Franco-Nevada Corp (FNV) 2024 Q3 法說會逐字稿

Good morning, and welcome to Franco-Nevada Corporation's third quarter 2024 results conference call and webcast. This call is being recorded on November 7, 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 年第三季業績電話會議和網路廣播。此通話錄音於 2024 年 11 月 7 日進行。（操作員指示）我現在想將會議轉交給東道主投資者關係高級分析師坎迪達·海登 (Candida Hayden)。請繼續。

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

謝謝你，克洛伊。大家早安。感謝您今天加入我們討論 Franco-Nevada 2024 年第三季的業績。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。

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'd 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-內華達公司總裁兼執行長保羅·布林克 (Paul Brink) 將發表介紹性演講；接下來是財務長 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訊息，我們建議您參閱本簡報第二張投影片上的詳細警告說明。

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

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. Our inflation-protected business model is working well. Record gold prices, we generated higher revenues, EBITDA and earnings in Q3 compared to Q2 this year. The sales were stable compared to Q2, although lower compared to Q3, 2023, without the contribution from Cobre Panama.

謝謝你，念珠菌，早安。我們的通膨保護商業模式運作良好。金價創歷史新高，與今年第二季相比，我們第三季的營收、息稅折舊攤提前利潤 (EBITDA) 和收益更高。與第二季相比，銷售額保持穩定，但與 2023 年第三季相比有所下降，沒有 Cobre巴拿馬的貢獻。

The quarter benefited from deliveries from the newly commissioned Tocantinzinho mine in Brazil, and increased contributions from royalties on the recently completed Greenstone mine and the newly acquired Yanacocha royalty. Candelaria reported an increase in copper and gold production for the quarter, with operations recovering after encountering underground voids in the open pit during Q2. Candelaria's copper output is now ahead of its initial expectations.

該季度受益於巴西新投產的 Tocantinzinho 礦場的交付，以及最近竣工的 Greenstone 礦和新收購的 Yanacocha 礦的特許權使用費貢獻的增加。坎德拉里亞報告稱，本季銅和金產量增加，第二季露天礦坑出現地下空洞後，營運已恢復。坎德拉里亞的銅產量目前超出了最初的預期。

Gold grades have been below expectation in the period, and Lundin Mining has revised its 2024 gold production guidance for Candelaria at lower. In addition, using record gold prices, revenue from our diversified assets translates into lower GEOs. We've adjusted our 2024 GEO guidance as a result. Our full year revenue, however, is expected to be higher than when we provided our original guidance in March 2024.

在此期間，黃金品位一直低於預期，倫丁礦業 (Lundin Mining) 已下調坎德拉里亞 2024 年黃金產量指引。此外，利用創紀錄的金價，我們多元化資產的收入轉化為較低的 GEO。因此，我們調整了 2024 年 GEO 指導。然而，我們的全年收入預計將高於我們在 2024 年 3 月提供最初指導時的收入。

Our 2024 revenue is expected to be between $1 billion and $1.1 billion. Cobre Panama remains in preservation and safe management. President Molino took office in July this year and has indicated a willingness to discuss the reopening of the mine with the likely timing of discussions early in 2025. This administration is arranging for an audit of the mine by international experts. I think this is a good practical step to dispel some of the misconceptions about the mine that were touted during last year's protest.

我們 2024 年的營收預計在 10 億美元至 11 億美元之間。巴拿馬銅礦仍在保存和安全管理中。莫利諾總統於今年 7 月上任，並表示願意討論重新開放該礦的問題，討論時間可能為 2025 年初。本屆政府正在安排國際專家對該礦場進行審計。我認為這是一個很好的實際步驟，可以消除去年抗議期間吹捧的一些對該礦的誤解。

For the new school year starting in the quarter, we were proud to grant diversity scholarships to four new mining engineering students. We now have a total of 13 students that we're supporting through their mining engineering studies. Business development team has been very busy. We have a strong deal pipeline and are confident we can add attractive precious metal assets to the portfolio in the coming months. There's also good potential to add incremental diversified assets.

在本季度開始的新學年中，我們很自豪能夠向四名採礦工程專業的新學生提供多元化獎學金。現在，我們為 13 名學生的採礦工程學習提供支援。業務開發團隊一直都非常忙碌。我們擁有強大的交易管道，並有信心在未來幾個月內將有吸引力的貴金屬資產添加到投資組合中。增加增量多元化資產也有很大潛力。

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. I will turn to Slide 4 to give an overview of the financial results for the quarter. Overall GEOs sold were 110,110 for Q3 2024. This compares to 160,848 for the prior year quarter and 125,882 for the prior year quarter when Cobre Panama GEOs are excluded. As you are aware, Cobre Panama continues to be in preservation and safe management.

