Franco-Nevada Corp (FNV) 2023 Q2 法說會逐字稿

Good morning and welcome to Franco-Nevada Corporation's Second Quarter 2023 Results Conference Call and Webcast. This call is being recorded on August 9, 2023. (Operator Instructions) And I would like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations. Please go ahead.

早上好，歡迎參加 Franco-Nevada Corporation 2023 年第二季度業績電話會議和網絡廣播。本次電話會議於​​ 2023 年 8 月 9 日進行錄音。（操作員說明）我想將會議轉交給主持人、投資者關係高級分析師 Candida Hayden。請繼續。

Thank you, [Sylvie]. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's Second Quarter 2023 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，[西爾維]。大家，早安。感謝您今天加入我們討論 Franco-Nevada 2023 年第二季度的業績。此次電話會議附帶一份演示文稿，可在我們的網站 franco-nevada.com 上獲取，您還可以在其中找到我們的完整財務業績。該演示文稿也可以通過網絡廣播觀看。

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

在今天早上的電話會議中，弗蘭科-內華達公司總裁兼首席執行官保羅·布林克 (Paul Brink) 將作介紹性發言；接下來是首席財務官 Sandip Rana，他將簡要回顧我們的業績。接下來是問答期。我們的完整執行團隊可以回答任何問題。參與者可以通過電話或網絡廣播提交問題。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 2 上的詳細警示說明。

I will now turn the call over to Paul Brink, President and CEO.

我現在將把電話轉給總裁兼首席執行官保羅·布林克 (Paul Brink)。

Thanks, Candida and good morning. For Q2, our core assets returned to normal production and deliveries at Cobre Panama and Antapaccay caught up from the disruptions in Q1. Revenue from our diversified assets was impacted by lower oil, gas and iron ore prices compared to the relative highs of the prior year period. As a result, we expect total GEOs for the year to be at the low end of our guidance range.

謝謝，念珠菌，早上好。第二季度，我們的核心資產恢復了正常生產，Cobre巴拿馬和Antapaccay的交付趕上了第一季度的中斷。與去年同期的相對高點相比，我們多元化資產的收入受到石油、天然氣和鐵礦石價格下降的影響。因此，我們預計今年的 GEO 總量將處於我們指導範圍的低端。

With the Cobre Panama CP100 expansion physically complete, we started to see the benefit of higher throughput for the quarter. And First Quantum expects to exit the year at the 100 million tonne per annum throughput rate. Following public consultation, the refreshed concession contract was signed by the government and First Quantum and is expected to be presented before the National Assembly during the current sitting.

隨著 Cobre巴拿馬 CP100 擴建工程的實際完成，我們開始看到本季度吞吐量提高的好處。 First Quantum 預計今年的吞吐量將達到 1 億噸。經過公眾諮詢，政府和第一量子簽署了更新後的特許權合同，預計將在本屆國民議會上提交。

G Mining continues to do a tremendous job with the construction of the Tocantinzinho gold mine in Brazil. We've now funded $183 million of our total $250 million stream deposit and the project is on track for commercial production in the second half of 2024. The quarter saw first production from a couple of new mines, Argonaut's Magino mine in Ontario and Fortuna's mine in Cote d'Ivoire. Gold Fields expects first production from Salares Norte in Chile before year-end.

G Mining 繼續在巴西 Tocantinzinho 金礦的建設中做出巨大貢獻。目前，我們已為總價值2.5 億美元的流礦床提供了1.83 億美元的資金，該項目有望在2024 年下半年實現商業生產。本季度，幾個新礦山首次投產，包括位於安大略省的Argonaut 的Magino 礦山和Fortuna 的礦山在科特迪瓦。 Gold Fields 預計智利 Salares Norte 將於年底前首次投產。

We added a number of royalty interests during the period. In Chile, we acquired 2.64% gold royalty on Barrick's Pascua property. We also acquired a 1.5% NSR on Hochschild's Mining's Volcan gold project and we increased our holding on Lundin Mining's Caserones Copper Mine. So we now own a total 0.57% NSR on the mine.

在此期間我們增加了一些特許權使用費權益。在智利，我們收購了巴里克帕斯誇 (Pascua) 財產 2.64% 的黃金特許權使用費。我們還收購了 Hochschild's Mining 的 Volcan 金礦項目 1.5% NSR，並增持了 Lundin Mining 的 Caserones 銅礦。因此，我們現在總共擁有該礦 NSR 0.57% 的股份。

In Canada, we acquired an additional 1.5% NSR in Marathon's Valentine Gold project and we now hold a total 3% NSR on the project. During the quarter, we entered an agreement to provide royalty financing to exploration stage companies in partnership with EMX Royalty Corp. We have great respect for EMX's team of on-the-ground geologists and they'll be responsible for sourcing the transactions.

在加拿大，我們在Marathon的Valentine Gold項目中額外獲得了1.5%的NSR，目前我們總共持有該項目3%的NSR。在本季度，我們與 EMX Royal Corp 合作，簽訂了一項協議，向勘探階段的公司提供特許權使用費融資。我們非常尊重 EMX 的實地地質學家團隊，他們將負責尋找交易來源。

We were active with community contributions over the 3 months. We contributed to Sibanye-Stillwater's community initiative in Montana and to the I-80 Fund, which supports small businesses in rural Northern Nevada. We also partnered with Perpetua Resources to build social capacity at the Stibnite Gold Project.

在這 3 個月裡，我們積極參與社區貢獻。我們為蒙大拿州 Sibanye-Stillwater 的社區倡議和 I-80 基金捐款，該基金支持內華達州北部農村地區的小企業。我們還與 Perpetua Resources 合作，建設輝銻礦金礦項目的社會能力。

Franco-Nevada is debt-free, is growing its cash balances and at the end of June, we had $2.3 billion in available capital. Our business development team is active. For many operators and developers, royalty and stream financing is currently the lowest cost of available capital. With high rates, debt financing is expensive and there's little depth in the market for new issue gold equity.

