Franco-Nevada Corp (FNV) 2024 Q2 法說會逐字稿

Good morning, and welcome to Franco-Nevada Corporation's second-quarter 2024 results conference call and webcast. This call is being recorded on August 14, 2024. (Operator Instructions) I would now like to turn the conference over to your host, Candida Hayden, Senior Analyst Investor Relations. Please go ahead.

早安，歡迎參加 Franco-Nevada Corporation 2024 年第二季業績電話會議和網路廣播。本次電話會議於 2024 年 8 月 14 日進行錄音。請繼續。

Thank you, Laura. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's second-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.

謝謝你，勞拉。大家早安。感謝您今天加入我們討論 Franco-Nevada 2024 年第二季業績。此次電話會議還附有一份演示文稿，可在我們的網站 franco-nevada.com 上取得。您也可以在這裡找到我們完整的財務表現。

The presentation is also available to view on the webcast. 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 overview of our results and Eaun Gray, Senior Vice President Business Development, who will discuss our recent transaction.

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，Franco-Nevada 總裁兼首席執行官Paul Brink 將進行介紹性發言，隨後首席財務官Sandip Rana 將簡要介紹我們的業績，業務開發高級副總裁Eaun Gray 也將介紹我們的業績。

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

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。現在我將把電話轉給法蘭科-內華達公司總裁兼執行長保羅‧布林克 (Paul Brink)。

Thanks Candida and good morning. Our Q2 results benefit -- benefited from record gold prices. Revenues and cash flow from operations were up compared with Q1. Results were lower compared to Q2 last year without contribution from Cobre Panama and due to lower production at Candelaria and Antapaccay. Lower quarterly production of the two operating assets, a short term bump. And we expect to return to normal operations at both for the balance of the year.

謝謝念珠菌，早安。我們第二季的業績受惠於創紀錄的金價。營運收入和現金流量較第一季有所成長。與去年第二季相比，由於沒有巴拿馬 Cobre 的貢獻，且坎德拉里亞和安塔帕卡伊的產量較低，結果低於去年第二季。兩項營運資產的季度產量較低，短期內會出現上漲。我們預計這兩家公司將在今年餘下時間恢復正常營運。

Is at two of our best performing assets over the long term, we look forward to the potential underground expansion at Candelaria and in the future development of the [car quaker] project at Antapaccay. Business development team have had great success in recent months, and we're very pleased to have added two long-life assets to the portfolio.

從長遠來看，這是我們表現最好的兩項資產，我們期待著坎德拉里亞潛在的地下擴建以及安塔帕凱 [car quaker] 項目的未來開發。業務開發團隊近幾個月取得了巨大成功，我們很高興在投資組合中增加了兩項長壽命資產。

The gold stream on San Gold's Cascabel, copper gold development project in Ecuador, a royalty on [NeuMoDx, Yanacocha] operations in Peru, Euan I'll give more detail on the acquisitions later in the call. Initial contributions from Yanacocha and the growing contribution from the (inaudible) Greenstone and talk to senior gold mines that all started production in recent months will boost our results in the second half of the year. With that, I'll hand it over to Sandip.

San Gold 的 Cascabel 的黃金流、厄瓜多爾的銅金開發項目、秘魯 [NeuMoDx、Yanacocha] 業務的特許權使用費、Euan 我將在稍後的電話會議中提供有關收購的更多詳細信息。 Yanacocha 的初步貢獻以及（聽不清楚）Greenstone 的不斷增長的貢獻以及與近幾個月全部開始生產的高級金礦的對話將提高我們下半年的業績。這樣，我就把它交給桑迪普了。

Thanks, Paul. Good morning, everyone. I'll turn to slide 4 to give an overview of the financial results for the quarter. Overall GEOs sold were 110,264 for second-quarter 2024. This compares to [168,515] for the prior year quarter and 131,865 at the prior year quarter with Cobre Panama GEOs are excluded. As you are aware, Cobre Panama continues to be on preservation, safe management.

謝謝，保羅。大家早安。我將轉向投影片 4 概述本季的財務表現。 2024 年第二季 GEO 總銷量為 110,264 輛。如您所知，巴拿馬 Cobre 繼續致力於保護和安全管理。

In terms of operating assets and GEOs delivered and sold for the quarter, we did receive less ounces from Candelaria and Antapaccay compared to prior year. Yields delivered were both less than ours -- from both for less than our expectations. At Candelaria, GEO delivered and sold in Q2 2024, were lower than those sold in Q2 2023, as mining rates were impacted by the interface of the open pit and historic underground mining stopes.

就本季交付和銷售的營運資產和 GEO 而言，與去年相比，我們從 Candelaria 和 Antapaccay 收到的盎司確實有所減少。交付的產量均低於我們的產量—均低於我們的預期。在坎德拉里亞，GEO 在 2024 年第二季的交付和銷售量低於 2023 年第二季的銷售量，因為採礦率受到露天礦場和歷史悠久的地下採礦場介面的影響。

This required more stockpile ore to be processed with reduced grades and recoveries. With access to higher-grade ore anticipated in the second half of 2024, Lundin Mining anticipates stronger production, I've maintained that production guidance for Candelaria. At Antapaccay, GEOs delivered and sold were also lower in second quarter compared to prior year.

這需要加工更多的庫存礦石，同時降低品位和回收率。由於 Lundin Mining 預計將在 2024 年下半年獲得更高品位的礦石，預計產量將會增加，因此我維持了坎德拉里亞的生產指引。在 Antapaccay，第二季交付和銷售的 GEO 也低於去年同期。

Mine scheduling was adjusted in part due to attack -- geotechnical event, which temporarily limited pit access, resulting in a lower production. Franco anticipate stronger production in the second half of 2024 and Franco-Nevada expected stream deliveries for the full year to be within our initial expectations of 50,000 to 60,000 GEOs.