謝謝你，保羅。大家早安。我將轉向投影片 4 概述本季的財務表現。2024 年第三季 GEO 總銷量為 110,110 輛。相比之下，去年同期為 160,848 人，排除 Cobre 巴拿馬 GEO 後，去年同期為 125,882 人。如您所知，巴拿馬銅礦繼續受到保護和安全管理。

In terms of operating assets and GEOs delivered and sold for the quarter, the main drivers of lower GEOs were Candelaria and Antapaccay. Candelaria GEOs delivered and sold in Q3 2024 were lower than those sold in prior year. In the first half of this year, mining rates were impacted by the interface of the open pit and historic underground mining stopes, requiring more stockpiled ore to be processed, which reduced grades and recoveries. While production in third quarter increased significantly due to accessing higher grade ore and improved run time of the SAG mill, GEO deliveries were still lower than prior year. However, this was partially due to timing of shipments as delivery of gold and silver was carried over into fourth quarter.

就本季交付和銷售的營運資產和 GEO 而言，GEO 下降的主要推動因素是坎德拉里亞 (Candelaria) 和安塔帕凱 (Antapaccay)。2024 年第三季交付和銷售的 Candelaria GEO 低於上一年的銷售量。今年上半年，採礦率受到露天礦場和歷史地下採礦場交界處的影響，需要加工更多庫存礦石，降低了品位和回收率。儘管由於獲得了更高品位的礦石和改善了半自磨機的運行時間，第三季的產量顯著增加，但 GEO 的交付量仍低於去年同期。然而，這部分是由於黃金和白銀的交付被延續到第四季度而造成的。

We do expect a stronger quarter for GEOs delivered and sold from Candelaria for Q4. At Antapaccay, although GEOs sold were lower in Q3 2024 compared to prior year, we did see a recovery of GEOs delivered compared to second quarter 2024.

我們確實預計第四季度從坎德拉里亞交付和銷售的 GEO 將出現強勁成長。在 Antapaccay，儘管 2024 年第三季的 GEO 銷量低於去年同期，但我們確實看到交付的 GEO 與 2024 年第二季相比有所復甦。

As a result, we expect full year deliveries to be between 50,000 to 60,000 GEOs as originally guided for the year. The Hemlo NPI was again weaker than expected. Our visibility is limited, and it continues to be difficult to estimate what the NPI will be going forward. With respect to new mines, we did receive our initial ounces from Tocantinzinho during the quarter and expect a stronger quarter from both Tocantinzinho and Greenstone in Q4. For the quarter, precious metal GEOs were 84,377. This compares to 90,370 in prior year when Cobre Panama GEOs are excluded. Precious metal GEOs represented approximately 77% of total GEOs for the quarter.

因此，我們預計全年交付量將達到最初指導的 50,000 至 60,000 個 GEO。Hemlo NPI 再次弱於預期。我們的能見度有限，而且仍然很難估計 NPI 的未來發展。就新礦而言，我們確實在本季度從 Tocantinzinho 收到了最初的盎司產量，並預計第四季度 Tocantinzinho 和 Greenstone 的產量都將更加強勁。本季貴金屬 GEO 為 84,377。相比之下，去年 Cobre 巴拿馬 GEO 被排除在外的情況下，這一數字為 90,370。貴金屬 GEO 約佔本季 GEO 總量的 77%。

For diversified, total GEOs sold were 25,733 compared to 35,511 in prior year. Iron ore GEOs sold were slightly lower year-over-year, while energy GEOs were lower at 19,137. The decrease in energy GEOs is a combination of lower production and revenue due to weaker natural gas prices as well as the impact of converting energy revenue to GEOs by higher gold prices. As we look to total revenue, revenue was $275.7 million for Q3 2024 compared to $309.5 million in prior year.

就多元化而言，GEO 總銷量為 25,733 輛，而上一年為 35,511 輛。鐵礦石 GEO 銷量較去年同期略有下降，而能源 GEO 銷量則較低，為 19,137 件。能源 GEO 的減少是由於天然氣價格疲軟導致產量和收入下降以及金價上漲將能源收入轉換為 GEO 的影響共同造成的。從總營收來看，2024 年第三季的營收為 2.757 億美元，而前一年的營收為 3.095 億美元。

However, when you exclude Cobre Panama from prior year revenue, revenue was higher by $33.5 million or 14% year-over-year. Q3 saw -- Q3 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 and year-to-date when compared to prior year.

然而，如果將 Cobre巴拿馬公司排除在上一年的收入之外，收入將增加 3,350 萬美元，年增 14%。第三季 - 2024 年第三季平均商品價格持續波動。正如您在幻燈片 5 中看到的那樣，與去年相比，本季和今年迄今為止的黃金和白銀平均價格明顯較高。

Slide 6 highlights the financial results for the quarter and year-to-date 2024. As mentioned, GEOs sold were lower at 110,110 compared to prior year, and revenue was also lower year-over-year. Adjusted EBITDA was $236.2 million, while adjusted net income was $153.9 million. This compares to $255.1 million in adjusted EBITDA in Q3 2023 and adjusted net income of $175.1 million in Q3 2023. On a per share basis, adjusted net income was $0.80 for the quarter.

