Franco-Nevada (FNV) Q3 2026 Earnings Call Transcript

Image source: The Motley Fool.

DATE

Nov. 12, 2026

CALL PARTICIPANTS

• Vice President of Finance, Investor Relations - Bonavie Tek
• President and Chief Executive Officer - Paul Brink
• Chief Financial Officer - Sandip Rana

TAKEAWAYS

• Revenue -- $549.3 million, an increase of 13% over the prior-year period driven by stronger gold and oil prices.
• Adjusted Net Income -- $364.5 million, or $1.89 per share, compared to $275 million in the third quarter of 2025.
• GEOs Sold -- 130,435 ounces, representing a 6% decrease from 138,772 ounces in the prior-year period due to lower deliveries from Cobre Panamá and Antapaccay.
• Adjusted EBITDA -- $493.9 million, representing an 89.9% margin and a 15% increase year over year.
• Available Capital -- $4.8 billion, comprising $1.2 billion in cash, $2.25 billion in credit facilities, and $1.3 billion in liquid marketable securities.
• Revised 2026 GEO Guidance -- 525,000 to 555,000 ounces, narrowed from the initial range of 510,000 to 570,000 ounces.
• Diversified Revenue Guidance -- $300 million to $330 million, raised from the initial range of $245 million to $285 million reflecting strong energy price performance.
• Cobre Panamá Stockpile Deliveries -- 10,000 GEOs estimated for the full year 2026, with 3,716 ounces sold during the quarter from processing stockpiled ore.
• Côté Gold Buyback -- $525 million in cash proceeds expected in Dec. 2026, as IAMGOLD exercises its right to repurchase 50% of the 7.5% gross margin royalty.
• Barbados Tax Reversal -- $32.8 million, recognized as a benefit after the company determined the qualified domestic minimum top-up tax did not apply for the 2024 fiscal year.
• Operating Cash Flow -- $429.2 million, a 23% increase over the prior-year period supported by higher revenue and lower cost of sales.
• Bullabulling Gold Project Royalty -- $121 million, for an additional 1.45% gross royalty that increases the total gross royalty interest to 3.9%.
• Porcupine Complex Royalty Acquisition -- $8 million, to extend existing royalty interests to cover adjacent mineral properties purchased by Discovery Mining.
• Dividend Payments -- $84.1 million paid during the quarter, following the 19th consecutive year of dividend increases.
• Gold Ounces Sold Guidance -- 355,000 to 385,000 ounces, revised from the previous range of 360,000 to 400,000 ounces.
• Silver Ounces Sold Guidance -- 4.7 million to 5 million ounces, compared to the initial guidance range of 4.7 million to 5.5 million ounces.
• PGMs Ounces Sold Guidance -- 30,000 to 34,000 ounces, representing a decrease from the initial 32,000 to 37,000 ounces.
• Energy Asset Revenue -- $86.8 million, increasing 29% year over year due to elevated West Texas Intermediate oil prices.
• Candelaria Revenue Contribution -- 10% of total quarterly revenue, despite lower production caused by heavy rainfall and lower grade feed from stockpiles.
• Musselwhite Exploration Success -- 22.9 meters grading 10 grams per ton, which management noted confirms a two-kilometer mine trend extension.
• Impairment Reversal -- $10.3 million, recognized for the Cobre Panamá asset following the authorization and resumption of stockpile processing.

Need a quote from a Motley Fool analyst? Email pr@fool.com

RISKS

• Rana stated, "At Guadalupe, production was impacted due to heavy rainfall, which resulted in supply chain issues," preventing mining in high-grade areas.
• Management warned that silver ounces sold at Antamina decreased due to "lower concentrator throughput at the mine," which impacted overall deliveries.
• Rana indicated that for diversified commodities, "the iron ore price has retreated a little bit this year," leading to expectations that revenue for that segment will remain flat year over year.

SUMMARY

Management of Franco-Nevada Corporation (NYSE:FNV) reported third quarter results characterized by record year-to-date performance in revenue, adjusted EBITDA, and operating cash flow. The company benefited from significantly higher realized prices for gold and oil, which offset lower precious metal deliveries at several key assets. Management narrowed its full-year volume guidance while raising diversified revenue targets to reflect the outperformance of energy assets. The company continues to maintain a debt-free balance sheet with substantial liquidity, supporting a multiyear track record of progressive dividend increases and a vibrant pipeline of potential mineral and energy royalty acquisitions.

