1 Amortization of debt issue costs 0.3 0.3 0.6 0.5 Interest — 0.2 — 0.2 Accretion of lease liabilities — 0.1 — 0.1 $ 0.8 $ 1.1 $ 1.7 $ 1.9 |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income taxes | |
Schedule of income tax expense | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Current income tax expense $ 30.5 $ 15.2 $ 59.5 $ 37.3 Deferred income tax expense 6.2 14.2 13.2 11.9 Income tax expense $ 36.7 $ 29.4 $ 72.7 $ 49.2 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of changes in share capital | Number of shares Amount Balance at January 1, 2021 190,956,476 $ 5,580.1 Exercise of stock options 5,614 0.5 Vesting of restricted share units 58,457 6.1 Dividend reinvestment plan 313,845 41.8 Balance at December 31, 2021 191,334,392 $ 5,628.5 Exercise of stock options 71,741 $ 6.7 Dividend reinvestment plan 150,240 21.8 Balance at June 30, 2022 191,556,373 $ 5,657.0 |
Schedule of dividends paid | For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Cash dividends $ 51.3 $ 45.2 $ 101.4 $ 87.0 DRIP dividends 9.7 11.4 21.8 19.5 $ 61.0 $ 56.6 $ 123.2 $ 106.5 |
Earnings per share (EPS) (Table
Earnings per share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per share ("EPS") | |
Schedule of basic and diluted EPS | For the three months ended June 30, 2022 2021 Shares Per Share Shares Per Share Net income (in millions) Amount Net income (in millions) Amount Basic earnings per share $ 196.5 191.5 $ 1.03 $ 175.3 191.0 $ 0.92 Effect of dilutive securities — 0.4 (0.01) — 0.4 — Diluted earnings per share $ 196.5 191.9 $ 1.02 $ 175.3 191.4 $ 0.92 For the six months ended June 30, 2022 2021 Shares Per Share Shares Per Share Net income (in millions) Amount Net income (in millions) Amount Basic earnings per share $ 378.5 191.4 $ 1.98 $ 346.8 191.0 $ 1.82 Effect of dilutive securities — 0.4 (0.01) — 0.3 (0.01) Diluted earnings per share $ 378.5 191.8 $ 1.97 $ 346.8 191.3 $ 1.81 |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment reporting | |
Schedule of reportable segments for purposes of assessing performance | For the three months ended June 30, 2022 2021 Mining Energy Total Mining Energy Total Revenue $ 260.8 $ 91.5 $ 352.3 $ 299.8 $ 47.3 $ 347.1 Expenses Costs of sales $ 41.7 $ 3.8 $ 45.5 $ 44.7 $ 2.6 $ 47.3 Depletion and depreciation 53.7 15.3 69.0 61.1 15.5 76.6 Segment gross profit $ 165.4 $ 72.4 $ 237.8 $ 194.0 $ 29.2 $ 223.2 For the six months ended June 30, 2022 2021 Mining Energy Total Mining Energy Total Revenue $ 524.0 $ 167.1 $ 691.1 $ 563.6 $ 92.4 $ 656.0 Expenses Costs of sales $ 82.2 $ 6.9 $ 89.1 $ 82.4 $ 5.5 $ 87.9 Depletion and depreciation 110.9 32.3 143.2 120.3 27.0 147.3 Segment gross profit $ 330.9 $ 127.9 $ 458.8 $ 360.9 $ 59.9 $ 420.8 For the three months ended For the six months ended June 30, June 30, 2022 2021 2022 2021 Total segment gross profit $ 237.8 $ 223.2 $ 458.8 $ 420.8 Other operating (income)/expenses General and administrative expenses $ 5.8 $ 5.4 $ 11.4 $ 9.6 Share-based compensation expense - 5.0 4.3 7.0 Impairment and charges - 7.5 - 7.5 Gain on sale of gold bullion (0.2) (0.6) (1.5) (1.2) Depreciation 0.6 0.6 1.0 1.1 Foreign exchange loss (gain) and other expenses (income) 0.4 1.2 (5.8) 1.3 Income before finance items and income taxes $ 231.2 $ 204.1 $ 449.4 $ 395.5 Finance items Finance income $ 2.8 $ 1.7 $ 3.5 $ 2.4 Finance expenses (0.8) (1.1) (1.7) (1.9) Net income before income taxes $ 233.2 $ 204.7 $ 451.2 $ 396.0 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Recurring Basis | |
Fair value measurements | |
Schedule of Assets and Liabilities Measured at Fair Value | Quoted prices in Significant other Significant active markets for observable unobservable identical assets inputs inputs Aggregate As at June 30, 2022 (Level 1) (Level 2) (Level 3) fair value Receivables from provisional concentrate sales $ — $ 7.4 $ — $ 7.4 Equity investments 169.2 — 41.4 210.6 Warrants — 2.6 — 2.6 $ 169.2 $ 10.0 $ 41.4 $ 220.6 Quoted prices in Significant other Significant active markets for observable unobservable identical assets inputs inputs Aggregate As at December 31, 2021 (Level 1) (Level 2) (Level 3) fair value Receivables from provisional concentrate sales $ — $ 4.8 $ — $ 4.8 Equity investments 231.0 — 4.1 235.1 Warrants — 0.8 — 0.8 $ 231.0 $ 5.6 $ 4.1 $ 240.7 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments | |
Schedule of company's commitment to pay for metals pursuant to the agreement | Attributable payable production to be purchased Per ounce cash payment (1),(2) Term of Date of Interest Gold Silver PGM Gold Silver PGM agreement (3) contract Antamina 0 % 22.5 % (4) 0 % n/a 5 % (5) n/a 40 years 7-Oct-15 Antapaccay — % (6) — % (7) 0 % 20 % (8) 20 % (9) n/a 40 years 10-Feb-16 Candelaria 68 % (10) 68 % (10) 0 % $ 400 $ 4.00 n/a 40 years 6-Oct-14 Cobre Panama Fixed Payment Stream — % (11) — % (12) 0 % $ 418 (13) $ 6.27 (14) n/a 40 years 19-Jan-18 Cobre Panama Floating Payment Stream — % (15) — % (16) 0 % 20 % (17) 20 % (18) n/a 40 years 19-Jan-18 Condestable — % (19) — % (20) 0 % 20 % (21) 20 % (22) n/a 40 years 8-Mar-21 Karma 4.875 % (23) 0 % 0 % 20 % (24) n/a n/a 40 years 11-Aug-14 Guadalupe-Palmarejo 50 % 0 % 0 % $ 800 n/a n/a 40 years 2-Oct-14 Sabodala — % (25) 0 % 0 % 20 % (26) n/a n/a 40 years 25-Sep-20 MWS 25 % 0 % 0 % $ 400 n/a n/a 40 years (27) 2-Mar-12 Cooke 4 7 % 0 % 0 % $ 400 n/a n/a 40 years 5-Nov-09 Sudbury (28) 50 % 0 % 50 % $ 400 n/a $ 400 40 years 15-Jul-08 1 Subject to an annual inflationary adjustment except for Antamina, Antapaccay, Karma, Guadalupe-Palmarejo, and Sabodala. 2 Should the prevailing market price for gold be lower than this amount, the per ounce cash payment will be reduced to the prevailing market price. 3 Subject to successive extensions. 4 Subject to a fixed payability of 90% . Percentage decreases to 15% after 86 million ounces of silver has been delivered under the agreement. 5 Purchase price is 5% of the average silver price at the time of delivery. 6 Gold deliveries are referenced to copper in concentrate shipped with 300 ounces of gold delivered for each 1,000 tonnes of copper in concentrate shipped, until 630,000 ounces of gold has been delivered. Thereafter, percentage is 30% of gold shipped. 7 Silver deliveries are referenced to copper in concentrate shipped with 4,700 ounces of silver delivered for each 1,000 tonnes of copper in concentrate shipped, until 10.0 million ounces of silver has been delivered. Thereafter, percentage is 30% of silver shipped. 8 Purchase price is 20% of the spot price of gold until 750,000 ounces of gold have been delivered, thereafter the purchase price is 30% of the spot price of gold. 9 Purchase price is 20% of the spot price of silver until 12.8 million ounces of silver have been delivered, thereafter the purchase price is 30% of the spot price of silver. 10 Percentage decreases to 40% after 720,000 ounces of gold and 12.0 million ounces of silver have been delivered under the agreement. 11 Gold deliveries are indexed to copper in concentrate produced from the project. 