FNV - Earnings call transcript Q2 2022 | Franco-Nevada Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the Franco-Nevada Corporation's Second Quarter 2022 Results Conference Call and Webcast. This call is being recorded on August 11, 2022. [Operator Instructions]. I would now like to turn the conference over to your host, Bonavie Tek, Vice President, Finance. Please go ahead.

Bonavie Tek

Christina. you, Thank everyone. Good morning, for Quarter joining discuss you today us Results. Second XXXX Franco-Nevada's Thank to Accompanying a also call at financial this is franco-nevada.com, our available results. where website on you will find full presentation, our which is presentation webcast. the view is also The to on available

introductory this Officer, provide Business who our a review followed our will Franco-Nevada, followed call and results; of Rana, provide Q&A an Tocantinzinho will by our will of Gray, who President, Paul provide Development, morning, During by Senior and President Sandip Brink, CEO of will a remarks; Financial Vice period. This Eaun Chief brief overview transaction. be

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

Paul Brink

The were our best environment. for and in EBITDA Thank our to and report revenues, results and net inflationary Each half We're business year adjusted is income proud most Bonavie, good on quarter. adjusted of morning. the record. you, low-risk today's quarterly nature of records pronounced

At issued guidance lower midpoint half $XXX is for drove million. with record deliveries ahead marginally in since range, team mines the its offset sold million XX% building for line at our a construction a for delighted us we're precious and included sold. positive previously Mining the fully to streaming $XX.X we The and $XX on financed. financing guidance. adding expected Merian $XXX our our Gold. for in year, equity margins Mining GEOs the in Ventures financing stream, maintaining Tocantinzinho net and XXXX generate helped Fruta and million was increase budget, is G adjusted this the diversified Lundin business, GEOs in July, The industry Ventures for package were an energy ever partly metal slightly by In EBITDA loan time property gold GEOs, prices top package Our our XX% of our late are total first financing. announce highest metals stream interests Brazil income. to and well precious Mining term and is our G environment over of for for High known royalty million Newmont with ready Norte del including in behind and and for The adjusted project on

close have Tocantinzinho in first close acquisitions. to the the financings for We've will Alcaparrosa many into portion been the Lundin a hole for has Mining on partnership mine with ended the We the sink be company, and Candelaria builds operations. expect of future and that long-term dialogue of developed

the an have appearance organic have to extension Salares next and couple proceeding the from and of life any Tasiast Cobre as could Notable increase are Fortunately, throughput XX-year ounces and a on the year looking and, potentially XX to to the understanding of mines our XXXX, of Eagle hole and they're the and million and form Agnico all near-term in expand contributions [indiscernible] safe in of Greenstone the years sink track. community growth. result to mine weeks. coming at tonnes growth Lake. Detour announced the million Stillwater with in expansion, Detour in underground X was construction mine year. more organic X terms per and new We'll quarter develop that news to all didn't an course, core of courses along expansions evaluating also as production and per initial Norte, event Panama, the of injuries. have of experts well or staff the in The are Lundin hope

We of of Creek over Corporate With Best follow. Lake, of programs as the community expect Corporate was to Knight's we ESG, Franco-Nevada named Tocantinzinho during X development the Gold Stibnite to environmental $X XXXX quarter, in Also years. the respect the and of Eskay Citizens Canada. transaction, Valentine List and XX million the support part committed

continues rate We year. to performance, our of good the growing $X.X growth a optionality. capital pipeline and and cash available contributions We're and record partners. flow financial billion Franco that, With a summary, with community also at generating engagement expand built-in deliver hand and positive no operating opportunities. billion per to on more by in to assets adding precious continue long-term seeing of existing are company In debt, with flow with I'll of $X over Sandip. it cash We're focused metal Nevada

Sandip Rana

Thank you, Good Paul. morning, everyone.