• Management reported that the Panamanian Interministerial Commission recommended the government begin formal negotiations regarding the future of the Cobre Panamá mine.
• The company expanded its Australian footprint through a second tranche of financing for the Bullabulling deposit, increasing its gross royalty interest.
• CEO Brink stated, "I honestly cannot recall a period in the past where there is been so much exploration success across our portfolio," citing results at the Porcupine Complex and Musselwhite.
• The Côté Gold buyback by IAMGOLD is expected to return at least $525 million in capital, which management noted was driven by the operator's drilling success and higher gold prices.
• CFO Rana indicated that "energy revenues did benefit from this higher oil price" and management expects this trend to persist through the fourth quarter.
• The company continues to advance its sustainability initiatives, including a multiyear commitment at Cobre Panamá for community development and environmental programs.

INDUSTRY GLOSSARY

• GEO: Gold Equivalent Ounce, a metric used to compare and aggregate different precious and base metals into a single unit based on gold price ratios.
• GMR: Gross Margin Royalty, a royalty based on the value of production less certain specific costs such as transportation and refining.
• P&SM: Preservation and Safe Management, a non-operational phase where a mine site is maintained to ensure environmental and physical security.
• PGM: Platinum Group Metals, a group of six precious metallic elements including platinum, palladium, rhodium, ruthenium, iridium, and osmium.
• RIGI: Large Investment Incentive Regime, an Argentine regulatory framework providing tax and customs benefits for major capital projects.
• NPI: Net Profits Interest, a royalty based on the profit of a mine rather than its gross revenue.

Full Conference Call Transcript

Operator: Good morning, and welcome to Franco Nevada Corporation's Third Quarter 26 Results Conference Call and Webcast. This call is being recorded on November 12, 2026. At this time, I will enter listen only mode. Following the presentation, we will come back to a question and answer session where you may ask a question through the phone line or webcast. You are joining by webcast, you may submit a written question for the Q&A session at any time during this call. By typing your questions in the Q&A section of the webcast platform. For required media assistance during this call, please press 0 at any time for the operator.

I would now like to turn the conference over to your host, Bonavie Tek, vice president of finance, investor relations. Please go ahead.

Bonavie Tek: Thank you, Anna. Good morning, everyone. Thank you for joining us today. To discuss Franco Nevada's third quarter 26 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 an overview 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, and 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.

Paul Brink: Thank you, Bonavie. Good morning. Franco Nevada generated strong Q3 financial results. Revenue, cash flow and earnings were all higher than the prior year period. Driven by stronger gold and oil prices. While precious metal GEOs deliveries were slightly below expectations, Strong oil prices boosted our diversified revenue. And we are now tracking towards the midrange of our annual guidance. During the quarter, the Panamanian Commission recommended the government begin formal negotiations with First Quantum regarding Cobre Panamá. Response to the earthquake has obviously taken priority since then. Although we hope the process will resume once that is addressed.

During the quarter, we took another step in growing our Australian business for the second tranche of financing for the development of the Bulleit Bulling deposit. We also saw several project advancements in our portfolio during the period. Glencore announced they have completed surface land acquisitions for Coricowaco project at Antapaccay, and reiterated that timeline to achieve first production Bay and Mitsubishi sanctioned construction of Copper World, and the federal government stepped up with a 100 billion. With-- sorry. With a billion of funding for the Ring Of Fire Road matching the billion commitment from the province. We keep seeing exceptional exploration success across the portfolio. it is not my normal, but I cannot help myself.

I am going to speak about some of it. At the Porcupine Complex, discovery continues to expand mineralization at AurMac. both East and West of the existing pit. And Also at the newly discovered North Contact Zone at Dome, they extended mineralization up to 600 meters to the south. Updated resources for both are expected in early 2027. The Dome resource is already about 11 million ounces, and it is getting bigger. But even more exciting with the success of AurMac I believe that resource will expand dramatically. The company is indicating that together with a potential large central mill, this exploration success could ultimately support annual production of 500,000 to 1 million ounces of gold.

