Given the lower available capital after recent transactions, does this change the outlook for GEOs or deal size over the next year?

Management affirmed that the company's strong annual cash flow generation of approximately $1.3 billion provides ample firepower, ensuring no constraints on capital for future transactions or GEO growth. “Our business continues to generate more and more cash every year. Currently, it's around $1.3 billion a year. So the -- no constraints on the capital side between the available capital with our revolver, between the amount of cash we're generating, we've got plenty of firepower, I don't think it restricts us in any ways.”

What positive impact does the platinum price rebound have on the Sibanye Western Limb asset, and was this factored into the acquisition?

The platinum price rebound was a pleasant surprise, providing an excellent tailwind for the operations and improving the economics of extension projects, increasing confidence in the long-term viability of the assets. “Yes, we've been very pleasantly surprised versus our expectations with platinum. The price has moved up very significantly. We believe this provides an excellent tailwind to those operations and should allow a number of the extension projects that -- which we spoke about at the time to have much improved economics.”

What gave Franco-Nevada confidence in the Cote Gold asset, particularly as a profits-based royalty, and what is the view on its path to being a low-cost gold mine?

Franco-Nevada worked directly with IAMGOLD on the acquisition, gaining unique insight into operations and long-term potential. The scale of the resource is impressive, with potential for a 'super pit' between Cote and Gosselin, suggesting robust production profiles. Confidence in costs stems from it being a new, highly automated mine with best practices and a strong management team. “this honestly, was one of the most exciting opportunities that we've looked at in quite some time. The scale of the resource is quite impressive. And if you refer to IAMGOLD's call last week, they're starting to talk about a super pit between Cote and Gosselin. So the potential of this to your some of the production profiles you've seen in assets like Detour, Malartic, we see as quite robust.”

FNV

Franco Nevada (FNV) Q2 FY25 earnings call: guidance and Q&A

Earnings call· Jun 2025 (Q2 FY25)· Materials· Aug 11, 2025

Source: earnings call transcript

Executive summary

Franco-Nevada Q2 FY25 — Record Financials Driven by High Gold Prices and Portfolio Growth

Franco-Nevada delivered record financial results in Q2 FY25, driven by strong precious metal prices and robust portfolio performance. The company continues to strategically expand its asset base through acquisitions and progress on key growth projects, while maintaining a strong financial position. Positive developments at Cobre Panama offer potential upside, though the asset remains offline.

Highlights

Achieved record total revenue of $369.4 million, a 42% increase year-over-year.
Reported record adjusted EBITDA of $365.7 million, up 65% compared to Q2 2024.
Precious metal GEOs sold increased 12% year-over-year to 92,449.
Made significant progress on Cobre Panama, including the shipment of remaining concentrate and positive sentiment for a restart.
Expanded portfolio with strategic acquisitions like the Cote Gold royalty and Arthur project royalty, alongside progress on growth projects like Cascabel and Castle Mountain.

Concerns

Diversified GEOs sold decreased to 19,644 from 29,914 in Q2 2024, primarily due to the impact of higher gold prices on conversion.
GEOs from Antapaccay were lower than expected in the quarter due to timing of deliveries, though a stronger second half is anticipated.
Oil prices have pulled back in recent months, which may soften Permian production levels and drilling activity.

Guidance & targets

Category	Target	Timeline	Confidence
Total GEOs sold	465,000 to 525,000 high materiality	FY25	High
Precious metal GEOs sold	385,000 to 425,000 high materiality	FY25	High
Cobre Panama GEOs	approximately 10,000 GEOs medium materiality	Q3 · FY25	High
Gold price assumption for guidance	$3,250 per ounce high materiality	FY25	High
Silver price assumption for guidance	$37 per ounce high materiality	FY25	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Precious Metals Precious metals accounted for 82% of total revenue in Q2 2025.	82%	—	—	—
Americas 86% of total revenue was sourced from the Americas in Q2 2025.	86%	—	—	—
Candelaria Candelaria was the largest single contributor to revenue, accounting for 15% in Q2 2025.	15%	—	—	—

Deals & partnerships

IAMGOLD Royalty acquisition on Cote Gold Mine

Acquired a royalty on Cote Gold Mine, one of Canada's newest large-scale gold mines. Cote and Gosselin have 16 million ounces of M&I and 12 million ounces of inferred resources, with IAMGOLD targeting over 20 million ounces of M&I.

AngloGold Royalty acquisition on Arthur project (Merlin and Silicon deposits) $250 million

Acquired a royalty on AngloGold's Arthur project in Nevada, comprising Merlin and Silicon deposits. The project has 3.4 million ounces indicated and 12.9 million ounces inferred, with an initial assessment outlining 1 million ounces per annum production for the first years.

Newmont Interest in Yanacocha operations

Acquired interest in Newmont's Yanacocha operations in Peru in the last two years.

