Franco-Nevada Corporation (FNV) 2026 Q2 法說會逐字稿

Good morning, and welcome to Franco-Nevada Corporation's second-quarter 2026 results conference call and Webcast. This call is being recorded on August 12, 2026. (Operator Instructions) I would now like to turn the conference over to your host, Bonavie Tek, VP Finance, Investor Relations. Please go ahead.

早安，歡迎收聽 Franco-Nevada Corporation 2026 年第二季業績電話會議與網路直播。本次會議於 2026 年 8 月 12 日錄音。(接線員指示) 現在我將把會議交給主持人 Bonavie Tek，財務副總裁兼投資人關係主管。請開始。

Thank you, [Andi]. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's second-quarter 2026 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 webcast.

謝謝，[Andi]。各位早安。感謝各位今天加入我們，一同討論 Franco-Nevada 2026 年第二季業績。本次電話會議搭配一份簡報，可於我們網站 franco-nevada.com 取得，您也可在該處找到我們完整的財務結果。該簡報亦可於網路直播中觀看。

During our call this morning, Paul Brink, President and CEO, 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 executive team is available to answer any questions. Participants may send the questions by telephone or via the webcast.

在今天上午的電話會議中，Franco-Nevada 總裁暨執行長 Paul Brink 將先致開場談話；接著由財務長 Sandip Rana 簡要回顧我們的業績。之後將進入問答時間。我們的管理團隊將在場回答任何問題。與會者可透過電話或網路直播提交問題。

We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on slide 2 of the presentation. I will now turn over the call to Paul Brink, President and CEO of Franco-Nevada.

提醒各位，今天部分評論可能包含前瞻性資訊，請參閱簡報第 2 頁的詳細警示說明。現在我把電話會議交給 Franco-Nevada 總裁暨執行長 Paul Brink。

Thanks, Bonavie, and good morning. We had a strong second quarter with GEOs sold up 18% year over year due to higher production at [Sky,] Antamina, and South Arturo. New contributions from the recently acquired [Côté Gold] and Casa Berardi interests and start production at Valentine Gold.

謝謝你，Bonavie，早安。我們第二季表現強勁，受惠於 [Sky,]、Antamina 與 South Arturo 產量提高，售出之黃金當量盎司（GEOs）年增 18%。此外，近期收購的 [Côté Gold] 與 Casa Berardi 權益帶來新的貢獻，Valentine Gold 也開始投產。

In addition to record gold prices in the quarter, we saw strong gold prices with the higher energy contribution and the processing of stockpiles at Cobre Panamá, we're tracking towards the upper half of our annual guidance range for 2026.

除本季金價創新高外，隨著能源貢獻增加以及 Cobre Panamá 處理堆存礦，我們正朝向 2026 年全年指引區間的上半部前進。

At Cobre Panamá, the environmental audit was completed, indicating no major findings and an overall compliance rate by the operation of 87.7%. The government then established a commission of senior ministers to evaluate both the environmental aspects and the economic contribution of a potential mine restart.

在 Cobre Panamá，環境稽核已完成，結果顯示沒有重大發現，營運整體合規率為 87.7%。隨後，政府成立由資深部長組成的委員會，以評估潛在復礦在環境面與經濟貢獻面的影響。

Simply put in our business, you want to grow through acquisition in the bear market and organically in a bull market. In particular, with our deep royalty portfolio that organic growth can be very powerful. During the spring quarter, and we saw green shoots across the portfolio. We received good news on future mine expansions at [Olof] Côté, Detour, Magino, Valentine, Condestable, Caserones, and Séguéla.

簡單來說，在我們的業務中，熊市時希望透過併購成長，牛市時則以有機成長為主。尤其是我們擁有深厚的權利金投資組合，有機成長的威力可以非常強大。在春季季度期間，我們看到整個投資組合出現復甦跡象。我們收到關於 [Olof] Côté、Detour、Magino、Valentine、Condestable、Caserones 與 Séguéla 未來礦山擴建的好消息。

At Candelaria, we had news of a potential pushback. And at Porcupine, we had the Kidd acquisition that may ultimately allow a doubling new airport. Guadalupe-Palmarejo, Hemlo, Bullabulling, and AurMac all announced resource expansions. There was positive progress on mine development at Copper World and Stibnite Gold. Profit Nickel received its federal approval, and PSJ Cobre Mendocino, previously [Canmore], that's Argentinian RIGI approval.

在 Candelaria，我們獲悉可能進行推進式擴坑（pushback）。在 Porcupine，我們看到 Kidd 收購案，最終可能使一座新機場的規模倍增。Guadalupe-Palmarejo、Hemlo、Bullabulling 與 AurMac 皆宣布資源量擴增。Copper World 與 Stibnite Gold 的礦山開發亦取得正面進展。Profit Nickel 取得聯邦核准，而 PSJ Cobre Mendocino（先前為 [Canmore]）則取得阿根廷 RIGI 核准。

And lastly, success at the drill bit. Great exploration results in the Porcupine camp, Bullabulling, Owl Creek, and others. Midas, where Hecla considering the restart, Stibnite where they start drilling again after more than a decade, and at AurMac and Bullabulling where we have new interests.

最後是鑽探方面的成功。Porcupine 礦區、Bullabulling、Owl Creek 等地皆有優異的勘探成果。Midas 方面，Hecla 正在考慮重啟；Stibnite 則在超過十年後再次開始鑽探；而在 AurMac 與 Bullabulling，我們也取得新的權益。

Net revenue was up on stronger oil prices, while operator capital discipline prevails they have been to pick up in US. oil rig rates, 450 rigs now up from 420 three months ago in the lower 48 also reinvestment rates amongst the US producers are moving up 55% now on average versus 51% earlier in the year, both of which bode well for higher future production rates. The leverage on the NPI at our Weyburn interest in Canada gave a nice boost to our Canadian Energy segment.