幻燈片 6 重點介紹了 2024 年季度和年初至今的財務表現。如前所述，與前一年相比，GEO 銷量下降至 110,110 輛，營收也較去年同期下降。調整後的 EBITDA 為 2.362 億美元，調整後的淨利潤為 1.539 億美元。相較之下，2023 年第三季調整後 EBITDA 為 2.551 億美元，2023 年第三季調整後淨利為 1.751 億美元。以每股計算，本季調整後淨利為 0.80 美元。

On the cost side, we did have a decrease in cost of sales compared to Q3 2023 as we did not incur the ongoing fixed cost for ounces delivered by Cobre Panama, and had lower GEOs delivered and sold from Candelaria and Antapaccay. Also, cost of sales is dependent on which assets deliver stream ounces as not all fixed payments per stream ounce are equal. With respect to the arbitration costs for Cobre Panama, the company incurred costs of $1.9 million in Q3 2024 and have incurred $4.2 million year-to-date. We expect approximately $1.5 million to be incurred for the rest of the year.

在成本方面，與 2023 年第三季相比，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，並且從 Candelaria 和 Antapaccay 交付和銷售的 GEO 較低。此外，銷售成本取決於哪些資產提供流盎司，因為並非所有每流盎司的固定付款都是相等的。關於 Cobre巴拿馬的仲裁費用，該公司在 2024 年第三季產生了 190 萬美元的費用，今年迄今已產生了 420 萬美元的費用。我們預計今年剩餘時間將產生約 150 萬美元的費用。

Depletion decreased to $54.2 million versus $68.1 million a year ago. The decrease was due to 0 depletion recorded for Cobre Panama, as well as lower depletion recorded for Candelaria because of the lower deliveries in the quarter. Our effective tax rate was 21.6% in the quarter. We expect it to average around 20% going forward.

消耗減少至 5,420 萬美元，而一年前為 6,810 萬美元。下降的原因是巴拿馬 Cobre 的消耗量為 0，以及坎德拉里亞因本季度交付量較低而記錄的消耗量較低。本季我們的有效稅率為 21.6%。我們預計未來平均成長率約為 20%。

Slide 7 highlights the continued diversification of the portfolio. From the charts, you can see that 77% of our third quarter 2024 revenue was generated by precious metals, with revenue being sourced 81% 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 年第三季營收的 77% 來自貴金屬，其中 81% 的營收來自美洲。

Slide 8 illustrates the strength of our business model to generate high margins. For Q3 2024, the cash cost per GEO, which is essentially cost of sales divided by gold equivalent ounces sold, was $290 per GEO. This compares to $304 per GEO in Q3 2023. This amount will fluctuate depending on the mix of royalty versus stream GEOs, including mining and energy. But as you can see, at current average gold prices, the company generates significant margins. Margin was approximately $2,200 per ounce in Q3 2024. When you compare Q3 '24 to Q3 2023, the average gold price increased 28% year-over-year. However, the margin per ounce Franco-Nevada achieved increased 35%.

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 年第三季度，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 290 美元。相比之下，2023 年第三季每個 GEO 的費用為 304 美元。該金額將根據特許權使用費與流 GEO（包括採礦和能源）的組合而波動。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。2024 年第三季的保證金約為每盎司 2,200 美元。將 24 年第三季與 2023 年第三季進行比較時，平均黃金價格年增 28%。然而，Franco-Nevada 每盎司的利潤卻增加了 35%。

In a rising commodity price environment, Franco-Nevada benefits fully as the cost per GEO sold will not increase significantly. As we turn to available capital, the company has $2.3 billion as at September 30, 2024. The company continues to be debt-free.

在大宗商品價格上漲的環境下，弗蘭科-內華達公司充分受益，因為每個 GEO 的銷售成本不會大幅增加。當我們轉向可用資本時，截至 2024 年 9 月 30 日，該公司擁有 23 億美元。該公司仍然沒有債務。

Finally, with respect to guidance, we have benefited from record gold prices in the first nine months of 2024 with revenue exceeding our initial expectations. However, lower-than-expected gold deliveries from Candelaria and slower ramp-ups at our newly contributing mines has resulted in fewer precious metal GEOs than originally anticipated.

最後，關於指引，我們受益於 2024 年前 9 個月創紀錄的金價，收入超出了我們的最初預期。然而，坎德拉里亞的黃金交付量低於預期以及我們新貢獻礦山的產量增長速度較慢，導致貴金屬 GEO 數量低於最初預期。

In addition, record gold prices in the current year have impacted the conversion of our non-gold revenue into GEOs. Our original guidance for 2024 was total GEOs sold of 480,000 to 540,000. Of this total, precious metal GEOs were estimated to be 360,000 to 400,000 GEOs sold. Based on performance of the portfolio year-to-date, as well as the increase in gold prices, we now estimate total GEOs sold for 2024 to be 445,000 to 465,000. Of this total, precious metal GEOs are estimated to be 340,000 to 360,000. And with that, I will now pass it over to the operator, and we're happy to answer any questions.

此外，今年創紀錄的金價影響了我們將非黃金收入轉換為 GEO。我們對 2024 年的最初指引是 GEO 銷售總量為 48 萬至 54 萬輛。其中，貴金屬 GEO 預計將售出 36 萬至 40 萬個 GEO。根據今年迄今投資組合的表現以及金價上漲，我們現在估計 2024 年銷售的 GEO 總量為 445,000 至 465,000 枚。其中，貴金屬 GEO 估計為 340,000 至 360,000 個。現在，我會將其轉交給接線員，我們很樂意回答任何問題。

(Operator Instructions)

（操作員說明）

Cosmos Chiu, CIBC.