120 ounces of gold per every 1 million pounds of copper produced until 808,000 ounces of gold delivered. Thereafter, 81 ounces of gold per 1 million pounds of copper produced until 1,716,188 ounces of gold delivered. Thereafter, 63.4% of the gold in concentrate. 12 Silver deliveries are indexed to copper in concentrate produced from the project. 1,376 ounces of silver per every 1 million pounds of copper produced until 9,842,000 ounces of silver delivered. Thereafter 1,776 ounces of silver per 1 million pounds of copper produced until 29,731,000 ounces of silver delivered. Thereafter, 62.1% of the silver in concentrate. 13 After 1,341,000 ounces of gold delivered, purchase price is the greater of 50% of spot and $418.27 per ounce. As the mill throughput for 30 consecutive days commensurate with annual capacity of 58 million tonnes per annum was not reached by January 1, 2019, Franco-Nevada will receive a 5% annual rate of return until such mill throughput was achieved, through a reduction of the applicable fixed gold price of $100 per ounce or a delivery of additional ounces for no consideration. 14 After 21,510,000 ounces of silver delivered, purchase price is the greater of 50% of spot and $6.27 per ounce. 15 Gold deliveries are indexed to copper in concentrate produced from the project. 30 ounces of gold per every 1 million pounds of copper produced until 202,000 ounces of gold delivered. Thereafter 20.25 ounces of gold per 1 million pounds of copper produced until 429,047 ounces of gold delivered. Thereafter, 15.85% of the gold in concentrate. 16 Silver deliveries are indexed to copper in concentrate produced from the project. 344 ounces of silver per every 1 million pounds of copper produced until 2,460,500 ounces of silver delivered. Thereafter, 444 ounces of silver per 1 million pounds of copper produced until 7,432,750 ounces of silver delivered. Thereafter 15.53% of the silver in concentrate. 17 After 604,000 ounces of gold delivered, purchase price is 50% of the spot price of gold. As the mill throughput for 30 consecutive days commensurate with annual capacity of 58 million tonnes per annum was not reached by January 1, 2019, Franco-Nevada will receive a 5% annual rate of return until such mill throughput was achieved, through a reduction of the applicable fixed gold price of $100 per ounce or a delivery of additional ounces for no consideration. 18 After 9,618,000 ounces of silver delivered, purchase price is 50% of the spot price of silver. 19 Gold deliveries are fixed at 8,760 ounces per annum from January 1, 2021 to December 31, 2025. Thereafter, 63% of the gold in concentrate until a cumulative total of 87,600 ounces of gold delivered. Thereafter, 25% of the gold in concentrate. 20 Silver deliveries are fixed at 291,000 ounces per annum from January 1, 2021 to December 31, 2025. Thereafter, 63% of the silver in concentrate until a cumulative total of 2,910,000 ounces of silver delivered. Thereafter, 25% of the silver in concentrate. 21 Purchase price is 20% of the spot price of gold at the time of delivery. 22 Purchase price is 20% of the spot price of silver at the time of delivery. 23 Gold deliveries were fixed until February 28, 2021. Percentage is now 4.875% of gold production. 24 Purchase price is 20% of the average gold price at the time of delivery. 25 Based on amended agreement with an effective date of September 1, 2020, gold deliveries are fixed at 783.33 ounces per month until 105,750 ounces of gold is delivered. Thereafter, percentage is 6% of gold production (subject to reconciliation after fixed delivery period to determine if Franco-Nevada would have received more or less than 105,750 ounces of gold under the original 6% variable stream for such period, entitling the operator to a credit for an over-delivery applied against future stream deliveries or a one-time additional delivery to Franco-Nevada for an under-delivery). 26 Purchase price is 20% of prevailing market price at the time of delivery. 27 Agreement is capped at 312,500 ounces of gold. 28 The Company is committed to purchase 50% of the precious metals contained in ore from the properties. Payment is based on gold equivalent ounces. For McCreedy West, effective June 1, 2021, purchase price per gold equivalent ounce is determined based on the monthly average gold spot price: (i) when the gold spot price is less than $800 per ounce, the purchase price is the prevailing monthly average gold spot price; (ii) when the gold spot price is greater than $800 per ounce but less than $1,333 per ounce, the purchase price is $800 per ounce; (iii) when the gold spot price is greater than $1,333 per ounce but less than $2,000 per ounce, the purchase price is 60% of the prevailing monthly average gold spot price; and (iv) when the gold spot price is greater than $2,000 , the purchase price is $1,200 per ounce. |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Contingencies | |
Summary of the various CRA audit and reassessment matters | CRA Position Taxation Years Reassessed Potential Exposure for Tax, Interest and Penalties (in millions) Canadian Domestic Tax Matters Upfront payment made in connection with precious metal stream agreements should be deducted for income tax purposes in a similar manner to how such amount is expensed for financial statement purposes. 2014, 2015, 2016, 2017 For 2014-2017: Tax: $15.5 (C $19.9 ) Interest and other penalties: $4.4 (C $5.6 ) If CRA were to reassess the 2018-2021 taxation years on the same basis: Tax: $34.3 (C $44.2 ) Interest and other penalties: $3.4 (C $4.3 ) Transfer Pricing (Mexico) Transfer pricing provisions in the Act (as defined below) apply such that a majority of the income earned by the Company’s Mexican subsidiary should be included in the income of the Company and subject to tax in Canada. 2013, 2014, 2015, 2016 For 2013-2016: Tax: $23.3 (C $29.9 ) Transfer pricing penalties: $8.0 (C $10.3 ) for 2013-2015; $1.3 (C $1.7 ) for 2016 under review Interest and other penalties: $11.0 (C $14.2 ) The amounts set forth above do not include any potential relief under the Canada-Mexico tax treaty. The Company’s Mexican subsidiary ceased operations after 2016 and no reassessments for this issue are expected for subsequent years. Transfer Pricing (Barbados) Transfer pricing provisions in the Act (as defined below) apply such that a majority of the income relating to certain precious metal streams earned by the Company’s Barbadian subsidiary should be included in the income of the Company and subject to tax in Canada. 2014, 2015, 2016, 2017 For 2014-2017: Tax: $36.1 (C $46.5 ) Transfer pricing penalties: $1.9 (C $2.5 ) for 2014-2015; $11.7 (C $15.1 ) for 2016-2017 under review Interest and other penalties: $11.7 (C $15.0 ) If CRA were to reassess the 2018-2021 taxation years on the same basis: Tax: $166.6 (C $214.7 ) Transfer pricing penalties: $62.9 (C $81.0 ) Interest and other penalties: $16.4 (C $21.1 ) FAPI (Barbados) The FAPI provisions in the Act (as defined below) apply such that a majority of the income relating to precious metal streams earned by the Company’s Barbadian subsidiary, in 2012 and 2013, should be included in the income of the Company and subject to tax in Canada. 2012, 2013 For 2012-2013: Tax: $5.9 (C $7.7 ) Interest and other penalties: $3.1 (C $4.0 ) Based on CRA’s proposal letter, no reassessments for this issue for years after 2013 are expected. |
