FNV - Earnings call transcript Q2 2021 | Franco-Nevada Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the Franco-Nevada Corporation Q2 2021 Results Conference Call. This call is being recorded today, August 12th, 2021. And at this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to your host, Bonavia Tek. ahead. go Please

Bonavia Tek

at Q&A Good today Michelle. Accompanying results. Thank for President, our our you call provide will find a will Thank of full our discuss morning, Franco-Nevada's us website on followed a available review to a results. of and Financial where Second This joining you is also you, presentation everyone. franco-nevada.com, Quarter Franco-Nevada introductory will some by this who provide Paul of by followed Franco-Nevada, Brink, results. be remarks, Sandip CEO will period. Rana, CFO brief XXXX

Executive detailed available that to We some full CEO note of X cautionary refer forward-looking I answer participants would commentary and of today's Franco-Nevada. any we may contain on now over Slide Our questions. call team presentation. turn is the of information, Paul the remind a like will President, to to Brink, and to you

Paul Brink

record to sold first that for morning, EBITDA, from our our quarter a quarter. joining Good and net adjusted and on adjusted momentum builds GEO include announce for Bonavia. the Thanks, thanks the We're second revenues, Records call. income. delighted quarter

to continue received first [Indiscernible]. near-record in sales. were screen under drivers the margins. operate In main for our and acquired with QX, increase The GEO from the we newly Cobre ramp-up Guadalupe our at payment ongoing Panama also deliveries We higher the other

royalty strong continue fire brand. Tasiast our the but we as For to mill less from our lower its recovers the with and production performance XXXX, deliveries second half revenues it of expect portfolio handles and on from expect

business again performance with our based of GEO in our inflation, run to the this labor, energy year. season our and has the on meaningful gas for revenue A we've were mining cost a our end a guidance assets in We the are the been reporting itself. lower And This the well the really guidance Quarter for energy. increase as the is and for raising where distinguishes theme result, the revenues prices, stage ahead oil energy rate, recovery year-to-date. model our materials, made and guidance year, of strong for of cycle

royalties revenue-based directly operate small inflation, our low bottom G&A, with increases and headcounts by impacted price we streams cost commodity Our to aren't and flow line.

we fact, and prices energy iron energy inflation have we through leveraged In our as royalties. increase, of and ore benefit portfolio steel

Turning growth our to outlook.

contribution the Haynesville set million Condestable, addition the is looking our We diversity. natural long-life flow cash fortuitous of We've XXXX increasing with base long-term a strong And year and by and Haynesville, of interest immediate gas expected added prices. also metal cash that growth offers X be our this asset Debentures. from low-risk, upside. year: driven Vale with The Panama. XXX flow totaling and to acquisitions mostly to growth timing Cobre the new strong Condestable increased precious Vale

to more remains additions precious portfolio than XX% the the With focused. metals

over the drive the for Detour the team, and whole the in week. bigger the Board expansion, with impressed our potential Lake to time. hosted very graciously expanded their growth drivers. as X both over business Detour, expansions Stillwater, being the are Tasiast Cobre XX% with from level, and mines Panama, XXXX Kirkland our Regarding new Gold and the mine years the in all period. Lake organic this body visit away came optimizations, far growth over become to output We mine the

increase see the drilling in a the based step, year. expect on doing they are we a As meaningful resource, first you'll that this

Skeena the PFS development we on is new track, Eskay terms Nortech Solaris development timeline. With the and Construction Resources, Valentine next Goldfields Stibnite and In Creek to is recently gold that of follow. Lake, likely of impressive the expect Hardrock, mines, Gold published reports in an

Under others. projects; Fire development for nickel prices Noront Ring our by Resources bode big [Indiscernable] copper options and the the continues Chrome, agreed growth, our larger in our long-term record Alpala, reality. of long-term financial pipeline of copper tremendous BHP strong to long-term to Tackatack, step acquisition Eagle well a royalties amongst Continued portfolio, and The summary, is deliver deposits. results, of making a with In built-in Franco-Nevada of those optionality. and on the deposits development

see once pipeline no to focused you. positive; generating opportunities. cash a at are year. Sandip, of We're We dollars and over in debt; cash again, rate and on billion metal have X.X acquisitions, capital; billion close flow operating per are a have we good to available precious a

Sandip Rana

strength morning, Good the Paul. financial continued Franco-Nevada's The portfolio. everyone. for of results to showcase Thanks, QX, XXXX

and mining both either of assets, well, in-line perform stream or and ahead royalty energy, continue to Our expectations.