Franco-Nevada 沒有債務，現金餘額不斷增加，截至 6 月底，我們的可用資本為 23 億美元。我們的業務開發團隊很活躍。對於許多運營商和開發商來說，特許權使用費和流融資是目前可用資本成本最低的。由於利率高，債務融資成本高昂，而且新發行的黃金股票市場深度不大。

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

這樣，我就把電話轉給桑迪普。

Thank you, Paul. Good morning, everyone. Our diverse portfolio continued to generate strong cash flows and high margins during second quarter 2023. Antapaccay and Cobre Panama returned to normal operations and were key contributors to the strong financial performance in the quarter. As well, the remainder of our mining portfolio performed in line with our expectations.

謝謝你，保羅。大家，早安。 2023 年第二季度，我們多元化的投資組合繼續產生強勁的現金流和高利潤率。Antapaccay 和 Cobre巴拿馬恢復正常運營，是本季度強勁財務業績的關鍵貢獻者。同樣，我們礦業投資組合的其餘部分的表現也符合我們的預期。

For the diversified assets, the retreat in iron ore and energy prices from 2022 did result in a reduction in diversified revenues and associated GEOs in second quarter 2023 compared to prior year. On Slide 4, we highlight the gold equivalent ounces sold for the last 5 quarters. Overall, GEOs sold for second quarter were 168,515, down from second quarter 2022.

對於多元化資產而言，2022 年以來鐵礦石和能源價格的回落確實導致 2023 年第二季度多元化收入和相關 GEO 較上一年減少。在幻燈片 4 上，我們重點介紹了過去 5 個季度銷售的黃金當量盎司。總體而言，第二季度 GEO 銷量為 168,515 輛，低於 2022 年第二季度。

For the quarter, precious metal GEOs were 132,033, up slightly from same quarter last year and up 19% from first quarter 2023. For the quarter, the largest contributors for precious metal GEOs were Antapaccay and Cobre Panama. At Antapaccay, GEOs delivered and sold were higher in the quarter compared to prior year. Following the temporary suspension of operations and constrained logistics experienced in Q1 2023, operations returned to normalized levels in March, resulting in significantly higher deliveries to Franco-Nevada with 19,683 GEOs sold in the quarter compared to just over 10,000 GEOs in Q2 2022.

本季度貴金屬 GEO 數量為 132,033 份，較去年同季度小幅增長，​​較 2023 年第一季度增長 19%。本季度貴金屬 GEO 貢獻最大的是 Antapaccay 和 Cobre巴拿馬。在 Antapaccay，本季度 GEO 的交付量和銷量均高於去年同期。繼2023 年第一季度運營暫時停止和物流受限之後，運營於3 月份恢復正常水平，導致弗蘭科-內華達州的交付量顯著增加，該季度售出19,683 個GEO，而2022 年第二季度僅售出10,000 多個GEO。

For Cobre Panama, operations ramped back up to full production following an interruption due to export restrictions in first quarter. Together with the benefit of additional processing facilities related to the CP100 expansion project, we received strong deliveries from Cobre Panama with 36,650 GEOs sold in the quarter.

Cobre巴拿馬公司的運營在第一季度因出口限製而中斷後已恢復全面生產。加上與 CP100 擴建項目相關的額外加工設施的好處，我們收到了 Cobre巴拿馬的強勁交付，本季度售出了 36,650 個 GEO。

Marigold and Tasiast were also strong contributors during the quarter due to mine sequencing and higher grades and recoveries, respectively. A few assets which performed below expectations were Antamina, Guadalupe and Stillwater. For Antamina, we had lower GEOs sold than prior year as the operator was affected by a tropical cyclone that affected Peru's Northern region in March 2023. This also affected production in April, which will impact our third quarter deliveries.

由於礦山測序以及較高的品位和回收率，Marigold 和 Tasiast 在本季度也做出了強勁的貢獻。安塔米納 (Antamina)、瓜達盧佩 (Guadalupe) 和斯蒂爾沃特 (Stillwater) 等表現低於預期的資產。對於 Antamina，我們的 GEO 銷量低於去年，因為該運營商受到 2023 年 3 月影響秘魯北部地區的熱帶氣旋的影響。這也影響了 4 月份的生產，這將影響我們第三季度的交付量。

At Guadalupe, the operator mined less ounces from lands covered by our stream resulting in lower GEOs delivered and sold. And at Stillwater, production was impacted by an incident that damaged shaft infrastructure in March 2023. This was remediated in April. However, the decrease in GEOs compared to prior years also reflects a less favorable PGM to gold conversion ratio.

在瓜達盧佩，運營商從我們河流覆蓋的土地上開采的盎司減少，導致交付和銷售的 GEO 減少。在斯蒂爾沃特，生產受到 2023 年 3 月損壞豎井基礎設施的事件的影響。該事件已於 4 月得到修復。然而，與往年相比，GEO 的減少也反映出鉑族金屬與黃金的轉化率較差。

Q2 2023 saw continued volatility in commodity prices. Slide 5 shows the average commodity prices for Q2 2023 and prior year. Precious metals did see an improvement year-over-year with gold, silver and platinum averaging higher. However, palladium, iron ore and energy prices were down significantly.

2023 年第二季度大宗商品價格持續波動。幻燈片 5 顯示了 2023 年第二季度和上一年的平均商品價格。貴金屬確實同比有所改善，黃金、白銀和鉑金均價走高。然而，鈀金、鐵礦石和能源價格大幅下跌。

A large component of diversified GEOs and revenue is energy. Production has remained strong and was 25% higher on a [BOE] basis during the quarter. However, as seen on Slide 6, the bar charts highlight the retreat in oil and gas prices year-over-year. WTI averaged $73.78 a barrel in second quarter, down 32% versus prior year.