the to with ended XXXX QX June commodity. X stream mentioned, royalty benefits being equivalent both X, XXXX expectations. X year prior quarter were highlighted company XXXX. XXX,XXX and year. GEOs gold and Paul XX, and again Slide to compared record flat by As XXX,XXX of months and results compared XXXX On ahead we've sold performing last gold with ounces to our our when relatively for Overall, once highlighted financial sold the the GEOs and portfolio sold asset of second The portfolio overall quarter diversified reported

performed the year. Antapaccay, Antamina, as and $XX.X by less we have related just You Stillwater with record in may Royalty million QX X,XXX delivered recall X GEOs had and Vale of versus that GEOs we in to revenue to an would GEOs revenue prior during Guadalupe This the most recorded of quarters additional quarter, Overall, QX acquired. equated XXXX. expected and assets did XXXX,

lower highlighted we previously, operator zone. Antapaccay for have production year is As a grade is XXXX a the lower mining through as

year to prior expect XXXX. levels We deliveries for resume to

event impact silver and GEOs ounces suspension XXXX is a the years being in million suspension mine the more X.X revenue year June, a in with delivered, This normalized what from a resulted which Unfortunately, we Stillwater Stillwater a to which million flood operations Antamina, expected our was impacted X.X significant is third the For on quarter. of to for at to of similar range slight mine. be will transpiring. have by negative previous

of was MPI, result expectations increase an One improvement operating royalty ahead of the surprises Hemlo CAD was of a in costs. which mining in our Franco-Nevada million. on the in was the at coming lands and quarter XX.X This in

payments previously, As will what to it the basis. on we've mentioned be NPI difficult quarterly a is predict

our ore mines quarter. as previous due quarters For and at GEOs Royalty X,XXX revenue $XX.X in lower resulted September lower production the quarter, will in make well Each actual year. was we estimate an the announced lower what March the and the diversified This a the than price. being iron GEOs, in royalty late for each Vale million Vale to as amount by of be with

in As our a result, adjustments you accruals QX. to will see

continued doubled June energy X year-over-year X XXXX. our benefited from higher XX, XXXX and amounts we revenue for total as energy our X months the assets, Slide For GEOs highlights ended and and prices. adjusted EBITDA

A and adjusted see achieved. you in recorded EBITDA, the EBITDA As $XXX.X which both charts, both records. million have in The was second from in for can bar million margin increased quarter $XXX.X periods. revenue revenue adjusted year-over-year are company XX.X% of and

year. barrel this assets the prices prior a $XX.X averaged revenue strong quarter. the approximately compared to also $XXX increased averaging WTI per ago. the Natural during $XX million from contribution Mcf an quarter recently than XX% pulled significantly year Oil during price Mcf a Henry and ago prices $XX.X with from as The increased an significantly but a have Hub increase still back energy $X $X.XX from year. less continued quarter, barrel, are quarter million last the of to Second year to gas ahead a

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

metrics: and the adjusted X both June are records XX, adjusted ended Some the revenue, XXXX. X financial EBITDA key income months company for and net for

record of assets as did lower XXXX per ago. On in which and the States the on stream This rate the sales from was ounces all sold. quarter, deliver ounces higher lower the Canada which assets. in generated million sales slightly to of than cost of are not per was of amount for at fixed as the net higher effective adjusted share is cost and ounce equal. the QX a dependent of continued also Depletion delivered was stream million, Slide the net the lower side, Adjusted were due stream was rate Franco-Nevada. quarter X Cost With a X% payments relatively compared mining prior while mining we which sold in resulted respect United recorded. sold less received previously. this tax in XXXX. calculated being for million energy energy taxes, was depletion equivalent flat and income Adjusted $XX.X $XXX.X our XX.X%, and on the quarter a was to increase is differentiators X% the consider to versus over highlights million well as the Depletion With we a lower is of $XX.X oil diversification have trended production, income strengths GEOs from income business. $X.X year to one energy as EBITDA we per barrels year. GEOs portfolio, actual share, $XXX.X increase the

metals. to the be XXXX our quarter, XX%. The asset QX with Cobre total followed revenue only revenue Canada the XX% asset the With the precious profile largest than from highlights our of the to in U.S. generated being revenue of sourced continues operator by of respect was Candelaria. XX% approximately XX% Panama generator diversity. revenue. for being by geographic shown, Panama As and revenue chart was our last Americas, at diversification, And greater Cobre XX% revenue has

being illustrates generated margins. business which generate one to is Our strength operator by model of our Panama. is again largest one Cobre X any Slide revenue to who exposure first high operates the XX%,

margins. cost cash quarter by ounces For gold fluctuate royalty mix including The versus GEOs, This per XXXX, equivalent second divided in second stream depending per is GEO. on is GEO which quarter per sales will of cost $XXX compares to GEO, $XXX the mining and We of sold, to you sold amount rising should generates the XXXX. essentially cost current environment, fixed. GEO price gold as consider be energy. a expect average But company the we see, to increase significant our essentially In significantly. fully per the cost commodity as at not prices, structure benefit can