Company As Quarter, income adjusted financial for net highs. EBITDA, Paul all new reaching and GEO many achieved revenue, adjusted records with Second the mentioned, sold,

turn COVID-XX the the as highlighted X impacted operations to X were XXXX, have are operations. XXXX. XXth, golden year, that equivalent GEO the back the now X ounces of XXXX, gold by for you presentation, pandemic As sold months June over and sold to increased Slide we significantly prior and in normal ended the Overall,

For the year. which XX% Quarter, the higher prior than XXX,XXX, GEO sold was over

strong Vale first represented recent For time main Panama, and royalty Antamina; Antapaccay, to Cobre X of $XX up produced from from the Also, of Guadalupe, accrued. expectations. Xst at of purchase. ahead all we in the which January we revenue a number Company recorded million Royalty have true revenue will XXXX. amount September GEO were XXth, had performance XXth, a payment months on XX,XXX premium contributors the declared The quarter, we sold. s the June which be from its The The of accrued key This will Company GEOs sold or actual assets.

expect our being X Royalty, operating XX% underperform the X the June less We be recorded revenue for and precious of X Vale Third than the A fewer as to quarter, Quarter. expected. amount Hemlo, NPI XXXX. to One highlights the was mining compared XXXX, year. asset we our GEO combination which but than the in did progressed, prior Quarter EBITDA we last for sold revenue was quarter the above for months with lower on payment of recorded of year the royalty higher metals the a XX% do lands, our revenue result in XXth, back recording decrease to was and ended NPI the along expect adjusted Slide total costs, the QX during the months X GEOs for did expected. and lower the amounts XX% resulted is as As

Quarter to As as in revenue the in a see you in have with sold, is from adjusted also assets, an EBITDA silver and revenue charts, from year-over-year gold prices. can and prices the The as of million quarter significantly increased saw million record, is saw increased in EBITDA adjusted XXX.X the bar from was revenue XXXX, The a low QX was in margin due increase Quarter. combined commodity XXX.X a the to the energy QX prices. increase XX% in Gold achieved. to A XXXX, XX.X million contribution a year we million. XX.X strong to from revenue was increase silver of ago, energy due in The a ounces record increase. and million Second increase to million increased recovery in XX.X% as QX, XXX this XXXX of XXX.X WTI an

during revenue the from million acquisition, We which Quarter. in recent also the Haynesville X.X contributed benefited

the financial As results you X, the for Slide see key turn Company. to you'll

increase and metals, prices, an and EBITDA both the to increase and sold, revenue mentioned, precious in GEO adjusted predominantly in energy. the was in commodity due As increase

adding Company of ounces increase to in Quarter XX.X GEOs XXXX. increased higher sales due versus On being the year net net stream due sold, associated the stream XX,XXX XXX.X revenue the successful Royalty. also the for Second $X.XX top-line to or become income They the and the or down that as streams was side, cost depletion component The the a Company, over for quarter-over-quarter, at revenue, adjusted a of from was approximately have revenue Franco-Nevada of royalty breaks QX, ago. prior quarter XX the million the streaming increases portion Franco-Nevada added has higher X XXX,XXX during was XXXX. a the the delivered, of of a XXX% The depletion XXXX, with higher large growth. increase Depreciation income cost mix versus recorded million was Company. and quarter. adjusted the well significantly both net million Slide been royalty more our both as the per second streams share, significant between generating of being XXX.X XX% very largest Vale for first per is share year. in and assets, income have million Adjusted in