多元化 GEO 和收入的很大一部分是能源。本季度產量保持強勁，按 [BOE] 計算增長了 25%。然而，如幻燈片 6 所示，條形圖突顯了石油和天然氣價格同比回落。第二季度 WTI 均價為每桶 73.78 美元，較去年同期下降 32%。

Natural gas averaged $2.32 per Mcf, down 69% versus prior year. As a result, the sharp fall in energy prices impacted our GEOs sold generated by our energy assets, which were 28,683 for the quarter compared to 50,387 in Q2 2022. As you will recall, energy prices saw a sharp increase in 2021 and 2022 due to many factors with the largest being geopolitical tension.

天然氣平均價格為每立方英尺 2.32 美元，比去年下降 69%。因此，能源價格大幅下跌影響了我們能源資產銷售的 GEO，本季度為 28,683 個，而 2022 年第二季度為 50,387 個。正如您所知，由於能源價格在 2021 年和 2022 年大幅上漲，許多因素，其中最大的是地緣政治緊張局勢。

Slide 7 highlights our total revenue and adjusted EBITDA amounts for the 3 months ended June 30, 2023 and 2022. Revenue and adjusted EBITDA have decreased year-over-year. The decrease is the result of lower contribution from diversified assets, partially offset by better performance from precious metals.

幻燈片 7 突出顯示了截至 2023 年 6 月 30 日和 2022 年 3 個月的總收入和調整後 EBITDA 金額。收入和調整後 EBITDA 同比下降。下降的原因是多元化資產的貢獻下降，但部分被貴金屬的更好表現所抵消。

The company recorded $329.9 million in revenue in second quarter and $275.6 million in adjusted EBITDA, a margin of 83.5% was achieved. As you turn to Slide 8, you'll see the key financial results for the company. As mentioned, GEOs and revenue were lower in the quarter compared to prior year.

該公司第二季度收入為 3.299 億美元，調整後 EBITDA 為 2.756 億美元，利潤率為 83.5%。當您翻到幻燈片 8 時，您將看到該公司的主要財務業績。如前所述，本季度的 GEO 和收入低於去年同期。

On the cost side, we had an increase in cost of sales, which was $47.1 million, compared to $45.5 million in Q2 2022. The largest component of this is the per ounce fixed cost we pay for stream ounces. We sold 12,785 stream ounces in second quarter compared to 98,163 a year ago. Depletion increased to $75.1 million versus $69.6 million a year ago. Depletion is based on actual mining GEOs sold and barrels of oil equivalent received from energy assets, as we received higher GEOs from Antapaccay and Cobre Panama, which are higher per ounce depletion assets. This resulted in higher overall depletion expense.

在成本方面，我們的銷售成本增加了 4710 萬美元，而 2022 年第二季度為 4550 萬美元。其中最大的組成部分是我們為流盎司支付的每盎司固定成本。第二季度我們銷售了 12,785 盎司，而去年同期為 98,163 盎司。消耗增加至 7,510 萬美元，而一年前為 6,960 萬美元。消耗是基於實際出售的採礦 GEO 和從能源資產收到的石油當量桶數，因為我們從 Antapaccay 和 Cobre巴拿馬收到了更高的 GEO，每盎司消耗資產更高。這導致總體消耗費用更高。

For second quarter 2023, adjusted net income was $182.9 million or $0.95 per share compared to $195.8 million or $1.02 per share in the prior year. Slide 9 highlights the continued diversification of the portfolio. As shown, 79% of our Q2 2023 revenue was generated by precious metals. This compares to 69% in Q2 2022. The geographic revenue profile has revenue being sourced 89% from the Americas.

2023 年第二季度，調整後淨利潤為 1.829 億美元，即每股 0.95 美元，而上一年為 1.958 億美元，即每股 1.02 美元。幻燈片 9 強調了投資組合的持續多元化。如圖所示，我們 2023 年第二季度收入的 79% 來自貴金屬。相比之下，2022 年第二季度這一比例為 69%。從地理收入情況來看，89% 的收入來自美洲。

With respect to asset diversification, Cobre Panama was again our largest revenue generator at 22% of total revenue for the quarter, followed by Antapaccay and Candelaria. And the last chart highlights our operator diversity. Our largest exposure to revenue being generated by any one operator is 22%, which is First Quantum who operates Cobre Panama.

在資產多元化方面，Cobre巴拿馬再次成為我們最大的收入來源，佔本季度總收入的22%，其次是Antapaccay和Candelaria。最後一張圖表凸顯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為 22%，即運營 Cobre巴拿馬的 First Quantum。

Slide 10 illustrates the strength of our business model to generate high margins. On the slide, you can see that cost of sales has remained fairly consistent over the period shown. The amount of cost of sales will depend on the mix of royalty versus stream GEOs, including mining and energy.

幻燈片 10 展示了我們的業務模式在產生高利潤方面的優勢。在幻燈片上，您可以看到銷售成本在所示期間保持相當穩定。銷售成本金額將取決於特許權使用費與流 GEO 的組合，包括採礦和能源。

During second quarter 2023, the cash cost per GEO, which essentially cost of sales divided by gold equivalent ounces sold was $280 per GEO. This compares to $238 per GEO in second quarter 2022. Corporate administration costs, including stock-based compensation, was less than 3% of revenue for the quarter. The total can fluctuate quarter-over-quarter but has tended to average approximately $8 million each quarter historically. In a rising commodity price environment, we expect to benefit fully as we do not expect our cost structure to change significantly.

2023 年第二季度，每 GEO 的現金成本（實質上是銷售成本除以銷售的黃金當量盎司）為每 GEO 280 美元。相比之下，2022 年第二季度每個 GEO 為 238 美元。公司管理成本（包括基於股票的薪酬）不到該季度收入的 3%。總額可能會隨季度而波動，但歷史上每個季度平均約為 800 萬美元。在大宗商品價格上漲的環境下，我們預計將充分受益，因為我們預計我們的成本結構不會發生重大變化。

Slide 11 summarizes the financial resources available to the company when including our credit facility of $1 billion, total available capital at June 30, 2023, is $2.3 billion. The company is debt-free.