在油價走強帶動下，淨營收上升；同時在營運商維持資本紀律之際，美國石油鑽機數也開始回升：目前 48 州本土（lower 48）鑽機數為 450 座，高於三個月前的 420 座；此外，美國生產商的再投資率亦上升，目前平均為 55%，高於年初的 51%，兩者皆有利於未來產量提高。我們在加拿大 Weyburn 權益的 NPI 槓桿效應，為加拿大能源事業部帶來不錯的提振。

On the sustainability front, we continue to expand our engagements with and contributions to communities at mine sites. Franco-Nevada was recognized as one of Corporate Knights Best 100 -- Best 50 Corporate Citizens in Canada for 2026 and achieved an A rating from CDP. We're in the progress of evaluating candidates for our expanded scholarship program and are delighted with a bumper crop of excellent Africans this year. The business development team had a strong pipeline of opportunities. Unfortunately, total available capital stands at $4.3 billion. So we're well positioned to add attractive new assets to the portfolio. With that, I'll hand the call over to Sandip.

在永續方面，我們持續擴大與礦區所在地社區的互動與貢獻。Franco-Nevada 獲選為 Corporate Knights 2026 年加拿大最佳 50 企業公民（Best 100 之 Best 50）之一，並在 CDP 取得 A 級評等。我們正在評估擴大獎學金計畫的候選人，今年我們很高興看到一批非常優秀的非洲申請者。業務開發團隊擁有強勁的機會管線。目前可動用的總資本為 43 億美元。因此，我們具備良好條件為投資組合增添具吸引力的新資產。接下來我把電話交給 Sandip。

Thanks, Paul. Good morning, everyone. Franco-Nevada reported another quarter of solid financial results as our portfolio of royalty and stream assets continue to perform well and in line with our expectations. The performance during the quarter continued the very strong start to the year with record financial results achieved for revenue, adjusted EBITDA, adjusted net income, and operating cash flow for the first six months of 2026.

謝謝，Paul。各位早安。Franco-Nevada 本季再度繳出穩健的財務表現，我們的權利金與金屬流（stream）資產組合持續良好運作，且符合我們的預期。本季表現延續今年非常強勁的開局，2026 年上半年在營收、調整後 EBITDA、調整後淨利與營運現金流方面皆創下紀錄。

On slide 4, you will see a summary of commodity prices for second-quarter 2026 and '25. Precious metal prices have increased significantly year over year with the average gold price higher by 38% and silver by 118% in the quarter. However, both gold and silver prices have retreated from the highs reached during the first quarter.

在第 4 頁投影片，您將看到 2026 年與 2025 年第二季的大宗商品價格摘要。貴金屬價格年增顯著，本季平均金價上升 38%，白銀上升 118%。然而，金價與銀價皆已自第一季所達高點回落。

For the diversified commodities with the continued conflict in the Middle East, oil price has seen a sharp increase over prior year. The WTI price has been volatile over the last few months but remains above $80 a barrel. Energy revenues did benefit from the higher price in the quarter, and we expect this to carry through the third quarter.

就多元化商品而言，隨著中東衝突持續，油價較去年大幅上升。WTI 價格近幾個月波動，但仍維持在每桶 80 美元以上。本季能源營收確實受惠於較高價格，我們預期此趨勢將延續至第三季。

Slide 5 provides an overview of our key financial results. The performance from our assets, combined with stronger commodity prices resulted in an increase in revenue of 57%, adjusted EBITDA of 45%, and adjusted net income of 46%. And total GEOs sold for the quarter increased by 18% to 132,405 compared to just over 112,000 in the second quarter of 2025.

第 5 頁投影片提供我們關鍵財務結果概覽。資產表現加上更強勁的大宗商品價格，使營收增加 57%、調整後 EBITDA 增加 45%、調整後淨利增加 46%。本季售出之 GEOs 總量年增 18% 至 132,405，較 2025 年第二季的 112,000 多盎司為高。

Precious metal GEOs sold in the quarter were 114,111, higher by 23% compared to prior year. 56% of total GEOs sold during the quarter were sourced directly from mines where precious metals are the primary commodity.

本季售出的貴金屬 GEOs 為 114,111，較去年增加 23%。本季售出之 GEOs 總量中，有 56% 直接來自以貴金屬為主要商品的礦山。

For the quarter, we received strong contributions from several assets. At Antamina, we benefited from both higher deliveries, but also benefited from the higher silver price, resulting in an increase in revenue from $23.3 million in Q2 2025 to $57.4 million this quarter.

本季我們自多項資產獲得強勁貢獻。在 Antamina，我們不僅受惠於交付量增加，也受惠於銀價上升，使營收由 2025 年第二季的 2,330 萬美元增至本季的 5,740 萬美元。

Antapaccay benefited from the processing of higher grade ore which we expect to continue in the second half of 2026. At South Arturo, we had a significant increase in GEOs as we benefited from the phase one production of the open pit. Please note that strong performance was always weighted towards the first half of the year.

Antapaccay 受惠於加工較高品位礦石，我們預期此情況將在 2026 年下半年持續。在 South Arturo，我們的 GEO 顯著增加，受惠於露天礦第一階段的投產。請注意，強勁表現一向偏重於上半年。

At Candelaria, production at the mine was lower compared to prior year as last year, the mine had the benefit of higher grade ore from phase eleven. Lundin Mining expects production to be weighted towards the second half of 2026 due to increased availability of higher wage Phase 12 ore combined with increased underground mining rates as the underground in-sourcing initiative nears completion.

在 Candelaria，礦山產量較去年同期下降，因為去年礦山受惠於第 11 階段的較高品位礦石。Lundin Mining 預期 2026 年的產量將偏重於下半年，原因是較高品位的第 12 階段礦石供應增加，並且隨著地下作業內部化（in-sourcing）計畫接近完成，地下採礦速率也將提高。

Diversified GEOs sold were 18,209 for the quarter compared to 19,644 for prior year despite the diversified revenue being 31% higher at $82.2 million. The decrease in GEOs is the result of converting revenue to GEOs at a higher gold price. As you know, we are converting GEOs using a gold price of $4,500 per ounce.