cash thus royalties, or higher and However, operations. which whether flow margin it is from generate Energy, a Mining

by margin EBITDA increases. both peer-leading on will of margins. see, the costs to X combined the respect allow a revenue royalties for you the in million increases Slide our cost to us diversified X.X how royalties. million the can business related royalty illustrates with We believe as stream continue are assets of minimal, XXX.X -- the As related to generated price model achieve gold achieve to the Company margins, chart With and to

cost cost $XXX the GEO mining increase which with ounce rising we not cash energy costs minimal. as reflect business, sales our to sold. our structure, usually s we expect a should Our ounce the gold price per ounce, between cost In fewer associated per costs environment, in ranges per which cost significantly. of fully are to includes benefit Cash per $XXX

ounce, was Strong of average cash portfolio. QX cost gold is and the marginally. increased The the in XXXX, X,XXX our margins diverse of our gold one XX%, ounce per price price X,XXX cash the increased are having almost while cost back fact, averaged now In per ounce ounce, per $XXX. per strengths

chart cost the to focus besides X proud our other being on our and the Management like administration management. model cost-efficient The as of the of The cash the costs, sales our component illustrates and business. Slide as cost Company strength this our of scalability. business is focus our of managing We on [Indiscernable] are in possible Board stress corporate on very

XX X% and general to believes over consider strengths Franco-Nevada. the Corporate highlighted compensation revenues portfolio we our since to one which overhead of of and without the have significant our our diversification differentiators revenue. XXXX, revenues the million we this Company. Management Since X quarter, our highlights Slide and add of adding stock stable our of XXXX, has including have grown and million our we approximately expenses time this continue almost to remained grow can portfolio, quarterly administrative business expense our while fairly was IPO. Here XXX period. Administration from G&A to quarterly QX the

shown, of from to assets. XX% by revenue America at of As profile revenue QX by XX% than revenue operator No revenue. XX%. Cobre Panama followed diversity. was largest our XX% our for last revenue generated other The revenue of the highlights more asset at total respect at Candelaria The generated generator being geographic the South diversification, With our asset XXXX largest has mining the XX%. with Americas, sourced XX% was being Quarter, single chart

generated is Our largest being First again which for is XX XXXX. we operates Quantum, provided guidance Cobre exposure to XX%, revenue Slide which anyone by updated have On operator Panama.

previously our increasing the end strong with As so of to Royalty. XXX,XXX, first you of recall, is that sold to we XXX,XXX With XXX,XXX the for to GEO are we've sold the the guidance will XXXX, guidance range a months the Vale range new X to XXX,XXX, raised acquisition bottom of performance GEO XXX,XXX.

we continued of to For Antamina. well. strong Cobre from the should and with from iron XXXX, Also perform to Royalty expect prices, the ore Panama benefit at the ramp-up Vale strong second production continue half

for the do as less NPI Operator lower the NPI revenue lands. mines we expect our on However, Hemlo

XXXX revenue lower saw, periods. prior the you QX As was Hemlo significantly than

mill expect NPI other occurred half as calculation forecast to during as we in the our second s, in we position. Tasiast of from one record it a And not deficit any fire still XXXX, recovers the any revenue do not do revenue Musselwhite, is that the until QX. from For

in in XXXX lower For be X XXXX. did that's record to the half Gold of that is Quarry related Goldstrike, and we from months of prior second to revenue revenue both periods, the forecast first slightly

year. due MCF million, For This to gas the raise business, guidance $X.XX in pleased XXX million strong a to assumed the million. the We've to increase of to is a natural energy to prices WTI, and energy this revenue we're significantly seen barrel $XX in XXX guidance rebound remainder we've from our XXX previous XXXX. XXX for

with the the on Company today, combination did Company seen hand, draws million second of of been XXX of on debt-free. million Michelle. XXX Slide liquidity and With turn XX, cash during questions. We As on with Royalty hand $X.X billion. it acquisition to take on as respect the and fully has has the credit over Vale fund a of Happy drawdown That again available to facility capital to will I repaid, quarter. our is any that,

