Franco-Nevada Corp (FNV) 2024 Q1 法說會逐字稿

Good morning, and welcome to Franco-Nevada Corporation's First Quarter 2024 Results Conference Call and Webcast. This call is being recorded on May 2, 2024.

早安，歡迎參加 Franco-Nevada Corporation 2024 年第一季業績電話會議和網路廣播。此通話錄音於 2024 年 5 月 2 日進行。

(Operator's Instructions)

（操作員說明）

I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst, Investor Relations.

現在我想將會議交給主持人投資者關係高級分析師坎迪達·海登 (Candida Hayden)。

Please go ahead. Thank you, Julie. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's first quarter 2024 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results. The presentation is also available to view on the webcast. During our call this morning, Paul Brink, President and CEO, Frank 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 the telephone or via the webcast. We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on Slide 2 of this presentation. I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

請繼續。謝謝你，朱莉。大家，早安。感謝您今天加入我們討論 Franco-Nevada 2024 年第一季的業績。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。該簡報也可以透過網路廣播觀看。在今天早上的電話會議上，Frank Nevada 總裁兼首席執行官 Paul Brink 將發表介紹性講話，隨後首席財務官 Sandip Rana 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。參與者可以透過電話或網路廣播提交問題。我們想提醒與會者，今天的一些評論可能包含前瞻性信息，我們建議您參閱本簡報投影片 2 上的詳細警告說明。我現在將電話轉給法蘭科-內華達公司總裁兼執行長保羅‧布林克 (Paul Brink)。

Thank you, Candida, and good morning. Yesterday, we held our AGM here in Toronto, and we're pleased to have Hugo Dryland join our Board. Hugo has, for many years, led Rothschilds Metal and Mining Advisory business and amongst other areas, has extensive experience in project finance and international arbitration. Hugo fills the seat left empty Randall Oliphant sadly passed away last year. Our diversified portfolio performed well, and production for the quarter met our expectations. And the Kaio sales were above and Candelaria go sales slightly below our expectations. Elevated gold prices boosted our revenue and translated directly into some of our highest several margins. Adjusted EBITDA margin was 84.2% and adjusted net income margin was 56.9%. Royalties and new mines continue to contribute to our growth during the quarter gold fields for the first gold at Salares Norte and Rothschilds Myerosa. Equinox and G Mining are on track for first production at Greenstone and Taca Tazino, respectively, in the coming months. Alamos' planned acquisition of Argano will help realize the full potential of the Magino and the Island deposits, including a potential expansion of the Magino mill facility.

謝謝你，念珠菌，早安。昨天，我們在多倫多舉行了年度股東大會，我們很高興 Hugo Dryland 加入我們的董事會。雨果多年來一直領導羅斯柴爾德金屬和採礦諮詢業務，在專案融資和國際仲裁等領域擁有豐富的經驗。雨果填補了空缺的席位，蘭德爾·奧利芬特去年不幸去世。我們的多元化投資組合表現良好，本季的產量符合我們的預期。 Kaio 的銷售額高於我們的預期，而 Candelaria 的銷售額略低於我們的預期。金價上漲增加了我們的收入，並直接轉化為我們最高的利潤率之一。調整後 EBITDA 利潤率為 84.2%，調整後淨利率為 56.9%。特許權使用費和新礦場繼續為我們本季金礦區的成長做出貢獻，Salares Norte 和 Rothschilds Myerosa 的第一批金礦。 Equinox 和 G Mining 預計將在未來幾個月分別在 Greenstone 和 Taca Tazino 進行首次生產。 Alamos 計劃收購 Argano 將有助於充分發揮 Magino 和 Island 礦床的潛力，包括可能擴建 Magino 工廠。

Alberta reported good progress on the construction of Valentine Gold and production there is expected to start in the first half of 2025. While Cobre Panama remains in preservation and safe management, we're hopeful that the issues can be resolved. Panamanian election takes place this Sunday, May 5. On the business development front, we closed the previously announced acquisition of natural gas royalties in the Haynesville and added a number of smaller interests, an incremental royalty on Pasqua-Lama, a royalty on Scotty Resources, property in the Golden Triangle BC, an increase to the Condatableye gold stream in Peru and a silver royalty on perpetua that might go property in Idaho. Our organic growth typically accelerates on the back of high gold prices. A highlight for the quarter is the success that Agnico Eagle continues to have expanding the detailed to Lake coal body and also the East Goldie body at Canadian Malartic. -- ramp up. We have no debt, $2.3 billion in available capital and an active deal pipeline. I'll hand the call over to Sandip.

艾伯塔省報告稱，Valentine Gold 的建設進展順利，預計將於 2025 年上半年開始生產。巴拿馬選舉將於5 月5 日星期日舉行。 、Scotty Resources 的特許權使用費，不列顛哥倫比亞金三角的財產，秘魯 Condatableye 黃金流的增加以及可能成為愛達荷州財產的永久白銀特許權使用費。我們的有機成長通常會在金價高企的背景下加速。本季度的一大亮點是 Agnico Eagle 繼續將詳細範圍擴大到 Lake 煤體以及加拿大 Malartic 的 East Goldie 煤體。 - 斜坡上升。我們沒有債務，擁有 23 億美元的可用資本和活躍的交易管道。我會把電話轉給桑迪普。

Thank you, Paul. Good morning, everyone. As mentioned by Paul, our portfolio of assets continued to perform well and were in line with expectations for first quarter 2024. With respect to performance in the quarter, on Slide 4, we highlight the gold equivalent ounces sold for the last 5 quarters. As you are aware, Cobre Panama has not contributed any geos or revenue for 2024 that is under preservation and safe management. On the slide, we've highlighted over Pana separately for prior periods. Total GEOs sold for 122,897 for Q1 2024. This compares to 145,331 for the same period in 2023. Of this precious metal geos were 93,018 compared to $111,238 in the prior year. However, Cobre Panama is excluded from prior year comparatives. -- precious metals POs were actually higher year-over-year at 93018 versus 82,575GOs. This increase was due to strong contributions from Hanaka, Guadalupe and Sabeco, all of which had strong production in the first quarter of 2024. This increase was partially offset by lower GEO sold for Sudbury due to lower production and stole water, which was due to the impact of converting weaker platinum plating revenue to geos.

