Franco-Nevada Corp (FNV) 2022 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Franco-Nevada Corporation's Third Quarter 2022 Results Conference Call and Webcast. At this time, the call is being recorded November 7, 2022. (Operator Instructions)

早上好，女士們，先生們，歡迎來到 Franco-Nevada Corporation 的 2022 年第三季度業績電話會議和網絡廣播。目前，通話記錄為 2022 年 11 月 7 日。（操作員說明）

I would now like to turn the conference over to your host, Bonavie Tek, Vice President, Finance. Please go ahead.

我現在想將會議轉交給你的主持人，財務副總裁 Bonavie Tek。請繼續。

Thank you, Michelle. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's third quarter 2022 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.

謝謝你，米歇爾。大家，早安。感謝您今天加入我們討論 Franco-Nevada 的 2022 年第三季度業績。伴隨此次電話會議的是一份演示文稿，可在我們的網站 franco-nevada.com 上獲取，您還可以在該網站上找到我們的完整財務結果。該演示文稿也可在網絡廣播中觀看。

During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks; Sandip Rana, Chief Financial Officer, will provide a brief review of our results; and Eaun Gray, Senior Vice President, Business Development, will provide an overview of our recent Magino transaction. 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 the webcast.

在我們今天上午的電話會議中，Franco-Nevada 總裁兼首席執行官 Paul Brink 將發表介紹性講話；首席財務官 Sandip Rana 將簡要回顧我們的業績；業務發展高級副總裁 Eaun Gray 將概述我們最近的 Magino 交易。隨後是問答環節。我們完整的執行團隊可以回答任何問題。與會者可以通過電話或網絡廣播提交問題。

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 3 of this presentation.

我們想提醒與會者，今天的一些評論可能包含前瞻性信息，我們建議您參閱本演示文稿幻燈片 3 中的詳細警示說明。

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

我現在將把電話轉給 Franco-Nevada 總裁兼首席執行官 Paul Brink。

Thanks, Bonavie, and good morning. I'd like to start by announcing that Jacques Perron will be joining our Board of Directors. We pride ourselves on the technical capabilities of our Board, and Jacques will certainly add in that area amongst others. Jacques' had a very successful career in the industry, has led a number of companies, and I'm sure as well known to most of you. We got to know Jacques through his running companies, where we have royalty interest, in particular, while he is CEO of Pretium offering Brucejack and as the CEO of St Andrew Goldfields running Holt and Holloway. Jacques, welcome to the Board of Franco-Nevada.

謝謝，Bonavie，早上好。首先，我想宣布 Jacques Perron 將加入我們的董事會。我們為董事會的技術能力感到自豪，Jacques 肯定會在該領域發揮作用。 Jacques 在該行業的職業生涯非常成功，領導過多家公司，我相信你們中的大多數人都知道他。我們是通過他經營的公司認識 Jacques 的，尤其是在他擔任 Pretium 的 CEO 和 Brucejack 以及經營 Holt 和 Holloway 的 St Andrew Goldfields 的 CEO 時，我們對這些公司有特許權使用費的興趣。 Jacques，歡迎來到 Franco-Nevada 董事會。

Turning to our Q3 results, we saw good underlying production from our diversified portfolio of assets in the quarter. While precious metal prices declined, the impact on our revenue in the quarter was partially offset by higher energy prices. Our Q3 GEOs are lower than Q2 -- than Q2 with 2 main items. While Cobre Panama had record production for the quarter, the strong performance isn't fully reflected in our Q3 GEO sales due to the timing of shipments. We also had a lot of contribution from our Vale iron ore royalty. Despite these items, Franco-Nevada has earned record GEOs, revenue, adjusted net income and adjusted EBITDA for the 3 quarters through September.

談到我們第三季度的業績，我們看到本季度多元化資產組合的基礎生產良好。雖然貴金屬價格下跌，但本季度對我們收入的影響被能源價格上漲部分抵消。我們的第三季度 GEO 低於第二季度——低於第二季度，有 2 個主要項目。雖然 Cobre Panama 本季度的產量創歷史新高，但由於出貨時間的原因，強勁的表現並未完全反映在我們第三季度的 GEO 銷售額中。我們的淡水河谷鐵礦石特許權使用費也為我們做出了很多貢獻。儘管有這些項目，Franco-Nevada 在截至 9 月的三個季度中獲得了創紀錄的 GEO、收入、調整後淨收入和調整後 EBITDA。

We're on track to meet our 2022 guidance. We expect to be at the higher end of our overall GEO guidance range and at the lower end of our precious metal range. The weaker gold price environment has led to an increase in demand for royalty and stream financing and in our business development activity. We're pleased to have acquired a royalty on Argonaut's Magino project in Ontario currently advancing through construction.

我們有望實現 2022 年的指導方針。我們預計將處於我們整體 GEO 指導範圍的高端和貴金屬範圍的低端。疲軟的金價環境導致對特許權使用費和流融資以及我們的業務發展活動的需求增加。我們很高興獲得安大略省 Argonaut 的 Magino 項目的特許權使用費，該項目目前正在建設中。

The projects had its issues with cost overruns made only tougher in this inflationary environment, although, we believe Argonaut now has a good line of sight on completing construction as planned. The asset has great upside. The current mine plan is a small portion of the total resource, and we believe far more oil will be recovered over the life of the mine.