邱宇宙，CIBC。

Thanks, Paul and Sandip. Maybe if I can ask you on guidance first. You've revised guidance. We've now gone through about nine months of production. But for the revised full year guidance, you've still given us a range of 20,000 ounces. I'm just wondering what could be a potential driver for you to either hit the higher end of that range or come in on the lower end? I think you mentioned that Candelaria will likely have a better Q4. Is that the driver? Or are there any other key assets that we should be aware of as well?

謝謝保羅和桑迪普。也許我可以先向你尋求指引。您修改了指導。我們現在已經經歷了大約九個月的製作。但對於修訂後的全年指導，您仍然為我們提供了 20,000 盎司的範圍。我只是想知道什麼可能是您達到該範圍的高端或進入該範圍的低端的潛在驅動因素？我想你提到坎德拉里亞第四季可能會更好。那是司機嗎？或者有其他我們應該注意的關鍵資產嗎？

Hey, Cosmos, it's Sandeep. Yes, so the range is 20,000. In terms of where we come in at the higher or lower end, one is obviously on the diversified with the gold price, depending on how gold price performs, that will either increase or reduce the diversified GEOs. So there is obviously variability there. The other is timing of deliveries. As you would have seen, Lundin had a really good Q3, 29,000 ounces of gold produced, but it is timing of delivery. So whether you get that in the production in Q4, in Q4, or if it carries on into 2025, that can impact what we realize in terms of GEO's sold.

嘿，科斯莫斯，我是桑迪普。是的，所以範圍是 20,000。就我們處於較高或較低端的位置而言，顯然是隨著金價的多元化而變化，這取決於金價的表現，這將增加或減少多元化的 GEO。因此，那裡顯然存在可變性。另一個是交貨時間。正如您所看到的，倫丁第三季的表現非常好，生產了 29,000 盎司黃金，但現在正是交付的時機。因此，無論是在第四季度的生產中實現這一點，還是持續到 2025 年，這都會影響我們在 GEO 銷售方面的實現。

Great. And then longer term, I noticed that despite the changes in 2024 guidance, you've maintained your guidance five years out or four years out, 2028. at 540,000 to 600,000 ounces. So I guess that's implying some of these issues that you've experienced in Q4 -- or in 2024, will be more short term and it shouldn't impact your longer-term sort of profile. Is my sort of deduction correct?

偉大的。從長遠來看，我注意到，儘管 2024 年的指導發生了變化，但五年後或四年後，即 2028 年，您仍將指導維持在 540,000 至 600,000 盎司。因此，我認為這意味著您在第四季度或 2024 年遇到的一些問題將是短期的，不會影響您的長期形象。我的推論正確嗎？

Yes. The portfolio overall is performing well. Candelaria had a tough start to the year. But as you saw in Q3, it's done well. Antapaccay is going to meet its guidance from what we can see so far. So -- and the new mines, they're ramping up. And as you know, there's always issues when mines ramp up. So longer term, we have full confidence in our portfolio. We will be providing updated guidance in March when we release our year-end results for 2029, and we'll update at that time.

是的。該投資組合整體表現良好。坎德拉里亞今年開局艱難。但正如您在第三季看到的那樣，它做得很好。從目前我們所看到的情況來看，Antapaccay 將滿足其指導方針。因此，新礦山的建設正在加速推進。如您所知，當地雷增加時總會出現問題。因此從長遠來看，我們對我們的投資組合充滿信心。我們將在 3 月發布 2029 年年終業績時提供更新的指導，屆時我們將進行更新。

Great. And then maybe one last question and switching gears a little bit. I saw that you've invested $1 million for an off shipment to potentially acquire something in Potash. Paul, you kind of touched on it, diversification for the company. But maybe can you remind us in terms of Franco-Nevada's thinking in other commodities other than gold? And I guess, in this case, more specifically Potash. And maybe if you can comment on the opportunity -- potential opportunities out there? You mentioned the corporate development team is very busy and potential size of some of these transactions.

偉大的。然後也許是最後一個問題，並且稍微轉換主題。我看到你們投資了 100 萬美元用於一次裝運，有可能收購 Potash 的一些東西。保羅，你提到了公司的多元化。但也許您能提醒我們弗蘭科-內華達公司對黃金以外其他商品的看法嗎？我想，在這種情況下，更具體地說，是鉀肥。也許您可以評論一下這個機會——那裡有潛在的機會嗎？您提到公司開發團隊非常忙碌，其中一些交易的潛在規模。

Sure, Cosmos. In terms of our interest in other commodities, we always like to be strategic. I think -- opportunities both when there's a downturn in commodity prices that gives us a good entry point into other commodities.