本季多元化已售出 GEO 為 18,209，較去年同期的 19,644 下降，儘管多元化收入增加 31% 至 8,220 萬美元。GEO 下降是因為在較高金價下，將收入換算為 GEO 的結果。如各位所知，我們以每盎司 4,500 美元的金價來換算 GEO。

With respect to costs, we did have an increase in cost of sales compared to Q2 2025 due to higher fixed costs paid for stream ounces as a portion of our streams have a fixed cost based on the percentage of the gold price. Cost of sales was $45.9 million versus $32.5 million last year.

就成本而言，與 2025 年第二季相比，我們的銷貨成本確實增加，原因是部分串流合約的固定成本係按金價百分比計算，因此就串流盎司支付的固定成本較高。銷貨成本為 4,590 萬美元，去年為 3,250 萬美元。

Depletion increased to $84 million versus $64 million a year ago, the increase being due to depletion being reported on some of our recent transactions Yanacocha, Casa Berardi, Porcupine and Cote. These assets are higher per ounce depletion assets. We expect the depletion rate to decrease over time as the reserves on the properties grow.

折耗增加至 8,400 萬美元，去年同期為 6,400 萬美元；增加原因在於我們近期部分交易（Yanacocha、Casa Berardi、Porcupine 與 Cote）開始計提折耗。這些資產的每盎司折耗較高。隨著各項物業的儲量成長，我們預期折耗率將隨時間下降。

Adjusted net income was $349.2 million or $1.81 per share for the quarter, both higher by 46% year over year. Slide 6 highlights the continued diversification of the portfolio. 86% of our second-quarter revenue was generated by precious metals, with revenue being sourced 88% from the Americas and no one asset generated more than 10% of revenue as we have one of the most diverse portfolios in the industry.

本季調整後淨利為 3.492 億美元，或每股 1.81 美元，兩者皆較去年同期增加 46%。第 6 頁投影片突顯投資組合持續多元化：第二季收入的 86% 來自貴金屬，收入來源有 88% 來自美洲，且沒有任何單一資產貢獻超過 10% 的收入，因為我們擁有業界最多元的投資組合之一。

The model continues to be a very high-margin business, as shown on slide 7. And the margin per GEO has increased from $1,559 per GEO in 2022 to $4,352 per GEO in 2026, a 179% increase while during this time, the gold price has increased 116%.

如第 7 頁投影片所示，本商業模式仍為高毛利業務。每 GEO 的毛利已由 2022 年每 GEO 1,559 美元提高至 2026 年每 GEO 4,352 美元，增幅 179%；同期間金價上漲 116%。

As we turn to dividends on slide 8, the company continues to pay a quarterly dividend with $84 million being paid to shareholders during the quarter. With respect to our guidance summarized on slide 9, we had guided to 510,000 to 570,000 total GEO sold for the full-year 2026. With the strong performance of our portfolio for the first 6 months of '26 with approximately 269,000 GEOs sold at an expected stronger second half of the year, we are tracking towards the upper half of the annual guidance range.

接著看第 8 頁投影片的股利，公司持續按季配發股利，本季支付股東 8,400 萬美元。就第 9 頁投影片彙總的指引而言，我們對 2026 全年總 GEO 銷售量的指引為 510,000 至 570,000。鑑於 2026 年前 6 個月投資組合表現強勁，已售出約 269,000 GEO，且預期下半年更強，我們目前進度正朝向全年指引區間的上半部。

We expect stronger second-half performance from several assets, including Candelaria, Tocantinzinho, Côté, and Valentine. We expect to receive between 9,000 and 10,000 GEOs from Cobre Panamá as First Quantum has begun processing stockpile ore. And with the continued strong oil price, we expect energy revenue to remain strong in the second half of the year.

我們預期多項資產在下半年表現更強，包括 Candelaria、Tocantinzinho、Côté 與 Valentine。由於 First Quantum 已開始處理堆存礦石，我們預期將自 Cobre Panamá 收到 9,000 至 10,000 GEO。此外，在油價持續強勁的情況下，我們預期能源收入在下半年仍將維持強勁。

And lastly, slide 10 highlights our available capital. As at June 30, 2026, the total available capital is $4.3 billion, comprised of $1 billion in cash $2.25 billion of credit facility, including the accordion, and $1.2 billion in liquid market securities. The company continues to remain debt-free and is well capitalized to continue to add quality assets to the portfolio.

最後，第 10 頁投影片重點說明我們可動用資本。截至 2026 年 6 月 30 日，可動用資本總額為 43 億美元，包括 10 億美元現金、22.5 億美元的信貸額度（含增額條款 accordion），以及 12 億美元的高流動性有價證券。公司仍維持零負債，資本實力充足，可持續為投資組合增添優質資產。

And with that, I will pass it over to [Andis] as management is happy to answer any questions.

以上，我把時間交給 [Andis]，管理團隊很樂意回答各位的問題。

(Operator Instructions) Cosmos Chiu, CIB.

(接線員指示) Cosmos Chiu，CIB。

Maybe my first question is on the NPIs. I noticed that Hemlo was down quarter over quarter whereas the Musselwhite NPI was up quarter over quarter. But I guess, it is always volatile in terms of these NPIs. But how should we look at it based on what we know in Q1 and Q2 on what we should expect in Q3 and Q4?

我第一個問題可能是關於 NPI。我注意到 Hemlo 較上一季下降，而 Musselwhite 的 NPI 較上一季上升。不過我想，這些 NPI 一向波動很大。但基於我們在第一季與第二季所掌握的資訊，我們應該如何看待第三季與第四季的預期？

Sure. You said it correctly. They are volatile. And for us, a lot of it is based on visibility. At Hemlo, in Q2, Hemlo Mining produce less on our [intraplant] than previous quarters, which impacted the NPI. I think for the second half of the year, from what we gather, production should increase. Does it hit what was achieved in Q1, I don't know, but it should be higher than Q2.

