6-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934

For the month of August 2019

Commission File Number 001-35286

FRANCO-NEVADA CORPORATION

(Translation of registrant’s name into English)

199 Bay Street, Suite 2000, P.O. Box 285, Commerce Court Postal Station, Toronto, Ontario, Canada M5L 1G9

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F

Form 20-F   ☐ Form 40-F   ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

The information contained in Exhibits 99.2 and 99.3 of this Form 6-K are hereby incorporated by reference into the registrant’s following registration statements on Form F-3 (file no. 333-225687), on Form S-8 (file no. 333-176856) and on Form F-10 (file no. 333-225268).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FRANCO-NEVADA CORPORATION
	/s/ Lloyd Hong
Date: August 7, 2019	Lloyd Hong
	Chief Legal Officer & Corporate Secretary

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INDEX TO EXHIBITS

99.1	Press Release dated August 7, 2019 – Franco-Nevada Reports Strong Q2 Results
99.2	Management’s Discussion and Analysis for the three and six months ended June 30, 2019
99.3	Interim Consolidated Financial Statements for the three and six months ended  June 30, 2019
99.4	Certification of Chief Executive Officer
99.5	Certification of Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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EX-99.1

Exhibit 99.1

NEWS RELEASE

Toronto, August 7, 2019

(in U.S. dollars unless otherwise noted)

Franco-Nevada Reports Strong Q2 Results

Cobre Panama first deliveries received subsequent to quarter end

“Franco-Nevada had a strong second quarter and a record first half of the year in terms of revenue, EBITDA and net income” stated David Harquail, CEO.  “Subsequent to quarter end, we started to receive our first gold and silver stream ounces from Cobre Panama.  The project is ramping up well and we have increased our expectations from Cobre Panama this year.  As a result, we expect GEOs delivered to be towards the upper end of our previously announced guidance.  In early July, we added to our energy interests with the purchase of a 1% royalty in the Marcellus.  This is immediately accretive to our energy revenues and our energy revenue guidance for the year has also been increased.  Franco-Nevada expects to have a strong second half with a growing revenue outlook over the next five years.”

Q2/2019 Financial Highlights

· 107,774 Gold Equivalent Ounces (“GEOs”) sold

· $170.5 million in revenue 

· $64.0 million of Net Income and Adjusted Net Income, or $0.34 per share

· $25.6 million in Cash Costs, or $238 per GEO

· $137.9 million of Adjusted EBITDA,  or $0.74 per share

Revenue and GEOs by Asset Categories
	Q2/2019			Q2/2018
	GEOs	Revenue		GEOs	Revenue
	#	(in millions)		#	(in millions)
Gold	80,606		$ 105.9	83,870		$ 108.6
Silver	12,278		16.6	14,147		18.1
PGMs	10,540		14.7	7,546		9.6
Other Mining Assets	4,350		5.7	1,770		2.3
Mining	107,774		$ 142.9	107,333		$ 138.6
Energy	—		27.6	—		22.7
	107,774		$ 170.5	107,333		$ 161.3

For Q2/2019, revenue was sourced  83.8%  from gold and gold equivalents (62.2% gold, 9.7% silver, 8.6% PGM and 3.3% other mining assets) and 16.2% from energy (oil, gas and NGLs). The portfolio is actively managed to maintain a focus on precious metals (gold, silver and PGM) with a target of no more than 20% from energy.  Geographically, revenue was sourced 80.1% from the Americas  (35.7% Latin America, 21.1% U.S. and 23.3% Canada).

Corporate Updates

· Marcellus:    On July 22, 2019, Franco-Nevada acquired from Range Resources Corporation a 1% overriding royalty interest on approximately 350,000 acres in the Marcellus for a gross purchase price of $300 million. The royalty applies to existing production and future development from the Marcellus formation as well as future potential development from the Utica and Upper Devonian formations.    

Since the effective date of March 1, 2019 and the closing date, the royalty has generated approximately $9 million in revenue, with roughly half of the revenue generated from natural gas liquids and condensate. At current commodity prices, revenue for 2020 is expected to be approximately $25 million growing to approximately $30 million per annum in five years.

· 2019 Guidance:    Based on the strong results year to date and the increase in expected deliveries from Cobre Panama, Franco-Nevada now expects 2019 GEO deliveries to be at the higher end of the previously announced guidance range of 465,000 to 500,000 GEOs.  To reflect the addition of the Marcellus royalty and continued strong performance of the energy assets, Franco-Nevada now expects to generate $100 to $115 million in revenue from the energy portfolio for 2019 versus $70 to $85 million previously.  This guidance assumes a WTI oil price of $55 per barrel and a Henry Hub natural gas price of $2.40 per mcf for the remainder of 2019.

· At-the-Market Equity Program:  Franco-Nevada has established an at-the-market program (the “ATM Program”) that allows the Corporation to issue up to $200 million worth of common shares from treasury to the public from time to time at the prevailing market price through the Toronto Stock Exchange, the New York Stock Exchange or any other marketplace on which the common shares are listed, quoted or otherwise trade. The volume and timing of distributions under the ATM Program, if any, will be determined at the Corporation’s sole discretion, subject to applicable regulatory limitations. The ATM Program will be effective until July 18, 2020, unless terminated prior to such date by the Corporation.   

Q2/2019 Portfolio Updates

· Gold Equivalent Ounces:

· GEOs sold for the quarter were 107,774, essentially unchanged from the 107,333 sold in Q2/2018.  Candelaria, Stillwater, Goldstrike, Brucejack, Tasiast and Subika had higher deliveries year-over-year which were largely offset by lower contributions from Guadalupe-Palmarejo, Antapaccay, Antamina, FireCreek/Midas and Bald Mountain.

Latin America:

· Cobre Panama (gold and silver stream)  – Franco-Nevada received its first gold and silver stream ounces in early July, subsequent to quarter end.  Deliveries are expected to ramp-up and be the major growth driver for the second half of the year.  First Quantum reiterated its guidance of 140,000 – 175,000 tonnes of copper for 2019.

· Candelaria (gold and silver stream) – GEOs earned from Candelaria in the quarter were higher year-over-year.  Production is expected to be higher in the second half as ore is sourced directly from the open pit and less from the low grade stockpile as well as the continued development of the Candelaria Underground South Sector.    

· Guadalupe-Palmarejo (50% gold stream) – GEOs sold in Q2/2019 were down year-over-year as less mining occurred on Franco-Nevada stream lands. Development at the La Nación deposit, located between the Independencia and Guadalupe mines and predominantly on stream lands, remains on schedule with production expected in the second half of 2019.

· Antapaccay (gold and silver stream) – GEOs from Antapaccay were lower year-over-year as expected from the life of mine plan.  Timing of deliveries also negatively impacted sales for the quarter.

· Antamina (22.5% silver stream) – GEOs earned from Antamina were lower year-over-year as expected from the life of mine plan.  

· Cerro Moro (2% royalty) – Cerro Moro deliveries increased in Q2/2019 as only a partial quarter’s deliveries  were received in Q2/2018.  Cerro Moro continues to pursue an aggressive drill program in 2019 to delineate near-mine targets in order to extend the mine life.    

U.S.:

· Stillwater (5% royalty) – Stillwater benefitted from a strong quarter as volumes increased due to the continued ramp-up of the Blitz project as well as higher palladium prices.  The Blitz project is anticipated to increase total PGM production from Stillwater to approximately 850,000 ounces per year by late 2021 or early 2022.

· Bald Mountain (0.875-5% royalty) – Bald Mountain revenue was down significantly year-over-year as mining transitioned away from royalty ground and production decreased as expected from an exceptionally strong 2018.

· Goldstrike (2-4% royalty & 2.4-6% NPI); Gold Quarry (7.29% royalty)  – Barrick and Newmont’s joint venture in Nevada may reprioritize ore sources to various processing plants.  Synergies could positively impact the NPI at Goldstrike.

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· Fire Creek/Midas (2.5% royalty);  Hollister (3-5% royalty) – The fixed delivery requirement for Fire Creek/Midas was met in 2018.  Hecla announced in June 2019 an updated plan for its Nevada operations which includes mining the currently developed portion of Fire Creek, mining at Midas for the balance of the year and shutting down the Hollister mine.  Exploration will continue on the Hatter Graben deposit at Hollister but at a reduced rate.

· Rosemont (1.5% royalty) – Hudbay announced in March 2019 the receipt of the final key federal permit allowing the company to advance Rosemont towards construction.  In August 2019, the U.S. District Court of Arizona overturned the issuance of the Final Record of Decision from 2017 and as a result, Hudbay may not proceed with construction at this time.  Hudbay stated that it intends to appeal the decision.  Franco-Nevada’s royalty is on all metals produced. 

· South Arturo (4-9% royalty) – Joint venture operators Barrick and Premier Gold continue to advance the construction of the El Nino underground and Phase 1 open pit.  A small amount of production is expected in 2019 with more meaningful production expected in 2020.

Canada:

· Brucejack (1.2% royalty) – The mine passed the 503,386 gold ounce production threshold in December 2018 which triggered the start of royalty payments to Franco-Nevada.  Pretium provided an updated mine plan for the Brucejack operation in April 2019.  The updated plan assumes average annual production of over 525,000 ounces of gold over the first 10 years and over 440,000 ounces of gold per year over the 14-year mine life.

· Sudbury (50% precious metals stream) – KGHM announced that it has resumed mining the PM zone at the McCreedy mine which contains higher grade precious metal ore.  As part of the revised arrangements with KGHM, Franco-Nevada agreed to increase its ongoing cost to $800 per GEO delivered from McCreedy until December 31, 2021.  The increase in deliveries from McCreedy will be partially offset going forward as the Levack mine has been placed on care and maintenance.

· Musselwhite (5% NPI) – An underground fire at the end of March 2019 caused the operation to be suspended.  Newmont Goldcorp, the new operator, expects the mine to resume full operations in mid-2020.    The focus for the remainder of the year will be on replacing the conveyor system and to progress development work.