當然，宇宙。就我們對其他商品的興趣而言，我們總是喜歡具有策略性。我認為，大宗商品價格下跌時都有機會，這為我們提供了進入其他大宗商品的良好切入點。

But the other thing we look for is what can we get in other commodities that you can't get in gold. And with assets, as you've seen with iron ore and potentially with potash, you get interest on some very large deposits that have got reserve lives that are many, many decades. So we would be interested in getting into potash for that reason. I think that would complement the gold portfolio quite nicely. And the -- what we're contemplating here is an option that if and when that project goes ahead, we'd be able to buy a royalty on it, which I think would be a great addition to the portfolio.

但我們尋找的另一件事是，我們能從其他商品中獲得哪些黃金無法獲得的東西。對於資產，正如您在鐵礦石和可能的鉀肥中看到的那樣，您可以從一些非常大的礦床中獲得利息，這些礦床的儲備壽命長達數十年。因此，我們有興趣進入鉀肥領域。我認為這將很好地補充黃金投資組合。我們在這裡考慮的是一個選擇，如果該項目繼續進行，我們將能夠購買它的特許權使用費，我認為這將是投資組合的一個很好的補充。

Great. Thanks Paul, Sandip. Those are all the questions I have. Thanks, once again.

偉大的。謝謝保羅，桑迪普。這些就是我的所有問題。再次感謝。

Tanya Jakusconek, Scotiabank.

Tanya Jakusconek，豐業銀行。

Thank you so much for my question, Paul, I wanted to continue on the potash here. Just wondering if this is just a foothold in (technical difficulty) or could we see other potash deals as well?

非常感謝你提出我的問題，保羅，我想繼續在這裡討論鉀肥。只是想知道這是否只是（技術難度）的立足點，或者我們還能看到其他鉀肥交易？

Over long term, Tanya, they -- we're open to all commodities. As I said, the -- those bulk commodities, iron ore, copper, potash, we like them because they're long-dated in nature. In terms of what's in front of us at the moment, this is the only immediate potash thing, but open over the longer term.

從長遠來看，Tanya，我們對所有商品都持開放態度。正如我所說，那些大宗商品，如鐵礦石、銅、鉀肥，我們喜歡它們，因為它們本質上是長期存在的。就目前我們面臨的情況而言，這是唯一直接的鉀肥項目，但從長遠來看是開放的。

And what sort of deal size would those ones be? I think when I asked last time, it was in the $50 million to $400 million range. Is that still the range for these non-gold or precious metal transactions?

這些交易的規模是多少？我想我上次問的時候，是在 5,000 萬到 4 億美元之間。這仍然是這些非黃金或貴金屬交易的範圍嗎？

Yes, that's an accurate range. They would -- We've got a couple of things that may be actionable, and those are sort of sizes.

是的，這是一個準確的範圍。他們會--我們有一些可能可行的事情，這些都是規模。

Okay. And then on the precious metal front, can you talk a little bit about sort of the size that you're seeing there? And has there been any change from the last quarter in terms of what else you're looking at in terms of funding for projects or operating cash flow assets that are coming up and/or any other structures that you're seeing out there that you may have to -- to look and change? And I guess that's the question as well. Are you looking at having to change some of the structure of your deals given the competitiveness of this environment?

好的。然後在貴金屬方面，您能談談您在那裡看到的尺寸嗎？與上個季度相比，您在專案融資或即將出現的營運現金流資產和/或您看到的任何其他結構方面所關注的其他方面是否有任何變化？我想這也是問題所在。鑑於這種環境的競爭性，您是否考慮必須改變一些交易結構？

I'm going to hand that over to [Eaun], Tanya.

我要把它交給[Eaun]，Tanya。

I would say, overall, a number of markets and structural factors lend itself to this being a pretty active year on the precious metal side. I think you've probably seen it already. There have been a number of deals that have taken place. I see that continuing, Tanya. It remains quite robust, as Paul mentioned earlier, in terms of potential transactions, pretty meaningful size.

我想說，總體而言，許多市場和結構性因素導致今年在貴金屬方面相當活躍。我想你可能已經看過了。已經發生了許多交易。我看到這種情況還在繼續，塔妮亞。正如保羅之前提到的，就潛在交易而言，它仍然相當強勁，規模相當有意義。

Our structure, we have already evolved a little bit, but we continue to do that. Backing the team at G-Min. It's been a very successful transaction, and it's great to see that go into operation. So that's something we continue to look to replicate. And it's been quite constructive, I think, for the portfolio. So going forward, I expect to be quite active on the precious metal side with kind of pretty meaningful sized transactions overall.

我們的結構已經發生了一些變化，但我們會繼續這樣做。支持 G-Min 團隊。這是一次非常成功的交易，很高興看到它投入運作。所以這是我們繼續尋求複製的東西。我認為這對我們的投資組合來說非常有建設性。因此，展望未來，我預期貴金屬方面將非常活躍，整體交易規模相當有意義。

And those meaningful transactions for you? Were you (technical difficulty) $300 million, but (technical difficulty) that's not meaningful (technical difficulty) not sure?

那些對您有意義的交易呢？你是（技術難度）3億美元，但是（技術難度）這沒有意義（技術難度）不確定嗎？

Yeah. I would say $300 million is kind of a good medium-sized transaction. We're seeing more towards the mid- to higher end at the moment, but it's a spectrum. Where we look at smaller deals where we see good potential. I think it was a good point that you raised, Tanya. We do transactions where we see excellent optionality, but we're also quite focused on areas where we can add immediate cash flow and there's some good opportunities there as well.