這些項目存在成本超支的問題，在這種通貨膨脹的環境下只會變得更加艱難，不過，我們相信 Argonaut 現在有望按計劃完成建設。該資產有很大的上漲空間。目前的礦山計劃只佔總資源的一小部分，我們相信在礦山的生命週期內將回收更多的石油。

Last quarter, we announced the financing package we had provided to G Mining for the construction of the Tocantinzinho project in Brazil. Since then, the Company has received its license extensions and has commenced construction. Magino and Tocantinzinho add to a growing list of mine builds in our portfolio, most advanced are Salares Norte and Seguela, which are scheduled to start production next year along with Magino. We expect to see the first gold ounces from Greenstone, Mara Rosa and Tocantinzinho in 2024 and Valentine Lake is scheduled to start in 2025.

上個季度，我們宣布了為 G Mining 提供的用於建設巴西 Tocantinzinho 項目的融資方案。此後，公司已收到許可證延期並開始建設。 Magino 和 Tocantinzinho 在我們的投資組合中增加了越來越多的礦山建設清單，最先進的是 Salares Norte 和 Seguela，它們計劃於明年與 Magino 一起投產。我們預計 Greenstone、Mara Rosa 和 Tocantinzinho 將在 2024 年看到第一批黃金盎司，Valentine Lake 計劃於 2025 年開始。

Our other growth driver is mine expansions. The Cobre Panama expansion is on track to reach 100 million tonne per annum of throughput by late 2023. First Quantum commented this quarter that the mill has performed at the 95 million tonne per annum rate and expect by year-end, it will operate sustainably at the 90 million tonne per annum rate.

我們的另一個增長動力是礦山擴張。到 2023 年底，Cobre Panama 的擴建有望達到每年 1 億噸的吞吐量。第一量子在本季度評論說，該工廠的表現已達到每年 9500 萬噸，預計到年底，它將以可持續的速度運營每年 9000 萬噸。

At Detour Lake, Agnico have discussed their plans to produce greater than 1 million ounces per year. The expansion work was ongoing through the quarter, and they hope to meet the near-term throughput target of 28 million tonne per annum ahead of schedule. On the other hand, Stillwater have reduced their growth plans to 700,000 PGM ounces by 2027, down from 850,000 PGM ounces previously expected. The other mine expansions at Tasiasta, Macassa, Odyssey and Island Gold are all progressing well.

在 Detour Lake，Agnico 已經討論了他們每年生產超過 100 萬盎司的計劃。擴建工作一直持續到本季度，他們希望提前實現每年 2800 萬噸的近期吞吐量目標。另一方面，Stillwater 已將其到 2027 年的增長計劃降至 700,000 PGM 盎司，低於此前預期的 850,000 PGM 盎司。 Tasiasta、Macassa、Odyssey 和 Island Gold 的其他礦山擴建均進展順利。

We continue to advance our ESG effort on a number of fronts. During the quarter, we have awarded 4 scholarships to diverse mining students at McGill, UofT and Queens. We committed 225,000 of funding for community programs, as part of the Magino transaction. The number of programs we're funding are also currently being implemented, including community water infrastructure at Antapaccay, an education initiative in partnership with Antamina and community waste management at Cascabel.

我們繼續在多個方面推進我們的 ESG 工作。在本季度，我們向麥吉爾大學、多倫多大學和皇后區的不同礦業學生頒發了 4 項獎學金。作為 Magino 交易的一部分，我們承諾為社區項目提供 225,000 美元的資金。我們資助的項目數量目前也在實施中，包括 Antapaccay 的社區供水基礎設施、與 Antamina 合作的教育計劃和 Cascabel 的社區廢物管理。

In summary, we're blessed with a business model that's high margin, largely immune to cost inflation and exposes our shareholders to tremendous long-term optionality.

總而言之，我們有幸擁有一種高利潤的商業模式，在很大程度上不受成本膨脹的影響，並使我們的股東面臨巨大的長期選擇權。

With the prospect of global recession, it's a great comfort to have no debt, $2 billion in available capital and to be generating operating cash flow at a rate that's close to $1 billion per year. You'll recall that last year, the Board moved the annual dividend review earlier in the year, and we expect the same timing in 2023, with the dividend declaration in January for the first quarter dividend that's paid in March.

面對全球經濟衰退的前景，沒有債務、20 億美元的可用資本並以每年接近 10 億美元的速度產生運營現金流是一種極大的安慰。你會記得去年，董事會在今年早些時候移動了年度股息審查，我們預計 2023 年的時間相同，即在 1 月份宣布 3 月份支付的第一季度股息的股息。

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

有了這個，我會把電話交給 Sandip。

Thank you, Paul. Good morning, everyone. As Paul mentioned, the Company saw strong underlying production from our diverse portfolio of assets during the quarter. The majority of the mining assets performed in line with expectations. Revenue and earnings were impacted by weaker precious metal commodity prices and timing of deliveries for certain assets. The one area of the business that continued to deliver strong financial results was the Energy division.