· Canadian Malartic (1.5%  royalty) – Exploration programs continue to evaluate several deposits to the east of the Canadian Malartic open pit which have the potential to provide new sources of ore for the Canadian Malartic mill.  These are mostly underground zones, some of which are partially covered by our royalty.

· Kirkland Lake (1.5-5.5% royalty & 20% NPI)  – Kirkland Lake continues to advance the construction of the #4 Shaft at the Macassa mine.  Kirkland Lake has a goal of increasing production at Macassa to over 400,000 ounces per year over the next 5 to 7 years.  Underground drilling continues to expand the South Mine Complex.

· Golden Highway (0.25–10% royalty) – Franco-Nevada and Kirkland Lake amended the royalty agreement on the Holloway property to a fixed 3% NSR versus the previous sliding scale royalty.

Rest of World:

· Subika (2% royalty) – Newmont declared commercial production at the Subika Underground in Q4/2018.  The second major project, the Ahafo Mill expansion, is expected to have first production in Q3/2019 and achieve commercial production by Q4/2019, a slight delay from previous estimates.

· Tasiast (2% royalty) – The Phase One (12,000 tpd) expansion is complete.  Phase Two activities are paused as Kinross continues to analyze expansion options and engage in discussions with the Government of Mauritania.

· Duketon (2% royalty) – Regis Resources commenced underground development below the current Rosemont open pit and delineated a maiden mineral reserve for this additional deposit of 123,000 ounces.

· Ity (1–1.5% royalty)  – Franco-Nevada has a 1.5% royalty on the project until 35 tonnes of gold are produced.  With Endeavour’s increased production forecast for 2019, this threshold may be met by the end of the year.

· Energy:  

· Revenue from the energy assets increased to $27.6 million in Q2/2019 compared to $22.7 million in Q2/2018,  reflecting contributions from new investments in the SCOOP/STACK by the Royalty Acquisition Venture with Continental but offset by lower commodity prices versus the same period a year ago.

U.S.:

· SCOOP/STACK (Continental) (Royalty Acquisition Venture)  –The Royalty Acquisition Venture is having good success acquiring additional royalties.    In Q2/2019, Franco-Nevada contributed $35.1 million to the Royalty Acquisition Venture and its remaining commitment over the next three years is $171.7 million. Revenue in  Q2/2019 totalled $5.0 million.

· SCOOP/STACK (Other) (various royalty rates) – These assets generated $1.9 million in revenue in Q2/2019 versus $3.3 million in Q2/2018. Payment for a number of new wells was received after quarter-end which will contribute to revenue in Q3/2019.

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· Permian Basin (various royalty rates) – Franco-Nevada’s interests in the Permian Basin earned revenue of $4.9 million in Q2/2019 versus $6.2 million in Q2/2018, reflecting a natural decline in some high-royalty interest wells that had come online in the same period last year as well as a decrease in realized gas prices as a result of transportation bottlenecks out of the basin.

Canada:

· Weyburn (NRI, ORR, WI)  – Weyburn contributed $10.5 million in revenue in Q2/2019 versus $10.2 million in Q2/2018.    Revenues and production in the quarter were generally in-line with the same period in 2018.

· Orion (4% GORR) – Orion generated  $3.2 million in revenue in Q2/2019 versus $0.9 million in Q2/2018.  Revenues were significantly higher as a result of increased production volumes from the asset and a recovery in price differentials for heavy oil resulting from government-mandated volume curtailments.

Dividend Declaration

Franco-Nevada is pleased to announce that its board of directors has declared a quarterly dividend of $0.25 per share.  The dividend will be paid on September 26, 2019 to shareholders of record on September 12, 2019 (the “Record Date”).  The Canadian dollar equivalent is to be determined based on the daily average rate posted by the Bank of Canada on the Record Date.  Under Canadian tax legislation, Canadian resident individuals who receive “eligible dividends” are entitled to an enhanced gross-up and dividend tax credit on such dividends.

The Company has a Dividend Reinvestment Plan (the “DRIP”). Participation in the DRIP is optional. The Company will issue additional common shares through treasury at a 3% discount to the Average Market Price, as defined in the DRIP. However, the Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. The DRIP and enrollment forms are available on the Company’s website at www.franco-nevada.com. Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent’s self-service web portal at www.investorcentre.com/franco-nevada. Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment.  In 2018, the Company amended and restated the DRIP to allow for certain non-Canadian and non-U.S. shareholders to participate in the DRIP, subject to the satisfaction of certain conditions.  Non-Canadian and non-U.S. shareholders should contact the Company to determine whether they satisfy the necessary conditions to participate in the DRIP.

This press release is not an offer to sell or a solicitation of an offer of securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company’s profile on the U.S. Securities and Exchange Commission’s website at www.sec.gov.

Shareholder Information

The complete Consolidated Interim Financial Statements and Management’s Discussion and Analysis can be found today on Franco‑Nevada’s website at www.franco-nevada.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Management will host a conference call tomorrow, Thursday,  August 8, 2019 at 10:00 a.m. Eastern Time to review Franco‑Nevada’s Q2/2019 results.

Interested investors are invited to participate as follows:

· Via Conference Call: Toll-Free: (888) 390-0546; International: (416)  764-8688

· Conference Call Replay until Aug 15: Toll-Free (888)  390-0541;  International (416) 764-8677;  Code 868627#

· Webcast: A live audio webcast will be accessible at www.franco-nevada.com

Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and stream company with the largest and most diversified portfolio of cash-flow producing assets.  Its business model provides investors with gold price and exploration optionality while limiting exposure to many of the risks of operating companies.  Franco-Nevada has a strong balance sheet and uses its free cash flow to expand its portfolio and pay dividends.  It trades under the symbol FNV on both the Toronto and New York stock exchanges.  Franco-Nevada is the gold investment that works.

For more information, please go to our website at www.franco-nevada.com or contact:

Stefan Axell	Sandip Rana
Director, Corporate Affairs	Chief Financial Officer
(416) 306-6328	(416) 306-6303
info@franco-nevada.com

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Forward Looking Statements

This press release contains “forward looking information” and “forward looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management’s expectations regarding Franco-Nevada’s growth, results of operations, estimated future revenues, carrying value of assets, future dividends and requirements for additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, audits being conducted by the Canada Revenue Agency and available remedies, the remedies relating to and consequences of the ruling of the Supreme Court of Panama in relation to the Cobre Panama project, the aggregate value of Common Shares which may be issued pursuant to the ATM Program and the Corporation’s expected use of the net proceeds of the ATM Program, if any. In addition, statements (including data in tables) relating to reserves and resources and gold equivalent ounces (“GEOs”) are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources and GEOs will be realized. Such forward looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. A number of factors could cause actual events or results to differ materially from any forward looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Corporation is determined to have “passive foreign investment company” (“PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious diseases; and the integration of acquired assets. The forward looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Corporation’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward looking statements are not guarantees of future performance. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements and investors should not place undue reliance on forward looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Franco-Nevada’s most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada’s most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.

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NON-IFRS MEASURES:  Cash Costs, Adjusted EBITDA, and Adjusted Net Income are intended to provide additional information only and do not have any standardized meaning prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.  These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.  Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRS measures, please see below or the Company’s current MD&A disclosure found on the Company’s website, on SEDAR and on EDGAR. Comparative information has been recalculated to conform to current presentation.

1 GEOs include our gold, silver, platinum, palladium and other mining assets. GEOs are estimated on a gross basis for NSR royalties and, in the case of stream ounces, before the payment of the per ounce contractual price paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Platinum, palladium, silver and other minerals are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. The gold price used in the computation of GEOs earned from a particular asset varies depending on the royalty or stream agreement, which may make reference to the market price realized by the operator, or the average for the month, quarter, or year in which the mineral was produced or sold. For Q2/2019, the average commodity prices were as follows: $1,310 gold (Q2/2018 - $1,306), $14.89 silver (Q2/2018 - $16.57), $842 platinum (Q2/2018 - $904) and $1,388 palladium (Q2/2018 - $979). For H1/2019, the average commodity prices were as follows: $1,307 gold  (H1/2018 - $1,318), $15.23 silver (H1/2018 - $16.65), $833 platinum (H1/2018 - $941) and $1,435 palladium  (H1/2018 - $1,008).

2 Cash Costs attributable to GEO production and Cash Costs per GEO are non-IFRS financial measures. Cash Costs attributable to GEO production is calculated by starting with total costs of sales and excluding depletion and depreciation, costs not attributable to GEO production such as our Energy operating costs, and other non-cash costs of sales such as costs related to our prepaid gold purchase agreement. Cash Costs is then divided by GEOs sold, excluding prepaid ounces, to arrive at Cash Costs per GEO.

3 Adjusted EBITDA and Adjusted EBITDA per share are non-IFRS financial measures, which exclude the following from net income and earnings per share (“EPS”): income tax expense/recovery; finance expenses; finance income; depletion and depreciation; non-cash costs of sales; impairment charges related to royalty, stream and working interests and investments; gains/losses on sale of royalty interests; gains/losses on investments; and foreign exchange gains/losses and other income/expenses.

4 Adjusted Net Income and Adjusted Net Income per share are non-IFRS financial measures, which exclude the following from net income and EPS: foreign exchange gains/losses and other income/expenses; impairment charges related to royalty, stream and working interests and investments; gains/losses on sale of royalty interests;  gains/losses on investments; unusual non-recurring items; and the impact of income taxes on these items.