謝謝你，保羅。大家，早安。正如Paul 所提到的，我們的資產組合繼續表現良好，符合2024 年第一季的預期。 。如您所知，Cobre巴拿馬尚未為 2024 年貢獻任何受保護和安全管理的地理或收入。在幻燈片上，我們單獨突出顯示了之前時期的帕納。 2024 年第一季度，GEO 總售價為 122,897 枚。然而，Cobre巴拿馬被排除在去年的比較之外。 -- 貴金屬 PO 數量實際上比去年同期更高，為 93018 份，而 GO 數量為 82,575 份。這一增長得益於哈納卡(Hanaka)、瓜達盧佩(Guadalupe) 和薩貝科(Sabeco) 的強勁貢獻，這些國家在2024 年第一季的產量都強勁。伯里(Sudbury) 銷售的GEO 銷售下降部分抵消，原因是產量下降和偷水。

In addition, we were delivered approximately 3,000 geos for Condasable, which remain in inventory at the end of the quarter. These ounces were not sold during the first quarter and have subsequently been sold post quarter end. Precious metal geos represented approximately 76% of total GEOs for the quarter. For diversified geos, our Vale royalty contributed an increase in GEOs for the quarter compared to prior year due to a higher-than-anticipated royalty payment, reflecting higher iron ore sales during the second half of 2023. 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 of each year. As a result, you will see adjustments to revenue twice a year in the first and third quarter of each year. Energy GEOs were lower at 21,082 for Q1 compared to 25,952 a year ago. The decrease in GEOs is a combination of lower revenue due to weaker natural gas prices, but also the impact of converting energy revenue to geos using higher gold prices. Q1 2024 saw continued movement in average commodity prices. As you see on Slide 5, gold and silver prices were higher for the quarter when compared to prior year.

此外，我們還為 Condasable 交付了約 3,000 個 geo，截至本季末仍處於庫存狀態。這些盎司在第一季沒有出售，隨後在季度末出售。貴金屬 Geos 約佔本季 GEO 總量的 76%。對於多元化的地理資源，由於特許權使用費高於預期，我們的淡水河谷特許權使用費為本季度的GEO 貢獻了比上一年更多的增長，反映出2023 年下半年鐵礦石銷量的增加。因此，您將在每年第一季和第三季看到收入每年兩次調整。第一季能源 GEO 數量為 21,082，低於去年同期的 25,952。 GEO 的減少是由於天然氣價格疲軟導致收入減少，以及使用較高的黃金價格將能源收入轉換為 Geos 的影響。 2024 年第一季度，平均大宗商品價格持續變動。正如您在幻燈片 5 中看到的那樣，本季的黃金和白銀價格高於去年同期。

However, platinum and in particular, play in prices were significantly lower year-over-year, which did negatively impact the conversion of PGM revenue to Geos. Oil prices were relatively flat with natural gas being sharply lower. Slide 6 highlights our total revenue and adjusted EBITDA amounts for the last 5 quarters. As you can see from the bar charts, revenue and adjusted EBITDA are lower in Q1 2024 compared to prior quarters. The company recorded $256.8 million in revenue in first quarter and $216.1 million adjusted EBITDA, a margin of 84.2% was achieved for the quarter. The lower revenue and adjusted EBITDA are due to less GEOs sold during the quarter compared to prior year. The impact on both revenue and adjusted EBITDA of the lower GEOs was partially offset by higher gold and silver prices. In fact, while GEOs sold are lower by 15% year-over-year, total revenue was lower by 7%. As you turn to Slide 7, you'll see the key financial results for the company. As mentioned, total GEOs were 122,897, generating $256.8 million in revenue and $216.1 million in adjusted EBITDA. On the cost side, we did have a decrease in cost of sales compared to prior year as we did not incur the ongoing fixed cost for ounces delivered by Cobre Panama.

然而，鉑金，尤其是價格波動明顯低於去年同期，這確實對鉑族金屬收入向 Geos 的轉換產生了負面影響。石油價格相對持平，天然氣價格大幅下跌。投影片 6 重點介紹了我們過去 5 個季度的總收入和調整後 EBITDA 金額。從長條圖中可以看出，2024 年第一季的營收和調整後 EBITDA 低於前幾季。該公司第一季營收為 2.568 億美元，調整後 EBITDA 為 2.161 億美元，該季利潤率為 84.2%。收入和調整後 EBITDA 較低的原因是本季銷售的 GEO 與去年同期相比減少。較低 GEO 對收入和調整後 EBITDA 的影響被金銀價格上漲部分抵消。事實上，雖然 GEO 的銷量年減了 15%，但總收入卻下降了 7%。當您翻到幻燈片 7 時，您將看到該公司的主要財務表現。如前所述，GEO 總數為 122,897，產生 2.568 億美元的收入和 2.161 億美元的調整後 EBITDA。在成本方面，與去年相比，我們的銷售成本確實有所下降，因為我們沒有承擔 Cobre巴拿馬交付的盎司的持續固定成本。

Also, cost of sales is dependent on which assets deliver stream ounces as not all fixed payments per stream are equal. Depletion decreased to $58.2 million versus $61 million a year ago. The decrease in depletion was a combination of no depletion being recorded for Cobre Panama being partially offset by higher depletion for Anteciand the new Haynesville Matias acquisition. Adjusted net income was $146 million compared to $152.2 million in Q1 2023 and adjusted EPS of $0.76 per share for the quarter, lower by 3.8% versus prior year. Slide 8 highlights the continued diversification of the portfolio. From the chart, you can see that 76% of our first quarter 2024 revenue was generated by precious metals, with revenue being sourced 83% from the Americas. Slide 9 illustrates the strength of our business model to generate high margins. For Q1 2024, the cash cost per GEO, which is essentially cost of sales divided by gold equivalent ounces sold was $273 per GEO. This compares to $263 per TO in Q1 2023. Margin was approximately $1,800 per ounce in the first quarter. The average gold price was higher by $183 per ounce for Q1 2024 compared to Q1 2023.