謝謝你，保羅。大家，早安。正如 Paul 所提到的，公司在本季度看到了我們多元化資產組合的強勁基礎生產。大多數礦業資產的表現符合預期。收入和收益受到貴金屬商品價格疲軟和某些資產交付時間的影響。繼續提供強勁財務業績的業務領域之一是能源部門。

On Slide 4, we've highlighted the gold and gold equivalent ounces sold for the 3 and 9 months ended September 30th, 2022 and 2021. Overall, GEOs sold were relatively flat when compared to prior year, with third quarter GEOs sold being [176,408 compared to 177,578] in third quarter 2021. Of this precious metal GEOs were [120,542 down 7,150] GEOs from prior year. The largest contributors to the lower precious metal GEOs were Stillwater, Antamina and Cobre Panama.

在幻燈片 4 上，我們強調了截至 2022 年 9 月 30 日和 2021 年 9 月 30 日止的第 3 個月和第 9 個月售出的黃金和黃金等量盎司。總體而言，售出的 GEO 與去年同期相比相對持平，第三季度售出的 GEO 為 [176,408與 2021 年第三季度的 177,578 相比。在這些貴金屬 GEO 中，與去年同期相比 [120,542 減少 7,150]。對較低貴金屬 GEO 貢獻最大的是 Stillwater、Antamina 和 Cobre Panama。

The lower contribution of GEOs from Stillwater was the result of the mine production being temporarily suspended, as a result of flooding in the area in late June. The mine resumed operations in late July. Also, the amount of GEOs sold from Stillwater was lower due to the impact of lower platinum and palladium prices on the conversion to GEOs.

來自 Stillwater 的 GEO 的貢獻較低是由於 6 月下旬該地區發生洪水導致礦山生產暫時停止的結果。該礦於 7 月下旬恢復運營。此外，由於較低的鉑金和鈀金價格對轉換為 GEO 的影響，從 Stillwater 出售的 GEO 數量較低。

For Antamina, we expected 2022 to be a more normalized year with silver ounce deliveries to be in the range of 2.8 million ounces to 3.2 million ounces. This is what is transpiring for the first 9 months of the year. However, we've recorded less GEO sold than expected, as the gold to silver ratio has weakened this year, resulting in less GEO sold on conversion of silver ounces.

對於 Antamina，我們預計 2022 年將是更加正常化的一年，白銀盎司交付量將在 280 萬盎司至 320 萬盎司之間。這就是今年前 9 個月正在發生的事情。然而，我們記錄的 GEO 銷量低於預期，因為今年黃金與白銀的比率已經走弱，導致以銀盎司換算後的 GEO 銷量減少。

At Cobre Panama, First Quantum achieved production during third quarter. However, due to timing of shipments, gold and silver deliveries and ounces sold were lower than expected for Franco-Nevada during the quarter. We expect higher deliveries from Cobre Panama in fourth quarter.

在 Cobre Panama，第一量子在第三季度實現了生產。然而，由於發貨時間的原因，本季度佛朗哥-內華達州的黃金和白銀交付量和售出盎司數低於預期。我們預計第四季度 Cobre Panama 的交付量會增加。

Offsetting the lower GEOs sold from the assets mentioned, we had strong third quarter performance from Candelaria and Tasiast compared to prior year. For diversified GEOs, our Vale Royalty resulted in just over 3,600 GEOs for the quarter. This was lower than prior year due to lower production and lower iron ore prices. Also this quarter, the true-up recorded related to the period January 1st to June 30th, 2022, resulted in a revenue reversal of approximately [$1.6 million].

與上一年相比，Candelaria 和 Tasiast 的第三季度業績強勁抵消了上述資產出售的較低 GEO。對於多元化的 GEO，我們的 Vale Royalty 在本季度產生了超過 3,600 個 GEO。由於產量下降和鐵礦石價格下降，這一數字低於上年。同樣在本季度，與 2022 年 1 月 1 日至 6 月 30 日期間相關的調整記錄導致收入逆轉約 [160 萬美元]。

As you know, each quarter, we make an estimate of what the royalty will be with the actual amount being announced by Vale in late March and September each year. As a result, you will see these types of adjustments to our accruals twice a year, Q1 and Q3. Energy GEOs increased by 54% year-over-year, as we benefited from continued higher energy prices.

如您所知，每個季度，我們都會根據淡水河谷每年 3 月下旬和 9 月公佈的實際金額估算特許權使用費。因此，您將在第一季度和第三季度看到我們每年兩次對應計利潤進行此類調整。由於我們受益於持續上漲的能源價格，能源 GEO 同比增長 54%。

Slide 5 highlights our total revenue and adjusted EBITDA amounts for the 3 and 9 months ended September 30th, 2022 and 2021. As you can see from the bar charts, revenue, adjusted EBITDA have decreased year-over-year for the 3 months. The Company recorded $304.2 million in revenue in third quarter and $256.7 million in adjusted EBITDA, a margin of 84.4% was achieved.

