Franco-Nevada Corporation Aktie

Good morning, and welcome to Franco-Nevada Corporation's First Quarter 2026 Results Conference Call and Webcast. This call is being recorded on May 13, 2026. [Operator Instructions] I would now like to turn the conference over to your host, Bonavie Tek, VP, Finance and Investor Relations. Please go ahead.

Thank you, Vincent. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's first quarter 2026 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results. The presentation is also available to view on the webcast.

During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks; followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q&A period. Our executive team is available to answer any questions. Participants may submit questions by telephone or via the webcast.

We would like to remind participants that some of today's commentary may contain forward-looking information. We refer you to our detailed cautionary note on Slide 2 of this presentation.

I will now turn the call over to Paul Brink, President and CEO of Franco-Nevada.

Thank you, Bonavie. Good day, everyone. At yesterday's AGM, David Harquail gave his last address as Chair before taking on the title of Chair Emeritus. As shareholders, we're all tremendously grateful to David for the incredible value he's created over 18 years at Franco-Nevada. On behalf of the Board and the management team, I'd like to thank David for his vision, his leadership and his entrepreneurial drive that's created the success that we've all shared in.

We're delighted to have Tom Albanese, who was most recently Lead Independent Director of Franco-Nevada, take on the Chair role. Many of you are already familiar with Tom from his prior CEO roles at both Rio Tinto plc and Vedanta Resources, and many other corporate director positions. His depth of experience and his intimate knowledge of Franco-Nevada from his many years of prior service on the Board position Tom ideally for the role.

Turning to the first quarter, we once again realized record financial results, record revenue, operating cash flow, adjusted EBITDA and net income, driven by higher commodity prices and contributions from recent acquisitions. During the quarter, we also had a gain from a partial buyback of our Cascabel stream as it moved into the hands of Jiangxi Copper, a party we believe is very capable of building and operating a large-scale mine.

Oil prices have traded 70%, 80% higher since the U.S. attack on Iran at the end of February. While not much of the higher prices accrued to Q1, it bodes well for our Q2 results and potentially through the rest of the year.

Franco-Nevada is unique as a mining equity. Not only is our royalty and streaming model largely insulated from the effect of energy prices and cost inflation, but at current prices, oil and liquids can contribute meaningfully to our revenue mix.

Q1 '26 was one of our most successful quarters growing our business with 4 new acquisitions, the gold stream with Orezone on Casa Berardi, royalty financings for i-80 Gold in Nevada and Minerals 260 in Western Australia and purchase of a third-party royalty on Banyan's AurMac. All assets were able to secure attractive resource optionality in good mining jurisdictions.

We saw encouraging progress at Cobre Panama. The quarter saw coal shipments received for both power plant units restarted and power supplied to the grid. The government of Panama then proceeded to approve the processing of stockpiles. This was an important step as it allows the company to restart the mills, which has the immediate positive benefit of increasing employment in country.

The audit -- the environmental audit carried out by SGS Global is ongoing with 5 interim reports having been published without any material deficiencies identified. The final report is due in Q2 of this year.

On the sustainability front, we're expanding the reach of our diversity scholarships for college or trade school programs in collaboration with Young Mining Professionals. We continue to grow our community initiatives, renewed our support for Ensena Peru's education initiatives in Peru and also funded an education initiative with i-80 Gold in Nevada.

Last week, we published our annual sustainability report which outlines our accomplishments in 2025 and our commitments to further our sustainability-related leadership. Report is available on our website.

Our efforts are recognized by the major ESG rating agencies. In particular, during the quarter, we received an upgrade of our MSCI ESG rating from AA to AAA, placing us in the top tier amongst mining and precious metal players.

Along with the sustainability report, we launched our annual asset handbook, which details, first and foremost, our 121 cash flow producing assets, the largest and most diversified portfolio of cash flow producing streams and royalties that exists.

Included in the report is an asset-by-asset mine life detail, both operators' current mine plans and potential mine life based on M&I royalty ounces. In aggregate, for our mining portfolio at current production rates, M&I resources would support 34 years of mining and inferred resources a further 12 years.

The report also profiles our development projects and our higher potential exploration projects. One stat that to me highlights the optionality of the portfolio is the total value of the ounces underpinning the value of the company. In all categories, ounces that are 100% attributable to Franco have a value of $124 billion at current gold prices. That's just shy of triple our current market cap.

To finish, we currently have $3.4 billion in available capital and a robust pipeline of business development opportunities. With that, I'll hand the call to Sandy.

Thanks, Paul. Good morning, everyone. As Paul mentioned, Franco-Nevada reported record financial results for first quarter March 31, 2026. Our portfolio of royalty and stream assets continue to perform well with both the precious metals and diversified segments having a strong quarter.

On Slide 4, you'll see a summary of commodity prices for first quarter 2026 and 2025. Gold and silver prices increased significantly year-over-year with the average gold price higher by 70% in the quarter.

The 2 strongest performers year-over-year were silver and platinum, each up 165% and 128%, respectively. The strong silver price performance benefited our silver assets and in particular, Antamina, where we had a significant increase in revenue compared to prior year. This was both due to the increase in the silver price, but also significantly higher silver deliveries during the quarter.

For the diversified commodities, most remained fairly flat year-over-year. However, with the conflict in the Middle East, the oil price has seen a sharp increase over the last 2 months. Current WTI prices have been hovering around $100 per barrel. This will positively impact our energy revenue for Q2, an increase of $10 relative to our assumed WTI price of $70 per barrel used in our guidance would be expected to increase our oil revenue by approximately 12%.

The strong performance of our assets, combined with record gold and silver prices resulted in record financial results for the quarter. Revenue was higher by 77%, adjusted EBITDA, 84%, and adjusted net income, 123%.

Total GEOs sold for the quarter increased 8% to 136,353 compared to 126,585 in the prior year. Precious metal GEOs sold in the quarter were 117,980, higher by 17% compared to prior year. 55% of our total GEOs sold were sourced directly from mines where precious metals is the primary commodity.

For the quarter, we've received strong contributions from a number of key assets. Antamina, as mentioned, we benefited from both higher deliveries and also benefited from the higher silver price, resulting in an increase in revenue from $21.3 million last year to $82.3 million this quarter.

At South Arturo, we had a 322% increase in GEOs as we benefited from the Phase 1 production of the open pit. Please note that the strong performance is weighted to the first half of this year.

For Hemlo, we had an adjustment of CAD 10 million related to 2025 that flowed through Q1 2026. As you know, with the Hemlo NPI it's difficult to forecast as it depends on a number of factors, including how much mining is performed on Franco's Interlake lands along with how much is being spent on operating and capital costs.

And finally, we're benefiting from asset acquisitions made last year, in particular, Cote and Porcupine, which together contributed approximately 6,500 GEOs or $31.5 million in revenue during the quarter.

Diversified GEOs sold were 18,373 for the quarter compared to 25,962 for prior year despite diversified revenue actually being higher year-over-year at $82.6 million versus $74.8 million. The decrease in GEOs is due to the impact of the conversion of revenue to GEOs. As you know, we are now converting to GEOs using a fixed gold price of $4,500 per ounce.

As you can see on the chart on Slide 5, total revenue increased by 77% for the quarter to $650.7 million, a record. Precious metals accounted for 85% of revenue. Adjusted EBITDA, also a record, was 84% higher at $591.9 million.

With respect to costs, we did have an increase in cost of sales compared to prior year due to higher fixed costs paid for stream ounces as a portion of our streams have a fixed cost based on a percentage of the gold price. Cost of sales was $46.5 million versus $38.5 million last year.

Depletion increased to $77.9 million versus $68.4 million a year ago. The increase is due to depletion being recorded on some of our recent transactions, Yanacocha, Western Limb, Porcupine and Cote. These assets are higher per ounce depletion assets. We expect the depletion rate to decrease over time as the reserves on the properties grow.

And finally, adjusted net income was $458.3 million or $2.38 per share for the quarter, higher by 123% and 122%, respectively. As Paul mentioned, we did record a gain of $63.8 million, which is included in net income for the partial buyback of the Cascabel royalty and stream.

50% of the royalty was bought back for proceeds of $97.5 million, and 50% of the stream was bought back for net proceeds of $40.7 million. The proceeds for the stream were delivered through approximately 10,000 gold ounces, which remain in inventory at the end of the quarter. The Cascabel buyback is not reflected in GEOs revenue or adjusted EBITDA.

Slide 7 highlights the continued diversification of the portfolio. 87% of our revenue was generated by precious metals and being sourced 87% from the Americas. Slide 8 illustrates the strength of our business model to continue to generate high margins. As you can see over the last number of quarters, as the gold prices increased, our margin per GEO has remained fairly consistent.

Our cash cost per GEO has increased from $304 in first quarter 2025 to $341 per GEO in first quarter 2026, a roughly 12% increase over the period. However, the margin has increased from $2,559 per GEO to $4,534 per GEO this quarter, a 77% increase while during this period, the gold prices increased 70%.

As we turn to dividends on Slide 9, the company continues to pay a quarterly dividend with $84.4 million being paid to shareholders during the quarter. We increased the dividend in January by 16% to $0.44 per share per quarter or $1.76 per share annualized. This was the 19th consecutive year we have increased the dividend.

And lastly, Slide 10 highlights our available capital. As at March 31, 2026, the total available capital is $3.4 billion, comprised of $715 million in cash, $1.5 billion with our credit facility, including the accordion, and $1.2 billion in liquid marketable securities.

In addition, subsequent to quarter end, our subsidiary, Franco-Nevada International, entered into a separate credit facility for $500 million and an additional $250 million accordion. This adds additional financial flexibility for the company.

And with that, I will pass it over to Vincent as management is happy to answer any questions.

[Operator Instructions] Your first question comes from George Eadie from UBS.

Can I start by asking about the deal pipeline? Recent deals such as the Orezone Gold deal, the i-80 Gold sort of look like a backing more of mid-tier developers. Is that a sort of pivot you're seeing in the market? Or is that sort of reading into a trend too much?

George, it's Paul Brink speaking. Eaun is unfortunately on the road this morning. So I'll take the question. It is a trend we're seeing, but it's not the only trend. In this market with high gold prices, any operator is making fantastic cash flow. The great thing for us there is organic growth.

But on the acquisition side for developers, it's still very attractive to access our capital and so that there are a number of them that are working to get projects over the line. So I'm hopeful that there'll be more of that through the year.

But also at these strong prices, as we've seen, and is case with Casa Berardi and Orezone, the bigger players are looking at the portfolio saying, what are the smaller assets can they vend out. And in this environment, they can get very good value for those assets. So that is a second theme that's ongoing.

And then the third is BHP in their sale of stream interest in Antamina, I think, really opened the eyes of the market of the hidden value that's in a lot of these portfolios, even big portfolios, that can be created through the sale of precious metal streams. So I think those are all themes that hopefully will play out through the year.

Right. So you guys think there could be more BHP Antamina type streams. Is that right?

Yes. I think a number of the large players are looking at that and saying, "Wow, what a great market reception BHP got." So I'm hopeful that there will be more transactions.

Yes. That's clear. And then maybe just one other on the operations. But Candelaria, can you remind us, please, on the step-down timing next year and just the latest thoughts on the potential underground expansion too, please?

Sure. Sandip here. So the step down will be in mid-2027, where it'll drop down from 68% down to 40%. And as for the underground expansion, I don't believe Lundin has made the formal decision to move forward with that. They're still reviewing it. But if they do, we were expecting it towards the end of this decade for the underground expansion.

Your next question comes from Fahad Tariq from Jefferies.

On Cobre Panama, can you provide some color on whether there's any discussion around potentially changing the stream terms?

On Cobre Panama, all the discussions are first quantum with the government. We are not involved in any of the discussions. The only interaction we have had with the government is obviously around our arbitration. Our overall position there is we're not operators, we're not on for operating risk. So we don't know what the outcome will be here, but I think it's unlikely that you'll see any material change.

Okay. Great. And then just thinking about growth. Just any commentary on potential consolidation in the royalty streaming subsector? I mean, there's a long list of junior royalty streaming companies that could be acquired. Just any thoughts on that versus looking at individual transactions.

From time to time, we run the numbers on the various royalty players. But inevitably, what we find is that there's better value in doing private transactions. Royalty players typically trade at a premium. So it's in terms of relative value, I think the most likely thing that we'd be doing is more private deals.

Next question comes from the line of Cosmos Chiu from CIBC.

Maybe my first question is on your portfolio of equity investments. As we've seen some of your -- in your peer group, they've started monetizing their own portfolio of equity investments, maybe thinking that it's a good time to finance larger acquisitions. You are a little bit different. You continue to add to your portfolio. You added [Audio Gap] and now, Sandip, as you mentioned, has grown to $1.3 billion. So I guess, my question is, could you maybe remind us of your philosophy and your strategy behind these holdings?

Sure, Cosmos. And the 2 largest holdings that we have are with GMIN and with Discovery Silver. And overall, our strategy with these companies has been, find really good teams, find the best mine builders, mine operators in the industry.

And not just be transactional in providing them with a stream of royalty financing, but position ourselves as a financial banker for the company and try and differentiate them with that financial strength, with our endorsement, and that's worked tremendously well for those companies.

So the first part of that is we see ourselves as supporting those companies for the long term and see ourselves as participating in the equity over the longer term. That said, we're in this to make money for shareholders. So at the right time, we will take some money off the table.

When I think of both of those 2 plays with GMIN right now with the build of Oko, I think there's tremendous value that's going to be created as they bring their second mine into operation.

Likewise, with Discovery Silver, that transaction, they've been able to do securing Kidd Creek, allows them to hopefully almost double production output coming out of that asset as they reroute the ores through Kidd Creek mill over time, and it opens up the incredible potential that they have at Dome and to start processing that ore through the Dome mill. So both plays, I think there's tremendous value that will be created over the next one.

Great. I guess as a follow-on, Paul, I did notice that you did not take an equity investment in Orezone. Maybe touch on that. And then further on, on Orezone, I saw that Casa Berardi, a lot of positive chatter out of Orezone, drilling, extending mine life beyond 2 years. They're talking about the gap between the West shaft and the East shaft.

Just to confirm, it would be a direct benefit to Franco-Nevada if any of those kind of materialize? And also just curious, when you look at these deals, how much of this potential upside have you factored into original $100 million investment?

Cosmos, Matt Begeman was instrumental in that deal. So I'm going to let him speak to it.

Yes. So I think as far as the equity question, that was just sort of the capital structure they were looking for at the time, that wasn't a large part of the capital need they needed. And so we just played our a little bit smaller role just on the stream and they have the other source of funds from their other sources of capital.

As far as the upside there, I think our view is there is extensive upside over time. Paddy has got a very extensive plan with the company to drill that out, to make that connections, and we will benefit from that. I mean, I think as you've noted, we're fixed ounces for the first 5 years, but thereafter a variable stream.

And we think there's significant exploration upside over time, particularly in the underground where Paddy is going to be very actively looking to optimize that. So we're very optimistic for the growth there.

Great. Maybe one last question. Sandip, as you mentioned, there are some NPIs in your portfolio. One NPI is the Musselwhite NPI. And in your MD&A, you mentioned that a lot of exploration potential. The Camp Bay near surface target, for example. You might now be part of a larger company given the deal that happened, Equinox and Orla Mining today.

So I guess, my question is, could you maybe remind us of the mechanics behind how NPIs work? And for example, if Musselwhite is able to bring Camp Bay something new into production, when could you start seeing some kind of contribution to Franco-Nevada?

Sure, Cosmos. So NPIs, they vary by contract. But it's not consistent. Sometimes it's -- you recover 100% of your capital. Other times, it's based on the profit, based on accounting. So as I said, they're not consistent.

But with respect to Musselwhite, our NPI covers the entire land package. But if they were to develop that, they would be able to deduct whatever capital is required. So that would be a 100% deduction against it. So in terms of timing, it depends on the quantum of what capital would be applied against it.

So there will be a bit of a lag, but it all depends on how much is being spent.

Yes, exactly.

Sorry, maybe one last question, just quickly on Palmarejo, the 50% gold stream. As you mentioned, core mining has actually done fairly well or very well in terms of increasing gold reserves, extending the mine life by 5 years. My understanding is that there is the Franco concessions and there's land beyond the Franco concessions. So based on your understanding, how much of this upside that they are talking about at this point in time falls within the Franco concessions shorter term and also long term as well?

So they've been drilling -- so you're right. So our stream doesn't cover the entire land package. They have been drilling on Franco land where the stream applies as well as non-stream land. They've been successful on both.

So based on the results of last year, they have been able to extend the mine life of Palmarejo/Guadalupe, where we do have our stream. So we don't know exactly at what point they will move completely off Franco land. But at this stage, our stream at the guidance that we provided runs out to at least the end of this decade, early 2030s.

That's great to hear. Congrats on a very strong start to 2026.

Thanks, Cosmos.

Your next question comes from the line of Tanya Jakusconek from Scotiabank.

I'm going to start just back on the transaction opportunities. Thank you, Paul, for giving us some sense of what is out there. I just want to flesh it out with, again, what is the main size that you're seeing.

And number two, are most of the opportunities in silver, gold? Or are you still looking for non-precious metal transactions? And then are there big ones where you'd be open to syndication? So that's my first question.

Yes, a couple of things in there, Tanya. In terms of deal sizes, there's a whole range. In dealing with the project developers, it's that typical range, $200 million, $500 million. If there are some of the bigger players that do consider streams, those would be far, far bigger deals, but don't yet know what the scale of those could be.

In terms of syndication, we're always open to syndication in terms of managing risk if the ticket size is too big, and we feel that, that will be the best balance in terms of exposure and risk, although nothing currently that we're contemplating on that front.

And in terms of revenue mix, most of what we're looking at is precious metal. But as always, we're open to diversification. And so there are a couple of diversified deals that are also in the pipeline.

And Paul, when you say nothing is too big, like could you do a $4 billion on your own? Would you be comfortable doing that?

We've got $3.5 billion of available capital. So I think that is quite easily achievable. It's just a question of where is the asset, how much risk exposure do you want a particular asset, that's the circumstance that we think about syndication. But if you're dealing with a great asset, great jurisdiction, no need and plenty of capital.

Okay. Got it. And then for the non-precious metals, what size would that be?

There are a few things out there that -- some that are moderately sized, some that could be more meaningfully sized. It's also a range.

Okay, moderately sized. Okay. So would I be thinking $200 million to $500 million for those as well?

Yes.

Okay. I'm going to move over to Sandip, if I could. So you mentioned, Sandip, that there is 10,000 ounces that you are holding right now with the sale of the Cascabel. How should I be thinking of those 10,000 GEOs? Am I thinking those are to be sold in Q2? Or are you holding those for a while? And if so, do they then come into the -- how are you going to handle it from a disclosure? Would you put those ounces back into the -- your GEO ounces if you sold them and reported them?

Sure. So, Tanya, in terms of when we sell them, they're in inventory right now, they'll probably be sold throughout the rest of the year. It just depends on our gold trading strategy at the time. But when they are sold, they will not go through GEOs, they will not go through revenue. They'll be treated as we treat the royalty gold ounces that we sell where we book a gain or loss on the sale. So they'll flow through outside of revenue on that line item on the income statement.

Okay. So I should just think over the year, this 10,000 ounces will be gone.

Yes, yes.

And then just as I think about your -- you had a good quarter, how should I be thinking about the rest of the year as it develops in terms of is it back-end weighted? You did give guidance that stronger Q2 with the higher oil price. How should I be thinking about the rest of the portfolio?

So overall, the following quarters will be stronger, just especially as Paul also mentioned if the energy prices stay where they are because now that we are dividing by a fixed gold price of $4,500, as energy revenue increases, it will lead to additional GEOs. So from a top line metric, it should be stronger as the year progresses.

In terms of specific assets, in Q1, we didn't have any deliveries from Condestable, Casa Berardi. You'll start to see those coming. You're going to see Cote ramp up as the year goes on as well. So I don't have specifics quarter-by-quarter, but the rest of the year will be stronger than Q1.

Okay. And as I think about it, as things are ramping up, would it be quarter-over-quarter sequential increases?

I think you should see a stronger Q2 and then probably pretty consistent for the remaining quarters, similar to Q2.

Okay. All right. Got it. So it's hard to forecast these quarters...

Yes. We have so many assets, right, Tanya, that one quarter, one can slightly underperform while another one outperforms. So it's hard to really go quarter-by-quarter.

Yes. No, I appreciate that. And then just, Sandip, on the increase in Barbados, when was the last time that you increased your credit facility in your Barbados division?

So we implemented a credit facility in 2018 for a few years. It was smaller in size. It was $100 million at the time, and I believe it expired in 2021, and we didn't renew it. Now we just -- we looked at our available capital. We always look for financial flexibility and the banks were very forthcoming with very good terms. And we thought it was a good opportunity to add some additional financial flexibility and additional tool for us. So we put in a $500 million credit facility.

$500 million with the $200 million accordion. So you have $750 million in Barbados...

Yes, and $1.5 billion at the parent level, so $2.25 billion in total.

Your next question comes from Heiko Ihle from H.C. Wainwright.

My questions, most have been answered in all fairness, but I got 2 more little follow-ups really. Exploration at Yanacocha, I mean, it looks like Newmont seems to be willing to spend at that site. Do you want to maybe give a bit of color on what you're seeing in your discussions with their team?

Overall, on that Yanacocha site, that property, you've got the oxides, the potential sulfides project. Going forward, you've got Conga, you've got Quilish. The big issue in the region is community support and their area of concern has always been around water quality.

So Newmont has a huge program that they're investing in the order of $2 billion over the course of 4 years to try and address that issue, dealing with the water management, part of that is providing fresh water to the town of Cajamarca. So I think that, that's the program that I think will unlock all those deposits in time.

Right now, sulfides is on pause. They're looking at some of the other projects. The easier one, and one that may have a higher return of capital is Quilish. So I don't know how they proceed, in what order they proceed with those projects.

But in any discussions, they're very committed to the area and resolving those issues, building good social license, so that ultimately, they can develop all of those deposits. And the summary on Yanacocha is that they've mined 40 million ounces from that property, and there's at least 40 million ounces of gold equivalent ahead of them. So it's a price worth winning.

Fair enough. And then a completely different one. I mean, you got a very strong balance sheet, you got a high available capital, you got ongoing growth in GEO margins. Gold prices don't seem to be going down anytime soon.

Has there been calls for a special dividend at the Board level? I know we sort of talked about M&A earlier, which is the exact opposite. But I mean, should we be more focused on elephant hunting? Or has there been meaningful calls at the Board level to make like a single time payout?

Sandip here. We do have the discussion. Our philosophy on the dividend has always been consistent. Overall, just in terms of where we use our cash, the priority is always adding good long-life assets to the portfolio.

But with respect to the dividend, it's being sustainable and progressive, raise the dividend every single year regardless of what commodity prices are doing and be in a position to raise it for an extended period of time, and we're proud of the way we have handled the dividend, 19 years in a row in terms of increases. So that's the strategy. And I don't think you'll see any sort of special dividend coming from Franco.

Fair enough. I only brought it up because it's now come up in 2 investor calls over the past call it month.

Your next question comes from Brian MacArthur from Raymond James.

A lot of my questions have been answered. But can I ask, first of all, on the CRA, you got some money back and looking to the account, it looks like that's fully settled now, i.e., there's nothing outstanding that they owe you. Is that correct?

Brian, yes, that is correct. So any deposits that we had put down during proceeding with our disputes have now been returned by CRA along with interest. So there's nothing reflected on the balance sheet.

Okay. And then second thing, can you just, if you can, this whole federal government change here in Canada to transfer pricing, I know you say you're still evaluating it, but this is potentially bigger. Do you have anything you can comment on that?

We're still looking into it. I think at the end of the day, we were very successful with the settlement we reached with CRA. I think as they went through their process and actually got down into the details, we went through Discovery, they realized how good our structure is and the processes we have in place and the way we operate our business internationally. So the new transfer pricing rules, we're still evaluating, but we think we've got a very good structure in place.

Right. But this will only be, as you said, from 2026 forward. They can't go back on anything still or is that right?

Correct.

So then my next question is and following up what Tanya asked, so opening the facility in Barbados, does that give you -- other than obviously access for capital at good rates, does that give you any other advantages or like why put it there versus just more in Canada?

I mean, that was a decision by the Franco International Board. Franco-Nevada International, the Barbadian subsidiary, their Board wanted some additional flexibility. They requested it, and so we proceeded with it.

Perfect. And my last question, just you mentioned Condestable. You didn't get paid this quarter, but is that just -- if I remember that correctly, it's just you switched the way this works. So it's just one quarter you didn't get it. You make it up in Q2, and everything going forward is just on a one quarter lag. Is that how that works?

So, yes. So we were fixed deliveries up until the end of the year. And then once it's switched into variable production in Q1, our delivery is mid-April. So it was one quarter, but there is a lag. So we will now be getting deliveries in the first month of the quarter -- following quarter. So Q1 production is in April, Q2 production will get delivered in July and so on.

Okay. So it's just a timing issue really.

Yes, it was just a one quarter window there.

Your next question comes from the line of Derick Ma from TD Cowen.

I just wanted to ask one question on the second revolving facility in Barbados actually. Are you able to utilize that at the parent level for royalty and onshore transactions? Or does that get too messy from a structure perspective?

No, we're able to use both for whatever purpose we see in front of us. It doesn't matter if it's royalties or streams. Just a question of how you move the funds between companies, but it's open. There's no restrictions.

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

Congratulations on all the records. Could you explain the accounting of the interest income that shows up in the revenue line versus the finance income that's below operating income next to finance expense and why both numbers were smaller this quarter than the prior period?

Sure. So John, this quarter at the top line revenue interest income was 0 compared to having an amount last year. that interest relates to any loans that we make. So we had provided financing to G Mining, to EMX and we were recording revenue or interest income associated with those loans. Those loans were repaid in Q4 of 2025.

And so now we have no loans outstanding per se. But the interest income line that's below down at the bottom of the income statement is your typical interest that you earn on your cash in your bank accounts. And as you know, we deployed a significant amount of cash last year. So with that lower cash balance, the corresponding interest income was lower.

There are no further questions over the phone lines. I'll now turn the Q&A session over to Bonavie Tek, who will take questions from the webcast.

Thank you, Vincent. There are no questions from the webcast either. So this concludes our Q1 2026 results conference call and webcast. We expect to release our Q2 results on August 12 after market close, and we will have a conference call the following morning. Thank you for your interest in Franco-Nevada.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

Good afternoon, ladies and gentlemen. I'd like to welcome you to the 2026 Annual and Special Meeting of the Shareholders of Franco-Nevada Corporation. My name is David Harquail, and as Chair of the Board of Directors, I'm going to chair the formal portion of this meeting.

This is my 19th year presiding over Franco-Nevada Corporation meetings, 13 as CEO and 6 as your chair. And then during this meeting, I'm going to be stepping down as Chair and as a Director.

So this agenda right here is to complete the formal business of the AGM first, and then I'm going to turn it over to Tom Albanese, our new Chairman coming in. I hope you get lapped it, find out shortly.

And he'll provide a few remarks, introduce our CEO, and then he will take your questions. We're not planning to do the usual thank you speeches that an outgoing Chairman hopefully gets. Instead during this meeting, instead of doing it here, you're all invited for a better party over on the 68th floor First Canadian place, at the Bank of Montreal building.

And there, we're going to provide you drinks. We're going to provide you orders and I think that's going to be more convivial. You actually laugh at my jokes when I do my presentations and remarks. It's also going to be an opportunity for you to talk to me individually or the executive and management team that they're all going to be attending as well.