Operator

gentlemen, and your Ladies we session. you. Instructions] [Operator moment, One will now question. Thank for begin question-and-answer the first please,

from ahead. Please comes TD Barnes, question go Greg Securities. first Your

Greg Barnes

Thank you. That's accrual it pricing it I I a lags million. of and was than there Are the adjustments going was, XX should that Vale bit closer Greg how million, expecting, this, just from XX XX Barnes. into to forward? lower some It's million. think a Sandip, well little model or we go

Eaun Gray

Hi, Eaun guess things. Yes. couple It's here. a Greg. I of

just estimate half year, system the historical that's a there the first first to been system, at half. occur attributed The looking fire originating versus a been terms This first at to finally, payments for keep in We've most the XX% probably price are made are which in to for well, mind run-up the provision secondarily, and in a as and has for the the is, as the with of Historically, given number somewhere the point a around pricing XX% little deductions the well transportation, the northern so that sales in of northern actually account half, bit got numbers. in seasonality provision in it's then and sold from the second probably in made conservative port. exacerbated half. And there. oil yes, rising lag. we've That's likely some for Vale made volatility then conventions, what the salient first of different prices, there that uses we've by

you to of get the any at that's will is able specific Hopefully, the up directly and be determination can the to We any helpful, questions, follow XX if should there, have we true-up from that those. on million. actual necessary make end September,

Greg Barnes

is That Okay. No. helpful.

terms the how work? some lags, were of you In pricing, there said does that

Eaun Gray

not sales. both with sales pricing spot, the contracted iron contracting just just It's determining for of the pricing, I ore, provisional historical but or they're and think earlier

the to which occurred price. the periods half, sales will realized the first So pricing that down will some prior apply of in bring

Greg Barnes

thumb any there we Is rule use on that could of Euan?

Sandip Rana

to using. an Void does pricing systems but have follow various you, for can provide on it's up the that exact as some disclosure number don't I we that.

Greg Barnes

Thank from me. Okay. it That's you. That's great.

Operator

Your from Josh go next ahead. RBC. question comes Please Wolfson of

Josh Wolfson

Thank you.

on another division. the Energy question the Just guidance for

to top-up Just correct? not it is any does that payments; wanted include potential confirm,

Jason O’Connell

top-up are What payments? could it's Jason you Josh, when question. you exactly Thanks, to Maybe here. just referring the mention clarify you

Josh Wolfson

in what The your guide. have terminology been used is that guidance. you reported have catch-up you payments think I I'm not not sure historically a historically historically have the included guys as

Jason O’Connell

I which sometimes referring to adjustments, financials. what our period think is you're probably impact prior

the of the our does that taken For period we've is of provided, X expect back just done for based forecast what the receive that forecast we've prior for next and we've first include statements financial that we've commodity the year, the the of which prices the on actual half on some the the is adjustments, the revenue half provided. but to production year, months

forecast. one-time So there aren't of the of sort in any rest catch-up the payments

Josh Wolfson

it price environment? in to increase is rising And tend Okay. period the that adjustments to fair a say prior

Jason O’Connell

to Oftentimes than revenue those budgeted lower online that a accrued can for. to though, have you adjustments. we are higher period we prior actually see prices, related some wells adjustments come we new If that period haven't yes. commodity Somewhat, prior receive due

going retroactively. visibility -- Those prior We what drilled that have very have a come because we many That drilling period we to into future major those happens our behind they're to that wells. make are on wells to those is little when lands through. an get unexpectedly, hard operators When there on adjustments. know they driver the adjustment is are are come

or you we've accrued price commodity a true-up. you're lower Although an right; revenue, can see environment, a adjustment rising a in if

Josh Wolfson

side on business. Okay. of the Thank And gold the you.