礦山調度的部分原因是由於岩土工程事件，暫時限制了礦坑的通行，導致產量下降。 Franco 預計 2024 年下半年產量將會增加，Franco-Nevada 預計全年的流量交付量將在我們最初預期的 50,000 至 60,000 個 GEO 之內。

[Hemlo] NPI was also weaker than expected in the second quarter of 2024. There was less mining on royalty lands along with higher costs which resulted in a lower NPI paid to Franco, continues to be difficult to estimate what the Hemlo NPI will be going forward. For the quarter, precious metal GEOs were 82,350. This compares to 95,383 in prior year when Cobre Panama GEOs are excluded.

[Hemlo] 2024 年第二季的 NPI 也弱於預期。本季貴金屬 GEO 為 82,350。相比之下，去年 Cobre 巴拿馬 GEO 被排除在外時為 95,383 個。

Precious metal GEO represented approximately 75% of total GEOs for the quarter. For diversified deals, total GEOs sold were 27,914 compared to just over 36,000 in Q2 2023. [Buying] or GEOs sold were relatively flat year over year, while energy GEOs were lower at 22,100 for Q2 compared to 28,063 a year ago.

貴金屬 GEO 約佔本季 GEO 總量的 75%。對於多元化交易，銷售的GEO 總數為27,914 份，而2023 年第二季度的銷售量略高於36,000 份。份，低於一年前的28,063 份。

Decrease in GEOs is a combination of lower revenue due to weaker natural gas prices as well as the impact of converting energy revenue to GEOs by higher gold prices. Also in Q2 2023, revenue included a catch-up royalty payment related to new wells in the Permian Basin, which was not present in Q2 (technical difficulty)

GEO 的減少是由於天然氣價格疲軟導致收入減少以及金價上漲將能源收入轉換為 GEO 的影響綜合在一起的。同樣在 2023 年第二季度，收入包括與二疊紀盆地新井相關的追趕特許權使用費，這在第二季度不存在（技術難度）

As we look at total revenue was $260.1 million for the quarter compared to $329.9 million a year ago. When you exclude Cobre Panama from prior year revenue, revenue was actually still up from $258.2 million. Q2 2024 saw continued volatility in average commodity prices. As you see on slide 5, gold and silver average prices were significantly higher for the quarter when compared to prior year.

從我們的數據來看，該季度的總收入為 2.601 億美元，而去年同期的總收入為 3.299 億美元。如果將 Cobre巴拿馬排除在上一年的收入之外，收入實際上仍高於 2.582 億美元。 2024 年第二季度，平均大宗商品價格持續波動。正如您在幻燈片 5 中看到的那樣，本季黃金和白銀的平均價格顯著高於去年同期。

However, platinum and in particular, palladium average prices were lower year over year, which did negatively impact conversion of PGM revenues to GEOs. Oil prices were higher as well, while natural gas average prices were essentially flat.

然而，鉑金，尤其是鈀金的平均價格同比下降，這對鉑族金屬收入向 GEO 的轉換產生了負面影響。石油價格也上漲，而天然氣平均價格基本上持平。

Slide 6 highlights the financial results for the quarter and year to date 2024. As mentioned, GEOs sold and revenue were lower year over year. Adjusted EBITDA was $221.9 million, while adjusted net income was $144.9 million. On a per share basis, adjusted net income was $0.75 for the quarter.

幻燈片 6 重點介紹了 2024 年該季度和全年的財務業績。調整後的 EBITDA 為 2.219 億美元，調整後的淨利潤為 1.449 億美元。以每股計算，本季調整後淨利為 0.75 美元。

On the cost side, we did have a decrease in cost of sales compared to prior year, as we did not incur in the ongoing fixed cost per ounces delivered for Cobre Panama and had lower GEOs delivered and sold from Antapaccay and Candelaria.

在成本方面，與去年相比，我們的銷售成本確實有所下降，因為我們沒有為巴拿馬 Cobre 交付每盎司的持續固定成本，並且從 Antapaccay 和 Candelaria 交付和銷售的 GEO 較低。

With respect to the arbitration costs for Cobre Panama, the company incurred costs of $800,000 in Q2 2024 and have incurred $2.3 million year to date, we expect approximately $3 million to be incurred for the rest of the year.

關於 Cobre巴拿馬的仲裁費用，該公司在 2024 年第二季產生了 80 萬美元的費用，今年迄今已產生了 230 萬美元，我們預計今年剩餘時間將產生約 300 萬美元。

Commissions decreased to $52.9 million versus $75.1 million a year ago. Again, the decrease was due to no depletion recorded for Cobre Panama as well as lower depletion recorded for Antapaccay because of the lower deliveries in the quarter.

佣金減少至 5,290 萬美元，而一年前為 7,510 萬美元。同樣，下降的原因是巴拿馬 Cobre 沒有記錄消耗量，以及 Antapaccay 由於本季度交付量較低而記錄的消耗量較低。

One additional item to note in Q2 2024 is the tax adjustment recorded in May 2024, the government of Barbados enacted legislation to implement tax measures also in response to the OECD's Pillar two global minimum tax initiative measures include an increase of the Barbados corporate tax rate to 9% and the introduction of a qualified domestic minimum top-up tax, which together aim to ensure that the Barbados effective tax rate payable subject to Pillar two, is at least 50% going forward.

2024 年第二季需要注意的另一項是2024 年5 月記錄的稅收調整，巴貝多政府頒布立法實施稅收措施，也是為了響應經合組織的兩大支柱全球最低稅收倡議措施，包括將巴貝多企業稅率提高到9% 並引入合格的國內最低補充稅，共同旨在確保巴貝多在第二支柱下的實際應付稅率至少為 50%。

What's important to note is that of the $122.8 million total tax expense recorded for the six months ended June 30, 2024, [$49.1 million] relates to an adjustment for prior years. And the actual incremental tax expense related to 2024 is about $21 million because it's changes. Going forward, we estimate that our effective tax rate will be about 19% to 20%, depending upon where taxable income is generated.

