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October 2015
FNV TSX/NYSE
Cautionary StatementForward Looking StatementsThis presentation contains “forward looking information” and “forward looking statements” within the meaning of applicable Canadian securities laws and the U.S. Private Securities Litigation Reform Act of1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management’s expectations regarding Franco-Nevada’s growth, results ofoperations, estimated future revenues, requirements for additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue, future demand for and pricesof commodities, expected mining sequences, business prospects and opportunities and the Antamina silver stream and its expected benefits. In addition, statements (including data in tables) relating toreserves and resources and gold equivalent ounces are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given thatthe estimates will be realized. Such forward looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward lookingstatements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or“believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” betaken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. A number of factors could cause actual events or results todiffer materially from any forward looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals,copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso and any other currency in which revenue is generated, relative to theU.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies; regulations and political or economic developments in any of the countrieswhere properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds aroyalty, stream or other interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; business opportunities that become available to, or arepursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, streamor other interest; whether or not the Company is determined to have PFIC status; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development,permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; actual mineral content may differ from the reserves andresources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business ofdevelopment and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions,slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; and the integration of acquired assets and risks relating to the Antamina silverstream acquisition and its completion. The forward looking statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: theongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy ofpublic statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; theCompany’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; no adverse development in respect of any significant property in whichFranco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquiredassets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward lookingstatements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and investors are cautioned that forward looking statements are notguarantees of future performance. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, investors should not place undue relianceon forward looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to the “Risk Factors” section of our mostrecent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and contained in our most recent form 40-F filed with the Securities and Exchange Commission(the “SEC”) on www.sec.gov) as well as our most recent Management’s Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedar.com and with the SEC onwww.sec.gov. The forward looking statements herein are made as of the date of this presentation only and Franco-Nevada does not assume any obligation to update or revise them to reflect newinformation, estimates or opinions, future events or results or otherwise, except as required by applicable law.
Phil Wilson, CEng, Vice President, Technical of Franco-Nevada and a qualified person under National Instrument NI 43-101 has approved the written disclosure in this presentation on behalf of Franco-Nevada.
Non-IFRS MeasuresAdjusted Net Income, Adjusted EBITDA and Margin are intended to provide additional information only and do not have any standardized meaning under International Financial Reporting Standards (“IFRS”)and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flowfrom operations as determined under IFRS. Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRS measures, please see the end of thispresentation or the Company’s most recent Management’s Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedar.com and with the SEC on www.sec.gov.This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any security in any jurisdiction
A Gold Focused Royalty/Stream Company
3
Available Capital2~ US$800 Million
Free Cash FlowMargin3 > 75%Overhead/mkt cap <0.3%
Dividend ~1.6%8 years of increases$0.84 annualizedAristocrat Index
$7.9 Billion1
Market Cap ($US)
FNV on TSX & NYSES&P/TSX 60GDX
Top ShareholdersBlackRockFidelityT. Rowe Price
1. As at October 20, 2015.2. Refer to slide 12 for details3. Please see note 2 on slide 28
Board of DirectorsPierre Lassonde, Chair
David Harquail, CEO
Tom Albanese
Derek Evans
Graham Farquharson
Dr. Catharine Farrow
Louis Gignac
Randall Oliphant
Hon. David R. Peterson
Free cash flow
The Gold Investment that Works
4FNV and S&P/TSX Global Gold Index converted to USD. Chart to October 20, 2015.1. From IPO to October 20, 2015 – includes dividends.
~22% CAGR1 since IPO-100%
-50%
0%
50%
100%
150%
200%
250%
300%
2008 2009 2010 2011 2012 2013 2014 2015
FNV
GOLD
FNV IPO: Dec 2007
S&P/TSX Global Gold Index
Duketon
Our Business Principles
5
Long term optionality
MaximizeExploration upside
Security of tenure
Focus on new investments
MinimizeCost exposures
Potential for encroachments
Involvement in operations
Goldstrike Candelaria
Business Model Benefits
6
Risk of:Capital Costs
Operating & Other Costs
Benefit of:Leverage to Gold Price
Exploration & Expansion
Dividend Yield
FNV provides yield and more upside than a gold ETF with less risk than an operator