to to be NPI, the line of were so second on that the think we of of on [Indiscernible] Hemlo, going be now the reflect of should year the more would component we the Franco margin see for type this the second Ignoring attributable what to For in earlier assume year. would the portion expected forward? is guidance volumes prior half I the that going this transition, was is quarter guidance that the impact

Sandip Rana

was lower and Quarter, We're estimate. and at that's lower expected but Josh, we than then looking Yeah, the Second sooner, it amount. our the best

it's going forward, I what to that's expecting. we're So say think safe

NPI, how mine by but on quarter areas As to find we the they depending where would that costs to conservative, publicly what I know at it Hemlo, stated they to with that's go trying they're change mine, quarter other and so think I can be estimate.

Josh Wolfson

going volumes with maybe can then commented there's members are the on? back this, if potential Okay. plan maybe know Thanks. Franco And and anything comment to curious to the thoughts team Lake resource to mine would in and to be if Detour the what new they're coming visits. on question, to any final be I'm opportunity the on able new a that

Jason O’Connell

sounds new dip how fill how know like how Josh, new looks next been expect know do one Lake has new once that. mine is I they they put do couple there doing can resource the like aims some what I of they stuff think mine year, the production with they reiterate good on resource plan. drilling this but dip is they the the put of of A on in some a few on production, in years can of main also step saying, improve that to a that as that Kirkland had out you there, just the And work, the they they that on a in back things is a out the have and out expanded plan. that, it ideas

Josh Wolfson

Thank all very Great. are questions. my much. Those you

Operator

from question James. go Raymond Please MacArthur next Your of Brian comes ahead.

Brian MacArthur

Thanks. Good morning.

Can well. months But contracts. X, X There's all legs X to a Are as as in -- to mean, it I we QX question total at And part X X forward rolls the iron have second way we price book, goes month we're priced that a what original will months the then true-up in have is actually trueing the I of prices end contract stuff only of you then then QX provisionally provisional up forward? ore the pricing which that I my lower it. Because or to up the true-up X this months was volumes, -- is surprised that is, going am the trueing you a X like here, valley we QX have on said, get guidance? XX we going rise on is down? peak know we'll and moving Sorry, months? over, back the million Greg potentially have but in have forward give price question because we'll part, my going have any quarters stuff you just quarter. over if up X

Sandip Rana

Brian, highlighted, little as that. Eaun were conservative Yes. we yes, a on

of the revenue terms is they're In that accordingly. premium for on true-up, rate to they adjust be September X-month period. that what times royalty XXth. going the that then achieved will what we declare depending And is, That'll payment dividend the that upon

price for end are iron sales over, and look be, for and QX, the book their ore think volumes amount. the at what that their best the price As average we'll of rolling what estimate on day, at make our we will

quarter. think the negative, I it's adjustments having NPI, It's norm. that the going true-ups think just here all of to used positive going to various the is are quarter, are to calculation components exactly whether reality calculate with not be works every because or the but every amount, an way the I the there be

Brian MacArthur

right paid will Is you quarter got? know what you or months when And every it up do it true every even only months, actually just six you'll you that going every actually forward? X get you though

Sandip Rana

quarter. No, we'll do every it

Brian MacArthur

changed Sudbury above I XX% question, you very Thank the it much. And so XXX think second to you my screen as price, a certain XXXX. I payment, opposed notice it's Perfect. was

a or XXXX, be the floor to that clear go though, does is XX% below back Just to were all price well? the function gold to down if as way a of back go down hard $XXX it

Sandip Rana

Yes.