值得注意的是，截至 2024 年 6 月 30 日的六個月記錄的 1.228 億美元總稅收支出中，[4,910 萬美元]與往年的調整有關。與 2024 年相關的實際增量稅收費用約為 2,100 萬美元，因為它發生了變化。展望未來，我們估計我們的有效稅率約為 19% 至 20%，具體取決於應稅收入的產生地。

Slide 7 highlights the continued diversification of the portfolio from the charts you can see that 75% of our second-quarter 2024 revenue was generated by precious metals with revenue being sourced 82% from the Americas.

投影片 7 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 年第二季收入的 75% 由貴金屬產生，其中 82% 的收入來自美洲。

Slide 8 illustrates the strength of our business model to generate high margins. For Q2 2024, the cash cost per GEO, which is essentially cost of sales divided by gold equivalent ounces sold, was $264 per GEO. This compares to $280 per GEO in Q2 2023. This amount will fluctuate depending upon the mix of royalty versus stream GEOs, including mining and energy.

幻燈片 8 展示了我們的業務模式在產生高利潤方面的優勢。 2024 年第二季度，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 264 美元。相比之下，2023 年第二季每個 GEO 的費用為 280 美元。

But as you can see, at current average gold prices, the company generates significant margins -- margin of approximately $2,100 per ounce in Q2 (technical difficulty) Rising commodity price environment, we expect to benefit fully as the cost per GEOs sold should not increase (technical difficulty) As we turn to available capital, the company has $2.4 billion as at June 30, 2024, as highlighted on slide 9, please note that subsequent to June 30, 2024, the company has funded a number of transaction, the acquisition of a royalty on Nuevaunion Yanacocha property for $210 million, which Eaun will speak to shortly, $23.3 million advance to SolGold’s as part of the $525 million stream commitment agreed to in July.

但正如您所看到的，按照當前的平均黃金價格，該公司產生了可觀的利潤——第二季度的利潤約為每盎司2,100 美元（技術難度）。受益，因為每個GEO 的銷售成本不會增加（技術難度）當我們轉向可用資本時，截至2024 年6 月30 日，該公司擁有24 億美元，如幻燈片9 所示，請注意，2024 年6 月30 日之後，該公司資助了多項交易、收購Eaun 很快就會與Nuevaunion Yanacocha 財產支付2.1 億美元的特許權使用費，其中2,330 萬美元預付給SolGold，作為7 月商定的5.25 億美元流承諾的一部分。

Purchase of shares in G mining ventures as part of the Reunion Gold business combination for $25 million and the funding of a five year $35 million to EMX royalty. Even after funding of the above the company still has a strong balance sheet to complete additional transaction. Also during the quarter, the company amended its $1 billion unsecured revolving term credit facility to extend its term to June 3, 2029.

作為 Reunion Gold 業務合併的一部分，以 2500 萬美元購買 G 礦業企業的股份，並為 EMX 特許權使用費提供五年 3500 萬美元的資金。即使在獲得上述資金後，該公司仍然擁有強大的資產負債表來完成額外交易。同樣在本季度，該公司修改了其 10 億美元無擔保循環定期信貸安排，將其期限延長至 2029 年 6 月 3 日。

Finally, with respect to the GEOs SolGold guidance for 2024, [480,000] to 540,000 total GEOs sold and 360,000 to 400,000 precious metal GEOs sold. We reiterate those guidance ranges, which we expect, but expect to be at the lower end of both ranges. You anticipate stronger deliveries from Candelaria in the second half of the year and continued contributions from (inaudible) , Greenstone and Solaris Norte.

最後，根據 SolGold 2024 年 GEO 指導，售出 [480,000] 至 540,000 個 GEO 總量，售出 360,000 至 400,000 個貴金屬 GEO。我們重申這些指導範圍，這是我們所期望的，但預計將處於兩個範圍的下限。您預計下半年 Candelaria 的交付量將會增加，並且（聽不清楚）、Greenstone 和 Solaris Norte 的持續貢獻。

And with that, I will now pass it over to Eaun, who will speak to the recent business development transactions completed.

現在，我將把它交給 Eaun，他將談論最近完成的業務開發交易。

Thank you, Sandip. And good morning. As Paul mentioned, we were happy to announce gold stream financing on SolGold’s on (inaudible) project in July. We view this as a world-class copper-gold porphyry. Stream is tailored to solve those needs, allowing from derisking with initial preconstruction tranches and funding construction once key stage gates are met and funding is secured.

謝謝你，桑迪普。早安.正如 Paul 所提到的，我們很高興在 7 月宣布對 SolGold 專案（聽不清楚）進行黃金流量融資。我們認為這是世界級的銅金斑岩。 Stream 是為解決這些需求而量身定制的，一旦滿足關鍵階段的要求並獲得資金，就可以透過最初的施工前部分來降低風險，並為施工提供資金。

Transaction was syndicated 70/30 with a Cisco Gold Royalties and we believe represents a prudent capital allocation and risk-adjusted return. The Apollo stands out amongst copper gold's projects globally based on its size and grade summarize the recent pre-feasibility study, which demonstrates a robust project and look forward to management steps to advance and derisk the project.

該交易以 70/30 的比例與思科黃金特許權費進行聯合，我們相信這代表了審慎的資本配置和風險調整後的回報。 Apollo 因其規模和品味而在全球銅金項目中脫穎而出，總結了最近的預可行性研究，該研究表明了一個穩健的項目，並期待採取管理措施來推進該項目並降低其風險。

Our team sees great upside Apollo and on the broader cast of our concession, which the stream covers. Projects like (inaudible) increase the value of the stream in our view. Our experience is that these types of deposits also tend to cluster, and we see great potential in the drillbit over time on the property. The transaction includes a number of risk mitigants to determine when funding takes place and various protections for streamers, should there be delays or rescoping of the project.