At Stibnite, Perpetua identified new high grade gold antimony mineralization along the clock tunnel fault zone at Yellow Pine. Mineralization starts from surface. They also found a new gold tungsten zone between Yellow Pine and West End. At Gurupi, SGS drill results extended the existing Mendocall and Blanket deposits, and confirmed the near surface ground occult discovery. Their PA remains targeted for year-end 2026. I think the best single result came from Musselwhite, where equinox is drilling to confirm the 2-kilometer mine trend extension from existing operations. The intersect came from PQ extension It was 22.9 meters grading 10 grams per ton.

With the success and the exploration success, we mentioned last quarter at Banyan's AurMac, and Bindle 62's Bulleit Bulling at EMX's Mineral Point deposit I honestly cannot recall a period in the past where there is been so much exploration success across our portfolio. On sustainability front, we expanded our mining industry scholarship program by awarding 8 new scholarships for each to university and trade programs. Franco Nevada is now supporting a total of 23 students 7 of whom are expected to graduate from their programs next year. Subsequent to quarter end, we entered a multiyear commitment at Cobre Panamá supporting community development and environmental initiatives led by Monera Panama, including education, workforce development, health infrastructure, reforestation, and marine conservation.

We also renewed our commitment to Ensena Peru at Ensena, Peru's education initiative, which supports students and teachers across the ANCAS region of Peru. in which Antamina is located. To conclude, with $4.8 billion in available capital and no debt, the company has ample firepower to take advantage of a strong pipeline of deals. On that end, the call presented. Great.

Sandip Rana: Thanks, Paul. Good morning, everyone. As Paul mentioned, Franco Nevada reported strong financial results for the quarter 2026 after market close yesterday. The quarter highlighted the strength of having the largest diversified portfolio in the industry, not just by asset, but also by commodity. Slightly weaker performance from some of our assets during the quarter was offset by receiving our initial GEOs from Cobre Panamá, related to the processing of stockpile ore by First Quantum. As well, we benefited from strong performance from the energy portfolio which had a strong quarter with a significant increase in revenue over 2025.

The performance during third quarter, combined with the strong performance for the first half of 2026, has resulted in record financial results year to date, September 30. For revenue, adjusted EBITDA, adjusted net income, and operating cash flow. As we turn to Slide 4, it provides an update on our guidance for the year. Based on the performance for the first 9 months of the year, and our projections for fourth quarter, we have narrowed our total GEO sold guidance range to 525,000 to 555,000. As part of our updated guidance, we have also narrowed the ranges for the individual segments. Gold, silver and PGMs.

The guidance does include GEOs from Cobre Panamá, for the processing of stockpile ore which we had not included in our original guidance back in March. We estimate being delivered approximately 10,000 GEOs from Cobre Panamá in 2026. As you will see from the slide, we are expecting a significant increase in our diversified revenue, which has been a significant outperformer for us this year due to strong oil prices. The expected revenue from our diversified assets is now expected to be between $300 million and $330 million On Slide 5, you will see a summary of commodity prices for third quarter 2026 and 2025.

Precious metal prices have increased year over year with the average gold price higher by 24% and silver by 59% in the quarter. But are off the all time highs, which were reached in first quarter 2026. For diversified commodities with the continued conflict in The Middle East, the oil price continues to see a significant increase over prior year. The WTI price has been volatile over the last few months but remains above $85 a barrel. As mentioned, energy revenues did benefit from this higher oil price, and we expect this to carry through the fourth quarter. Slide 6 provides an overview of our key financial results.

The performance from our assets combined with stronger commodity prices over prior year. Resulted in an increase in revenue of 13% adjusted EBITDA of 15%, adjusted net income of 33%. Total GEO sold for the quarter were 130,000 compared to 139,000 in third quarter 2025. Precious metal GEO sold in the quarter were just over 110,000 lower by 7% compared to prior year. Over 50% of total GEO sold during the quarter were sourced directly from mines where precious metals are the primary commodity.