Before we start the formal motions, I'd like to make some introductions. At the head table, Paul Brink, our CEO, President and Director; Sandip Rana, our Chief Financial Officer; and Lloyd Hong, our Chief Legal Officer and also our Corporate Secretary. All of our directors are present in this afternoon in person, and I'd like to introduce our directors and that they say their names, they briefly stand and face the camera and then face the audience and then they can sit down.

So we'll do them in turn. And just to show there's no favors, we're doing them in alphabetical order. So Tom Albanese, Hugo Dryland, Derek Evans, Dr. Catharine Farrow. Maureen Jensen, Jennifer Maki, Daniel Malchuk and Mr. Jacques Perron. Also here today is almost our entire management team from Canada, the U.S., Australia and Barbados. That's how we fill in our audience here.

So welcome. I would ask Lloyd Hong to act as Secretary of the meeting and Anup Das and David Martin as representatives of Computershare to act as scrutineers. The scrutineers will report on the number of shares represented at this meeting or by proxy.

Proof of service has been provided calling this meeting and has been filed. I direct that a copy of the notice and affidavit proving service thereby be annexed to the minutes of this meeting. I have been advised there is a quorum and request that the scrutineer's report be annexed to the minutes of this meeting.

I therefore declare that this meeting is regularly called and properly constituted for the transaction of business. And I now ask our Chief Legal Officer, Mr. Hong or Lloyd, to provide the details on the logistics for this meeting.

Thank you, Mr. Chairman. This will be a hybrid meeting, allowing both in-person and virtual participation. If you are on the webcast, detailed instructions are displayed on how to vote, ask questions and get technical assistance, if necessary. If you're on the phone line, please note that you cannot vote. I would now ask Lumi to open the polls for voting on all of the matters of business for this meeting and keep the polls open until after all of the items have been presented and the Chairman has asked for the polls to be closed.

As the polls are all open, you are now able to cast your vote on all items of business until the Chairman closes the polls at the end of the meeting. You do not need to wait for each specific item of business to vote and are free to vote at any time. Please ensure you have voted on each item of business by the Say-on-Pay advisory resolution as the polls will be closed afterwards.

Moving on to questions. For those here in person who have any questions on the items of business, please raise your hand at the appropriate time and a microphone will be brought to you. If you're participating on the webcast and have any questions on the items of business, please type your question or comment in the messaging section of the Lumi platform, and I will read the question aloud.

We will take applicable questions after each item of business. If your questions are more general in nature, we would ask that you please wait until the formal business of the meeting has been concluded as we will have a Q&A session afterwards. After all of the matters of business have been presented and the voting has been closed, Computershare will tabulate the results, and the Chairman will report them to the meeting. Mr. Chairman, back to you.

All right, thank you. I think your script is longer than mine. So the first matter of business is to confirm receipt of the financial statements in the auditor's report the consolidated financial statements of the company and its subsidiaries for the year ended December 31, 2025.

And the reports of the directors and auditors thereon have been mailed to all shareholders who requested them together with the notice of this meeting. The financial statements are also available on our website, and you can request paper copies by phone or email.

The next matter of business is the election of directors. The nominees of management of the company were identified in the information circular mailed to each shareholder of the company. I introduced the directors earlier, and I had them stand.

Will someone please nominate the directors. 9 directors are required to be nominated.

Mr. Chairman, my name is Boris De Vries, and I'm a shareholder of the company. I nominate Tom Albanese, Paul Brink, Hugo Dryland, Derek Evans, Dr. Catharine Farrow, Maureen Jensen, Jennifer Maki, Daniel Malchuk and Jacques Perron, as directors of the company to hold office until the next Annual Meeting of Shareholders or until their successors are elected or appointed.

Thank you, Boris. Could I get a second here?

Mr. Chairman, I'm Nalinie Mahon. I'm a shareholder, and I second the nominations.

Thank you, Nalinie. Are there any questions from the floor? The webcast? I declare the nominations closed. The next matter of business is the appointment of the company's auditors. Will someone please move a resolution for the appointment of auditors and to authorize the directors to fix the remuneration of such auditors?

Mr. Chairman, my name is Matt Begeman, and I'm a shareholder of the company. I move that PricewaterhouseCoopers, LLP, chartered accountants, be appointed auditors of the company until the next annual meeting at such remuneration as may be fixed with the directors of the company, directors being hereby authorized to fix such remuneration.

Thank you, Matt. And could I get a seconder?

Mr. Chairman, my name is Eric Karrandjas, and I'm a shareholder of the company, and I second the motion.

Thank you, Eric. So the next resolution is a Say-on-Pay advisory resolution. Since the vote is advisory, it will not be binding on the Board. However, the Board will consider the outcome of the vote as part of its ongoing review of executive compensation matters. Please note that the polls will be closed immediately after this matter of business. Will someone please move a resolution for the Say-on-Pay advisory resolution?

Mr. Chairman, my name is Kevin McElligott, I'm a shareholder of the company. I move that on an advisory basis and not to diminish the role and responsibilities of the Board of Directors of the company the shareholders accept the approach to executive compensation as disclosed in the company's management information circular dated March 19, 2026.

Thank you, Kevin. And could I get a seconder?

Mr. Chairman, my name is Christian Thatcher, and I'm a shareholder of the company. I second the motion.

[Voting]

That was the final item of formal business for this meeting, and I declare the voting closed, and I would ask that the polls be closed. And do I need any pause here, Lloyd or -- Okay.

Are there any other items of business that any shareholder and attendants would like to raise? As you know, there will be a Q&A that follows this session.

Is there anything from the webcast? We've received the preliminary results and declare that each of the motions in the meeting has been carried by the votes cast, including the election of directors. I declare the persons nominated have been duly elected as directors of Franco-Nevada Corporation.

And the final results of the meeting will be reported on SEDAR by tomorrow. Congratulations, directors. And I can tell you all the numbers are in the high 90s. So it's good. Now the formal part of the meeting is concluded. And with the election of directors, Tom Albanese has been appointed the new Chair of Franco-Nevada.

So congratulations, Tom. And thank you, everybody. It's been an absolute pleasure to be part of the story for the past 19 years, and I look forward to seeing you at the reception that follows. And Paul will remind you on the details as we finish. And I now invite your new Chair of Franco-Nevada to the podium.

Thank you, David. And I've been at these AGMs since 2013. I am incredibly proud to be chairing this company. It's a great company. It's got roots that go long back. And actually, I have some stories about those roots that I want to spend a little bit of time on. It's the Board, the management team, the loyalty of the shareholders, the banks that have been working with us, the finance community in Toronto, the legal community in Toronto, one of the top, what I call, mining finance cities in the world.

It's a lot to be proud of here. My own roots go back with gold a long time. I was a college student up in Alaska. When I was doing my graduate studies, I started Alaska Cultutal mining. And in my early 20 [Technical Difficulty] was that for a while. All through my 20s, I was -- the savings that my wife and I were making, she was a geologist up there, we were putting into [indiscernible] and Maple Leafs. So now we're giving them to our granddaughters every Christmas as they get older.

And as a matter of fact, early in my career, I was working for a company called Derco, which ultimately became part of Rio Tinto, we were buying mineral assets from oil and gas companies. And one of the first ones was Occidental Minerals in 1983. And we had a bunch of royalties we were trying to figure out what to do with.

And we had this guy from Montreal that was coming down and want to buy them. And we couldn't figure out what he was doing with them, but we were happy to sell these royalties on to them. And that was my first opportunity to meet Pierre. This was -- I was -- I didn't have any gray hair there. He didn't have any gray hair. And it was just -- it was great to meet him, and that was an early evolution of the U.S. mining industry.

I kept up with Pierre over the years. I met David in that course of that period. And in '19 -- in the period that Newmont had the reins of Franco, I think that David, the leadership of David and Pierre brought it into Franco-Nevada Phase 2 since 2007. And David was the CEO for that and a very important growing part of the business, a huge growth in that period of time.

And then I think David recognizing it's always good to refresh and turn over and get ready the next generation. He stepped into the Chairman role and Paul capably stepped into the CEO role. And as a Board member, I saw that and I watched that with a lot of pride, a lot of pride in the organization and the team and in the Board.

And I'm really excited about the way ahead. I can't tell you what the price of gold is going to be in a year. I'm not going to be trying to pretend like Pierre that it was $10,000 or at that, time I remember David was saying, well, I don't know if I'd like to know what the world looks like at $10,000 gold.

So we have a good balanced view on the Board on what the world looks like, where the world is going and how do we invest for the benefit of the shareholder for that along the way. And for that, I thank you as shareholders. Thank you.

Thank you, Tom. Good afternoon, everybody. Please head the cautionary statements. I will make some forward-looking projections. At Franco-Nevada, we believe gold is a risk-off investment that investors buy gold as a hedge against market volatility. So our objective in creating our business is to provide a low-risk way to invest in the space, expose investors to the exploration optionality of the mining industry, combine that with a strong balance sheet, a progressive dividend, and that strategy has worked tremendously well.

Over the 18 years that we've been public, by any measure, we've grown the business 12 to 14x, 12x on revenues, 14x on EBITDA cash flow, 12x on earnings. We have been the leading player amongst our peers over that period in terms of growth. More importantly, we've done it profitably. If you look at the return on investment that we generate, -- it is -- we are the leader of the pack. The numbers I'm showing there are the return on assets the last 5 years.

With the run-up we've had in gold prices, those numbers are quite stunning, looking like 20% return on assets for the next couple of years. That profitable growth has led into industry-leading returns. The CAGR on our share price over the 18 years, this is very simple, is 18%. You can see that as ahead of any of the indexes, the NASDAQ, the S&P 500, which is roughly 12%. Interesting, gold bullion itself is 9%. So our returns have been double what you could have achieved just by holding bullion itself.

And those returns are well ahead of the gold industry itself. In terms of the dividend, we've increased the dividend every single year, 19 consecutive increases. Dividend yield today getting close to 12% in U.S. dollar terms. If you bought the stock at IPO, almost 16% in Canadian dollar terms.

The CAGR on the dividend is 13% per annum over that period. So what does the growth outlook look like? What we show is our guidance for 2026, the outlook through to 2030, both with and without Cobre Panamá. We're very hopeful that Cobre Panamá will come back online in that period. Assuming that is the case, we'll have 40% to 50% growth in our portfolio over the next 5 years.

If you look at the last chart, we put on top of that the long-term options that we've got in our portfolio. We detail them here. We've got a very deep portfolio, a lot of large options that could be very meaningful. In total, they could add 220,000 GEOs of annual production. They won't all produce at the same time, but that's the total potential. They have over 6 million ounces of M&I, another 2 million of inferred.

These assets have all the firepower that we need so that beyond our 5-year growth, we can at a very minimum, sustain that growth for the next decade or so or if the timing works out, even grow it above those levels, just what we have in-house in the company today.

What is the value of all of that? And this is probably the simplest way to look at it. If we just take the total gold inventory that we have, both M&I resources plus inferred resources, that is 100% attributable to us. So where it's a stream and we have ongoing payments, we're netting that off to, say, ounces that are 100% attributable.

And if you value that at today's gold price, it's $124 billion of value that underlies our company. Compare that with our market cap or our enterprise value today, it's $44 billion. So the underlying value of those ounces that we can see today is almost 3x the value of what our company is today. But that's not all.

That is just the ounces we can see. And as we know in our business, the reason that we invest in royalties is because the beauty of mining is we can't see under the ground when we're mining a mine. It's only when we have mined out that full ore body that we reveal the full extent of that ore body. And I'm going to tell just one story to illustrate that of the -- why our business has worked so well. And the story is Detour. This is a deal that David had done. It's going back now to the early 2000s. Placer built the Detour mine. It was an underground mine, ran for about a decade. It wasn't a great success. They shut it down. A number of years later, they decided to sell the property. It wasn't worth very much.

David did a deal with a small junior company called Pelangio, who acquired the property for $2 million. Pelangio didn't have the $2 million. So David provided the $2 million. The deal was 50-50 JV. Pelangio had 50%, Franco had 50%. Pelangio was able to buy back the 50% JV if they paid back the $2 million, and Franco was left with a 2% royalty. They were able to do that. They paid back the $2 million. Franco had a 2% royalty.

Nothing happened on the property for a decade. It just sat there. Until Gerald Panneton came along. Gerald had a vision that this could be a big open pit. He ran the drill program. He drilled up 20 million ounces on the Detour property, raised the capital to build that mine, Detour Gold built the mine. The plan was to produce 600,000, 650,000 ounces a year. It was a super success. I couldn't imagine that it could get any better.

That was 7 years ago. Tony Makuch at Kirkland Lake saw the potential in Detour, acquired the company, he drilled the property. That 20 million ounces became 30 million ounces. Agnico Eagle saw the potential in Detour. They acquired Kirkland Lake. They drove the property.

Today, the inventory at Detour is roughly 43 million ounces. Agnico has a plan where they're going to take production on that asset to go to 1 million, maybe more ounces per year of production. If you take the resource and our 2% royalty on that and gold prices today, there's $3 billion to $4 billion of value that will accrue to us from the Detour royalty.

These are the sort of assets that make our business so successful. These are the sort of deals that David has done that has made our business so successful. That is one of our greatest success stories. I'll add along with Goldstrike, which is the earlier success story that we used to tell. And there are a few of them in the portfolio that are not just 100 baggers, they're more than 100 baggers.

But you ask yourself, what in aggregate does the portfolio do, and this is the best example that we have. If we take when we did the IPO, all the assets that we acquired, the total reserves on the asset, just those assets at the time, it was 34 million ounces. If you take what's been produced since then and what their reserves are today, there's 3.6x as much gold as there was 18 years ago.

So that's the power of the optionality, how those ounces can grow over time. So I'm going to go back. Remember a couple of slides ago, I said the ounces that you can see today, the total value of that, $126 billion. Go forward 18 years, if history repeats itself, and we end up with 3.6x as much, that would be $440 billion.

Now conveniently or coincidentally, that's 10x what the enterprise value of our company is today. So we've had a fantastic past and the future at Franco is looking tremendously bright. With that, I would like to take any questions.

As a reminder, for those here in person, please raise your hand and a microphone will be brought to you. If you're participating on the webcast, please type in your questions or comments in the messaging section of the Lumi platform and Lloyd will read the question aloud. Are there any questions from the floor? I see a question there.

I'm [ Paul Durnan ] from Burlington. Had a commitment to see bold last year or the year before, and I see it's not in the book this year. And -- is there some explanation on that? I always felt it was kind of difficult to think of a gold company that was around for 20 years and never produced any gold. Anyway?

Well, Seabridge has some very large assets in them, the largest being KSM. That's not the asset that we have a royalty on. We have a royalty on a property that is up north, called Courageous Lake, also a very big property, probably 10 million ounces in resource, 11 million, you say. They have just spun that asset out into its own independent company. I don't exactly recall the name of the company, but I suspect it is in our book. It's just that the company name will be different.

Okay. All right, I got another question. Okay, the Ring of Fire, you have a commitment there. And obviously, in the popular business media, there is some question marks about it. How do you build a railway and a road on a swamp things like that. And it will be a huge investment to bring it to finish, and it will be a long way off. And the question of government funding has been kicked around federal and provincial.

Can you give your take on it, how will you play out in it? How is it going right now? What's your outlook?

Sure. It's almost like we planted that question. Ring of Fire is one of the bigger options that is in our portfolio. And for those of you who are not familiar, it is up in Northern Ontario. It's a huge area. Saw an exploration boom probably 15 years ago in a very short amount of time, huge discoveries were made, the biggest being chromite, but also nickel, copper, gold. It's tremendously prospective.

But as you point out, it's a very difficult region to get access to. Really for any activity to take place, you need either a railway or a road. The current owner of that property is Wyloo Resources. They've been working with the First Nations. They've been working with the provincial and the federal governments to advance that. The First Nations are actually the proponents to have the road built, and that is the preferred access.

The environmental applications are in on the road. They should be approved in the next year or so. But in fact, construction has already begun on the road. So the section of the roads that sit on First Nations title land, they've already begun construction. There is a session that's been hosted by Minister Rickford.

It's in the next week or 2. I think it is at the Canadian club. The title of the session is the Ring of Fire, no longer a question of if, just when. So you'll be able to find out more on the Ring of Fire. But the bottom line is it is going ahead.

The Ring of Fire in the recent Ontario provincial bill was declared a special development zone, which streamlines what permits are required for the construction of the mine on that property. So I think the title of that session is accurate. I think the ring of fire, it is not a question of if, just when.

And the time line that has been outlined by Wyloo and the provincial government is probably the early 2030s for first production to come from the first mine to be built, which would be the Eagle Nickel mine.

Thank you. Mr. Brink, I think we were all inspired by your story of Detour Gold. What other underappreciated assets might you have in your portfolio?

I'm going to hand that question to Sandy.

Sure. Good afternoon, everyone. Obviously, I could go on for quite a while. I think there's a lot of assets that are underappreciated in our portfolio. But I would say, first of all, it's just the depth of the portfolio. We have the largest royalty streaming portfolio in the industry, 441 assets, 121 producing, 44 advanced, 276 exploration assets. But what's really important there is the amount of land we actually cover. So we covered 72,000 square kilometers or 17.8 million acres of land.

Now to put it in perspective, that is bigger than the country of Ireland. So if the land that Franco actually covers with our royalties and streams was an independent country, we would be the 118th largest country in the world. So that is how much land optionality we provide our shareholders. And what's happening on these lands is the amount of exploration drilling.

So just from a conservative estimate, we figure there's about $600 million of drilling happening in 2026 on our land. And that's 2.5 million meters of drilling. Now what I'm pretty comfortable with is that -- some of that drilling will be successful. You will get resources found, new deposits found and our assets will either get longer mine lives, which will increase our NAV and thus our share price.

So I think that is what is truly underappreciated. But in terms of specific assets, Paul obviously talked about the Ring of Fire, which we don't think we get the full appreciation of. The other one is New Prosperity. It's a stream that we entered into with a company called Taseko Mines back in 2010. It's a copper gold system in British Columbia.

It didn't receive its federal permit. It did get its provincial permits. But unfortunately, as I said, it didn't get its federal. And it kind of just sat on the bench for a while. But middle of last year, a deal was reached between the First Nations, Taseko Mines, who is the owner and the British Columbia government to work out a structure where the First Nations gets 22.5% interest in the property.

So now you have, I would say, an objective that's aligned amongst all three parties. Obviously, it's still early to see where it goes, but we're very encouraged that everybody seems to be on the same page. And if that asset is actually developed, our commitment is $350 million. For 22% of the gold. And so based on the mine plan that we had at the time, it was 300,000 ounces of gold a year. That's 66,000 ounces of gold to Franco under the Stream agreement.

So at today's gold price, you can obviously understand how valuable that is. An NAV on that today would be $1.5 billion north of that for a $350 million investment. And I'm pretty sure the value that's reflected in our share price for that asset is very minimal right now.

So again, a huge option in the portfolio, along with the Ring of Fire, but more so is just the land package that Franco actually covers and the number of assets. So as I said, I could name more, but those are the two largest ones for us.

We had another question from the floor. Here you go, Christina.

What is your appetite for doing more energy deals?

We've got a good appetite for doing more energy deals. And the reason is they worked extremely well for us. Our strategy is our #1 commodity is gold, and we'll invest in it whenever we can. But gold, like every other commodity is cyclical and there are times when either not good deals or it's too expensive. And we've always said, give us the latitude to look around, invest in some other commodities where we can get that same resource optionality, be more opportunistic in our entry points.

Oil has worked extremely well. We've got some good entry points. And now as a point of time, here we are oil prices, we're trading around $60 a barrel. You have the sort of conflict, the sort of volatility in the markets that we all worry about. Oil has spiked. And so we will really are uniquely positioned in the mining industry and that we get a double benefit.

So much of the mining industry over time is plagued by operating cost inflation. The biggest component of that are energy prices. When you have higher prices like you have now, we not only are largely not exposed to that cost inflation, we have the double benefit that 6% to 10% of our portfolio is made up of oil, and we'll get that benefit. So we very much like that model, and we're open to, at the right time, adding more energy to the portfolio.

I don't see any further questions. Lloyd, any questions on the webcast?

Nothing from the webcast.

Before we close the meeting, a reminder that we'll be releasing our Q1 results later day and a press release should cross the wire early this evening. We hope we were able to join us for our Q1 conference call, which is scheduled for 8 a.m. Toronto Time tomorrow morning.

Thank you for your support of Franco-Nevada, and have a good evening. We hope you'll all join us over the road, First Canadian Place, 68th floor to celebrate David.

Good afternoon, and welcome to Franco-Nevada's Investor Day. Thank you for attending this presentation in person, and welcome to those joining us online. My name is Candida Hayden, and I am the Senior Analyst, Investor Relations at Franco-Nevada. The presentations today are planned to take 2 hours. Questions will be taken in person and via the webcast at the end of the presentation. A reminder to kindly mute your devices for the session.

Please note that some of today's commentary contains forward-looking information, kindly see our cautionary statement on Slide 2 and other cautionary statements contained in this presentation.

I would now like to welcome Paul Brink, President and CEO of Franco-Nevada to the podium.

Thank you, Candida, and welcome, everybody. Thank you for those of you attending in person, and welcome to all the folks who are on the webcast as well. I'm going to start off today to speak about the objectives in our business, our approach to our business and our portfolio. Next up will be Eaun Gray, our CIO, who will speak about our business development strategy. And then by popular demand, we have a number of our partners who will be speaking. So a very special welcome to Richard Young from IAT, [indiscernible] Downey, from [indiscernible]; Mark Hooding from Discovery, who are here in person and will be presenting. And then also, we have online Ryan King from Equinox, who will be presenting online, and we'll also have Metals 260, who we're piping in from Australia. We appreciate them staying up late at night.

Two core things about our business. And the first is we believe gold should be a risk of investment. And so in designing our business, if we can design a low-risk business, we feel we'll have the greatest appeal to investors. The second is the incredible value that is created if you can expose yourselves to resource optionality. The first part of that is most predictable thing in mining is as the industry mines deeper every year, at the end of the year, they expose more ore in their ore bodies, and we can participate in that. But even better than that, ever once in a while, an exploration program or somebody mines deeper, you find an ore body that is multiple times bigger than what you ever imagined.

That approach has worked terrifically well for us. Over the last 18 years, the CAGR on our stock is around 19%. We've outperformed all of our peers. We've outperformed all of the relevant benchmarks. We've outperformed bullion itself. Interestingly, bullion has returned about 9% over that period. So we've been able to double the return that you could get investing in bullion alone. It starts with the portfolio and our portfolio was built up over much more than 18 years. It's actually been more than 40 years in the making, building up this portfolio, both in the old Franco and in the new Franco. It's given us the broadest, most diversified portfolio in the industry. We've also been tremendously lucky. We've been exposed to some of the greatest successes in the industry, and that's allowed us to generate some of the highest returns of capital. And if you look on the average the last 5 years, that's a 12% return on invested capital. Those investment returns have driven our share price. And it's that share price appreciation that's allowed us to produce industry-leading returns.

Looking forward, we've set up robust growth going forward in the business. We have no debt. We've got more than $3 billion of available capital, that's the fuel that allow us to drive the next leg of growth in Franco-Nevada. In the royalty and streaming place, there are a number of players that are in the game. We think we're different, and we think mostly because we play the game differently, and what I mean by that. The first is our approach to growing the business and where it starts with is ownership. The first thing we think is to be aligned with your shareholders, you want to own the stock, it really changes the way that you think about the business because you're not thinking about growth for the sake of growth, you're thinking that every deal that you do, you've got to increase cash flow per share, you've got to increase NAV per share. You've got to make sure that when we do a deal, we get the share price up. Second is financial flexibility, and it's a discussion we're often having with companies that we're dealing with, but we believe it honestly ourselves. We think financial flexibility is more important than cost of capital. And what that means is having the capital available when you need it most. And the way we run our business is to make sure that through the cycle, we always have a lot of capital available so that we can deploy capital when the industry needs it the most.

Next is being adaptable. We don't just think of ourselves as a royalty and stream financier. We think of ourselves as capital providers to the industry and it's to an industry that is highly capital intensive. So our thought is if we can find the right assets, we can find the strong teams to back and we can be flexible in how we provide capital to those teams. We can create a lot of success, both for them and for ourselves. Next up is a focus on optionality, and that's the incredible value that can be created through the drill bit in the industry. It's imbued in our DNA at Franco-Nevada because of the successes that our company has had over time to make sure that every deal that we do, the one core tenet is we expose ourselves to that potential resource optionality. And the last thing there differently in terms of how we think about this business is, we understand cyclicality, and that is gold and all commodities at the end of the day and the bullion in their bare markets. You have to be able to decide when do you want to spend a lot of capital when you want to pull back. You've got to decide when is the right time to let organic growth lead when you want your growth to be through acquisitions. When you need to make the calls in terms of -- is this the time to put a lot of money in gold or are there other commodities where you can actually get better value in these markets? And also, it's thinking about how to use your balance sheet. What is the right time to take down debt so that you can maximize returns without taking on the risk of carrying financial leverage potentially into a downturn.

In terms of our sustainability focus. There are six core pillars that responsible capital allocation is making sure when we are financing companies that we're financing teams that design their minds to have minimum impact on the environment, but there are net benefits for the communities. We contribute ourselves, get involved with the operators' programs that they feel will benefit their communities, they will build social license at their operations. We work with them and support financially those operations. Already mentioned in terms of good governance, the #1 thing we believe is shareholder alignment. That comes through share ownership. Climate action is always on the agenda. When we're looking at investments, part of our due diligence, part of our evaluation is making sure that these are operators that are at least in the best half of their space, so that any investment we're making is making the world a better place in terms of climate performance. We're a tiny organization ourselves, but we also look at ourselves and say, every year, how can we improve just to show that we're doing what we can to contribute to that effort. We want to be a good employer. We want to create good jobs for our employees. We want to create great careers for our employees. We're very proud of the diversity that we've been able to attract to our business by being inclusive. And overall, in terms of our approach on sustainability, number 1 is we want to be pragmatic. We want to be genuine in everything that we do. We want to make sure that the efforts that we make are effective. And we also want to be open about it and transparent. So that all of that is clear.

We're tremendously proud that, that's been recognized by the rating agencies. We are premially top rated by Sustainalytics. An achievement this year is Corporate Knights. And previously, we've been in the top 50 more sustainable Canadian companies. This year, we were also included in the top 100 sustainable companies globally. And most recently, we were just upgraded by MSCI. We were AA rated by MSCI. We are now AAA rated by MSCI. So while the United States is no longer AAA rated, I can say honestly, Franco-Nevada is AAA rated. What I think is most unique about our portfolio, it's not just its breadth, but it's the combination of royalties on gold mines and streams, principally on copper mines that I think makes it so attractive, and I'll speak a bit to each. We all know typically in gold mines, gold mineralization is very hard to drill up. It seldom that an operator will drill up more than 10 years at a time. But it doesn't mean that, that's the full extent of the ore body. And the history of our company has shown from time to time as you drill deeper, you can evolve -- reveal ore bodies that are multiple times bigger. In the old Franco, the two winners were Goldstrike and Stillwater. Many hundreds of times the value of the investment is what you see the bad today. And when we show the value here, that is the cash we've received so far and then the analyst consensus NAV going forward. In a way, it's a bit of a conservative way to do this if I just took the total expected cash that we generate, the numbers would be far higher here.