Acquisitions and other transa_2
Acquisitions and other transactions (Details) $ / shares in Units, $ in Millions, $ in Millions | 6 Months Ended | |||||||||
Jul. 25, 2022 USD ($) item | Jul. 18, 2022 USD ($) oz shares | Jul. 18, 2022 USD ($) $ / shares shares | May 02, 2022 USD ($) | Apr. 14, 2022 USD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jul. 18, 2022 $ / shares | Apr. 14, 2022 CAD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Acquisitions | ||||||||||
Total contributions made | $ 3.6 | $ 4.1 | ||||||||
Mineral Rights With Continental Resources Inc | ||||||||||
Acquisitions | ||||||||||
Cumulative investment in royalty acquisition venture | 432 | |||||||||
Mineral Rights With Continental Resources Inc | Top | ||||||||||
Acquisitions | ||||||||||
Total cumulative investment | 88 | |||||||||
Mineral Rights With Continental Resources Inc | Accounts payable | ||||||||||
Acquisitions | ||||||||||
Consideration transferred | $ 0.6 | $ 1.7 | ||||||||
Caserones Royalty, Chile | ||||||||||
Acquisitions | ||||||||||
Consideration transferred | $ 37.4 | |||||||||
Percentage of NSR | 0.4582% | |||||||||
Share Price | $ / shares | $ 3.30 | |||||||||
Castle Mountain Royalty, California | ||||||||||
Acquisitions | ||||||||||
Consideration transferred | $ 6 | |||||||||
Percentage of NSR | 2% | |||||||||
EMX Royalty Corporation | ||||||||||
Acquisitions | ||||||||||
Value of common shares issued in acquisition | $ 10 | $ 12.6 | ||||||||
Number of common shares issued per unit | shares | 1 | |||||||||
Number of common share, each warrant can exercise | shares | 1 | 1 | ||||||||
Exercise price of warrants held | $ / shares | $ 4.45 | |||||||||
Exercise period | 5 years | |||||||||
Number of shares acquired | shares | 3,812,121 | |||||||||
Percentage of Net Smelter Return Castle Mountain | ||||||||||
Acquisitions | ||||||||||
Percentage of NSR | 2.65% | |||||||||
Percentage of Net Smelter Return Pacific Clay | ||||||||||
Acquisitions | ||||||||||
Percentage of NSR | 4.65% | |||||||||
G Mining Ventures, Tocantinzinho Gold Project, Brazil | Acquisition of gold stream | ||||||||||
Acquisitions | ||||||||||
Consideration transferred | $ 250 | $ 250 | ||||||||
Secured term loan receivable | $ 75 | 75 | ||||||||
Percentage of gold produced to be delivered until the threshold is met | 12.50% | |||||||||
Business Acquisition, Percentage Of Gold Produced To Be Delivered For Remaining Life | 7.50% | |||||||||
Threshold Amount To Be Spent On Project to Trigger Draw Down From Deposit | $ 95 | $ 95 | ||||||||
Percentage Of Spot Gold Price Receivable | 20% | 20% | ||||||||
Percentage of fee on undrawn amounts | 1% | |||||||||
Percentage of original issue discount | 2% | |||||||||
Number of securities into which the class of warrant or right may be converted | shares | 11,500,000 | 11,500,000 | ||||||||
Warrants and rights outstanding, term | 5 years | |||||||||
Deliveries of ounces of refined gold threshold | oz | 300,000 | |||||||||
Exercise price per common share | $ / shares | $ 1.90 | |||||||||
Number of shares purchased | shares | 44,687,500 | |||||||||
Gross proceeds from common shares | $ 27.5 | |||||||||
Share price per common share | $ / shares | $ 0.80 | |||||||||
G Mining Ventures, Tocantinzinho Gold Project, Brazil | Acquisition of gold stream | Three Month Term Secured Overnight Financing Rate | ||||||||||
Acquisitions | ||||||||||
Borrowings, adjustment to interest rate basis | 5.75% | 5.75% | ||||||||
Borrowings Adjustment To Interest Rate Basis After Completion Test Are Achieved On The Project | 4.75% | |||||||||
G Mining Ventures, Tocantinzinho Gold Project, Brazil | Acquisition of gold stream | G Mining Ventures | ||||||||||
Acquisitions | ||||||||||
Debt Instrument, Percentage Of Repayment Upon Maturity | 25% | |||||||||
G Mining Ventures, Tocantinzinho Gold Project, Brazil | Acquisition of gold stream | G Mining Ventures | Stream Term Loan | ||||||||||
Acquisitions | ||||||||||
Notional amount | $ 75 | $ 75 | ||||||||
IFRS Debt Instrument Term | 6 years | |||||||||
Debt Instrument, Availability Period | 3 years 6 months | |||||||||
Royalties in Chile | Acquisition of Royalties | ||||||||||
Acquisitions | ||||||||||
Consideration transferred | $ 1 | |||||||||
Number of royalties acquired | item | 7 | |||||||||
Percentage of net smelter return on precious metals | 2% | |||||||||
Percentage of net smelter return on base metals | 1% |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Investments and loan receivable | ||||
Cash deposits | $ 541.2 | $ 529.7 | ||
Term deposits | 369.4 | 9.6 | ||
Cash and cash equivalents | $ 910.6 | $ 539.3 | $ 197.7 | $ 534.2 |
Investments and loan receivab_3
Investments and loan receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
May 04, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Investments and loan receivable | ||||||
Investments (Note 5) | $ 213.2 | $ 213.2 | $ 235.9 | |||
Equity method investments | 210.6 | 210.6 | 235.1 | |||
Unrealized gains losses on available-for-sale investments | ||||||
Loan receivable | 39.7 | |||||
Repayment of loan | $ 42.7 | |||||
Equity investments | ||||||
Investments and loan receivable | ||||||
Investments (Note 5) | 210.6 | 210.6 | 235.1 | |||
Cost of equity investments disposed of | 1.1 | $ 4.6 | 1.1 | $ 4.6 | ||
Gross proceeds from disposal | 1.7 | 12.7 | ||||
Unrealized gains losses on available-for-sale investments | ||||||
(Loss) gain on changes in the fair value of equity investments at FVTOCI | (88.4) | 53.5 | (65.8) | 74.9 | ||
Income tax recovery (expense) in other comprehensive income | 11.6 | (6.8) | 8.7 | (9.6) | ||
(Loss) gain on changes in the fair value of equity investments at FVTOCI, net of income tax | (76.8) | $ 46.7 | (57.1) | $ 65.3 | ||
Labrador Iron Ore Royalty Corporation | ||||||
Investments and loan receivable | ||||||
Equity method investments | 139.3 | 139.3 | 187.4 | |||
SLM California | ||||||
Investments and loan receivable | ||||||
Equity method investments | 37.4 | 37.4 | ||||
Other Equity Investments | ||||||
Investments and loan receivable | ||||||
Equity method investments | 33.9 | 33.9 | 47.7 | |||
Warrants. | ||||||
Investments and loan receivable | ||||||
Investments (Note 5) | $ 2.6 | $ 2.6 | $ 0.8 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets. | ||
Gold bullion | $ 30.4 | $ 32.4 |
Prepaid expenses | 16.2 | 18.8 |
Stream ounces inventory | 0.4 | 0.5 |
Debt issue costs | 0.9 | 0.9 |
Prepaid expenses and other current assets | $ 47.9 | $ 52.6 |
Royalty, stream and working i_3
Royalty, stream and working interests - Royalties, Streams and Working Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2020 | |
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | $ 5,149.3 | $ 4,998.2 | $ 4,632.1 |
Royalty, stream and working interest, net depletable | 4,107.5 | 4,119.6 | |
Royalty, stream and working interest, net non-depletable | 1,041.8 | 878.6 | |
Impairment (charges) and reversals | (68) | ||