幻燈片 11 總結了公司可用的財務資源，包括我們 10 億美元的信貸額度，截至 2023 年 6 月 30 日的可用資本總額為 23 億美元。該公司無債務。

And on Slide 12, 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 interests. For the second half of the year we are maintaining our guidance range for total GEOs sold of 640,000 to 700,000. However, we expect to be at the lower end of that range due to the conversion of non-gold revenue to GEOs based on our revised commodity prices.

在幻燈片 12 上，我們重申了基於更新的商品價格（如幻燈片所示）以及我們對特許權使用費和流媒體權益的產量預期的今年指導。今年下半年，我們將 GEO 銷售總量的指導範圍維持在 640,000 至 700,000 輛之間。然而，由於根據我們修訂後的商品價格將非黃金收入轉換為 GEO，我們預計將處於該範圍的下限。

And now I'll pass it over to the operator, as we are happy to answer any questions.

現在我會將其轉交給接線員，因為我們很樂意回答任何問題。

(Operator Instructions) And your first question will be from Fahad Tariq at Credit Suisse.

（操作員說明）您的第一個問題將來自瑞士信貸銀行的 Fahad Tariq。

As you think about the diversified commodity prices, so iron ore, energy prices being lower, does that in any way change what you're focusing on in your deal pipeline? I know in the past, you've talked about countercyclical investing. So I just wanted to kind of tie that in with how the commodity prices are moving.

當您考慮多元化的大宗商品價格時，例如鐵礦石、能源價格較低，這是否會以任何方式改變您在交易渠道中關注的重點？我知道您過去談到過逆週期投資。所以我只是想將其與大宗商品價格的走勢聯繫起來。

Thanks. More of a point is, as you see, we try to be opportunistic investors. Our focus is always on precious metals. But when we're investing in other commodities, we're looking to get better entry points that either needs to be -- based on lower current commodity prices or at least that we can use lower longer-term prices in valuing the deal. So when you do have price weakness, that is an opportunity.

謝謝。更重要的是，正如您所看到的，我們試圖成為機會主義投資者。我們的重點始終是貴金屬。但是，當我們投資其他商品時，我們希望獲得更好的切入點，這要么是基於當前較低的商品價格，要么至少是我們可以使用較低的長期價格來評估交易。因此，當價格確實疲軟時，這就是一個機會。

Okay. And then just on the balance sheet, just given the strength of the balance sheet, you have $1.2 billion of cash undrawn revolver, can you just walk us through maybe how you're thinking about just the use of capital in the context of there aren't that many large deals out there? Just trying to think of how the balance sheet will be utilized.

好的。然後就在資產負債表上，鑑於資產負債表的實力，您有 12 億美元的未提取現金左輪手槍，您能否向我們介紹一下您在以下情況下如何考慮資本的使用：不是有很多大額交易嗎？只是想想想如何利用資產負債表。

Sure, it's Sandip here. Really, there's no change in strategy. Franco has always had a strong balance sheet and we're happy having cash on the balance sheet. Obviously, dividend is important but the #1 priority is to deploy that capital to add assets. And we know it's a cyclical business. There's times when our capital will be needed and there's other times where we might not be as active. So we're happy accumulating cash on the balance sheet but in fact the most important thing is the dividend, which we intend to raise as we have done in the past.

當然，這裡是桑迪普。確實，策略沒有改變。 Franco 的資產負債表一直強勁，我們很高興資產負債表上有現金。顯然，股息很重要，但第一要務是部署該資本來增加資產。我們知道這是一個週期性業務。有時需要我們的資金，有時我們可能不那麼積極。因此，我們很高興在資產負債表上積累現金，但事實上最重要的是股息，我們打算像過去那樣提高股息。

Next question will be from Josh Wolfson at RBC Capital Markets.

下一個問題將由加拿大皇家銀行資本市場公司的 Josh Wolfson 提出。

On the global minimum tax, with the draft legislation out in Canada, I'm wondering if there's been any further clarity on what the potential impact is and whether this is something that is expected to be affecting 2024 taxes paid?

關於全球最低稅，隨著加拿大立法草案的出台，我想知道是否有進一步明確的潛在影響，以及這是否預計會影響 2024 年的納稅？

Yes, Josh. No change. As we said last quarter, the estimate is 3% to 4% of our NAV based on GMT being implemented January 1, no changes.

是的，喬什。不用找了。正如我們上季度所說，根據 1 月 1 日實施的 GMT，我們的資產淨值估計為 3% 至 4%，沒有變化。

Okay. And then just to confirm, that is consistent with, I guess, the initial interpretations of the legislation?

好的。然後只是為了確認，我猜這與立法的最初解釋是一致的？

Yes. Correct.

是的。正確的。

Okay. And then speaking of countercyclical investing that Fahad was asking, with the Pascua-Lama royalty purchase, it's obviously a reasonably well-known asset but a sort of a larger dollar value, I guess, for an option style of royalty. I'm wondering if there's any additional views the company has on the potential there. Or if this is just sort of a tuck-in long-term option with no further interpretations at least based on what we've heard from Barrick over the last couple of years?

好的。然後談到法赫德要求的反週期投資，通過購買帕斯卡-拉馬特許權使用費，這顯然是一項相當知名的資產，但我想，對於特許權使用費的期權風格來說，它的美元價值更大。我想知道該公司是否對那裡的潛力有任何其他看法。或者，如果這只是一種長期選擇，至少根據我們過去幾年從巴里克那裡聽到的消息，沒有進一步的解釋？

Josh, it's the -- we think one of our competitive advantages, given the long-dated nature of our portfolio is that we can buy some of these long-dated interests. What we'd like to do and what we found is great endowments are the ones that ultimately get developed, also the ones that get better over time. Pascua is certainly one of those, one of the best undeveloped gold deposits. So I think you're right in thinking of it in a countercyclical sense. We've done this before. A great example was Detour, when Placer built that mine as an underground mine, had abandoned it and we were able to buy a royalty on it, in a sense in the darkest days and ultimately, it became a very successful mine. It's the way we like to think about these things. Pascua has a class of deposit that you'll always have operators looking to spend capital on it. It's in a good secure jurisdiction. Our view is it gets developed over time and I think will be a tremendous investment.