我們的團隊看到了阿波羅的巨大優勢以及我們的特許權範圍（流所涵蓋的範圍）。在我們看來，像（聽不清楚）這樣的項目增加了直播的價值。我們的經驗是，這些類型的礦床也傾向於聚集，隨著時間的推移，我們看到了鑽頭在該礦區的巨大潛力。該交易包括一些風險緩解措施，以確定何時進行融資，以及在專案出現延誤或重新確定範圍時對主播的各種保護。

An acquirer would benefit also from the ability to reduce the stream, but to do so would have to provide for payment to both Franco-Nevada and Cisco. We, along with the Cisco look forward to the steps management is taking to advance project completed Cascabel will be a meaningful contributor to Franco-Nevada for years to come.

收購方也將受益於減少流量的能力，但要做到這一點，就必須向弗蘭科-內華達公司和思科公司提供付款。我們與思科一起期待管理層正在採取措施推進專案完成，Cascabel 將在未來幾年為弗蘭科-內華達州做出有意義的貢獻。

I'd also point investors to SolGold's recent update release this morning providing information on their steps to add value to the project. Moving to the Yanacocha royalty acquisition from Buenaventura, which was announced yesterday. We're happy to add this asset to the portfolio.

我還建議投資者關注 SolGold 今天早上發布的最新更新，其中提供了有關他們為項目增值的步驟的資訊。轉向昨天宣布的從布埃納文圖拉收購亞納科查特許權使用費的情況。我們很高興將此資產添加到投資組合中。

Royalty will contribute immediately given significant oxide production, and we expect would step up significantly for the sulfides project. We are very positive on the sulfides and see great potential from the existing footprint to extend the life for many years beyond what is currently envisaged. The royalty also covers the Conga and Gilles projects, providing excellent upside.

鑑於氧化物產量顯著，特許權使用費將立即貢獻，我們預計硫化物專案將大幅增加。我們對硫化物非常樂觀，並從現有足跡中看到了巨大的潛力，可以將使用壽命延長很多年，超越目前的設想。特許權使用費還涵蓋 Conga 和 Gilles 項目，提供了巨大的上升空間。

We're able to visit the site as part of our review and have good institutional knowledge of the asset dating back to Newmont and maintain an excellent relationship with Buenaventura, providing comfort in the long-term potential. We view this as another world-class geological setting, as evidenced by past production and extensive resource. We see great potential to contribute significant production for decades to come that further potential and the (inaudible) that we maintain on the additional royalties.

作為審查的一部分，我們能夠訪問該網站，並對可追溯到紐蒙特的資產擁有良好的機構知識，並與布埃納文圖拉保持良好的關係，為長期潛力提供了安慰。我們將其視為另一個世界級的地質環境，過去的生產和豐富的資源證明了這一點。我們看到了在未來幾十年內貢獻大量產量的巨大潛力，以及我們維持的額外特許權使用費（聽不清楚）的進一步潛力。

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

這樣，如果有任何問題，我會將其交還給操作員和念珠菌。

(Operator Instructions) Josh Wolfson, RBC Capital Markets.

（操作說明）Josh Wolfson，RBC 資本市場。

Yeah, thanks very much. First question on the Yanacocha transaction. The returns that we calculate would be comparable to some of the, I guess, mega type of returns we saw maybe 2015, 2016, which I would note ultimately worked out fairly well for the company. If we're looking at these deals today like Yanacocha and maybe others that could be on the horizon.

是的，非常感謝。關於亞納科查交易的第一個問題。我們計算的回報率將與我們在 2015 年、2016 年看到的一些巨額回報相當，我想這最終對公司來說效果相當好。如果我們今天關注這些交易，例如亞納科查（Yanacocha）以及其他可能即將出現的交易。

What's the sort of appeal here? And I would note from our perspective like the main bulk of the economics are not really happy. The project hasn't really been developed versus some of the historical low return deals, we're large producing known assets just a bit more insight on what the company sees versus what we know in the market today?

這裡有什麼吸引力？我想從我們的角度來看，大部分經濟體並不真正高興。與一些歷史上的低迴報交易相比，該項目尚未真正開發出來，我們正在大量生產已知資產，只是對公司所看到的內容與我們當今市場上所了解的內容有更多的了解？

Thanks, Josh. Eaun speaking, we see great potential in the asset. It's been a huge producer over the years brownfield site with a very large resource and (inaudible) We do get the benefit of existing oxide production and expect the short term rule should be a decision on the sulfides, we were able to do an on-site diligence as part of the transaction, which provided additional comfort, especially in the sulfides.

謝謝，喬許。尤恩表示，我們看到了該資產的巨大潛力。多年來，它一直是一個巨大的生產商，擁有非常大量的資源，而且（聽不清楚）我們確實從現有的氧化物生產中受益，並預計短期規則應該是關於硫化物的決定，我們能夠做一個關於-現場調查作為交易的一部分，這提供了額外的安慰，特別是在硫化物方面。

We see that as a great project that Newmont, which we expect will advance. I think they've put off that decision until 2025. But then on top of that, you have fantastic projects on the site, which really incentivized maintaining production in our view, you have the Conga project, which not that long ago was advancing in the fullness of time.

我們認為這是紐蒙特公司的一個偉大項目，我們預計它將推進。我認為他們已經將這個決定推遲到2025 年。推進中時間的充實。

There is potential there and the Quilish projects both very, very large. And so you have the benefit both of immediate cash flow and fantastic optionality longer term. So that is why we find it attractive. And it's a great partner at Newmont's, as I'm sure, has a great track record of both advancing projects and operating successfully. So we're happy to be involved there.