chart business besides cost our cost on clearly possible business. The of corporate The the is costs. the in focus and to as administration the Slide stress illustrates for component as efficient like company on our X managing our cost sales We scalability. strength of model this being other

expenses our corporate compensation admin quarterly our revenues quarterly and highlighted we've Here, share-based since our IPO. and

fairly see, have you remained As period, while corporate revenues costs have stable. over can the grown significantly

continue our grow our updated corporate than cash overhead to of required is by and Share-based mark-to-market was $X.X portfolio Slide less can For as XXXX, held administration, including guidance X% assumptions XXXX. expense deferred company. the compensation our the directors. million for the we business without XX or to compensation of units company summarizes as revenue. fluctuate on Management believes QX the share-based commodities remainder pricing can expense, adding quarter-to-quarter for add all to highlighted the significant slide. to We've XXXX for our share

not Our guidance ranges changed. have

are sold Vice GEOs of are guiding total Mining recent for estimated our be Senior metal XXX,XXX over XXX,XXX to to transaction Ventures. with Eaun precious to now GEOs Development, I it XXX,XXX G XXXX, turn to our We President, will Business review to which to Gray, $XXX,XXX.

Eaun Gray

is records financing. In with Sandip. quite has delivering Brazil, package we similar one a that Mining the projects frankly, in We're potential jurisdiction. standpoint G to America. land a conventional provided pleased as there's of project team complete believe Tocantinzinho track and, The you, July, We good project partnering a delighted has be that were to Ventures, successfully the the mining Thank best very in broader is from upside in season Pará, located well. and South grades great technical

covers that project Mining key also We've and for worked primarily We have this parameters very transactions. such provide deal into cost the us $XX.X loan million with through equity to a the and plus a study. financing full participation on described million mine, the Eldorado. slide Mancha the right on million for Franco-Nevada's an alongside will highlights team buffer. $XXX term gold a the a $XX providing future also expected agreement as stream, La opportunities is in G feasibility be we'll but build This recent included

financing, depressed to XX, good million to particularly call Slide believe this of the this at valuations Equity hand back developers we we are billion. to of put contributing the of On efforts in Minings' years. support up capital with X part line high be environment, communities Bonavie. our available projects. and of highlight moment developers to environment good With can as G will to the capital $X.X $X work the on we commitment Finally, over I'll that, inflation with we

Bonavie Tek

you session. presenters. the to begin you Q&A may our now Thank Operator,

Operator

[Operator Instructions]. in with Adam Josephson take question from KeyBanc. our We'll first

Adam Josephson

about you're quarter? question be Sandip, third specific more in quick you impact Stillwater. the about the expecting Can

Sandip Rana

the have are trying June, think guess there I had very but Sure, are don't of anything and it. Adam. QX, they -- to, our or GEOs. I I nature. don't close they restarted They in approximately injuries if flood but X,XXX be the any on late approximately to are do start would it's they GEOs it know in restart or that unfortunate, impact if

Adam Josephson

Okay.

So a of... terms consequential really not -- in

Sandip Rana

[Indiscernible].

Adam Josephson

Yes. Yes.

with is terms the of just upon deteriorates. expectations as fallen that to Eaun. intended and Chinese wanted for In matter. updated peaks other down destruction Obviously, the of of on prices nat this have lockdowns, demand I best gas combined erosion Perhaps demand drill your assumptions, economy and price recent because further from -- oil for

qualitatively on production seen, a plans? energy seeing how can plans assumption know year your prices based barrel. Just prices production of to those I and talk and you've But and terms partners about specifically that more based you just oil you what your be WTI the by energy with raised your full expect you gas resilient conversations $X markets you're and on in

Jason O’Connell

Yes, it's for the question. Jason Thanks here.

an for think, run-up that of a months over conflict. deficit. was seen that really supply before the to steep a a in attributable even that, prices prices I think But was, I there oil underlying number here. -- of is in to Part likely run-up attributable Ukrainian oil, we've

Some premium out, negative of continue come overall apparent. China so month here of over become as to last economy or COVID as the the in that out, point you the concerns has and sort impact

still our strong. activity will been in remain that and rates have is that U.S. strong particularly we on here. operators forward, we've think impact Going peak a lows have significantly rebounded that for levels before in seen activity prices while drilling rates, quite we late operations They've of from below saw that cap. price XXXX. in oil would we back XXXX the sort the We're still seen The

are they I'd So where up, we're of activity it XX%, an activity deploying we'll say, go levels. capital. probably but looking still levels those eye those XX% And disciplined keep how at are holistically, on peak in

continue I here, to so it be a robust. be And I strong expect up say to don't ramp will but it would

Adam Josephson

that, expect you do number Or back to any I stretch constraints XXX% continue the perhaps, based in future? a is appreciate to that. that of on Do get to foreseeable you think exist?