For the quarter, we did receive strong contributions from South Arturo, due to higher production from the open pit, Valentine as the mine continues to ramp up, And Casa Berardi, which is a new stream we entered into in 2026. Some assets which delivered less GEOs than prior year include Guadalupe, Antapaccay, and Cobre Panamá. At Cobre Panamá, although we did receive and sell 3720 GEOs related to the processing of stockpile ore, You will recall that in prior year, we had received approximately 11,000 GEOs related to the shipment of concentrates, which had been on-site at the time of the mine being closed. At Guadalupe, production was impacted due to heavy rainfall, which resulted in supply chain issues.

Preventing mining in high grade areas, And at Antapaccay, deliveries were lower in third quarter due to timing of deliveries. Diversified geos sold were 19,500 for the quarter, compared to $19,700 for prior year despite diversified revenue being 29% higher year over year at $86.8 million The slight decrease in GEOs was due to the impact of converting revenue to GEOs at a higher gold price. As you know, we are now converting GEOs to GEOs using fixed gold price of $4500 per ounce. As you can see from the chart, total revenue increased 13%, to $549.3 million Adjusted EBITDA was 15% higher for the quarter at $493.9 million compared to $427.3 million in Q3 2025.

With respect to costs, we did have a decrease in cost of sales compared to prior year, as less stream ounces were delivered during the quarter Cost of sales was $43.1 million versus $47.2 million last year. And depletion decreased to $78.6 million versus $87 million a year ago. Again, the decrease is due to lower depletion being recorded for Cobre Panamá and Antapaccay. Finally, adjusted net income was higher by 33% at $364.5 million or $1.89 per share.

We did recognize a tax benefit during the quarter We had previously recorded a tax expense related to the implementation of the qualified domestic minimum top up tax in Barbados, as we were finalizing the calculation and returns this year, it became clear that the tax did not apply to us for 2024. As a result, we have reversed the expense of $32.8 million related to that year. Slide 7 highlights the continued diversification of the portfolio, 84% of our third quarter revenue was generated by precious metals, with revenue being sourced 89% from the Americas. Candelaria was the only asset that generated more than 10% of revenue, as we have 1 of the most diverse portfolios in the industry.

Our business model continues to be high margin business, as shown on Slide 8. The margin per GEO has increased from $1020 per GEO in 2022 to just over $4200 per GEO in 2026. An increase of 2.7x. As we turn to dividends on Slide 9, the company continues to pay a quarterly dividend with $84.1 million being paid to shareholders during the quarter. 2026 was the 19th consecutive year we have increased the dividend with it currently being $1.76 per share annualized. And lastly, Slide 10 highlights our available capital.

As at September 30, 2026, total available capital is 4.8 billion comprised of $1.2 billion in cash, dollars 2.25 billion with our credit facility, including the accordions, $1.3 billion in liquid marketable securities. Also, after quarter end, IAMGOLD gave notice that we will be exercising its 50% buyback right on the Cote gross margin royalty. We expect to receive approximately $525 million in early December. The company continues to be debt free and is well capitalized to continue to add good quality assets to the portfolio. And with that, I will pass it over to Anais as management is happy to answer any questions.

Operator: Of course. During this Q&A session, if you would like to ask a question, please press star then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star then the number 2. If you are joining us on the webcast, please submit your question through the Q&A section of the webcast platform. 1 moment, please. Overcompile the roster, Your first question comes from Lawson Winder with Bank of America. Please go ahead.

Lawson Winder: Yeah. Thank you very much, operator. Good morning, Paul and Sandeep, and thank you for today's update. The oil and gas performance was very remarkable in the quarter. And I guess I would ask just for respect to the increase in the diversified revenue guidance. How much of that is oil and gas? And then if and if you disaggregate that into the different components, how much is pricing? How much is just increased volumes on your you know, unaffected property, and then how much of that would be related to an increase in the. In related to the, royalty acquisition venture you guys have with Continental.

Sandip Rana: So in terms of the increase in diversity, revenue, Lawson, it is it is all energy. You know, the iron ore is as you know, the iron ore price has retreated a little bit this year. So that will be flat year over year. So the increase in revenue. The significant increase in revenue is tied to energy. You are seeing some production increases on our lands, but the majority of that revenue increase is strictly price driven.