Cost | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 8,507.7 | 8,489.4 | |
Accumulated Depletion | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | (3,426.4) | (3,491.2) | |
Impairment (charges) reversals | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 68 | ||
Mining Royalties | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 903 | 878.4 | 406.9 |
Mining Royalties | Cost | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 1,590.2 | 1,580.5 | |
Mining Royalties | Accumulated Depletion | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | (687.2) | (702.1) | |
Streams | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 2,623 | 2,532.5 | 2,653.6 |
Streams | Cost | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 4,511.9 | 4,511.9 | |
Streams | Accumulated Depletion | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | (1,888.9) | (1,979.4) | |
Energy | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 1,258.3 | 1,224 | 1,214.6 |
Impairment (charges) and reversals | (75.5) | ||
Energy | Cost | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 1,972.6 | 1,964.2 | |
Energy | Accumulated Depletion | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | (789.8) | (740.2) | |
Energy | Impairment (charges) reversals | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 75.5 | ||
Advanced | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 308.8 | 306.8 | 294 |
Impairment (charges) and reversals | 7.5 | ||
Advanced | Cost | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 365.9 | 363.5 | |
Advanced | Accumulated Depletion | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | (49.6) | (56.7) | |
Advanced | Impairment (charges) reversals | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | (7.5) | ||
Exploration | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 56.2 | 56.5 | $ 63 |
Exploration | Cost | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | 67.1 | 69.3 | |
Exploration | Accumulated Depletion | |||
Royalty, stream and working interests | |||
Royalty, stream and working interests, net | $ (10.9) | $ (12.8) |
Royalty, stream and working i_4
Royalty, stream and working interests - Rollforward (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Royalty, stream and working interests | ||
Balance at beginning of period | $ 5,149.3 | $ 4,632.1 |
Additions | 11 | 753 |
Impairment (charges) and reversals | 68 | |
Depletion | (143.2) | (297.4) |
Impact of foreign exchange | (18.9) | (6.4) |
Balance at end of period | 4,998.2 | 5,149.3 |
Mining Royalties | ||
Royalty, stream and working interests | ||
Balance at beginning of period | 903 | 406.9 |
Additions | 6.3 | 540 |
Transfers | 6.3 | |
Depletion | (20.2) | (42.7) |
Impact of foreign exchange | (10.7) | (7.5) |
Balance at end of period | 878.4 | 903 |
Streams | ||
Royalty, stream and working interests | ||
Balance at beginning of period | 2,623 | 2,653.6 |
Additions | 165.6 | |
Depletion | (90.5) | (196.2) |
Balance at end of period | 2,532.5 | 2,623 |
Energy | ||
Royalty, stream and working interests | ||
Balance at beginning of period | 1,258.3 | 1,214.6 |
Additions | 3.6 | 24.7 |
Impairment (charges) and reversals | 75.5 | |
Depletion | (32.3) | (57.9) |
Impact of foreign exchange | (5.6) | 1.4 |
Balance at end of period | 1,224 | 1,258.3 |
Advanced | ||
Royalty, stream and working interests | ||
Balance at beginning of period | 308.8 | 294 |
Additions | 22.7 | |
Impairment (charges) and reversals | (7.5) | |
Depletion | (0.2) | (0.6) |
Impact of foreign exchange | (1.8) | 0.2 |
Balance at end of period | 306.8 | 308.8 |
Exploration | ||
Royalty, stream and working interests | ||
Balance at beginning of period | 56.2 | 63 |
Additions | 1.1 | |
Transfers | (6.3) | |
Impact of foreign exchange | (0.8) | (0.5) |
Balance at end of period | $ 56.5 | $ 56.2 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Subsequent events | ||
Deposits related to Canada Revenue Agency ("CRA") audits | $ 42.3 | $ 15.6 |
Energy well equipment, net | 5.5 | 5.4 |
Right-of-use assets, net | 1.2 | 1.5 |
Debt issue costs | 0.7 | 1.2 |
Furniture and fixtures, net | 0.1 | 0.2 |
Other assets | $ 49.8 | $ 23.9 |
Debt (Details)
Debt (Details) $ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2022 CAD ($) | |
Revolving term credit facility | ||||
Drawdowns | $ 150 | |||
Repayment | $ (150) | |||
Credit Facility | ||||
Revolving term credit facility | ||||
Size of facility | $ 1,000 | |||
Drawdowns | $ 150 | |||
Repayment | $ (150) | |||
Maximum borrowing capacity | 1,000 | |||
FNBC Credit Facility | ||||
Revolving term credit facility | ||||
Maximum borrowing capacity | 100 | |||
Letter of credit | ||||
Revolving term credit facility | ||||
Maximum borrowing capacity | $ 17.9 | $ 23.1 | ||
Number of letter of credit | item | 2 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||||
Revenue | $ 352.3 | $ 347.1 | $ 691.1 | $ 656 |
Labrador Iron Ore Royalty Corporation. | ||||
Revenue | ||||
Dividend income | 4.5 | 8.9 | 7 | 13.9 |
SLM California | ||||
Revenue | ||||
Dividend income | 1.2 | 0 | 1.2 | 0 |
Revenue-based royalties | ||||
Revenue | ||||
Revenue | 130.9 | 111.4 | 252.2 | 205.5 |
Streams. | ||||
Revenue | ||||
Revenue | 181.3 | 199.5 | 365.5 | 376.4 |
Profit-based royalties | ||||
Revenue | ||||
Revenue | 27.6 | 22.2 | 52.4 | 50.9 |
Other. | ||||
Revenue | ||||
Revenue | 12.5 | 14 | 21 | 23.2 |
South America | ||||
Revenue | ||||
Revenue | 89.2 | 116 | 191.4 | 204.9 |
Central America & Mexico | ||||
Revenue | ||||
Revenue | 84.5 | 89.9 | 163.7 | 158.1 |
United States | ||||
Revenue | ||||
Revenue | 88.5 | 66.3 | 161.6 | 132.6 |
Canada | ||||
Revenue | ||||
Revenue | 60.7 | 46.3 | 112.4 | 102 |
Rest of World | ||||
Revenue | ||||
Revenue | 29.4 | 28.6 | 62 | 58.4 |
Mining | ||||
Revenue | ||||
Revenue | 260.8 | 299.8 | 524 | 563.6 |
Gold | ||||
Revenue | ||||
Revenue | 190.7 | 194.9 | 378.2 | 384.9 |
Provisional price adjustment | 0.3 | (0.1) | (0.4) | (0.3) |
Silver | ||||
Revenue | ||||
Revenue | 35.8 | 45 | 76.9 | 92.7 |
Platinum-group metals | ||||
Revenue | ||||
Revenue | 17.3 | 22 | 31.5 | 41.5 |
Provisional price adjustment | 0.2 | 0.1 | 0.4 | 0.5 |
Diversified | ||||
Revenue | ||||
Revenue | 91.5 | 47.3 | 167.1 | 92.4 |
Iron Ore | ||||
Revenue | ||||
Revenue | 14.6 | 36.9 | 33.9 | 41.9 |
Other mining commodities | ||||
Revenue | ||||
Revenue | 2.4 | 1 | 3.5 | 2.6 |
Oil | ||||
Revenue | ||||
Revenue | 46.2 | 25.3 | 85.2 | 51.2 |
Gas | ||||
Revenue | ||||
Revenue | 37.9 | 17.9 | 67.4 | 32.3 |
Natural gas liquids | ||||
Revenue | ||||
Revenue | $ 7.4 | $ 4.1 | $ 14.5 | $ 8.9 |
Costs of sales (Details)
Costs of sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Costs of sales | ||||
Cost of stream sales | $ 41.3 | $ 44.2 | $ 81.3 | $ 81.3 |
Mineral production taxes | 0.4 | 0.5 | 0.9 | 1.1 |
Mining costs of sales | 41.7 | 44.7 | 82.2 | 82.4 |
Energy costs of sales | 3.8 | 2.6 | 6.9 | 5.5 |
Total costs of sales | $ 45.5 | $ 47.3 | $ 89.1 | $ 87.9 |
Share-based compensation expe_3
Share-based compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share-based compensation expense | $ 5 | $ 4.3 | $ 7 | |