是的。我認為 3 億美元是一筆不錯的中型交易。目前我們看到更多的是中高階產品，但這是一個範圍。我們在較小的交易中看到了良好的潛力。我認為你提出的觀點很好，塔妮亞。我們在具有極好的選擇性的地方進行交易，但我們也非常關注可以立即增加現金流的領域，並且那裡也有一些很好的機會。

Okay. And when you said (technical difficulty) mid to high, (technical difficulty) would that mean plus $300 million? Because if you put mid at $300 million, upper end should be higher than that.

好的。當你說（技術難度）中到高時，（技術難度）是否意味著加上3億美元？因為如果你把中位數定為 3 億美元，那麼高端應該會比這個更高。

There are opportunities above that, yeah.

是的，上面還有機會。

Eaun, I wouldn't be surprised to see you in some of these competitive situations still take equity interest, provide debt financing. And potentially, I saw a deal that had collars involved as well in the initial start-up with that as well?

伊恩，如果看到您在某些競爭情況下仍然持有股權、提供債務融資，我不會感到驚訝。有可能，我在最初的新創公司中也看到了一項涉及項圈的交易？

We have used the balance sheet to kind of provide a full package like we did with G-Min, and it's been quite successful. So, as I said, I think that is the model on some transactions, not all. But where we can use that type of structure to help the company succeed, we will. And with that case study, the equity and debt have been quite complementary and provided good returns.

我們使用資產負債表來提供完整的一攬子計劃，就像我們對 G-Min 所做的那樣，而且非常成功。因此，正如我所說，我認為這是某些交易的模型，而不是全部。但只要我們能夠利用這種結構來幫助公司成功，我們就會這麼做。透過此案例研究，股權和債務具有相當的互補性，並提供了良好的回報。

Okay. If I can move over to you and just ask (technical difficulty) forecast of Hemlo (technical difficulty) by the Hemlo contribution. Is there anything else within the portfolio that -- like I think that one we're very -- it's very hard for me to forecast that. So I appreciate that. But any other one within the portfolio that we talked about looking at longer term. I saw the Stillwater numbers as well. That looks like that asset is going to be down for a bit for a while. So, is that something when you thought -- when you think about your five year outlook that you kind of assume that mine comes back on to a normal rate? Or we're back at that 265,000 ounce GEO? I'm just trying to think of how you (technical difficulty) assets that are hard (technical difficulty).

好的。我可以轉向您詢問 Hemlo 貢獻對 Hemlo（技術難度）的（技術難度）預測嗎？投資組合中是否還有其他東西——就像我認為我們非常的那樣——我很難預測這一點。所以我很欣賞這一點。但我們談論的投資組合中的任何其他產品都著眼於長期。我也看到了斯蒂爾沃特的數據。看起來該資產將在一段時間內下跌。那麼，當你想到你的五年前景時，你是否會認為我的前景會恢復到正常水平？或者我們又回到了 265,000 盎司的 GEO？我只是想想想你如何（技術難度）資產是困難的（技術難度）。

Sure. So obviously, the NPIs are always the most difficult to predict. Goldstrike is probably more -- easier to estimate just based on past history. Hemlo has always been the one that fluctuates a lot just because the NPI doesn't cover all the land or all the deposit as well as the cost impact there for development because it's underground. So it's tough to estimate for that.

當然。顯然，NPI 總是最難預測的。僅根據過去的歷史，Goldstrike 可能更容易估計。Hemlo 一直是波動很大的一個，因為 NPI 沒有涵蓋所有土地或所有礦床以及開發成本影響，因為它位於地下。所以很難對此進行估計。

As for other assets, you mentioned Stillwater. Yes, Sibanye-Stillwater came out and has reduced their guidance for next year to around 265,000 ounces. Longer term, we do expect that to get back up to the half million mark. And unless Sibanye-Stillwater guides differently, that's what we've estimated. But other than that, the rest of the portfolio, there shouldn't be really any major surprises longer term.

至於其他資產，您提到了斯蒂爾沃特。是的，Sibanye-Stillwater 已將明年的指導量下調至 265,000 盎司左右。從長遠來看，我們確實預計這一數字將回到 50 萬大關。除非 Sibanye-Stillwater 給出不同的指導，否則這就是我們的估計。但除此之外，投資組合的其餘部分，從長遠來看，應該不會出現任何重大驚喜。

Yeah. Obviously, the only other one would be when Cobre Panama comes into production. And I think the operator has mentioned that when it does come up into production, it's going to take a six month ramp-up. Is that your understanding?

是的。顯然，唯一的另一件事是巴拿馬 Cobre 投入生產。我認為運營商已經提到，當它投入生產時，將需要六個月的時間。這是你的理解嗎？

I think that's reasonable if that's what First Quantum has disclosed.

如果這是第一量子所披露的，我認為這是合理的。

Okay. Thank you so much for helping me appreciate it.

好的。非常感謝您幫助我欣賞它。

Derek Ma, TD Cowen.