那裡有潛力，而且奎利甚的計畫都非常非常大。因此，您既可以享受即時現金流，又可以享受長期的絕佳選擇。這就是為什麼我們覺得它很有吸引力。我確信，它是紐蒙特公司的一個出色的合作夥伴，在推進專案和成功營運方面都擁有良好的記錄。所以我們很高興能參與其中。

Great. And then just in terms of the opportunity for maybe more of this style transaction that skews towards the optionality’s, are these the type opportunities you're seeing out there or there's been a focus, at least from commentary from other companies about project financing type of deals.

偉大的。然後就可能更多這種偏向選擇性的交易的機會而言，這些是您在外面看到的類型機會還是已經成為焦點，至少從其他公司對項目的評論來看是這樣的交易的融資類型。

We see both in short, I think there is certainly opportunity for a project financing type transactions operating assets. There's a pretty rich deal environment at the moment. So, we'll continue to advance all fronts.

簡而言之，我們認為，專案融資型交易營運資產肯定有機會。目前的交易環境相當豐富。因此，我們將繼續推進各條戰線。

Thank you. And one last question, just on one of the deals that was done early this year on the energy side of things for Haynesville. I'm not sure if this is an anomaly for the quarter, but your Haynesville production or revenues hasn't really improved that much and there was a large investment made in the first quarter. When should we start to see the increased royalty revenues from this asset?

謝謝。最後一個問題，是關於今年年初在海恩斯維爾能源方面達成的一項交易。我不確定這是否是本季度的異常情況，但海恩斯維爾的生產或收入並沒有真正改善那麼多，而且第一季進行了大量投資。我們什麼時候應該開始看到該資產的特許權使用費收入增加？

Hi, Josh. This is Jason speaking. You're right, we did add incrementally to install at the end of last year and despite that revenues were sort of flat. A lot of that is timing and commodity price. So gas prices, which you probably know, have fallen off fairly dramatically in the period we're speaking about that impacts the royalty, both in terms of straight royalty economics that also impacts the way the operators are managing their production.

嗨，喬許。這是傑森在講話。你是對的，我們確實在去年年底逐步增加了安裝量，儘管收入持平。其中很大一部分是時間和商品價格。因此，您可能知道，在我們談論的時期內，天然氣價格大幅下跌，這影響了特許權使用費，無論是在直接特許權使用費經濟方面，還是影響營運商管理生產的方式。

So low gas prices in the Haynesville have resulted in softer drilling rates and at times operators dialing back their production levels to trying to rebalance the market. So there's a bit of a -- there's a large commodity price, I guess, impact there in two ways. We're also onboarding, right, continuing to onboard the assets that we acquired at the end of last year. That takes some time for all of the ownership interest to transfer over.

海恩斯維爾的天然氣價格如此之低，導致鑽井速度下降，營運商有時會降低生產水平，試圖重新平衡市場。所以我想，大宗商品價格會以兩種方式產生影響。我們也在入職，對吧，繼續入職我們在去年年底收購的資產。所有所有權權益的轉讓需要一些時間。

So I think as you see commodity prices rebound here in the coming quarters. I think you'll see volumes and revenues normalize a bit.

所以我認為，正如你所看到的，大宗商品價格在未來幾季將會反彈。我認為你會看到銷量和收入稍微正常化。

Those are my questions. Thank you.

這些都是我的問題。謝謝。

Thank you. Lawson Winder, Bank of America.

謝謝。勞森·溫德，美國銀行。

Yeah. Thanks, operator, and good morning, Franco team. Thanks for taking the question here. I wanted to ask first of all about the (inaudible) Yanacocha, congratulations on getting another big deal done. What was the assumption in terms of the startup of the sulfides when you got to an IRR that you are comfortable is for this?

是的。謝謝，操作員，早安，Franco 團隊。感謝您在這裡提出問題。我想先詢問（聽不清楚）Yanacocha 的情況，恭喜您又完成了一筆大交易。當您獲得令您滿意的 IRR 時，硫化物啟動方面的假設是什麼？

Thanks Lawson. Eaun again here. In terms of the sulfides, I think, what Newmont has said is 2025 that's possible that Bill will adjust it's worth noting that the oxides are currently in production. And I think that our due diligence would indicate there's potential there to continue to do leaching, there is delay, but I think we are expecting something around the 2029 time line production.

謝謝勞森。尤恩又來了。就硫化物而言，我認為紐蒙特所說的是 2025 年，比爾可能會進行調整，值得注意的是，氧化物目前正在生產中。我認為我們的盡職調查表明有可能繼續進行浸出，雖然有延遲，但我認為我們預計在 2029 年的時間表生產左右會出現一些情況。

Okay, great. Very helpful. And then, just thinking about the deal pipeline and the relative middle mix I mean, that's improved population (inaudible) used the word improve, but that's swung back in the favor of gold and silver in the precious metals quite significantly in Q2 versus Q1, where it dipped to quite a low level as you're now back to 70% of revenue from gold and silver.

好的，太好了。非常有幫助。然後，只要考慮交易管道和相對中間的組合，我的意思是，人口的改善（聽不清楚）使用了「改善」這個詞，但與第一季度相比，第二季度的貴金屬中的黃金和白銀的情況明顯回升，它下降到相當低的水平，因為現在 70% 的收入來自黃金和白銀。

In that context, how do you think about adding new streams in terms of metal mix is gold and silver still a continued priority here or does the rebound in gold and silver prices and the move to the metal mix as a result, perhaps shift your focus now going forward, more to non-precious deals?