Lawson Winder: Okay. that is very helpful with Guadalupe, Palmarejo, that. This 1 is a tough 1 to model just given the variability of where mining takes place. Quarter to date, can you provide us with a little guidance on where you expect Q4 26 GEOs likely to trend relative to Q3? 2026 based on your knowledge of the mine plan?

Sandip Rana: Yeah. it is tough for us as well. And obviously, they have had some issues this year, just into lower grade zones as well as supply chain. Historically, Guadalupe is been a very strong performer in terms of what was expected has been delivered. For Q4, you know, I would say between 8000 to 9000 GEOs is sort of the range that we would we would expect.

Lawson Winder: Okay. Great. Thank you for that. And then just finally, you made some pointed comments in the written part of the release on the pipeline. You maybe just provide us with a sense of the size of the pipeline in terms of number of deals you are seeing and the range of values? But where I would be very keenly interested to understand the pipeline is just on the urgency or timeline associated with that. I mean, any color there would be very helpful.

Eaun Harrison Gray: Thank you, Lawson. it is Eaun here. I would say, overall, the pipeline is exceptionally vibrant. it is quite diverse in terms of size and type of deal. You know, there are some more larger deals in the pipeline versus, perhaps, you know, a year ago. But, you know, in terms of timeline, really hard to comment on that. You know, I think we expect quite active over the next 12 months.

Lawson Winder: Okay. Thanks, Eaun. Thank you, Sandeep. Thank you.

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

Cosmos Chiu: Thanks, Paul, Sandip, Bonavie, and Eaun. Congrats on a strong Q3. I know Paul usually do not do it, but I thank you for talking about the development pipeline that you have in your portfolio. You mentioned discovery. You mentioned, you know, what is happening at Panmore and Dome. Could you maybe elaborate? You know, does that accrued directly to, Franco Nevada if they do get to that half 1 million ounces. So he. You know, Discovery's even talking up maybe half 1 million ounces just coming from Dome. Number 1. And number 2, you, you know, made that additional investment $8 million investment into Paymaster with Discovery and their acquisition.

Could you maybe talk about the prospect prospectivity of that new acquisition as well? Within Porcupine?

Paul Brink: Thanks, Cosmos. We are we are very excited about everything that is happened. Happening at Pokerpine. Ian was the guy who led that deal, so I am gonna pass it to him.

Eaun Harrison Gray: Good job. Yeah. Look. I would say, first of all, we are delighted to continue to work, with Tanya and the team at Discovery as they continue to enhance their holdings around Timmins. And so I think that is that is probably first and foremost. I think that is a very perspective piece of Brian, and you can see where it is located vis a vis some of the existing, properties. Hard to. You know, in the broader context of everything that is going on there, handicap exactly when that might come in. But I would say it is it is certainly accretive, and we are, again, very happy to be working with the team there.

Cosmos Chiu: Great. Thanks, Eaun. Maybe following on your growth pipeline here. Paul, 1 asset that you did not mention was Hoyle. Could you remind us, you know, with your agreement with Aurizon if HivaHosco is a part of it. I know Case already was a main part. Is Hoyle a part of it? My understanding is that Aurizon might be putting out a technical report on Hoyle fairly shortly. How do you view that?

Paul Brink: Looking forward to that report, Cosmos. And, yes, the. Our interest do cover Hoyle. And so very interested to see if Orezone is able to advance those to pass Great.

Cosmos Chiu: And then I guess the quarter featured a number of what I would call accounting intricacies. 1 was the reversal of the impairment at Cobre Panamá. Not a big deal, but it is just more nerdy accounting question. How did the $10.6 million impairment reversal, how was it calculated? Because if we are expecting you know, 23,100 ounces of gold along with 2,065 ounces of silver, that is almost 30,000 ounces of gold. GEOs. Let's say 3 or $4000 an ounce sort of margin on this, it would still net me almost a $100 million in revenue. Or in the cash flow. So why only $10.6 million?

Sandip Rana: Because most. The way the depletion count works is you take what you paid the asset originally, so the stream acquisition back in the day, And then you divide it by half divide it by how many geos you expect over the life and you come up with a depletion per GEO. And so based on the 30,000 GEOs that we are expecting, as part of the stockpile processing, just a mathematical calculation.