德里克·馬，TD·考恩。

Thank you. I just want a point of clarification. In terms of the CRA and tax audit exposure, with the GMT now in place, is there still potential tax exposure in terms of transfer pricing in 2024? Or is everything you're showing in the financial reports basically everything we're going to be looking at?

謝謝。我只想澄清一點。就 CRA 和稅務審計風險而言，隨著 GMT 的實施，2024 年轉讓定價方面是否仍存在潛在的稅務風險？或者您在財務報告中顯示的所有內容基本上都是我們要查看的所有內容？

In the financials, we've disclosed up until the end of 2023 our exposure in terms of transfer pricing. We had three audit issues outstanding with CRA, two have been dropped by CRA. That was earlier in the -- earlier in the year. With respect to transfer pricing, that process is still ongoing. So that has nothing to do with the GMT.

在財務方面，我們揭露了截至 2023 年底我們在轉讓定價方面的風險。我們向 CRA 提出了三個未解決的審計問題，其中兩個已被 CRA 放棄。那是在今年早些時候。關於轉讓定價，該過程仍在進行中。所以這與 GMT 無關。

So would there still be potential exposure in terms of transfer pricing in 2024? Or does the GMT cover that?

那麼2024年轉讓定價方面是否仍存在潛在風險？或者 GMT 涵蓋了這一點嗎？

No, there still would be.

不，還是會有的。

There still would be, okay.

還是會有的，好吧。

They're independent.

他們是獨立的。

Independent issues, okay, understood.

獨立問題，好吧，明白了。

Heiko, H.C. Wainwright.

海科，H.C.溫賴特。

Hey, good morning. Thanks for taking my questions. The first two things I ask of you have already been answered, but just following up from an earlier question. You said there are some deals with immediate cash flow earlier in this Q&A session. Size-wise, how much will these deals move the needle, not just for you, but also for the operators that are offering them up? And have you seen any -- and just following up on that, have you seen any improvements in pricing for these deals in the current market environment? Or are the high gold prices that we've seen pretty much -- well, I was going to say all the way through yesterday, but all the way through today, really, just too good to -- and everyone is trying to get in?

嘿，早安。感謝您回答我的問題。我問你的前兩件事已經被回答，但只是對先前問題的延續。您在本次問答環節早些時候說過，有一些交易可以立即產生現金流。就規模而言，這些交易會帶來多大的影響，不僅對您而言，對提供這些交易的營運商也是如此？您是否看到任何改進？ 緊隨其後，您是否看到在當前市場環境下這些交易的定價有任何改善？還是我們已經看到的高金價——嗯，我本來想說一直到昨天，但一直到今天，真的，太好了——每個人都在試圖進入？

So in terms of near-term cash flow deals, as I said, it's across the spectrum. We've done some transactions that have more optionality. But I do see potential for meaningful transactions, both for us and the people that we would potentially be transacting with going forward. Sorry, Heiko, the second part of your question?

因此，就近期現金流交易而言，正如我所說，它是跨範圍的。我們已經做了一些具有更多選擇性的交易。但我確實看到了有意義的交易的潛力，無論是對我們還是對我們未來可能與之進行交易的人來說。抱歉，Heiko，你問題的第二部分？

Price-wise, have you -- price-wise, is the gold price just king and everyone is savoring to get in? Or have people been a little bit more willing to negotiate pricing?

從價格角度來看，金價是否就是王道，每個人都想進入？或者人們是否更願意協商定價？

Again, it varies, but I do see overall a slightly more muted competitive environment at the moment, which is conducive to pricing better.

同樣，情況各不相同，但我確實認為目前整體競爭環境稍微溫和，這有利於更好地定價。

And pricing depends on geopolitical risks as in maybe slightly more challenging places are easier to get in? Or is it just however desperate the operator is? Maybe desperate is the wrong word.

定價取決於地緣政治風險，因為可能更具挑戰性的地方更容易進入？還是只是操作者有多絕望？也許「絕望」這個詞是錯的。

Yeah. No, that's another good question, Heiko. I would say, first off, every deal is a bit different. And it's important to do your diligence and then price the risk and upside appropriately. So we get the opportunity to review assets, to do site visits, and then we assess pricing in light of what we see as the risks and the upside. So it's a really balanced approach, and we're very thoughtful about that in each transaction.

是的。不，這是另一個好問題，Heiko。我想說，首先，每筆交易都有所不同。盡職調查並適當定價風險和上漲空間非常重要。因此，我們有機會審查資產、進行實地考察，然後根據我們認為的風險和優勢評估定價。所以這是一種非常平衡的方法，我們在每筆交易中都非常考慮這一點。

Very well. I'll get back in queue. Thank you guys.

很好。我會回到隊列中。謝謝你們。

(Operator Instructions).

（操作員說明）。

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

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

Our first question comes from [Diego Trimatera] from Noster Capital Management: "Can you clarify a bit more what does adjusting the Cobre Panama mine in early 2025 mean? Are there any proactive measures you or First Quantum are taking to try and sit down with President Molino and his administration?"