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Reconciliation to IFRS measures:

	For the three months ended				For the six months ended
	June 30,				June 30,
(expressed in millions, except per GEO amounts)	2019		2018		2019		2018
Total costs of sales	$	86.3	$	89.4	$	179.6	$	180.2
Depletion and depreciation		(58.9)		(59.6)		(119.8)		(120.2)
Energy operating costs		(1.8)		(1.5)		(3.2)		(2.5)
Non-cash costs of sales		—		(1.8)		—		(3.7)
Cash Costs attributable to GEO production	$	25.6	$	26.5	$	56.6	$	53.8
GEOs, excluding prepaid ounces		107,774		105,333		229,823		218,837
Cash Costs per GEO	$	238	$	252	$	246	$	246

	For the three months ended				For the six months ended
	June 30,				June 30,
(expressed in millions, except per share amounts)	2019		2018		2019		2018
Net Income	$	64.0	$	53.6	$	129.2	$	118.2
Income tax expense		13.7		11.1		26.7		24.6
Finance expenses		2.5		0.8		5.0		1.7
Finance income		(1.2)		(0.7)		(1.9)		(1.7)
Depletion and depreciation		58.9		59.6		119.8		120.2
Non-cash costs of sales		—		1.8		—		3.7
Foreign exchange (gains)/losses and other (income)/expenses		—		0.1		—		(0.5)
Adjusted EBITDA	$	137.9	$	126.3	$	278.8	$	266.2
Basic weighted average shares outstanding		187.2		186.0		187.1		186.0
Adjusted EBITDA per share	$	0.74	$	0.68	$	1.49	$	1.43

	For the three months ended				For the six months ended
	June 30,				June 30,
(expressed in millions, except per share amounts)	2019		2018		2019		2018
Net Income	$	64.0	$	53.6	$	129.2	$	118.2
Foreign exchange (gains)/losses and other (income)/expenses		—		0.1		—		(0.5)
Tax effect of adjustments		—		—		—		(0.1)
Adjusted Net Income	$	64.0	$	53.7	$	129.2	$	117.6
Basic weighted average shares outstanding		187.2		186.0		187.1		186.0
Adjusted Net Income per share	$	0.34	$	0.29	$	0.69	$	0.63

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FRANCO-NEVADA CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(unaudited, in millions of U.S. dollars)

	At June 30,		At December 31,
	2019		2018
ASSETS
Cash and cash equivalents (Note 4)	$	398.9	$	69.7
Receivables		70.8		75.5
Investments (Note 5)		33.4		—
Prepaid expenses and other (Note 6)		37.1		33.3
Current assets	$	540.2	$	178.5
Royalty, stream and working interests, net (Note 7)	$	4,595.8	$	4,555.6
Long-term investments (Note 5)		192.8		169.7
Deferred income tax assets		16.9		17.3
Other assets (Note 8)		13.0		10.7
Total assets	$	5,358.7	$	4,931.8
LIABILITIES
Accounts payable and accrued liabilities	$	39.1	$	23.6
Debt (Note 9)		160.0		—
Current income tax liabilities		2.9		1.4
Current liabilities	$	202.0	$	25.0
Lease liabilities	$	2.8	$	—
Long-term debt (Note 9)		272.2		207.6
Deferred income tax liabilities		81.4		67.3
Total liabilities	$	558.4	$	299.9
SHAREHOLDERS’ EQUITY(Note 15)
Share capital	$	5,210.9	$	5,158.3
Contributed surplus		17.8		15.6
Deficit		(286.1)		(321.7)
Accumulated other comprehensive loss		(142.2)		(220.3)
Total shareholders’ equity	$	4,800.4		4,631.9
Total liabilities and shareholders’ equity	$	5,358.8	$	4,931.8
Contingencies(Note 19)
Subsequent events(Note 20)

The accompanying notes are an integral part of these consolidated financial statements and can be found in our Q2/2019 Report available on our website

8

FRANCO-NEVADA CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(unaudited, in millions of U.S. dollars, except per share amounts)

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Revenue(Note 10)	$	170.5	$	161.3	$	350.3	$	334.4
Costs of sales
Costs of sales (Note 11)	$	27.4		29.8	$	59.8	$	60.0
Depletion and depreciation		58.9		59.6		119.8		120.2
Total costs of sales	$	86.3		89.4	$	179.6	$	180.2
Gross profit	$	84.2		71.9	$	170.7	$	154.2
Other operating expenses (income)
General and administrative expenses	$	5.6		7.0	$	12.5	$	12.2
Gain on sale of gold bullion		(0.4)		—		(0.8)		(0.3)
Total other operating expenses (income)	$	5.2		7.0	$	11.7	$	11.9
Operating income	$	79.0		64.9	$	159.0	$	142.3
Foreign exchange gain and other income (expenses)	$	—		(0.1)	$	—	$	0.5
Income before finance items and income taxes	$	79.0		64.8	$	159.0	$	142.8
Finance items (Note 13)
Finance income	$	1.2		0.7	$	1.9	$	1.7
Finance expenses		(2.5)		(0.8)		(5.0)		(1.7)
Net income before income taxes	$	77.7		64.7	$	155.9	$	142.8
Income tax expense (Note 14)		13.7		11.1		26.7		24.6
Net income	$	64.0	$	53.6	$	129.2	$	118.2
Earnings per share (Note 16)
Basic	$	0.34	$	0.29	$	0.69	$	0.64
Diluted	$	0.34	$	0.29	$	0.69	$	0.63
Weighted average number of shares outstanding (Note 16)
Basic		187.2		186.0		187.1		186.0
Diluted		187.5		186.3		187.4		186.3
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit and loss:
Currency translation adjustment	$	14.1		(17.3)	$	28.1	$	(40.5)
Items that will not be reclassified subsequently to profit and loss:
Changes in the fair value of equity investments at fair value through
other comprehensive income ("FVTOCI"), net of income tax (Note 5)		24.8		10.4		47.7		(15.3)
Other comprehensive income (loss)	$	38.9		(6.9)	$	75.8	$	(55.8)
Comprehensive income	$	102.9	$	46.7	$	205.0	$	62.4

The accompanying notes are an integral part of these consolidated financial statements and can be found in our Q2/2019 Report available on our website

9

FRANCO-NEVADA CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions of U.S. dollars)

	For the six months ended
	June 30,
	2019		2018
Cash flows from operating activities
Net income	$	129.2	$	118.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depletion and depreciation		119.8		120.2
Non-cash costs of sales		—		3.7
Share-based payments		2.6		2.6
Unrealized foreign exchange gain		(0.1)		(0.1)
Deferred income tax expense		5.3		11.8
Other non-cash items		(1.9)		(0.6)
Acquisition of gold bullion		(15.6)		(13.3)
Proceeds from sale of gold bullion		17.9		6.3
Operating cash flows before changes in non-cash working capital	$	257.2	$	248.8
Changes in non-cash working capital:
Decrease in receivables	$	4.7	$	3.6
Increase in prepaid expenses and other		(5.4)		(2.5)
Increase (decrease) in current liabilities		6.2		(1.1)
Net cash provided by operating activities	$	262.7	$	248.8
Cash flows from investing activities
Acquisition of royalty, stream and working interests	$	(95.6)	$	(613.4)
Acquisition of energy well equipment		(0.5)		(0.6)
Proceeds from sale of investments		6.3		—
Net cash used in investing activities	$	(89.8)	$	(614.0)
Cash flows from financing activities
Proceeds from draw of term loan	$	160.0	$	—
Proceeds from draw of credit facilities		275.0		—
Repayment of credit facilities		(210.0)		—
Credit facility amendment costs		(0.8)		(0.5)
Payment of dividends		(70.0)		(70.6)
Proceeds from exercise of stock options		2.5		—
Net cash provided by (used in) financing activities	$	156.7	$	(71.1)
Effect of exchange rate changes on cash and cash equivalents	$	(0.4)	$	(2.7)
Net change in cash and cash equivalents	$	329.2	$	(439.0)
Cash and cash equivalents at beginning of period	$	69.7	$	511.1
Cash and cash equivalents at end of period	$	398.9	$	72.1
Supplemental cash flow information:
Cash paid for interest expense and loan standby fees	$	4.4	$	1.1
Income taxes paid	$	25.1	$	16.0

The accompanying notes are an integral part of these consolidated financial statements and can be found in our Q2/2019 Report available on our website

10

EX-99.2

	
		
			fnv_Ex99_2
		
	
	

EX-99.3

	
		
			fnv_Ex99_3
		
	
	

EX-99.4

	
		
			fnv_Ex99_4
		
	
	

EX-99.5

Exhibit 99.5

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Sandip Rana, Chief Financial Officer of Franco-Nevada Corporation, certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Franco-Nevada Corporation (the “issuer”) for the interim period ended June 30, 2019.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings:

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that:

(i)  material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1  Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control — Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

5.2 N/A

5.3 N/A

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2019 and ended on June 30, 2019 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 7, 2019

(signed) Sandip Rana

Sandip Rana, Chief Financial Officer

Franco-Nevada Corporation

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Document and Entity Information	6 Months Ended
	Jun. 30, 2019
Document and Entity Information
Entity Registrant Name	FRANCO NEVADA Corp
Entity Central Index Key	0001456346
Document Type	6-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents (Note 4)	$ 398.9	$ 69.7
Receivables	70.8	75.5
Investments (Note 5)	33.4
Prepaid expenses and other (Note 6)	37.1	33.3
Current assets	540.2	178.5
Royalty, stream and working interests, net (Note 7)	4,595.8	4,555.6
Long-term investments (Note 5)	192.8	169.7
Deferred income tax assets	16.9	17.3
Other assets (Note 8)	13.0	10.7
Total assets	5,358.7	4,931.8
LIABILITIES
Accounts payable and accrued liabilities	39.1	23.6
Debt (Note 9)	160.0
Current income tax liabilities	2.9	1.4
Current liabilities	202.0	25.0
Lease liabilities	2.8
Long-term debt (Note 9)	272.2	207.6
Deferred income tax liabilities	81.4	67.3
Total liabilities	558.4	299.9
SHAREHOLDERS' EQUITY (Note 15)
Share capital	5,210.9	5,158.3
Contributed surplus	17.8	15.6
Deficit	(286.1)	(321.7)
Accumulated other comprehensive loss	(142.2)	(220.3)
Total shareholders' equity	4,800.4	4,631.9
Total liabilities and shareholders' equity	$ 5,358.8	$ 4,931.8