Stock options and restricted share units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share-based compensation expense | $ 1.4 | 1.6 | 3 | 3 |
Deferred Share Units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share-based compensation expense | $ (1.4) | $ 3.4 | $ 1.3 | $ 4 |
Related party disclosures (Deta
Related party disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related party disclosures | ||||
Short-term benefits | $ 0.9 | $ 0.9 | $ 1.9 | $ 1.7 |
Share-based payments | 0.1 | 5 | 3.5 | 5.9 |
Total | $ 1 | $ 5.9 | $ 5.4 | $ 7.6 |
Finance income and expenses (De
Finance income and expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finance income | ||||
Interest | $ 2.8 | $ 1.7 | $ 3.5 | $ 2.4 |
Finance income | 2.8 | 1.7 | 3.5 | 2.4 |
Finance expenses | ||||
Standby charges | 0.5 | 0.5 | 1.1 | 1.1 |
Amortization of debt issue costs | 0.3 | 0.3 | 0.6 | 0.5 |
Interest | 0.2 | 0.2 | ||
Accretion of lease liabilities | 0.1 | 0.1 | ||
Finance expenses | $ 0.8 | $ 1.1 | $ 1.7 | $ 1.9 |
Income taxes - Other (Details)
Income taxes - Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current income tax expense | ||||
Current income tax expense | $ 30.5 | $ 15.2 | $ 59.5 | $ 37.3 |
Deferred income tax expense | 6.2 | 14.2 | 13.2 | 11.9 |
Income tax expense | $ 36.7 | $ 29.4 | $ 72.7 | $ 49.2 |
Shareholders' equity - Common S
Shareholders' equity - Common Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Reconciliation Of Amount Of Shares Outstanding [Abstract] | |||||
Balance at the beginning period | $ 5,628.5 | ||||
Exercise of stock options | 5.2 | $ 0.3 | |||
Dividend reinvestment plan | $ 9.7 | $ 11.4 | 21.8 | $ 19.5 | |
Balance at the ending period | $ 5,657 | $ 5,657 | $ 5,628.5 | ||
Common shares | |||||
Shareholders' equity | |||||
Shares issued | 191,556,373 | 191,556,373 | |||
Shares, par value (dollars per share) | $ 0 | $ 0 | |||
Preferred shares | |||||
Shareholders' equity | |||||
Shares issued | 0 | 0 | |||
Share capital | |||||
Reconciliation of number of shares outstanding [abstract] | |||||
Number of shares outstanding at beginning of period | 191,334,392 | 190,956,476 | 190,956,476 | ||
Exercise of stock options | 71,741 | 5,614 | |||
Vesting of restricted share units | 58,457 | ||||
Dividend reinvestment plan | 150,240 | 313,845 | |||
Number of shares outstanding at end of period | 191,556,373 | 191,556,373 | 191,334,392 | ||
Reconciliation Of Amount Of Shares Outstanding [Abstract] | |||||
Balance at the beginning period | $ 5,628.5 | $ 5,580.1 | $ 5,580.1 | ||
Exercise of stock options | 6.7 | 0.4 | 0.5 | ||
Vesting of restricted share units | 6.1 | ||||
Dividend reinvestment plan | 21.8 | $ 19.5 | 41.8 | ||
Balance at the ending period | $ 5,657 | $ 5,657 | $ 5,628.5 |
Shareholders' equity - Dividend
Shareholders' equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shareholders' equity | ||||
Dividend declared per share | $ 0.32 | $ 0.30 | $ 0.64 | $ 0.56 |
Cash dividends | $ 51.3 | $ 45.2 | $ 101.4 | $ 87 |
DRIP dividends | 9.7 | 11.4 | 21.8 | 19.5 |
Dividend paid | $ 61 | $ 56.6 | $ 123.2 | $ 106.5 |
Earnings per share (EPS) (Detai
Earnings per share (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings per share | ||||
Basic EPS - Net income | $ 196.5 | $ 175.3 | $ 378.5 | $ 346.8 |
Basic EPS - (in shares) | 191,500,000 | 191,000,000 | 191,400,000 | 191,000,000 |
Basic earnings per share (in dollars per share) | $ 1.03 | $ 0.92 | $ 1.98 | $ 1.82 |
Effect of dilutive securities - (in shares) | 400,000 | 400,000 | 400,000 | 300,000 |
Effect of dilutive securities - (in dollars per share) | (0.01) | (0.01) | (0.01) | |
Diluted EPS - Net income | $ 196.5 | $ 175.3 | $ 378.5 | $ 346.8 |
Diluted EPS - (in shares) | 191,900,000 | 191,400,000 | 191,800,000 | 191,300,000 |
Diluted EPS (in dollars per share) | $ 1.02 | $ 0.92 | $ 1.97 | $ 1.81 |
Stock options | ||||
Earnings per share | ||||
Securities excluded from computation of diluted EPS (in shares) | 109,948 | 61,594 | 109,948 | |
Restricted shares | ||||
Earnings per share | ||||
Securities excluded from computation of diluted EPS (in shares) | 66,996 | 66,794 |
Segment reporting - Financials
Segment reporting - Financials (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | |
Disclosure of operating segments [line items] | ||||
Number of operating segments | item | 2 | |||
Revenue | $ 352.3 | $ 347.1 | $ 691.1 | $ 656 |
Expenses | ||||
Costs of sales | 45.5 | 47.3 | 89.1 | 87.9 |
Depletion and depreciation | 69.6 | 77.2 | 144.2 | 148.4 |
Gross profit | 237.2 | 222.6 | 457.8 | 419.7 |
Other operating (income)/expenses | ||||
General and administrative expenses | 5.8 | 5.4 | 11.4 | 9.6 |
Share-based compensation expense | 5 | 4.3 | 7 | |
Impairment and charges | 7.5 | 7.5 | ||
Gain on sale of gold bullion | (0.2) | (0.6) | (1.5) | (1.2) |
Foreign exchange loss (gain) and other expenses (income) | 0.4 | 1.2 | (5.8) | 1.3 |
Income before finance items and income taxes | 231.2 | 204.1 | 449.4 | 395.5 |
Finance items | ||||
Finance income | 2.8 | 1.7 | 3.5 | 2.4 |
Finance expenses | (0.8) | (1.1) | (1.7) | (1.9) |
Net income before income taxes | 233.2 | 204.7 | 451.2 | 396 |
Operating Segments | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 352.3 | 347.1 | 691.1 | 656 |
Expenses | ||||
Costs of sales | 45.5 | 47.3 | 89.1 | 87.9 |
Depletion and depreciation | 69 | 76.6 | 143.2 | 147.3 |
Gross profit | 237.8 | 223.2 | 458.8 | 420.8 |
Other operating (income)/expenses | ||||
General and administrative expenses | 5.8 | 5.4 | 11.4 | 9.6 |
Share-based compensation expense | 5 | 4.3 | 7 | |
Impairment and charges | 7.5 | 7.5 | ||
Gain on sale of gold bullion | (0.2) | (0.6) | (1.5) | (1.2) |
Depreciation | 0.6 | 0.6 | 1 | 1.1 |
Foreign exchange loss (gain) and other expenses (income) | 0.4 | 1.2 | (5.8) | 1.3 |
Income before finance items and income taxes | 231.2 | 204.1 | 449.4 | 395.5 |
Finance items | ||||
Finance income | 2.8 | 1.7 | 3.5 | 2.4 |
Finance expenses | (0.8) | (1.1) | (1.7) | (1.9) |
Net income before income taxes | 233.2 | 204.7 | 451.2 | 396 |
Operating Segments | Mining Segment | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 260.8 | 299.8 | 524 | 563.6 |
Expenses | ||||
Costs of sales | 41.7 | 44.7 | 82.2 | 82.4 |
Depletion and depreciation | 53.7 | 61.1 | 110.9 | 120.3 |
Gross profit | 165.4 | 194 | 330.9 | 360.9 |
Operating Segments | Energy Segment | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 91.5 | 47.3 | 167.1 | 92.4 |
Expenses | ||||
Costs of sales | 3.8 | 2.6 | 6.9 | 5.5 |
Depletion and depreciation | 15.3 | 15.5 | 32.3 | 27 |
Gross profit | $ 72.4 | $ 29.2 | $ 127.9 | $ 59.9 |
Fair value measurements (Detail
Fair value measurements (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 USD ($) EquityInstruments | Jun. 30, 2022 USD ($) EquityInstruments | Dec. 31, 2021 USD ($) | |
Fair value measurements | |||
Transfer from Level 1 to 2 of financial assets | $ 0 | $ 0 | |
Transfer from Level 2 to 1 of financial assets | 0 | 0 | |
Transfer from Level 1 to 2 of financial liabilities | 0 | 0 | |
Transfer from Level 2 to 1 of financial liabilities | 0 | 0 | |
Transfers Into Level 3 of financial assets | 0 | 0 | |