喬什，我們認為，考慮到我們投資組合的長期性質，我們的競爭優勢之一是我們可以購買其中一些長期權益。我們想做的事情以及我們發現的偉大的禀賦是最終得到發展的，也是隨著時間的推移而變得更好的。帕斯卡無疑是其中之一，是最好的未開發金礦之一。所以我認為你從反週期的角度思考它是正確的。我們以前已經這樣做過。 Detour 就是一個很好的例子，當時普萊瑟將該礦建為地下礦，後來廢棄了它，我們能夠購買它的特許權使用費，從某種意義上說，在最黑暗的日子裡，它最終成為一個非常成功的礦。這就是我們喜歡思考這些事情的方式。帕斯卡有一類存款，您總是會有運營商希望在其上花費資金。它位於一個安全良好的管轄區。我們的觀點是，它會隨著時間的推移而發展，我認為這將是一項巨大的投資。

Next question will be from Heiko Ihle at H.C.Wainwright. Heiko, please unmute your line.

下一個問題將由 H.C.Wainwright 的 Heiko Ihle 提出。 Heiko，請取消線路靜音。

Oh, sorry. Can you hear me now?

哦對不起。你能聽到我嗎？

Yes, we can hear you.

是的，我們能聽到你的聲音。

Helpful. I was -- and sorry about that. Yes, I was on mute, as you correctly identified. I personally thought interest rates would be topping out or potentially even leveling off by now. Clearly, that hasn't really happened. But I was curious with longer-term interest rate assumptions that you use in your models given your future funding commitments and things like the expansion of underlying streams and also for future acquisitions, please?

有幫助。我對此感到抱歉。是的，正如您所識別的那樣，我處於靜音狀態。我個人認為利率現在已經見頂甚至可能趨於平穩。顯然，這並沒有真正發生。但我很好奇您在模型中使用的長期利率假設，考慮到您未來的融資承諾以及基礎資金流的擴展以及未來的收購等，好嗎？

I think in short, we're in a very fortunate position. We don't have any debt. So as rates go up, while many people are constrained, we're not. It really puts us in a position that I think we've got more latitude in our investments than many other people who are constrained by debt.

我認為簡而言之，我們處於非常幸運的位置。我們沒有任何債務。因此，隨著利率上升，雖然許多人受到限制，但我們卻沒有。這確實使我們處於這樣一個境地：我認為我們在投資方面比許多其他受債務限制的人有更多的自由度。

But I assume that with commitments that you have in the future, you have some sort of internal models that you use to place yourself against your competition (inaudible).

但我認為，有了對未來的承諾，你就有了某種內部模型，可以用來讓自己與競爭對手競爭（聽不清）。

We have our models but as we don't have debt and typically, we don't carry debt as a long-term source of financing. When we've had it, we repaid it quickly. It doesn't factor heavily into our cost of capital.

我們有自己的模型，但由於我們沒有債務，而且通常情況下，我們不會將債務作為長期融資來源。當我們得到它時，我們很快就還清了。它對我們的資本成本影響不大。

Fair enough. I think we'll take this one offline. And then also, can you provide some color on your plant depletion year-by-year through 2027? I saw you had the longer-term outlook in your presentation, just like a rough estimate by year.

很公平。我想我們會把這個下線。另外，您能否提供一些關於截至 2027 年植物逐年枯竭的情況？我看到您在演講中提出了長期展望，就像按年份進行的粗略估計一樣。

We -- I don't have those numbers in front of me, Heiko. We can take that offline.

我們——我面前沒有這些數字，Heiko。我們可以將其離線。

Perfect. And then last one I had. Just looking at the remainder of the year, what assets do you think might make the biggest difference between plans for your outlook and what will actually come in? In other words, what do you think -- is there anything that analysts should be looking at particularly closely?

完美的。然後是我的最後一個。看看今年剩下的時間，您認為哪些資產可能會對您的前景計劃和實際收入產生最大的影響？換句話說，您認為分析師應該特別密切關注什麼？

I think we've reiterated our guidance. So the ranges that we had provided as part of our March guidance, I think we're comfortable that our core assets will achieve those targets. In which case, it results in us meeting our guidance levels in the second half of the year.

我認為我們已經重申了我們的指導。因此，我們在三月份指導中提供的範圍，我認為我們對我們的核心資產將實現這些目標感到滿意。在這種情況下，我們將在下半年達到我們的指導水平。

Fair enough. I appreciate it. I'll give you guys a call back later.

很公平。我很感激。我稍後會給你們回電話。

Okay.

好的。

Next question will be from Cosmos Chiu at CIBC.

下一個問題將由 CIBC 的 Cosmos Chiu 提出。

Great. Maybe my first question is on your guidance as well. Paul, as you mentioned, you're now targeting the lower end of your guidance range. You've kind of answered my questions but I just want to confirm. If I just look at your precious metals guidance, you're actually tracking pretty well. So the fact that you're targeting for total GEOs, the lower end, is that really just due to lower sort of diversified prices, energy prices, iron ore prices? Or is that too simplistic of a way to look at it?

偉大的。也許我的第一個問題也是關於您的指導。保羅，正如您提到的，您現在的目標是指導範圍的下限。你已經回答了我的問題，但我只是想確認一下。如果我只看一下你們的貴金屬指引，你們實際上跟踪得很好。那麼，事實上，您的目標是總 GEO（低端），這真的只是由於較低的多樣化價格、能源價格、鐵礦石價格嗎？還是這種看待問題的方式過於簡單化了？

No, Cosmos, you're essentially correct. It's -- when we did our original guidance, the iron ore price we used was higher than what it's averaged thus far in 2023 and what we're using going forward, same with the energy prices. And so the other side, the gold price is higher than what we had in our original guidance. So you get a double impact on converting the non-gold revenue to GEOs and that's essentially the reason for guiding to the lower end.