In the new Franco, we've had a couple of those two, Detour Lake, Tasiast Duketon down in Australia, all of those up to 100x our investment that we're making. Even more recently, an investment we made a couple of years back now, 6 million on Greenstone Mine's only been operating 2 years the value of that investment today is more than $300 million. That's 50x the value that we paid for making that investment. For the streams, it's a different calculus. Most of our precious metal streams are in big cotton mines; cotton mines, we all know geologically, they just tend to be much bigger in damage. It's also much more massive mineralization, much easier to draw up 30 years of reserves at the outset. So when we invest in a stream on a copper mine, the -- it's not likely that you're going to get 100x your money. But that doesn't mean they don't get a whole lot better and still generate great returns over time. The -- I'd say that the -- what we found with investing in ore bodies over time is -- the bigger the mineral endowment to start with, the more likely it is that you'll find more ore around that mineral endowment. If the conditions were there to create in mineralization, they inevitably is more. So most predictably, these are the assets that do get better? To put it in perspective what that can be, when we did the Candelaria deal, it was 12 years ago now. We financed Lundin Mining, buying that asset out of Freeport. At the time, the mine life on Candelaria, the Go-forward Mine life was 14 years. It's 12 years later. The mine like -- the go-forward mine life today goes out 20 years. So that 14 years has become 32 years at Candelaria. Those are the sort of returns you can get on these big stream assets. [indiscernible], a very similar story. John will actually speak to it later, and the potential expansion there through the CorcoWaco deposit.

Putting all of that together, I've given you some good examples for the portfolio. But if you take the portfolio as a whole and you look at the returns of capital, and I have to thank the Scotia team here, these are their numbers that I'm presenting. The return on invested capital for Franco, the last 5 years, leading the back 12% return on invested capital. If you look at what that is projected to achieve with the run in the gold price is '26, '27, that's looking at over 20% return on capital that we're generating in the business.

I'll turn now to our growth outlook. What we show on the stream is what we achieved in 2025, and what the outlook is in 2030. The growth that we already know is taking place in the portfolio is in the order of 12%, 13% growth from those assets. The big potential is obviously Cobre Panama. If Cobre Panama is operating at full strength again within the next 5 years, I think there's a very good likelihood it is, that would boost our growth would be in the order of 45% growth over the next 5 years. I think that is very achievable. In the last column that we show there, we put on top of that long-term options. And these are assets we don't expect them to produce in the next 5 years. We're not certain on the timing of them, but they are what is going to drive and sustain us over the longer term. This is a breakdown of those assets that make up those long-term assets. In terms of potential annual contribution, if you put it all together, it's 222,000 geos. Now they're not all going to operate at the same time, but that is an indication of the annual contributions that they individually could make. We've also shown there what that is in terms of royalty ounces, and I'm going to speak a bit more about that -- in detail on that in a minute. But the main takeaway from this slide is we've got good growth, hopefully, with Cobre that 45% over the next 5 years. There's a lot of gas in the tank with these assets. I'm absolutely confident we can sustain that level for the following 5 years, if not grow it, with the assets that we've been able to add over the last couple of years.

I'll turn now to royalty answers. Every year, what our team does is we go through the reserves and resources of all the underlying assets that will be out in our asset handbook. And then we do a calculation of royalty ounces. It's a Franco-Nevada term. But what we're doing is taking the answers and say, if you convert them into an ounce, that is 100% attributable to us, so it's converting stream out as to be the equivalent of royalty ounces. So these ounces where 100% of the value will accrue to us over time. And what are those across the portfolio. Show here, reserves measured and indicated exclusive of reserves and also the inferred ounces. As you look at the changes year-over-year, there are a couple of moving parts. We did have a buyback on our Cascabel stream. So we lost some ounces as a result of that. Nonetheless, a very attractive buyback on good terms. So John will speak to you about it later on. Second impact that we had is, obviously, we've been active with acquisitions, biggest last one last year was Cote, so we added ounces through the acquisitions. Some changes due to commodity prices. We do have some NPIs. Obviously, with the gold price being that much higher year-on-year, the NPIs convert into more ounces because we're assuming a higher margin on them. On the flip side, for the diversified assets, on the iron ore, on copper, gold price is relatively higher. So we -- when you convert that slightly lower royalty ounces coming from those. What the underlying impact. The underlying driver, obviously, is what are the reserves and resources of the assets doing, there is good growth across the board reserves M&I and inferred, the underlying reserves and resources grew in each of those categories. What were the big contributors for reserves. It was Guadalupe, [indiscernible], Magino, Brucejack were the most notable in the resource categories, [ Etour, ] Malartic and an asset I've mentioned before, some of you may be familiar with it, regard, we'll speak a bit about it over in Serbia.

What I've also added on this slide, we don't have them officially in our royalty ounce calculations is Cobre Panama and New Prosperity. Obviously, those are potential. We want to have greater certainty on Cobre returning to production, new prosperity moving into production before we put those back into the ounce into the official ounces, but it is important potential that we have in our portfolio. Just a quick snapshot. Where are all those ounces. You'll see heavily weighted the biggest jurisdictions, all safe mining jurisdictions, Canada, United States, Chile, Peru are our biggest exposure in terms of where the ounces lie. This is just a summary chart to break that into categories, so that you can both see where is the annual contribution coming from plus where the royalty ounces are broken out by the assets that are in our 5-year outlook, potential for Cobre Panama, what the long-term assets could contribute to that. And then those totals that take you over 27 million ounces of inventory. And where we put at the bottom is that doesn't include the exploration potential. We have 230 other assets that are not included in that, and there will certainly be value from that portfolio over time. Just for fun, putting a value on all of that. If you take that total inventory, you've got 27.5 million ounces at today's gold prices, that's $126 billion of value in the portfolio. Contrast that with our enterprise value, $47.8 billion. So the underlying value there is 2.7x what our enterprise value is today.

Now that's undiscounted. Obviously, that value will accrue over time. We don't include our energy assets in doing this. The revenue we get from our energy largely offsets the taxes and the G&A that we have. So this is indicative of the ultimate undiscounted cash flow that will ultimately accrue to our shareholders. I put at the top of that, a little dash box exploration potential. Just as a reminder, this doesn't include that 260 exploration assets. It doesn't include the potential growth that we'll have from these assets, which predictively at year-end, we always do. So I'll speak a bit about that exploration potential. The broken out, first of all, by the amount of ground that we cover, we show that is spread Canada, Australia, the U.S., South America. In total, we cover 17.8 million acres. So I was trying to put that in perspective in my own mind, I was doing an AI search. I found the individual in the world who owns the most amount of land is Gena Reinhart in Australia. Gina has our beat. She has 22 million acres that she covers, but we're right up there with her.

In terms of exploration spend, we've identified on our properties more than $600 million of exploration dollars that will be spent this year. Now that's conservative. A lot of companies don't break out their spend by individual asset. So for sure, there will be more than that $600 million spent. In my own head, I was just doing some math to say, let's take an industry average finding cost $50 an ounce means probably you get 12 million ounces that will be discovered on land that we cover just this year that inevitably will add to our NAV over time.

I'm going to finish off. I've spoken broadly about some of the impacts, but more particularly just a couple of the assets to speak about that I really think exemplify the resource optionality of our portfolio. The first one here is Detour Lake. You'll all recall, if you go back 6 years ago, it was Detour Gold that Detour Lake, they had drilled it out, 20 million ounces was the resource. The mine plan at the time had it growing up to 650,000 ounces a year of production. Tony Makuch at Cotton Lake Gold at the time had acquired it. They drilled it. They took that 20 million ounces up to 30 million ounces of resource, expanded the mine to land. Agnico acquired Gokan Lake. They have continued to drill at the end of last year, the total resource in all categories, more than 43 million ounces. You've gone from 20 million ounces to 43 million ounces in just 6 years. The mine plan currently has them expanding production up to 1 million ounces a year. But that's not the end of the story yet. They have a big fleet of drills, still drilling at Detour Lake. They've extended the mineralization 2.4 kilometers to the west. I don't know they will be putting out a technical report this year that they say we'll look at expanded scenarios. I don't know if that's a bigger underground don't know if it is a super pit. But some of the speculation on the street you hear is that you could see 1.2 million, 1.3 million ounces of production per year coming out of Detour, these assets just keep getting better.

Next asked to speak about Cote, and I think it is on a similar trajectory. Cote initially discovered 10 million ounces in the pit. They did the feasibility got permitting that while they were permitting. The discovery made was made on Goslin. Goslin is roughly another 10 million ounces. The mill was originally scoped for just the 10 at Cote. So it's clearly undersized. I am Gold, Renault has said he will put out a technical report again later this year, looking at a bigger mill to optimize that operation. It's likely in the order of 50% bigger. Again, you can see they're contemplating a super pit. So I think about Cote, it's currently after Detour and [indiscernible], the third biggest ore body in Canada. Today, it's 20 million ounces. If Detour can go from 20 to 43 in 6 years, I'm wondering where is Cote going to be in 6 years' time.

So with that, I've finished all my comments. I'm going to hand the mic over to Eaun, who's going to speak to you about business development and our acquisition strategy. Eaun?

Thank you, Paul. It's my privilege today to speak to you about our growth strategy. But before that, I'd like to thank many of our partners who are here today because really, without them, none of this would be possible. So thank you all for joining us. Our growth strategy is anchored on two core tenets. The first is to provide our shareholders with exposure to among the best precious metals, royalties and streams. The second is to selectively add long-duration, high-quality royalties and streams in other commodities. And the way we execute on this strategy is by finding the upside but structuring our deals to mitigate the downside. Our recent deals illustrate that this can be a win-win strategy. By providing patient capital at a low cost, we allow our partners to unlock value for their shareholders. Where you'll hear us use a lot is optionality. That's for good reason because it's core to all of the deals that we do. But we actively look for this without giving away the farm. We have to stay disciplined in volatile commodity markets, and that's a core part of our strategy. Finding optionality really starts with deep due diligence. You have to understand what drives the upside of assets over time. And we've got an excellent track record defining just this, as Paul has outlined. Starting with Goldstrike, moving on to assets like Detour, Cote and many, many others.

In 2024 and 2025, we committed over $3 billion to new transactions. Given the due diligence that we've done and some of the fantastic drill results and other information that has been coming out of the market, I'm quite confident saying that I think we're just scratching the surface on a number of these wonderful new assets that we've added. In this environment, we expect resources to convert to reserves and continue to grow. The benefits of this approach have manifested a whole lot faster than I think many of us had expected with these higher gold prices. Two great examples would be Magino and Valentine. We have Richard here today is certainly familiar with 1 and Ryan will speak to Valentine as well a little bit later. But these demonstrate exactly what I mean. You've seen announcements of higher throughput rates, increased reserves and continuously improving mine plans over time, just absolutely wonderful. And to me, it demonstrates that when we harness the skills of our technical team that our shareholders benefit tremendously. When our team and our Board have conviction on an asset and we can mitigate downside that's when we act. In fact, we think we're truly blessed by having such a strong team and board. These are industry veterans that have seen cycles and projects succeed and fail. Often, we see deals where we're offered a small pricing concession in exchange for giving up upside. That's something generally we've learned over time is not a good trade. What we're looking for instead is that winning combination, assets with really good upside, but where we also have confidence that we can get our capital back using conservative parameters around mine plan and commodity price. So probably comes as no surprise to you that we spend a lot of time thinking about the commodity price setup when we make new investments. We want returns that are there across the cycle, not just for a snapshot in time. Then of course, there's a structure of any deal. Legal framework is key to managing risk. And so we take it very seriously when we write our contracts. I look at Lloyd when I say that.

Long tenure assets are a defining feature of our portfolio and diversification enhances that duration. Even more important though than security on paper, of course, are the fundamentals of the assets that we invest in, the margins, the license to operate. That's where we spend a lot of our time when we do due diligence. Good environmental and social practices aren't optional anymore. Their prerequisite to the success of any mine in the long term. Now the best contractual safeguard in many cases, is actually just getting as close to the asset as we possibly can. And this mitigates expropriation risk and insolvency risk in many cases. A good example would be Cobre Panama. We have undertakings down the chain and a counterparty located in Panama. This allows us our own arbitration rights, enhancing our leverage and protecting us while mitigating credit exposure. If we're only to rely on a parent guarantee, the likely outcome could just be waiting for a very long time to get your money back. We think our approach is better. And I think in light of recent events, you'll probably agree too.

More broadly, we view international arbitration as a key risk mitigant, especially for assets that are located in developing countries where many of the highest quality assets are, in fact, located these days. And finally, we're always refining our approach, looking at what worked, what didn't and looking to allocate capital more effectively going forward. So now as we look forward, I'm actually incredibly optimistic about our ability to continue to deploy capital successfully. Part of the reason that I'm so optimistic, if you look at the chart that I have on this slide, you'll see that many projects are advancing through new milestones. That's in light of improving gold prices and other commodities. When you see that, it naturally drives more project financing business, which is a core pillar of our growth going forward. We're very happy with IAD and Minerals 260 to have two very recent examples of just that.

Now also a very important lesson that I'll highlight with this slide, your partners matter a lot when you're investing. It's a lesson, I think, that it cannot be understated. A good asset on its own is not sufficient for success. So what have we done? We've looked to work with teams such as those you'll hear from today that have the capability to deliver. By backing these strong teams, we deploy capital more effectively. And this chart highlights what we mean. You see the step change in the amount of capital and the number of transactions done with our partners. Now probably the thing that brings the biggest smile to my face is this slide because as you can see, the shareholders of our partners have succeeded, and that is very key for us moving forward. We are able to effectively help our partners with patient capital to unlock value. Also key here is that many of these partners have vastly outperformed their peers, something they should all be very proud of. We look forward to hearing their stories a little later today.

Now shifting on to royalties and streams outside of precious metals. Everything that I've said already remains consistent here as well. We've always kept some of our powder dry to deploy capital into great endowments at good entry levels. This countercyclical approach supports a leading return on capital, as Paul highlighted, as well as share price appreciation. We see fantastic synergy with these investments, complementing our gold investments very well. We're going to stay opportunistic here, though. We're going to make sure that our precious metals revenue remains at at least 80% across the cycle. In fact, within this portfolio, we see great upside coming from copper growth in the near future with Taca Taka and Copper world. Franco-Nevada has had meaningful exposure to diversified commodity royalties really since inception. In environments, like we're currently in with cost pressures and energy market tightness, you really see the benefit of this. It's a winning combination.

This slide highlights exactly what we mean by countercyclical investing. You can see we deployed capital into the energy space during trough commodity prices. And we're reaping the [indiscernible] of that today. Now pivoting to another important slide. What I'd like to highlight is that across the commodity universe, low-risk, long-duration assets accrue premium multiples. We have some of the best energy basins in North America reflected in our portfolio and leading iron ore producing regions as well. When you look at many of these coveted asset classes, you see those features reflected in what we have in our portfolio.

Now shifting back for a moment to our most recent investments. As I noted, we have several guest speakers here today who will speak about their projects. This represents a cross-section of some of the key areas driving our growth. namely project finance and acquisition finance. Our first speaker here today is Patty Downey. Patty is going to speak to us in a moment about his plans and his team's plans for Quebec's Casa Berardi mine. I'm very excited to hear them. Patty, will you please join us.

Thanks, Eaun, and thanks to the Franco team for inviting us today. We're very excited to sort of unveil where we're going with Casa Berardi. We just acquired it on the 23rd of March. So it's really first sort of weeks of getting going. So we expect a lot of work in the next 12 to 18 months. We are a multi-asset company now. Thanks for the help of the Franco team. We have another operating mine in Burkina Faso, has been going since in 2021. We have a sort of a unique way of doing things in the sense that we actually manage all of our own growth, the execution, the build et cetera, is all by us. We're very proud to say that our 2 operations in Burkina have been built on time, on budget and very trying conditions. Just recently started up hard rock plant. It normally takes about four quarters to reach nameplate on a hard rock operation. We're at nameplate within 6 weeks. So it's a testament to how we do our business. And we look forward to doing the same at Casa. Casa is in Quebec, as you all probably know, we acquired it, as I said, in March 25th. Gold production last year was about 91,000 ounces. We expect similar this year, we will be privy to, but 9 months of that, obviously, reserves 1.2 million ounces and resources of 2.3. Reserves at Bombardier are 2.4 at $1,500 gold and 4.5 resources at $1,700 gold. So a lot of upside there as well.

So we got involved with the France team in September. We -- they knew about this asset. They talked about teams, which was a big part of them joining with us. Paul said they would love to work with us after a conversation that Eaun and I had, I have to say, I've never worked with Franco before. It was a pleasure working with them on this acquisition. It truly was. They really got stuck in with us on the due diligence. I did a lot of the hard lifting, went to site with us for 4 or 5 days, I believe. It was a lot of fun. We eventually after many months of negotiation, which included many sleepless nights. We closed the transaction in January, which included a $270 million upfront payment of cash and equity. Hecla [indiscernible] 9.9% shareholders, which is really a big part of their upside. And we look forward to sharing in the upside of this asset with us. Franco provided $100 million of cash, and we put in $60 million. We have deferred payments of $80 million, that's $30 million in 18 months and $50 million in 30 months. And that really was to allow us to invest back into the asset. We see a huge exploration upside here, and we really want to put that money back into the asset very quickly. And we have deferred payments of $241 million. There's two large pits here of a grade of about 2.7 grams per tonne, which quite had grade for open pit. They aren't permitted. And we worked in an agreement that we would only pay once we start producing. So it's $80 an ounce for the first 500,000 ounces, no matter what the price of gold and then $180 an ounce up to $240 million of payment. So if those pits don't get permitted, and we don't mind them as open pits, they obviously don't come into the acquisition price. And so clear path here to, we believe, to unlocking significant value.

I have to say on the site visit a big part of what we do and what we look at is the team. Are the team there? Are they going to be actively involved with it? What do they think of the asset? How do they look at the asset? Are they actively engaged looking forward to participating with us in the next phase of the journey. Because sometimes when you take over an asset, the team want out, they're fed up. They've been going through a sale process. They want to go. They're staying to get their bonus payment on the sale process. That was not the case here. Very, very engaged team Franco, their team got exactly that same feeling from what they really, really wanted to see the new growth on the asset. And that's very important. When you're coming into a new jurisdiction like Quebec, it's very important to have a group of people on the ground who are really actively driving your investment. It is in Quebec, it's north of Lazare. Some people say it's remote, it's actually not. If you drove from Val-d'Or to LaRonde despite the same drive, most of the team living in Lazare. Some of them live in Lean, others live in Val-d'Or, a very strong technical team. It's an established operation.

Paul talked about mineral and diamond, and that's what really grabbed me here. There's been 3.2 million ounces of production at this asset. There's over 1.7 million ounces in the open pits. There's another 900,000 ounces underground of inferred and measured -- sorry, mention indicated and proven and probable and another 600,000 of Inferred. That's over 6 million ounces of gold, down to an average depth of 700 meters. That's a lot of gold per vertical meter, and we think it's still very, very underexplored. When you've got that sort of mineral endowment in an orogenic system in the Abitibi, it's worth exploring.

The mill was built for 3,850 tonnes per day. It was built by Ancora was TVX, Gold, I guess. And it was built based on the mineral endowment per vertical meter. And there's the east and the west. We actually met the guy who was on the discovery team, and the discovery hole in the West was 33 meters of over a [ 9. ] So hopefully, we can drill some of those holes. But we see exactly the same here. Right now, they're only mining 1,000 tonnes a day from underground simply because they were really winding it down and 2,600 tonnes a day from the open pit. We see that changing back to 3,000 tonnes plus from underground. And if you take an example down the road, which is El Dorado's mine in Valdor, they're mining at around 1 million tonnes. This is a 1.4 million tonne per annum. It's a 6-gram per tonne ore body. This ore body was always a 7-plus gram per tonne ore body, and they're doing 180,000 ounces a year. And that's the sort of vision that we have for this asset. As I said, it was only discovered in the '80s. It's not like Timmins or Valdor, where you've got a lot of geology, a lot of rock out crop. You can see it, a lot of mines in the district. This is a large clay cover of around $30 million to $50 million [indiscernible]. So geophysics in the day would not find this. Inco actually were most of the north and discovered the Casa Berardi deposit. They got it up and running on the east only, and I'll show you that running at over 7 grams a tonne. Gold went to 260. They had a few other operational problems. And so they sold it to a company called Aurizon. I don't know if you remember that. Aurizon drilled the west only. The build a mine, stuck a shaft developed underground, were producing at 7.6 grams per tonne, doing about 150,000, 160,000 ounces a year. They were subject to a hostile takeover by Alamos and Hecla Caminis the white night. Hecla mined it fairly successfully for a number of years, but really what happened to Hecla was they had a 24-month strike at Lucky Friday, which curtail our cash flow. They then bought a company called Klondex for $100 million cash, plus a couple of hundred million of debt, lasted for 3 months and they had to shut it all down. So they did not focus on Casa Berardi. It became a non-wanted unloved asset they didn't put any capital into it. I'm not judging anybody here. That's just the way it went, focused on the open pits that they get mine, contract mining, so no capital. So you can see the underground started to go down in production and the open pit was what sustained it. We see it completely differently, as did the Franco team, thank God.

So it's wide open at depth. Literally, what you see here in the red is M&I around existing infrastructure. The blue is inferred. The gray is what's been mined, and you'll see why when I show you the next slide. Essentially, if you look at the cross-section of this ore body in 2013, when they were taken over by Hecla, it looks exactly the same. There's been no major exploration. There's been no underground development. Hecla focused on two open pits called the EMCP, which is now mined out and the AF-160, which is still operating. And we're looking to develop the WMCP pit and the Printer Poll pit. We see it completely differently. We're going to really go after the underground exploration. We're going to reopen the East mine and start exploring there again. We're going to -- right now, they're mining 1,000 tonnes a day only from underground at the shaft. They're not using the west ramp because they don't have the equipment. That has not been invested back in over the past number of years. We will reinvest back into that. We look at ramping up to 2,000 tonnes a day underground fairly quickly. We will have 7 rigs operating here very soon. We're going up to 9%, probably by the end of Q2. So a lot of drilling. We expect to drill approximately 100,000 meters a year for the next coming years. You'll also see some announcements on some new key team members coming on to help drive that. We will start exploring beneath the east ore body, again, which is a very high-grade system. It's narrower. It's about 10 meter wide to 12. The west is 20 to 60 meters wide. So a very, very significant ore body. And there's a large gap between the East and West that has not been explored for various reasons. Just recently, they've been testing that, we can start to see the results of it. And we see significant exploration right near surface at the gap. So really and truly a lot of exploration ahead of us. And again, it should be very, very rapidly ramped up. It is a high-grade mine. The magenta here is plus 15 grams. So you can see why it will develop very quickly, and you can see why Incobuelt a 3,700 tonnes a day or 1.4 million tonne per annum mill. The East is quite a planar ore body, very, very simple to follow, not complicated whatsoever. The west was more folded, [indiscernible], very wide, very high grade lots of tonnes per vertical meter. Again, no exploration below around 1,000 meters. And then in the principal a game like the East, quite high grade in various areas, again folded and then the linear structures that go down at depth. So again, wide open. The mustard color is plus 4 grams. So you can see this is quite a significant ore body. So the mineral around the high grade is still very good grade. And we will look to reestablish that high grade. You can see our neighbors like LaRonde down the road, 3.7 kilometers deep, Red Lake, 3.7 kilometers, Westwood over 2 kilometers, Macassa 2.25. The deepest hole being drilled here is 1.5 kilometers. The average depth of development of 700 meters. So there's a lot of exploration to happen here, and we're very, very excited about it. The other key thing, again, attracted both of us, our sales and Franco is very, very unusual to grab an ore body like this and have 37 kilometers of the belt.

This is in the Abitibi. We're an orogenic system you're anchored by an operating mine and you got 37 kilometers of the belt that has not been actively explored. LacGermane was actually discovered by Inco in the '80s. That's how much exploration has been done here. And it truly is down to the fact that it's got that 30 to 50 meters of thick clay. It's not easy exploration. You really have to go after it. I did the same in Sweden, where you had to go down through that sort of thick play you really look for gold grain, gold cans, glacial movement. You drill into the bedrock, you look for alteration really, the key to this will be alteration. We've seen some really interesting stuff underground recently, very excited about it. So we will have a separate, very focused regional exploration on this 37 kilometers of strike extent. The other key thing about being in Quebec, there's wonderful tax incentives to do this as an operating mine in the region. So that's also a big part of what our strategy would be. So we will get at that. We started already. We expect to announce some results of that. So that has been ongoing under our tenure for the past couple of weeks. Also in the portfolio, which we bought from Heckler Quebec assets is the advanced stage Heveasco, not been explored for 5 years, 1.9 million ounces of mineral inventory there some of it refractory, but we're in the Cadillac larger break there. Our neighbors are Agnico, Agnico, IAMGOLD and Eldorado. So we're in a great address. And we own a chunk of ground, and that's something that we will actively follow up on.

We have another asset up in the James Bay area nearby the Eleonore mine, and another one on the Duverne on the same break as I believe AMAX exploration is on, again, something we don't know a lot about right now. focus has been Casa Berardi. But we will bring a lot of folks to that in the coming months and years as we get ourselves well established in this region. So we have 3,500 hectares of -- sorry, I think it's 7,000 hectors property in the region. So we're quite well endowed in an area that is undergoing a lot of focus on exploration. We have actually established a lot of good relationships right away. There are obviously -- First Nation for us. Community is a huge part of our DNA. In indi at Bombore, we've relocated 3,700 people into new communities, belt churches, most hospitals community centers. We've established local businesses that are all running on their own now. So we will look to establish something similar with the first nascence groups there. We have impact benefits agreement, but we really want to ensure that they know who we are, and what we're going to do going forward. And the same with the local government authorities as well as we look to expand and develop some of these ore bodies.

So right away, we went from 110,000 ounces last year. We'll be looking at around 230,000, 240,000 this year. Clear line of sight to 350,000. So we will become a mid-tier very quickly. We expect casa to be a major part of that going forward. We have an expansion plan at Bombore. We have a lot of drilling going on at both assets right now. We expect to provide a lot of results hopefully, some very exciting results from CASA going forward and a new development plan that we will lay out probably in Q3, Q4, where we'll look to lay out our vision for the project we're going to be doing over the coming years, where we see production coming from and where we see growth come from at that asset. So I look forward to that. And as I said, adding to the team as we move forward into the next stage of our growth.

Before I sign off, it was sort of amazing to me that Franco controls was a 17 million acres with such growth, and I'm thinking, wow, come from an 8-acre farm in Ireland, but it's still produced a better growth. So it's a marvelous story to listen. I've never really, really truly listened to the Franco's. I'm really happy to have you as partners and looking forward to doing you pride and doing our shareholders proud in the coming years. Thank you very much.

Thank you, Patty? When the team was working through this deal, we got comfortable on our base case assumptions and then we're thinking about the upside case. And so I said to the team, like do you really think that Patty can find the few million ounces that he's pointing to there in his exploration program. And they said, "Well, lucky Irish." So we said, all right, we're good, deals done. Thank you, Patty.

[indiscernible]

Next up at the podium. Please welcome Richard Young gold.

Well, thank you, Paul. And before I get started, I'd like to make a comment about Patty, I've known them for quite a while. We worked in West after together, and he delivered on everything. He said he was going to do almost a decade ago. So congratulations. So in turning to I-80, we've got forward-looking statements that I think everybody is accustomed to. So we got our name I-80 because we're located just along Interstate 80 in Northern Nevada, where some of the biggest gold mines have discovered. We have four past producing gold mines that were owned by Barrick and Newmont. We're able to acquire those as those companies continue to acquire and they were looking to rationalize assets, and we've been very successful with the drill bit. So we've got 1 of the largest resource portfolios in the state behind Nevada Gold Mines, Barrick and Anglo. All these deposits have been mined. And so we know the neurology and the geology, and I joined 18 months ago. We strengthened the team to execute on this plan. We've refreshed the Board so that we've got a Board that can assist us as we move forward. So we currently produce about 50,000 ounces per year. We laid out 18 months ago just after I started a 3-phase development plan to grow that to over 600,000 ounces per year. and we're well on our way to achieving that. And with Franco's help, and I can't -- this is my fifth company I've worked with Frank on, they provide what you'd call long-term foundational capital that allows us to bring the other partners in because they know the work that Franco does in arriving at their investment decisions.

