Franco-Nevada Reports 2022 Results.

TORONTO: "Franco-Nevada is reporting strong fourth quarter and annual results for 2022. Our Diversified assets outperformed due to elevated energy prices in the year, stated Paul Brink, CEO. We are pleased that First Quantum and the Government of Panama have agreed on terms for a refreshed concession contract and look forward to Cobre Panama achieving its expanded throughput capacity later this year. Precious metal GEOs and Diversified production in 2023 are expected to be consistent with 2022. We are however guiding to lower total GEOs for the year as current energy prices are below 2022 levels. The organic growth in our 5 year outlook comes from both mine expansions and new mines. Franco-Nevada is debt-free, is growing its cash balances and has an active pipeline of growth opportunities."

Q4 2022

2022

Q4 results

vs

Annual results

vs

Q4 2021

2021

Total GEOs1 sold (including Energy)

183,886 GEOs

+1 %

729,960 GEOs

+0.2 %

Precious Metal GEOs1 sold

129,642 GEOs

-7 %

510,385 GEOs

-9 %

Revenue

$320.4 million

-2 %

$1,315.7 million

+1 %

Net income

$165.0 million ($0.86/share)

-25 %

$700.6 million ($3.66/share)

+5 %

Adjusted Net Income2

$164.9 million ($0.86/share)

+1 %

$697.6 million ($3.64/share)

+4 %

Adjusted EBITDA2

$262.4 million ($1.37/share)

-3 %

$1,106.9 million ($5.78/share)

+1 %

Adjusted EBITDA Margin2

81.9 %

-0.5 %

84.1 %

+0.1 %

Strong Financial Position

Earned record GEOs, revenue, Adjusted Net Income, Adjusted EBITDA and operating cash flow in 2022

No debt and $2.2 billion in available capital as at December 31, 2022

Generated close to $1 billion in operating cash flow in 2022

Quarterly dividend increased 6.25% to $0.34/share effective Q1 2023

Sector-Leading ESG

Ranked #1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG

Named on the Corporate Knights' 2022 list of the Best 50 Corporate Citizens in Canada

Committed to the World Gold Council's "Responsible Gold Mining Principles"

Partnering with our operators on community and ESG initiatives

Goal of 40% diverse representation at the Board and top leadership levels as a group by 2025

Diverse, Long-Life Portfolio

Most diverse royalty and streaming portfolio by asset, operator and country

Core assets outperforming since time of acquisition

Long-life reserves and resources

Growth and Optionality

Acquisitions, mine expansions and new mines driving future growth

Long-term optionality in gold, copper and nickel and to some of the world's great mineral endowments

Strong pipeline of precious metal opportunities

Quarterly revenue and GEOs sold by commodity

Q4 2022

Q4 2021

GEOs Sold

Revenue

GEOs Sold

Revenue

(in millions)

(in millions)

PRECIOUS METALS

Gold

102,583

$

178.2

109,637

$

196.5

Silver

18,493

32.7

21,479

38.6

PGM

8,566

15.5

7,683

14.0

129,642

$

226.4

138,799

$

249.1

DIVERSIFIED

Iron ore

6,230

$

10.8

8,600

$

15.5

Other mining assets

301

0.5

656

1.1

Oil

19,619

34.2

16,148

28.9

Gas

24,630

42.5

14,569

26.3

NGL

3,464

6.0

3,771

6.8

54,244

$

94.0

43,744

$

78.6

183,886

$

320.4

182,543

$

327.7

Annual revenue and GEOs sold by commodity

2022

2021

GEOs Sold

Revenue

GEOs Sold

Revenue

(in millions)

(in millions)

PRECIOUS METALS

Gold

401,756

$

723.1

420,535

$

750.6

Silver

77,232

139.9

97,234

172.7

PGM

31,397

56.7

40,628

72.4

510,385

$

919.7

558,397

$

995.7

DIVERSIFIED

Iron ore

30,803

$

55.5

49,748

$

89.6

Other mining assets

3,760

6.9

2,836

5.2

Oil

86,068

156.0

60,447

108.1

Gas

84,227

150.9

44,685

79.8

NGL

14,717

26.7

12,124

21.6

219,575

$

396.0

169,840

$

304.3

729,960

$

1,315.7

728,237

$

1,300.0

In Q4 2022, we earned $320.4 million in revenue, down 2.2% from Q4 2021. The decrease was driven by lower contributions from our Precious Metal and Iron Ore assets, largely offset by our Energy assets due to higher realized oil and gas prices. Precious Metal revenue accounted for 70.7% of our revenue (55.6% gold, 10.2% silver, 4.9% PGM). Revenue was sourced 90.5% from the Americas (26.8% South America, 22.8% Central America & Mexico, 27.0% U.S. and 13.9% Canada).

2023 Guidance

Please see our MD&A for the year ended December 31, 2022 for more details on our guidance and see "Forward-Looking Statements" below.

For 2023, we expect GEO sales from our Precious Metal assets to range between 490,000 and 530,000 GEOs, consistent with 2022, but anticipate total GEOs sales to be between 640,000 and 700,000 GEOs, a reduction from 2022 primarily based on lower assumed oil and gas prices. With respect to Cobre Panama, based on First Quantum's most recent 2023 guidance of between 350,000 and 380,000 tonnes of copper, our attributable GEO production would be between 131,000 and 142,000 GEOs. Following the restriction of concentrate shipments in February, we have made a larger allowance for the impact of shipment timing for the year. We have estimated GEOs delivered and sold from Cobre Panama to be between 115,000 and 135,000 GEOs. We expect higher production from Antapaccay, MWS and Musselwhite, and initial contributions from new mines including Magino, Seguela and Salares Norte, partly offset by anticipated decreases in GEO sales from Antamina, Hemlo and Candelaria. For our Diversified assets, we are guiding to...

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