幻燈片 5 突出顯示了我們截至 2022 年 9 月 30 日和 2021 年 9 月 30 日的第 3 個月和第 9 個月的總收入和調整後的 EBITDA 金額。從條形圖中可以看出，這 3 個月的收入、調整後的 EBITDA 同比下降。公司第三季度收入為 3.042 億美元，調整後 EBITDA 為 2.567 億美元，利潤率為 84.4%。

Partially offsetting the lower contribution from precious metals in the quarter was a continued strong contribution from the energy asset, as revenue increased from $55.1 million a year ago to $83.8 million this quarter. The West Texas intermediate oil price averaged just over $91 per barrel during the quarter, a 30% increase from prior year.

能源資產的持續強勁貢獻部分抵消了本季度貴金屬的較低貢獻，收入從一年前的 5510 萬美元增加到本季度的 8380 萬美元。本季度西德克薩斯中質油平均價格略高於每桶 91 美元，比去年同期上漲 30%。

Natural gas prices were also higher with Henry Hub averaging $7.91 per Mcf during the quarter compared to $4.32 per Mcf a year ago. For the 9 months year-to-date, both revenue and adjusted EBITDA are higher than prior year, new records for the Company.

與一年前的每千立方英尺 4.32 美元相比，Henry Hub 在本季度的天然氣價格也更高，平均為每千立方英尺 7.91 美元。今年迄今的 9 個月，收入和調整後的 EBITDA 均高於去年，創下公司新紀錄。

As you turn to Slide 6, you'll see the key financial results for the Company. Although, GEOs were relatively flat, revenue, as mentioned, declined because of lower commodity prices. On the cost side, our cost of sales was flat, which is consistent with the flat year-over-year GEO sold. Cost of sales is dependent on which assets deliver stream ounces, as not all fixed payments per stream ounce are equal, as well, the cash cost per GEO, which was $238 this quarter, will fluctuate depending on the mix of royalty versus stream GEOs, including mining and energy. But at current average gold prices, the Company continues to generate significant margins.

當您轉到幻燈片 6 時，您將看到公司的主要財務業績。儘管 GEO 相對持平，但如上所述，由於商品價格下跌，收入有所下降。在成本方面，我們的銷售成本持平，這與銷售的 GEO 同比持平一致。銷售成本取決於交付流量盎司的資產，因為並非每盎司流量的所有固定付款都是相等的，而且，每個 GEO 的現金成本（本季度為 238 美元）將根據特許權使用費與流量 GEO 的組合而波動，包括採礦和能源。但以目前的平均黃金價格計算，公司繼續產生可觀的利潤率。

Depletion decreased to $68.5 million versus $73 million a year ago. Depletion is based on actual mining GEO sold and barrels of oil equivalent received on the energy side of the business, as we received less GEO from Antamina, Vale and Cobre Panama. This impacted depletion, as those assets are higher per ounce depletion assets.

消耗減少至 6850 萬美元，而一年前為 7300 萬美元。消耗是基於實際出售的採礦 GEO 和業務能源方面收到的石油當量桶數，因為我們從 Antamina、Vale 和 Cobre Panama 收到的 GEO 較少。這影響了消耗，因為這些資產每盎司消耗資產更高。

With respect to taxes, the effective tax rate for the quarter was 16.2%, which is higher than the 15% we have trended to previously. This was due to higher income being generated in Canada and the United States from our energy assets. Adjusted net income was $159.7 million or $0.83 per share for the quarter.

在稅收方面，本季度的有效稅率為 16.2%，高於我們之前預測的 15%。這是由於我們的能源資產在加拿大和美國產生了更高的收入。本季度調整後淨收入為 1.597 億美元或每股 0.83 美元。

Slide 7 highlights the continued diversification of the portfolio, which we consider one of the strengths and differentiators of Franco-Nevada has shown just over 70% of our Q3, 2022 revenue was generated by precious metals. The geographic revenue profile has revenue being sourced 90% from the Americas, with Canada and the U.S. being 42%.

幻燈片 7 強調了投資組合的持續多元化，我們認為這是 Franco-Nevada 的優勢和差異化因素之一，顯示我們 2022 年第三季度超過 70% 的收入來自貴金屬。地理收入概況中，90% 的收入來自美洲，加拿大和美國占 42%。

With respect to asset diversification, Cobre Panama was our largest revenue generator at 15% of total revenue for the quarter, followed by Candelaria and Antapaccay. Cobre Panama continues to be the only asset greater than 10% of revenue.

在資產多元化方面，Cobre Panama 是我們最大的收入來源，佔本季度總收入的 15%，其次是 Candelaria 和 Antapaccay。 Cobre Panama 仍然是唯一一家收入超過 10% 的資產。

And the last chart highlights our operator diversity, our largest exposure to revenue being generated by any one operator is 15%, which is First Quantum, who operates Cobre Panama.

最後一張圖表突出了我們運營商的多樣性，我們對任何一家運營商產生的收入的最大敞口是 15%，即運營 Cobre Panama 的 First Quantum。

The other cost component for the Company beside the cost of sales is our corporate administration costs. The chart on Slide 8 highlights our quarterly revenues and our quarterly corporate admin and share-based compensation expense since our IPO. As you can see, revenues have grown significantly over the period shown, while corporate costs have remained fairly stable.