Cosmos Chiu: Okay. So, I guess, based on that, calculation, Sandeep, you likely will not expect any more reversals just yet based on the information today?

Sandip Rana: Correct. So we did the impairment reversal for the full stockpile processing. GEOs, that we expect to receive And so the next you know, impairment reversal would be if Cobre Panamá restarts. And we would have a reversal at that time. Mhmm.

Cosmos Chiu: Great. And maybe 1 last question. You know, after the quarter, as you mentioned, IAMGOLD exercised the right to buy back the Côté or half of the Côté royalty. Was that expected, especially, I guess, on timing? And I guess in the MD and A, you also mentioned that at least $525 million of the initial investment or acquisition price will be received. Why at least? Could it be higher than $525 million? Could you remind us?

Paul Brink: So Cosmos, for the first is, yes. It was expected in that it makes a ton of sense that IAMGOLD is doing this They have had great success with the drilling around the deposits. it is gonna be bigger than we both expected at the time we did that deal. Second, obviously, gold prices performed well. So I can fully understand why it is that they are exercising that buyback. We. We are very happy to provide it to them. You will you will recall when we did that deal they gave us access to due diligence, and that really is what allowed us to secure the interest that we have in the deposit.

In terms of the buyback returns, we it was structured, we would get a minimum of a 10% return, but could be a bit higher depending on any payments that happened in the interim and the so as. there is still some payments that are due. I think that is what gives you the variability, and it may be slightly higher. it is not materially higher. But we will not know until the final payment is written.

Cosmos Chiu: Got it. Great. Thanks, Paul, Sandeep, and Eaun for answering all my questions. that is all I have. Thank you.

Operator: Thank you. Your next question comes from Tanya Jakusconek with Scotiabank. Please go ahead.

Tanya Jakusconek: Oh, great. Thanks for taking my questions. Some have been answered. Just maybe finishing up on Cobre Panamá. I am just trying to make sure you have 1-third of the ounces coming in this year. And is this 2-thirds coming in the first half of 2027? Sandeep? Is that how I should be thinking of it?

Sandip Rana: Yes. So, Tanya, you know, our estimate's around 27,000 to 28,000. So right now, we are estimating about 10,000 or a little ahead in Q3 than we expected. So 10,000 with the balance in 2020, likely over the first 2 quarters of next year.

Tanya Jakusconek: Okay. Thank you for that. And then once the mine reopens, I understood that is when you could reverse your write down on the entire. Would it be the entire value that you took down?

Sandip Rana: Minus Yeah. In all likelihood, it would be the full reversal of the outstanding balance.

Tanya Jakusconek: I wanted to come back to. You have got a lot of money. You know, building a lot of cash. How should I be thinking about the dividend in January? You know, you have a progressive dividend, but, you know, bearing any you know, transactions, and I will get to the transactions with Ian. But we are building a lot of cash. So how should I be thinking about the dividend? In terms of, you know, that, you know, above the average that you have been doing?

Sandip Rana: Yeah. So, Tanya, it is it is a decision we sit down with the board every year in January and we look at what is the cash on the balance sheet, what is in front of us in terms of the deal pipeline. As Ian has highlighted, it is it is very active. And we make a decision at that point. As you know, our philosophy has always been sustainable and progressive. Raise it every single year, and we are proud of our track record you know, of 19 years in a row. Know, next year will be our 20th increase. So at this time, all I know is we will be raising it. As to the quantum.

As I said, we will sit down with the board in January and make the decision at that point.

Tanya Jakusconek: Yeah. I think it is the. You know, and all the history, it is the most amount of cash and liquidity you had. Right? Yeah. Yeah. Okay. Maybe just thinking then about 2027, and that is before getting to Ian on the transaction side. You know, there is some assets that are going to be contributing I just wanted to make sure, bearing the pricing that gonna be used and that we will know early next year. But I just. I am trying to get a handle of how I see my GEOs progressing year on year. I just wanna make sure that, you know, we have the production contribution.