在這種情況下，您如何看待在金屬組合方面添加新的流，黃金和白銀仍然是這裡的持續優先事項，或者黃金和白銀價格的反彈以及因此轉向金屬組合是否可能會轉移您的注意力現在，更多的是非貴重交易？

Lawson, it's Paul. Thanks for question. Focus, as always is precious metals and it stops as always, with asset quality. Anytime we're looking at stuff it's what are the great assets that is the biggest driver and what generates the best returns over time, then we get onto commodity mix. But so first is do we like the asset? And second, can we get it done within the guidelines of what we do with the commodity mix?

勞森，是保羅。謝謝提問。一如既往地關注貴金屬，並一如既往地關注資產品質。每當我們專注於事物時，我們都會專注於什麼是最大的驅動因素，以及隨著時間的推移產生最佳回報的資產，然後我們就開始考慮商品組合。但首先是我們喜歡這項資產嗎？其次，我們能否在商品組合的指導方針範圍內完成這項工作？

So as always, gold and precious metal is number one on the list in terms of what we'd like to do, but always open-minded. If they're great assets in other commodities, we think we'll get long-term returns happy to add those two.

因此，與往常一樣，就我們想做的事情而言，黃金和貴金屬位居榜首，但始終持開放態度。如果它們是其他大宗商品的重要資產，我們認為將這兩者相加將獲得長期回報。

Okay. That's great context. Thanks very much, Paul. Thank you.

好的。這是很好的背景。非常感謝，保羅。謝謝。

Thank you. Tanya Jakusconek, Scotiabank.

謝謝。 Tanya Jakusconek，豐業銀行。

Hi, good morning. Thank you so much for taking my questions. I'm just going to start off on just some of the guidance, and Thanks, Sandip, is that Hemlo is always difficult to forecast but just as we look at the second half of the year and we do have, the Candelaria, I think was one that you had mentioned and (inaudible) Salares Norte, those ones ramping up Amicas. Thanks. Like it's a second is second-half weighted, but is it more weighted to Q4 or is it more of an even distribution plus I have the valet top-up in Q3. I'm just trying to understand Q3 versus Q4?

嗨，早安。非常感謝您回答我的問題。我只想從一些指導開始，謝謝桑迪普，赫姆洛總是很難預測，但正如我們看到下半年一樣，我們確實有坎德拉里亞，我認為是你提到的一個和（聽不見清）Salares Norte，那些正在加強Amicas 的人。謝謝。就像第二個是下半場加權一樣，但它對第四季度的權重更大，還是更均勻的分佈加上我在第三季度有代客充值。我只是想了解 Q3 與 Q4？

Sure as of right now, sort of the visibility that we have I would say it's probably going to be pretty even between the two may be in Q4, it might get a little bit higher, as you know, Greenstone and Solaris, no changes at ramp up, but I don't expect too much of a difference. Obviously, part of it is all dependent on commodity prices with respect to the MPI's, but for simplicity, I would say that they should be pretty close.

當然，截至目前，我們所擁有的可見度，我想說，在第四季度，兩者之間可能會相當平衡，可能會更高一點，如你所知，Greenstone 和 Solaris，沒有任何變化增加，但我預計不會有太大差異。顯然，其中一部分完全取決於相對於 MPI 的大宗商品價格，但為了簡單起見，我想說它們應該非常接近。

Okay. That's helpful. Thank you for that. And then if I can move on to just some the transactions and just the environment itself and Eaun for you, thank you for your forecast of 2029 for the start-up of the sulfides. We modeled it into the next decade ourselves, but when you look at the internal rate of return and again, making that decision, whatever gold price you want to use for both of your transactions that you recently did what are you getting? Are you getting the middle single digit internal rate of return? Just a benchmark for us to see on that the same with cap about like when did you figure start-up on that asset as well?

好的。這很有幫助。謝謝你。然後，如果我可以繼續談論一些交易、環境本身以及 Eaun，謝謝您對 2029 年硫化物啟動的預測。我們自己將其建模為下一個十年，但是當您查看內部收益率並再次做出決定時，無論您想在最近進行的兩筆交易中使用什麼金價，您會得到什麼？您的內部報酬率是否達到中間個位數？這只是我們看到的一個基準，與上限相同，例如您什麼時候開始考慮該資產的啟動？

Thank you for the question because there's a lot there to unpack. I would say first of all, it's a risk-adjusted returns when we think about optionality. It is important that in the investments we want to see that there's a lot there that can go right now over time and we can earn an outsized return, even if it does take time, it might not show up in an IRR, but certainly enhances the profile of the company brining gold for years to come.

謝謝你提出這個問題，因為還有很多東西要解開。首先，我想說，當我們考慮選擇性時，這是風險調整後的報酬。重要的是，在投資中，我們希望看到隨著時間的推移，現在有很多東西可以去，我們可以獲得超額回報，即使這確實需要時間，它可能不會出現在 IRR 中，但肯定會增強公司的形象將在未來幾年帶來黃金。

So with Yanacocha, yes, I would say an it's a pretty reasonable return we see with the oxides and sulfides. And beyond that, you have fantastic projects which stands providing many multiples on your investments as those move forward now. Conga, Gilles could take a lot of time, I think if they get developed, but certainly that skew towards outsized cash flows from the investment was attractive to us. So maybe that provides a bit of context now --

因此，對於亞納科查，是的，我想說，我們在氧化物和硫化物方面看到的回報相當合理。除此之外，您還有出色的項目，隨著這些項目的進展，這些項目將為您的投資帶來數倍的回報。我認為康加、吉爾斯可能需要很多時間，如果它們被開發，但投資帶來的巨額現金流的偏差對我們來說很有吸引力。所以也許現在提供了一些背景資訊——

On a reasonable for you, single mid-single digit, middle single digit, like 5%. I don't know what reasonable is for you?

對你來說合理的，一個中個位數，中間個位數，例如 5%。不知道你覺得什麼才是合理的？

Yeah, for an asset that has a great degree of optionality for that would be at least it will return again, all just all things equal it's risk-adjusted economically. And in other cases like SolGold, the return was meaningfully higher. And it just represents again, I mentioned our risk-adjusted rate of return.