除銷售成本外，公司的其他成本構成是我們的企業管理成本。幻燈片 8 上的圖表突出顯示了自首次公開募股以來我們的季度收入以及我們的季度公司管理和基於股份的補償費用。如您所見，收入在所示期間顯著增長，而企業成本保持相當穩定。

For Q3, 2022, corporate admin, including share-based comp, was $5.1 million or less than 2% of revenue. Management believes we can continue to add to the portfolio and grow our business without adding significant cash overhead to the Company.

2022 年第三季度，企業管理（包括基於股份的補償）為 510 萬美元，佔收入的不到 2%。管理層認為，我們可以繼續增加投資組合併發展我們的業務，而不會給公司增加大量現金開銷。

On Slide 9, we reiterate our guidance for the year based upon updated commodity prices, as highlighted on the slide and our expectations of production from our royalty and stream interest for fourth quarter, we are forecasting that we'll be at the high end of the total GEO sold guidance of [680,000 to 740,000]. Also, we expect to have a higher contribution of GEO sold from our diversified assets than our original plan.

在幻燈片 9 上，我們根據更新後的商品價格重申了今年的指導，正如幻燈片中強調的那樣，以及我們對第四季度特許權使用費和流量利息的產量預期，我們預測我們將處於高端GEO 的總銷量指導為 [680,000 至 740,000]。此外，我們預計從我們的多元化資產中出售的 GEO 的貢獻將高於我們的原計劃。

I will now turn it over to Eaun, who will speak to our recent Magino transaction.

現在我將把它交給 Eaun，他將談到我們最近的 Magino 交易。

Thank you, Sandip. In October, we were very pleased to complete the Magino royalty and equity finance. We are delighted to work with the Argonaut team and its bank syndicate to provide a financing solution for the project, which is expected to go into production next year. The project design is conventional from a technical standpoint and is located in excellent mining jurisdiction, Ontario. We believe that there is good potential in the broader land package over time in this exciting district next to Island Gold, where we also have a royalty. We've included key project parameters on this slide and highlight the recent quarterly update, where Argonaut noted, the Magino project is now 70% complete.

謝謝你，桑迪普。 10月，我們非常高興地完成了Magino特許權使用費和股權融資。我們很高興與 Argonaut 團隊及其銀團合作，為該項目提供融資解決方案，該項目預計明年投產。該項目設計從技術角度來看是傳統的，位於安大略省優秀的礦業管轄區。我們相信，隨著時間的推移，在 Island Gold 旁邊的這個令人興奮的地區，更廣泛的土地包具有良好的潛力，我們也在那裡擁有特許權使用費。我們在這張幻燈片中包含了關鍵項目參數，並突出顯示了最近的季度更新，Argonaut 指出，Magino 項目現已完成 70%。

Moving to the next slide, Slide 11, we highlight our available capital of $2 billion. Equity valuations of mine developers remain particularly depressed in this high inflation environment, and we believe we can put capital to work partnering with some of the best development projects and help them to differentiate themselves.

轉到下一張幻燈片，即幻燈片 11，我們強調了我們 20 億美元的可用資本。在這種高通脹環境下，礦山開發商的股票估值仍然特別低迷，我們相信我們可以將資本投入到與一些最佳開發項目的合作中，幫助他們脫穎而出。

With that, I'll hand it back to the operator for any questions. Thank you.

有了這個，我會把它交還給接線員以解決任何問題。謝謝你。

(Operator Instructions) The first question on the phone line is from -- comes from [Heiko Ihle] of H.C. Wainwright.

（操作員說明）電話線上的第一個問題來自——來自 H.C. 的 [Heiko Ihle]。溫賴特。

It's Heiko not Hector. And just [wanted to] extend my congratulations to Jacques. I had the pleasure of working with him when he was with Pretium and it was a pleasure. So congratulations to all of you. I hear more and more about -- I hear more and more about 4 sellers in the market. I mean that's just one example, and I understand this is not a perfect comp, $50 million deal happened today, where the seller specifically stated that the deal removed financing overhang. Obviously, this is sort of a special situation thing, but can you provide some insight on what you're seeing with pricing of distressed sales in the market?

是 Heiko 不是 Hector。只是 [想] 向雅克表示祝賀。當他在 Pretium 時，我很高興與他一起工作，這是一種樂趣。祝賀你們所有人。我越來越多地聽到——我越來越多地聽到市場上有 4 個賣家。我的意思是這只是一個例子，我知道這不是一個完美的交易，今天發生了 5000 萬美元的交易，賣方明確表示這筆交易消除了融資過剩。顯然，這是一種特殊情況，但您能否就市場上不良銷售的定價提供一些見解？

And also the sizing and the development stage that these potential streams might be in. I mean, you've hinted at some of this in your release when you go -- weaker gold price environment has led to an increase in demand for royalty and stream financing. But maybe if you could just provide some more data points, if you could?