Jason O’Connell

Yes.

and on it I how stay think will depend where commodity prices long go then ultimately elevated. they

$XXX $XX unless barrel. don't a significant north imply volumes you inevitably sort activity I we that on if get production were are would see their commodity part. in rates U.S. think the which strong see highs. activity prices levels, to a see guess, think to up of our strong of below back of prices, obviously, I back think $XX to in barrel prices that's commodity the if peak they don't growth kind But overall you'll I at commodity creep very in range, very a where will levels, we'll But come those towards

Adam Josephson

transact? deals Yes. affecting decent And been one obviously, market deals Paul, cycles just paid that's prices included. gold recently, to your today and for have previous just the they've some willingness to in announced Can what how There been you. up you being yourselves compare sized for

Paul Brink

it. maybe a more -- has doubt it saw industry I competitive, comment, become no about our

on question environment? that can So thinking about environment, how all best is, playing you Eaun the to in the business Eaun, real this if progress turn in Gray. we're you you of and sort how do comment

Eaun Gray

teams I for with and moment miners, we meet opportunity. that with ago, drives in stress think Thank that this the projects see as that did effectively We In markets good we do a we good financing. can have our that capital as some you, mentioned partner Paul. environment, groups GMIN and and

deals, of but to our area more going majority So to focus drive the forward. kind of medium-sized really it's key focus for a efforts. that's going a be good of think does us we place That

Adam Josephson

that it. are to also almost -- do you companies with? long you that of it these -- stress the capital how based some it because And it's stress? consequently, these likely the inflation last? would Or attribute closed entirely appreciate dealing is And what on to think I Eaun, just markets is exactly the is

Eaun Gray

contributor markets that. I yield the at with yield. And challenging a certainly would say tough opportunity. the And companies markets same an the fairly High a access capital to that's smaller they to are at are also fickle, and to market the of moment. so high for markets moment, change. medium a pretty But equity can developers, remain I for lot is mining think

So that also drives opportunity.

Operator

next Ihle Wainwright. HC with Heiko to Go question our from

Heiko Ihle

of again, sellers what for market provide the seeing a of placement a on color private a you're stream streams? with a loan as to went term opposed bit the of you at of on a nice that somewhat to partially was for it your bit you on as a the in the the see maybe a at Obviously, least scale into deals part have we private well the future, streaming? were larger folks thing money us tell what building about term transactions the large if G might be that Congratulations X done sold tend stream a outright project, not And the and get Mining where given money ways climate to bit only with disposal, seeing other deal Obviously, the think you're obviously. spent again equity happening big It's nonetheless. amount still a quite you in figures Tocantinzinho, being placement. the with of maybe And loan can for stream, all you in but scare. of

Eaun Gray

the Thank you question. for

component capital type lion's the markets others. Mancha financing mall share you equity going environment was rate. the participation fulsome a and That's You're you it in term We're to in few for right. participate that. to I to . think, was this challenging, capital a of doing and as entirely alongside loan complete groups together current important, provide But our La The forward, see in still remain solution. a Eldorado We bring financing the happy did provide should picture. a could of the possible where a

Heiko Ihle

risk joined the important become South many other bit Energy who's just than quite another in of Mining XXXX mining. in May, been in they've in then factors geopolitical We of years. the America, had against And literally hopefully who a more spectrum, Yes. and end Minister the fray have

are of You color South to touch tied of provide and world Mexico, you got the you're about revenue maybe Central things provide or willing our they of Can this as thinking As if in which some more watching get assets just XX% much divesting bit the you're trading America. a And setting. parts little color dicey -- intently? most a on than away you are? to

Paul Brink

the doubt May particularly Sure. it. COVID. Heiko, a left, well has spurred to South about no in have shift any case, but in been happened There certainly my America. on