So we've got 6.5 million ounces of measured and indicated gold 7.5 million ounces of inferred. We've got another 200 million ounces of silver so on a gold equivalent basis, we have about 16.5 million ounces of gold in Nevada. So the blue bars are what we're converting to Gold Bar. So we're converting in '25 and '26. And really over that 2-year period, we'll spend over $100 million on those infill and step-out drill programs we convert the blue bars, the gold bars, and we'll be reporting reserves beginning this year through the next 12 months. So the 3 underground mines average grade about 8.5 grams good, high-grade underground that are going to grow. We've got 2 of the 3 open pit deposits, Grant Creek open pit and Mineral Point both oxide in the current development plan. LoanTree will come in a little later on. So we put out 5 PAs for 5 of these 6 gold deposits back a year ago, and it showed production rising to 800,000 ounces. Now ultimately, as we work through it, we won't hit 8, it will probably be between 6 and 7. But we've got a clear pathway to become a 600,000 ounce plus producer, essentially through 2050.

Now that blue bar, we're about 3 -- about 4 million contained ounces short of delivering 600,000 ounces through roughly about 2050. Where will that come from? That will come from LoanTree. It's a 3 million-ounce resource that will ultimately bring into the mine plan. We're currently drilling with the benefit of Franco Nevada, Mineral Point, our flagship asset. We expect to add between 0.5 million and 1 million ounces to that. We expect, on a conservative basis to add a couple of million ounces to our 300 underground and then we've got some other open pits that we'll build into the plan. So we've got between 6 million and 7 million ounces of M&I that ultimately, we think will come into reserves to allow us to be a very solid, strong mid-tier gold producer for the foreseeable future. So again, a year ago, we put out the PEAs. None of us expect gold prices at these levels. So we put out the base case at 2175 goal. $1.6 billion at $3,000 gold. The NAV was -- with a 5% discount rate was $4.9 billion. We said at the time, we expected those were conservative and that as we complete the infill drill programs and step-out programs, we thought the numbers would grow. And we expect that to grow at current metal prices, that NAV would be about $10 million. And Today, with the recap on a fully diluted basis, we have a little bit over 1.2 billion shares outstanding, so roughly a $2 billion U.S. market cap.

So there's a lot of room to grow in a great jurisdiction. This can chart lays out the 3 stages of development and the work that is underway. We put that plan out 18 months ago and we're largely on track to deliver on that. A couple of caveats, we moved some of the technical work forward. at our committees, 1 of our 2 underground that's in Phase I as well as Mineral point, thanks to the investment by Franco Nevada. So we are aggressively pursuing this plan, and we believe that we'll be able to execute on it. In order to execute on it, we had to recap the balance sheet. We had about $2 million that was coming due when I first started in the fall of '24. We didn't have any credible plan to actually repay that debt. So we put that development plan out, and we've been able to raise over $1 billion with the capital coming from Franco-Nevada, that foundational capital that allowed us to bring National Bank in Macquarie on the senior bank side. And then we are able to complete a convertible debenture last month, led by BMO and National Bank. So we are fully funded through the 3 phases of development that we've laid out. Since I started in September of '24, we've been very active. We put out a new development plan that we've been executing on we put out those 5 PAs that allowed both Franco and the other investors in the STACK to come in. We strengthen the team. We've completed the technical work on the refurbishment of our autoclave. We're 1 of 2 companies in Nevada with a permitted autoclave. The other is Nevada Gold Mines. Hatch built that plant for Safe that was acquired by Newmont. They are currently doing the refurbishment. And we think that work will be done by Q4 of next year. We've completed the capital we've added Board depth, management depth to be able to execute on the plan.

As we move forward, we expect to have 5 technical reports on those 5 deposits over the next 12 to 18 months. and that will allow us to convert resources to reserves and really lay the foundation out for that growth plan that we've laid out before. We've got two fees coming out in Q2, and what we're seeing is that more than a 1:1 conversion of inferred into M&I. So the programs have gone very strong. We put out a press release in advance of pricing participating today on our third underground or committees with very good drill results. And again, we would expect more than a 1:1 conversion of inferred into M&I. We've begun the loan tree refurbishment. I'll talk a little bit about that shortly. That will be done late next year. Our committees is our second underground mine. We put the press release on those drill results earlier today. but that development program is ahead of schedule. So all things are moving forward very well. Maybe just spend a little bit of time talking about some of the optionality.

So Granite Creek is our current operation in production. We expect it to produce between 30,000 and 40,000 ounces this year. What we like about this asset is it's within 10 kilometers of Turquoise Ridge. Turquoise Ridge is a 30 million-ounce discover within Nevada Gold Mines. All of our senior team worked at Turquoise Ridge, our mining contractor continues to work at Turquoise Ridge, and everybody says it's in the same system. And so when you look at the ore body, the upper portion, which we've been mining looks like [indiscernible] from the '90s remember, [indiscernible] buying Getchell and that was a bit of a challenge, poor ground conditions narrow. But as you get deeper in the South Pacific zone, you see better ground conditions better grade and more latitude to be able to increase money rate. So this is the asset that our geologic team believe have the most upside. So that's the first asset in Phase I. Our committee is a second, $50 million to bring that into production. Things are proceeding well, and the answer rates are going above plan. We put out those early drill results that were better than expected. We think this is going to be a good solid asset. So between the two of them, we would expect roughly about 200,000 ounces of annual production through our autoclave that's being refurbished, a little over $400 million to refurbish that autoclave. Hatch is doing that work on our EPCM contract. They built the facility, they put you. They've spent about -- we spent about $15 million on the engineering work. We're very comfortable with the execution plan. And so we would expect to be commissioning September of next year and first gold by the end of next year. But the real care of it us is Mineral Point. In the tech report, that was 282,000 gold equivalent ounces over a 17-year mine life, 1,400 ASIC. We believe that deposit is going to get bigger. We are looking to move that project forward, part of the $250 million that Franco put in was earmarked for advancing expediting mineral point. So we're going to spend $50 million on infill drilling over 400,000 feet of drilling plus the engineering and early permitting work, and this is going to be our flagship asset.

So in summary, we've got four past producing properties. We expect to increase production from 50,000 ounces to over 600,000 ounces over the next 5 or 6 years. We are fully funded. Current fully diluted market cap is about $2 billion. And we think the NAV is at least 10, if not higher, as we complete these programs. So that's the IAD story, and sorry, I took more than 15 minutes. Thank you.

Thank you, Richard. When we set out on our partnership strategy, the key part of it was we said, how do we provide financing to teams where we can make them successful. If we make them and their shareholders successful, then we'll have other people that will come to us and say, "I want to do that." And we said, if we can do that, then we can legitimately continue to grow our business over time. But it gets even better when it's actually the same team that comes back and says, we want to do another deal with you. As Richard mentioned, it's the fifth company that Richard has been with where AE has been engaged with Franco-Nevada. It's been a fantastic partnership, Richard, I think this one is going to be the best one yet. Thank you.

Now we invite Mark Hooding going up to the stage. Mark is going to speak to Discovery Silver.

Thanks very much. Thanks, Paul. Pleasure to be here. And again, I apologize for Tony not being able to make it, but he is under the weather. So I'm happily filling in. It's a real honor. I can tell you, we very much value our partnership with Franco Nevada and getting the Porcupine acquisition completed early last year. The working relationship we had with them was extremely valuable, very much appreciated and as a partnership, I just think it gets better and better. I noted Patrick's comment about getting his deal done sleepless nights. And we had a few of those, and they went on for a while, like this deal took months to get done. It was a very complex deal. That's the reason for. And when we finished getting this done, and we announced the deal in January, we went to BMO. And Paul and his team were very kind to take the discovery team up for dinner around the time of the conference. And we were talking about the war stories of getting this thing done. And I believe Paul said something to the effect of getting this done is kind of like having a baby. And I remember that very clearly because my wife was standing right beside us and without skipping a beat, she said, no, it is not. No, sir, it is not. And I think that gave us all a little bit of perspective on that. But we did get it done, and it's just been a great relationship so far, and because of that, we can stand -- I can stand here today and say that we truly believe we've got one of the most compelling growth stories in the gold industry today. We already had and continue to have one of the most compelling and attractive development stories in the silver space with our Cordero project in Mexico. And I'll mention that the rest of my talk, I'll really focus on porcupine and what we're doing there. The other thing I noted in Paul's earlier comments was the number of times he mentioned expiration and exploration optionality. And I've worked with Tony, this is my fourth company now working with Tony and the success we've had, it all starts with the drill bit. And it has in every company we've been at. I was really interested to get a little update on Detour because that was probably one of the shining examples of where we got drilling really quickly. We had 10 million ounces of reserve in less than 2 years. And credit to AgEagle because they're leading that project to its full potential and it's just a terrific mine. So this year at Porcupine, we'll be drilling over 208,000 meters. We've got over 20 drill rigs turning now because the exploration potential in this over centurial gold camp is absolutely tremendous. And we'll be investing somewhere between $55 million and $75 million. We've already had a couple of press releases out that show the results are extremely favorable. And this is going to be a big part of the story.

We're going to ramp up production, but we're also going to have a steady stream of exploration releases out because we're getting good results virtually everywhere we're drilling. So -- we do -- I do have the forward-looking statement and other cautionary language in the deck. We've put it at the end because I know there have been a lot of cautionary slides. But I'll quickly go over to those at the end. But this really gets to what we expect to do. Last year, the porcupine assets produced 234,000 ounces, including the period before we own them. Based on work we are doing today, we expect to take that production to somewhere between 0.5 million and [ 3 quarters ] of million ounces of gold over the next 3 to 5 years. And I'll give you a sense of where that growth is going to come from.

Through Credera, I'll mention it quickly over the same, and I should mention this is about a 3- to 5-year time frame. Over that same period, we expect to develop Credera and bring that in, which would give us about 14 million ounces of silver and considerable over 200 million pounds of zinc a year. We're not just going to add ounces for the sake of adding ounces. We're going to drive down costs and we're investing today to do that. We plan to be in the lowest half of the cost curve for both gold and silver. And then you see credit [indiscernible] Minerals there. We recently announced the acquisition of Glencore's kid operations. And I'll give you a little bit of color. I mean that acquisition is going to do great things, we believe, for us for our Porcupine business as well as have its own optionality. I won't get into all the details of what our investment philosophy is that are on that slide. But basically, I can tell you, we invest capital with maximizing value for the shareholders in mind. And again, as I said before, that really starts to having a very significant commitment to exploration and drilling to make sure we get all the value we can out of the asset.

Last year, in conjunction with the financing for the deal to acquire Porcupine, we issued a technical report at the PEA level. It really involved just a portion of what we acquired and involved the existing mines in operation at the time, Hoyle Pond, Born and Panama, which I'll talk about in a second. This shows the production profile as well as the unit cost performance. What we can say is we're already beating those numbers. And we expect, obviously, to do a lot more than what's here. We're more or less the growth trajectory we're moving forward. We expect to basically do what they -- what was in that report in 2028, we're going to do that this year. We're also going to continue to invest to grow production from the existing assets, and then you see the arrow on the right. We've got two very significant near-term projects, Dome and TVZ, and sort of we project around 2029, that's where you see a significant step-up in what we expect to produce. The technical report itself, just by executing it, we will improve our unit cost from over 1,900 today, but we think we'll even beat the numbers. And our goal would be to sort of get an ASIC that's a lot closer to the $1,000 announced by 2031. That's currently shown for cash costs. But we will continue to manage to drive our costs down.

Now I'm just going to get to talking about the porcupine assets a little bit. And for those who don't know, I mean, Tony is born and raised in Timmins. He's worked at these assets. And I can tell you that, that statement is true of about half of our executive team. We know these assets extremely well. And basically, the producing assets today are Hoyle Pond, which is one of Canada's highest grade gold mines. It's produced 4 million ounces since 1987, never really had more than a few years ahead of it, but it just keeps on replacing. It's one of those mines that just keeps on going. When Tony was the mine manager of Hoyle Pond in the late 1990s, I think they had something like 40,000 ounces in reserve, and that was 3 million ounces ago. And we fully expect that oil Pond's just going to continue to keep going. Borden is about 190 kilometers southwest of Timmins around Chapleau. And at one point was Newmont's largest land position in its global portfolio. And the key thing about [indiscernible] is, there's been very little drilling there other than on the OneMain mining trend that probe had. We're already seeing exploration success, and I'll just expand that to say everywhere we're drilling we're having it at oil. We're having it at Borden. We're extending that trend, and we're also doing district drilling. Pam's an open pit. It's a historic mine, but we're just ramping up an open pit. And it's got tremendous exploration potential. We'll -- the technical report there speaks to getting 150,000 ounces over 22 years. That was really dictated by the milling capacity we expect to have. [indiscernible] has got an opportunity to become much larger. It's open in multiple directions and at depth. And we're already getting good results from district targets nearby. The growth mainly will come from those assets. It's also going to come Dome is a huge project for us. We have 11 million ounces in resource, where there's already an open pit. There's been 17 million ounces produced and the mill is directly beside the existing pit. We're doing a study now by bringing Dome back into production. And I'd say that we -- those 11 million ounces are all open pitable, but there's also an underground potential, too. TVZ is a large zone directly adjacent to Hoyle Pond. I'll talk about it in a moment in a little bit more detail. But it basically has an opportunity to be its own mining operation. Owl Creek is a large district target 3 kilometers to the west of Hoyle Pond. And we've already had very good exploration results there between surface and the 650 level. You can see how we're rolling up to 280,000 meters very quickly here because we've got a very extensive program going. And then we've got Hollinger McIntire, two historic mines that between the 2 of them have produced $30 million ounces. We are putting the existing Hollinger pit back into production. Newmont had a program they were executing that they closed the mine in 2024. There was still a year plus left in that program, and we're actually putting it back into operation to finish that out.

The grade at the [indiscernible] open pit is very good. So we're going to do that. Longer term, we have an opportunity to combine those assets and create a super pit concept, and we're going to look at that very closely. That's a longer-term project. It will probably be the next iteration of the executive team, but we're going to do the drilling and the groundwork to advance that, and it has huge upside.

Just going to go to this one. Just quickly, I'll talk about KID. The kid acquisition was announced on March 2, and it's got huge upside for us. These are Glencore's assets. It includes the Kidd met site, the Kidd tailings facility and the Kidd Creek Mine. The Kid Creek mine gives us exposure to critical minerals like copper and zinc and silver. It also has a huge land package with exploration potential. Big upside here, though, is we get the Kidd met site, which is a four circuit processing facility. And when I talk about getting us to 0.75 million ounces, the 1 issue that anyone who covers us, who knows us as is we need to add milling capacity. I'm going to talk about Dome mill in a second, but then I'm also -- but this gives us the opportunity to reconfigure that mill and to support the growth plans that we have for Porcupine. And I won't get into too much detail on the time I have, but this is a big win for us to be able to do this deal.

Just getting to Dome, this is the Dome site. You'll see the mills on the left in yellow. It's the yellow blocks you see there. There is a 3-stage crushing system that we need to take out -- it's expensive and inefficient. And it happens to be where we plan to push back the existing pit to bring Dome back in. We're doing a study now on resuming mining at Dome, which will be done late this year. Basically, what you see on the slide, the red outline. The purple outline is the 11 million-ounce open pitable inferred resource. The red outline is a is a conceptual pit design that would allow us to access, we believe, somewhere between 5 million and 7 million ounces, which would keep us mining for well over a decade, and that doesn't require us to relocate the mill. We're also doing a study on the mill itself to remove the 3-stage crushing, put in single-stage crushing in a SAG mill and also to expand the mill. The milling strategy that will come out of that study, obviously, getting the Kidd met site is going to factor into that. And we will have that released late this year as well.

TVZ very quickly. I mentioned it's a large loan right beside Hole Pam, that's the Hoyle Pond underground infrastructure there. key deliverable this year for us is an NI 43-101 resource, which we expect to release late this year. There isn't a resource out on it now, but it's a large zone -- it is partially refractory and we're doing met testing. That's another thing that Kidd Met site going is to help us with because there's a floatation circuit there that we plan to convert to a gold processing circuit that will help us produce this material as well as other refractory ores in the area that we may be able to obtain. This is really a conceptual production outlook. It's not intended as guidance so much. But what it's meant to show is the opportunities that we have. And you can see Hoyle Pond's doing about 65,000 ounces a year now. We believe there's upside there. Borden is doing over 100, but we expect to be able to grow it. Both these underground mines were capital-deprived. They need investment in ventilation. They need investment in new mobile fleets. We're bringing in battery powder equipment, which we have a lot of experience with from our days at Macassa, and there's great growth potential. I mentioned [ Pamar. ] We talk about a super pit at Hanger McIntire, talk about a large pit at dome that we're going to do. Again, Pamar, you can see the 150 million, including the technical report, we think we can grow that significantly. And there's just a whole lot of additional opportunities from TVZ, Hollinger or McEntire. We have other properties like Paymaster, kid could give us value creation from mining as well. And we've got several hundred million tons of tailings which we could process, particularly their economic in today's world. And on top of that, you add in Credera, and I think you see an extremely valuable company. With that, I'll leave it and hand it back to you.

Thank you, Mark. Now for all the women in the audience, I've just got to clear the earth about my clear the air about my child birth comments. And I wasn't trying to equate the pain or doing a deal with having the pain of having a child or really what it was is that both are painful. And just that if we remember how painful it was that you wouldn't never do it again. And -- but maybe with childbirth, the reason that you do do it again is because the babies that you produce are so beautiful. And in this case with the deal, you had Discovery, have -- you've got some wonderful babies, and we're looking forward to seeing them grow up.

So now we're going to move from in person to under the webcast, and we have Ryan King from Equinox who is going to join us and present Ryan, we're seeing you on the screen. Please go ahead.

Well, thanks very much, Paul, and thanks very much, everybody. Ian and team at Franco-Nevada. It's been a journey. We're in the process now of having our babies grow up to be toddlers with Equinox Gold and we'll talk about a number of assets in our portfolio that Franco has royalties on. So if we could advance the slide, please. Well, as you can imagine, I'll be making some forward-looking statements. Please do take the time to read through some of those details. You can also find a version of that on our website, equinoxgold.com.

Next slide, please. So I guess we'll talk about the -- probably one of our key cornerstone assets in the portfolio today is the Greenstone Gold mine in Northern Ontario. Yes. It's -- this asset has got some history to it. It was a historical line. This is a brownfield site that the Equinox team has took from [indiscernible] free? from conception of old underground and then envisioned a large open pit. And as you can see there today, we've got 5.3 million ounces of gold in proven and probable open pit reserves. We've got 3 million ounces of measured and indicated in addition to the 5.3 million ounces of proven and probable reserves. And some of that comes in the form of an underground opportunity. But -- and we'll talk about that in a minute. But just recently, the company came out and published updated technical reports at Greenstone and our Valentine asset, both of which are in Canada. And as you can see there, over the next 10 years, we anticipate based on these technical reports that we should see an average of 320,000 ounces a year from Greenstone and a little over 1.1 grams per tonne gold in the open pit. This would be running at about 27,000 tonnes per day. This is a large open pit asset in Northern Ontario. Now this year, we've guided 250,000 to 300,000 ounces as the asset is still in the process of ramping up. This year, we would envision that we'd probably produce about, again, 250,000 to 300,000 ounces, but process about 25,000 to 26,000 tonnes a day. So we're working towards getting to that 27,000 tonnes a day run rate. And by about the middle of the year or third quarter of the year, we anticipate to be there or beyond that. And so one of the opportunities in front of us. When we look at this asset, we say it's 320,000 ounces over the next 10 years. We do see a number of great opportunities here. This is a very large land package. I think it's over 400 square kilometer land package. And these resources and reserves here are directly at the open pit and underground asset at Greenstone. So in addition to the opportunity here, we see a great opportunity of potentially bringing underground resources into the reserve category. And then expanding that annual production profile. That's one opportunity in front of us here at Greenstone. Second opportunity, and I'll speak to this briefly, but the second opportunity here is increasing throughput. First and foremost, the focus is getting the asset 27,000 tonnes a day. The second opportunity, and I've just recently been to site with the technical team is that they believe there is a very good opportunity to push the throughput here. We see an opportunity to immediately in the near term, go to 30,000 times a day once we hit the 27,000 tonnes a day. But then there's a potential opportunity to go beyond that potentially up to 32,000, maybe 33,000 tonnes a day. So there is good opportunity from a throughput perspective, bringing on an underground opportunity, feeding that underground grade and material into the plant as well. So this technical report that we just came out with, we do truly believe this is a solid base case from what -- from where to work from.

In addition to those opportunities, this is a an old mining camp. So there's about six past producing underground mines on the site, some of which have resources, most of which have had no modern exploration. So there is a very good exploration opportunity here where potentially we could see satellite feeds coming into the Greenstone mill and therefore, either potentially expanding the mine life or increasing annual production. So a great base to start from, a great opportunity in front of us. And so this year, it's going to be a big year of transitioning from investing and transitioning into a real harvesting cash flow mode now. So it's a cornerstone asset for Equinox.

Next asset in the portfolio that I'll talk about, the next slide, please, is an even newer mine. The Valentine Gold mine, which is located in the central region of Newfoundland. And this is one of the largest open pit gold mines in Atlantic Canada. This asset is a little bit behind Greenstone. Greenstone started production in 2024. And Valentine just started production last year so we finished construction in August of last year, and we had first gold in September of 2025. I First gold to commercial production was only a few months. And in fact, Q4 of last year, we produced a little over 23,000 ounces of gold. So the commencement of operations the transition from construction to operations has gone fairly smoothly. We are now in the process of really ramping this asset up in its Phase 1 capacity, which is 6,800 tonnes a day, and we're on track for that. Q1 is just finished up here. We had a solid first quarter. The asset is anticipated to produce 150,000 to 200,000 ounces this year. Here, which, as you can see here, based on the next 10 years of reserve life, we'll be producing a little over 220,000 ounces of gold on average a year. Now Valentine is new, and we're actually in the process of just finalizing our Phase II expansion. Albeit the original technical report here envisioned that Phase 2 would be maybe year 2, 3 or 4, we're in the process now of looking at potentially investing capital this year to advance our Phase II expansion to take this plant from a 2.5 million tonne per annum throughput capacity up to 5 million tonne per annum capacity. So we're very excited about this opportunity. we do see good opportunities, taking this to this scale, and that would then bring us to that 220,000 ounce a year average.

Now in addition to this, Valentine presents a very compelling exploration opportunity. If we think back to when Valentine was first -- really first discovered, was about 2010. This is a large, big fault system in the central region in Valentine and orogenic old deposit. Most of the drilling in fact, if we look back over the last 10 to 15 years has been centered on 3 different pits. And I would say that 90% of the drilling has been confirmation or infill drilling. We've recently started doing some exploration drilling around the pits along the trend, and we found a new zone. We call this new zone, the Francs. I don't have an image of it up here, but it's just south of our third pit. We believe it's early days here. That's some incredible drill results outside of these current mineral resources and reserves that you see on the slide. So they do not include this zones that are drill intercepts that have run 190-plus meters at 2 to 2.4 grams per tonne gold near surface. So very, very good opportunity for expansion. And we believe there's an opportunity for another new pit there already at this stage, again, forward-looking statement, but based on mineral inventory there. We think we've got another 500 million ounces outside of these resources in that one new zone. So in total, this tells us there's tremendous exploration potential at Valentine. This fault system runs about 35 kilometers long. And in the 3 open pits that we have defined there at Valentine, there are about 6 kilometers of the total 35-kilometer long strike. So an exciting opportunity for action. And this year, we've got $25 million budgeted. About 100,000 meters of drilling will go into this asset this year. So stay tuned for additional updates there across this portfolio of exploration potential.

Next slide, please. So in addition to the Canadian assets, Franco also has a royalty at our Mesquite mine. Now this mine is a heap leach time located in California. It's been in production for many, many years. And for many years, it's always only had 2 to 3 years of reserve life in front of it. And yet, it's the little engine they're good. It keeps finding new zones. We continue to expand. And as you can see on the slide, we've got a little under 300,000 ounces of reserves, but over 1 million ounces of measured and indicated resources. So again, this is another one opportunity where we believe we'll likely have an opportunity to convert some of those resources to reserves, extend life and we're investing this year approximately $10 million to $15 million in sites exploration program, and we do see good opportunity there as well. In terms of future growth outside of our operating assets, again in the United States, an asset called Castle Mountain. Castle Mountain is a historical heap leach operation. And the company is actually going through the permitting process to expand this asset, and based on the previous technical report, the asset could produce a little over 220,000 ounces of gold in the United States a year. So we're working through the permitting process there. We're in the FAST-41 process. So just recently, at the end of last year, went through a public consultation period. There is a defined process here, so much so that the defined process is stated that we will get a record of decision by the middle of December 2026. And at the same time, as we work through that, we're updating the technical report as well. So looking at all the new -- the opportunities and aspects there, we'll publish that in Q4 of this year as well to dovetail with the timing of that permit. There's no guarantee that we'll get a positive record of decision. But given that we got put in the FAST-41. It is a historical asset and has been an operating asset, we believe there's a good chance that we should get a positive record of decision. Now on the back of that, positive record decision. We finalized permits with county and state the first half of 2027, and we could be in a position where we begin construction, say, the middle to third quarter of 2027. And likely a 2-year build and starting up production of that asset in the middle of 2029, giving us another 200,000 ounces of additional production growth. And obviously, a great opportunity for Franco as we unlock more value from the growth of that asset and the construction and build of that asset. So things continue along this along the path of additional growth. And in North America, as Paul pointed out in his presentation, these key assets are all located in Canada and U.S. Tier 1 mining jurisdictions great opportunity for that portfolio and a great opportunity for Equinox Gold as we continue to invest.

In total, this year, Equinox is producing 700,000 to 800,000 ounces. That's our official guidance, at $1,700 to $1,800 or $1,775, sorry, to $1,875, all-in sustaining costs. So at these prices at $4,000 to $5,000 an ounce gold that we are collecting now in our top line revenue giving us a significant amount of cash flow, a significant amount of free cash flow. So we do believe that the future growth here at CAS Mountain, all of our exploration programs and additional nonsustaining capital are fully funded through our cash flow generation. And we were fortunate enough to have the partners of Franco-Nevada to allow us to get to this stage and now start to harvest this cash and put to work on additional opportunities like Casa Mountain.

That's the extent of my presentation, Paul and team, I'm happy to answer any questions if anybody has. But I appreciate everyone's time. It's a quick snapshot there for everyone.

Thank you, Ryan. Now I don't know if any of you noticed that EconoxGolf has been following Franco around started with Casa Mountain, and where we own royalties and they got those assets. And then we bought the royalties on Greenstone. They bought the mine. We bought royalties on Valentine. They bought the mine. So sitting here, and I just realized I figured out the next M&A deal in Canada. Equinox is going to buy ski resources and SK Creek. Ryan, thank you.