不，宇宙，你基本上是正確的。當我們制定最初的指導時，我們使用的鐵礦石價格高於 2023 年迄今為止的平均價格以及我們未來使用的價格，能源價格也是如此。另一方面，金價高於我們最初的指導值。因此，將非黃金收入轉換為 GEO 會產生雙重影響，這本質上就是引導至低端的原因。

Perfect. And then in terms of some of the corporate developments here, you talked about in your MD&A, the partnership with EMX Royalty. It's not new but at least right now, I guess, you're putting a number to it, joint acquisitions, not huge, $5.5 million on your end. But I guess my question is, what does each of the parties bring to the table? I kind of know the answer but I just want to confirm. And could this lead to something that's bigger down the road? Or is this really the niche in terms of smaller earlier stage royalties, utilizing, say, the technical expertise of the EMX team.

完美的。然後就這裡的一些公司發展而言，您在 MD&A 中談到了與 EMXRoyalty 的合作夥伴關係。這不是什麼新鮮事，但至少現在，我想，你正在給它加上一個數字，聯合收購，不是很大，550萬美元。但我想我的問題是，各方會帶來什麼？我有點知道答案，但我只是想確認一下。這會導致未來發生更大的事情嗎？或者說，就較小的早期版稅而言，這確實是利基市場，利用 EMX 團隊的技術專長。

Cosmos, they're a couple of things there. We know the team well. We like the team. Part of the DNA of our business is to keep on bidding on the smaller royalties where we see value. Our issue is, how we prioritize our time. The team, most of the time is engaged on bigger transactions. So -- the -- one of the great benefits for us in this transaction is the EMX team is targeting these transactions. We pay a bit of a carry on the deal. Our capital being available means that they can approach parties with more capital to put to work. So those are the main elements of it. And the overall strategy here is -- and a bit to what I alluded to in the overall comment, capital really is a constraint for the gold development sector and particularly for the earlier stage exploration sector. So we think we can profitably put dollars to work in an area that really needs the capital.

宇宙，它們是那裡的一些東西。我們很了解這支球隊。我們喜歡這個團隊。我們業務的一部分就是繼續競標我們認為有價值的較小的特許權使用費。我們的問題是，我們如何優先考慮我們的時間。團隊大部分時間都在從事更大的交易。因此，本次交易對我們來說最大的好處之一是 EMX 團隊正在瞄準這些交易。我們為這筆交易支付了一點費用。我們的資金充足意味著他們可以接觸擁有更多資金的各方來開展工作。這些是它的主要要素。這裡的總體策略是——有點像我在總體評論中提到的那樣，資本確實是黃金開發行業，特別是早期勘探行業的限制。因此，我們認為我們可以將資金投入到真正需要資金的領域，從而實現盈利。

That's good to hear. Maybe one last question, more asset specific here. Antapaccay, in the MD&A, you highlighted the exploration potential here at, I got to butcher this, Coroccohuayco. So about 10 kilometers away from Antapaccay. Could you maybe talk a bit more about that in terms of timing, in terms of upside potential and what we could expect.

聽起來還不錯。也許還有最後一個問題，這裡更具體的資產。 Antapaccay，在 MD&A 中，您強調了這裡的勘探潛力，我必須屠宰這個，Coroccohuayco。所以距離Antapaccay大約10公里。您能否更多地談談時機、上行潛力以及我們的預期。

So Cosmos, a bit of background on that property. And as you'll recall, the first mine on that property was Tintaya mined by BHP. It was a skarn deposit. The second, Antapaccay is a porphyry deposit. So on a parallel trend, on that same trend as Tintaya is Coroccohuayco, not a skarn deposit. Total metal value is about 3/4 of what's in Antapaccay but the grades are slightly higher. So it's a project that the -- Glencore has owned about for quite some time. They've been looking at developing it. They've scoped it out as different iterations of underground and open pit and various proportions of that.

那麼 Cosmos，請介紹一下該屬性的一些背景。您可能還記得，該礦區的第一個礦是必和必拓 (BHP) 開采的 Tintaya。這是一個矽卡岩礦床。第二個是 Antapaccay 是斑岩礦床。因此，在平行趨勢上，與 Tintaya 相同的趨勢上是 Coroccohuayco，而不是夕卡岩礦床。金屬總價值約為 Antapaccay 的 3/4，但品位略高。所以嘉能可已經擁有這個項目相當長一段時間了。他們一直在考慮開發它。他們將其範圍界定為地下和露天礦坑的不同迭代及其不同比例。

They are currently working on building social license with the communities with a view that they -- once they know that they've secured that, that they would look to push the project forward in terms of development. So I don't have an exact time line on when it might start contributing. But I think the way to think about it is that, at least by the time Antapaccay comes to an end, there is a replacement deposit and so we would see production continuing for a long period.

他們目前正在與社區一起建立社會許可，他們認為，一旦他們知道自己已經獲得了社會許可，他們就會尋求在開發方面推動該項目向前發展。所以我沒有確切的時間表來說明它何時開始做出貢獻。但我認為思考這個問題的方法是，至少到 Antapaccay 結束時，會有替代存款，因此我們會看到生產持續很長一段時間。

Next question will be from Martin Pradier at Veritas Investment Research.

下一個問題將由 Veritas Investment Research 的 Martin Pradier 提出。

In terms of the volumes, I look at the Vale volumes that were down 11%, and I was expecting more. So the question is why and what is the expectation going forward?

就成交量而言，我看到淡水河谷的成交量下降了 11%，而且我預計會下降更多。所以問題是為什麼以及未來的期望是什麼？

Sorry, volumes related to which?