還有這些潛在流可能處於的規模和開發階段。我的意思是，你在發佈時已經暗示了其中的一些——金價環境疲軟導致對版稅和流的需求增加融資。但也許如果你能提供更多的數據點，如果可以的話？

Sure. Heiko, it's Eaun speaking here, and thank you for the question. It's an excellent observation. I think what we see at the moment is a number of companies specifically in the precious metals space, where there is an acute need for capital, I think our transaction that we announced with Argonaut and Magino is a good case in point or the type of financings that we're looking at, at the moment. And we see good potential within the precious metal space to continue to do more of these kind of medium-sized transactions. So hopefully, going forward, there will be more like that. The size, the guidance, I think, is more towards the intermediate overall size.

當然。 Heiko，我是 Eaun，謝謝你的提問。這是一個很好的觀察。我認為我們目前看到的是許多公司，特別是在急需資金的貴金屬領域，我認為我們與 Argonaut 和 Magino 宣布的交易是一個很好的例子或類型我們目前正在考慮的融資。我們在貴金屬領域看到了繼續進行更多此類中型交易的良好潛力。所以希望未來會有更多這樣的事情發生。尺寸，指導，我認為更傾向於中等整體尺寸。

And pricing wise?

定價明智嗎？

Pricing, I think the market remains relatively competitive, but where we try to differentiate ourselves is to work with partners that value what we do and the solution that we provide. And we try to be nimble in that respect and provide value to our counterparties. And hopefully, as a result, also offer our shareholders attractive returns on the deals that we do.

定價，我認為市場仍然具有相對競爭性，但我們試圖讓自己與眾不同的地方是與重視我們所做的事情和我們提供的解決方案的合作夥伴合作。我們試圖在這方面保持敏捷，並為我們的交易對手提供價值。因此，希望我們的交易也能為我們的股東提供有吸引力的回報。

Fair enough. This was a wonderful lead into my follow-up question. And with the caveat that I've never really had it pointed out to me quite like this on a call or rather in the earnings release, with all the push towards ESG, and I mean you're actually breaking down and quantifying some of your longer-term ESG goals in this release today, are you actively avoiding investments with operators that you believe do not fulfill your longer-term ESG requirements. I guess what I'm asking is, in addition to having their social license to operate, which I assume is always a prerequisite, would you actively not invest into something because of board composition or other ESG [and airports] failures?

很公平。這是我後續問題的一個很好的線索。需要注意的是，我從來沒有真正在電話會議上或者更確切地說是在收益發布中像這樣向我指出，隨著對 ESG 的所有推動，我的意思是你實際上正在分解和量化你的一些今天此版本中的長期 ESG 目標，您是否積極避免與您認為不能滿足您的長期 ESG 要求的運營商進行投資。我想我想問的是，除了擁有他們的社會運營許可（我認為這始終是先決條件）之外，您是否會因為董事會組成或其他 ESG [和機場] 失敗而主動不投資某些東西？

Heiko, it's Paul. Yes, ESG is very important, and that the way we think of ourselves is we are allocating capital on behalf of our shareholders. We want to make sure that we do, and we want to make sure that they're comfortable that when we're allocating capital, it is into good projects. So a lot of our due diligence is focused on environmental and community impacts. And absolutely, there are projects that we look at, where there's either an existing environmental condition, maybe something in their planning that we're not comfortable with, perhaps it's a community relationship. There are deals that we've turned down for all those reasons in the past to make sure that we are supporting good projects.

海科，是保羅。是的，ESG 非常重要，我們認為自己的方式是代表股東分配資本。我們想確保我們這樣做，我們想確保他們對我們分配資金時感到舒服，這是好的項目。因此，我們的很多盡職調查都集中在環境和社區影響上。當然，我們會查看一些項目，其中要么存在現有的環境條件，要么是他們規劃中的某些我們不滿意的地方，要么是社區關係。過去我們出於所有這些原因拒絕了一些交易，以確保我們支持好的項目。

Thank you. The next question comes from John Tumazos, Very Independent Research.

謝謝你。下一個問題來自 Very Independent Research 的 John Tumazos。

Is it fair to say that your investment criteria automatically get a little more rigorous with lower metals prices because you use the spot gold price rather than an estimated future gold price in making investments, [and] you seek the bottom [quartile] of the cost curve. And in addition, in the current period of rapidly rising interest rates, [where we're] at 4% and getting higher, would you reach your hurdle rate of return to reflect current market conditions?

可以公平地說，隨著金屬價格下跌，您的投資標準會自動變得更加嚴格，因為您在進行投資時使用現貨黃金價格而不是估計的未來黃金價格，[並且]您尋求成本的底部[四分位數]曲線。此外，在當前利率快速上升的時期，[我們現在]處於 4% 並且越來越高，你會達到你的最低迴報率以反映當前的市場狀況嗎？

John, Paul again. The -- I'd say the best way to characterize it is we want to be a consistent source of capital throughout the cycle, and we try to be as consistent through the cycle in terms of what that cost of capital is. What tends to happen is when things get overheated in the sector, nobody hits our term sheets because they can get cheaper capital, particularly from the equity markets. When the markets are weak, when the costs are -- when other cost of capital become higher, that's when we see that people tend to hit our term sheets. So it's less, so that we try and change the way we price deals. It's just that we're trying to be consistent through the cycle.