[indiscernible]

The next presentation we have, the latest deal that we've done is with Metals 260 (sic) [ Minerals 260. ] Luke McFadden is the CEO of Minerals 260. He will be presenting the coming out of Perth, Australia. So I think he is on 03:40 in the morning in Perth. We really appreciate you joining us, Luke.

Thanks, Paul, and thanks, Franco-Nevada for the opportunity to present this morning. As Paul mentioned, I'm Luke McFadden, the CEO and Met Engineer Director here at Minerals 260. And yes, it's 03:40 [indiscernible]. Yes. look, Minerals 260 is a relatively new gold company on the ASX. So I won't be in solid if you haven't heard about us before. But certainly, hopefully, in the next 10 to 15 minutes, you're as excited about the company is what we are. And certainly, Franco-Nevada were recently. We were recently included on the [indiscernible] 300. And today, I'm going to talk about our 4.5 million ounce billable and gold project.

The project itself -- sorry, next slide, please. The project itself is located 65 kilometers from Calgary. That's the center of gold mining universe in Australia. The closest major mine is Evolution's Mungari mine, which is 20 kilometers away. And it's really the scale and location that makes this outstanding asset. Billabong itself means large rocks in local traditional owner language, and we certainly think they were talking about gold when they named it 50,000 years ago. Just for a bit of context, given I'm in Australia, the dollar figures I mentioned in the presentation are Australian those two, which easily enough was trading at around parity with Canadian dollar just last night. Minerals 260 acquired, the billable gold project just over 12 months ago, literally a day, 12 months and 1 day, we acquired it. And it's certainly been a transformational year for the company to say the least. 12 months ago, the market cap was $200 million, 9 months 600, 3 months, 1 bill, and just last -- just yesterday, we just tipped over $1.6 billion. So certainly been a fast-moving year, and it's all being driven by the asset, our strategy and our people. Just a bit of background about [indiscernible] itself. It was discovered in the 1980s by Western Mining operated by Resolute in the 1990s. And then between the late '90s and 2012, it really went through a series of small company ownership at some point. The asset was also split in half. And then it was put back together in about 2010 by a company called Billable in Gold at the time. Zygon or Zijin bought it in 2014 after a feasibility study came out on expecting about 180,000 ounces a year for just over a decade. And then at least become one of these assets that just got lost in a large conglomerate portfolio. The exploration manager for this was based in Belgrade. We had never been to site. They drilled less than 20 holes over their 12 years of ownership. So it really was lost in their portfolio. And then we acquired it just like I said, 12 months ago. The resource today stands at 4.5 million ounces. That is the largest resource in Australia not owned by a producer. And we're targeting the release of our feasibility study in the middle of this year. consensus analyst views on that are looking for us to achieve around 200,000 ounces a year for approximately 20 years to give you some context of the scale of the project going forward. The team is led by an incredibly high-quality Board, our Chairman, Tim Goyder is a notoriously successful entrepreneur and mining investor Australia. He's funded, chaired and run several highly successful companies, 3 ASX 300 companies that he's chaired. Two at the moment, Minerals 260 is one of them, of course. Any ones just over 7% of the shares on issue. Before I joined the Minerals 260 3 years ago, I was the Head of Strategy Osenar, which was the copper gold company acquired by BHP a few years ago now. And look, in February, we announced what we call our transformational deal with Franco-Nevada, $220 million royalty in equity investment. And we were certainly wrapped to be able to bring Franco-Nevada on board as a partner and as an investor, and we certainly see it as a long relationship going forward. It was actually quite unique. We thought that you can get a deal with a counterparty that you could actually see it from their perspective as well. And we certainly thought the financial metrics were compelling for both sides. So it really was a bit of one of these a bit of a cliche or win end that we thought for both sides. Certainly, for Franco, they get the increased exposure to the leading gold project in Australia, the largest resource not owned by a producer. And we certainly expect that resource to grow, which I'll talk about in a moment. For Minerals 260, it was actually all about value. This stood out as really value accretive for us. It derisks and accelerates our development schedule. We're targeting first production by the end of 2028 calendar year. Like I said, we've introduced the company to a fantastic partner who is backing us to develop and operate [ Bullabulling, and ] we have completely debunked the myth in Australia that royalties are not attractive funding options for developers. There certainly was a math going around for many years, probably obviously led by the bankers and brokers. But we certainly know many other developers have stood up and take notice and certainly contacted me about understanding more about the deal. So we certainly like the opportunity to debunk that myth.

Change the slide, please. Look, in the last 12 months, we've drilled 140,000 meters. We acquired 2.3 million ounces and 9 months later, we updated the resource to 4.5 million ounces. $3 million of that is indicated. We've commenced our feasibility study work. We've acquired a further 600 square kilometers today. So today, we sit on 750 square kilometers of greenstone belt, a 45-minute drive from Kalgoorlie. So I certainly have become very quick with the dominant landholder in the area. And with Franco's investment, we will certainly be drilling a lot more meters than what we would have otherwise done. We will drill 60,000 meters up until about June, and then we will recommence the program once we've put out that new resource like I mentioned. But more importantly, for us, we will very shortly commence construction of a 400-room accommodation village and we're accelerating the development of this project in several other ways, including the procurement of long lead items, early site works and investment in the water infrastructure. And all of that will happen this year, whilst we are concurrently running studies and FID is targeted early 2027. We're certainly moving at a speed, very few companies in Australia have done before. But it's for two reasons. It's the asset itself, of course, and then it's more recently, it's Franco's investment that allows us to unlock this asset at a much faster and different pace than what we otherwise would have done. [ Bullabulling ] certainly stands head and shoulders above the scale of any other resource in Australia, not owned by producer. And the resource that comes out in the middle of the year will have 60,000 meters of new drilling. Last year, we drilled 110,000 meters in 8 months. To put that into context, that's more meters drilled by Minerals 260 in that 8 months than the last 20 years combined at the asset. And there was 530,000 meters drilled at the asset before we talk ownership. The average drill depth was 50 meters and all that drilling was completed when the gold price was USD 1,000 an ounce or less. So we certainly think there's a lot more to go in terms of growing the resource given we've only owned it for 12 months and a day, and we've only just begun to piece together the 10-year package, and we are running this concurrently to the study. So it's a unique value proposition that we've got a growing resource that's going to be unlocked in operational within -- in under 3 years, but at the same time, we're growing at the pace that we are. Certainly, the drilling results have exceeded our expectations in many ways, especially with the intercepts that have been some of the highest gram times meter intercepts in the history of the project, which is not easy to do, given it's a 40-year-old project. But for us, importantly, the highest-grade intercepts we've hit are actually not included in the 4.5 million ounce resource because we hit them in November and December last year, which is after the time that we'd cut off the database for the resource estimation. So when we say we're confident about the resource growing, we've certainly got some key data points to point to towards that.

For us, we believe [indiscernible] will be the next large scale on life and high-margin gold mine in Australia. It will certainly establish Minerals 260 as the next ASX gold producer. and sit alongside our mid-cap peers in -- on the ASX. And it will be the foundations that we continue to grow the company. We like said, we've been acquiring a lot of ground around Colgate, where the asset is based, hoping to continue to grow the company in addition to the resource at the same time. In the next 12 months, it will be an incredibly careless rich period where we will release the PFS, the maiden ore reserve, the DFS, the updated resource targeting final investment decision early 2027, commencement of construction activities.

So thank you for listening, and certainly feel free to ask any questions if you've got any. Thanks, Paul.

Thank you, Luke. I know I said earlier on that with our partners when we do the deal, if we can make our partners successful, and they're shareholders successful, that actually is the best success for ourselves. But Luke, your share price has gone up so much since this deal. I'm starting to wonder, did we overpay?

No, I know...

I'm just kidding. I'm kidding on that. And really, the -- Luke mentioned it, the part of doing this deal, and what's important for us and it is cracking the code in Australia and getting people to recognize the value of royalty and stream financing in the Australian market. And when we set out to do it, we said we need to find a party to do it, who is a really credible party. And in finding Luke and Tim, they are such a well-respected team in Australia that really what has got the ripples going is to see their team take on royalty and stream financing. So we couldn't be happier with this deal. Thank you, Luke.

In terms of next presentations, we're back to the Franco team. John Blanchette and Matt Begeman are going to speak about some of the other big projects that will be driving our longer-term growth. John?

Thanks, Paul, and thanks to our partners for a great overview and their respective projects and good afternoon, everyone. Today, Matt and I will discuss a few long-term options. As Paul mentioned previously, we have a number of assets, not in our 5-year guidance that could contribute significant geos to annual production. We have highlighted a few on the chart here in the lighter blue in the light gold, and we'll walk through in more detail, including Antapaccay. At Glencore's Capital Markets Day in December, Glencore provided some additional information on the [indiscernible] project in Peru, which is expected to significantly expand the mine life Antapaccay with copper grades that are approximately 50% higher than Antapaccay reserves. Our stream covers the majority of the Antapaccay concession, including [indiscernible] will exclude the recently acquired Katcha project. Glencore expects a construction decision on [indiscernible] in the second half of 2026 with first production targeted for H2 2029. Average annual gold and silver production at [indiscernible] is expected to be approximately 53,000 ounces of gold and 1.5 million ounces of silver over a 40-plus year mine life. There are also multiple resources within the antacid district, which provide for other potential mine life extensions. Our Antapaccay stream is initially linked to copper, but is expected to transition from a copper link to 30% of gold and silver production in 2028. We anticipate that the likely [indiscernible] expansion will help offset the upcoming step down on Antapaccay stream and significantly extend the mine life by over 40-plus years. One of our largest potential future contributors that are expected to provide significant growth in the medium term is the Cascabel project in Ecuador. Cascabel is one of the largest copper gold development projects in the world with an M&I resource of over 31 million ounces of gold. We purchased a 1% NSR from SolGold for $100 million in 2020 and announces syndicated $750 million stream in July 2024. As you may have seen, last month, JCC completed the acquisition of SolGold and subsequently exercised their 50% buyback option on the stream and the NSR. As compensation for the buybacks, we received a onetime delivery of gold ounces worth approximately $40.7 million net of the ongoing payment for the 50% buyback on the stream. And on the NSR, we have essentially recouped our capital with approximately $97.5 million in cash for the first buyback resulting in a significant return on our investment. Franco-Nevada's portion of the stream now consists of 7% gold produced, stepping down to 4.2% after 206 -- 2,500 ounces of gold have been delivered. The NSR has been reduced to 0.5% on all minerals produced subject to adjustments based on the production rate. We are excited to partner at JTC on this project. I believe that their ownership reduces the financing risk and provides technical expertise to advance the project. The 2024 PFS supported a large block cave with a mine plan that only represented 18% of the known resource. SolGold has also identified an open pit potential at TAM, which could accelerate initial production while the block cave is being developed. SolGold estimated first production at a time open pit could occur as early as 2028 and Apollo block cave in 2030. Cascabel is a long-life asset with the potential to add up to 30,000 GEOs per year to our portfolio.

Moving on to New Prosperity. The new Prosperity project in BC is owned by Taseko and is one of the largest copper gold porphyries in Canada. The project hosts M&I resource of 13 million ounces of gold and 5.3 billion pounds of copper with a historical technical report highlight an average production of over 400,000 gold equivalent ounces for a 33-year life of mine. In June 2025, Taseko announced a signing of an agreement with the -- sorry -- in June 2025, Taseko Naini agreement as [indiscernible] and the province of British Columbia, providing a potential pathway to project development. Taseko is contributing 22.5% equity interest in new prosperity to address for the benefit of the silicate nation. The province of British Columbia and the silicon [indiscernible] nation are now currently working together on a land use planning process for new prosperity. Franco-Nevada has the right to acquire a 22% gold stream on the new prosperity project for $350 million. Once in full production, New Prosperity has the potential to add approximately 62,000 geos per year to Franco-Nevada, representing greater than 10% growth to our portfolio.

I will now turn it over to Matt to discuss a few other assets. Thank you.

All right. Well, thank you, John, and thank you, everybody, for your time being here today. So I'll continue on going more focus on some of our royalty assets located within North and South America, and particularly, I'll start first with the Yanacocha royalty in Peru, which covers all Newmont's Yanacocha and associated Peru projects located nearby with a 1.8% NSR. This includes the currently producing oxide and re-leaching operation from the mine today, which has significantly outperformed our expectations, plus the sulfide project located beneath the oxide footprint. Interestingly, though, beneath just these projects alone, we also cover the Quilish high-grade oxide project, looking at adjacent to current operations as well as the large Conga copper gold project located nearby. We were able to acquire this royalty from the prior JV partner and benefited from due diligence, including a site visit, which confirmed that this is one of the greatest gold assets in the world, gold production to date of more than 40 million ounces. And despite this level of production, there's still more than 40 million ounces of gold equivalent across the various projects to come. Production has recently averaged around 500,000 ounces per year from oxides and re-leaching. We now expect approximately half of our payback from the oxides alone, far above our initial product assumptions, and that it does not involve the current resources and the extensive projects beyond that. Going forward, the projects and the exploration upside and the large land package, have the opportunity to contribute from the current approximately 9,000 GEOs per year, up to 25,000 GEOs per year if the projects are producing concurrently and we expect this production level to be able to maintain for decades. Overall, it's been a great illustration of the optionality within the portfolio as the releasing has delivered significant cash flow that was not anticipated at the time while still maintaining an extensive upside to come.

Turning on turning to the Arthur Gold project, look at Nevada, which AngloGold Ashanti's flagship development project, we frankly Nevada 1% NSR is one of the most exciting gold stories in the industry today with the potential to be a new Tier 1 district with a rapid resource growth and accelerated path of production. The current resource of 9.4 million ounces M&I and 6.3 million ounces inferred represents a dramatic increase of nearly 3.5x compared to the initial resource declared only 4 years prior. While we believe there's extensive upside in the resource to come with more drilling as demonstrated by the active drill program Anglo has. AngloGold is moving forward with an accelerated production time line based on initial PFS mine life of 9 years, which contemplates 500,000 ounces per year of production, but it's front-ended with more than 800,000 ounces per year start in the early years. With federal permitting slated to begin in Q1 of 2027, we see excellent potential for medium-term production starting in the early 2030s. And we note that AngloGold is pointing towards potential for 18 million to 20 million ounces from numerous exploration upside targets on site. Our team is similarly excited, and we expect significant resource growth to come. And we expect the mine life to extend beyond the initial 9 years, and we also see good potential for the initial 800,000 ounce period to be extended either through grade increases or the potential for expansions in the future of the throughput.

Moving on, I'm turning here to Ontario to the ring of fire Nevada has a unique exposure to this future critical metals hub. We have royalties here ranging from a 1% GSR on the Eagles Nest mine to 2% to 3% on the broader chromite deposits. royalty coverage here is extensive, noting the fact that we got in fairly early with approximately 1,000 square kilometers covered, including the Eagles Nest project, as noted, which will be likely be the first asset to be developed in this area, which is a high-grade nickel, copper and PGM project. El NAS represents one of the largest undeveloped high-grade nickel projects globally with an FS supporting 15 years of initial production and significant potential for extensions at depth. What's really unique about the ring of fire is the extensive chromite deposits, which are unique in North America at this scale and have potential to provide significant strategic advantages of the critical metals hub in the future.

As a needless mind is first developed, it will provide significant synergies to allow access to some of those chromite deposits, which could provide many decades of GEO's contributions. This project has very strong government support within the country, and we look forward to being advanced under [indiscernible] leadership.

Finally, let us speak briefly on Ragosa. As Paul had mentioned earlier on, this is 1 of the unique optionality plays within our portfolio. [indiscernible] has a 2% NSR on the gold at 1.5% NSR on the base metals. Strict Metals is advancing this project in Serbia. And the deposit has been a very exciting exploration story, both internally and externally with a rapidly growing resource increased from an initial 2 million ounces of gold equivalent to more than 8.6 million ounces in 2025, just a 4-year time period as well there. Project is being actively explored with an ongoing exploration program and a PFS due in the first half of 2027, and we expect resource updates all along the way, given the ongoing drill program, which will likely see it continue to grow. The early stands out to me is just a great example of the benefits of the royalty model and being able to get in early on some of these exploration plays with outside capital coming in and moving them forward and sort of unanticipated time lines. So royalty was purchased in a portfolio. We know that it is an attractive exploration target. That was about it. We see a very nominal value to it. But as you can see now, since that time, effectively nothing but exploration grounds, now 8 million ounces. It really demonstrates the value and optionality contained with our portfolio, often in places where we might not initially strive that value. So hopefully, these projects have highlighted some of the unique attributes of our portfolio and give consideration of some of the upside. I think just scratches the surface of what we have.

But with that, I'll turn it over to Sandip Rana.

Thanks, Matt. Good afternoon, everyone. I'm going to briefly talk about our available capital, capital allocation policy and our guidance and outlook. Just a little bit here Okay. So the beginning of 2025, we had about $1.5 billion in cash on the balance sheet. And then during the year with the high commodity prices, we generated another $1.5 billion in operating cash flow. So a significant amount of capital to spend. But as Eaun highlighted, we deployed over $2 billion of capital in 2025 on good long-life, high-quality assets in good mineral jurisdictions. So when you factor in that $2 billion that we spent along with the dividend, we ended up the year with about $670 million in cash. So taking that $670 million, adding in the $1.5 billion credit facility that we have which does include a $500 million accordion. And our equity portfolio of roughly $900 million at the end of 2025. We ended up with about $3.1 billion of available capital. And that's essentially where we sit right now. Subsequent to year-end, we did deploy about another $500 million in the new transactions that we've announced, that has essentially been funded through cash flow from operations. So we have a lot of firepower to continue to add to the portfolio. The one area I want to just quickly touch on is on our marketable securities. I don't think it gets enough attention by investors and analysts. The way the accounting works is any unrealized gains or losses associated with that equity portfolio actually does not flow through EPS. And so if you look at last year, that portfolio generated an after-tax unrealized gain of $700 million. So on an EPS basis, that's $3.60. Our regular adjusted EPS for our royalty stream business was $5.58. So that's a significant amount of value that does not go through our earnings. So I just wanted to highlight that. One reason we do generate so much cash flow is because we are a very high-margin business.

In 2025, our EBITDA margin was 90%, and our earnings margin was just under 60%. And as you can see on the slide, as the gold price has gone up, our margin has increased quite significantly in 2025, as we all know the gold price to almost double that year. But you can see the cost per geo has gone from $242 an ounce in 2020 to $325 in 2025. That's a 34% increase over that time frame, while our margin has gone from $1,528 per ounce to 3,110 over 200%. So as the gold price goes up, our margin goes up, and so we do have actual leverage to the gold price.

The other element of our cost structure is G&A. And I like -- I really love this slide because it basically shows how scalable our business model is. From 2008 to 2025, our revenue has gone up almost tenfold, but our G&A has remained essentially flat. We have just over 40 employees, and we could increase the size of our company significantly from an asset standpoint, and our G&A would not increase that much. So it's just the power of the business model, along with optionality is just the scalability of the business. Obviously, we do generate a lot of cash, significant at these commodity prices, but we do have a credit facility of $1 billion and a $500 million accordion feature associated with it. We're not opposed to using debt. In fact, the red bars there show that when we were in a net debt position, obviously, 2015, 2016 when we added the precious metals streams on long-life base metal assets. And then 2018, 2019, when we deployed a significant amount of capital in the energy sector. In fact, last year, we drew down on the credit facility as well when we did the Arthur transaction for $175 million, but we repaid that within a couple of months. So we're happy to use the credit facility. We kind of use it like a credit card, you draw on it and then you pay it off as fast as possible. And we could easily upsize this, but we just don't like to pay the fees. So we're -- right now, we're content with a $1 billion credit facility.

So obviously, our priority is to use our cash to add good assets to the portfolio, long life, good mining jurisdiction. But giving back to shareholders is also important. And our philosophy on the dividend is progressive and sustainable. We want to be in a position where we never have to cut the dividend, but actually raise it every single year regardless of what's going on with commodity prices. We're very proud of the fact that in January, we raised it 16% to USD 0.44 per share per quarter. That's $1.76 annualized. That's the 19th consecutive annual increase for the dividend. And in total, we paid over $2.8 billion to shareholders since our IPO. And that's worked out to about a 13% CAGR on our dividend per year. And just finally, just our guidance and our outlook. I just want to highlight, when we give guidance, we give guidance based on gold equivalent ounces sold and not gold equivalent ounces produced. So our measure is after recoveries, payabilities and refining deductions. I think it's a better metric when you're trying to derive revenue and obviously, the rest of the financial metrics that are associated with that.

Two changes for 2026. First of all, we did have discussions with investors and analysts. And so now we are giving ranges for specific commodities. So as you can see on the slide, gold ounces sold. We are actually giving a specific range for silver ounces and PGM ounces. And for diversified that business, we're giving a revenue range. So in this case, $245 million to $285 million. Secondly, when we convert all of these to gold equivalent ounces, we are using a fixed conversion ratio. So for 2026, we will be using $4,500 gold. So every quarter when we're coming out with our gold equivalent sold metric, it will all be based off of a $4,500 gold price. So the big movers for our guidance in 2026 to that 510,000 to 570,000 geo range is the benefit of full year from acquisitions we did last year, Porcupine and Cote. Obviously, the 2 new ones we did this year with I-80 and Casa Berardi with Aurizone. So those are key components and then obviously, Valentine's getting a full year ramp-up of that mine, adding to our ounces for 2026. What is not included in here is Cobre Panama. And as you would have seen yesterday, the press release that the Panamanian government has given approval for First Quantum to begin processing the ore stockpile. We estimate that's about 27,000 geos to Franco's account. We do expect some ounces this year. We just don't know the timing. So right now, our estimate is probably towards the second half of this year, we'll start to receive some ounces with the balance coming in 2027. As we get more information, we'll be happy to disclose more specifics. So when you look out to 2030, our GEO range increases about 13% to 555,000 to 615,000 geos. Number of components to this is new mines getting built, Cascabel, SK Creek, Stibnite Gold, [indiscernible]. Obviously, there's a number of mine expansions that are occurring, Magino, Detour Lake and Castle Mountain. And this is net of the step downs at Candelaria, which is going to happen in 2027 and to PCI in 2028. So a good amount of growth, 13%, but if you add in Cobre, which again is not included here, and Cobre fully ramped up is about 150,000 to 175,000 GEOs a year. It's 45% growth. And a key element of this is the bulk of this growth is paid for. don't have $1 billion to spend to add this growth. For us, our largest capital outlay will be on Cascabel, which will be a couple of hundred million dollars. So the bulk of this growth is fully paid for. And the other element that's not included here is the organic growth that's still to come because with the amount of money that operators are generating right now, we know there'll be further mine expansions. Exploration drilling, as we've heard today. So we look forward to that additional growth that is not factored in here.

And so with that, I will turn it over to Paul for closing remarks.

Thank you, Sandip. Sometimes I push Sandip, but I say I need a more aggressive CFO because why can't we give those production numbers like everybody else does for our guidance because I see them report, it's 10%, 20% higher than what their actual sales are. Anyway, I haven't had any luck in convincing you.

So that concludes all of our presentations. Thank you for your patience. We would love to take, first of all, any questions that are -- come from the floor here. You welcome questions for anybody on our team. Questions for any of our partners here. My one ask is we will pass you a microphone just so that the folks on the webcast can hear any questions. I think we got one right over there.

It's Lawson Winder from Bank of America. I wanted to ask, going back to one of the slides you spoke to earlier in the presentation about the pipeline. I mean, you touched on your success at adding ounces in the last year in a bit. But just looking forward, what are you seeing in the pipeline for 2026? I mean you're highlighting $1.5 billion of liquidity. I mean, is it possible there's enough in the pipeline for all of that to be consumed?

Go ahead, Eaun.

Thanks for the question, Lawson. The pipeline remains very healthy. Overall, a lot of the key constituents of our growth over the past couple of years, they remain intact. So you would have noted already this year, we've participated in project financings. I expect, given the backdrop with higher gold prices that more projects will advance. So I'm hoping to see more of that type of financing as well, third-party royalties, as you saw last year with Detour can make up a meaningful component of our growth. So I expect to see some of those in light of the current gold prices come through. And notably, I think given recent transactions in Australia and also with BHP, I think the market has taken notice. So hopefully we'll see some byproduct streams as well.

If I could just follow up on that in terms of the sizing, and then I'll pass the mic to this gentleman here. One of your peers recently announced a transaction in which it took on a really enormous amount of debt. You guys have been very through your entire history in terms of the amount of debt only a very small amount in that 2018, 2019 period when you added some royal some oil and gas assets. How is your thinking on that changed at all? I mean, could you add a material amount of debt? I mean, particularly when you look at the quality of the business and the margins, I mean, what could be the upper limit of the debt that could be added? Like are we talking 1, 2x net leverage. And I'll leave it at that.

Thanks for the question, Lawson. As I said, we're not opposed to adding debt to the balance sheet. It just comes down to what's the level. In terms of a specific number, 1x EBITDA might be reasonable. But the way we look at the business is you want as much financial flexibility when opportunities arise. And so if you do have a large amount of debt because obviously, we could manage 2 times. But if a large transaction comes along, we'll kind of hindered in terms of being able to complete that transaction. So it all comes down to financial flexibility. A certain amount of debt on the balance sheet that we can pay off very quickly. We're open to but a significant amount that would take longer, that is something that doesn't fit with our business model.

Francisco Carrier from Carlo Capital. Congratulations. Obviously, the numbers that we see and the information that we hear today from you are years of very consistent underwriting and long-term planning. So congratulations for that. My question is a follow-up on lessons. And thinking about the current environment we are living through a looking at some of your competitors' actions and scarcity of these nice Tier 1 assets that you will look for. How do you think about the underwriting policies. I mean do you think that you need to relax a little bit of the hurdles that you might have had in the past of the minimum returns that you for a specific project because of the current environment, will that remain as high as they've been in the past that have generated what we have today. And this comes into question because how do you think about if you get another $1.5 billion, $2 billion, whatever cash flow this year. Is it okay to have that cash pile grow and just sit in the balance sheet and wait for better opportunities. How are you thinking about all that?

Well, thanks, Francesco. And a couple of things there. And maybe I'll go back to the comment, the transaction that we saw from BHP selling a stream on Antamina, which is a super asset. And the main takeaway from that was here, you had world's biggest mining company selling a royalty and stream where had no financial distress that really the only reason for doing the deal was because they felt that it would highlight the daylight value that they had in the portfolio to the investors that wasn't being recognized and the incredible thing is PHP even the size that they were, they announced that deal, albeit along with their earnings on the same day, the stock price went up 7.5%. So that really raised a lot of eyebrows because for many years, decades, the senior players have not typically none stream and royalty financing. So I do think that is open. The eyes of a lot of people. I think that you will likely see more deal activity that comes on the back of that. So that -- and along with some of the drivers of the pipeline that Eaun mentioned, we think it's going to be a very productive time. So that's a long way to answer your question of -- I know, I don't think we need to change our investment metrics at all. I think we will stick to our same disciplines. The -- one of the key things I was alluding to earlier in the presentation is the -- our focus is on gold and precious metals, and we will invest through the market in doing that. But you do have to have a gut sense of where are you in the cycle? You want to spend a lot of capital at the bottom of the cycle, and you want to keep spending through the top of the cycle, but you don't want to be betting the farm at the top of the cycle. We've had a tremendous run in goal. I hope it keeps going on, but it has been a good run. So this is also the point in time when you look around and say, let's look at other commodities to see, could there be other value in other commodities. And so in this market, I think we're open. I think there are good opportunities, gold and precious metal. I think there may be some good opportunities in other commodities as well. So first thing there is we've got plenty of capital. I'm not worried that's going to build up the stage. We see lots of potential ahead of us. So I think we will deploy it. But even if the opportunities don't come to pass, and we do build up capital, we're happy to do that. This is a very long-term business. The -- you can't expect that the day that you got the money that a great deal is going to come along and you can spend it. So if we need to be patient and wait for the good deals to come along, absolutely, we'll do that.