So I just wanna review with you We have, obviously, Eskay Creek coming in H1 of 2027. Valentine is ramping up. I think porcupine full year. Maybe you can go through some of them that are going to you know, help us get that geo number correct.

Sandip Rana: Yeah. So, Tanya, I think you have got the major changes there. Obviously, Eskay Creek, as you mentioned, Valentine ramping up. And then, obviously, the other piece will be energy prices. If they remain at these elevated levels, we will contribute more GEOs next year than they did this year. So that is another element there. But, overall, those are the moving pieces for next year. The 1 piece that obviously is gonna come in next year is the Candelaria Step Down. Yeah. Candelaria step down and then the Côté. Right? The decline and the Côté coming back. And then we will have a full year of Casa Berardi.

This year, Casa Berardi was only for 3 quarters, so we will have a full year next year.

Tanya Jakusconek: Okay. So if I put all of these in, hopefully, I will get the right number. And just finally on Ian, I mean, you mentioned that you have a lot of, you know, a lot of opportunities out there and some big, some small. Like, would your big opportunities be the 1 over $1 billion? And, Ian, are the smaller ones in that $200 million to $500 million range. I am trying to understand the range on the precious metal side. And then I think the nonpressures you had given was in the $200 million to $500 million. Just trying to understand if that is still the case.

Eaun Harrison Gray: Yes, Tanya. I think you are spot on in terms of the scale of opportunities. All the classes that you identified.

Tanya Jakusconek: K. And then as you think about these opportunities, are a lot of them still in Australia since that seems to be the new and sort of the opportunities that companies there now are open to doing streaming. Or should I be thinking about also you know, obviously, bigger ones I am assuming are the, you know, the diversified large international players.

Eaun Harrison Gray: it is a great question, Tanya. I would say first of all, we are very happy with the progress of the business in Australia. Obviously, the Minerals 260 transaction has really been a landmark transaction, we think, for gold developers they are getting a lot more interest on the back of that. But my overall take on the market is it seems like we have had market growth year over year in terms of the number of opportunities in the overall quantum, both in terms of dollars to be deployed and geos potentially to add to the portfolio. So geographically, that breaks out, you know, globally. In North America, in Australia, incrementally, potentially in Africa and Latin America.

So I think you should expect a wide ranging you know, geographic assortment of deals. But I think the 2 big comments there are probably, you know, overall market growth and, skewing towards larger transactions over time as well.

Tanya Jakusconek: And Ian, how should I be thinking of the deal structure? So the smaller ones, should I be thinking that those are more for the development, opportunities? And so it would be a package of, like, a stream plus equity plus debt financing. Whereas the larger ones with the multinational, they just want cash. Should I be thinking of it in that way for the structures of these deals?

Eaun Harrison Gray: I think broadly speaking, yes. We are very happy with our financial backer strategy is what we call it. And you have seen that with groups like Discovery and GMENT where we have, you know, worked across the capital structure and provided some pretty, great results for the shareholders of the company that we are working with and, of course, for Franco-Nevada shareholders. So we will continue to emphasize that as much as we possibly can. As it is been generating some quite impressive returns.

Tanya Jakusconek: Okay. And then my final question, just, you know, Paul mentioned a lot of the. Thanks, Paul, for talking about expiration and the streaming company. Sometimes we forget the upside that you have on your property. Given that Paul's comment, is anything I should take from that in the in the. In context of changing the structure of your deals in terms of adding above and beyond? Like, could you get anything more that you could add on the land package in terms of being able to include all of these additional potentials?

Paul Brink: You know, I do not think it changes anything, Tanya. They. You know, other than we like the structure of our business. We. With both the stream deals and the royalty deals, we have been able to do, I think that give us the broadest number of avenues that we can get deals done by. And as we go through the cycles, you different opportunities in this cycle. The way you have got both the gold and the copper producers producing great cash flow. That turns into capital that gets spent in the ground. And, you know, while it benefits us streams, you know, some of the most exciting developments are on those royalty properties as you could hear.

So delighted to have both streams and royalties in our portfolio.

Tanya Jakusconek: And I am just thinking more on the land position. Like, as you think about these deals, can you extend more, like, you know, add more land than you usually have in your other contract? Capture all of these, you know, potential the upside potential just from drilling longer term.