約翰，又是保羅。 - 我想說的最好的描述方式是我們希望在整個週期中成為一致的資本來源，並且我們試圖在資本成本方面在整個週期中保持一致。往往會發生的情況是，當該行業過熱時，沒有人會觸及我們的條款清單，因為他們可以獲得更便宜的資本，尤其是來自股票市場的資本。當市場疲軟時，當成本 - 當其他資本成本變得更高時，我們就會看到人們傾向於達到我們的條款清單。所以它更少，所以我們嘗試改變我們為交易定價的方式。只是我們試圖在整個週期中保持一致。

So you're using the same numbers today, as you would have used on March 1st when gold was in [2000]?

所以你今天使用的數字與你在 3 月 1 日黃金處於 [2000] 時使用的數字相同嗎？

No. We -- when we present -- when we look at things, we always have a view as to what our current prices; we also have a view, as to what our long-term prices. We try and look at every deal through those 2 lenses. The art of it is picking a point somewhere in between the 2. But we're trying to make sure that the deal makes sense to us, both on current and on long-term prices.

不。我們——當我們展示——當我們看待事物時，我們總是對我們當前的價格有一個看法；對於我們的長期價格，我們也有看法。我們嘗試通過這兩個鏡頭來審視每一筆交易。它的藝術是在兩者之間的某個地方選擇一個點。但我們正在努力確保這筆交易對我們有意義，無論是在當前價格還是長期價格上。

You worry that it's too hard -- do deals and do large deals because of the capital and competition in the sector? Or is it better to just sit on the sidelines and let other people pay too much?

你擔心這太難了——因為資本和行業競爭，做交易和做大交易？還是袖手旁觀，讓別人付出太多更好？

There is more competition in the sector, no doubt about it. The -- but our view is, this is a very capital-intensive sector. It's a very volatile sector. And that if you're patient, the good assets will come available, and there will be good opportunities to grow our Company.

毫無疑問，該行業的競爭更加激烈。 - 但我們的觀點是，這是一個資本密集型行業。這是一個非常不穩定的行業。如果你有耐心，好的資產就會出現，並且會有很好的機會來發展我們的公司。

Thank you. (Operator Instructions) Next question comes from Tanya Jakusconek of Scotiabank.

謝謝你。 （操作員說明）下一個問題來自豐業銀行的 Tanya Jakusconek。

I think that's me. Just wanted to circle back to Eaun, so I understand correctly. So Eaun, are we -- when you said you're seeing deals more back in sort of the midrange for pricing, is that, that $100 million to $300 million range that we talked about in Q2?

我想這就是我。只是想繞回 Eaun，所以我理解正確。那麼 Eaun，我們是不是——當你說你看到更多的交易回到定價的中檔時，我們在第二季度談到的 1 億到 3 億美元的範圍內？

Hi, Tanya. Yes, I think that's a reasonably fair way to characterize it. I wouldn't put hard bounds on that. There's potential both bigger and smaller, as we negotiate and look at transactions. But that is generally, where we're seeing the majority of the opportunities at the moment, and it is pretty active.

嗨，坦尼婭。是的，我認為這是描述它的一種相當公平的方式。我不會對此設置嚴格的界限。在我們談判和研究交易時，潛力有大有小。但總的來說，我們目前看到了大部分機會，而且它非常活躍。

And the ones under $100 million [or] more of these royalty sort of deals that you're seeing, and so the streams would be greater than $100 million. Would that be fair or...

還有那些低於 1 億美元的 [或] 您所看到的此類特許權使用費交易，因此流量將超過 1 億美元。那是公平的還是...

Not necessarily. I think we see both types of opportunities, bigger royalties, as well are -- are also out there. The royalties like Magino in Ontario, 2% NSR. It's pretty much bread-and-butter type of business. We like to do those even if they are a little bit under $100 million, as you point out.

不必要。我認為我們看到了兩種類型的機會，更大的特許權使用費，以及 - 也在那裡。像安大略省的 Magino 這樣的版稅，2% NSR。這幾乎是一種麵包和黃油類型的業務。正如您所指出的，即使它們略低於 1 億美元，我們也願意這樣做。

And so as you mentioned, in the precious metal space is your focus and just project financing continues to be the main opportunities?

因此，正如您提到的，貴金屬領域是您的重點，項目融資仍然是主要機會嗎？

Yes. I think project financing, that's a fair assumption that, that is the majority of the opportunities, but we see others as well, and there are also kind of byproduct base metals deals out there that we look at.

是的。我認為項目融資，這是一個公平的假設，這是大部分機會，但我們也看到了其他機會，我們也看到了一些副產品基本金屬交易。

So those are back on the radar again?

所以那些又回到了雷達上？

I don't know if they ever went off. But yes, there are some of those out there.

我不知道他們是否曾經離開過。但是，是的，那裡有一些。

If I could ask a bit of guidance from Sandip for just looking out for the remainder of the year. I appreciate you telling us some insights on Cobre Panama, so expecting a stronger Q4. Hemlo looked like it came in at per guidance, and I think it was at CAD5 million to CAD6 million per quarter or thereabout, and I think you had mentioned (technical difficulty) distributed Q3, Q4. Just wondered about Vale because we were quite off on that, that contribution. Any guidance for Q4 on that one. I know we don't have the accrual happening, but anything you can give there, would be appreciative or any other assets for stronger Q4 performance.