So an we do eye that. keep on

a our we about jurisdictions. can think have The one areas some our need greatest portfolio, be risk. the way of investors that to capital In in is low-risk is most We we you good for strengths risk. some have that of it way of our more of As know We be mining, participate. diversification. do take to to needs want exposed think to we

elsewhere. to It's these obviously, to of them, amount continue just we know countries. and that context Yes, that long-term to circumspect you of a the from set applies of what in about U.S. portfolio. time, over happening you're question seen dollar reasonable means and one it. each honestly of the region in to the participate some our we next. political more bit and very But what's we've in pendulum of to The We're is the investors. have need a Canada exposure the what's leaders swings and a quite same the So also

the context so divesting hold bumps the them I way. to spend ride out, interest. much the and along holding mentioned, don't time So portfolio of just thinking happy happy to as palpable More we're out interest. the We the that in our is about

Heiko Ihle

really Internally where you enough not have will break Yes. you. diversification one so asset

Operator

Lawson of We'll take with Bank question Winder our next from America.

Lawson Winder

these of I primary first to precious say byproducts you metal metal the -- precious mines or about wanted well, of with pipeline. metal opportunities, precious all, strong When base mines? a are pipeline metal

Eaun Gray

would say primary of more on I are question. I metals exist, the the Not but a bit the they're say would product. moment for other to at you opportunities say probably a Thank focused precious primary we opportunities. seeing more that don't focus the on

Lawson Winder

mean, slide concentration by got what Got risk? I then operator Franco And threshold your So there increase that yes? were of top one in showed would to would does how Or you thinking, example, materially via it your opportunity offer like it. assess me for to Okay. if be streams portfolio, the other operator. would X diversification concerns? some for exposure existing your And really example, be assets be that their maximum -- where an easy I

Paul Brink

It It's think answer was assets. single obviously depends are. of that could obviously context. on good single operator they on it there that It jurisdictions depends about. something wish quality the is. the depends on It the where on a we I or the how number. I depends say a

something is on performance so sort of of of because time. lines. Also your no the -- in important the that is it So operator capability building Obviously, we assets, asset bringing dependent much pay attention more when that to. on bright

good do theme even A move in on time, focus been to also as investing think very our got And is, I operators. into that's in the So assets fortunate, Franco stronger suppose out assets. played over we we that hands. thinking time We've I say. about over for plays

Lawson Winder

you just interesting that an That's last made, one. comment

on So assets takeout acquisition basically like idea of could candidates that if I'm that candidates? streams or you're interpreting possible saying be you the correctly, getting

Paul Brink

invest And change. assets as asset you a time. you any even over The company, they great migrate look Also good into in industry, doesn't we we know, the time, turnover. there's doesn't the at chances all hands geology of The get amount any stronger you are right, country can the feel operators assets, change. just in if change. if Over the

Lawson Winder

then said. a you Well one thinking it. Got America, about do is have up of South in actually on was exposure I regarding our America And Argentina. other following lot question not South to particular country

I that point? and facing. material add Franco challenges actually the Franco's What is be exposure well country's Argentine quite served this think to at currently given had would that's appetite

Paul Brink

right We're to open the anyone adding -- -- -- surprise exposure is And to -- things in monitoring are the geology the it, We're -- so the came that it. Argentina. to we moving in they They keep think the evaluating call, direction -- that of country up, time think at the on the we no the spend sure. fantastic. moment. lot that's If would opportunity a on The it. for

Operator

question our Jakusconek we'll from And next Tanya with Scotiabank. take

Tanya Jakusconek

I forward. can is like me QX. supposed like of I'm looking really. forecast will as you guidance Sandip, the think revenue to just that to I Maybe in little XX% had it is Hemlo come bit? to I have was or one been have do help trying guidance two giving out the a we

had QX. a Now we've stronger

what we X next are any we for seeing the So quarters? contribution? Are looking for Hemlo

Sandip Rana

I you, cost should million in be predict structure, as and be a upon cost. It estimate CAD based of of to quarters Hemlo surprise a is estimate over an approximately X -- CAD my that's quarter. production on because NPI. what for an next lot And million X level my the Obviously, X a to the understanding Yes, was -- No, Tanya. I harder to it's So to well. it's the forecasting us My hear

or So I'm tell, you. that's the not, Whether to I guidance only what but forecasting. comes time that's give fruition can will that