抱歉，與哪卷相關？

Vale, in iron ore volumes.

淡水河谷，以鐵礦石量計。

Yes. So there was 2 components. One is Vale. The production is usually lower in the first half of the year versus the second half of the year. So we've always guided 45% of our GEOs will be in the first 6 months and 55% in the second 6 months. But there was lower production at the mines themselves. And then with the lower iron ore price, resulted in lower revenue from Vale. And then when you convert to GEOs at a higher gold price, it results in lower GEOs. So there's...

是的。所以有 2 個組件。其中之一是淡水河谷。上半年的產量通常低於下半年。因此，我們始終指導 45% 的 GEO 將在前 6 個月進行，55% 在後 6 個月進行。但礦山本身的產量較低。然後隨著鐵礦石價格的下跌，導致淡水河谷的收入減少。然後，當您以較高的黃金價格轉換為 GEO 時，會導致 GEO 降低。所以有...

No. I'm not talking GEOs. I'm talking simply if you take the iron ore number, that's lower. It's 11% lower. And my expectation is that they would produce more.

不，我說的不是 GEO。我只是簡單地說，如果你看一下鐵礦石的數量，那就更低了。降低了 11%。我的期望是他們會生產更多。

Yes. So the revenue number, it's our best estimate at this time, right? So we don't receive a number from Vale. We're making our best estimate. So it could be a case that we'll be making an adjustment in Q3 based upon what the actual numbers come out from Vale.

是的。那麼收入數字是我們目前最好的估計，對吧？所以我們沒有收到淡水河谷的電話號碼。我們正在做出最好的估計。因此，我們可能會根據淡水河谷公佈的實際數據在第三季度進行調整。

And what is the expectation going forward? Because that asset was supposed to grow and it doesn't seem to be growing much.

未來的期望是什麼？因為該資產本來應該增長，但它似乎增長不多。

Yes. Obviously, they've had production challenges, which hopefully get rectified. But they have a threshold in late 2024, early '25 where our royalty there will kick in. So for our -- for Franco-Nevada, we do expect higher production from that royalty going forward. But that won't kick-in till end of 2024.

是的。顯然，他們遇到了生產挑戰，希望能夠得到糾正。但他們在2024 年底、25 年初有一個門檻，我們的特許權使用費將在此時生效。因此，對於我們的弗蘭科-內華達州來說，我們確實預計未來該特許權使用費的產量會更高。但這要到 2024 年底才會生效。

Okay. And the tax was rather low this -- the tax rate was 13%, which is lower than what I expected. What should I expect in terms of tax for the year?

好的。而且這個稅相當低——稅率是13%，低於我的預期。我對本年度的稅收有何期望？

The rate was lower because it's a mix of where the income is earned because we had higher stream ounces from Cobre Panama and Antapaccay. Our Barbados subsidiary was a larger contribution of our net income, which has resulted in a lower tax rate and we had lower energy revenue, which comes out of the U.S. and Canada. Going forward, we typically guide to about 15% effective tax rate.

費率之所以較低，是因為它是收入來源的混合體，因為我們從巴拿馬銅礦和安塔帕凱獲得了更高的流盎司量。我們的巴巴多斯子公司對我們的淨利潤貢獻較大，這導致稅率較低，我們來自美國和加拿大的能源收入也較低。展望未來，我們通常指導有效稅率約為 15%。

Next question will be from Tanya Jakusconek at Scotiabank.

下一個問題將由豐業銀行的 Tanya Jakusconek 提出。

Just wanted to follow up on Pascua-Lama, if I could. Just wanted to know, does the royalty on the gold and copper cover all of Barrick's reserves and resources on the Chilean side.

如果可以的話，我只是想跟進帕斯卡-喇嘛的情況。只是想知道，黃金和銅的特許權使用費是否涵蓋了巴里克在智利一側的所有儲量和資源。

Yes, Tanya, that's right. The royalty applies only to the Chilean side of the border but it does cover all of the current resources on that side of the border. And in fact, there's an area of interest that is broader than Barrick's property position itself.

是的，塔尼婭，沒錯。特許權使用費僅適用於邊界的智利一側，但它確實涵蓋了邊界該側的所有當前資源。事實上，有一個比巴里克的房地產地位本身更廣泛的興趣領域。

So if I were to take about like going to Barrick's reserves and resources and take 60% because I finally -- I remember, it's about 60% of the asset sits on the Chilean side versus 40% on Argentina. Would that be how you kind of viewed it when you paid your $75 million on it?

因此，如果我要考慮巴里克的儲備和資源，並採取 60％，因為我最終 - 我記得，大約 60％ 的資產位於智利一側，而 40％ 位於阿根廷一側。當你支付 7500 萬美元購買它時，你會這樣看待它嗎？

Yes, you'd have to look at Barrick's disclosure to try to form a view of resources on the Chilean side. Our view was a bit higher than that. We -- our view is more like 80%. So when we used our -- when we were looking at our economics, we were using closer to 80% of the resource on the Chilean side.

是的，你必須看看巴里克的披露，才能對智利方面的資源形成一個看法。我們的觀點比那要高一點。我們——我們的觀點更像是 80%。因此，當我們考慮我們的經濟時，我們使用了智利一側近 80% 的資源。

Okay. That's helpful. And maybe just again on the M&A front or transaction front. Paul, should we be surprised to see you do an energy and/or iron ore deal ahead of a gold deal right now because the price -- because of where the prices are?

好的。這很有幫助。也許又是在併購或交易方面。保羅，看到您現在在黃金交易之前達成能源和/或鐵礦石交易，我們應該感到驚訝嗎？因為價格——因為價格在哪裡？

Tanya, you know our preference is always to add more precious metal. But we always say, we're open to all commodities. It's driven by good deposits. So you shouldn't be surprised if you see an iron ore or an oil and gas deal. You should expect that it would be on a great deposit.