Yes. What can you add on Cobre Panama time line and negotiations? Has the environmental assessment been completed? And when is a negotiation with the government going to happen and a little bit about maybe if you can talk about the more in Panama towards reopening the mine?

Well, thanks, good question. Very happy to answer it, especially today, having just seen yesterday that the Panamanian government did give formal approval for First Quantum to go ahead and process the stockpiles at the mine site. So that follows on. We've seen since Molino came on in his very first week of [indiscernible]. He said he was open to a discussion on the mine. Since then, he's approved the preservation safe maintenance plan approved the shipping of the concentrates that had been trapped at site after the protests approved the reopening of the power plants. So the power plants are now operating again. They're putting power on to the great in Panama. And this is now the next step that he's approved restarting the mills, and I believe First Quantum will start at least one of the lines. so that they can process the ore that was blasted previously but hasn't been put through the mill. So the first thing, my read of it is shows the ongoing intent of the government in Panama to take this seriously, the potential reopening of the mine. The second thing is from First Quantum's perspective, it does allow them to start operationalizing. They -- from a 7,000 employee workforce, they were down to 700 for care and maintenance. They are hiring another 1,000 employees that they can take the step to process the stockpiles, I think they have already hired 700, 800 of that 1,000. So they're well on their way. So it allows them to start that process so that if and when they get a go decision, they're actually able to get back into production in a reasonable amount of time. You asked about the environmental review. I understand that it is mostly completed. The time line was to try and get it done in April. I think that, that will be achieved. So I'm hopeful that in a month or so that we could see some announcement out of government that gives the results of that review. And I hope that, that will then help them set or address on what was one of the biggest concerns when you had the protest 18 months or so ago that were around -- was the environmental damage that was being done at the site. I'm pretty confident that this report will come out to say there is no material environmental damage. There's no nonconformance. This is a mine that is very well run. This is -- the next part of it, when the negotiations start? I don't know, but I would hope that once that environmental report is out, if there is a good response to that. I would hope that, that sets the seam that the government can then start a formal negotiation with the company.

Sorry, can you hear me? Brian MacArthur, Raymond James. The business has evolved a lot over the last, whatever, 25, 30 years. So now you're willing to do debt equity but obviously, a goal is a stream or royalty at the end. When you look at the full package, ideally, how much of the stream or royalty component do you want to be on that package given you get a higher multiple on that. That's my first question. i.e., if you did $1 billion deals, would you put in $500 million of equity and $500 million for a stream. And the second part is, if you do deals in other commodities, would you be willing to do the same thing, give a full package or when you look at other commodities countercyclically are those just going to be streaming royalty deals, which is more of your traditional business that you get a better multiple.

Thank you, Brian. Good questions. The objective in us doing any deal is to create a new stream or new royalty. The -- but we know we need to address the needs of the operators. We need to help them to achieve their objectives, and if doing some debt, some equity along with that, helps achieve the objectives, then it gets the end result for us. But the majority of the deal needs to be the stream or royalty in terms of the capital deployed. That's been our strategy. We may be wrong because, in fact, on the equity investments we've made, we've done much better so far on the streams of royalties. So maybe we'll change that for next year. But for now, that is where we're going. And extrapolating that to other commodities where potentially, we could take some exposure, but we're less inclined. We've got a lot more choice. I mean, you've got the whole gamut of all the other commodities. Some of them are much bigger than gold. So there's a lot more opportunity. So I think we can source opportunities in the other areas without using a lot of debt and equity. But again, there's no hard rules more just a direction.

Are there any more questions in the room here? I'm not seeing any hands for now. So I'm going to -- I'm looking over to Lloyd and Candida, who have got any incoming questions from the webcast. Have we got any from the webcast.

No questions on the webcast.

Okay. With that, we will conclude the events for today. Thank you all very much for your attendance. And thank you to all the folks participating on the webcast and presenting Hope everybody has a good day. With that, we'll conclude the webcast.

Good morning, and welcome to Franco-Nevada Corporation's 2025 Year-end Results Conference Call and Webcast. This call is being recorded on March 11, 2026. [Operator Instructions] I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations. Please go ahead.

Thank you, Joanna. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's year-end 2025 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you'll also find our full financial results. Presentation is also available to view on the webcast. During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks followed by Sandip Rana, Chief Financial Officer; who will provide a review of our results, followed by Eaun Gray, Chief Investment Officer, who will provide a review of our recent acquisitions.

This will be followed by a Q&A period. Our full executive team is available to answer any questions. Participants may submit questions by the telephone or via the webcast. We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on Slide 2 of this presentation.

I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

Thanks, Candida, and good morning. 2025 was a record-breaking year for Franco-Nevada driven by higher precious metal prices and growing production. Thanks to a strong fourth quarter, we achieved the top end of our revised 2025 GEO guidance range. Big focus for us is growing the business profitably. So it's a proud moment when the annual earnings increased by roughly 75%. The more than $1 billion in earnings is close to a 60% earnings margin a level of profitability that's impressive in any sector.

In January this year, we increased our dividend for the 19th consecutive time with a record rise in our 2025 cash flow, we announced a higher-than-normal 16% dividend increase. Our 2026 GEO guidance shows good growth over 2025 with further growth in our 5-year outlook. In many ways, this is just a baseline. With the abundant cash flow and capital in the gold sector, the drills will be turning on the 70,000 square kilometers of mineral tenure that we covered globally. We've identified $250 million of exploration spend on our Canadian assets alone this year. So we expect a multiple of that on our global portfolio.

A restart of Cobre Panama would add significant further growth and the Panamanian Government's willingness to approve the processing stockpiles is a positive step in that direction. While our goal is to be the go-to gold stock, we recognize the cyclical nature of commodities and the benefits of some commodity diversification. Our guidance this year is based on $70 per barrel oil. The last I saw WTI prices were $85 a barrel. If that's sustained, our 2026 guidance may be too conservative.

2024 and 2025 have been 2 of our best ever years for capital deployment, adding 6 quality long-dated assets to the portfolio that contribute to our 5-year outlook and help sustain those production levels over the next decade and beyond. Our strategy of being the financial backed with strong teams has worked wonders. We've seen the GMIN and Discovery share prices increase tenfold, and they're now some of the darlings in the sector. Post year-end, Eaun and the team have backed 2 other teams in North America, Paddy Downey and the Orezone team acquiring Casa Berardi from Hecla and Richard Young and the i-80 team developing their suite of assets in Nevada.

Most recently, we've backed Tim Goyder and the Minerals 260 team developing the Bullabulling assets in Western Australia. We're delighted that their share price is up 50% in the couple of weeks since the transaction was announced. By making their shareholders successful, we believe we can open the eyes of the Australian markets to the power of our financing model. You will have seen in our asset handbook the term royalty ounces representing MI&I resources in streams and royalties where the economics are 100% attributable to us. In the deals we have done since year-end, we have added 820,000 royalty ounces. That's an undiscounted value of over $4 billion at today's gold prices.

Our average cost was $770 an ounce, a fraction of the cost you see in other transactions in the sector. We're committed to promoting sustainable mining, and we're delighted to be named by the Corporate Knights in 2026 as one of the 100 most sustainable corporations globally. To wrap up, we're excited about the outlook for Franco-Nevada in 2026. With the industry's largest portfolio of gold royalties, no debt, $3.1 billion in available capital, we really are uniquely positioned to create further shareholder value. Over to you, Sandip.

Great. Thanks very much, Paul. Good morning, everyone. As Paul mentioned, Franco-Nevada reported record financial results for fourth quarter and year ended December 31, 2025. Our diverse portfolio of royalty and stream assets performed well and continued to benefit from higher precious metal prices. Slide 4 provides a recap of the company's performance against the revised guidance provided for the year. The updated guidance range was 495,000 to 525,000 total GEOs sold. Of this total, the company guided 420,000 to 440,000 precious metal GEOs, with the balance being from diversified assets. With strong performance from a number of assets during fourth quarter, the company finished the year with 519,106 GEOs sold, which was near the top end of the guidance range. For precious metal GEOs, we slightly exceeded the top end of the range with 440,140 GEOs sold. The diversified assets, which include our nonprecious metal mining assets and energy assets, resulted in 78,966 GEOs sold for the year.

On Slide 5, you will see a summary of commodity prices for fourth quarter and full year 2025 and 2024. Gold and silver prices increased significantly year-over-year, with the average gold price higher by 56% in the quarter. However, the 2 strongest performers during the fourth quarter were silver and platinum, each up 75% and 74%, respectively. The strong silver price performance resulted in a stronger gold silver ratio, which benefited our silver assets, in particular, Antamina and while our west -- and also our Western Limb platinum stream, which benefited from stronger platinum price. For diversified commodities, prices for iron ore remained essentially flat year-over-year. Oil was lower, but we saw a significant increase in natural gas prices year-over-year.

The strong performance from our assets, combined with record gold and silver prices resulted in record financial results for 2025 as seen on Slide 6. Revenue was higher by 64%, adjusted EBITDA 74% and adjusted net income 74%. This was also the case for fourth quarter as compared to prior year as seen on Slide 7. Total GEOs sold for the quarter increased 18% to $141,856 compared to 120,063 in fourth quarter 2024. Precious metal GEOs sold in the quarter were $127,959, higher by 34% compared to prior year. 50% of total GEOs sold were sourced directly from mines where precious metals are the primary commodity. For the quarter, we received strong contributions from a number of key assets. Antamina, where we benefited from both higher deliveries as fourth quarter was the highest delivery period during the year and also benefiting from higher silver price when converting to GEOs.

Both Guadalupe and Antapaccay had strong production quarters. And at Hemlo, we benefited from the leverage that net profit interest provide. As you know, the Hemlo NPI is difficult to forecast as it depends on how much mining is performed on Franco-Nevada's Interlake lands. During fourth quarter, we benefited from both higher production on our lands as well as higher margin per ounce with the rising gold price. In addition to the strong performance from those assets mentioned, we benefited from asset acquisitions that were new contributors to Franco-Nevada during fourth quarter, Western limb, Porcupine and Cote.

Diversified GEOs sold were $13,697 for the quarter compared to $24,498 for prior year. This was partially due to lower diversified revenue than prior year, but the larger impact for the reduction in GEOs sold is due to the impact of higher gold prices when converting revenue to GEOs. As you can see from the chart, total revenue increased by 86% for the quarter to $597.3 million, which is a record for Franco-Nevada. Precious metals accounted for 90% of revenue. Adjusted EBITDA, also a record, was 95% higher for the quarter at $541.2 million compared to $277.4 million in fourth quarter 2024.

With respect to costs, we did have an increase in cost of sales compared to Q4 2024 due to higher stream ounces sold. Depletion increased to $87.3 million versus $60 million a year ago as we received more GEOs from Antapaccay and Antamina and began depleting our recent transactions, Yanacocha, Western Limb, Porcupine and Cote. These assets are higher per ounce depletion assets. Finally, adjusted net income was $356.2 million or $1.85 per share for the quarter, both up 94% versus prior year.

Slide 8 highlights the continued diversification of the portfolio. 85% of our full year 2025 revenue was generated by precious metals, with revenue being sourced 88% from the Americas. No one asset generates more than 13% of revenue as we have one of the most diverse portfolios in the industry. Slide 9 illustrates the strength of our business model to continue to generate high margins. As you can see over the last number of years, as the gold prices increased, our margin per GEO has remained fairly constant. The cash cost per GEO has increased from $242 in 2020 to $325 per GEO in 2025, a 34% increase over this 5-year period. However, the margin has increased from $1,528 per GEO, in 2020 to $3,110 per GEO in 2025, a 204% increase while during this period, the average gold price increased 194%. Our business model is very profitable as royalties and streams are usually top line revenue interest with either no cost or a fixed payment associated.

As a result, as seen on Slide 10, our adjusted EBITDA margin for 2025 was 91%. And when accounting for depletion and taxes and other costs, our adjusted net income margin was 59%. As we look forward, Slide 11 summarizes our GEOs sold guidance for 2026. Beginning in 2026, we will be adopting a fixed GEO conversion ratios based on the pricing assumptions that you see on the slide. This methodology replaces our previous variable GEO conversion ratios based on actual average commodity prices and is intended to make our GEO guidance better reflect production volumes. Our total GEOs sold are expected to range from 510,000 to 570,000 ounces with 90% from precious metals and 10% from our diversified assets.

As you can see, we have provided guidance ranges for gold, silver and PGM ounces and for diversified assets, we are providing a revenue range. The main drivers for the GEO sold increase year-over-year are for precious metals, we will be benefiting from full year contributions from a number of assets, both acquisitions and new mine starts. Cote Gold, Porcupine, Casa Berardi, i-80 and Valentine Lake, and we will continue to benefit from the ramp-up of new mines that began production over the last couple of years, Greenstone and Salares Norte. Please note that we have not assumed any contributions from Cobre Panama. First Quantum has stated that they are awaiting formal approval to process stockpiled ore, which would produce approximately 70,000 tonnes of copper and result in stream deliveries to Franco-Nevada of approximately 23 ounces of gold and 265,000 ounces of silver. Timing of deliveries would be dependent on when formal approval is received. Also on the slide, we provided guidance for depletion, tax and funding commitments.

Slide 12 illustrates our outlook for 2030, which is 555,000 to 615,000 GEOs sold. Main contributors will be contributions from new mines, Stibnite Gold, Copper World, Eskay Creek, Cascabel and Taca Taca. Contributions from expansions that are either underway or planned Antapaccay/

Coroccohuayco, Magino, Detour Lake and Castle Mountain. We do anticipate a step-down in deliveries at Candelaria in the second half of 2027 and at Antapaccay in the second half of 2028. For the energy assets, we've assumed an increase in production over the next 5 years, resulting in an increase in GEOs, but have kept commodity prices flat at $70 a barrel WTI and $3 Mcf natural gas. Overall, when you look at the outlook for GEOs sold, the company has approximately 13% built-in organic growth from '25 to 2030 at budgeted commodity prices, excluding Cobre Panama.

Cobre Panama is a large growth driver if the mine were to restart. Should production restart, there's the potential for maturely higher GEOs depending on the conditions of the restart. Based on the average of the next 5 years of the Cobre Panama mine plan, the stream could contribute between 150,000 to 175,000 GEOs to Franco-Nevada per year. With Cobre Panama restart, the company has approximately 45% built-in growth to 2030. As we look past 2030, Franco-Nevada has a very deep portfolio of assets that should begin to contribute meaningfully over time.

I won't go into the specific details as shown on Slide 13, but overall, these assets have the potential to generate over 220,000 GEOs to Franco-Nevada over time. Each asset is at different stage of development. And when looking at this group of assets as a whole, they contain approximately 6 million measured and indicated and 1.7 million inferred royalty ounces. Our royalty ounce is net of any cost such as stream costs, so it represents a 100% cash flow to Franco-Nevada before taxes. But even beyond that, we have not included any upside from over 230 exploration assets which provide additional optionality and in this price environment, we are seeing exploration drilling increasing on our lands. We look forward to seeing what positive news is released on some of these options over time. And with that, I will pass it over to Eaun, who will highlight the recent new additions to the portfolio.

Thank you, Sandip. It's been an exciting year so far as we've delivered meaningful growth with several large acquisitions in key gold mining districts. This growth has come at a low cost per ounce of resource, which Paul highlighted earlier. Starting with our Casa Berardi stream, we were delighted to support Paddy Downey and his team and the acquisition of this established producer in Quebec. We have confidence in Paddy and his team to execute their plans, and in particular, are excited by the increased exploration the property will now receive. For too long, this project has been underloved. With an extensive land package and deep cover, our team sees great promise to extend mine life at increased grades. Similar to our investment with Discovery, we see focused management as key to the success of this mine and is now in place, so the future should be bright.

We're also excited to have completed the financing with i-80 in February. This is the third financing we've completed with Richard Young and his team speaking to the strength of that relationship. We structured this royalty to dovetail the company's growth plans with a step up to 3% in 2031. The royalty covers all of the precious metals assets and over 200 square kilometers of key gold trends in Nevada, our name sake. We'll see cash flow starting immediately with Granite Creek, expanding with our committees and ramping up with the development of Mineral Point, which we envisage as a large-scale project. A significant portion of the financing is earmarked for acceleration of development in all 3.

Finally, I'd like to briefly touch on our first sizable acquisition in Australia for some time, the Bullabulling royalty. We historically have held a royalty on a portion of the deposit but with the renewed focus on the asset by Minerals 260, we quickly realized the larger potential of this project, which is a short distance from Kalgoorlie, a key gold producing region. We're delighted as Paul said, to be working with Tim Goyder and Luke McFadyen, who lead the team at Minerals 260.

We expect the PFS in the next few months, which should better define the project parameters for the market. The expanded resource has already been published, but extensive drilling has since been completed and will continue. Given the brownfield nature of the project in a well-established historical mining area, we see a rapid path to production with meaningful contribution to our Australian business. To conclude, I would highlight that we're debt-free with significant cash flow generation, which positions us well for continued acquisitive growth. With that, I'll hand it over to the operator for any questions.

[Operator Instructions] First question comes from Josh Wolfson with RBC Capital Markets.

First question is just on South Arturo. Very strong results in the fourth quarter. I'm wondering if you can provide any more information on expectations for 2026 and if that's assumed as well for 2030.

Josh, Sandip here. Yes, no, South Arturo was very strong performer in the quarter. They are mining the open pit ahead of schedule. It's going to carry on into 2026. So 2026 should be a strong year. And what we've seen in the first part of this year, it is occurring. But starting in 2027, we do see it falling back off. So it's really a 2026 benefit with minimal for 2030.

Okay. And then the minimum deliveries still apply for 2027, correct?

Yes, correct.

For Cascabel, a couple of questions there. I mean, first is for the stream buyback, should we assume that, that -- assuming the gold payable that's going to be received, should we assume that that's reflected in production for guidance? And then similarly for 2030, is there any additional disclosure the team can provide in terms of what the production volumes are there?

Sure. So for the buyback on the stream, we are receiving ounces. Those ounces are not included in our guidance at this stage. We have been notified they will be delivering GEOs for the roughly $40 million buyback that's been calculated. But as I said, it's not in our guidance. We're still working on how to account for that buyback. And as we decide that we'll provide additional disclosure. As per 2030 Cascabel mine start is in our outlook, and it's probably a range between 15,000 to 20,000 GEOs.

All right. And then one last question. Just on Musslewhite. Very strong quarter they reported previously by the operator. It looks like the NPI didn't pay out as high as expected. Is that something we should expect to occur, I guess, as a true-up in 2026? Or is there something more we should be aware about?

So yes, Orla did report very strong Q4. We do not have an estimate of the NPI at this stage. And as you know, one of the major deductions is capital and so we made an accrual. Once we get the actual number from Orla, we will make an adjustment. In all likelihood, there will be a true-up but as to the quantum unknown at this time.

The next question comes from Larry Liu with CIBC.

Paul, Sandip and Eaun, I guess my first question would be on energy prices. So if we look at the 2026 guidance, oil is calculated using $70 a barrel. Because of recent events, we've seen the oil price strengthen. So I'm wondering if you can give us a little more sensitivity around how that would impact Franco-Nevada. As you know, Franco is one of few, if not the only company -- royalty company that has exposure to energy.

Sure, Larry. So you're correct, we used $70 per barrel WTI in preparing our guidance, a $5 increase in the WTI price is essentially a 7% increase in energy revenue.

Sounds good. And I guess on a similar topic, now that we're looking more towards unlocking value of the portfolio, I kind of want to ask about Cobre Panama. So from that perspective, I'm wondering what's the next step after the environmental audit conclude? When should we expect a potential decision from the government? Is that something you can share with us? And how long does it take to -- for the assets ramp up and deliveries to restart for Franco?

Thanks for the question. The best information that's out there was the government themselves, President Mulino saying his target is the summit to try and have a resolution on the issue. So hopeful that something can be achieved in that sort of time line. In terms of a ramp-up, the -- my understanding is the -- once you've got a go decision that it would be roughly 6 months to get to 50% of production and 12 months to get to about 90%. Although the -- if the company is allowed to go ahead with the processing of stockpiles, that does allow them to operationalize. They're already increasing their workforce. It would allow them to start at least one of the trains, the mill trains. So I expect that could accelerate the ramp-up time line.

Perfect. Sounds good, Paul. I guess I have just one last question, if that's okay, is I want to ask about the balance sheet. So Franco currently holds about $1.1 billion in publicly traded equity investments, and that's a significant increase from just $770 million in Q3. So I'm wondering what would be strategic positioning for the public traded equity investments? Could that be a potential source of liquidity? How should we look at it?

So the large part of those equities are shares that we obtained in supporting GMIN and Discovery Silver. We are -- our intent is to be their financial backers. I want the market to know that we're in those stories. So we intend to be long-term holders of their stock. But at the same time, we are -- if there are good opportunities, if we have got good returns, there is the potential that we'll take some money off the table. But we are long-term investors. And so principally, that is to realize the value that we think both teams can add in their companies.

The next question comes from Heiko Ihle with H.C. Wainwright.

I'm going to follow up with one of the last questions that was asked. I mean the oil segment, we're 3 weeks away from Q1 being over. Do you have a year-to-date figure of cash receipts? And also, I'm cognizant the high prices didn't really start until a couple of weeks ago or really just 2 weeks ago. But maybe a bit of color of what number we should be modeling out for the full quarter?

Heiko, Sandip here, you're right that this event is recent. I do not have a number off the top of my head. If anything, the real benefit to this, if this carries on, will be a Q2 event for us. And as part of our Q1 results, we'll provide additional color as to sensitivities, et cetera.

You wouldn't be willing to give us a quarter-to-date guesstimate on receipts, though, would you?

Not right now, no.

Okay. Fair enough. And then just thinking out loud, I mean, like now there's talk about mines getting put into the straight and just geopolitical risk factors are lowering even more so than they have been over the past couple of years. Just maybe a bit of color on where internally you move your discount rates and your risk-based premiums for acquisitions that you're thinking and willing to make?

That would be a long answer to that question. Other than that, I think you -- the main point you make is a very good point is the -- we're seeing deglobalization. We've seen the world breaking into trade blocks and now you have an added dispute on top of that. It does raise risk globally. We try to be a low-risk way to invest in this business. We need to have most of our assets in good jurisdictions. We're very glad that, that is the case. Very glad that in terms of the recent deals over the last number of years, most of that has been in Canada, the U.S. and Australia. We think those are super jurisdictions. We will continue to do deals that are across the board, but we do like having most of the assets in good jurisdictions. And obviously, when you're going into jurisdictions when there's more risk, you've got to think about the discount rate. You've got to think about the size of capital that you're putting at risk. But in particular, we think about the payback and you want to make sure if there is a bit more jurisdictional risk that you're getting a faster payback.

The next question comes from Tanya Jakusconek with Scotiabank.

First one, I'm going to start with Sandip on just how you're going to be showing guidance. I understand that you put out your commodity pricing, and that's what you're going to use for the year. So when you report, should I be thinking that the GEOs that you're going to be reporting every quarter would be exactly on those commodity prices you've outlined, but your revenue is actually going to be on what was realized per quarter. I'm just trying to understand how you're going to show it.

That's correct, Tanya. Revenue will be realized at the actual prices for the period, but the GEO calculation against the guidance will be based on the prices that we've disclosed as part of our guidance disclosure.

Okay. Got it. So those 2 numbers will be quite different. Will you disclose both or just the one?

To be determined. We are having those discussions.

So my next question then is going to go back to the guidance. And I want to go back to 2030 because we were quite off on 2030. So I'm trying to understand if it's possible for you, would you be able to take that guidance range and break that out to what is gold in that 2030 guidance, what is silver and what's the other diversified?

I think we would break it out just between precious metals and diversified, but I can give you a call after and can give you some color.

Okay. And then in that guidance as well, you gave us what the contribution from Cascabel would be. I don't have the new deposit coming in at Antapaccay. Would you happen to know how much is in there as well? And then is this new Australian Bullabulling in there in your 2030 guidance as well?

So I don't have the Antapaccay/Coroccohuayco number in front of me. Bullabulling is in there, but it's minimal ounces in 2030.

Okay. That's very helpful. And then I'm just trying to understand also, maybe Eaun wants to take this one just on the environment that you're in because it's moving quite fast these commodity prices. So maybe just an idea of what you're seeing out there. Any opportunities for you to double down on areas of investments that you already have exposure to. And then obviously, we saw the big Wheaton transaction on Antamina, so trying to understand how many other big ones are out there in that space that you're also seeing?

Thank you, Tanya, for the question. I would say, overall, it remains a very robust deal environment as you've seen a number of transactions. We're very proud of the deals that we got done year-to-date. My expectation is you'll continue to see similar kind of deal environment to what we've seen over the last 2 years despite the changes to prices just based on what we're seeing at the moment. What I'm very excited about is given the deal that we've done in Australia, the deal that BHP did, I think the streaming market is very much in consideration by CFOs in the mining industry at the moment, and that should drive further activity going forward. So I'm quite hopeful on that front.

And what is the size of the deal environment you're seeing because obviously you can run that truck through the $0 billion to $4.3 billion. But most -- what are most that you're seeing? Are we still in that $100 million to $300 million or $100 million to $500 million? I'm just trying to understand what the majority are separate from these big ones.

Yes, Tanya, unfortunately, it's really hard to handicap. I would say at the moment, you're going to see a range, similar sizes to what has taken place. So for the last year or so, that's what I would expect in the market going forward. So there are larger transactions and smaller transactions. We'll see what actually crosses the finish line.

And is your focus mainly on precious metals right now? Or are there opportunities in other metals as well?

That really hasn't changed. We remain open to investments outside of precious metals, but precious metals make up the majority of what's in the pipeline at the moment.

There are no further questions on the phone line. I will now turn the Q&A session back over to Candida Hayden, who will take questions from the webcast.

Thank you, Joanna. Our first question comes from Bernie Picchi from Palisade Capital.

Based on the recent transactions or investments in Canada, U.S. ( Nevada ) and Australia, it would seem that you may have made a strategic decision to focus on OECD-type host countries, developed countries. Is this just a coincidence or happy occurrence or deliberate?

As I mentioned earlier on in terms of how we think about the portfolio, it's -- make sure that most of the assets are in great mining jurisdictions, we're blessed. The -- a lot of our assets are in Canada, U.S., Australia, but also in Chile, Peru, Mexico, Brazil. These are all great mining countries. We continue to invest in all of them. So it is the -- yes, what we've done does reflect our strategy. It is a happy coincidence that all our last deals are in Canada, U.S. and Australia, it is a happy coincidence.

Thank you, Paul. There are no further questions from the webcast. This concludes our 2025 year-end results conference call and webcast. We will host our Investor Day on Wednesday, April 8, 2026, the in-person presentation will be hosted at the Lumi Experience Center in Toronto at 2:00 p.m. Eastern Time. The presentation will also be available to view virtually. Details will be available on our website. We expect to release our first quarter 2026 results after market close on May 12, with the conference call held the following morning. Thank you for your interest in Franco-Nevada.

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

Good morning, and welcome to Franco-Nevada Corporation's Third Quarter 2025 Results Conference Call. This call is being recorded on November 4, 2025. [Operator Instructions]

I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations. Thank you. Please go ahead.

Thank you, Ina. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's Third Quarter 2025 Results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results.

During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q&A period. Our full executive team is available to answer any questions.