Tanya Jakusconek

it X,XXX-ounce hand Is assume safe performance Okay. That's have -- just assume and as normalizing. should that most QX for look obviously have we QX to QX a to this on got sort better that QX, that the GEO up a of we've And QX? appreciated. basis out Stillwater looking at than it safe is and companies QX

Sandip Rana

been QX has for strong a us. Historically, quarter

XX. announced one For is will Vale QX, the of September that on aware debenture get we're not the payment that yet part

in accruals our if comes made that So obviously, we've royalty Vale that there. make dividend we QX. is But for in the adjustment would higher, paying

So you all does yes, be accrual adjustment, but that, being QX, equal, will stronger than a will that that QX QX likely through. things come Vale little have

Tanya Jakusconek

Okay. that's do number size? I deal that you there medium can someone can And help to that define Or your and think as we helpful. What understand, just back environment one, Are circle was size the on size? medium a are I medium-sized still No, M&A me medium you What is is maybe in opportunities. maybe -- range? mentioned your

Eaun Gray

Tanya, it's Eaun.

think, I think medium. it. as a think bought That's, fair we of characterization what of you I

Tanya Jakusconek

That XXX...

Eaun Gray

Yes.

Tanya Jakusconek

component, components and stream of an year, stream, forward? I thinking mean, debt of be going debt. have these And Should an gold you a that for to we're which at started transactions mostly again, seeing forward I going equity plus now beginning looking your assets, equity of thinking you're X plus deals, Eaun, precious new the -- and are that be a should to focus Is and I when overall thinking be I sort so on appear component formula is, equity to the -- a for stream companies I transaction? how developing are that should on be just is metals. going deals now right

Paul Brink

successful, I want So need Tanya the and -- The do royalty way to we and it we thinking about -- of Paul. the much and instrument, a is as we're streams and optionality it are we about way we the itself is terrific we're to our think because we element at in picking of business other the the make right love and assets. it. our as think good that you that can But get business

time. can due take that you diligence assets think and to the view, ability which the about a So better it's better do are do over

So said let's stick is, market if we've what to gets that. the more competitive,

to capital most. primary that's approach the of recognize their overall package, we're we them that that folks for Let's like royalty our are this the really and with taking. other reach. then assets If that and let's get we help in elements structure financing pick that of And market, can the hard objective stream

right asset be you And provide so and flexible more it's the than financing. the get about how anything,

Tanya Jakusconek

think royalty And -- keen are those? occurring view I've are are that little transactions portfolios of about royalty we're surprised smaller that just of? are royalty while, out other there understand you as size big your maybe the any such to I've in not been you you at seeing of of aware kind of last seen this Or material that and looking portfolios I'm

Eaun Gray

Eaun royalties. various on opportunities again. it's basis, see, with an We Tony, do ongoing existing

with spending as but is a that lot our I are time, a component So of -- mentioned, developers. to we trying work where is

Tanya Jakusconek

Okay.

transactions, very core few there outstanding. big were the of left So those

Eaun Gray

there's to wouldn't royalties number, and trade large that, time. a I that exists there are say but time from they like

Operator

Your next from Independent John John Tumazos Tumazos question Very with Research.

John Tumazos

or of the just they companies emerging money. Brazilian the of junior build campaigns. little of need many how the might a many you full Clearly, the many raising a operator, by transaction the did, a executives new companies in terms Quantum you'll years their budgets out, are new this consider years have of First to go, but out, how that companies, many have more management, afford tight. give often suite that like are new production the of as financing management mine Could the before us a not -- many, the new the they companies you can't explanation are veterans mines company, how companies, [indiscernible], emerging depth X But In they case. you have it's the time hardest is least

Sorting depth management challenge. out a of the is

Paul Brink

finger building folks, often John, issue, it's it key a you the from when a suffers -- projects. a and shortage industry, pick in experienced industry particular of we to comes that see key in

but we execution have execute, of a people again, not down have, that spend a of attention So put good the over do plans, -- ability an time do to execute of we we've growth plans. folks won't exact particularly those amount we years. at that believe on pay looking Again, We're can to they say on something of build. they on good to is got we're I fortunate, do that the portfolio number we in that lot they it

we're immediate on up So to hanging not trying growth. add

But flexible. those we're so at more we when the So in, stages development. in be of deals of come when the terms timing of looking can projects'

your the at means of they downside It got the and be confidence outcome, and to it put downside of you our yourself money stage What to money sure amount downside case in and make that our we in mine terms of back worst case, and your the enough becomes economics where mean rules our a at enough enough -- to projects of upside. we've that on least the get are get sure it's does you case on in to a stage your want -- business, development? confidence back, sales know global we've got money none -- that that explore that's to in You make of ore your the got you and development is, upside. case, expose

the So looking those are sort brackets do. can't what of at capital, we're and around we meaningful when can