1. Revenue royalties & streams.2. Source: SPDR® Gold Trust.
FNV0%1
0%1
>1
100%
~2.0%
Gold ETF0%
0%
1
0%
(0.4%)2
Operators100%
100%
>1
100%
0 - 2%
Franco‐Nevada since IPO
7
Revenue(US$ millions)
Producing Mineral Assets3
Adjusted Net Income1
(US$ per share)
1. Please see note 1 on slide 282. Please see note 3 on slide 283. As at December 31
Market Capitalization3
(US$ billions)Working Capital2
(US$ millions)Dividends
(US$ per share)
2015 Q2 Revenue Sources
8
By Commodity By Geography
88% Precious Metals82% from Americas
~400 Assets
9
GOLD ASSETSU.S. Latin AmericaGoldstrike Candelaria
Gold Quarry Antamina
Marigold Palmarejo
Fire Creek/Midas Cobre Panama
Canada Rest of WorldDetour MWS
Sudbury Sabodala
Golden Highway Tasiast
Musselwhite Subika
Timmins West Karma
Kirkland Lake Duketon
See our Annual Information Form filed on www.sedar.com on March 25, 2015 and 2015 Asset Handbook for further detail.1. Please refer to breakdown on slide 12
PGMStillwater
Sudbury
Pandora
OtherWeyburn – oil
Midale – oil
Edson – gas / ngl’s
Mt. Keith – nickel
Available Capital~ $800 Million1
Most diversified portfolio
Positive Portfolio News in 2015
10
Producing Advanced Exploration
46 41 174As at October 20, 2015
Candelaria • Lundin’s new mine plan: 26% increase in GEOs 2016-1019
Timmins West • Lakeshore Gold’s new 144 GAP zone discovery
Duketon • Regis’ new discoveries at Baneygo & Tooheys Well
Macassa • Kirkland Lake’s production growth & exploration success
Fire Creek/Midas • Klondex’s exploration success & 2015 production increase
Marigold • Silver Standard exploration success & Valmy claims
Goldstrike • Barrick’s TCM ramp-up / South Arturo: production in 2016
Karma • True Gold on track for 2016 start-up
Guadalupe • Coeur now producing and has expanded reserves
Sabodala • Teranga’s Gora production in Q4
Brucejack • Pretium’s $540 million construction financing
Phoenix • Rubicon’s first gold pour
Cerro Moro • Yamana construction decision
Sissingue • Perseus commencing construction
Ity • Endeavour Mining acquistition
Hardrock • Centerra’s $300 million investment
Monument Bay • Yamana acquired the asset
16 new exploration
royalties with Noront
transaction
Adding new
ounces
Projects being
advanced
New stronger
sponsorship
By-product streamsPalmarejo – Coeur MiningCobre Panama – First Quantum
Existing 3rd party royalties
Cerro Moro – Yamana GoldBrucejack – Pretium ResourcesHardrock – Premier Gold Mines
New Investment Opportunities
11
Since 1985
3
Primary product funding
Kirkland Lake – Kirkland Lake GoldStibnite Gold – Midas GoldKarma – True Gold Mining
M&A fundingSabodala – Teranga GoldFire Creek/Midas – Klondex MinesCandelaria – Lundin Mining
Since 2008
Since 2011
Since 2013
RefinancingAntamina – Teck Resources*Since
2015
* See Appendix Slides
Capital Available Post Transaction
12
Capital Resources
Working Capital1 $ 688 million
Marketable Securities1 80 million
Credit Facility (including accordion) 1,000 million
Antamina Funding (610 million)
Cobre Panama commitments (2015)2 (330-340 million)
Other 2015 commitments (~15 million)
Total Available Capital $ ~ 800 million
1. As at June 30, 20152. Expect initial funding of $330-340 million in October
Plus Ongoing Cash Flow
Franco‐Nevada Provides:
13At October 20, 2015; FNV and S&P/TSX Global Gold Index converted to USD
Gold exposure at a discount
Growth – organic and acquisitions
Dividends vs. ETF fees
FNV IPO: Dec 2007
Why own a gold ETF?
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
2008 2009 2010 2011 2012 2013 2014 2015
FNV
GOLD
S&P/TSX Global Gold Index
Q&A
14
Cautionary Note Regarding Mineral Reserve and Resource EstimatesThis presentation has been prepared in accordance with the requirements of Canadian securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral resource and reserve estimates included in this presentation have been prepared in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian securities regulatory authorities which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC, and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. U.S. Investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Under Canadian rules, estimated “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves reported by the Corporation in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards. Accordingly, information containing descriptions of the Corporation’s mineral properties set forth herein may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.