Transfers Out of Level 3 of financial assets | 0 | 0 | |
Transfers Into Level 3 of financial liabilities | 0 | 0 | |
Transfers Out of Level 3 of financial liabilities | $ 0 | $ 0 | |
Number of investments with no quoted market price in an active market | EquityInstruments | 2 | 2 | |
Recurring Basis | |||
Fair value measurements | |||
Financial assets, at fair value | $ 220,600,000 | $ 220,600,000 | $ 240,700,000 |
Recurring Basis | Level 1 | |||
Fair value measurements | |||
Financial assets, at fair value | 169,200,000 | 169,200,000 | 231,000,000 |
Recurring Basis | Level 2 | |||
Fair value measurements | |||
Financial assets, at fair value | 10,000,000 | 10,000,000 | 5,600,000 |
Recurring Basis | Level 3 | |||
Fair value measurements | |||
Financial assets, at fair value | 41,400,000 | 41,400,000 | 4,100,000 |
Receivables from provisional concentrate sales | Recurring Basis | |||
Fair value measurements | |||
Financial assets, at fair value | 7,400,000 | 7,400,000 | 4,800,000 |
Receivables from provisional concentrate sales | Recurring Basis | Level 2 | |||
Fair value measurements | |||
Financial assets, at fair value | 7,400,000 | 7,400,000 | 4,800,000 |
Equity investments | Recurring Basis | |||
Fair value measurements | |||
Financial assets, at fair value | 210,600,000 | 210,600,000 | 235,100,000 |
Equity investments | Recurring Basis | Level 1 | |||
Fair value measurements | |||
Financial assets, at fair value | 169,200,000 | 169,200,000 | 231,000,000 |
Equity investments | Recurring Basis | Level 3 | |||
Fair value measurements | |||
Financial assets, at fair value | 41,400,000 | 41,400,000 | 4,100,000 |
Warrants. | Recurring Basis | |||
Fair value measurements | |||
Financial assets, at fair value | 2,600,000 | 2,600,000 | 800,000 |
Warrants. | Recurring Basis | Level 2 | |||
Fair value measurements | |||
Financial assets, at fair value | $ 2,600,000 | $ 2,600,000 | $ 800,000 |
Commitments (Details)
Commitments (Details) lb in Millions | 1 Months Ended | 6 Months Ended | |||||||
Nov. 30, 2021 | Jun. 30, 2022 $ / oz oz t | Jun. 30, 2022 | Jun. 30, 2022 $ / oz | Jun. 30, 2022 t | Jun. 30, 2022 lb | Jun. 30, 2022 USD ($) | Jun. 30, 2022 $ / shares | Jun. 01, 2021 USD ($) | |
Antamina | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 22.50% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of silver (as a percent) | 5% | ||||||||
Term of agreement | 40 years | ||||||||
Fixed silver payability (as a percent) | 90% | ||||||||
Percentage of reduction in spot price after maximum ounces of silver have been delivered under the stream agreement | 15% | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 86,000,000 | ||||||||
Purchase price per ounce of silver as a percent of average or spot price upon initial delivery | 5% | ||||||||
Antapaccay | |||||||||
Commitments | |||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 20 | ||||||||
Payment for each ounce of silver (in dollars per ounce) | $ / oz | 20 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of reduction in spot price after maximum ounces of silver have been delivered under the stream agreement | 30% | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 12,800,000 | ||||||||
Purchase price per ounce of silver as a percent of average or spot price upon initial delivery | 20% | ||||||||
Ounces of gold receivable for each 1,000 tonnes of copper | 300 | ||||||||
Copper for 300 ounces of gold | 1,000 | ||||||||
Quantity of delivered gold ounces before payable production to be purchased decreases to next threshold from initial threshold | 630,000 | ||||||||
Percentage of gold receivable after initial threshold is achieved | 30% | ||||||||
Ounces of silver receivable for each 1,l000 tonnes of copper | 4,700 | ||||||||
Copper for 4,700 ounces of silver | t | 1,000 | ||||||||
Maximum ounces of silver receivable | 10,000,000 | ||||||||
Percentage of spot price of gold on which on-going price is paid | 20% | ||||||||
Maximum ounces of gold on which on-going price of spot price is payable | 750,000 | ||||||||
Percentage of spot price of gold on which on-going price is paid after maximum ounces have been delivered | 30% | ||||||||
Percentage of spot price of silver on which on-going price is paid after maximum ounces have been delivered | 30% | ||||||||
Candelaria | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 68% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 68% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 400 | ||||||||
Payment for each ounce of silver (in dollars per ounce) | $ / oz | 4 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of reduction in spot price after maximum ounces of silver have been delivered under the stream agreement | 40% | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 12,000,000 | ||||||||
Maximum ounces of gold on which on-going price of spot price is payable | 720,000 | ||||||||
Cobre Panama Fixed Payment Stream | |||||||||
Commitments | |||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 418 | ||||||||
Payment for each ounce of silver (in dollars per ounce) | $ / oz | 6.27 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of reduction in spot price after maximum ounces of silver have been delivered under the stream agreement | 62.10% | ||||||||
Percentage of reduction in spot price after maximum ounces of gold have been delivered under the stream agreement | 63.40% | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 21,510,000 | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 9,842,000 | ||||||||
Quantity of delivered gold ounces before payable production to be purchased decreases to next threshold from initial threshold | 808,000 | ||||||||
Purchase price per ounce of gold per ounce upon delivery initial post inflation adjustment | $ | 418.27 | ||||||||
The mill through put number of consecutive days of commensurate | 30 days | ||||||||
The annual capacity of tonnes per annum reached by period end. | t | 58,000,000 | ||||||||
Annual rate of return on upfront payments until the mill throughput is achieved | 5% | ||||||||
The reduction of applicable fixed gold price per ounce (in dollar per ounce) | $ / oz | 100 | ||||||||
Quantity of delivered gold ounces before purchase decreases to next threshold from initial threshold | 1,341,000 | ||||||||
Purchase price per ounce of silver per ounce upon delivery initial post inflation adjustment | $ / shares | $ 6.27 | ||||||||
Percentage of spot price of gold on which on-going price is paid after maximum ounces have been delivered | 50% | ||||||||
Percentage of spot price of silver on which on-going price is paid after maximum ounces have been delivered | 50% | ||||||||
Ounces of gold receivable per every 1 million pounds of copper produced | 120 | 1 | |||||||
Copper for stated ounces of gold | lb | 1 | ||||||||
Copper pounds per gold ounces to purchase threshold 2 | 81 | ||||||||
Maximum ounces of gold receivable for second threshold | 1,716,188 | ||||||||
Ounces of silver receivable per every 1 million pounds of copper produced | lb | 1 | ||||||||
Copper for stated ounces of silver | lb | 1 | ||||||||
Number of payable Silver ounces to be purchased per quantity of pounds of copper | 1,776 | ||||||||