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Revenue (Note 10)	$ 170.5	$ 161.3	$ 350.3	$ 334.4
Costs of sales
Costs of sales (Note 11)	27.4	29.8	59.8	60.0
Depletion and depreciation	58.9	59.6	119.8	120.2
Total costs of sales	86.3	89.4	179.6	180.2
Gross profit	84.2	71.9	170.7	154.2
Other operating expenses (income)
General and administrative expenses	5.6	7.0	12.5	12.2
Gain on sale of gold bullion	(0.4)		(0.8)	(0.3)
Total other operating expenses (income)	5.2	7.0	11.7	11.9
Operating income	79.0	64.9	159.0	142.3
Foreign exchange gain and other income (expenses)		(0.1)		0.5
Income before finance items and income taxes	79.0	64.8	159.0	142.8
Finance items (Note 13)
Finance income	1.2	0.7	1.9	1.7
Finance expenses	(2.5)	(0.8)	(5.0)	(1.7)
Net income before income taxes	77.7	64.7	155.9	142.8
Income tax expense (Note 14)	13.7	11.1	26.7	24.6
Net income	$ 64.0	$ 53.6	$ 129.2	$ 118.2
Basic earnings per share (Note 16) (in dollars per share)	$ 0.34	$ 0.29	$ 0.69	$ 0.64
Diluted earnings per share (Note 16) (in dollars per share)	$ 0.34	$ 0.29	$ 0.69	$ 0.63
Weighted average number of shares outstanding (Note 16)	187.2	186.0	187.1	186.0
Weighted average number of shares outstanding (Note 16)	187.5	186.3	187.4	186.3
Items that may be reclassified subsequently to profit and loss:
Currency translation adjustment	$ 14.1	$ (17.3)	$ 28.1	$ (40.5)
Items that will not be reclassified subsequently to profit and loss
Changes in the fair value of equity investments at fair value through	24.8	10.4	47.7	(15.3)
other comprehensive income ("FVTOCI"), net of income tax (Note 5)	38.9	(6.9)	75.8	(55.8)
Comprehensive income	$ 102.9	$ 46.7	$ 205.0	$ 62.4

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 129.2	$ 118.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depletion and depreciation	119.8	120.2
Non-cash costs of sales		3.7
Share-based payments	2.6	2.6
Unrealized foreign exchange gain	(0.1)	(0.1)
Deferred income tax expense	5.3	11.8
Other non-cash items	(1.9)	(0.6)
Acquisition of gold bullion	(15.6)	(13.3)
Proceeds from sale of gold bullion	17.9	6.3
Operating cash flows before changes in non-cash working capital	257.2	248.8
Changes in non-cash working capital:
Decrease in receivables	4.7	3.6
Increase in prepaid expenses and other	(5.4)	(2.5)
Increase (decrease) in current liabilities	6.2	(1.1)
Net cash provided by operating activities	262.7	248.8
Cash flows from investing activities
Acquisition of royalty, stream and working interests	(95.6)	(613.4)
Acquisition of energy well equipment	(0.5)	(0.6)
Proceeds from sale of investments	6.3
Net cash used in investing activities	(89.8)	(614.0)
Cash flows from financing activities
Proceeds from draw of term loan	160.0
Proceeds from draw of credit facilities	275.0
Repayment of credit facilities	(210.0)
Credit facility amendment costs	(0.8)	(0.5)
Payment of dividends	(70.0)	(70.6)
Proceeds from exercise of stock options	2.5
Net cash provided by (used in) financing activities	156.7	(71.1)
Effect of exchange rate changes on cash and cash equivalents	(0.4)	(2.7)
Net change in cash and cash equivalents	329.2	(439.0)
Cash and cash equivalents at beginning of period	69.7	511.1
Cash and cash equivalents at end of period	398.9	72.1
Supplemental cash flow information:
Cash paid for interest expense and loan standby fees	4.4	1.1
Income taxes paid	$ 25.1	$ 16.0

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Share Capital (Note 15)	Contributed Surplus	Accumulated Other Comprehensive Income (Loss)	Deficit	Total
Balance at beginning of period at Dec. 31, 2017	$ 5,107.8	$ 14.2	$ (133.6)	$ (282.9)	$ 4,705.5
Net income				118.2	118.2
Other comprehensive loss (income)			(55.8)		(55.8)
Total comprehensive income					62.4
Share-based payments		2.9			2.9
Dividend reinvestment plan	17.3				17.3
Dividends declared				(87.9)	(87.9)
Balance at end of period at Jun. 30, 2018	5,125.1	17.1	(189.4)	(252.6)	4,700.2
Balance at beginning of period at Dec. 31, 2018	5,158.3	15.6	(220.3)	(321.7)	4,631.9
Net income				129.2	129.2
Other comprehensive loss (income)			75.8		75.8
Total comprehensive income					205.0
Acquisition of Salares Norte	27.0				27.0
Loss on disposal of equity investments at FVTOCI			2.3	(1.3)	1.0
Exercise of stock options	3.3	(0.8)			2.5
Share-based payments		3.0			3.0
Dividend reinvestment plan	22.3				22.3
Dividends declared				(92.3)	(92.3)
Balance at end of period at Jun. 30, 2019	$ 5,210.9	$ 17.8	$ (142.2)	$ (286.1)	$ 4,800.4

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Corporate Information

6 Months Ended

Jun. 30, 2019

Corporate Information

Corporate Information

Note 1 – Corporate Information

Franco-Nevada Corporation (“Franco-Nevada” or the “Company”) is incorporated under the Canada Business Corporations Act. The Company is a royalty and stream company focused on precious metals (gold, silver, and platinum group metals) and a diversity of revenue sources with a target of no more than 20% from energy (oil, gas and natural gas liquids). The Company owns a portfolio of royalty, stream and working interests, covering properties at various stages, from production to early exploration, in Latin America, United States, Canada, Australia and Africa.

The Company’s shares are listed on the Toronto Stock Exchange and the New York Stock Exchange and the Company is domiciled in Canada. The Company’s head and registered office is located at 199 Bay Street, Suite 2000, Toronto, Ontario, Canada.

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Significant accounting policies

6 Months Ended

Jun. 30, 2019

Significant accounting policies

Significant accounting policies

Note 2 – Significant accounting policies

(a)Basis of presentation

These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiaries (its “subsidiaries”) (together the “Company”). These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of condensed interim financial statements, including IAS 34 Interim Financial Reporting. These condensed consolidated interim financial statements should be read in conjunction with the Company’s annual consolidated financial statements for the year ended December 31, 2018 and were prepared using the same accounting policies, method of computation and presentation as were applied in the annual consolidated financial statements for the year ended December 31, 2018, except as noted in Note 2(b). These condensed consolidated financial statements were authorized for issuance by the Board of Directors on August 7, 2019.

The financial information included herein reflects all adjustments, consisting only of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year. Seasonality is not considered to have a significant impact over the condensed consolidated interim financial statements. Taxes on income in the interim period have been accrued using the tax rates that would be applicable to expected total annual income.

(b)New and amended standards adopted by the Company

The following accounting standards were adopted by the Company as of January 1, 2019. The impact of the adoption of these standards and the new accounting policies are disclosed below.

IFRS 16 Leases

Effective January 1, 2019, the Company has adopted IFRS 16 Leases (“IFRS 16”). IFRS 16 requires lessees to recognize assets and liabilities for most leases. The new standard was applied using a modified retrospective approach whereby the effects of the change in accounting policies for leases as at January 1, 2019 are presented together as a single adjustment to the opening balance of deficit. Therefore, the comparative information has not been restated and continues to be reported under IAS 17 Leases.

As permitted under transitional provisions, the Company has elected to use the following practical expedients:

· Not to separate non-lease from lease components, and instead account for each lease component and any associated non-lease components as a single lease component.

· Not to recognize right-of-use assets and associated liabilities for low value assets or lease terms of 12 months or less.

· Measure its right-of-use assets at amounts equal to the associated lease liabilities; as such, the adjustment to deficit on transition is nil.  

The Company’s significant lease arrangements relate to its office premises. Adoption of the new standard resulted in the recognition of right-of-use assets of $2.8 million within other assets on the statement of financial position, measured at an amount equal to the related lease liability, discounted using a weighted average incremental borrowing rate of 4.55% at January 1, 2019.

IFRIC 23 Uncertainty over Income Tax Treatments

Effective January 1, 2019, the Company has adopted IFRIC 23 Uncertainty over Income Tax Treatments (“IFRIC 23”). IFRIC 23 clarifies how to apply the recognition and measurement requirements of IAS 12 Income Taxes when there is uncertainty over income tax treatments. The application of IFRIC 23 did not impact the Company’s consolidated financial statements.

(c)New accounting standards issued but not yet effective

Amendments to IFRS 3 Business Combinations

In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations (“IFRS 3”). The amendments are intended to assist entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. The amendments clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. The amendments to IFRS 3 are effective for annual reporting periods beginning on or after January 1, 2020 and apply prospectively. Earlier application is permitted. While it is generally expected that the application of the amendments will result in more acquisitions being accounted for as asset acquisitions, the Company will evaluate the impact of the amendments based on the nature and terms of acquisitions the Company may complete in future periods.    

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Acquisitions and other transactions

6 Months Ended

Jun. 30, 2019

Acquisitions and other transactions

Acquisitions and other transactions

Note 3 – Acquisitions and other transactions

(a) Acquisition of U.S. Oil & Gas Mineral Rights with Continental Resources, Inc. – SCOOP and STACK, Oklahoma

The Company, through a wholly-owned subsidiary, has a strategic relationship with Continental Resources, Inc. to acquire, through a jointly-owned entity (the “Royalty Acquisition Venture”), royalty rights in the South Central Oklahoma Oil Province (“SCOOP”) and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties (“STACK”) plays of Oklahoma.