October 2015 Antamina Investment
15
Antamina:• Established mine with 14 years of
operating history
• 8th largest copper mine in the world
• One of the lowest cost operations globally
• Wholly owned mining infrastructure, including the concentrate pipeline and port facilities
• Ownership:• Teck - 22.50%• BHP Billiton Plc - 33.75%• Glencore Plc - 33.75%• Mitsubishi Corporation - 10.00%
Transaction Overview
16
• US$610 stream on Teck’s 22.50% share of silver produced at Antamina• Silver payability in concentrates are fixed at 90% • FNV will make ongoing payments of 5% of the spot silver price per ounce delivered• Stream reduces by one-third after 86 million ounces delivered (currently forecast to be ~30 years)
• Stream applies to all existing claims and concessions owned by Antamina
Antamina open pit
Structure Overview
17
• Structured in Canada: Stream funded by a Canadian subsidiary of FNV
• Dual Obligation: Joint and several obligation between:• Teck Resources Ltd. (Teck parent company)• The single purpose, debt-free entity holding Teck’s direct interest in Antamina
• Conventional Stream: Stream deliveries are an absolute obligation of the sellers and are not contingent on the project cash flow
Antamina tailings facility, truck-shop, mill and waste dumps
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
Antamina
Cananea
Grasberg
El Teniente
Los Pelambres
Escondida
Radomiro Tom
ic
Norilsk
Collahuasi
Chuquicamata
Los Bronces
Morenci
Kansanshi
Polish Copper
Andina
2014 C1 Cash Cost ($/lb)
Top‐Tier Copper Asset
18Source: BMO Capital Markets
Amongst the lowest cost of the major copper mines
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Cumulative Production
Antamina
More Than US$6.5 Billion Invested
19
• Approximately 150,000 tpd processing facility; large scale operating efficiencies
• 302 km pipeline with capacity of 2.5 - 3.0 million tonnes per year of concentrate
• Thickener and dewatering facilities at the port, along with concentrate storage, ship loader and water treatment facilities
• 100%-owned downstream infrastructure• No 3rd party payments for concentrate shipment via pipeline or for port access
Concentrate Pipeline Port Facilities at Huarmey
1. Source: BMO Capital Markets, 2014 production and cost data
OreAs of December 31, 2014 Mt Cu Zn Ag Cu Zn Ag
(%) (%) (g/t) (000 t) (000 t) (000 oz )
Proven Reserves 210 1.02 0.80 11.2 2,142 1,680 75,620
Probable Reserves 437 0.90 1.07 10.4 3,933 4,676 146,121
Total Mineral Reserves 647 0.94 0.98 10.7 6,082 6,341 222,580
Measured and Indicated Resources 1,136 0.89 0.82 10.6 10,110 9,315 387,152
Inferred Resources 1,280 0.84 0.66 11.4 10,752 8,448 469,151
Grade Contained Metal
A High Grade Orebody
20
• Antamina has 1,136 million tonnes of M&I resources and 1,280 million tonnes of Inferred resources1
• Total M&I resources are sufficient to support over 20 years of open pit mining
• Historically a high rate of Inferred resources have converted to M&I resources• Including similar conversion of Inferred resources, could support mining for 30 – 40 years
1. Source: Glencore Statement of Resources & Reserves as at December 31, 2014. See slide 27 for full details2. Rows and columns may not add up due to rounding
1,2
• Beyond the open pit scenarios being studied, there are existing high grade copper resources at depth
• Underground expansion potential may be amenable to bulk mining methods, extending possible mine life beyond 40 years
Underground Potential Within Resource Model
21Source: Franco-Nevada generated section
Representative cross-section of the Antamina block model
Underground Potential Beyond Resource Model
22
• Drill intercepts extend ore-grade mineralization more than 575 meters below the block model (total mineralized depth of 1,250 m below depth of the pit)
Source: Teck Resources
Resource limit of Block Model
Resource limit of Block Model
Regional Target Potential
23
• Stream agreement covers entire >700km2 concession
• Regional land package hosts multiple large scale geological targets
• A large scale skarn, potentially similar to Antamina, is located 10km from the mine
• There are broad regional mineralized Cu-Au and Cu-Mo anomalies – both with associated silver
View looking south from pit with camp and fresh water dam on the right
A Cornerstone Investment For Franco‐Nevada
24
• Stream agreement effective July 1st, 2015:• Silver is delivered to FNV 45 days after quarter-end• Silver contained in concentrate shipments from Q3/2015 will be recognized as silver sold in Q4/2015• 900,000 to 1,100,000 ounces of silver (12,300 to 15,000 GEOs)1 expected to be sold in 2015
• Forecast average annual stream ounces of:• 2.8 to 3.2 million ounces of silver (38,200 to 43,600 GEOs)1
• 2016 & 2017 deliveries are expected to be above average
1. Based on $1,100/oz gold and $15.00/oz silver
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 Forecastedaverage to FNV
million ou
nces Ag
Historical silver production assuming a 22.5% interest and 90% payability
Pro‐Forma 2015 Commodity Revenue Split
251. Assumes six month 2015 actual annualized for full year and full year revenue assumed for Antamina
Precious Metals >90%1
Transaction Checks All Boxes
26
.