此外，銷售成本取決於哪些資產提供流盎司，因為並非每個流的所有固定付款都是相等的。消耗減少至 5,820 萬美元，而一年前為 6,100 萬美元。消耗量的減少是由於 Cobre巴拿馬沒有記錄消耗量，但被 Antecian 和新收購的 Haynesville Matias 的消耗量增加部分抵消。調整後淨利為 1.46 億美元，而 2023 年第一季為 1.522 億美元，該季度調整後每股收益為 0.76 美元，比去年同期下降 3.8%。投影片 8 強調了投資組合的持續多元化。從圖表中您可以看到，我們 2024 年第一季營收的 76% 來自貴金屬，其中 83% 的營收來自美洲。幻燈片 9 展示了我們的業務模式在產生高利潤方面的優勢。 2024 年第一季度，每 GEO 的現金成本（本質上是銷售成本除以銷售的黃金當量盎司）為每 GEO 273 美元。相比之下，2023 年第一季的毛利為每盎司 263 美元。與 2023 年第一季相比，2024 年第一季的平均金價每盎司上漲 183 美元。

At the same time, Franco Nevada's margin was higher by $173 per ounce or 95% of the global price increase in the Same Sure. a rising commodity price environment, we expect to benefit fully as the cost per GEO sold should not increase significantly. The other cost component for the company besides cost of sales is our corporate administration costs. The royalty streaming business model is a scalable model. Our corporate admin costs have increased at a much slower rate than our revenue. Revenues increased ninefold from Q1 2008, while corporate equity costs has increased by 2.5x for the same period. Management believes we can continue to add to our portfolio and grow our business without adding significant overhead to the company. Earlier this year, we had guided to $10 million to $15 million in estimated costs for Cobrapama arbitration. For the first quarter, we incurred $1.4 million in costs. We expect the cost to be weighted more towards the second half of the year. And lastly, Slide 11 summarizes the financial resources available to the company when including our credit facility of $1 billion, total available capital as at March 31, 2024, to $2.3 billion. And now I'll pass it over to Julie, and we're happy to answer any questions.

同時，Franco Nevada 的利潤率每盎司高出 173 美元，佔 Same Sure 全球價格漲幅的 95%。在大宗商品價格上漲的環境下，我們預計將充分受益，因為每個 GEO 的銷售成本不會大幅增加。除了銷售成本之外，公司的另一個成本組成部分是我們的企業管理成本。版稅流業務模式是一個可擴展的模式。我們的企業管理成本的成長速度遠低於收入的成長速度。營收比 2008 年第一季成長了九倍，而同期企業股權成本成長了 2.5 倍。管理層相信我們可以繼續增加我們的投資組合併發展我們的業務，而不會給公司增加大量管理費用。今年早些時候，我們預計 Cobrapama 仲裁的費用為 1,000 萬至 1,500 萬美元。第一季度，我們產生了 140 萬美元的成本。我們預計今年下半年成本的權重將更大。最後，投影片 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 2024 年 3 月 31 日的可用資本總額為 23 億美元。現在我會將其轉交給朱莉，我們很樂意回答任何問題。

[Operator's Instructions)

[操作者須知]

Your first question comes from Brian MacArthur from Raymond James.

你的第一個問題來自雷蒙德詹姆斯的布萊恩麥克阿瑟。

You've left guidance of GEOs unchanged, but there's a lot of different assumptions, which you sort of talked about commodity prices moving in the first quarter. I mean, now you're much higher gold price assumptions going forward, much lower gas prices. My question really is, is there anything on a volume basis that significantly changed that you're seeing in your portfolio since the beginning of the year? And maybe it's oil and gas because gas prices are -- have gone down? And secondly, it looked like anticapi versus what you give on a gold GEO basis, had a pretty good first quarter. Is that sustainable? Or does it fall off through the year? It kind of goes into the overall volume question?

您對 GEO 的指導保持不變，但有很多不同的假設，您談到了第一季大宗商品價格的變動。我的意思是，現在你對未來金價的假設要高得多，天然氣價格也低得多。我的問題實際上是，自今年年初以來，您在投資組合中看到的數量基礎上是否發生了顯著變化？也許是石油和天然氣，因為天然氣價格已經下降了？其次，看起來與你在黃金 GEO 基礎上給出的預期相比，第一季的表現相當不錯。這是可持續的嗎？還是一年四季都會脫落？這涉及到整體音量問題嗎？

Thanks for the question, Brian. On a production basis, as we said, the asset, both mining and energy from a production volume basis are in line with expectations. So right now, from a production standpoint, they're in line, obviously, commodity prices are moving around, but we are within our guidance range at this point. With respect to EI would expect or we do expect to fall off towards -- for the rest of the year and still be within that guidance range we provided as part of our year-end results.