我們的第一個問題來自 Noster Capital Management 的 [Diego Trimatera]：「您能否進一步澄清一下 2025 年初調整 Cobre 巴拿馬礦意味著什麼？您或第一量子是否正在採取任何積極措施來嘗試與莫利諾總統及其政府坐下來？

Thanks, Diego. It's Paul. The --So President Molino has made comments to say he is open to discuss the mine. First item on his agenda, though, is pension reform, which they are currently trying to address. I believe there's a bill that's now in front of parliament to address that. So expect any discussions on the mine would be early next year.

謝謝，迭戈。是保羅。——莫利諾總統發表評論稱，他願意討論該礦。不過，他議程上的第一個項目是退休金改革，他們目前正在努力解決這個問題。我相信現在有一項法案正在提交議會來解決這個問題。因此，預計有關該礦的任何討論都將在明年初進行。

First Quantum is being proactive on a couple of fronts. One is trying to authorize Panamanians with the mine with the professional operation that they run in-country. I think that is going well. I think that is impacting sentiment in the country towards mining. They also are engaging with the government on a couple of fronts. Obviously, there are two things there. Both for them and for us, there's the potential for arbitration. So there are interactions on that front. It's not plan A for either of us. Plan A is to get the mine up and operating again. So they are engaging with the government on that. We are -- they're obviously the driver in this. We're very supportive of their efforts and engage very closely on them with it.

第一量子在幾個方面積極主動。其中之一是試圖授權巴拿馬人在該國境內進行專業營運。我認為進展順利。我認為這正在影響該國對採礦業的信心。他們也與政府接觸幾個方面。顯然，有兩件事。對他們和我們來說，都有仲裁的可能性。所以在這方面存在著互動。這對我們倆來說都不是 A 計畫。A 計畫是讓礦場恢復運作。因此他們正在與政府就此進行接觸。我們——他們顯然是這件事的推動者。我們非常支持他們的努力，並與他們密切合作。

The second part of Diego's question is: "if Cobre Panama remains in preservation and safe management mode for several years, is there anything you might consider doing with that stream, like selling it?"

迭戈問題的第二部分是：“如果巴拿馬銅礦在幾年內仍處於保護和安全管理模式，您是否會考慮對這條水流做任何事情，例如出售它？”

We're very hopeful that the mine will return to operation, and it is -- has the potential to be a tremendous contributor to us. If and when it comes back at its full operating rate, that would be roughly a 30% increase in our GEOs and revenues. So we still believe it's a tremendously valuable asset. I think the full value of it has been taken out of our stock. So I think the -- probably the best optionality you can get in the royalty industry today is a free option on Cobre Panama coming back online.

我們非常希望該礦能夠恢復運營，而且它有潛力為我們做出巨大貢獻。如果恢復到滿載運轉，我們的 GEO 和收入將增加約 30%。所以我們仍然相信這是一項非常有價值的資產。我認為它的全部價值已從我們的庫存中扣除。所以我認為，今天在特許權使用費行業中可以獲得的最好的選擇可能是 Cobre巴拿馬重新上線的免費選項。

Our last question is from Heiko from H.C. Wainwright. "Wanted to see if you anticipate any near-term or long-term impact from the US election given some of the geopolitical changes that might bring around the world?"

我們的最後一個問題來自 H.C. 的 Heiko。溫賴特。“考慮到可能給世界各地帶來的一些地緣政治變化，想了解一下您是否預計美國大選會產生任何短期或長期影響？”

The -- I think potential for some positive impacts for us. Most immediately, we have a royalty on Stibnite mine. It's been moving through the permitting process, got notice that they should be receiving their record of decision by the end of this year. I think that is even more likely now. A second mine that we've got a royalty on is Copper World, also moving through permitting process. I think has its water permit now in hand, just waiting for one more permit.

我認為這可能會給我們帶來一些正面的影響。最直接的是，我們對輝銻礦礦有特許權使用費。它正在辦理許可程序，並通知他們應該在今年年底之前收到他們的決定記錄。我認為現在這種可能性更大。我們取得特許權使用費的第二個礦場是 Copper World，也正在辦理許可程序。我想現在已經拿到了用水許可證，只是在等待另一張許可證。

So I think this change will be positive. I hope that we will -- it will impact that side of our portfolio. As you know, we also have quite substantial oil and gas interests in the US. In particular, we have gas interests in the Haynesville. And the -- one of the drivers for that industry is LNG offtake off the Gulf Coast. And going into Europe, I think this can be potentially positive to see more developments on that front that will serve those assets well.

所以我認為這種改變將是正面的。我希望我們能夠—這將影響我們投資組合的這一方面。如你所知，我們在美國也擁有相當大的石油和天然氣權益。特別是，我們在海恩斯維爾擁有天然氣權益。該行業的驅動力之一是墨西哥灣沿岸的液化天然氣採購。進入歐洲，我認為這可能是積極的，因為看到這方面的更多發展將為這些資產提供良好的服務。

There are no further questions from the webcast. This concludes our third quarter results conference call and webcast. Thank you for your interest in Franco-Nevada.

網路廣播中沒有進一步的問題。我們的第三季業績電話會議和網路廣播到此結束。感謝您對弗蘭科-內華達州的興趣。