Ounces of silver receivable per every 1 million pounds of copper produced | 1,376 | ||||||||
Ounces Of Silver Delivered Under Threshold 2 Before Committed Quantities Reduces | 29,731,000 | ||||||||
Cobre Panama Floating Payment Stream | |||||||||
Commitments | |||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 20 | ||||||||
Payment for each ounce of silver (in dollars per ounce) | $ / oz | 20 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of reduction in spot price after maximum ounces of silver have been delivered under the stream agreement | 15.53% | ||||||||
Percentage of reduction in spot price after maximum ounces of gold have been delivered under the stream agreement | 15.85% | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 9,618,000 | ||||||||
Maximum ounces of silver on which on-going price of spot price is payable | 2,460,500 | ||||||||
Quantity of delivered gold ounces before payable production to be purchased decreases to next threshold from initial threshold | 202,000 | ||||||||
The mill through put number of consecutive days of commensurate | 30 days | ||||||||
The annual capacity of tonnes per annum reached by period end. | t | 58,000,000 | ||||||||
Annual rate of return on upfront payments until the mill throughput is achieved | 5% | ||||||||
The reduction of applicable fixed gold price per ounce (in dollar per ounce) | $ / oz | 100 | ||||||||
Maximum ounces of gold on which on-going price of spot price is payable | 604,000 | ||||||||
Percentage of spot price of gold on which on-going price is paid after maximum ounces have been delivered | 50% | ||||||||
Percentage of spot price of silver on which on-going price is paid after maximum ounces have been delivered | 50% | ||||||||
Ounces of gold receivable per every 1 million pounds of copper produced | 30 | ||||||||
Copper for stated ounces of gold | lb | 1 | ||||||||
Copper pounds per gold ounces to purchase threshold 2 | 20.25 | ||||||||
Ounces of gold receivable per every 1 million pounds of copper produced | lb | 1 | ||||||||
Maximum ounces of gold receivable for second threshold | 429,047 | ||||||||
Ounces of silver receivable per every 1 million pounds of copper produced | 344 | ||||||||
Copper for stated ounces of silver | lb | 1 | ||||||||
Number of payable Silver ounces to be purchased per quantity of pounds of copper | 444 | ||||||||
Ounces of silver receivable per every 1 million pounds of copper produced | lb | 1 | ||||||||
Ounces Of Silver Delivered Under Threshold 2 Before Committed Quantities Reduces | 7,432,750 | ||||||||
Condestable | |||||||||
Commitments | |||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (as a percent) | 20% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 20 | ||||||||
Payment for each ounce of silver (as a percent) | 20% | ||||||||
Payment for each ounce of silver (in dollars per ounce) | $ / oz | 20 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of gold receivable after initial threshold is achieved | 25% | ||||||||
Maximum ounces of silver receivable | 291,000 | ||||||||
Maximum ounces of gold receivable for first threshold | 8,760 | ||||||||
Deliveries of ounces of refined gold threshold | 87,600 | ||||||||
Refined gold delivery as percentage of production from stream area | 63% | ||||||||
Deliveries of refined silver threshold ounces | 2,910,000 | ||||||||
Refined silver delivery as percentage of production from stream area | 63% | ||||||||
Percentage of silver delivered after second phase | 25% | ||||||||
Karma | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 4.875% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 20 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of gold receivable after initial threshold is achieved | 4.875% | ||||||||
Percentage of spot price of gold on which on-going price is paid | 20% | ||||||||
Guadalupe-Palmarejo | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 50% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 800 | ||||||||
Term of agreement | 40 years | ||||||||
Sabodala | |||||||||
Commitments | |||||||||
Attributable payable production of silver to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 20 | ||||||||
Term of agreement | 40 years | ||||||||
Maximum ounces of gold threshold | 105,750 | ||||||||
Percentage of gold receivable after initial threshold is achieved | 6% | ||||||||
Percentage of spot price of gold on which on-going price is paid | 20% | ||||||||
Maximum ounces of gold receivable (per month) | 783.33 | ||||||||
MWS | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 25% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 400 | ||||||||
Term of agreement | 40 years | ||||||||
Ounces of gold capped under agreement | 312,500 | ||||||||
Cooke 4 | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 7% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 0% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 400 | ||||||||
Term of agreement | 40 years | ||||||||
Sudbury | |||||||||
Commitments | |||||||||
Attributable payable production of gold to be purchased (as a percent) | 50% | ||||||||
Attributable payable production of silver to be purchased (as a percent) | 0% | ||||||||
Attributable payable production of platinum group metals to be purchased (as a percent) | 50% | ||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 400 | ||||||||
Payment for each ounce of PGM (in dollars per ounce) | $ / oz | 400 | ||||||||
Term of agreement | 40 years | ||||||||
Percentage of purchase commitment | 50% | ||||||||
Sudbury | Gold spot price is greater than $800 per ounce but less than $1,333 per ounce | |||||||||
Commitments | |||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 800 | ||||||||
Sudbury | Gold spot price is greater than $1,333 per ounce but less than $2,000 per ounce | |||||||||
Commitments | |||||||||
Payment for each ounce of gold (as a percent) | 60% | ||||||||
Sudbury | Gold spot price is greater than $2,000 | |||||||||
Commitments | |||||||||
Payment for each ounce of gold (in dollars per ounce) | $ / oz | 1,200 | ||||||||
Rosemont/Copper World royalty interest | |||||||||
Commitments | |||||||||
Capital commitments amount | $ | $ 12,500,000 | ||||||||
Net smelter royalty interest held | 0.585% | ||||||||
Rio Baker Salares Norte | |||||||||
Commitments | |||||||||
Capital commitments amount | $ | $ 8,000,000 | ||||||||
Bottom | Sudbury | Gold spot price is greater than $800 per ounce but less than $1,333 per ounce | |||||||||
Commitments | |||||||||
Gold spot price per oz minimum threshold (in dollar per ounce) | $ | 800 | ||||||||
Bottom | Sudbury | Gold spot price is greater than $1,333 per ounce but less than $2,000 per ounce | |||||||||
Commitments | |||||||||
Gold spot price per oz minimum threshold (in dollar per ounce) | $ | 1,333 | ||||||||
Bottom | Sudbury | Gold spot price is greater than $2,000 | |||||||||
Commitments | |||||||||
Gold spot price per oz minimum threshold (in dollar per ounce) | $ | 2,000 | ||||||||
Top | Sudbury | Gold spot price is greater than $800 per ounce but less than $1,333 per ounce | |||||||||
Commitments | |||||||||