是的，對於具有很大程度選擇性的資產來說，至少它會再次回歸，所有條件都相同，它在經濟上經過了風險調整。在 SolGold 等其他情況下，回報率明顯更高。它再次代表了我提到的我們的風險調整回報率。

Okay. And then for SolGold, when did you assume start-up of that one? And when you say significantly higher, are you implying double digit?

好的。那麼對於 SolGold，您認為該專案何時啟動？當你說明顯更高時，你是在暗示兩位數嗎？

Yeah, in terms of I don't want to get too much into deal specifics. I don't think it's appropriate. But roughly, we look at scenarios for startup there in the early 2030s and rate of return certainly above the mid-single digits. But beyond that, I don't I don't think it's appropriate to comment.

是的，就我不想過多討論交易細節而言。我認為這不合適。但粗略地看，我們觀察了 2030 年代初期的創業情景，回報率肯定高於中個位數。但除此之外，我認為不適合發表評論。

Okay. No, thank you for that color. And maybe just turning to the M&A environment. just I wanted to know on the last conference call we talked about is saying bigger size deal plus $500 million. I guess the Capital One was over $500 million. What sort of opportunity size are we still looking at now? Is it still over that $500 million? Are we back to that $100 million to $300 million on the gold side? That's my first question on the transaction side.

好的。不，謝謝你的顏色。也許只是轉向併購環境。我只是想知道在上次電話會議上我們談論的是更大規模的交易加上 5 億美元。我猜第一資本的價值超過 5 億美元。我們現在仍在關注什麼樣的機會規模？還超過那5億美元嗎？黃金方面我們會回到 1 億到 3 億美元的水平嗎？這是我關於交易方面的第一個問題。

Thank you for the question. Good question. I would say to expect more of the same in terms of what you've seen recently for deal size and $100 million to $300 million is a pretty good kind of average size within the pipeline. The overall comments, I think, is that it remains extremely busy. So there's lots to look at, which is great and plenty on the precious metal side. So the team remains very focused. Thank you.

謝謝你的提問。好問題。我想說的是，就您最近看到的交易規模而言，預計會有更多相同的情況，1 億至 3 億美元是管道中相當不錯的平均規模。我認為總體評論是它仍然非常繁忙。因此，有很多東西值得關注，這在貴金屬方面非常好而且很多。所以團隊仍然非常專注。謝謝。

Okay, thanks. And then in terms of royalties, main (inaudible) had been talking about this selling of this royalty on Yanacocha's since last year. So congrats on finally getting this done. Are you seeing other opportunities on the royalty side and in the environment separate from stream?

好的，謝謝。然後在特許權使用費方面，主要（聽不清楚）自去年以來一直在談論在 Yanacocha 上出售該特許權使用費。恭喜你終於完成這件事了。您是否在版稅方面以及與串流媒體分離的環境中看到了其他機會？

Certainly, we like royalties or the breadth of the portfolio (inaudible)

當然，我們喜歡版稅或投資組合的廣度（聽不清楚）

Okay. And then maybe just for Paul. I think the last conference call we talked about transaction and nonmedical space, and we expect business specifically and talked about lithium in the $50 million to $400 million range and, just looking at opportunities in the part of the market where commodities are not as strong as we see in the gold market. So I'm just wondering what your thoughts have they change, though of the opportunities for lithium still there? And is that something you still want to pursue?

好的。然後也許只是為了保羅。我認為上次電話會議我們討論了交易和非醫療領域，我們特別期望業務，並討論了 5000 萬至 4 億美元範圍內的鋰，並且只是尋找大宗商品不如美國那樣強勁的市場部分的機會。在黃金市場上看到。所以我只是想知道你的想法有什麼改變，儘管鋰的機會仍然存在？這是你仍然想要追求的嗎？

We're still busy on that front. As Eaun mentioned, for most of our asset on the precious metal side, but we are looking at some diversified. Some of that is lithium some in other commodities. So I think there's still good potential to get some deals done in those areas.

我們仍在這方面忙碌。正如 Eaun 所提到的，我們的大部分資產都在貴金屬方面，但我們正在考慮一些多元化的資產。其中一些是鋰，一些是其他商品。因此，我認為在這些領域仍然有很大的潛力完成一些交易。

And that $50 million to $400 million range or so the range that would fit into?

5000 萬到 4 億美元左右的範圍適合嗎？

Yes, that's a good range.

是的，這是一個很好的範圍。

Okay. Looks like you're very busy. Congratulations on both of those deals.

好的。看來你很忙。祝賀這兩筆交易。

Thank you, Tanya.

謝謝你，塔妮亞。

Thank you. Martin Pradier, Veritas Investment Research.

謝謝。馬丁‧普拉迪爾 (Martin Pradier)，Veritas 投資研究部。

Thank you. It looks like you need the sulfide project to go ahead to make your money back in Yanacocha. Is that a correct assumption?

謝謝。看來你需要繼續推進硫化物計畫才能在亞納科查賺回錢。這是一個正確的假設嗎？

That is correct in speaking here.

這裡說的沒錯。

Okay. And did I hear that there was a $49 million that adjustment from previous year. Is that correct? Or is just previous quarter?

好的。我聽說與去年相比調整了 4900 萬美元嗎？這是正確的嗎？還是只是上個季度？

Yes. So because Barbados increased its tax rate for the 9% corporate tax rate. Our deferred tax liability on our balance sheet was set up at the old rate. So we had to adjust that and that was $49.1 million one-time adjustment.

是的。因為巴貝多提高了稅率為9%的企業稅率。我們資產負債表上的遞延所得稅負債是依照舊稅率設定的。所以我們必須對此進行調整，一次性調整金額為 4,910 萬美元。

Okay, perfect. Thank you. That's all. Thank you very much.