謝謝你的提問，布萊恩。正如我們所說，從產量來看，資產、採礦和能源產量均符合預期。所以現在，從生產的角度來看，它們是一致的，顯然，大宗商品價格正在波動，但目前我們在我們的指導範圍內。就 EI 而言，預計或確實預計在今年剩餘時間內會下降，但仍處於我們作為年終業績一部分提供的指導範圍內。

And my second question just relates to Condastable and the increase from up to 37.5% and 25%. I assume everything else, the points where it kicks in are all still the same, so to be kind of middle 2030s or if you can guide when that -- you see that 25% to 37.5% kicking in, please?

我的第二個問題與 Condastable 有關，增幅高達 37.5% 和 25%。我假設其他一切，它起作用的點仍然是相同的，所以到 2030 年代中期，或者如果你能在那個時候提供指導——你看到 25% 到 37.5% 起作用了，好嗎？

Yes, the change really just relates to the final rate. So you wouldn't expect the rest to change meaningfully in the near to term.

是的，變化確實只與最終費率有關。因此，您不會期望其他內容在短期內發生有意義的變化。

And is mid-20 30 sort of where you see that now kicking up. I just don't have the data on how that's developed since the original deal.

到了 20 月 30 日中期，你會看到這種情況正在加劇。我只是沒有關於自最初交易以來這是如何發展的數據。

Yes. I don't have that immediately handy. We are fixed deliveries. I think it was for the first 5 years. those come off and it goes through a variable percentage in terms of the exact estimate as to when those -- the second variable percentage kicks in. I don't have that offhand. Unfortunately, we can chat offline.

是的。我沒有立即方便的。我們是固定交貨的。我想這是前5年的事。那些脫落後，它會經歷一個可變的百分比，根據確切的估計，當這些 - 第二個可變百分比開始起作用時。不幸的是，我們可以離線聊天。

Great. And maybe my final question. Just, Sandip, on the accounting for the taxes on a global basis, can you just review how you're going to do that given when it technically gets enacted?

偉大的。也許是我的最後一個問題。只是，桑迪普，關於全球稅收的核算，您能否回顧一下在技術上頒布後您將如何做到這一點？

So right now, it's not an active net of Barbados or Canada. So for the foreseeable future, our effective tax rate will be 15% roughly. But when it is enacted, assuming it's retroactive, there will be an adjustment in that quarter, which we did highlight, it will be an adjustment to taxes of about $47 million. And as guided at the end of the year, we expect our effective tax rate to be about 19% going forward.

所以現在，它不是巴貝多或加拿大的活躍網絡。所以在可預見的未來，我們的有效稅率大約是15%。但當它頒佈時，假設它具有追溯力，該季度將會進行調整，我們確實強調了這一點，這將是大約 4700 萬美元的稅收調整。按照年底的指導，我們預計未來的有效稅率約為 19%。

Your next question comes from Heiko Ihle from HC Range.

您的下一個問題來自 HC Range 的 Heiko Ihle。

You've made quite a meaningful number of acquisitions here in the last few months. In your intro on the earnings release, you also state that you still have an active deal pipeline. -- unsurprising, but still good to hear. -- conceptually, are you seeing pricing improvement from sellers of streams that are more willing to negotiate right now? And if so, are you seeing this phenomenon more in mining or more in energy?

在過去的幾個月裡，你們在這裡進行了相當多的收購。在收益發布的介紹中，您也表示您仍然擁有活躍的交易管道。 ——這並不奇怪，但還是很高興聽到。 ——從概念上講，您是否看到現在更願意談判的串流賣家的定價有所改善？如果是這樣，您在採礦業還是在能源業看到更多這種現象？

I'd say the -- in this environment, probably the main impact is with gold prices moving up, players that have got precious metal byproducts. It's a very attractive environment for them to raise capital through the sale of a precious metal stream that's the predominant trend right now, and that's making for an active deal pipeline.

我想說的是——在這種環境下，主要影響可能是金價上漲，玩家獲得了貴金屬副產品。對他們來說，透過出售貴金屬流來籌集資金是一個非常有吸引力的環境，這是目前的主導趨勢，這也促成了活躍的交易管道。

Fair enough. Building on that last question. I mean with gold prices where they are inflation levels where they are, has there been a bit of a shift with sellers looking for fixed fees versus a percentage of spot pricing as your cash payment? Or is there -- is it just the same and they more or less take whatever they can get.

很公平。以最後一個問題為基礎。我的意思是，對於黃金價格而言，它們處於通膨水平，賣家尋求固定費用與現貨定價百分比作為現金支付的方式是否有一些轉變？或者是不是一樣——他們或多或少會拿走他們能得到的一切。

I would say, really, the market has shifted towards the percentage in terms of the fee we pay to the seller. Fixed is far less common these days. And I haven't seen any have any trend there recently other than to kind of maintain that.

我想說，實際上，市場已經轉向我們向賣家支付的費用百分比。如今，固定的情況已經不太常見了。除了維持這種趨勢之外，我最近沒有看到任何趨勢。

Your next question comes from Cosmos Chiu from CIBC.

您的下一個問題來自 CIBC 的 Cosmos Chiu。

Maybe my first question is on Panama. As you know, the election is coming up this weekend on May 5. Is this something that you're watching closely? Any variables that you might be watching for? And do you see a potential outcome that could impact Franco-Nevada in the near term? Or is it really a longer-term sort of event too?

也許我的第一個問題是關於巴拿馬的。如您所知，5 月 5 日本週末選舉即將到來。您可能會關注任何變數嗎？您認為短期內可能會影響弗蘭科-內華達州的潛在結果嗎？或者這真的也是一個長期的事件嗎？

Cosmos, yes. We're working it closely in the lead up to the election and no surprise. Given what happened in the country and the purple sentiment against mining in against the mine, I'd say all the candidates have been quite circumspect in terms of commenting on what their approach might be, so we're hopeful that with the new government in place that there can be a new dialogue. And I'm sure that First Quantum will be engaging with whoever that is to see if there is a route to find a way to reopen the mine.