Paul Brink: Or have you I would not say it is a it is a general trend. You know, usually, the property position is the property position. You know, with the strategy we have been following in years, is, you know, build up partnerships, The. We are trying to find that balance that our model is a win-win model. They. I think the deal with discovery is a great indication where there is potential for them to expand their sphere of influence and we are pleased that they are working with us to help finance that act acquisition and gives them added exposure and us added exposure.

Eaun Harrison Gray: Okay. The other 1, Tanya, would be Minerals 260, which you probably noticed, we added to the land position, pretty meaningfully the second transaction. And, you know, our perspective, it is it is very important as we structure new transactions to have that type of optionality. And that is, of course, reflected in how we price and structure deals.

Tanya Jakusconek: Yeah. And that is what I was alluding to is I saw that and I think and thought that maybe because of what Paul had been saying on expiration, all of the new deals now are gonna have more land position structure to it. Anyways, we can take it offline. it is it is okay. Thank you.

Operator: Thank you. Your next question comes from Jack Baxter with Bloomberg Intelligence. Please go ahead, Jack.

Jack Baxter: Alright. Thank you, Paul. Thank you, Sandeep and Eaun. I just wanted to look at the. And it is probably asked in a lot of these calls, but I will just ask it again. On the $112 million bullion in inventory, which I know you have said in the past, the timing of those sales depends on pricing and liquidity needs. But maybe following on from what Tanya said, balance sheet is very strong. So I am just wondering what is the motivation for holding that bullion as opposed to monetizing it when it is received.

Sandip Rana: Hi, Jack. So we receive that bullion inventory on balance sheet it relates predominantly to our royalty interest where we do receive ounces in kind. So, like, Detour, hazyas, and a few others. And we saw that on a regular basis. So it will fluctuate you know, a few ounces each quarter depending upon how sales have been going. And, also, I will see on the closing price at the end of the quarter. But for the most part, we are selling on a regular basis. Right now, there is no intention on our part to build up that balance.

Jack Baxter: But, yeah, maybe-- just a follow-up then. So just for accounting, is it is my understanding correct that as that bullion comes in with the royalties, you know, that is booked as revenue at that time. With future gains on the sale. At the point of sale when you do eventually make it, then the gain is booked as further sales. Is that correct?

Sandip Rana: Yeah. So the way it works is when you receive the ounces yes, you are correct. You book it as revenue and then as inventory And then when you sell it, any difference between what it is on your books for and what your actual sales price is a gain or a loss. You will see a line item on our income statement. Gainloss on sale of bullion. You know, I think it is $2.1 million for the year so far of a gain. that is where the difference will get recorded.

Jack Baxter: Got you. Thank you very much for that clarity.

Operator: Thank you. Your next question comes from John Tumazos with John Tumazos Independent Research. Please go ahead, John.

John Tumazos: Thank you. I am trying to compare the prettiest girls at the dance. And Agnico at Detour West had a 499-gram meter hole. That they released November 11. IAVI at Mineral Point had a 26 gram meter hole with every week September 22. At Palmarejo, October 7, hole 38 was 219. And hole 263 was 216 gram meters. The 1 you referenced, Paul, is your favorite that Musselwhite 22 meters around 10 grams would be around 22 gram meters. So how do you figure out which is the prettiest girl at the prom?

Paul Brink: John, they. We gotta hire you for our IR department. To. You are you are much more meticulous about pulling these drill results than I am. So I love what you are saying.

John Tumazos: Okay. I just do not wanna miss 1 of the pretty girls at the dance. Thank you.

Paul Brink: Thank you, John.

Operator: Thank you, everyone. There are no further questions on the phone line. I will now turn the Q&A session over to Bonavie Tek, who will take questions from the webcast.

Bonavie Tek: Thank you. There are no questions from the webcast. So this concludes our third quarter 2026 conference call and webcast. Expect to release our year-end 2026 results after market close on March 9, 2027, with the conference call held the following morning. Thank you for your interest in Franco Nevada.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a great day.

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool recommends Franco-Nevada. The Motley Fool has a disclosure policy.