好的。你說得沒錯。它們確實波動。對我們而言，很大一部分取決於能見度。在 Hemlo，第二季 Hemlo Mining 在我們的 [intraplant] 上產量較前幾季少，因而影響 NPI。就我們掌握的情況來看，下半年產量應會增加。是否能達到第一季的水準我不確定，但應該會高於第二季。

So I would expect a slightly higher NPI for the second half of the year from Hemlo. Obviously, that's all contingent on commodity prices as well. On that Musselwhite, we did have strong performance in Q2. A large component of that was a catch-up entry for 2025. For Musselwhite, we have limited visibility, and then there's a finalization of the NPI calculation that happens in the following year. So in Q2 is when we got that final number, and we recorded that. But considering where commodity prices are right now, I would expect a very strong NPI from Musselwhite for 2026.

因此我預期 Hemlo 在下半年的 NPI 會略高一些。當然，這也取決於商品價格。至於 Musselwhite，我們在第二季確實表現強勁。其中很大一部分是針對 2025 年的追溯調整入帳（catch-up entry）。對 Musselwhite 而言，我們的能見度有限，而且 NPI 的計算會在隔年進行最終結算。因此在第二季我們拿到最終數字並予以入帳。但考量目前商品價格水準，我預期 Musselwhite 在 2026 年的 NPI 會非常強勁。

Great. And then maybe diving a little bit deeper into Hemlo last night, I guess, they reported earnings and they're deferring formal guidance, production guidance from sometime in 2026 into 2027. And where you're standing, and there's a lot of moving pieces. It's based on actual production from the asset, but also the Interlake component, but any concerns in terms of that deferral of guidance? It seems like things are kind of ramping up potentially slower than expected.

很好。另外，昨晚我更深入看了 Hemlo，我想他們公布了財報，並把正式指引、產量指引從原本 2026 年的某個時間點延後到 2027 年。以你們目前的立場來看，變數很多。這取決於資產的實際產量，也取決於 Interlake 的部分；但對於延後提供指引這件事，有沒有任何疑慮？看起來進度可能比預期慢一些。

I think Hemlo is doing -- the team is doing a very good job there. They just took over the asset last year. From our perspective, we're pretty confident that mining (inaudible) will continue for the next number of years. Obviously, it will be volatile just depending on how development is going, but we're pretty call that the NPI will be there for the foreseeable future.

我認為 Hemlo 的團隊做得非常好。他們去年才接手該資產。從我們的角度，我們相當有信心採礦（聽不清）在未來幾年會持續進行。當然，會因開發進度而有所波動，但我們相當確信在可預見的未來 NPI 會持續存在。

Great. And maybe switching gears a little bit to Guadalupe and Palmarejo. As you mentioned in your prepared remarks, it continues to be one of the larger contributors of GEOs. But I guess my question is, when we talk to Coeur mining and the management team continues to remind us that exploration continues beyond the Franco-Nevada area of influence. I guess from that perspective, how should we look at it? Is there any kind of near-term concerns to Franco-Nevada?

很好。再把話題稍微轉到 Guadalupe 和 Palmarejo。如你在事先準備的談話中提到的，它仍是 GEO 的較大貢獻來源之一。但我的問題是，當我們與 Coeur Mining 及其管理團隊交流時，他們持續提醒我們，勘探仍在 Franco-Nevada 影響範圍之外進行。從這個角度來看，我們應該如何解讀？短期內對 Franco-Nevada 是否有任何疑慮？

They've had very good exploration results, both on-stream ground and off-stream ground on our ground, specifically Hidalgo based upon what we've seen, production on our land will continue for the foreseeable future. A large portion of their production is still on Franco stream ground. Obviously, they are trying to find additional resources on adjacent lands where the stream doesn't apply. But right now, we don't have any concern.

他們在我們的礦權範圍內，無論是適用串流（stream）協議的區域或不適用串流協議的區域，都取得了非常好的勘探成果；就我們所看到的情況而言，特別是以Hidalgo為例，我們土地上的產量在可預見的未來將會持續。他們相當大一部分的產量仍然來自Franco串流礦區。顯然，他們正嘗試在相鄰、且不適用串流協議的土地上尋找額外資源。但就目前而言，我們沒有任何疑慮。

And then maybe one last question, tracking your margins here. And just I think you did a good job in terms of looking at the margin expansion. Another way I looked at it was the adjusted EBITDA margin, I noticed that the increased 87.6% four quarters ago to 90.6%, 91% now to 91.2%, again, the agreed EBITDA margin. Is that just a function of us the increase in commodity prices coupled with not as much of an increase or no increase at all to cost. And is that percentage that you track yourself? Are you happy with a 91.2% right now?

然後也許最後一個問題，關於你們這裡的利潤率走勢。我覺得你們在檢視利潤率擴張方面做得很好。我用另一種方式看：調整後EBITDA利潤率，我注意到四個季度前是87.6%，之後提高到90.6%，現在是91%到91.2%，同樣是調整後EBITDA利潤率。這是否只是因為大宗商品價格上漲，而成本沒有相應上升、甚至完全沒有上升所致？而這個百分比是你們自己也會追蹤的指標嗎？你們對目前91.2%感到滿意嗎？

Yeah. No, it's -- we are a very high-margin business. Obviously, it's composed of a number of factors. One is how much of our GEOs and revenue and EBITDA is being generated by streams. It just so happens right now in our -- the recent deals we've done have been royalty deals, and they're obviously limited or no cost associated with those. So it's just the leverage of the portfolio overall.

是的。不，這是——我們是一個利潤率非常高的業務。顯然，這是由多個因素構成的。其中之一是，我們的GEO、營收與EBITDA有多少是由串流（streams）所貢獻。剛好目前我們——最近做的交易多為權利金（royalty）交易，而這類交易顯然相關成本有限或幾乎沒有成本。所以這主要反映的是整體投資組合的槓桿效應。

Lawson Winder, Bank of America Securities.

Lawson Winder，美國銀行證券（Bank of America Securities）。

Thanks for today's update. Can I start with the 2026 guidance and your expectation to be in the top half of the range? And that includes Cobre Panamá potentially stronger oil prices. If you just take the midpoint of the GEO volume guidance range of [540,000] and then add core Panama, it's about [27.5 GEOs] and then you assume higher oil prices, I think you could comfortably get above range.