宇宙，是的。我們在選舉前密切合作，這並不奇怪。考慮到該國發生的事情以及反對採礦的紫色情緒，我想說，所有候選人在評論他們的做法時都非常謹慎，因此我們希望新政府能夠進行新對話的地方。我確信第一量子將與任何人接觸，看看是否有辦法找到重新開放礦井的方法。

Of course. And going to your financial statements here. I noticed that your finance income, $16 million has increased quite a bit year-over-year and quarter-over-quarter as well. I just want to make sure, is that just due to the G-mining term loan? And if that's the case, what else is you more?

當然。並在此處查看您的財務報表。我注意到你們的財務收入 1600 萬美元同比和環比都有了相當大的增長。我只是想確定一下，這只是因為 G-mining 定期貸款嗎？如果真是這樣，你還有什麼呢？

So Cosmos, the interest income is in 2 places on the financials this quarter up in revenue. You'll see interest income that relates to actual interest on the G mining loan as well as the tenant note that we did at the end of last year. So any loans we've made up that interest is coming up in revenue now, and there was about $1.2 million for the quarter. The finance income you're referring to, the $16 million, that is the interest we're earning on our cash balance.

因此，Cosmos 本季的財務數據中，利息收入比收入高出兩位。您將看到與 G 採礦貸款實際利息相關的利息收入以及我們去年年底所做的租戶票據。因此，我們所償還的任何貸款現在都會計入收入，本季的收入約為 120 萬美元。你所說的財務收入，1600 萬美元，是我們從現金餘額中賺取的利息。

Okay. Okay. And is there a reason why you separate those 2 or just really account...

好的。好的。是否有理由將這兩個分開或只是真正的帳戶...

It's all accounting, technical related. The loan interest because it's related to mining assets and up in revenue, and we intend to do more debt-like structures going forward. So we've included that uptown.

這都是與會計、技術相關的。貸款利息因為它與礦業資產和收入成長有關，我們打算未來做更多類似債務的結構。所以我們把那個住宅區也包括在內了。

Okay. Sounds good. And then maybe one last question again on the accounting side as well. I know Brian asked it earlier in terms of the global minimum taxes. But it sounds like now Barbados has their own legislation and Canada also has their own sort of legislation that's going through. Is there a situation where in terms of timing, when legislation of 2 countries are being enacted? Is there a chance that things can get really complicated later on if they're enacted at different times, different quarters? Or is that something that we don't really need to worry?

好的。聽起來不錯。也許最後一個問題也是關於會計方面的。我知道布萊恩早前曾問過全球最低稅的問題。但聽起來現在巴貝多有自己的立法，加拿大也有自己的立法正在通過。從時間來看，是否存在兩個國家的立法同時頒布的情況？如果在不同時間、不同季度頒布，事情是否有可能變得非常複雜？或者說這是我們不需要擔心的事？

So our understanding right now, neither one has been active in laws. Barbados effective tax rate will be 15% going forward once the law is enacted, but our understanding is contingent on Canada implementing the GMT. So they should both come into play at the same time. But obviously, we'll have to wait and see.

據我們目前的了解，兩人都沒有積極參與法律。一旦法律頒布，巴貝多的有效稅率將為 15%，但我們的理解取決於加拿大實施 GMT。所以它們應該同時發揮作用。但顯然，我們必須拭目以待。

Your next question comes from Tanya Jakusconek from Scotiabank.

您的下一個問題來自豐業銀行的 Tanya Jakusconek。

Some of my questions have been answered. But I've got to come back to just Hemlo, Sandy. How should we be thinking of this royalty because this one is always quite variable. What guidance can you give us for the year?

我的一些問題已經得到解答。但我必須回到赫姆洛，桑迪。我們應該如何看待這一版稅，因為它總是變化很大。今年您能給我們什麼指導？

It was lower than I expected in Q1, considering where commodity prices were. And I think Per Barrick's released yesterday, they had higher costs. So going forward, I think we stick with what we had guided to as part of our year-end guidance. It's probably going to be at this stage similar to last year, but we'll have to see how the year unfolds.

考慮到大宗商品價格的水平，這一數字低於我對第一季的預期。我認為昨天發布的巴里克的成本更高。因此，展望未來，我認為我們將堅持作為年終指導的一部分的指導方針。現階段的情況可能與去年類似，但我們必須看看今年的情況如何。

Okay. And then for Mine Waste Solution that we're getting to the cap, so that would imply the rest of the year a bit lower, would that seem fair?

好的。然後，對於礦山廢物解決方案，我們即將達到上限，因此這意味著今年剩餘時間的價格會降低一些，這看起來公平嗎？

Yes. So we do anticipate to reach the cap in Q4 this year, depending upon how the next 2 quarters play out, it could be early in Q4.

是的。因此，我們預計今年第四季達到上限，具體取決於接下來兩個季度的情況，可能會在第四季初達到。

Okay. No, that's what we have as well. And then as we look at the year with everything said and done, and I appreciate a lot of variability, but should we be thinking that a slightly better second half with some of the new mines coming in? And can you just remind me for Q2 and Q3 when the new contributions are coming in. So first stronger second half, should we be thinking like 52%, 53% of GEOs and then the new mines, if you can remind me what who's coming in Q2, Q3.

好的。不，我們也有這樣的。然後，當我們回顧這一年的所有說過和做過的事情時，我很欣賞很多變化，但我們是否應該認為下半年會隨著一些新礦的投入而稍微好一點？您能否提醒我第二季和第三季新貢獻何時到來。會來的話在第二季、第三季。

Sure. Yes. So we do expect a stronger second half and not just because, as you said, the new mines will be online. In Q2, Greenstone is pouring -- sorry, Equinox is pouring first gold for Greenstone and second quarter, Solaris Norte, tokens with G-mining is Q3. I don't have the specific split as to whether it's 52, 48 or what have you, but definitely a stronger second half.