XX% a is if below gold price pay X,XXX maximum above is. paying between to price average the the ounce, is it's XXX gold if we an and price spot we're gold pay of price, of XXX, to if the just X,XXX, up $XXX we X,XXX what So the

Brian MacArthur

much, clear. Sandip, very Thank Great. very that's you

Operator

Cosmos Your next from comes go ahead. CIBC. Chiu question with Please

Cosmos Chiu

bit, guidance taking barrel. it, that by morning, my question is to the $XX you've for Sandip, to noticed and $XX the but I WTI Good that also Good increased a first for questions revenue. and back see Paul, assumption here. you my team, only up thanks little Maybe increased to energy a

on increase, So increase that's to just I guess in revenue imagine guidance based factored increase in is activity there I some your in would as commodity a than confirm, more price is the well? drilling been

Jason O’Connell

here. Jason it's Cosmos, Hi

Cosmos Chiu

Jason. Hi

Jason O’Connell

XXX as The commodities. bulk is gas, WTI price that of both the we currently that for sitting commodity at really we're related, for increase above forecast you did mention, and $XX

across time, In over the we're provided production, will back-end of rates the in be for increase the that deliver balance assuming what do a over or the flat reasonably is would levels, which year drilling reasonably terms for several in current at the flat year, next but volume years, sustained reasonably the there course profile. XXXX, assets. production the earlier basically that we're an assume assuming in of of most production the longer-term of forecast flat We we do we of

Cosmos Chiu

revenue, question a potentially we're commodity is mentioned, higher sitting assumption remind the guess that to than now. you've follow-up $XX sensitivity what's higher on in my assumed? Great. terms Could as I right prices of Jason to you then, what that compared your us is, you the barrel, now

Jason O’Connell

across oil in on around I in somewhere would both in result numbers revenue. gas, we XX% a I front if that the in XX% a Yes we and I increase have think of earlier year, a Cosmos, don't me. of that have memory provided believe increase that energy that the

Cosmos Chiu

you and in have past this I talked well. as Jason, Great. And the about think I

guess, CapEx Are those From you to CapEx as some right you you drilling terms of a seeing updated, that increase? or I maybe what budgets out? drilling now, green of once -- expecting In activity, seeing gets shoots coming energy in mentioned, of terms for are activity, the you're year. it companies,

Jason O’Connell

we rewind I that took -- if when back point U.S. in you early prices XXXX far time, actually on impairment our to So some of guess, an collapsed, at assets.

For is level. a X drilling time, rebound we'd at drilling assumed And did XX% that so the place we activity the was, impairment it over what rebound very, we What XX% rebound, a we've rates years. that around valuation testing, low XXXX at been we That assumed in rebounding very far would the years, to would the have is we assumed from what at take to around seen of levels. along that assumed X the time. trajectory

So that of haven't and over on it forecast. out years focus drilling on it will we're plays capital is towards ultimately they put how had next signaling oil very to have of couple returns activity and update, on out their guess couple disciplined the U.S. far, the see What programs, budgets, of shareholders. that is and I to -- make we and amount years. been have our rate assumptions based to be what still We'll shareholders companies, rates. jury are to over gets significant to particular, Shell going adjustments next in will companies the filling dividends in any go-forward capital our the to

Cosmos Chiu

energy the one last course. patch on And here. question maybe Of

oil the in With dry? in pun you are intended. seeing running the opportunities energy oil increase prices, No patch prices,

Jason O’Connell

base, prices good are XXXX, gas down and this early has that opportunities oil slowed and opportunities after in the available of pace amount collapsed in oil in there in opportunities of actionable point. but plenty The are gas. of both a at there's and Cosmos, No

focus that available, precious we those and Given the opportunities and number energy of that iron despite we've our on the opportunities. are so fact pursuing be about will selective gas is recently investments metals, and ore, done though very there into oil

Cosmos Chiu

are the pressure opportunities precious that Eaun on in And Maybe metals? potential of or that's metals better precious question front, in prices, on gold terms you seeing and for a Paul? with recent acquisitions

Sandip Rana

Hi, Sure. Cosmos.

of pretty primary gold moving development projects We're healthy a the would seeing gold the yes. towards On pipeline say I phase. side,

versus would that there more type, And deal of say opportunities so past medium-sized in I bracket, overall that quarters. are

Cosmos Chiu

maybe Great. last the And financial then question on one front.

a it and dividend, you now really terms dividend well I you're price of maybe share X.XX%. is I I an that at I'm better out you you least work you have so and X% something know right dividend comment had yield. target In your the done in Franco-Nevada than thought Paul of sitting yield now still as on sure could of that, target do, year-to-date, that right past, always unwritten to about has at had a the now?