感謝今天的更新。我可以先從2026年的指引以及你們預期會落在區間上半部開始問嗎？而這還包含Cobre Panamá以及可能更強的油價。如果只取GEO產量指引區間的中點[540,000]，再加上Cobre Panamá核心部分，大約是[27.5 GEOs]，然後再假設油價更高，我認為你們應該可以很輕鬆地高於區間。

So it would suggest that you're tracking to above the range. Or I mean it might also suggest that excretion higher oil prices, the portfolio is tracking to perhaps well below the midpoint. Could you maybe just clear out what would be the right way to think about that?

所以這似乎表示你們的進度是在區間之上。或者我的意思是，這也可能表示，扣除更高油價的貢獻後，投資組合的表現可能遠低於中點。你能否釐清一下，應該用什麼方式來理解這件事才是正確的？

Yeah, it's a good question, Lawson. So for us, obviously, if you looked at our numbers, as you said, the midpoint was [540] of our guidance range. coverage to [9 to 10] energy prices will add some additional geos assuming oil prices stay where they are.

是的，Lawson，這是個好問題。對我們而言，顯然如果你看我們的數字，如你所說，我們指引區間的中點是[540]。涵蓋到[9到10]的能源價格，假設油價維持在目前水準，將會增加一些額外的GEO。

And then we are expecting stronger performance from Candelaria, Cote, Valentine, a few others, we're expecting weaker performance from the South Arturo, which was more focused on the first half of the year. So as we've said, it's going to be tracking at the higher end of the overall range. We're still in the middle of the year. And there is the possibility that you could surpass the range, but a lot of things have to happen for that to occur. So right now, we're comfortable with just providing that guidance range.

另外，我們預期Candelaria、Cote、Valentine以及其他幾個項目表現會更強；我們預期South Arturo會較弱，因為它的產量更集中在上半年。因此如同我們所說，整體將會朝區間較高端的方向推進。我們仍在年中。確實有可能超出區間，但要發生那種情況需要很多事情同時到位。所以目前我們仍然只提供該指引區間，並對此感到安心。

And you have a follow-up have color?

你有後續問題要補充說明（color）嗎？

You spoke in the release also about the pipeline and you noted a relatively robust pipeline. Yeah, like a number of the transactions you did in the quarter, while they were relatively numerous were relatively small, I mean, total value in the $84 million (inaudible) including the July transaction what you're seeing in the pipeline in terms of like substantially large transactions? I mean particularly in light of $4.3 billion.

你們在新聞稿中也談到交易管線（pipeline），並提到管線相對強勁。是的，你們本季做了不少交易，但單筆規模相對較小；總價值約8,400萬美元（聽不清），包含7月那筆交易。就管線而言，你們看到的是像「相當大型」的交易嗎？我的意思是，特別是考量到你們有43億美元。

And -- maybe the other side of the question would be, I mean if you're not seeing really substantial [meaty] deals in the pipeline, if it's a lot more of the smaller transactions like you guys completed in Q2 and Q3 to date, is there a thought to perhaps considering a special dividend?

另外——也許從另一面來問：如果你們在管線中沒有看到真正非常「有份量」的大案子，而是更多像你們在第二季以及截至目前第三季完成的那些較小交易，你們是否會考慮例如發放特別股利？

Lawson, it's Ian speaking here. Thank you for the question. So it's a good question. What I would say is we're active across a range of development phases and deal sizes. You're right that during the quarter, the size did step down from the cadence and magnitude that you had seen in prior quarters. I don't think that's reflective of the pipeline going forward necessarily though.

Lawson，我是Ian。謝謝你的問題。這確實是個好問題。我想說的是，我們在不同開發階段與不同交易規模的機會上都很活躍。你說得對，本季交易規模相較於前幾季你所看到的節奏與量級確實有所下降。但我不認為這必然反映未來的管線狀況。

What I do see at the moment is a number of opportunities in project finance, which suits our financial backer strategy well. So we're hopeful that with time, we'll see more of those types of transactions come forward. And in terms of overall liquidity looking at the magnitude of the pipeline, I do feel comfortable at the stage that we're going to be able to deploy quite a bit of our capital before we have to think about any other ways to return it.

我目前看到的是一些專案融資（project finance）的機會，這很符合我們作為金融支持者（financial backer）的策略。因此我們希望隨著時間推進，會有更多這類交易浮現。至於整體流動性，考量管線的規模，我在這個階段相當有信心，我們能在必須思考其他資本回饋方式之前，先部署相當大一部分資金。

Okay. And then just -- so thinking about some of the larger transactions that you might have in the portfolio, can you help sort of narrow that down to a bit of a size range? Are we talking about $100 million size range? Or are there potential like [$1 billion] transactions in the pipeline?

好的。然後——就你們投資組合中可能出現的一些較大交易來看，你能否協助把規模範圍縮小一些？我們談的是約1億美元的規模嗎？或者管線中也可能有像[10億美元]這種等級的交易？

It's a wide range, as I highlighted, there are some significantly larger transactions, which are required to deploy the kind of capital that we've accumulated. So I think what you've seen over the last couple of years in terms of transactions is reflective of the potential we see in the pipeline going forward. So we were successful to going in the past, and I believe we'll be successful going forward.

範圍很廣。正如我剛才提到的，確實有一些規模顯著更大的交易，這些交易是部署我們累積資本所需要的。因此，我認為你在過去幾年看到的交易情況，反映了我們對未來管線所看到的潛力。我們過去能成功推進，我也相信未來會持續成功。

And then maybe just one final follow-up on the pipeline. To what extent would you describe the current pipeline as urgent? Or how would you describe the nose of the deals within the pipeline? Is this stuff you could see completed in Q3? Or are we looking at a longer time line, maybe looking out 12 to 18 months?