In the three and six months ended June 30, 2019, the Company recorded contributions to the Royalty Acquisition Venture of $35.1 million and $86.5 million, respectively. As at June 30, 2019, $10.8 million included in accounts payable on the consolidated statement of financial position relates to contributions to the Royalty Acquisition Venture funded after period-end. As at June 30, 2019, the total cumulative investment in the Royalty Acquisition Venture totalled $348.3 million and Franco-Nevada has remaining commitments of up to $171.7 million to be funded by December 31, 2021.

The Royalty Acquisition Venture is accounted for as a joint operation in accordance with IFRS 11 Joint Arrangements.

(b) Acquisition of Valentine Lake Royalty Interest – Newfoundland, Canada

On February 21, 2019, Franco-Nevada acquired a 2% NSR on Marathon Gold Corporation’s (“Marathon”) Valentine Lake Gold Camp in central Newfoundland for C$18.0 million. Marathon has an option to buy back 0.5% of the NSR for $7.0 million until December 31, 2022.

The acquisition of the Valentine Lake royalty has been accounted for as an asset acquisition.

(c) Acquisition of Salares Norte Royalty Interest – Chile

On January 31, 2019, Franco-Nevada, through a wholly-owned subsidiary, acquired an existing 2% NSR on Gold Fields’ Salares Norte project in the Atacama region of northern Chile for $32.0 million, comprised of $27.0 million of Franco-Nevada common shares  (366,499 common shares) and $5.0 million in cash. Gold Fields has an option to buy back 1% of the NSR for $6.0 million within 24 months of the commencement of commercial production.

The acquisition of the Salares Norte royalty has been accounted for as an asset acquisition.

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Cash and cash equivalents

6 Months Ended

Jun. 30, 2019

Cash and cash equivalents.

Cash and cash equivalents

Note 4 – Cash and cash equivalents

As at June 30, 2019 and 2018, cash and cash equivalents were primarily held in interest-bearing deposits.

	At June 30,		At December 31,
	2019		2018
Cash deposits	$	389.6	$	60.3
Term deposits		9.3		9.4
	$	398.9	$	69.7

Included in the cash and cash equivalents balance as at June 30, 2019 are proceeds of a draw down of $275.0 million on the Company’s Corporate Revolver, which were subsequently used to fund the acquisition of its royalty interest in the Marcellus, as referenced in Note 20(b).  

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Investments

6 Months Ended

Jun. 30, 2019

Investments

Investments

Note 5 – Investments

Investments comprise the following: (i) equity interests in various public and non-public entities which the Company acquired through the open market or through transactions; (ii) warrants in various publicly-listed companies; and (iii) a loan receivable extended to Noront Resources Ltd. as part of the Company’s acquisition of royalty rights in the Ring of Fire mining district of Ontario, Canada, in April 2015. The loan has a maturity date of April 28, 2020, and is presented as a current investment on the consolidated statement of financial position.

	At June 30,		At December 31,
	2019		2018
Loan receivable	$	33.4	$	—
Total investments	$	33.4	$	—
Equity investments	$	191.8	$	136.7
Warrants		1.0		0.7
Loan receivable		—		32.3
Total long-term investments	$	192.8	$	169.7

The change in the fair value of equity investments recognized in other comprehensive income (loss) for the period ended June 30, 2019 and 2018 were as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018			2019		2018
Change in the fair value of equity investments at FVTOCI	$	28.2	$	11.9		$	54.5	$	(17.7)
Deferred tax (expense) recovery in other comprehensive income		(3.4)		(1.5)			(6.8)		2.4
Change in the fair value of equity investments at FVTOCI, net of tax	$	24.8		10.4		$	47.7	$	(15.3)

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Prepaid expenses and other current assets

6 Months Ended

Jun. 30, 2019

Prepaid expenses and other current assets.

Prepaid expenses and other current assets

Note 6 – Prepaid expenses and other current assets

Prepaid expenses and other current assets comprise the following:

		At June 30,		At December 31,
		2019		2018
Gold bullion	$	26.2	$	27.8
Prepaid expenses		10.8		5.4
Debt issue costs		0.1		0.1
	$	37.1	$	33.3

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Royalty, stream and working interests

6 Months Ended

Jun. 30, 2019

Royalty, stream and working interests

Royalty, stream and working interests

Note 7 – Royalty, stream and working interests

Royalty, stream and working interests, net of accumulated depletion and impairment charges, comprise the following:

	As at June 30, 2019
			Accumulated
	Cost		Depletion(1)		Impairment		Carrying Value
Mining royalties	$	1,027.2	$	(594.3)	$	—	$	432.9
Streams		4,270.9		(1,377.3)		—		2,893.6
Energy		1,408.3		(358.0)		—		1,050.3
Advanced		207.4		(30.4)		—		177.0
Exploration		54.6		(12.6)		—		42.0
	$	6,968.4	$	(2,372.6)	$	—	$	4,595.8

¹ Accumulated depletion includes previously recognized impairment charges.

	As at December 31, 2018
			Accumulated
	Cost		Depletion(1)		Impairment		Carrying Value
Mining royalties	$	1,021.4	$	(571.3)	$	—	$	450.1
Streams		4,346.3		(1,303.3)		(75.4)		2,967.6
Energy		1,303.8		(337.2)		—		966.6
Advanced		159.9		(30.1)		—		129.8
Exploration		54.7		(12.6)		(0.6)		41.5
	$	6,886.1	$	(2,254.5)	$	(76.0)	$	4,555.6

¹ Accumulated depletion includes previously recognized impairment charges.

The movement in royalty, stream and working interests for the six months ended June 30, 2019 is as follows:

	Mining
	Royalties		Streams		Energy		Advanced		Exploration		Total
Balance at December 31, 2018	$	450.1	$	2,967.6	$	966.6	$	129.8	$	41.5	$	4,555.6
Acquisitions (Note 3)		—		—		87.6		45.8		—		133.4
Depletion		(23.0)		(74.0)		(20.8)		(0.3)		—		(118.1)
Impact of foreign exchange		5.8		—		16.9		1.7		0.5		24.9
Balance at June 30, 2019	$	432.9	$	2,893.6	$	1,050.3	$	177.0	$	42.0	$	4,595.8

Of the total net book value as at June 30, 2019, $2,352.8 million (December 31, 2018 - $2,233.0 million) is depletable and $2,243.0 million (December 31, 2018 - $2,322.6 million) is non-depletable.  

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Other assets

6 Months Ended

Jun. 30, 2019

Other assets

Other assets

Note 8 – Other assets

Other assets comprise the following:

		At June 30,		At December 31,
		2019		2018
Energy well equipment, net	$	9.9	$	10.2
Right-of-use assets, net		2.7		—
Furniture and fixtures, net		0.4		0.5
	$	13.0	$	10.7

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Debt

6 Months Ended

Jun. 30, 2019

Debt

Debt

Note 9 – Debt

Changes in obligations related to the Company’s credit facilities were as follows:

	Corporate Revolver			FNBC Revolver	Corporate Term Loan			Total
Balance, as at January 1, 2018	$	—	$	—	$	—	$	—
Drawdowns		210.0		27.0		—		237.0
Repayment		—		(27.0)		—		(27.0)
Balance, as at December 31, 2018	$	210.0	$	—	$	—	$	210.0
Drawdowns		275.0		—		160.0		435.0
Repayment		(210.0)		—		—		(210.0)
Balance, as at June 30, 2019	$	275.0	$	—	$	160.0	$	435.0
Less: Debt issue costs		(2.8)		—		—		(2.8)
	$	272.2	$	—	$	160.0	$	432.2

(a)Corporate Revolver - $1.0 billion

The Company has a five-year $1.0 billion unsecured revolving term credit facility (the “Corporate Revolver”). During the six months ended June 30, 2019, the Company paid down $50.0 million of the balance outstanding at December 31, 2018 and refinanced the remaining $160.0 million with the term loan described in Note 9(b). The Company also drew down $275.0 million to finance the acquisition of oil and gas royalties in the Marcellus, as referenced in Note 20.  

On March 26, 2019, the Company amended its Corporate Revolver by extending the term from March 22, 2023 to March 22, 2024 and reducing the applicable margins and standby fee, depending on the Company’s leverage ratio.

Advances under the Corporate Revolver can be drawn as follows:

U.S. dollars

·Base rate advances with interest payable monthly at the Canadian Imperial Bank of Commerce (“CIBC”) base rate, plus between 0.00% and 1.05% per annum depending upon the Company’s leverage ratio; or

·LIBOR loans for periods of 1, 2, 3 or 6 months with interest payable at a rate of LIBOR, plus between 1.00% and 2.05% per annum, depending on the Company’s leverage ratio.

Canadian dollars

·Prime rate advances with interest payable monthly at the CIBC prime rate, plus between 0.00% and 1.05% per annum, depending on the Company’s leverage ratio; or

·Bankers’ acceptances for a period of 30 to 180 days with a stamping fee calculated on the face amount between 1.00% and 2.05%, depending on the Company’s leverage ratio.

All loans are readily convertible into loans of other types, described above, on customary terms and upon provision of appropriate notice. Borrowings under the Corporate Revolver are guaranteed by certain of the Company’s subsidiaries and are unsecured.

The Corporate Revolver is subject to a standby fee of 0.20% to 0.41% per annum, depending on the Company’s leverage ratio, even if no amounts are outstanding under the Corporate Revolver.  

(b)Corporate Term Loan

On April 17, 2019, the Company entered into an unsecured, one-year term credit facility (the “Corporate Term Loan”) in the amount of $160.0 million to refinance amounts borrowed under the Corporate Revolver, as referenced in Note 9(a). The amount was drawn as a one-month LIBOR loan with interest payable at a rate of LIBOR plus 0.85%. The Term Loan matures on April 17, 2020, and is presented as a current liability on the consolidated statement of financial position.