We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on Slide 2 of this presentation.

I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

Thank you, Candida, and good day to all. For the third time this year, we're announcing record quarterly results. The new benchmark set this quarter were driven by high gold prices, strong operations, new acquisitions and the sale of Cobre Panama stockpiles.

Over the last 18 months, we've made 6 acquisitions of meaningful new gold interests. Yanacocha, Cascabel, Sibanye's Western Limb, Porcupine, Côté and Arthur, all large ore bodies that will contribute to our growth for many decades. Of the 6 Porcupine, Yanacocha and Western Limb are also producing. That will impact our 5-year growth and have boosted our gold price exposure. 85% of our revenue was from precious metals in the quarter.

The last of the acquisitions in July this year was a royalty on the Arthur Gold project in Nevada, operated by AngloGold. We did draw on our corporate revolver to fund the acquisition with our strong cash flow generation and the proceeds from equity sales, the company was once again debt-free by quarter end.

During the quarter, we saw progress on the ground at Cobre Panama, completion of the concentrate shipments, pre-commissioning of the power plant for restart with the aim to provide power to the Panamanian grid, and formal notice to SGS to commence the environmental audit work.

Perhaps just as important, we're encouraged by the recent constructive comments by the President of Panama towards resolution of the Cobre mine closure. If Cobre does come back online and with the contributions from our recent acquisitions, we're positioned for roughly 50% growth in GEOs over 5 years compared to last year. For the long-term assets we've added, we can then maintain that level of production for many years thereafter.

Our deal pipeline remains very active. Although with this run-up in gold prices, we're also expecting good organic growth. With roughly half our revenue coming from principal gold assets, we expect this to be a powerful driver. Operators have strong cash flow for mine expansions, some ongoing by Detour and others now planned at Côté, Magino and Valentine.

Developers have been able to raise capital for new builds, in particular, Skeena and Perpetua were both successful tapping the equity markets to ensure that they can advance Eskay Creek and Stibnite Gold. And the drills are turning on our large portfolio of exploration stage royalties. Recognition of the importance of critical minerals has also unlocked a number of permitting processes, giving the green light to construction to Copper World and Stibnite Gold. Castle Mountain is also now included in the U.S. FAST-41 permitting process.

On that same note, I've been impressed to see the profile that the Ring of Fire is getting in the Ontario government's Critical Mineral Strategy. In the last few years, we've added new avenue to grow our company. That is finding good teams and good projects and not just providing royalty or stream financing, but being their financial banker.

The first was G Mining Ventures with Tocantinzinho and the second, the discovery team with Porcupine. Both are best-in-class and are proving to be highly successful. We are delighted to have played a role in their success. We're looking forward to supporting them going forward and to find other strong teams to bank.

With that, I'll hand the call over to Sandip to discuss the quarter.

Thanks, Paul. Good day, everyone. As Paul mentioned, Franco-Nevada reported record financial results for the third quarter ended September 30, 2025. Our diverse portfolio of royalty and stream assets performed ahead of recent expectations, and we continue to benefit from higher precious metal prices.

Precious metal prices with gold in particular, continue to be strong. On Slide 4, you will see the comparison of commodity prices for Q3 2025 and Q3 2024. Gold and silver prices increased significantly year-over-year with the average gold price higher by 40% in the quarter and average silver price higher by 34%. We also saw a rebound in prices for platinum and palladium, while prices for iron ore remained flat year-over-year, lower for oil, but we saw a significant increase in natural gas prices year-over-year.

On Slide 5, we highlight some of the key financial metrics used to measure performance, total GEOs sold, net GEOs sold, revenue and adjusted EBITDA. Total GEOs sold increased 26% to 138,772 in the quarter compared to 110,110 in third quarter 2024. Precious metal GEOs sold in the quarter were 119,109, higher by 41% compared to prior year. Also, just under 50% of total GEOs sold were sourced directly from mines where precious metals are the primary commodity.

For the quarter, we received strong contributions from a number of our key assets, Cobre Panama, Guadalupe and Candelaria, and we also benefited from our recent acquisitions, Western Limb, Yanacocha, Porcupine and Côté. This quarter, we recorded our first full quarter of revenue for both Porcupine and Côté. Approximately 11,000 GEOs were delivered and sold from Cobre Panama as we received GEOs related to the concentrate that had been stored on site since November 2023.

In addition to better performance from Guadalupe and Candelaria and receiving GEOs from recent acquisitions, we also benefited from the continued ramp-up of operations at new mines, Tocantinzinho, Greenstone and Salares Norte. With respect to the Hemlo NPI, the NPI was not as strong this quarter compared to earlier quarters this year due to lower production on Franco's Interlake claims on the property. Barrick is in the process of selling Hemlo, and we look forward to seeing what improvements the new team has planned for the mine.

Diversified GEOs sold were 19,663 for the quarter compared to 25,733 for prior year despite diversified revenue being higher year-over-year, $67.1 million versus $61.2 million. The GEO sold reduction is due to the impact of higher gold prices when converting revenue to GEOs.

For Q3 2025, net GEOs were 125,115 for Franco compared to 97,232 in Q3 2024. Net GEOs removes the cost of sales component for all GEOs so that GEOs sold are represented after cost. As you know, royalty GEOs are higher margin than stream GEOs.

As you can see from the chart, total revenue increased by 77% for the quarter to $487.7 million, which is a record for Franco-Nevada. Precious metals accounted for 85% of revenue. Adjusted EBITDA, also a record, was 81% higher for the quarter at $427.3 million compared to $236.2 million in third quarter of 2024.

Slide 6 details the key financial metrics reported by the company. As mentioned, total GEOs sold were 138,772, generating $487.7 million in revenue in the third quarter. With respect to costs, we did have an increase in cost of sales compared to prior year due to higher stream ounces sold, particularly Cobre Panama. Cost of sales was $47.2 million versus $31.9 million last year.

Depletion increased to $87 million versus $54.2 million as we received more GEOs from Candelaria, Cobre Panama and began depleting our recent transactions. This impacted depletion as those assets are currently higher per ounce depletion assets.

Adjusted net income was $275 million or $1.43 per share for the quarter, both up 79% versus prior year. One other transaction that did occur during the quarter was the sale of some equity investments. We sold a portion of our equity investment in Discovery Silver and received total proceeds of $84.4 million with a gain of $67.4 million recorded on the sale. Under our accounting policies, these gains are reported in other comprehensive income and not reflected in our earnings per share. However, the gain would have generated an additional earnings per share of $0.30.

Slide 7 highlights the continued diversification of the portfolio. As mentioned, 85% of our revenue was generated by precious metals, with revenue being sourced 88% from the Americas. No asset contributed more than 10% of our revenue.

Slide 8 illustrates the strength of our business model to continue to generate high margins. For third quarter 2025, the cash cost per GEO is $340 per GEO. This compares to $290 per GEO last year. As the gold price has risen, Franco has seen a significant increase in our margin per GEO. Margin was $3,116 per GEO in the quarter, an increase of 42% year-over-year.

Slide 9 summarizes our updated guidance. We have benefited from an increase in GEOs from Cobre Panama and Côté during the first 9 months of 2025. That along with record gold prices has resulted in record financial results for the first 9 months. Based on GEOs sold to date and what our expectations are for Q4 2025, we expect to be at the higher end of our initial guidance range, which was 465,000 to 525,000. We've narrowed this range to the higher end and now expect total GEOs sold to be between 495,000 to 525,000.

With respect to precious metals GEO sold guidance, our original guidance range was 385,000 to 425,000. With asset performance to date and precious metal GEOs received from Cobre Panama and Côté, we now expect to exceed the top end of the original guidance range. As a result, our updated guidance range for precious metal GEOs is 420,000 to 440,000.

Slide 10 summarizes the financial resources available to the company. The company had $236.7 million in cash and cash equivalents on hand at the end of the quarter. When including our credit facility of approximately $1 billion and our equity investments, total available capital at September 30, 2025, is in excess of $1.8 billion. As well, we continue to be debt free.

And before I turn it over to the operator, I would just like to summarize the recent CRA Settlement that we achieved. On September 11, 2025, we reached a settlement with the Canada Revenue Agency, which provided for a final resolution of Franco-Nevada's tax dispute in connection with the reassessments under transfer pricing rules for the years 2013 to 2019 for our Mexican and Barbadian subsidiaries. Under the terms of the settlement, no payment of any tax in Canada is required on these foreign earnings for the subsidiaries for this period. We're glad to have this matter behind us and are very pleased with the settlement reached.

And with that, I will pass it over to the operator, and we're happy to answer any questions.

[Operator Instructions] And your first question comes from the line of Fahad Tariq from Jefferies.

On the deal pipeline, can you talk a little bit more about the commodity focus? There were some articles recently talking about maybe expanding the gold business in Australia specifically. But at the same time, I know historically, Franco's strategy has been to try to be as countercyclical as possible. So just curious what the commodity focus is given where gold prices are today?

Fahad, it's Paul. Thanks for the question. It's a good one. As usual, our #1 commodity focus is on precious metals here. The pipeline is good. So I think there's some good prospects of adding more gold deals. That said, gold prices are high. I think we are better positioned than most, 2 reasons. The one that I spoke a bit about in my comments there is in this environment, we expect strong organic growth.

The second is we always have a bit of our business open to diversify it. And so we always have the discipline in this environment, if there are better deals to do on the diversified side, we've got some room to do that. But as I say, most of the pipeline is currently gold.

On Australia, I was down there visiting recently. We and speaking to the number of Australian investors and the press about our plans there, we have added a new person to our team in Australia, Matt Selby out of Perth, who's driving our business development there. We would like to grow our business in Australia. As you know, we have a ton of royalties that cover a huge amount of land in Australia, but it's not yet a big part of our revenue. I think they are particularly good prospects and very keen to find good teams in Australia that we can back and potentially do something similar to what we've done with G Mining or Discovery in the country.

Okay. Great. And maybe just as a follow-up, there were some comments probably now 2 months ago about looking at natural gas, given where natural gas prices were, maybe lithium brine transactions, given where lithium prices are and maybe oil, although the last time, I think Franco-Nevada did the oil royalty was when oil was below $50 a barrel, so we're not quite there yet. Just maybe comments on those 3 commodities specifically.

We're open to all 3. The -- as I said, right now, as we look at what is ahead of us in the pipeline, the most actionable is on the gold side. But we're -- on the other commodities, it's less driven by the commodities. It's more driven by asset quality and being able to get good value. So if there is good value in either of those areas, we'd be open to it.

And your next question comes from the line of Sathish Kasinathan from Bank of America.

This is Sathish on Lawson Winder's team. Just a follow-up on the pipeline. So you highlighted that you have a strong growth potential on the organic side with all the projects that you have under your portfolio. Does that mean that going forward, the focus is going to be more on the organic side instead of deals? Or how should we look at it?

No. As I just said on my last comment, there's a good pipeline. We're always focused on getting new deals done. I make the comment on organic growth really just in respect of discipline. You don't -- the market is bullish. We don't need to overpay for assets in this environment because we know that we're going to have good organic growth. So we know we've got a baseline there. The acquisitions on top of that are incremental. But the confidence that we'll have good organic growth allows us to keep our discipline.

Okay. That is clear. Just one follow-up on Palmarejo. So it had a huge quarter this quarter. It seems it is driven by a higher proportion of ore from the region that is covered by the stream. How should we look at Q4?

It's Sandip here. Yes, I would expect similar levels to what we've averaged for the first 9 months of the year. Our projection for the year is anywhere between 40,000 to 50,000 GEOs from Palmarejo. So that's the guidance at this stage.

And your next question comes from the line of Heiko Ihle from H.C. Wainwright.

This is Case calling in for Heiko as he's on another call. Just on our end, we're thinking out loud here, 3 months ago, gold was just below $3,400. Today, we're just below $4,000. Obviously, a pretty huge change in price, not really expected by most. You guys have been a huge benefactor of this, probably have more cash flows now than you budgeted for in recent past. So the question is, has the recent gold price environment maybe changed your mind a bit in regard to shareholder returns as it relates to the higher dividend, potential share buyback or continued M&A given the pricing environment?

Sure. Really, no, it's business as usual. As Paul highlighted, our priority is to continue to add good quality assets to the portfolio, focus on precious metals and then adding diversified if there's very good opportunities available to us. So that is the #1 priority for capital deployment.

With respect to the dividend, it's a decision we sit down with our Board at the beginning of every year and go through what's in the pipeline, what our cash flow projections are and make a recommendation on how much we should increase that dividend. Our philosophy on the dividend is sustainable and progressive, raise it every year, never be in a position where you cut it regardless of what's happening with commodity prices. So we will be increasing it next year. The quantum is still yet to be determined, but there will definitely be an increase.

As for buybacks, that it comes down to what's the best use of a dollar. And for us, we think the best use of a dollar is still adding good quality assets to the portfolio. So share buybacks is not something that we're considering at this time.

[Operator Instructions] And your next question comes from the line of Cosmos Chiu from CIBC.

This is Cosmos from Cosmos' team at CIBC. Maybe my first question is on the NPIs. Paul and Sandip, as you know, I'd like to ask about these NPIs during periods of more robust precious metal prices. But as you mentioned, Hemlo did not have the best quarter in Q3, in part due to less ore being mined at Interlake. I guess my question is, I'm just wondering how much visibility do you have in terms of what's being mined from the different areas into Q4 and potentially into 2026 as well? And how is the potential change in ownership going to potentially change that thinking?

Cosmos, so in terms of visibility, it's limited. Obviously, there's a mine plan put in place at the beginning of each year and a budget that the operator does. So in this case, Barrick you can move away from that and sometimes based on timing, and that was what's happened in Q3. In this environment at these gold prices, we do expect the NPI to do quite well, and it did in the first part of this year.

I think part of the impact of Q3 was also with the sale going through and just probably some impact to efficiency with the mining on site. With respect to the new ownership group and that transaction has not closed yet, obviously, they're seeing something there to be spending over $1 billion to acquire that asset. So that is encouraging. We -- it's a wait-and-see approach at this time as to what changes or improvements they will make. But we're excited to see what their plan is and what they envision, and I think we'll have more information over the next few months.

And how about the Musselwhite 5% NPI. Again, I'm seeing Q3, it didn't really increase that much from previous quarters in 2025. Like when does that one kick in? How should we look at that one at Musselwhite?

Yes. So Musselwhite is a -- again, it's a profit calculation. We have limited visibility at this time. We get paid once a year, which is after year-end. So right now, what you're seeing from our numbers is just an estimate. We haven't seen what capital is being spent. We'll get the calculation, as I said, post year-end, and there'll be a true-up there. We're a conservative group. So our numbers are conservative. So I'm hopeful that the actual number that comes out at the end of the year is much higher. But at this stage, it's our best estimate.

It's early days on both of those assets, Cosmos. But I got to say, delighted with the change in ownership in both. Bob Quartermain and their team. Bob, as you probably know, started his career at Hemlo, drilled some of the original discovery holes there. So having that team in place led by Bob, there's no doubt in my mind that they are going to drill and expand that ore body, which I think is going to do terrifically well for us over time.

Similarly, on Musselwhite, delighted that it's the older team led by Jason Simpson, very capable group, also very aggressive, having great success in drilling out the strike extension of that deposit. So all these things take a little bit of time before it starts showing up as cash flow. But I think very positive that you've got both those teams focused on expanding those assets.

Great. I do agree as well. Maybe switching gears a little bit. I noticed that and as Sandip you mentioned, you sold some -- or the company sold some Discovery shares in the quarter. How much of that was kind of related to your desire to be debt-free by the end of the quarter, especially since you had drawn $175 million on your credit facilities to pay for the Expanded Silicon acquisition. So how much of that was due to you wanting to be debt-free and number one? And number two, what's kind of like the plan now for the remaining Discovery shares or for that matter, your G Mining shares?

Cosmos, it's Paul. The -- so first of all, with G Mining and Discovery, the -- our plan is to be their financial bankers, not just with stream and royalties, but also to be in the equity. So we will be long-term holders. That said, the equity side of our business, as we all know, it's not the core side. So we do plan to take profits over time.

With Discovery, there were a couple of things there. The one is we had very good share price performance. And you're absolutely right. The other part of it was we had some debt outstanding. And so those 2 things together, we sold a small part of our position. We're able to realize a good gain and repay the debt. But we -- but longer term, we will continue to be holders of their stock and supporters of the company.

And then one last question, Western Limb, I saw that it had good results in Q3. And you had mentioned that platinum prices -- PGM prices -- sorry, PGM prices have actually outperformed gold since the acquisition, which is good. But I just want to understand because I know this is a bit of a complicated transaction. And so I know that gold is actually based on PGM production. The delivery is actually pegged to the 4E PGM production. So -- and then you also mentioned in the MD&A that right now, it's 82% and 18% gold versus PGM. And I think the press release that came out earlier this year during the acquisition was 70 and 30. That was a split. So I guess I'm trying to confirm PGM prices have outperformed gold. Does that benefit your stream? And if so, how does it benefit?

Cosmos, it's Eaun speaking. Thank you for the question. I think it's a very good question. I would say, first of all, delighted with the performance of platinum. It has outpaced gold to a certain degree. And we do benefit from that both directly and indirectly. So you'll note that there is a portion of the stream that is platinum. So we do enjoy the appreciation in those platinum revenues immediately.

And then secondarily, you're quite right that what we've done is we've linked the gold deliveries to the 4E PGM production. So as the basket improves, as Sibanye looks at options for the assets, we would benefit indirectly from that as well. And -- as you'll probably know, there are 2 distinct ore bodies in these deposits, the UG2 and the Merensky. And this structure mitigates any risk of volatility for mining from one versus the other for us and provides a more stable stream of gold revenues to Franco. So that's why that was done.

Congrats on a very strong Q3.

And your next question comes from the line of Tanya Jakusconek from Scotia Bank.

I just wanted to come back to the transaction environment in a little more detail. I guess it's divided into 3 sections. I'm going to start on the precious metals opportunities that you're seeing out there. When we last spoke because lots of things have happened with this rapid rise in the gold price, the opportunities were in the $100 million to $500 million range. I'm trying to understand if that's still what you're seeing out there. And is it still for funding of asset sales or still funding for asset builds? I'm just wondering if that has changed at all? And are you seeing more competition now in the market with Zijin coming in and other players? And are you finding it's taking longer to get deals done? That's my first question on the precious metals.

Okay. Thank you, Tanya. It's Eaun speaking again. It's a very good question. When we last spoke, I indicated a similar environment to what we had seen in prior quarters. And I would reiterate that, that continues to be the case. In terms of deal size, certainly, and also in terms of the type of transaction. So we do see good opportunities in asset sales as likely over the coming quarters.

Likewise, good potential project financings as well. And I think those are 2 kind of legs of the stool, and we look to back teams in both of those types of financings, utilizing similar structures to what we would have done with Discovery or G Mining. So we're quite optimistic about more of those transactions as we move forward. There are also some high-quality third-party royalties that are out there, and we continue to look at those and selectively execute on transactions like that when they come available. Hopefully, that's helpful.

And are you finding that there is more competition and taking longer to complete deals with this higher gold price? I'm just trying to understand on how tight that market is?

Sure. I would say not a noticeable change in the competitive landscape really from my perspective. What has defined recent period is volatility, volatility in prices and volatility in terms of a number of other factors at play in the market. And as things kind of settle down and find more of a base, I think we'll see more transactions happen. And when you have significant moves in metal prices, of course, for any type of transaction on the short term, it makes it a bit more difficult to execute. But I think we'll see hopefully some more stability as we move forward.

Okay. Thank you Eaun for that on the precious metal side. On the nonprecious metal side, I know we talked about lithium and natural gas and oil. So I wanted to ask whether that extends to also iron ore, if that's still something you're looking at? And also what's the size in a nonprecious metals deal are you seeing transactions similarly in that $100 million to $500 million range? And does iron ore or maybe potash also fit within that at this point?

So Tanya, Paul, the -- as my comments were earlier on, what we're looking at that's immediately actionable in the pipeline is precious metal focused. We -- but all those commodities that you mentioned there lithium, oil and gas, iron ore, we're open to those if there are transactions with good value. On the potash side, you do know we did it. We were able to acquire an option on the Autazes potash project down in Brazil. So that is -- if and when that project reaches a project financing, we've got the option to buy a royalty on that one. So all of those are our future prospects.

And size-wise, Paul, what are we looking at in those types of transactions?

As I say, they were open in concept to transactions. The -- nothing that I can say is immediate in the pipeline. And -- but you know what our guidance is on diversified. It's a limited part of our portfolio. So I don't expect anything large.

Okay. So under $500 million. Okay. And then maybe just on my third portion of this is, are you -- as you look at the landscape out there, how do you assess corporate transaction vis-a-vis some of these other opportunities?

We always run our pencil over the other companies, Tanya, to see if there is good value. And the -- nothing has changed from what we've said in the past. It comes down to you've got $1 to spend and where are you going to get the best return for your dollar. We typically find that, that is in doing private deals. And I'd say that's where we currently are again.

Okay. And then just maybe if I could ask on the equity interest, I think $625 million of equity investments. Just with the sale of the Discovery Silver, and I don't know what else may have been sold. Can you just kind of remind me, Sandip, what are the biggest portion of that $625 million, Discovery Silver, G Mining, is there anything else that's public?

Sorry, Tanya, Labrador Iron Ore Royalty, LIF. Those are the 3 largest positions.

Okay. So the Labrador is in there as well. Okay. No, that's very good. And congrats on a good quarter.

And your next question comes from the line of John Tumazos from John Tumazos Independent Research.

Could you elaborate on the extra royalty on Gold Quarry buy-in? It's famously discovered over 40 years ago. Is the coverage the underground mining from the feeder zone with the open pit oxide all used up? Or are there more oxides that are economic because gold is $4,000. I'm wondering what the sizzle is there.

John, it's Eaun speaking. Thanks for the question. I'd say, first of all, we're very happy to add to our position on Gold Quarry. This is incremental to what we already have there. And so in reality, this royalty is structured with a minimum, which is based on a number of factors, one of which is the amount of reserves.

So as those change based on a number of assumptions, one of which often would, of course, be gold price, that can trigger a change in the minimums. So in terms of what makes it attractive to us, there's that potential for sure. And I think as well, based on the current level of payments, it provides a very healthy rate of return. So very pleased to add that and the coverage is the same as set out for the existing royalty in the asset handbook, which I would have you referred to.

And John, there's a pushback of the pit wall to the north and the east that's been contemplated over time, not something that's currently on the books, but the hopes and dreams are with high gold prices that, that is something that would go ahead and that we could get a lot more from that royalty.

If I could ask one more. On Discovery, the quick calculation I made was that you sold 27.8 million shares and had 52.2 million left and that you received USD 3.04 per share. Is that about right?

So John, we sold 26 million shares.

So you got a little more for it.

And your next question comes from the line of Daniel Major from UBS.

Can you hear me okay?

Yes, loud and clear.

Yes, my first one, apologies, I was slightly late joining the call if it's already been asked. But just the first one on Cobre Panama and from a, I guess, significantly involved party, but not directly at the table. I mean when you look at the catalysts that need to occur to trigger a restart the environmental audit, the renegotiation of fiscal terms, remobilizing the workforce, et cetera, what do you think kind of feels most likely to be the bottleneck in the process? And I heard the -- some commentary out of Argentina that there's still a belief that the environmental audit and the fiscal terms can be negotiated by the end of the year. Do you think that's realistic?

That is -- Daniel, that's the time line that President Mulino had put out there as his objective. These things can always take longer, but they've been consistent on saying that is what they're aiming for. The audit is underway. There are no formal negotiations at this stage, although I know the company and the government have engaged in getting set for that. So it is -- I think it's still possible that, that kind of time line gets met.

We're encouraged by -- you probably would have seen the recent press comments by President Mulino, also comments by Tristan Pascall on acknowledging that the state would remain the owner of the minerals. And agreement on trying to negotiate on that basis. So I take that as a strong positive. The government comments is that, that has been received well. So I think that news is positive.

The other positive news has been coming out of country is just the shift in sentiments where you saw 70%, 80% of folks post protest were anti-mining in any form, and that has shifted to a slight majority now that are open and also a good amount that I think would be supportive under the right terms, the right participation for the government of Panama, the right amount of transparency.

So I think things are definitely trending in the right direction. As we mentioned, there is movement on the ground with the government approving the various aspects of preservation and safe maintenance, the shipping of the concentrate, the power plant. The company has been rehiring folks so that they can start some of those activities. They've had a very strong response, a lot of folks looking to acquire those jobs. And I think that has also helped shift sentiment as people realize the value of the mine to the economy.

Okay. The second one on the Arthur Gold project. I mean, how do you see the initial scope of the project? And obviously, we've seen some initial kind of projections, et cetera. But I mean, yes, from your perspective, how do you envisage the time line and the initial scope of the project if you have to kind of hazard a range of expectations?

Thank you, Daniel. It's Eaun Gray speaking here. First of all, we're thrilled to be involved in this project with AngloGold. We think the geological upside on the royalty grounds over time is phenomenal. In terms of first steps in permitting, I understand that they need to start somewhere, even though the full deposit, in our view, likely hasn't emerged. So they -- I think AngloGold's disclosure is around Merlin-focused plan to start and then exploration, hopefully continuing from there.

We have also been very happy to see the U.S. permitting environment has evolved quite positively over the last little while and projects such as Stibnite where we're involved have moved along quite well. So in terms of permitting, we're hopeful on the time frame as to when that when that can happen. I think there's got to be a significant over-under in exactly when that happens with any regulatory process, but we're hopeful that the mine would start in the early portion of the 2030s.

And your next question comes from the line of Derick Ma from TD Cowen.

At current gold prices, is there more leverage in royalties and streams on primary gold mines versus byproduct gold streams? And does that factor into the way you look at your portfolio, or your decision-making when assessing new opportunities?

Good question, Derick. And yes, is the short answer. Obviously, when the gold price is running on a primary gold deposit, the -- it allows operators when they look at their reserves, and that's kind of -- I think a lot of operators are looking at the reserves right now to figure out what price are they going to use at year-end. I think at the end of last year, the average for the industry was about $1,800 an ounce. I'm guessing at this, but I think the industry will be over $2,000 an ounce for the gold reserves. It means lower cutoff grades, and it means a lot of material that's going to move into the mine plan.

Put that forward just a couple of years, let's just assume we're at $4,000 gold in 3 years' time. You could easily see the industry at [ '26, '28 ], $3,000 gold for reserves. So even if the gold price stayed flat in that scenario, our stock price would be worth a lot more because you get a huge amount of ounces that get moved into reserves.

And so that's -- on our portfolio, about half the assets are gold streams on copper mines. Half the assets are royalties on principal gold assets. So I think that's a big driver. On the other side, copper prices are doing great, too. So the same thing applies for a copper asset, higher copper prices, you'll get a lot more material moved into those mine plans. So on both sides, I think we should see great organic growth.

Okay. Great. And maybe a question on Argentina. Two of your longer-term growth assets that you've listed, Taca Taca and San Jorge are in Argentina, midterm elections are behind us now. What are your current views on Argentina as a mining jurisdiction and as an investment destination for Franco-Nevada going forward? And then maybe a follow-up on top of that is how many GEOs for Taca Taca and San Jorge are in your 2029 outlook?

Yes. Maybe I'll just speak about the assets and then Sandip can comment on the guidance. The San Jorge is a, I'd call it, a midsized but good grade copper gold asset in Mendoza. The company tried to get a permit probably more than a decade ago, didn't quite get there at the time. Things have changed materially. In meetings early this year, I met with the Governor for Natural Resources in Mendoza, and she was very encouraging saying, San Jorge could be the very first of the assets to move ahead under the new RIGI program. So we're very encouraged by that. No, the company is working on raising financing to move that forward.