當然。是的。因此，我們確實預計下半年會更加強勁，而不僅僅是因為正如您所說，新礦將上線。在第二季度，Greenstone 正在傾注——抱歉，Equinox 正在為 Greenstone 傾注第一批黃金，第二季度，Solaris Norte，G 挖礦的代幣是第三季度。我不知道具體是 52 分、48 分還是你的，但下半場一定會更強。

I just want to make sure because production, I mean, you get paid exactly when they start producing. There's no deferral from my understanding, even if they're noncommercial.

我只是想確保，因為生產，我的意思是，你在他們開始生產時得到確切的報酬。根據我的理解，即使它們是非商業性的，也不會延遲。

Yes. So on the royalties, we accrue the revenue if ounces have been produced we're entitled to it. So we will accrue even if we haven't been paid, but we will accrue.

是的。因此，就特許權使用費而言，如果生產了我們有權獲得的盎司，我們就會累積收入。因此，即使我們沒有得到報酬，我們也會積累，但我們會積累。

Perfect. And then just on the environment, I think, Paul, you mentioned that what you're seeing right now is mainly streams on non-gold assets for precious metals, so base metal producers. Can you just come back and verify that we're looking at that sort of like $100 million to $300 million range. Is that still the range that you're thinking about for the stream?

完美的。然後就環境而言，我想，保羅，您提到您現在看到的主要是貴金屬的非黃金資產流，即賤金屬生產商。您能否回來確認我們正在考慮 1 億至 3 億美元的範圍。這仍然是您為流考慮的範圍嗎？

Yes. Good question. As Paul noted, it's an active pipeline. It's been evolving over the course of the year so far. I'd say, generally, the size has scaled up a bit, Tanya beyond 300, you're seeing more potential for larger transactions as well. So we're quite encouraged by that.

是的。好問題。正如保羅所指出的，這是一個活躍的管道。到目前為止，這一年以來它一直在不斷發展。我想說的是，一般來說，規模已經擴大了一點，Tanya 超過了 300，您也會看到更大交易的更多潛力。所以我們對此感到非常鼓舞。

And when you say larger transaction, are we talking in over $500 million or still under $5 million?

當您說較大的交易時，我們所說的是超過 5 億美元還是低於 500 萬美元？

There are transactions at the 500 and above level that are possible. So that's perhaps the change versus the last time we spoke. There still are smaller transactions. And as Paul said, byproduct transactions are more common than they work that said, with the capital still constrained to the gold space with gold producers. I think there's still decent loot to transact.

500 及以上級別的交易是可能的。這也許就是我們上次談話時的改變。仍有較小規模的交易。正如保羅所說，副產品交易比所說的更常見，資本仍然局限於黃金生產商的黃金領域。我認為仍有可觀的戰利品可供交易。

I would assume, Eaun, with the higher gold price for gold producers that would want to put some sort of royalty or stream on our gold assets with this higher gold price their overall view on their valuation has gone up. Would that be a fair statement to say.

Eaun，我認為，隨著金價上漲，黃金生產商希望對我們的黃金資產徵收某種特許權使用費或流，隨著金價上漲，他們對其估值的總體看法有所上升。這是一個公平的說法嗎？

Yes, I think so. byproducts presses producer is probably also a similar elevated view, did take a balanced view on gold price, but certainly constructive on that as well.

是的，我想是這樣。副產品壓力生產商可能也持類似的高調觀點，確實對金價持平衡看法，但肯定也是有建設性的。

Okay. And then, Ian, maybe just on -- I know in your Investor Day, I think it was Paul that mentioned that you are looking at lithium potential transaction and other non-gold transactions. Can you just comment on where you are on that, whether we're still -- those are in the pipeline and whether we can see those in 2024? Or is the focus still gold ahead of these non-gold?

好的。然後，伊恩，也許就在——我知道在你的投資者日，我認為是保羅提到你正在考慮鋰潛在交易和其他非黃金交易。您能否評論一下您在這方面的進展，我們是否仍在醞釀這些計劃，以及我們是否可以在 2024 年看到這些計劃？或者焦點仍然是黃金，而不是這些非黃金？

I would say that the focus still is on goal. I think that's where we spend the majority of our time. That said, there are a lot of opportunities in many different commodities right now. Lithium is one that is interesting to us, just given where we are in the price cycle. There's obviously been a significant pullback in the lithium price, which has created a bit of a balance for developers looking to finance new mines. And so there is, as a consequence, potentially a role there for us to play a part. And so it's something that we're spending time on and we may be active this year, just depends on the opportunities that are in front of us.

我想說，重點仍然是目標。我認為這就是我們花費大部分時間的地方。也就是說，目前許多不同的商品都存在著許多機會。考慮到我們處於價格週期中的位置，鋰是我們感興趣的一種。鋰價格顯然大幅回落，這為尋求融資新礦的開發商創造了一定的平衡。因此，我們有可能在其中發揮作用。因此，這是我們正在花時間做的事情，今年我們可能會積極行動，這取決於我們面前的機會。

And what size would those opportunities be in Jason?

傑森的機會有多大？

It's a range. I think probably the sweet spot for us would be maybe up $50 to $300 million, $400 million if we did something very sizable.

這是一個範圍。我認為對我們來說最有利的可能是增加 50 至 3 億美元，如果我們做一些非常大的事情，可能會增加 4 億美元。

Okay. And my last question, if I could, just on uranium, we've seen volatility in that space as well. Anything in terms of looking at uranium for you guys?