(c) FNBC Revolver - $100.0 million

The Company’s subsidiary, Franco-Nevada (Barbados) Corporation (“FNBC”), has an unsecured revolving term credit facility (the “FNBC Revolver”). The FNBC Revolver provides for the availability over a one-year period of up to $100.0 million in borrowings. On March 19, 2019, the maturity date of the FNBC Revolver was extended by an additional year, to March 20, 2020.

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Revenue

6 Months Ended

Jun. 30, 2019

Revenue.

Revenue

Note 10 – Revenue

Revenue classified by commodity, geography and type is comprised of the following:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Commodity
Gold(1)	$	105.9	$	108.6	$	219.9	$	226.9
Silver		16.6		18.1		36.6		41.6
Platinum-group metals(1)		14.7		9.6		33.8		18.9
Other mining commodities		5.7		2.3		11.6		5.3
Energy		27.6		22.7		48.4		41.7
	$	170.5	$	161.3	$	350.3	$	334.4
Geography
Latin America	$	60.9	$	63.9	$	135.9	$	141.0
United States		36.0		35.6		68.9		66.2
Canada(1)		39.7		30.9		78.5		62.7
Rest of World		33.9		30.9		67.0		64.5
	$	170.5	$	161.3	$	350.3	$	334.4
Type
Revenue-based royalties	$	56.4	$	50.5	$	112.8	$	98.9
Streams(1)		88.1		90.7		192.8		194.4
Profit-based royalties		17.3		11.9		26.9		23.7
Other		8.7		8.2		17.8		17.4
	$	170.5	$	161.3	$	350.3	$	334.4

1. Includes revenue of $0.3 million and $0.8 million of provisional price adjustments for gold and platinum-group metals, respectively, for the three months ended June 30, 2019  (Q2/2018 - $0.2 million and $0.1 million, respectively). For the six months ended June 30, 2019, includes revenue of nil and $3.4 million for gold and platinum-group metals, respectively (H1/2018 - $0.5 million and $0.6 million, respectively). 

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Costs of sales

6 Months Ended

Jun. 30, 2019

Costs of sales

Costs of sales

Note 11 – Costs of sales

Costs of sales are comprised of the following:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Costs of stream sales	$	25.0	$	25.7	$	55.4	$	52.7
Costs of prepaid ounces		—		1.8		—		3.7
Mineral production taxes		0.6		0.8		1.2		1.1
Energy operating costs		1.8		1.5		3.2		2.5
	$	27.4	$	29.8	$	59.8	$	60.0

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Related party disclosures

6 Months Ended

Jun. 30, 2019

Related party disclosures

Related party disclosures

Note 12 – Related party disclosures

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. Key management personnel include the Board of Directors and the executive management team. Compensation for key management personnel of the Company was as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Short-term benefits(1)	$	0.8	$	0.9	$	1.6	$	1.6
Share-based payments(2)		2.0		1.9		3.4		2.4
	$	2.8	$	2.8	$	5.0	$	4.0

1. Includes salary, benefits and short-term accrued incentives/other bonuses earned in the period.

2. Represents the expense of stock options, restricted share units earned and mark-to-market charges on deferred share units during the year.

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Finance income and expenses

6 Months Ended

Jun. 30, 2019

Finance income and expenses

Finance income and expenses

Note 13 – Finance income and expenses

Finance income and expenses for the three months ended June 30, 2019 and 2018 were as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
(expressed in millions)	2019		2018		2019		2018
Finance income
Interest	$	1.2	$	0.7	$	1.9	$	1.7
	$	1.2	$	0.7	$	1.9	$	1.7
Finance expenses
Interest	$	1.7		—	$	3.6	$	—
Standby charges		0.6	$	0.5		0.9		1.2
Amortization of debt issue costs		0.2		0.3		0.4		0.5
Accretion of lease liabilities		—		—		0.1		—
	$	2.5	$	0.8	$	5.0	$	1.7

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Income taxes

6 Months Ended

Jun. 30, 2019

Income taxes

Income taxes

Note 14 - Income taxes

Income tax expense for the three months ended June 30, 2019 and 2018 was as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Current income tax expense	$	11.7		5.4	$	21.4	$	12.8
Deferred income tax expense		2.0		5.7		5.3		11.8
	$	13.7	$	11.1	$	26.7	$	24.6

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Shareholders’ equity

6 Months Ended

Jun. 30, 2019

Shareholders’ equity

Shareholders’ equity

Note 15 – Shareholders’ equity

(a) Share capital

The Company’s authorized capital stock includes an unlimited number of common shares (187,408,583 common shares issued and outstanding) having no par value and preferred shares issuable in series (issued - nil).

During the three months ended June 30, 2019, 147,257 common shares (Q2/2018 – 134,531 common shares) were issued pursuant to the terms of the Company’s Dividend Reinvestment Plan (“DRIP”), and 47,400 common shares (Q2/2018  – nil) were issued on the exercise of stock options, for cash proceeds of $1.5 million (Q2/2018 – nil).

During the six months ended June 30, 2019, 281,362 common shares (H1/2018 – 248,185 common shares) were issued pursuant to the DRIP, and 68,241 common shares (H1/2018  – nil) were issued on the exercise of stock options, for cash proceeds of $2.5 million (H1/2018 – nil). In addition, as referenced in Note 3(c), the Company issued 366,499 common shares valued at $27.0 million for its acquisition of the Salares Norte royalty.

(b) Dividends

The Company declared dividends in the amount of $47.4 million (Q2/2018 - $44.6 million), or $0.25 per share (Q2/2018 - $0.24 per share), for the three months ended June 30, 2019, and $92.3 million (H1/2018 – $87.9 million), or $0.49 per share (H1/2018 - $0.47 per share), for the six months ended June 30, 2019.  The Company paid cash dividends in the amount of $35.1 million (Q2/2018 – $35.0 million), and $70.0 million (H1/2018 –  $70.6 million) in the three and six months ended June 30, 2019, respectively. Common shares issued pursuant to the DRIP were valued at $12.3 million (Q2/2018 - $9.6 million), and $22.3 million (H1/2018 – $17.3 million), in the three and six months ended June 30, 2019, respectively.

(c) Stock-based payments

During the three months and six months ended June 30, 2019, an expense of $1.2 million (Q2/2018 - $1.4 million) and $2.6 million (H1/2018 - $2.6 million) related to stock options has been included in the consolidated statement of income and other comprehensive income, respectively. In the three and six months ended June 30, 2019, $0.3 million (Q2/2018 – nil) and $0.4 million (H1/2018 - $0.3 million),  was capitalized to royalty, stream and working interest, net, respectively.     

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Earnings per share (“EPS”)

6 Months Ended

Jun. 30, 2019

Earnings per share (“EPS”)

Earnings per share (“EPS”)

Note 16 – Earnings per share (“EPS”)

For the three months ended June 30, 2019
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	64.0	187.2	$	0.34
Effect of dilutive securities		—	0.3		—
Diluted EPS	$	64.0	187.5	$	0.34

For the three months ended June 30, 2018
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	53.6	186.0	$	0.29
Effect of dilutive securities		—	0.3		—
Diluted EPS	$	53.6	186.3	$	0.29

For the six months ended June 30, 2019
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	129.2	187.1	$	0.69
Effect of dilutive securities		—	0.3		—
Diluted EPS	$	129.2	187.4	$	0.69

For the six months ended June 30, 2018
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	118.2	186.0	$	0.64
Effect of dilutive securities		—	0.3		(0.01)
Diluted EPS	$	118.2	186.3	$	0.63

For the three and six months ended June 30, 2019,  251,613 stock options  (2018 – 97,789) were excluded due to being anti-dilutive. RSUs totaling 69,442 (2018 - 73,762) were excluded from the computation of diluted EPS due to the performance criteria for the vesting of the RSUs not being measurable as at June 30, 2019. 

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Segment reporting

6 Months Ended

Jun. 30, 2019

Segment reporting

Segment reporting

Note 17 – Segment reporting

The chief operating decision-maker organizes and manages the business under two operating segments, consisting of royalty, stream and working interests in each of the mining and energy sectors.

The Company’s reportable segments for purposes of assessing performance are presented as follows:

For the three months ended June 30, 2019	Mining		Energy		Total
Revenue	$	142.9	$	27.6	$	170.5
Income/(expenses)
Costs of sales	$	25.6	$	1.8	$	27.4
Depletion and depreciation		46.7		11.4		58.1
Segment gross profit	$	70.6	$	14.4	$	85.0

For the three months ended June 30, 2018	Mining		Energy		Total
Revenue	$	138.6	$	22.7	$	161.3
Income/(expenses)
Costs of sales	$	28.3	$	1.5	$	29.8
Depletion and depreciation		49.7		9.1		58.8
Segment gross profit	$	60.6	$	12.1	$	72.7

For the six months ended June 30, 2019	Mining		Energy		Total
Revenue	$	301.9	$	48.4	$	350.3
Income/(expenses)
Costs of sales	$	56.6	$	3.2	$	59.8
Depletion and depreciation		97.3		20.8		118.1
Segment gross profit	$	148.0	$	24.4	$	172.4

For the six months ended June 30, 2018	Mining		Energy		Total
Revenue	$	292.7	$	41.7	$	334.4
Income/(expenses)
Costs of sales	$	57.5	$	2.5	$	60.0
Depletion and depreciation		102.4		16.2		118.6
Segment gross profit	$	132.8	$	23.0	$	155.8

A reconciliation of total segment gross profit to the consolidated net income before income taxes is presented below:

		For the three months ended				For the six months ended
		June 30,				June 30,
		2019		2018		2019		2018
Total segment gross profit	$	85.0	$	72.7	$	172.4	$	155.8
Other operating (income)/expenses
General and administrative expenses	$	5.6	$	7.0	$	12.5	$	12.2
Gain on sale of bullion		(0.4)		-		(0.8)		(0.3)
Depreciation		0.8		0.8		1.7		1.6
Foreign exchange (gain) and other income (expenses)		-		0.1		-		(0.5)
Income before finance items and income taxes	$	79.0	$	64.8	$	159.0	$	142.8
Finance items
Finance income	$	1.2	$	0.7	$	1.9	$	1.7
Finance expenses		(2.5)		(0.8)		(5.0)		(1.7)
Net income before income taxes	$	77.7	$	64.7	$	155.9	$	142.8

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Fair value measurements

6 Months Ended

Jun. 30, 2019

Fair value measurements

Fair value measurements

Note 18 - Fair value measurements

Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same - to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value.

· Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

· Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means.

· Level 3 inputs are unobservable (supported by little or no market activity).

The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

There were no transfers between the levels of the fair value hierarchy during the six months ended June 30, 2019. 

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Aggregate
As at June 30, 2019	(Level 1)		(Level 2)		(Level 3)		Fair Value
Receivables from provisional concentrate sales	$	—	$	12.6	$	—	$	12.6
Equity investments		187.9		—		3.9		191.8
Warrants		—		1.0		—		1.0
	$	187.9	$	13.6	$	3.9	$	205.4

	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Aggregate
As at December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Fair Value
Receivables from provisional concentrate sales	$	—	$	8.5	$	—	$	8.5
Equity investments		132.8		—		3.9		136.7
Warrants		—		0.7		—		0.7
	$	132.8	$	9.2	$	3.9	$	145.9

The fair values of the Company’s remaining financial assets and liabilities, which include cash and cash equivalents, receivables, loan receivables, accounts payable and accrued liabilities, and debt approximate their carrying values due to their short-term nature, historically negligible credit losses, fair value of collateral, and/or floating interest rate on the debt. 

The Company has not offset financial assets with financial liabilities.

Assets Measured at Fair Value on a Non-Recurring Basis:

	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs		Aggregate
As at December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Fair Value
Royalty, stream and working interests	$	—	$	—	$	14.6	$	14.6
	$	—	$	—	$	14.6	$	14.6

The valuation techniques that are used to measure fair value are as follows:

(a) Receivables

The fair values of receivables arising from gold and platinum group metal concentrate sales contracts that contain provisional pricing mechanisms are determined using the appropriate quoted forward prices from the exchange that is the principal active market for the particular metal. As such, these receivables are classified within Level 2 of the fair value hierarchy.

(b) Investments

The fair values of publicly-traded investments are determined based on a market approach reflecting the closing prices of each particular security at the statement of financial position date. The closing prices are quoted market prices obtained from the exchange that is the principal active market for the particular security, and therefore are classified within Level 1 of the fair value hierarchy.

The Company holds one equity investment that does not have a quoted market price in an active market. The Company has assessed the fair value of the instrument based on a valuation technique using unobservable discounted future cash flows. As a result, the fair value is classified within Level 3 of the fair value hierarchy.

The fair values of warrants are estimated using the Black-Scholes pricing model which requires the use of inputs that are observable in the market. As such, these investments are classified within Level 2 of the fair value hierarchy.

(c) Royalty, stream, and working interests and oil well equipment

The fair values of royalty, stream, and working interests are determined primarily using a market approach using unobservable discounted future cash-flows. As a result, the fair values are classified within Level 3 of the fair value hierarchy.

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Contingencies

6 Months Ended

Jun. 30, 2019

Contingencies

Contingencies

Note 19 – Contingencies

Canada Revenue Agency Audit:

The Canada Revenue Agency (“CRA”) is conducting an audit of Franco-Nevada’s 2012-2015 taxation years. 

(a) Canadian Domestic (2014-2015):

Certain wholly owned Canadian subsidiaries of the Company received proposal letters (the “CRA Letters”) from the CRA at the end of May 2019.  The CRA Letters propose to reassess the 2014 and 2015 taxation years to increase income by adjusting the timing of the deduction of the upfront payments with respect to precious metal streams, resulting in additional Federal and provincial income taxes of approximately $1.6 million plus interest and applicable penalties (after applying available non-capital losses).

(b) Mexico (2013):

The Company received a Notice of Reassessment (the “Reassessment”) dated December 24, 2018 from the CRA for the 2013 taxation year in relation to the Company’s Mexican subsidiary. The Reassessment assesses the Company for additional Federal and provincial income taxes of C$10.7 million ($8.2 million) plus interest and applicable penalties but before any relief under the Canada-Mexico tax treaty.

For the 2013 taxation year, the Company’s Mexican subsidiary paid 154.3 million Pesos ($12.1 million) in cash taxes, at a 30% tax rate, to the Mexican tax authorities on income earned in Mexico. If required, the Company intends to seek relief from double taxation under the Canada-Mexico tax treaty.

Management believes that the Company and its subsidiaries have filed their tax returns and paid all applicable taxes in compliance with Canadian and applicable foreign tax laws and as a result, no amounts have been recorded in the financial statements of the Company for the Reassessment, the CRA Letters or for any potential tax liability that may arise in respect of these matters. The Company intends to vigorously defend its position.

The CRA audit is ongoing and there can be no assurance that the CRA will not further challenge the manner in which the Company or any of its subsidiaries has filed its income tax returns and reported its income. In the event that the CRA successfully challenges the manner in which the Company or a subsidiary has filed its tax returns and reported its income, this could potentially result in additional income taxes, penalties and interest, which could have a material adverse effect on the Company.

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Subsequent events

6 Months Ended

Jun. 30, 2019

Subsequent events

Subsequent events

Note 20 – Subsequent events

(a) Corporate Revolver Partial Repayment

On August 6, 2019, the Company paid down $50.0 million of the balance outstanding under its Corporate Revolver, reducing the balance from $275.0 million to $225.0 million.

(b) Acquisition of U.S. Oil & Gas Royalty Interest – Marcellus, Pennsylvania

On July 22, 2019, Franco-Nevada acquired from Range Resources Corporation (“Range”) an overriding royalty interest on acreage in the Marcellus for a gross purchase price of $300.0 million. The royalty is calculated as 1% of gross production, less allowed deductions from approximately 350,000 net acres of Range’s working interest position in Washington, Western Allegheny and Southern Beaver Counties in Pennsylvania. The royalty applies to existing production and future development from the Marcellus formation as well as future potential development from the Utica and Upper Devonian formations.

The acquisition was financed with a combination of cash on hand and funds drawn from the Corporate Revolver, as referenced in Note 9(a). The acquisition has an effective date of March 1, 2019. Between the effective date and the closing date, the asset has generated approximately $9.0 million in royalties.

(c) At-the-Market Equity Program

On July 19, 2019, the Company established an at-the-market program (the “ATM Program”) that allows the Company to issue to $200 million worth of common shares from treasury to the public from time to time at the prevailing market price through the Toronto Stock Exchange, the New York Stock Exchange or any other marketplace on which the common shares are listed, quoted or otherwise trade. The volume and timing of distributions under the ATM Program, if any, will be determined at the Company’s sole discretion, subject to applicable regulatory limitations. The ATM Program will be effective until July 18, 2020, unless terminated prior to such date by the Company.

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Significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2019

Significant accounting policies

Basis of presentation

(a)Basis of presentation

These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiaries (its “subsidiaries”) (together the “Company”). These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of condensed interim financial statements, including IAS 34 Interim Financial Reporting. These condensed consolidated interim financial statements should be read in conjunction with the Company’s annual consolidated financial statements for the year ended December 31, 2018 and were prepared using the same accounting policies, method of computation and presentation as were applied in the annual consolidated financial statements for the year ended December 31, 2018, except as noted in Note 2(b). These condensed consolidated financial statements were authorized for issuance by the Board of Directors on August 7, 2019.

The financial information included herein reflects all adjustments, consisting only of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year. Seasonality is not considered to have a significant impact over the condensed consolidated interim financial statements. Taxes on income in the interim period have been accrued using the tax rates that would be applicable to expected total annual income.

New and amended standards adopted and issued but not yet effective

(b)New and amended standards adopted by the Company

The following accounting standards were adopted by the Company as of January 1, 2019. The impact of the adoption of these standards and the new accounting policies are disclosed below.

IFRS 16 Leases

Effective January 1, 2019, the Company has adopted IFRS 16 Leases (“IFRS 16”). IFRS 16 requires lessees to recognize assets and liabilities for most leases. The new standard was applied using a modified retrospective approach whereby the effects of the change in accounting policies for leases as at January 1, 2019 are presented together as a single adjustment to the opening balance of deficit. Therefore, the comparative information has not been restated and continues to be reported under IAS 17 Leases.

As permitted under transitional provisions, the Company has elected to use the following practical expedients:

· Not to separate non-lease from lease components, and instead account for each lease component and any associated non-lease components as a single lease component.

· Not to recognize right-of-use assets and associated liabilities for low value assets or lease terms of 12 months or less.

· Measure its right-of-use assets at amounts equal to the associated lease liabilities; as such, the adjustment to deficit on transition is nil.  

The Company’s significant lease arrangements relate to its office premises. Adoption of the new standard resulted in the recognition of right-of-use assets of $2.8 million within other assets on the statement of financial position, measured at an amount equal to the related lease liability, discounted using a weighted average incremental borrowing rate of 4.55% at January 1, 2019.

IFRIC 23 Uncertainty over Income Tax Treatments

Effective January 1, 2019, the Company has adopted IFRIC 23 Uncertainty over Income Tax Treatments (“IFRIC 23”). IFRIC 23 clarifies how to apply the recognition and measurement requirements of IAS 12 Income Taxes when there is uncertainty over income tax treatments. The application of IFRIC 23 did not impact the Company’s consolidated financial statements.