Next up, Taca Taca. We're very hopeful that, that is the next big copper asset that First Quantum will build. I think as we all know, RIGI is a 2-year window to get your applications in, and we're a year into that. So there's another 12 months to get that application in and then companies need to start spending and their minimum spends over the next 2 years. So I think this is highly likely that you'll see spending going ahead on Taca Taca in the short term.

For Argentina, we don't need to invest anything on those assets. We already own those interests. So that will happen regardless. For Argentina, it is the big question. Huge amount of assets there that are going to attract a lot of investment dollars. So we will consider Argentina. The -- what has been put forward in RIGI is very positive. It addresses the 2 big issues you have. The one is currency convertibility. That does get guaranteed if you enter into the RIGI program. And then the second thing is to make sure that it has teeth that survives through multiple regimes, you do need rights to international arbitration and RIGI does afford that, too. So both those things go a long way to making Argentina an attractive destination.

And Derick, just in terms of the 2029 guidance for those 2 assets, obviously, they still have to be built. So we were conservative in our estimates, but on a combined basis, it's about 5,000 GEOs.

[Operator Instructions] There are no further questions on the phone line. I will now turn the conference over to Candida Hayden for any closing remarks.

This concludes our third quarter 2025 results conference call. We expect to release our year-end 2025 results after market close on March 10. Thank you for your interest in Franco-Nevada. Goodbye.

And this concludes today's call. Thank you for participating. You may all disconnect.

Good morning, and welcome to Franco-Nevada Corporation's Second Quarter 2025 Results Conference Call and Webcast. This call is being recorded on August 11, 2025. [Operator Instructions]

I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations. Please go ahead.

Thank you, Joanna. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's Second Quarter 2025 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results. The presentation is also available to you on the webcast.

During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q&A period. Our full executive team is available to answer any questions. Participants may submit questions by telephone or via webcast.

We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on Slide 2 of this presentation.

I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

Thank you, Candida, and good morning, all. For Q1 this year, we announced record financial results, and now for Q2, we're surpassing those with new records. Our portfolio largely produced as expected for the quarter and high gold prices drove record revenue, operating cash flow, adjusted-EBITDA margins and earnings. We also saw constructive developments in Panama, including approval of the preservation and safe maintenance plan, and shipment of the remaining copper concentrate from Cobre Panama.

Sentiment in Country continues to shift in favor of a restart of the operation, and I'm encouraged by Panamanian government's continued commitment to resolving the situation. We have attractive growth over the next 5 years from our existing portfolio, in particular, will be big beneficiaries of the move to unlock mine permitting process in the U.S. 3 projects in our outlook are now moving ahead. Perpetua's Stibinte Gold, Hudbay's Copper World, And the news this morning that the Castle Mountain has been included in the FAST-41 permitting process. One project that's potentially new to our 5-year outlook is Cascabel. The new management team at SolGold has been starting approaches to accelerate production and is now indicating first production may occur as soon as 2028. One longer-term development is worth noting. There's been a positive shift in relations with the Chukotun First Nation at new prosperity. You may recall that Franco has a stream financing agreement to acquire a 22% pool stream. This could be a very meaningful growth driver for Franco if the Chukotun decide to support mine development. During the quarter, we acquired a royalty on IAMGOLD's’ Cote Gold Mine, 1 of Canada's newest large-scale gold mines, and we're off to a good start [indiscernible] since our acquisition, IAMGOLD's’ Cote Gold achieved nameplate throughput ahead of schedule and positive grade reconciliation. Cote and Gosselin had 16 million ounces of M&I and more than 12 million ounces of inferred resources. IAMGOLD's’ targeting more than 20 million ounces of M&I and an updated resource is expected in the first half of 2026. The current mill is on the size for that scale of resource and IAMGOLD's’ planning to publish an updated technical report in 2026 with expansion scenarios. Our team believes something in the order of 20 million tonnes per annum of throughput would be better suited to the size of the ore body.

Post quarter end, we acquired a royalty on AngloGold's Arthur project comprised of the Merlin and Silicon deposits, which together form one of the largest oil discoveries in recent years in Nevada. AngloGold has rapidly expanded the resources in the last couple of years, and I wouldn't be surprised if the current resource, which stands at 3.4 million ounces indicated and 12.9 million ounce inferred rose at a similar trajectory to Goldstrike or Cortez in their heyday. Since our acquisition, AngloGold has announced a transaction to further consolidate the district and is pointed to ongoing high-grade drilling success. The Merlin initial assessment outlines the first number of years of production at 1 million ounces per annum. And if more high-grade is found, that production rate could be maintained for an extended period. The scale of the operation contemplated is already in the league of Goldstrike and Cortez. The last 2 years have been some of our most productive, adding assets to the portfolio. Last year, we added interest in some of the world's biggest mineral endowments. Newmont's Yanacocha operations in Peru; in Sibanye's PGM operations in the Western Limb of the Bushveld in South Africa; and SolGold's Cascabel Copper Gold development project in Equador.

This year, we've expanded our exposure in Canada and the U.S., adding current production from the Porcupine and Cote operations in Ontario and the Arthur project, as mentioned in our namesake state, Nevada. Combined the acquisition over the last 2 years have transformed our longer-term growth outlook, has the potential of Cobre restart and long-term development of new prosperity, and you have the most exciting growth outlook in the space. The deal pipeline continues to be strong. We've dipped into our corporate revolver to complete the Arthur acquisition, and we're happy to use this facility for transactions -- for the transactions we see ahead of us, with roughly $1.3 billion in annual cash flow generation, we can repay the facility rapidly. With that, I'll pass the call over to Sandip.

Thank you, Paul. Good morning, everyone. As Paul mentioned, Franco-Nevada reported record financial results for second quarter ended June 30, 2025. Our portfolio generally performed in line with expectations, and we continue to benefit from higher precious metal prices. Precious metal prices, with gold in particular, continued to be strong.

On Slide 4, you will see the conversion of commodity prices for Q2 2025 and Q2 2024. Gold and silver prices increased significantly year-over-year, with the average gold price higher by 40% in the quarter and average silver price higher by 17%. We've also seen a rebound in prices for platinum and palladium. Prices for iron ore and oil continue to be volatile and were lower compared to prior year. However, you did see a significant increase in natural gas prices.

On Slide 5, we highlight some of the key metrics used to measure performance. total GEOs sold, net GEOs sold, revenue and adjusted EBITDA. Total GEOs sold increased 2% to 112,093 in the quarter compared to 110,264 in second quarter 2024. Precious metal GEOs sold in the quarter were 92,449, higher by 12% compared to prior year.

For the quarter, we did receive strong contributions from Guadalupe and Candelaria and continue to benefit from the recent acquisitions made at Yanacocha and Western Limb. During the quarter, we recorded our first revenues related to the recently acquired royalties on Porcupine, operated by Discovery Silver and Cote Gold operated by IAMGOLD. We look forward to a full quarter of revenue from these assets in Q3. In addition to the better performance from Guadalupe Candelaria and receiving GEOs from recent acquisitions, we also benefited from continued ramp-up of operations at new mines, Tocantinzinho, Greenstone and Salares Norte.

With respect to the Hemlo NPI, it was another strong quarter, showcasing the leverage of the NPI to higher gold prices. However, the NPI can vary depending on how much production comes from the area covered by our NPI lands.

One asset that was lower than our expectation was Antapaccay, but this was solely due to timing of deliveries. We expect a stronger second half of the year from this asset. Diversified GEOs sold were 19,644 for the quarter compared to 29,914 for prior year quarter despite diversified revenue base slightly lower year-over-year, $62.7 million versus $64.6 million. The GEO sold reduction is due to the impact of higher gold prices when converting diversified revenue to GEOs. As you can see on the chart, total revenue increased 42% for the quarter to $369.4 million, which is a record for Franco-Nevada. Precious metals accounted for 82% of revenue. Adjusted EBITDA, also a record, was 65% higher for the quarter at $365.7 million compared to $221.9 million in second quarter 2024.

Slide 6 details the key financial metrics reported by the company. As mentioned, total GEOs sold were 112,093 generated $369.4 million in record revenue in the quarter. As you know, Franco-Nevada is a royalty and streaming company. For royalties, we typically receive payment in cash. However, for some of our royalties, we do take payment in [ coin ] rather than cash, and have been accumulating the inventory over time. To fund the Cote Gold Royalty acquisition, we liquidated the majority of our inventory position. This resulted in a gain on sale of gold bullion of $42.2 million as the average cost of the gold ounces we sold was approximately $2,350 per ounce. At the end of June, we still have $2,469 gold ounces running in inventory.

With respect to costs, we did have an increase in cost of sales compared to Q2, 2024 due to higher stream ounces sold. Cost of sales was $33.5 million versus $29.1 million last year. Depletion increased to $64 million versus $52.9 million a year ago as we received more GEOs from Candelaria and began completing our recent transactions Yanacocha, Western Limb and Porcupine. This impacted depletion as those assets are currently higher per ounce depletion assets. Adjusted net income was $238.5 million or $1.24 per share for the quarter, both up 65% versus prior year.

Slide 7 highlights the continued diversification of the portfolio. 82% of our Q2 2025 revenue was generated by precious metals, with revenue being sourced 86% from the Americas. And our largest contributor to revenue was Candelaria at 15% for the quarter.

Slide 8 illustrates the strength of our business model to continue to generate high margins. For second quarter 2025, the cash cost per GEO is $299 per GEO. This compares to $264 per GEO in the prior year. As the gold price has risen, Franco-Nevada has seen a significant increase in our margin per GEO. Margin was just shy of $3,000 per GEO in the quarter.

Slide 9 summarizes the financial resources available to the company. The company had $160.3 million in cash and cash equivalents on hand at the end of June, when including our credit facility of $1 billion and our equity investment, total available capital at June 30, 2025, is $1.6 billion. However, in July, we did fund the acquisition of a Royalty and AngloGold's Arthur project in Nevada, as mentioned by Paul, for $250 million in upfront cash. We did draw on our credit facility for $175 million to assist in funding this acquisition. This results in total available capital of approximately $1.35 billion currently. The company continues to remain well capitalized to continue to add long-life, high-quality assets to the portfolio.

And before I turn it over to Joanne to take questions, I would like to remind you of our guidance ranges for the year. Our original guidance was for 465,000 to 525,000 total GEOs for 2025, with 385,000 to 425,000 precious metal GEOs. This was using $2,800 per ounce gold price. By updating price assumptions with current commodity prices, we continue to remain on pace to achieve our total GEOs and precious metals GEO guidance ranges. Also, as mentioned, we will recognize revenue from Cobre Panama in third quarter as the concentrate on site has now been shipped, Franco-Nevada has begun to receive deliveries of gold and silver from Cobre Panama based on our stream agreement. We expect to receive approximately 10,000 GEOs in Q3.

And with that, I will pass it over to Joanna, and we're happy to answer any questions you may have.

[Operator Instructions] First question on the phone is from Fahad Tariq at Jefferies.

On Cobre Panama, can you maybe give some more color on why Franco decided to suspend the arbitration proceeding?

Fahad, it's Paul. The best outcome for us at Cobre Panama and I'd say for First Quantum as well is to see that mine get back into operation. So I think between the First Quantum, the government themselves, we're all like-minded to try and see a positive resolution. 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.

Okay. And then maybe switching gears to corporate development. Given the available capital is now lower, you had some pretty less transactions, particularly Cote. Does that change how you think about GEO's size over the next year or so?

No, I don't think so. The -- 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.

The next question comes from Larry Liu, CIBC.

Congrats on another financially strong quarter. I guess I'll start off my question asking about platinum. Paul earlier, you mentioned that platinum prices have rebound. And last December, Franco did a Sibanye Western Limb acquisition. I'm just wondering what kind of positive impact would that have on the asset? And was that factored in when the acquisition was -- first happened?

Larry, it's Eaun Gray speaking. Thank you for the question. 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. So it increases our confidence in the long term of those assets.

For sure. That makes sense. While I have you as well. I'm going to follow up Fahad and ask about corporate development as well. I know it's been -- there's historical precedent as well for Nevada sometimes take shares in the companies, such as G Mining or Discovery Silver. I'm wondering, how's that -- has that has the strategy changed in an upcoming time with gold prices hitting record high? And I guess second part of that question is, what's the intention of those shares? I see earlier, it's been factored into the potential capital available for further acquisitions?

Thanks for the question. And maybe getting part of it, it's part of a longer-term strategy, and it's -- as a business we compete in auctions to buy streaming assets and royalties. One area of the business we've been trying to develop is to say, how can we be not just transactional, but a financial backer to companies. If we can find great assets, great management teams, that we want to support for the longer term. How can we do that? And so that strategy has played out with G Mining, it's played out with Discovery. We think that for those players, we can differentiate them and be their backer so that we can reduce the financial risk of those companies. And we think in doing that, we can increase their valuations and their ability to be successful over time. so far, that strategy has worked out terrifically. And so we plan to continue both with those players and also there are other teams that fit that mold. We'd love to do more deals in that, but our overall objective is how do we support them as a long-term financial banker.

For sure. Yes. That strategy definitely worked out really well for Franco-Nevada. I guess my last question is focused more around the long-term guidance, if I may. So earlier in the call, Paul, you mentioned that there is a potential upward revision because the Cascabel now could potentially be included in the 5-year guidance. We're wondering if there's any more assets that could potentially be a surprise and included in your future 5-year guidance? And when can we expect an updated 5-year guidance? Would that be next year?

Yes. We always -- we do the guidance in the first part of the year, along with our annual results. So that's when we are updated. The 2 bits of positive news there. Obviously, on Cascabel, looking at scenarios to get things up and running sooner. There's 2 parts to that. The 1 is Tandayama, the open-pit deposit. They've been drilling it up, having good success moving up some high-grade areas. So potentially, that can be early material to the mill. Also looking at scenarios to start with sublevel caving rather than a block cave. I think they're making good progress on both of those, and that's increasing the confidence that they can get it in production sooner. The other good news I mentioned today, it is in our 5-year growth outlook, it's just the certainty of it's going ahead as Castle Mountain. We do have -- we have 2 royalties on that at 2.65% loyalty that covers the whole property. We've got a further 2% royalty that covers 1 of the pits in particular, that hopefully will be at the front end of the mine plan, taking that up to [ 4.65% ], one part of the ore body. It's about a 200,000 ounce per year producer. So it could be a meaningful kicker in the back end of our 5-year guidance.

Perfect. Sounds good. It sounds like there's more upside investors can look for, for sure.

The next question comes from Matthew Murphy at BMO Capital Markets.

Big deal during the quarter on the Cote royalty. Just wondering if you can elaborate a bit on your view on the asset, what gave you the confidence in the due diligence to take on a profits-based royalty? And are you willing to share your views on Cote's path to being a low-cost gold mine?

Thank you, Matthew. It's Eaun Gray, again here. So I guess, first of all, it's worth highlighting that we did work with IAMGOLD on the acquisition. So that gave us unique insight into how it's currently operating and the long term for the asset. And 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. And that's based on being able to actually look at the data with IMGOLD and make that assessment. So we see as a result, fantastic opportunity going forward for the expansion and throughput to suit the scale of the resource, and what is also very exciting is that hopefully, there's some news for you relatively near term on this as well as IMGOLD has identified that they'll be putting out an updated resource in the first half of next year, then hopefully, a technical report identifying some of the production scenarios to follow. So we were able to get a sneak peek into the asset with the fact that were able to uniquely do due diligence with IMGOLD. And that gave us the confidence to transact.

And in terms of the cost profile, it's a good question. This is a new highly automated line with best practices and a team that we see as really first-class led by [indiscernible]. And so as a result, we have a high level of confidence in the costs. And you will note this is a gross margin royalty, so the deductions are fairly limited, and we're able to work again with IMGOLD to craft a form of agreement that we're very happy with. So overall, an extremely exciting opportunity, which we think will add low-risk growth to Franco-Nevada over the long term.

Okay. Also a question just on the quarter. You were a bit higher than expected on GEOs from oil and gas and I guess, Permian was 1 of the drivers. What's the outlook for your Permian asset base back half of the year?

Matthew, it's Jason O'Connell speaking. We were pleasantly surprised by the performance of our Permian assets in the quarter. We had increased volumes over what we've seen last year. Part of that is a result of drilling on our lands. And at times, operators will hit areas of higher royalty rates across our acreage footprint. So we benefited a little bit from that. Going forward, those assets in the Permian are usually fairly reflective of the overall performance of the basin. So it will depend on oil prices and how active drillers are. You'll have seen oil prices have pulled back a little bit in recent months. So I would expect that production levels and drilling activity will likely stay reasonably consistent, perhaps soften slightly with the lower price.

The next question comes from Daniel Major at UBS.

Just first 1 to clarify, Sandip, how much gold did you say still had on the balance sheet in terms of inventory? I didn't quite catch that.

Daniel. So at the end of June, we had 2,469 gold ounces still remain in inventory.

Okay. So quite small. Okay. Yes. And then the second question, just thinking about the guidance. So both the precious metal and the total GEOs is unchanged, yet you added about 20,000 ounces of additional sales that wasn't in the previous guidance from Cote and from Cobre Panama. What's the offset? Because I guess the implied non-gold GEOs is the same even after the change in the gold price assumption from $2,800 to $3,200. So what's the offset in the portfolio that means there's not a net upgrade to the precious metal GEO guidance?

Yes. So I guess the key message there is that without -- even without Cobre Panama and Cote, we're still within the guidance ranges. Anything from Cote and Cobre Panama is all incremental.

Right. So does that mean that all else equal, production is likely to be more skewed to the upper end of the range if you've added 20,000.

Yes, that's a fair assumption.

Got it. Okay. And then the final question, the new Prosperity option, the 22% gold stream, I'm not particularly familiar with this project. Can you give us a bit of a sense of quantum of what the contribution to Franco-Nevada might be?

Prosperity is a -- it's a large copper gold prophyry system in BC, the transaction that we had done was back in 2012. At the time, they were trying to get it permitted. They had received a BC permit, but weren't able to get a federal permit. Part of the issue was that the didn't have support of the Chukotun First Nation at the time. So the project has effectively been parked for many years since then. But the shift that was -- came out in June is they have an agreement with a Chukotun. The ownership of just over 20% of projects is being provided to the Chukotun Nation. The BC government is providing the funding, which is the payment that goes to Taseko for that transfer and the Chukotun will spend the next couple of years in land use planning process to decide how they would like to proceed or not proceed with any project there. Our agreement, if I have it right, it's a 22% gold stream. It is -- it's a -- the deposit is roughly half copper, half gold. I would have to check my numbers, but it's in the order of 40,000, 50,000 ounces per year of gold that you would get from there.

The next question comes from Tanya Jakusconek at Scotiabank.

Just to finish off, Sandip, on the gold bullion. I mean it's only like about $8 million or thereabout. Why wasn't it just all sold?

Just we -- at the end, we sold what we felt was needed to fund the Cote transaction, Tanya -- plus we do accumulate over time, like the bullion that we've had in inventory, roughly 45,000 ounces has been built up over time. Every quarter, we do receive gold -- high gold royalty payments in kind for some of our assets, and we will continue to do so. So that balance could potentially grow again depending upon what the deliveries are.

Okay. And remind me which ones you're taking, [ kind of ] which royalties?

So there's a handful. We take Detour, Tasiast, Kirkland Lake, Porcupine and Magino in kind.

Okay. All right. So maybe we can start building a bit of an inventory there. Okay.

And just maybe just looking again at your guidance. Is it safe to assume like I'm reading our previous note, I think we were saying that Q3 was supposed to be generally equal to Q4 or thereabout. And with that 10,000 GEOs coming now in Q3 from Cobre Panama, is that a bit of a skew. Should I be thinking a little bit higher in Q3 and lower in Q4 on that [ 47/53 ] first half, second half?

I think that's a fair assumption. Obviously, we expect to get the bulk of the deliveries in Cobre Panama in Q3, some could push into the early part of Q4. It just depends upon where the shipments go. But in terms of just overall, that's a fair assumption.

And I hate asking this, but any guidance on that Hemlo NPI.

Your guess is as good as mine.

Okay. And then can I be reminded, I saw the Salares buyback, Gold Fields bought back, that 1%. Can you just roughly remind me which of your -- which ones have royalty streams, have some of these buybacks that are potentially coming due. It's just there's a lot of money available now that gold price is high, so there's potential for these buybacks. Can you just remind me which ones you have and were coming up on buybacks?

Tanya, it's Eaun again here. Perhaps some of the most relevant for you. And I would say, first of all, the asset handbook does a pretty good job summarizing for the full set, but some of the more relevant Cote has a buyback with IAMGOLD, which is up to 50%. And so that's fairly significant in the scheme of things, Porcupine also has that [indiscernible] it as well. So those would be relevant assets to keep track of.

Yes. Sorry, I missed the first one, on the IAMGOLD one.

Yes. [indiscernible] Tanya, do you have a follow-up?

Yes, Eaun. I'm sorry, I missed the first...

Yes. On Cote, the recent transactions, both Cote and Porcupine have that feature.

Perfect. And maybe if I -- since I have you on the line, just wanted to come back about the opportunities that you are seeing out there. I ask everyone in terms of what -- how they're looking at their portfolio. You've done a couple, you've got a good mix between development and obviously, production. And the last 2 that you've done are adding right away, Arthur Gold is further out. What are you seeing out there in terms of mix between production opportunities versus development. And I think the size had been in that $100 million to $500 million range. Is that still a good mix for you?

Thanks, Tanya, for the question. So first of all, we're extremely happy with how we've been able to deliver on our business development plan, adding what we think are excellent assets with fantastic upside in North America. So we'll continue to focus on assets similar to what you have seen, I would say, Tanya, in terms of size and scale in the last 12 months being a very productive 12 months, we continue to see more of the same going forward. And so we're hopeful we'll be able to add significant growth to the portfolio. You're right, we've had a couple of cash flowing assets. And whenever we have the opportunity to transact on those, that's first prize. But I think in terms of managing the overall portfolio, we need to have a balanced and have some longer-term growth. So we'll do both types of transactions as we move forward. At the moment, focus really is on precious metals growth, and we have what I see is a very healthy pipeline of that moving forward, and we're focused on those private deals.

Okay. And maybe, Paul, if I could squeeze 1 in for you, just on the Prosperity option. Gosh, 2012 seems like a long time ago. I remember -- did we write that asset off at the time? Was it written off?

So Tanya, the deal we had was to say, we put up $300 million, I believe, is the number for the financing if and when it got permitted. So I haven't had any capital that's being expended on it. So, no need to write anything off.

Yes. We took a small impairment at the time, Tanya, a few million dollars, which was just the costs associated with the asset. But as Paul highlighted, nothing was funded under the capital commitment.

Okay. All right. That was just what I was trying to understand. And then, Paul, I think you mentioned -- you think it's going to take a couple of years in terms of getting this to the table? Is that what I understood?

Yes. So the -- to move the project forward, it needs the support of the Chukotun Nation. They have opposed mining in the past. Now they have an ownership stake in the project. So I think there's obviously very material benefits that they could get if the mine does go ahead. I have no idea of time line other than to say, I can only imagine that it will take some time for them to consider the change in circumstance and before they would make any decisions on how to move ahead.

It's obviously positive if we can have more projects permitted in Canada and especially B.C.

The next question comes from Brian MacArthur at Raymond James.

Tanya asked a few of my questions. But can I just ask about Musselwhite as well. You highlighted the NPI model leverage. And again, Hemlo is the one we've always focused on, but Musselwhite was up pretty substantially this quarter. Is there anything other than just a straight gold price leverage going there with that 5% NPA? Like the 2 -- you never got anything from the 2% NSR anything yet?

Brian, it's Sandip. Nothing from the NSR, but with respect to the NPI, gold price leverage as well, there was a catch -- small catch-up payment related to 2024 that we recorded in the quarter as well. So we were [ under-accrued ] with what we had estimated for last year. So part of that increase but the bulk of it is just better production from Orla at the mine and just better operations than obviously, the leverage to the gold price.

So just going forward, I mean, you did 7.7% this quarter. Should I think that these gold prices are the same and costs remain the same, everything is the same, it should be more like $6 million a quarter. Is that reasonably? You had $1.5 billion catch-up? Or just ballpark, what might it be?

I think $4 million is reasonable.

There are no further questions on the phone line. I will turn the Q&A session over to Candida Hayden, who will take questions from the webcast.

Thank you, Joanna. Our first question comes from Lyle Green, shareholder of the company. Precious metals prices have been a strong tailwind this quarter. Could you outline the assumed price environment underpinning your guidance? And how sensitive your outlook is to the gold and silver price fluctuation? Also, are there any thresholds or scenarios under which asset allocation or hedging strategies might shift?

Sure. so Sandip, here. The pricing that we used for the guidance that we've given is $3,250 gold price and a $37 silver price. In terms of sensitivity, $100 increase in the price of gold essentially results in about 4,700 GEOs lower for the other commodities when converting to GEOs. And with respect to hedging, we do not hedge. So we sell our gold at spot.

Our next question is from Lyle Green as well. What are the financial and strategic implications for Franco-Nevada if the Cobre Panama asset remains off-line into 2026? And how are you adjusting your portfolio risk exposure reporting base?

Lyle, thanks for your question. The -- as you recall, when Cobre was shut down, we had impaired the asset fully. So we have -- we haven't built it into our guidance that would be coming online in the near term. We're very hopeful that the company will be able to find a resolution with the government that would see mine come back into the operation. But it's all upside to us. We consider it -- the biggest free option that you can get in the royalty and streaming industry is investing in Franco and the option of Cobre coming back. we're not dependent on it in any way. But the -- we have an extremely robust portfolio. We've got the most diversified portfolio in the space. So we look forward to Cobre coming back online, but it's all upside.

The next question is from Bernie Picchi from Palisade Capital. Putting the last 2 quarters together, our pattern seems to be emerging. One, more aggressive business development M&A; two, less interest in non-precious metals; three, greater focus on North America. Is this the result of an over strategy shift?

Good question. Is there a strategy shift? No, there isn't. The -- and maybe to reiterate, what is our overall strategy. It's we want to be the go-to gold stock. And that means at any point in time, we want to be looking to add gold assets. As you go through -- and I think through the cycle, adding gold assets, as you go through the cycle, the -- you do want to have a gut sense of where you are in the cycle? Are you in the top half of the cycle? Are you in the bottom half of the cycle? You want to keep adding gold assets through the cycle. Where do you want to spend a lot of money where that's at the bottom of the cycle. So gold has done very well. We're keen to keep adding gold. These prices, the key is you want to get into quality assets that are going to last for long term so that you can participate as the gold price appreciates over many decades. So -- that is probably -- hopefully, what you see in all the deals that we've done is a real focus on long-dated quality gold assets as we go through the cycle.

Our diversification strategy is also unchanged. And the summary of it is it's opportunistic. For diversified assets, it does a great asset come to market, like the royalty we have on Vale's iron ore operations where they just are some of the best iron ore bodies in the world, if those assets come along, we'll buy them. The other is if you have a downturn in an industry and you can get a really good entry point into those commodities. So it's a strategy. We don't have to do it. We're just patient. We do it where we can get good value. So it -- more of the deals that have come out in the mix is just is -- as a function of what it was available to us.

Thank you, Paul. There are no further questions from the webcast. this concludes our second quarter 2025 results conference call and webcast. We expect to release our third quarter 2025 results after market close on November 3. Thank you for your interest in Franco-Nevada.

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