最後再追問一個關於管線的問題。你會在多大程度上把目前的管線形容為「急迫」？或者你會如何描述管線中交易的性質（tone）？這些交易有可能在第三季完成嗎？還是我們要看更長的時間軸，例如往後12到18個月？

Sure. Yeah. That's a good observation. What I would say is the alarm transactions tend to be a little bit lumpier. The timeline can be longer for those. So hard to kind of handicap exactly when deals are going to close. But I'd see the cadence perhaps just based on what I'm seeing now picking up later in the year and into next year.

當然。是的。這是個很好的觀察。我會說，較大型的交易通常會比較不均勻、呈現「一波一波」的特性。這類交易的時間線可能更長。因此很難精準判斷交易何時會完成。但就我目前看到的情況，交易節奏可能會在今年稍晚以及明年有所加快。

Daniel Major, UBS.

Daniel Major，瑞銀（UBS）。

Yeah. First question on just on Cobre Panamá. My understanding is First Quantum has sort of started or is imminently starting negotiations with the government on the fiscal terms to facilitate to restart. Have you had any engagement with the Panamanian government? Has there been any discussions around any potential changes to the economics of the stream?

是的。第一個問題是關於Cobre Panamá。我的理解是First Quantum已經開始、或即將開始與政府就財政條款進行談判，以促成重啟。你們是否曾與巴拿馬政府有任何接觸？是否有討論過串流（stream）經濟條件可能出現任何變更？

Daniel, it's Paul. Yeah, first quantum is the operator there. Their party that we'll engage with the government here. As you know, now formal negotiations yet, but we're not at that taking.

Daniel，我是Paul。對，First Quantum 是那邊的營運方。他們是我們在這裡會與政府接洽的那一方。如你所知，目前還沒有正式談判，但我們也還沒到那個階段。

Okay. So there's no discussion at this point of any potential changes to the fiscal terms as part of any negotiated or any settlement to start the mine?

好的。所以目前並沒有討論到，作為任何協商或任何和解的一部分，財政條款可能會有任何變更，以便啟動礦山？

No other.

沒有。

Okay. That's clear. My second question is on the Energy-diversified portfolio. You also highlighted the benefit from higher revenues and made a reference to the increase in the rig count in the US would you also expect to see any pickup in sales volumes on not on a GEO basis, but on a unit basis in the second half and potentially following through into 2027?

好的。很清楚。我的第二個問題是關於能源多元化投資組合。你也強調了較高收入帶來的好處，並提到美國鑽機數增加；你是否也預期在下半年（不是以 GEO 基礎，而是以單位基礎）銷售量會有所回升，並可能延續到 2027 年？

I'm hopeful that they will be. And my own estimation for the US plays, you need at least six months for people to change their growth programs. So Q2 is still too early. If you go six months ahead of that, our oil prices were probably still in the $60 ranges. So I expect back end of this year, as you see beginning of next year that you'll see those the higher drill as translating into production and for we'll see higher unit volumes as well.

我希望會。以我對美國頁岩區的估計，人們至少需要六個月才會調整他們的增長計畫。所以第二季仍然太早。如果往前推六個月，那時油價大概還在 60 美元區間。因此我預期在今年下半年、以及你會在明年初開始看到，較高的鑽探活動會轉化為產量，而我們也會看到更高的單位銷量。

Okay. So there's a potential tailwind independent of energy pricing into 2027 from a GEO basis?

好的。所以從 GEO 的角度來看，到 2027 年可能會有一個不受能源價格影響的順風？

Yes.

是的。

Oka, thanks. And then the next one, just thinking about a question on the project pipeline. New prosperity has been something you've mentioned on previous calls. Can you give us an update on the catalysts we should be looking for there?

好的，謝謝。接下來一題，我想問一下專案管線。New Prosperity 是你在之前電話會議中提過的。你能否更新一下，我們應該關注哪些催化劑？

Yes. We're talking for the arrangement that was set up. I think it's about a year ago now between the operator there and First Nations was that the potential that if the First Nations decides to go ahead with the mining operation that they would be -- they would have a 20% ownership of that.

可以。我們在談的是先前建立的安排。我想大概是一年前，當地的營運方與第一民族之間達成的安排是：如果第一民族決定推進採礦作業，他們將會——他們將擁有該項目 20% 的股權。

So it's that there is a land use planning process that is going on amongst the First Nations. There's no timeline to that. It's a bad determination but they and the BC government are working on that. So -- and hopefully will come to a positive conclusion. I can't put a timeline on it. So I think that is the outlook.

所以目前第一民族之間正在進行土地使用規劃程序。這件事沒有時間表。這是一個艱難的裁定，但他們與卑詩省政府正在推進。所以——希望能得到正面的結論。我無法給出時間表。我想這就是目前的展望。

Okay. Great. And one just very last quick one, if I may. I think Lundin mentioned the step down in the Candelaria stream around the end of this year. What quarter or can you give us any clear guidance on when you expect that to come through?

好的。很好。最後再快速問一題，如果可以的話。我想 Lundin 提到 Candelaria 的 stream 在今年年底左右會下調。你能否提供更明確的指引，預期會在哪一季反映出來？

So our estimate is first half of 2027. Obviously, depending upon how production goes at Candelaria for the remainder of '26. It could happen later this year. But for now, we're estimating first half of 2027.

我們的估計是在 2027 年上半年。當然，取決於 Candelaria 在 2026 年剩餘期間的產量表現。也可能在今年稍晚就發生。但目前我們估計是 2027 年上半年。

Tanya Jakusconek, Scotia Bank.

Scotia Bank 的 Tanya Jakusconek。

Sandip, can I start on just the revenue side? That was a bit light on the Oil and Gas but on the Energy side. So I'm just wondering on the Energy side, was there a little bit of a delay in sort of the pricing of Oil and sort of when you receive your revenue that shifted it into Q3. I'm just wondering why it was a bit light fire was a bit heavy on my side on the Oil side.