好的。我的最後一個問題，如果可以的話，就鈾而言，我們也看到了該領域的波動。你們有什麼關於尋找鈾的事情嗎？

We do look at uranium from time to time. There aren't as many assets available for us to participate in. There's a couple that we keep our eye on, but it's not something that we're spending a lot of time on these despite the change in commodity price.

我們確實時不時地關注鈾。可供我們參與的資產並不多。

Your next question comes from John Tumazos from John Tumazos very Independent Research.

您的下一個問題來自約翰·圖馬佐斯非常獨立研究中心的約翰·圖馬佐斯。

It's always hard to figure out how the value things Presumably, Franco, as you approach new transactions, values them at the spot gold price or today 2,300-ish -- and then you put a capitalization rate based on the mine life and quality -- and maybe that would have been 8 or 10x revenue for a simple royalty or adjusting for how much in the money a stream is but gold stocks are actually a little bit lower even though gold is huge. And now there's the minimum tax rate, which equips your return a little bit. So is it fair to assume that given the valuation of gold stocks and the PAC status, not only at Franco, but your cures as well that you'd be capitalizing revenue at a lower rate going forward than you might have a couple of years ago? Also, interest rates are higher. That's another factor, excuse me.

總是很難弄清楚價值如何。化率——對於簡單的特許權使用費或調整流的貨幣量，這可能是收入的 8 或 10 倍，但黃金庫存實際上要低一些，儘管黃金數量巨大。現在有最低稅率，這對您的申報表有一定的幫助。因此，考慮到黃金股的估值和 PAC 的地位，不僅是佛朗哥，還有你的療法，你未來的收入資本化率將低於幾年前，這樣的假設是否公平？ ？此外，利率也較高。這是另一個因素，請原諒。

John, it's Paul. A lot of things in there. one thing, any time we're looking at a property it's less so commodity prices, it's more figuring out what are we comfortable is there, happy price, pay for some price for what we're comfortable will get produced and then want to participate in the upside, and it's really getting the calls right and being able to participate in the upside that generally has the greatest impact on our returns. So the vast majority of our work, though, is figuring out what are we comfortable will get produced. -- particularly when you're looking at development projects, it's -- sometimes our view is less than what you can see in reserves. Sometimes it's far more That's, by far, the biggest determinant. In terms of commodity prices, we're trying to price deals in the context of the market. The trick is you don't want to get caught when prices run up sharply and paying peak prices. And on the other hand, when the market turns down, that's really where you want to get your deals done.

約翰，是保羅。裡面有很多東西。有一件事，任何時候我們在考慮一處房產時，都不那麼關心商品價格，而更多的是弄清楚我們舒適的東西在那裡，滿意的價格，為我們舒適的東西支付一些價格，然後想要參與其中在上行方面，真正對我們的回報影響最大的是正確判斷並能夠參與上行。因此，我們的絕大多數工作都是弄清楚我們會舒服地生產什麼。 - 特別是當你在考慮開發專案時，有時我們的觀點比你在儲備中看到的要少。有時候，這是迄今為止最大的決定因素。就大宗商品價格而言，我們試圖在市場背景下對交易進行定價。訣竅在於，您不想在價格急劇上漲並支付高峰價格時陷入困境。另一方面，當市場下跌時，這就是您真正想要完成交易的地方。

You don't want to get caught up using bear market prices because you undervalue everything. So it's -- in a sense, it's trying to take a longer-term view of prices regardless of where the market has moved to the time. On your last comment in terms of rates and how do we think about rates, we think of it as a bit of a competitive advantage and the competitive advantage is we don't have much debt. So with so many parties, their cost of capital is moving up and down with their cost of debt. We don't really have that. So we think it's an advantage. We can do deals in the market, we can extend capital to people at a more consistent rate than other players over time. And so particularly when other folks are forced to use a higher cost of capital, we don't have to. And I think that's a bit of a competitive advantage.

你不想因為低估了一切而陷入熊市價格。因此，從某種意義上說，它試圖以更長遠的眼光來看待價格，無論市場當時的趨勢如何。關於您最後關於利率的評論以及我們如何看待利率，我們認為這是一種競爭優勢，而競爭優勢是我們沒有太多債務。因此，對於如此多的參與者，他們的資本成本隨著債務成本的變化而上下波動。我們確實沒有那個。所以我們認為這是一個優勢。我們可以在市場上進行交易，隨著時間的推移，我們可以以比其他參與者更一致的速度向人們提供資金。因此，特別是當其他人被迫使用更高的資本成本時，我們不必這樣做。我認為這是一個競爭優勢。

Your next question comes from Tanya Jakusconek from Scotiabank.

您的下一個問題來自豐業銀行的 Tanya Jakusconek。

Sorry, I forgot to ask us how Cobre Panama. I know Cosmos asked about it with the election happening on May 5. But can you just review for us, when do the parties actually then get into office? Are we talking like July or thereabouts? And once they get into office, are we expecting more clarity? So maybe just a bit of a time frame for us on getting some news out on Cobre Panama.

抱歉，我忘了問我們 Cobre 巴拿馬怎麼樣。我知道 Cosmos 在 5 月 5 日大選時問過這個問題。我們談論的是七月左右嗎？一旦他們上任，我們是否期待更多的澄清？因此，也許我們需要一點時間來了解巴拿馬銅礦的一些消息。

Tanya, you're exactly right. Election coming up now, but the actual official change of government will only happen in July. So that's the first time that they could -- they're in a position of power. It doesn't mean that you can't have dialogue with them before that. But to your point, I don't expect any news, any direction on Cobre until later in the summer.

塔妮婭，你說得完全正確。選舉即將到來，但真正的政府更迭要到七月才會發生。所以這是他們第一次能夠──他們處於權力地位。這並不意味著在此之前你不能與他們對話。但就你的觀點而言，我預計直到今年夏天晚些時候才會有關於 Cobre 的任何消息和方向。

Okay. No, that's very helpful because we maybe all be waiting Saturday, Sunday night and then Monday morning, thinking something might be said. But probably realistically, it's probably not until the end of the summer.