Gold spot price per oz maximum threshold (in dollar per ounce) | $ | 1,333 | ||||||||
Top | Sudbury | Gold spot price is greater than $1,333 per ounce but less than $2,000 per ounce | |||||||||
Commitments | |||||||||
Gold spot price per oz maximum threshold (in dollar per ounce) | $ | 2,000 |
Contingencies (Details)
Contingencies (Details) $ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 13 Months Ended | |||||||||||||||||||||||
Apr. 01, 2022 USD ($) | Apr. 01, 2022 CAD ($) | Dec. 21, 2021 USD ($) | Dec. 21, 2021 CAD ($) | Sep. 14, 2021 USD ($) | Sep. 14, 2021 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Aug. 31, 2020 USD ($) | Aug. 31, 2020 CAD ($) | Oct. 31, 2019 USD ($) | Oct. 31, 2019 CAD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CAD ($) | Jun. 30, 2022 MXN ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 CAD ($) | Jun. 30, 2022 CAD ($) | Apr. 01, 2022 CAD ($) | Dec. 21, 2021 CAD ($) | Sep. 14, 2021 CAD ($) | Dec. 31, 2020 CAD ($) | Aug. 31, 2020 CAD ($) | Dec. 31, 2019 CAD ($) | Oct. 31, 2019 CAD ($) | |
Contingencies | ||||||||||||||||||||||||||
Income taxes paid | $ 59.3 | $ 51.3 | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Percentage of reassessed amount | 50% | 50% | 50% | |||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Reassessment for the 2014 and 2015 taxation years | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 1.9 | $ 2.5 | ||||||||||||||||||||||||
Provincial income taxes assessed | $ 6.6 | $ 8.5 | $ 7.8 | $ 10 | $ 1.1 | $ 1.4 | ||||||||||||||||||||
Percentage of security deposit for notice of objection against reassessment | 50% | 50% | 50% | 50% | 50% | 50% | ||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Reassessment for the 2014 and 2015 taxation years | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 5.2 | $ 6.7 | ||||||||||||||||||||||||
Percentage of security deposit for notice of objection against reassessment | 50% | 50% | 50% | 50% | ||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax Year 2013 Through 2015 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 19.7 | $ 25.3 | ||||||||||||||||||||||||
Tax rate (as a percent) | 50% | |||||||||||||||||||||||||
Percentage of security deposit for notice of objection against reassessment | 50% | 50% | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Reassessment for the 2012 and 2013 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 5.9 | $ 7.7 | $ 5.9 | 7.7 | ||||||||||||||||||||||
Percentage of security deposit for notice of objection against reassessment | 50% | 50% | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax Year 2016 Through 2017 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 3.6 | $ 4.6 | ||||||||||||||||||||||||
Percentage of security deposit for notice of objection against reassessment | 50% | 50% | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax Year 2016 Through 2017 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 30.9 | $ 39.8 | ||||||||||||||||||||||||
Percentage of security deposit for notice of objection against reassessment | 50% | 50% | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax Year 2013 Through 2016 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 34.1 | $ 23.3 | $ 29.9 | $ 490.3 | ||||||||||||||||||||||
Tax rate (as a percent) | 30% | 30% | 30% | |||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax Year 2018 Through 2021 | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | $ 34.3 | $ 44.2 | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax Year 2018 Through 2021 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | 166.6 | 214.7 | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax year 2014 through 2017 | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | 15.5 | 19.9 | ||||||||||||||||||||||||
Canada Revenue Agency Reassessment Action | Tax year 2014 through 2017 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Provincial income taxes assessed | 36.1 | $ 46.5 | ||||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Reassessment for the 2014 and 2015 taxation years | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 1.9 | 1.9 | $ 2.5 | $ 2.5 | ||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Reassessment for the 2013 and 2014 and 2015 taxation years | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 8 | 10.3 | ||||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Tax Year 2016 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 1.3 | 1.7 | ||||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Tax Year 2013 Through 2015 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 8 | $ 10.3 | ||||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Tax Year 2016 Through 2017 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 1.3 | 1.7 | ||||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Tax Year 2016 Through 2017 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 11.7 | 11.7 | 15.1 | $ 15.1 | ||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Tax Year 2018 Through 2021 | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 34.3 | $ 44.2 | ||||||||||||||||||||||||
Canada Revenue Agency Transfer Pricing Contingent Penalty | Tax Year 2018 Through 2021 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 62.9 | 81 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Reassessment for the 2014 and 2015 taxation years | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 2.3 | $ 0.2 | 2.9 | $ 0.2 | ||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Reassessment for the 2014 and 2015 taxation years | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 2.4 | 3.1 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2013 Through 2015 | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 9.8 | |||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2013 Through 2015 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 12.7 | |||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Reassessment for the 2012 and 2013 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 3.1 | 3.1 | 4 | $ 4 | ||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2016 Through 2017 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 1.2 | 1.5 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2016 Through 2017 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 9.3 | $ 11.9 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2013 Through 2016 | Mexico | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 11 | 14.2 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2018 Through 2021 | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 3.4 | 3.4 | 4.3 | $ 4.3 | ||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax Year 2018 Through 2021 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 16.4 | 21.1 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax year 2014 through 2017 | Canada | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | 4.4 | 5.6 | ||||||||||||||||||||||||
Canada Revenue Agency interest and other penalties | Tax year 2014 through 2017 | Barbados | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Contingent liability recorded | $ 11.7 | $ 15 |