塔尼婭，你知道我們的偏好始終是添加更多貴金屬。但我們總是說，我們對所有商品持開放態度。這是由良好的存款推動的。因此，如果您看到鐵礦石或石油和天然氣交易，您不應感到驚訝。你應該預料到這將是一筆巨額存款。

Okay. And on all of these opportunities that you're looking at, are we still in that sub-$500 million range? I'm just trying to still see where they were in a -- I think it's like $100 million to $350 million, I forgot. But on all of these that you're looking right now, is that the range I should be thinking about?

好的。對於您所關注的所有這些機會，我們是否仍處於 5 億美元以下的範圍內？我只是想看看他們在哪裡——我想大概是 1 億到 3.5 億美元，我忘了。但對於你現在正在尋找的所有這些，這是我應該考慮的範圍嗎？

Yes. Most of what we're looking at is a modest size. So you're accurate.

是的。我們看到的大部分都是中等尺寸。所以你是準確的。

$100 million to $350 million, area?

1億到3.5億美元，面積？

Yes.

是的。

Okay. Perfect. And then, Sandip, maybe if I could come to you to just ask about the year. So you've given us guidance that 55% of the production, obviously, pricing has an impact on the GEOs in the second half of the year, oil and gas or the energy division to be lower in the second half? Is there anything on the gold side? Is it evenly distributed? I know Cobre Panama is ramping up. I just don't know what the timing of your sales, should I be thinking even distribution on the gold side?

好的。完美的。然後，桑迪普，也許我可以來找你詢問一下這一年的情況。所以你給我們的指導是，55%的產量，顯然，定價對下半年的GEO、石油和天然氣或能源部門的影響會較低？金色的一面有什麼東西嗎？分佈均勻嗎？我知道巴拿馬銅礦正在崛起。我只是不知道你們的銷售時間是什麼時候，我是否應該考慮在黃金方面進行均勻分配？

At this stage, yes, Tanya, I'd expect Q3 and Q4 be pretty similar. Even if Cobre Panama ramps up with a stronger Q4, there's other assets that will do better in Q3 than Q4, it's just, we don't have the exact detail by quarter. So I'd say essentially, they will be similar.

在這個階段，是的，Tanya，我希望第三季度和第四季度非常相似。即使 Cobre巴拿馬在第四季度表現強勁，但還有其他資產在第三季度的表現會比第四季度更好，只是我們沒有按季度提供的確切細節。所以我想說，本質上，它們是相似的。

(Operator Instructions) And your next question will be from Brian MacArthur at Raymond James.

（操作員說明）您的下一個問題將來自 Raymond James 的 Brian MacArthur。

Just following up on Pascua. Can I ask whether the copper royalty came with the gold royalty? And I guess where I'm going with this is, whether you paid very much for the copper royalties that (inaudible) different individuals. And really, the question then is, do you see something different at Pascua, where we'd be getting copper going forward or was most of the bid price based assuming on the 2.7% NSR gold?

只是跟進帕斯卡。請問銅礦使用費是否與金礦使用費一起來的？我想我要討論的是，你是否為不同個人（聽不清）的銅礦使用費支付了很多錢。事實上，接下來的問題是，您是否認為 Pascua 有什麼不同，我們未來會在那裡獲得銅，還是大部分買入價基於 2.7% NSR 黃金的假設？

Yes. Brian, the royalty that we bought was primarily based on the value in the gold, so the 2.7% NSR at today's gold prices. The copper, the small copper royalty came attached to that. We did buy it through different sellers but each royalty had gold and copper in it. So the copper was more a tag along. We don't see as much value in the copper royalty at this stage.

是的。 Brian，我們購買的特許權使用費主要基於黃金的價值，因此按今天的金價計算，NSR 為 2.7%。銅，小的銅版稅與之相連。我們確實通過不同的賣家購買了它，但每個皇室成員都含有黃金和銅。所以銅更像是一個標籤。現階段我們認為銅礦使用費的價值不大。

Great. That's what I thought. And the second part, you talked about it being a sliding scale and you give us about $800. But there were some ones around on the property, if I remember, that were scaled pretty aggressively. Is it still like -- can I assume it's just 2.7% above $800 even if the gold price goes to like many times that and the sliding scale part is on the lower end? Or is there a function as we ramp up through certain higher prices that you get an extra kicker?

偉大的。我也這麼想。第二部分，你談到這是一個滑動比例，你給了我們大約 800 美元。但如果我記得的話，該地產周圍有一些規模相當大的規模。即使金價上漲很多倍並且滑動比例部分處於較低端，我是否可以假設它僅比 800 美元高出 2.7％？或者，當我們提高某些更高的價格時，是否有一種功能可以讓您獲得額外的獎勵？

The sliding scale tops out at $800 an ounce. So at today's prices and anything above $800 an ounce, it's 2.7%. We would obviously just get the benefit of the higher gold price in that scenario.

浮動價格最高為每盎司 800 美元。因此，以今天的價格計算，如果價格高於每盎司 800 美元，則為 2.7%。在這種情況下，我們顯然只會從金價上漲中受益。

Thank you. And at this time, we have no other questions registered. Please proceed with any closing remarks or Q&A on the web.

謝謝。目前，我們沒有登記任何其他問題。請繼續在網上發表任何結束語或問答。

Thank you, Sylvie. There are no questions on the webcast. This concludes our second quarter 2022 results conference call and webcast. We expect to release our third quarter 2023 results after market close on November 8, with a conference call held the following morning. Thank you for your interest in Franco-Nevada.

謝謝你，西爾維。網絡廣播中沒有任何問題。我們的 2022 年第二季度業績電話會議和網絡廣播到此結束。我們預計將在 11 月 8 日收盤後發布 2023 年第三季度業績，並於第二天早上舉行電話會議。感謝您對弗蘭科-內華達州的興趣。

Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。再次感謝您的出席。此時，我們要求您斷開線路。