Immediate Cash Flow • One quarter of silver production expected in Q4/2015
Accretive • GEOs, revenue, cash flow and EPS
Low cost operation • One of the lowest cost major Cu producers`
Optionality • Long life exposure to multiple cycles
• Resource, exploration and expansion upside
Notes:1. Source: Glencore Statement of Resources & Reserves as at December 31, 2014. Mineral Resources and Reserves are estimated in accordance with the JORC Code.2. Contained metals were calculated by Phil Wilson, CEng, Vice President, Technical of Franco-Nevada and a qualified person under National Instrument NI 43-101.3. Columns and rows may not add up due to rounding. 4. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 5. Zinc is not recovered from Copper Ores and molybdenum is not usually recovered from Copper-Zinc Ores or from Copper Ores with high bismuth.6. Mineral Reserve cut-off grades are based on the following metal price assumptions (as disclosed in Teck’s Annual Information Form dated March 2, 2015):
Antamina Mineral Reserves & Resources
27
28
1. Adjusted Net Income and Adjusted Net Income per share are non-IFRS financial measures, which excludes the following from net income and net income per share: foreign exchange gains/losses and other income/expenses; gains/losses on the sale of investments; impairment charges related to royalty, stream and working interests and investments; unusual non-recurring items; and the impact of income taxes on these items. See the following appendix for non-IFRS reconciliation.
2. Margin is defined by the Company as Adjusted EBITDA divided by revenue. See the following appendix for non-IFRS reconciliation.
3. Working Capital is a Non-IFRS financial measure. The Company defines Working Capital as current assets less current liabilities.
Three months ended
December 31, Twelve months ended
December 31, (expressed in millions, except per share amounts) 2014 2013 2014 2013 Net Income (Loss) $ 1.2 $ (80.6) $ 106.7 $ 11.7
Foreign exchange (gains)/losses and other (Income)/expenses, net of income tax 1.1 0.5
1.6
2.3
Mark-to-market changes on derivatives, net of income tax 0.1 1.7
(1.1)
9.9
Impairment of royalty, stream and working interests, net of income tax 29.4 83.3
29.5
83.3
Impairment of investments, net of income tax 0.4 25.6 0.4 30.8 Indexation adjustment (0.6) - 0.4 - Credit facility costs written off, net of income tax - - - 0.3
Adjusted Net Income $ 31.6 $ 30.5 $ 137.5 $ 138.3 Basic Weighted Average Shares Outstanding 156.2 147.1 150.5 146.8 Basic EPS $ 0.01 $ (0.55) $ 0.71 $ 0.08
Foreign exchange(gains)/losses and other (income)/expenses, net of income tax 0.01 0.01
0.01
0.02
Mark-to-market changes on derivatives, net of income tax - 0.01
-
0.07
Impairment of royalty, stream and working interests, net of income tax 0.19 0.57
0.20
0.57
Impairment of investments, net of income tax - 0.17 - 0.20 Indexation adjustment (0.01) - (0.01) -
Adjusted Net Income per share $ 0.20 $ 0.21 $ 0.91 $ 0.94
Non IFRS Measures
Three months ended
June 30, Six months ended
June 30,
(in millions, except per share amounts and margin) 2015 2014 2015 2014 Net Income (Loss) $ 21.6 $ 36.9 $ 40.8 $ 72.3
Income tax expense 11.3 12.7 20.3 27.1 Finance costs 0.5 0.4 0.9 0.8 Finance income (1.1) (1.1) (1.9) (1.8) Depletion and depreciation 49.1 39.6 100.8 75.7 Non-cash costs of sales 2.2 - 3.3 - Impairment of royalty, stream and
working interests - -
0.1
-
Foreign exchange (gains)/losses and other (income)/expenses (1.4) (1.3)
1.2
(2.1)
Adjusted EBITDA $ 82.2 $ 87.2 $ 165.5 $ 172.0 Basic Weighted Average Shares Outstanding 156.7 146.8
156.7
147.3
Adjusted EBITDA per share $ 0.53 $ 0.59 $ 1.06 $ 1.17 Adjusted EBITDA $ 82.2 $ 87.2 $ 165.5 $ 172.0
Revenue 109.4 107.7 218.6 211.8 Margin 75.1% 81.0% 75.9% 81.2%
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