好的。不，這非常有幫助，因為我們可能都在等待週六、週日晚上，然後是週一早上，想著可能會說些什麼。但實際上，可能要等到夏末才能實現。

We hope sooner, but you got to be realistic.

我們希望能早點實現，但你必須現實一點。

There are no further questions on the phone line. I will now to Q&A session over to Candida Hayden. We will take questions from the webcast.

電話線上沒有進一步的問題。現在我將把問答環節交給 Candida Hayden。我們將回答網路廣播中的問題。

Our first question comes from Dipan Nayak. Do you plan to do any share buybacks in 2024.

我們的第一個問題來自 Dipan Nayak。您計劃在 2024 年進行任何股票回購嗎？

We do have a large cash balance on our balance sheet. But our #1 priority is to add assets to the portfolio. It comes down to what's the best use of a dollar and for us to continue to add assets. So no, the -- we don't intend to do a share buyback.

我們的資產負債表上確實有大量現金餘額。但我們的第一要務是為投資組合中添加資產。歸根結底，這取決於美元的最佳用途以及我們繼續增加資產的問題。所以不，我們不打算進行股票回購。

Your second question also comes from Dipan Nayak. Do you have any option of storing physical gold, assuming price would go up in the medium term?

你的第二個問題也來自迪潘·納亞克。假設價格在中期內上漲，您是否可以選擇儲存實體黃金？

We do have the option. It comes down to streams versus royalties. Streams we do get physical credits of precious metals to Franco-Nevada. But for accounting to book revenue, we have to sell that metal. So that's what we do on a quarterly basis. There are some royalties that we actually do receive in kind. And so on any given time, we have roughly 20,000 to 25,000 ounces of gold to our account held in various refineries around the world. But there is no plan to increase that level at this stage.

我們確實有選擇。這歸結為流量與版稅。我們確實獲得了弗蘭科-內華達州的貴金屬實物信用。但為了計入帳面收入，我們必須出售該金屬。這就是我們每季所做的事情。我們實際上確實收到了一些實體版稅。因此，在任何給定時間，我們的帳戶上都有大約 20,000 至 25,000 盎司的黃金存放在世界各地的各個精煉廠中。但現階段沒有計劃提高這一水平。

Next question comes from Diego Termite from Oster Capital Management. What are the next steps to consider in the Cobre Panama arbitration? And can the election have any impact on the process of arbitration.

下一個問題來自 Oster Capital Management 的 Diego Termite。 Cobre 巴拿馬仲裁案下一步要考慮哪些步驟？此次選舉是否會對仲裁進程產生影響？

Thanks for the question, Diego. It's Lloyd Hong. In terms of the next steps, as we previously disclosed, we have filed a notice of intent to initiate arbitration. And the next step following that would be to actually file a request for arbitration to formally kick that off. In terms of the election process, as Paul had mentioned, I mean, we are -- we hope for the first Quanta will be able to engage in a constructive dialogue with the new government once it's elected, which should lead to the potential restart of the mine. And obviously, that would impact whether the arbitration proceeds are not.

謝謝你的提問，迭戈。我是勞埃德·洪。至於接下來的步驟，正如我們先前所揭露的，我們已經提交了啟動仲裁的意向通知。接下來的下一步將是實際提交仲裁請求以正式啟動。就選舉過程而言，正如保羅所提到的，我的意思是，我們希望，一旦新政府當選，廣達將能夠與新政府進行建設性對話，這應該會導致新政府可能重新啟動。顯然，這會影響仲裁收益是否不受影響。

Your next question comes from Bernie Picchi at Palisade Capital. BHP's interest in client sorry, Anglo makes me wonder if Franco-Nevada has opportunities in the current mining industry M&A environment, knowing this has not been your traditional area of opportunity.

您的下一個問題來自 Palisade Capital 的 Bernie Picchi。必和必拓對客戶的興趣抱歉，英美資源集團讓我想知道弗蘭科-內華達在當前採礦業併購環境中是否有機會，因為知道這不是您傳統的機會領域。

Thanks for the question. I would say when I saw that potential acquisition, my first thought is that's a huge positive for the copper price. If BHP is acquiring assets, rather than building assets, it doesn't add to the world's copper supply. So I'm not surprised to see that the copper price is running up on the back of it. Could there be assets that come out of that, that would be -- create some deal activity for us, possibly, more actionable though and is a transaction that's already happened, and that's Newmont acquiring Newcrest. They've announced that they are asset sales that they are doing. So I think there should be some opportunities that come out of that M&A process.

謝謝你的提問。我想說，當我看到這一潛在收購時，我的第一個想法是這對銅價來說是一個巨大的利好。如果必和必拓收購資產而不是建設資產，就不會增加世界銅供應。因此，看到銅價隨之上漲，我並不感到驚訝。是否會從中產生資產，那就是——為我們創造一些交易活動，可能更具可操作性，而且是一項已經發生的交易，那就是紐蒙特收購紐克雷斯特。他們已經宣布正在進行資產出售。所以我認為併購過程應該會產生一些機會。

Thank you. There are no further questions from the webcast. This concludes our first quarter results conference call and webcast. We expect to release our second quarter 2024 results after market close on August 13, with the conference call held the following morning. Thank you for your interest in Franco-Nevada. Goodbye.

謝謝。網路廣播中沒有進一步的問題。我們的第一季業績電話會議和網路廣播到此結束。我們預計在 8 月 13 日收盤後發布 2024 年第二季業績，並於隔天早上舉行電話會議。感謝您對弗蘭科-內華達州的興趣。再見。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.

女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線。謝謝。