如果我可以向 Sandip 尋求一些指導，以了解今年剩餘時間的情況。感謝您告訴我們一些關於 Cobre Panama 的見解，因此期待更強大的第四季度。 Hemlo 看起來是按照指導來的，我認為它是每季度 500 萬到 600 萬加元左右，我想你已經提到了（技術難度）分發 Q3、Q4。只是想知道淡水河谷，因為我們對此貢獻很大。關於第四季度的任何指導。我知道我們沒有發生應計費用，但你可以在那裡提供的任何東西都會受到讚賞或任何其他資產，以實現更強勁的第四季度業績。

Sure. So Tanya, I guess, Hemlo, I would expect similar to Q3 in the fourth quarter. And then specifically on Vale, obviously, only iron ore prices have come down. So I would expect something similar to third quarter, obviously backing out the revenue reversal of $1.6 million, that was part of the number.

當然。所以 Tanya，我想，Hemlo，我預計第四季度與第三季度類似。然後特別是淡水河谷，顯然只有鐵礦石價格下降了。因此，我預計會出現與第三季度類似的情況，顯然會抵消 160 萬美元的收入逆轉，這是數字的一部分。

Any other assets in Q4 that you think you should flag for us?

您認為應該為我們標記的第四季度中的任何其他資產？

No. As I said, I think underlying production at most assets was good in the quarter. It was just timing of deliveries in Cobre Panama specifically. So I think it's business as usual. I think most assets will come in similar.

沒有。正如我所說，我認為本季度大多數資產的基礎生產都很好。這只是在 Cobre Panama 的交貨時間。所以我認為一切照舊。我認為大多數資產都會類似。

Thank you. 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.

謝謝你。電話線上沒有其他問題。我現在將把問答環節交給 Bonavie Tek，他將回答網絡廣播中的問題。

Thank you, Michelle. We have 2 questions from Bernie Picchi of Palisade Capital. The first one is, can you quantify the [miss] that occurred because of shipment delays at Cobre Panama? And will that miss be picked up in Q4?

謝謝你，米歇爾。 Palisade Capital 的 Bernie Picchi 提出了 2 個問題。第一個是，您能否量化因 Cobre Panama 的裝運延誤而發生的[失誤]？那個小姐會在第四季度被撿起嗎？

Sure. So the delivery that was delayed into Q4 for Cobre was about 7,000 GEOs to 8,000 GEOs, that so we have received that and that will be sold off in this quarter. Obviously, you can't predict on timing of shipments. So there's nothing to say that there's a delivery that could have potentially be received at the end of December doesn't get pushed into January, but that is the quantum of the shipping delay for Q3.

當然。因此，Cobre 推遲到第四季度的交付量約為 7,000 個 GEO 到 8,000 個 GEO，所以我們已經收到了，並將在本季度出售。顯然，您無法預測發貨時間。因此，沒有什麼可說的，有可能在 12 月底收到的交貨不會被推遲到 1 月，但這是第三季度的發貨延遲量。

And the second question from Bernie is, it would appear that acquisitions of non-precious metals are not front and center at this time. Any comments?

Bernie 提出的第二個問題是，目前看來非貴金屬的收購併不是首要任務。任何意見？

We continue to look outside the precious metals space as well. I think what we would note, however, is there's a preponderance of deals to do in the precious metal space. And in the current pricing environment, that's where we're focusing a great deal of our attention.

我們也繼續將目光投向貴金屬領域之外。然而，我認為我們要注意的是，在貴金屬領域有大量交易要做。在當前的定價環境中，這是我們非常關注的地方。

And our last question is from [Vincent Lentini] of [Lentini] Capital. Does Franco-Nevada hold any physical gold on its balance sheet?

我們的最後一個問題來自 [Lentini] Capital 的 [Vincent Lentini]。 Franco-Nevada 的資產負債表上是否持有實物黃金？

We do. So we have 3 royalties that pay us in coins, Tasiast, Detour and Kirkland Lake. It's roughly 6,000 ounces per quarter, and we do hold that on the balance sheet, and we sell that on a regular basis.

我們的確是。所以我們有 3 個使用硬幣支付給我們的版稅，Tasiast、Detour 和 Kirkland Lake。每季度大約 6,000 盎司，我們確實將其保留在資產負債表上，並定期出售。

And that was the last question. There are no further questions from the webcast. So this concludes our third quarter 2022 results conference call and webcast. We expect to release our year-end 2022 results after market close on March 15th, with the conference call held the following morning. Thank you for your interest in Franco-Nevada.

這是最後一個問題。網絡廣播中沒有其他問題。我們的 2022 年第三季度業績電話會議和網絡廣播到此結束。我們預計將在 3 月 15 日收市後發布我們 2022 年年底的業績，並於次日上午舉行電話會議。感謝您對 Franco-Nevada 的關注。

Ladies and gentlemen, this does conclude our conference call for today. We thank you for your participation and ask that you please disconnect your lines.

女士們，先生們，我們今天的電話會議到此結束。我們感謝您的參與，並請您斷開您的線路。