John Tumazos

in slug contrast earlier-stage and Cisco to say, or Gold a Nevada, were companies. have of capital we those to their companies If bigger Franco invested Royalties Sandstorm,

obviously a You lower have valuation. much

majors is the with staying valuation your really the stock. of for maybe good So

Paul Brink

The the have. comes good -- to out -- both we rather the always the built-in that royalty the than we of that parts. of from optionality and is hold that to I a One part I think way, Yes. X that thinking company in a lot the depth ourselves -- it of is premium portfolio

get I on It's shareholders ultimately, part if record. you it what track regardless your of their think think premium. decisions is them can of do, feeds can make that, that and, demonstrate good I you your returns -- you to that capital other into the

think I mind, things valuation. the company are are sustain in my the important in that those that to X So

John Tumazos

projects Do because or from the more in to years need point X the harder that's X companies in to production? are where the years markets write for production think that them before money partly and investing tough be you raise checks, you'll the it's

Paul Brink

now, there's It's is. think -- that a market good the all where likelihood I the it for reasons and you just say. of it's

the need most. So capital seem that those the be the to people

So can that that we put hopeful work money I'm to area. more in

Operator

We'll with Adam KeyBanc. our next question from Josephson

Adam Josephson

in rather previous question go you more mentioned response why just precious metals Eaun, that base mines of into streams case? at that it. Can and to metals. than are Appreciate more think looking detail you on you're you the that's about on a royalties the

Eaun Gray

probably markets. on about. elevated. have you of off, kind quite symptomatic also, capital I first the a until that would spoken somewhat up base quite of larger the side, I precious Also, we've do it's the prices have say, Sure. think of And projects number then generally, been size metals recently

number balance sheets left I So has quite think of that a strong.

Adam Josephson

cases. to just economy future? considerably in the change metals mean, come many obviously, you base latter point, might were toward be you would mind, have long continue quite you I expect the pendulum expect that lag so there mines? that shift with if down as the particularly, expect base weakens, How in what -- foreseeable in case, be point the to metals global And to back would at prices the to to that a

Eaun Gray

major we've is in can industry to relatively the quickly, hasn't pendulum At could a move the and cyclical seen quickly. Certainly, fairly degree, the and that past. moment, a swing this it but certainly

Operator

line. further It to Tek, the phone will questions from I will over turn Bonavie appears the no on who questions the now there session Q&A take webcast. are

Bonavie Tek

Christina. you, from XX% Is have long-term generate We Capital to less of still assets? your revenue Diego Noster of from Management. do question than [indiscernible] target energy Thank X

Paul Brink

Yes.

means is overall to proportion unchanged. of to good want Our precious are is is to that different be And we've do in And be behind to available, and times. assets cyclical, which strategy thing come got the -- when able the markets them. then the core do gold overall opportunities become We our gold at we metals go-to high. portfolio target keep the stock,

portfolio in take Where time over on make performs to so stay so as from number available, a stock diversified, to we possible that as but away we're the there. flexibility that board, you now manage good the have to particularly that a portion been well. larger particular putting Right out different that right when We've it metal amount from is the so precious we tends we gold sure think I prices means [indiscernible] commodities. It So as now, doing are a of market? to look they are in are you exactly if prices oil revenues. be have It want going local so can much when it you problem. stock. particularly assets become going or at fortunate, that as do, as them energy the We vast weak. self-fixing a capture precious prices are of

markets good equity sector. it the are Although means pice-to-add weak, in is gold assets some

in and next we'll that will opportunities. have metals we'll the most I we build that deals side be do good up think And precious business. likely, of

Bonavie Tek

conference quarter and Thank for you, are concludes no second you, Paul, results the your further from Diego, then This call thank our questions and webcast. XXXX question. There webcast.

X, call We release the third results held for that market conference November with opens XXXX you Thank before morning. expect in your to quarter our on also interest Franco-Nevada.

Franco-Nevada (FNV) 11 Aug 222022 Q2 Earnings call transcript