Sibanye Interest in PGM operations in Western Limb of Bushveld

Acquired interest in Sibanye's PGM operations in South Africa in the last two years.

SolGold Interest in Cascabel Copper Gold development project

Acquired interest in SolGold's Cascabel Copper Gold development project in Ecuador in the last two years.

Discovery Silver Royalty on Porcupine operations

Acquired a royalty on Porcupine operations, operated by Discovery Silver.

Taseko / Chukotun First Nation Stream financing agreement for New Prosperity project $300 million

Holds a 22% gold stream financing agreement for the New Prosperity project, contingent on permitting. Recent positive shift in relations with Chukotun First Nation, who now have an ownership stake.

AngloGold Transaction to consolidate district around Arthur project

AngloGold announced a transaction to further consolidate the district around the Arthur project since Franco-Nevada's acquisition of the royalty.

Risks & headwinds

Cobre Panama remains offline Ongoing

Asset fully impaired; no revenue contribution currently.

Mitigation:Engaging with government for resolution, suspending arbitration to create space for solutions. Considered 'all upside' if it restarts.

Antapaccay GEOs lower than expected Q2 FY25

Lower GEOs in Q2 FY25.

Mitigation:Solely due to timing of deliveries; stronger second half of the year expected from this asset.

Softening Permian production/drilling activity Recent months, potentially ongoing

Oil prices pulled back.

Mitigation:Permian assets are reflective of overall basin performance; production levels and drilling activity likely to stay reasonably consistent, perhaps soften slightly.

What to watch in Q3 FY25

Cobre Panama restart progress

next quarter

Current Arbitration suspended, concentrate shipped, positive sentiment

Target Further clarity on restart timeline or resolution

Why it matters

A restart of Cobre Panama would provide significant upside to Franco-Nevada's GEOs and financial performance, as the asset is currently impaired.

We expect to release our third quarter 2025 results after market close on November 3.

Find out whether FNV delivers this. Inve re-checks your case every morning.

Q&A highlights

Why did Franco-Nevada suspend the arbitration proceedings related to Cobre Panama?

Management stated that suspending arbitration was a request from the Panamanian government to create space for finding a new solution, and the company is amenable to working with the government for a positive resolution, as a mine restart is the best outcome for all parties.

“It had been a request of the asset from the Magino government that the arbitrations be suspended, to give the space, to try and find a new solution. So we are very amenable to working with the government to allow that to happen.”

asked by Fahad Tariq · answered by Paul Brink

2 min read 5 chapters

Detailed narrative

Cobre Panama Developments and Outlook

Franco-Nevada reported constructive developments in Panama, including the approval of the preservation and safe maintenance plan for Cobre Panama and the successful shipment of the remaining copper concentrate. The company noted a shifting sentiment in the country towards a restart of operations and management's continued commitment to finding a resolution.

Franco-Nevada suspended its arbitration proceedings at the request of the Panamanian government to facilitate a new solution, viewing a restart as the best outcome for all parties involved.

Strategic Acquisitions and Portfolio Growth

The company continued its active portfolio expansion, acquiring a royalty on IAMGOLD's Cote Gold Mine in Canada and a royalty on AngloGold's Arthur project in Nevada post-quarter end. These additions build on previous acquisitions like Newmont's Yanacocha and Sibanye's PGM operations.

Management highlighted that the acquisitions over the last two years, combined with the potential Cobre Panama restart and New Prosperity development, position Franco-Nevada with a highly exciting growth outlook in the space.

Growth Project Pipeline and Permitting Progress

Franco-Nevada anticipates attractive growth over the next five years from its existing portfolio, particularly benefiting from improved mine permitting processes in the U.S. Three projects, Perpetua's Stibnite Gold, Hudbay's Copper World, and Castle Mountain, are advancing. Castle Mountain's inclusion in the FAST-41 permitting process is expected to accelerate its development.

Additionally, SolGold's Cascabel project is now targeting first production as early as 2028, potentially entering Franco-Nevada's five-year outlook sooner than anticipated.

Financial Strength and Capital Allocation

The company reported a strong financial position with $160.3 million in cash and cash equivalents at quarter-end and total available capital of $1.6 billion, which adjusted to $1.35 billion after funding the Arthur project acquisition. Franco-Nevada emphasized its robust annual cash flow generation of approximately $1.3 billion, enabling rapid repayment of its credit facility and continued pursuit of high-quality assets.

The company's strategy remains focused on being a long-term financial backer for companies with great assets and management teams.

Asset Performance and Diversification

Franco-Nevada's portfolio largely performed as expected, with strong contributions from Guadalupe and Candelaria, and continued ramp-up at new mines like Tocantinzinho, Greenstone, and Salares Norte. Precious metals accounted for 82% of Q2 FY25 revenue, with 86% of revenue sourced from the Americas, demonstrating continued diversification.

The company also noted the leverage of its Hemlo NPI to higher gold prices and a catch-up payment from Musselwhite NPI contributing to strong performance.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.