Sandip，我可以先從營收端開始嗎？在石油與天然氣（更廣義的能源）這一塊，數字有點偏低。所以我想問，在能源端是否有一點延遲——例如油價的定價與你們收到營收之間的時間差——把它移到第三季？我只是想知道為什麼能源端看起來有點偏低，因為我這邊在石油端的預估偏高。

Sure. Sure, Tanya. So part of that is just information in terms of production. There's a delay in receiving actual production data for the wells that's on our land. And so we do make an estimate. But in our nature, we do try to make sure that we're as accurate as possible lean more towards the conservative side. So wells that we're producing and the production data for say, May and June, we don't get the actual numbers still a few months later. So that's probably partly the reason why you were light. I'm sorry, it's too high.

當然。當然，Tanya。其中一部分只是資訊面、也就是產量資料的問題。我們在自有土地上的井，實際產量資料取得會有延遲。因此我們會先做估算。但就我們的作風，我們會盡量確保估算儘可能準確，並更偏向保守。所以像我們在生產的井，譬如 5 月和 6 月的產量資料，我們往往要再過幾個月才拿到實際數字。所以這可能部分解釋了你為什麼偏低——抱歉，是偏高。

Yeah, too high. And then the other area I was a bit too high on was also iron ore. So just wondering on Vale side. How should I be thinking about the second half? And then on subs on the PGMs. How should I be thinking about that?

對，偏高。另外一個我也偏高的領域是鐵礦石。所以想問一下 Vale 那邊。我應該如何看待下半年？另外在 PGMs（鉑族金屬）方面，我又該如何看待？

Sure, it's [Matt Davin]. On the iron ore, I think that is impacted in part by our estimate of the shipping rates is probably the largest variance there. I know that is also an accrual [it could] true up later in the -- in September, but probably the largest variance there is our estimation to read throughout the higher shipping rates caused by the [Strait of Hormuz] closure.

當然，這是[Matt Davin]。在鐵礦石方面，我認為部分影響來自我們對運費的估計，這可能是最大的差異來源。我知道那也屬於一項應計項目，[可能]會在——在 9 月再做調整，但最大的差異大概是我們對運費上升的估計，因為[荷姆茲海峽]關閉導致海運費率走高。

Okay. Should I be thinking that we have a better second half? Or what should -- how should I be thinking about that?

好的。那我是否應該預期下半年會更好？或者——我應該怎麼看待？

Yeah. I think you'd probably be a bit more flat absent the change in the kind of maritime rates.

是的。我想如果不考慮海運費率的變動，你可能會看到比較持平的表現。

Anything at the PGMs in February that had an impact.

PGMs 在 2 月有什麼事情造成影響嗎？

No. We have the stream there with Magna Mining. They actually did quite well in terms of their production for the first half of the year. On the PGMs, it's just lower production from Stillwater and the Sibanye assets than initially expected for the first part of this year.

沒有。我們在那裡與 Magna Mining 有一個 stream。他們在今年上半年產量表現其實相當不錯。至於 PGMs，主要是 Stillwater 與 Sibanye 資產的產量低於今年前段時間的初始預期。

Okay. And then if I could come back just maybe to capital allocation before I come back to just the transaction environment. Should -- how should I be thinking? Should decide to purchase back half the Côté Gold NPI, it'd be $500 million coming in for you guys. Would I be thinking as that something you would allocate to the dividend if something like that was to occur?

好的。然後在我回到交易環境之前，我想先回到資本配置。我應該怎麼想？如果他們決定回購 Côté Gold NPI 的一半，對你們來說會有 5 億美元的資金流入。如果發生這種情況，我是否應該認為你們會把它配置到股利上？

Tanya, if they do, do the buyback, obviously, that would be an influx of cash for us. As the team has highlighted, we're active on the deal pipeline front and we're not -- we've never been worried about having cash on the balance sheet. As we know, this is a very capital-intensive industry, and there's always a requirement for financing. But if we did come to that conclusion, it wouldn't be any sort of special dividend of that nature. It would just be looking at what's on our balance sheet in terms of cash and increasing the dividend at a higher percentage than we have been possibly previous years.

Tanya，如果他們真的進行回購，顯然那會為我們帶來一筆現金流入。正如團隊所強調的，我們在交易管線方面很積極，而且我們——我們從來不擔心資產負債表上持有現金。我們也知道，這是一個資本密集型產業，總是有融資需求。但如果我們真的走到那個結論，也不會是那種性質的特別股利。我們會只是看資產負債表上的現金狀況，並把股利提高到比過去幾年可能更高的增幅。

Okay. All right. And then maybe just on the deal transaction, Ian, you were saying it's quite varied. And again, I always divide the deals into two categories, the precious metal deals and then there's non-precious metals one. So maybe you can talk a little bit about sort of in the non-precious metal side, you had talked about value -- deals in the $200 million to $500 million range. Has that changed at all come from Q1? Or has anything changed in that area?

好的。好。接著可能就交易案來談，Ian，你剛才說情況相當多樣。而且我一向把交易分成兩類：貴金屬交易，以及非貴金屬交易。所以也許你可以稍微談一下，在非貴金屬這一邊，你提到以價值來看——交易規模大約在2億到5億美元之間。這跟第一季相比有任何改變嗎？或那個領域有任何變化嗎？

Yes, Tanya. Good question. I think that remains unchanged. It continues to be very active on the precious side, I highlight for you. The magnitude of potential transaction does vary as you see in the market, some can be very large. We like to maintain optionality when we see it at relatively low cost, and so we'll still do some of the smaller deals when we've got capacity. So pretty much steady as it goes.

是的，Tanya。問得好。我認為那部分維持不變。我想強調的是，貴金屬那邊仍然非常活躍。潛在交易的規模確實會如你在市場上看到的那樣有所不同，有些可能非常大。當我們以相對低成本看到可保留的選擇性時，我們喜歡保留彈性，因此在我們有額度的情況下，仍會做一些較小的交易。所以整體來說大致維持穩定。

Okay. But in the non-precious metals, is that $200 million to $500 million still valid?

好的。但在非貴金屬方面，2億到5億美元這個區間仍然適用嗎？

Yes.