好的，完美。謝謝。就這樣。非常感謝。

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

謝謝。電話線上沒有進一步的問題。我現在將問答環節交給 Candida Hayden，她將回答網路廣播中的問題。

Thank you Laura. Our first question comes from Bernie Fiji from Palisade Capital. Given the recent social and political turmoil in Ecuador. I'm a bit surprised by your commitment to the capital project, especially after kind of my experience, what extent have you balanced your attention to the project geology versus your view of the political environment there?

謝謝勞拉。我們的第一個問題來自 Palisade Capital 的 Bernie Fiji。鑑於厄瓜多爾最近的社會和政治動盪。我對您對基本建設項目的承諾感到有點驚訝，特別是根據我的經驗，您在多大程度上平衡了您對項目地質的關注與對那裡政治環境的看法？

Thanks for the question. (inaudible) transaction was very carefully structured to take advantage of the geology, but also mitigate the risks. First point in terms of the funding structure, it's broken down in tranches based on stage gates. And this allows certain items to be dealt with before additional capital is funded.

謝謝你的提問。 （聽不清楚）交易的結構非常仔細，以利用地質優勢，同時也降低風險。第一點就融資結構而言，它根據階段門檻分為幾個部分。這允許在提供額外資金之前處理某些項目。

And then when it comes to the final construction funding that is contingent on the rest of the funding being secured and a robust investment agreement being signed with government of Ecuador with criteria included has conditioned funding as we take a lot of comfort from that.

然後，當談到最終的建設資金時，這取決於其餘資金的獲得，以及與厄瓜多爾政府簽署的一項強有力的投資協議，其中包括的標準已經成為條件資金，因為我們從中得到了很大的安慰。

But I would probably say bigger picture, Ecuador, if that's a very fair split of physical flows versus other countries. So we draw comfort from that as well. Our minds like for still more to the government drives 50% and the economic benefit of the projects.

但我可能會說，厄瓜多爾，如果這與其他國家的實體流量分配非常公平的話，我可能會說更大的前景。所以我們也從中得到安慰。我們更希望政府帶動50%以及專案的經濟效益。

So that provides what I believe is a good backdrop towards stability going forward, social acceptability of mining projects. The government is also quite supportive of the project, which gave us a lot of comfort as part of our diligence, we met with number of government officials (inaudible) and so on from partners, Cisco and also out of Canadian and US Embassy staff.

因此，我認為這為採礦項目的未來穩定性和社會可接受性提供了良好的背景。政府也非常支持這個項目，這給了我們很大的安慰，作為我們勤勉工作的一部分，我們會見了合作夥伴、思科以及加拿大和美國大使館工作人員的許多政府官員（聽不清楚）等。

Next question is also from Bernie Fiji from Palisade Capital, an update on Panama, especially given the new government?

下一個問題也是來自 Palisade Capital 的 Bernie Fiji，巴拿馬的最新情況，特別是考慮到新政府？

So Bernie, it's Paul. The since the Millennia Molino administration has come in, I think early indications have been positive, they've indicated a willingness to look at a reopening of mine enter into negotiations. That is with some conditions, I'd say most positive steps. The taking of the first item is that they want to do a comprehensive environmental review. And so they're putting together a panel of experts so they can do that.

伯尼，是保羅。自從千禧年莫利諾政府上台以來，我認為早期跡像是正面的，他們表示願意考慮重新開放礦場進入談判。在某些條件下，我想說的是最積極的步驟。第一項的採取是他們要做一個全面的環境審查。因此，他們正在組建一個專家小組，以便他們可以做到這一點。

I'm very hopeful that will help demonstrate that the company that the asset has been very well operated and that some of the misgivings that had been promoted in the population that there was environmental damage will be dispelled. So I think taking very positive steps to set the table, so that they can one have a discussion with the company and two position this project better with Republic in Panama.

我非常希望這將有助於向公司表明該資產運作良好，並且人們中一直宣揚的對環境破壞的一些疑慮將得到消除。因此，我認為要採取非常積極的步驟來製定方案，以便他們一方面可以與公司進行討論，另一方面可以與巴拿馬共和國更好地定位該項目。

The last question comes from [Bjorn with Lander] Current cash portfolio is USD1.4 billion. Is there deals out there such as royalty or stream that are coming that can match this cap -- cash position? Or are there other opportunities that this cash position can be used for? And if so, what could that be?

最後一個問題來自 [Bjorn with Lander] 目前的現金投資組合為 14 億美元。是否有即將到來的特許權使用費或串流媒體等交易可以與此上限（現金頭寸）相匹配？或者這個現金部位還有其他用途嗎？如果是這樣，那會是什麼？

Thanks for the questions. Eaun speaking. As I mentioned, we see a very robust pipeline at the moment is good potential to deploy that capital, what we have in the pipeline going forward. I think you will see us continue to transact on a number of opportunities. So I don't see it as a surprise. It's quite beneficial for us in terms of bidding competitively.

感謝您的提問。尤恩發言。正如我所提到的，我們認為目前有一個非常強大的管道，有很好的潛力來部署我們未來管道中的資金。我想您會看到我們繼續在許多機會上進行交易。所以我並不感到驚訝。這對我們競標來說是非常有利的。

Thank you, Eaun. There are no further questions from the webcast. This concludes our second quarter results conference call and webcast. We expect to release our third-quarter 2024 results after market close on November 8 with the conference call held the following morning. Thank you for your interest in Franco-Nevada. Good bye.

謝謝你，尤恩。網路廣播中沒有進一步的問題。我們的第二季業績電話會議和網路廣播到此結束。我們預計在 11 月 8 日收盤後發布 2024 年第三季業績，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 your conference call for today. We thank you for participating. And ask could you please disconnect your line.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與。並詢問您能否斷開您的線路。