Paul Brink

Cosmos, The one, is Board never looks Franco, we've so be conservative. most to have our payout thing reduce said, dividend, always is as when question. want thanks to for dividends that the fundamental they number that going at make they to sure that the

still sustainable. of is making of they're Second year and tremendously proud the record have they increasing the every dividend it

We do for the year start will that well, the at been they environment, the -- those level as those of next is Typically, of generating, main the look consider the at start the think into the it yield dividend. factors it the to factors room and will cash current with that that But the in when I strong Company the are the into dividends dividend think at that move there's about X lots that Board decision. points. discussion, Any year. on go each it's all year, are So of the flow

Cosmos Chiu

potentially to I'm from to the I Of Ring certainly, up, BHP it close you well, royalty have as X% not the course. another going of you then X%. you Paul I'm question. And here, to as brought think ranges maybe And Fire. ask excited as I'll since I it,

X%, X%, but us one to of is so the make percentages this this I is most think like CEO And remind that areas? could always will you is make look And the it could look different you the parts that remind Franco and question, you good? ask or one us, overall next will I Paul, you just are royalty certain it good,

Paul Brink

good. make Cosmos, that know going it's I to look to don't the us answer I both question, hope of

Cosmos Chiu

good. that's right. All

Paul Brink

the terms some asset we're the there you but royalty there. sorry. the deposit -- a the names of deposit, of And put X% various of others. to out which in think I And then are at X% in are on update, on handbook give X% you then a chrome which mixed to X% royalty also talking A we them, the on about. that the give which, And -- deposits. need detail know, number I'd they're on is the Between at the Eagle do as -- first deposits and

Cosmos Chiu

are and the those Jason. Thanks Thank you. Sandip, I And Great. Paul, questions have. all Eaun, again,

Operator

question comes America. Mike go from next Bank ahead. of Your Jalonen, Please

Mike Jalonen

Morning, to is be room. formal else was in a the or September Franco different some stole planning Fire, And -- and And come Ring some writers, Trudeau they to way. if -- the Cosmos of would for Eaun talk it maybe two, to BHP, Sandip, some you Paul, year thunder, I'll ask plans to you be XXth, going layer about next a I the announcement ask are what forward for What under going that do? of my try in maybe I'll or Paul, the the in it's would I whoever election? to is what something think will discussed with, thanks. and so call do news, will will of be election Fire them, a this snap just saw Sunday, Ring

Paul Brink

plans. in from yet. no I I have view don't current Mike, -- directly the term, suspect shorter from a the The change BHP

that there. the probably do already road to the Norand the has getting step getting be progress. First That well and with environmental proponents work in so work working the to assessments the been been the road first And permitting the get Nations (ph) aware, you're on up is built permitted. can As road, has the of that Nations First is

I think think that more time I you'll probably those see is but are funding road, this premature I don't place, in know, my once the of election. activity guess a political for Mike. permits that that's bit then the around

Mike Jalonen

Well, that you. to along. -- Okay. Franco I thank And And needs road guess right. bulldozer a help luck. good all

Operator

question comes Langton, ahead. Please Tyler next from Your go JPMorgan.