是的。

Okay. So -- and in the precious metal side, we had talked previously about sort of these larger operators in the base metal side looking at streaming of gold and silver maybe. And we had looked at build mine builds. Anything changed there from Q1?

好的。那——在貴金屬方面，我們之前談到過，基本金屬領域的一些大型業者可能在看黃金和白銀的串流融資。我們也談過新礦建設。相較第一季，那邊有任何改變嗎？

Okay, I think it's very mainstream. Any CFO now has very seriously at streaming and royalties as an option to finance, including at the very large companies. So potential exists there, and we need liquidity to be able to execute on those appropriately.

好的，我認為這已經非常主流了。現在任何一位CFO都非常認真地把串流與權利金視為融資選項之一，包括非常大型的公司。因此那邊確實存在潛在機會，而我們需要流動性，才能在適當時機妥善執行。

The key theme, however, that I see in [Verge] Tanya, as I mentioned earlier, is project finance. We're seeing good impetus for new mines to be built. And our strategy, as you would have noticed, we've tilted towards banking teams to get projects built and we're looking to do that big and small.

不過，我在[Verge] Tanya 看到的關鍵主題，如我先前提到的，是專案融資。我們看到推動新礦建設的動能很強。而我們的策略——你應該也注意到了——我們更偏向與銀行團隊合作把專案建起來，我們希望大小案都能做。

And still the same thing, Ian, in terms of the string component plus an equity component and a debt component. Has anything else changed in the structure of these deals?

而且還是一樣，Ian，就串流部分加上股權部分與債務部分而言。這些交易的結構還有其他改變嗎？

No. I think you precisely got it. What we're trying to do is where there's acute need for capital, provide mix it smoother provides more confidence the team's got the backing they need to get a project built. And so we'll continue to work across the capital structure with the core [lever] continuing to be royalties and streams.

沒有。我想你說得非常精準。我們要做的是，在資金需求很迫切的地方，提供一個混合方案，使其更順暢，並讓團隊更有信心獲得建設專案所需的支持。因此我們會持續在資本結構各層面運作，而核心[lever]仍會是權利金與串流。

Brian Macarthur, Raymond James Financial.

Brian Macarthur，Raymond James Financial。

Most of my questions have been answered. But can I just ask on Karma whether there's any update? And secondly, if that stuff worked out. I assume the book value that's pretty low.

我的大部分問題都已經得到回答了。但我能否問一下Karma是否有任何最新進展？其次，如果那些事情都解決了。我猜帳面價值應該相當低。

Brian, it's Lloyd on here. There's no real update since we put out our press release. We are continuing to pursue our remedies under the agreement, which is governed by Ontario Law. We do believe that the Burkinabe judgment is not valid and are continuing to seek to have that vacated. In terms of book value, it's now we are not carrying any book value for that asset.

Brian，我是Lloyd。自從我們發布新聞稿以來，沒有什麼實質更新。我們仍在依協議持續尋求救濟，而該協議受安大略省法律管轄。我們確信布吉納法索的判決無效，並持續尋求撤銷該判決。至於帳面價值，目前我們對該資產不再計入任何帳面價值。

And maybe just one other question. This [lonely] deal, is that totally separate from G Mining and what are you actually trying to do with that to the extent that you can talk about it? And should I think about you doing more of these things?

也許再問一個問題。這個[lonely]交易，是否與G Mining完全分開？在你能談的範圍內，你們實際上想透過它達成什麼？我是否應該預期你們會做更多這類事情？

Brian, it's Paul. As you know, we've got a very strong relationship with the GenX back then in the build of Tocantinzinho. The -- one of the next ventures here is with Tintina. You would have seen that they have made an investment there.

Brian，我是Paul。如你所知，我們與GenX在Tocantinzinho的建設上一直有非常強的合作關係。這裡——接下來的其中一個新案子是與Tintina合作。你應該也看到他們已在那裡進行投資。

We also were included in that investment. It's a Copper World property down in Chile. Their objective was that they could invest in that without having to liquidate any of their shares in the G Mining Ventures. So we have back then in doing that. I'm sure it will be very successful, and we're hopeful that there will also be a stream opportunity on that asset in due course.

我們也參與了那筆投資。那是一個位於智利的Copper World礦權。他們的目標是能夠投資該項目，而不必出售他們在G Mining Ventures的任何持股。所以我們當時協助他們完成這件事。我相信這會非常成功，我們也希望未來適當時機，該資產也會有串流機會。

Sorry. So how do you just follow up? That was kind of my question. Do you -- by doing this had a first right or an option on a stream or royalty as to go forward? Is that like you're kind of buying on a the exploration dollars with a return and you're getting an option of that? Is that the way to think about it?

抱歉。那我追問一下？那其實就是我的問題。你們——透過這樣做，是否取得了未來串流或權利金的優先權或選擇權？這是否可理解為你們在勘探資金上投入，獲得回報，同時取得一個選擇權？可以這樣理解嗎？

There's no obligation there, Brian. We're just trying to -- we've got a very strong relationship, and we hope this helps build the relationship and that positions us well.

沒有任何義務，Brian。我們只是想——我們有非常強的合作關係，我們希望這能有助於深化關係，並讓我們處於更有利的位置。

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

電話線上沒有其他問題。我現在把問答環節交給Bonavie，由他接收網路直播的提問。

Thank you, Andis. There are no questions from the webcast. This concludes our second-quarter 2026 conference call and webcast. We expect to release our Q3 2026 results after market close on November 10. The conference call held the following morning. Thank you for your interest in Franco-Nevada.

謝謝你，Andis。網路直播沒有提問。本次2026年第二季電話會議與網路直播到此結束。我們預計在11月10日收盤後發布2026年第三季業績。電話會議將於隔天早上舉行。感謝各位對Franco-Nevada的關注。

Ladies and gentlemen, this concludes your conference call for today. We participating and ask that you please disconnect your lines. Have a great day.

各位女士先生，今天的電話會議到此結束。感謝各位參與，並請掛斷電話線。祝各位有美好的一天。