Tyler Langton

my Thanks morning. for question. good Hey, taking

ore on being you around And XXX,XXX. know in of Through the to but Hemlo, weaker half? half, lag the you're for Just a better to slightly in year, of about be any half, iron I probably GEO start terms other that at first what's on it mentioned end guess a the XXX,XXX. are you higher that assets range. the there XXX,XXX especially second should guidance second anywhere the the I to talked look with causing

Sandip Rana

period particular; in X,XXX related Two adjustments GEOs about in in year. the with we that of half prior to half And Yes. Those in And revenue have relating periods we expect we adjustments where Kinross. to year. we Tasiast GEOs one XXXX, of won't or that booked XXXX. booked Gold Quarry Goldstrike, year any a as in quarter to we of won't had the were had next revenue X for are related X second about for we then Mauritania the we Those in we the don't booked at X -- have the accrued guidance that the the are that prior well there in XXXX the million booked the or were we've the mines as reflected then from that recover in first Tasiast, which half fire months. was number so second -- first of in they where the

Tyler Langton

energy No, that million color year's kind and the higher? XXXX think versus with XXXX think think And about so XXX this on to could current to they're XXXX prices. helpful. Okay. if year number energy, this this higher the with of hold, Any you're guide. million, XXX When number then was already year potentially about that's we commodity even prices be -- I the just guidance for current how

Sandip Rana

we will put you range putting guidance our in for X-year likelihood, be higher. out our X-year at so we'll that prices, you'd did, guidance higher likely We XXXX. run if when be In do time guidance all that March, out annual

Tyler Langton

me. Thanks it. much. that's Right, Got so it for

Operator

Your ahead. Jakusconek, next comes Tanya question Please from go Scotiabank.

Tanya Jakusconek

Great. for Good taking and everyone, my morning, very thank you much questions.

just Sandip, you, of the of get more think guidance we on that on the Quarry to the a for clarity mentioned half Gold any in, of of half second year? in expecting I ounces contribution You the Quarry? bit there X,XXX was from QX. a of top-up little wanted a thank I bit Just the -- up Can some guidance second for the year. follow Gold and Are

Sandip Rana

ounces. Yes. XX,XXX It just our next on booking X,XXX based years It's going will then per a of be ounces, we're just we minimum, year. year about previous in GEOs is the Tanya, X,XXX expecting half and forward. full X,XXX over projection were a it's year for calculation, to dropped It's this that year,

Tanya Jakusconek

transactions sense, we that. okay, about the just there, coming maybe XXX deal I then talked to back maybe -- think we're deal bracket, seemed said we bit on that and M&A thank very to still that what I define had, a it about? range financing that medium-sized makes just it's talking -- to That I is out the for can much are that project million you within XXXX, and we And XXX know have that's medium-size just bracket,

Eaun Gray

at would I what the at size either looking there that to although It's are of kind XXX on moment, of more mid-sized I we're side in more XXX the is as Tanya. say, that. this certainly the would Hi, Eaun here. pipeline transactions define opportunities yeah, stage. at That's deal

Tanya Jakusconek

to, And it, impact maybe share I this that's And minimum how I know global expecting to Sandip, Whether back you? proposal talked want your just and could tax if you come come about but to if you. there? this, you're and the views would we've can back just out on I when

Sandip Rana

it's know, gaining -- you momentum. as sure I'm

treaties, are the it it, with lot when there think have early does XXX of watching of terms it's it work, closely. it's I OECD I a a going to in we're be done too of think There's to determine. the to of to signed get so How question still and work has implemented. calculation, that on so that countries it's XXX

thing Franco for structure. I one the a think diversified corporate is do we that have

impact got they're pay Canada, So the amount business, that but minimum is taxes global through we Australia, not the tax. business, international which where tax that our the our majority above Barbados, stream royalties within U.S., global we've it's minimum of would talking about for

for comes. just it's watch, will adjust time that and when something So we the

Tanya Jakusconek

Thank you.

Operator

There Instructions]. the no [ further Bonavie Operator back to I ahead. conference questions. Please turn go will Tek. are over

Bonavia Tek

Michelle. you, Thank

We market for Xrd, held following call XXXX the with conference a release close QX interest November after morning. Thank results your to our expect you in on Franco-Nevada.

Operator

your for and concludes you and Ladies please conference participating ask your that today. that We lines. for you disconnect gentlemen, thank

Franco-Nevada (FNV) 12 Aug 212021 Q2 Earnings call transcript