(c)New accounting standards issued but not yet effective

Amendments to IFRS 3 Business Combinations

In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations (“IFRS 3”). The amendments are intended to assist entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. The amendments clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. The amendments to IFRS 3 are effective for annual reporting periods beginning on or after January 1, 2020 and apply prospectively. Earlier application is permitted. While it is generally expected that the application of the amendments will result in more acquisitions being accounted for as asset acquisitions, the Company will evaluate the impact of the amendments based on the nature and terms of acquisitions the Company may complete in future periods.

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Cash and cash equivalents (Tables)

6 Months Ended

Jun. 30, 2019

Cash and cash equivalents.

Schedule of cash and cash equivalents

	At June 30,		At December 31,
	2019		2018
Cash deposits	$	389.6	$	60.3
Term deposits		9.3		9.4
	$	398.9	$	69.7

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Investments (Tables)

6 Months Ended

Jun. 30, 2019

Investments

Schedule of investments

	At June 30,		At December 31,
	2019		2018
Loan receivable	$	33.4	$	—
Total investments	$	33.4	$	—
Equity investments	$	191.8	$	136.7
Warrants		1.0		0.7
Loan receivable		—		32.3
Total long-term investments	$	192.8	$	169.7

Schedule of unrealized gains (losses) on available-for-sale investments recognized in other comprehensive income

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018			2019		2018
Change in the fair value of equity investments at FVTOCI	$	28.2	$	11.9		$	54.5	$	(17.7)
Deferred tax (expense) recovery in other comprehensive income		(3.4)		(1.5)			(6.8)		2.4
Change in the fair value of equity investments at FVTOCI, net of tax	$	24.8		10.4		$	47.7	$	(15.3)

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Prepaid expenses and other current assets (Tables)

6 Months Ended

Jun. 30, 2019

Prepaid expenses and other current assets.

The schedule of prepaid expenses and other current assets

		At June 30,		At December 31,
		2019		2018
Gold bullion	$	26.2	$	27.8
Prepaid expenses		10.8		5.4
Debt issue costs		0.1		0.1
	$	37.1	$	33.3

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Royalty, stream and working interests (Tables)

6 Months Ended

Jun. 30, 2019

Royalty, stream and working interests

Disclosure of detailed information about royalty, stream and working interest, net

	As at June 30, 2019
			Accumulated
	Cost		Depletion(1)		Impairment		Carrying Value
Mining royalties	$	1,027.2	$	(594.3)	$	—	$	432.9
Streams		4,270.9		(1,377.3)		—		2,893.6
Energy		1,408.3		(358.0)		—		1,050.3
Advanced		207.4		(30.4)		—		177.0
Exploration		54.6		(12.6)		—		42.0
	$	6,968.4	$	(2,372.6)	$	—	$	4,595.8

¹ Accumulated depletion includes previously recognized impairment charges.

	As at December 31, 2018
			Accumulated
	Cost		Depletion(1)		Impairment		Carrying Value
Mining royalties	$	1,021.4	$	(571.3)	$	—	$	450.1
Streams		4,346.3		(1,303.3)		(75.4)		2,967.6
Energy		1,303.8		(337.2)		—		966.6
Advanced		159.9		(30.1)		—		129.8
Exploration		54.7		(12.6)		(0.6)		41.5
	$	6,886.1	$	(2,254.5)	$	(76.0)	$	4,555.6

¹ Accumulated depletion includes previously recognized impairment charges.

Disclosure of detailed information about royalty, stream and working interest, net rollforward

	Mining
	Royalties		Streams		Energy		Advanced		Exploration		Total
Balance at December 31, 2018	$	450.1	$	2,967.6	$	966.6	$	129.8	$	41.5	$	4,555.6
Acquisitions (Note 3)		—		—		87.6		45.8		—		133.4
Depletion		(23.0)		(74.0)		(20.8)		(0.3)		—		(118.1)
Impact of foreign exchange		5.8		—		16.9		1.7		0.5		24.9
Balance at June 30, 2019	$	432.9	$	2,893.6	$	1,050.3	$	177.0	$	42.0	$	4,595.8

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Other assets (Tables)

6 Months Ended

Jun. 30, 2019

Other assets

Schedule of Other assets

		At June 30,		At December 31,
		2019		2018
Energy well equipment, net	$	9.9	$	10.2
Right-of-use assets, net		2.7		—
Furniture and fixtures, net		0.4		0.5
	$	13.0	$	10.7

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Debt (Tables)

6 Months Ended

Jun. 30, 2019

Debt

Schedule of changes in obligations related to the Credit Facility

	Corporate Revolver			FNBC Revolver	Corporate Term Loan			Total
Balance, as at January 1, 2018	$	—	$	—	$	—	$	—
Drawdowns		210.0		27.0		—		237.0
Repayment		—		(27.0)		—		(27.0)
Balance, as at December 31, 2018	$	210.0	$	—	$	—	$	210.0
Drawdowns		275.0		—		160.0		435.0
Repayment		(210.0)		—		—		(210.0)
Balance, as at June 30, 2019	$	275.0	$	—	$	160.0	$	435.0
Less: Debt issue costs		(2.8)		—		—		(2.8)
	$	272.2	$	—	$	160.0	$	432.2

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Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Revenue.

Schedule of Revenue

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Commodity
Gold(1)	$	105.9	$	108.6	$	219.9	$	226.9
Silver		16.6		18.1		36.6		41.6
Platinum-group metals(1)		14.7		9.6		33.8		18.9
Other mining commodities		5.7		2.3		11.6		5.3
Energy		27.6		22.7		48.4		41.7
	$	170.5	$	161.3	$	350.3	$	334.4
Geography
Latin America	$	60.9	$	63.9	$	135.9	$	141.0
United States		36.0		35.6		68.9		66.2
Canada(1)		39.7		30.9		78.5		62.7
Rest of World		33.9		30.9		67.0		64.5
	$	170.5	$	161.3	$	350.3	$	334.4
Type
Revenue-based royalties	$	56.4	$	50.5	$	112.8	$	98.9
Streams(1)		88.1		90.7		192.8		194.4
Profit-based royalties		17.3		11.9		26.9		23.7
Other		8.7		8.2		17.8		17.4
	$	170.5	$	161.3	$	350.3	$	334.4

1. Includes revenue of $0.3 million and $0.8 million of provisional price adjustments for gold and platinum-group metals, respectively, for the three months ended June 30, 2019  (Q2/2018 - $0.2 million and $0.1 million, respectively). For the six months ended June 30, 2019, includes revenue of nil and $3.4 million for gold and platinum-group metals, respectively (H1/2018 - $0.5 million and $0.6 million, respectively).

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Costs of sales (Tables)

6 Months Ended

Jun. 30, 2019

Costs of sales

Schedule of Costs of sales

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Costs of stream sales	$	25.0	$	25.7	$	55.4	$	52.7
Costs of prepaid ounces		—		1.8		—		3.7
Mineral production taxes		0.6		0.8		1.2		1.1
Energy operating costs		1.8		1.5		3.2		2.5
	$	27.4	$	29.8	$	59.8	$	60.0

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Related party disclosures (Tables)

6 Months Ended

Jun. 30, 2019

Related party disclosures

Schedule of compensation for key management personnel

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Short-term benefits(1)	$	0.8	$	0.9	$	1.6	$	1.6
Share-based payments(2)		2.0		1.9		3.4		2.4
	$	2.8	$	2.8	$	5.0	$	4.0

1. Includes salary, benefits and short-term accrued incentives/other bonuses earned in the period.

2. Represents the expense of stock options, restricted share units earned and mark-to-market charges on deferred share units during the year.

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Finance income and expenses (Tables)

6 Months Ended

Jun. 30, 2019

Finance income and expenses

Schedule of finance income and expenses

	For the three months ended				For the six months ended
	June 30,				June 30,
(expressed in millions)	2019		2018		2019		2018
Finance income
Interest	$	1.2	$	0.7	$	1.9	$	1.7
	$	1.2	$	0.7	$	1.9	$	1.7
Finance expenses
Interest	$	1.7		—	$	3.6	$	—
Standby charges		0.6	$	0.5		0.9		1.2
Amortization of debt issue costs		0.2		0.3		0.4		0.5
Accretion of lease liabilities		—		—		0.1		—
	$	2.5	$	0.8	$	5.0	$	1.7

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Income taxes (Tables)

6 Months Ended

Jun. 30, 2019

Income taxes

Schedule of income tax expense

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Current income tax expense	$	11.7		5.4	$	21.4	$	12.8
Deferred income tax expense		2.0		5.7		5.3		11.8
	$	13.7	$	11.1	$	26.7	$	24.6

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Earnings per share (“EPS”) (Tables)

6 Months Ended

Jun. 30, 2019

Earnings per share (“EPS”)

Schedule of basic and diluted EPS

For the three months ended June 30, 2019
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	64.0	187.2	$	0.34
Effect of dilutive securities		—	0.3		—
Diluted EPS	$	64.0	187.5	$	0.34

For the three months ended June 30, 2018
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	53.6	186.0	$	0.29
Effect of dilutive securities		—	0.3		—
Diluted EPS	$	53.6	186.3	$	0.29

For the six months ended June 30, 2019
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	129.2	187.1	$	0.69
Effect of dilutive securities		—	0.3		—
Diluted EPS	$	129.2	187.4	$	0.69

For the six months ended June 30, 2018
	Earnings		Shares	Per Share
	(Numerator)		(Denominator)	Amount
Basic EPS	$	118.2	186.0	$	0.64
Effect of dilutive securities		—	0.3		(0.01)
Diluted EPS	$	118.2	186.3	$	0.63

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Segment reporting (Tables)

6 Months Ended

Jun. 30, 2019

Segment reporting

Schedule of reportable segments for purposes of assessing performance

For the three months ended June 30, 2019	Mining		Energy		Total
Revenue	$	142.9	$	27.6	$	170.5
Income/(expenses)
Costs of sales	$	25.6	$	1.8	$	27.4
Depletion and depreciation		46.7		11.4		58.1
Segment gross profit	$	70.6	$	14.4	$	85.0

For the three months ended June 30, 2018	Mining		Energy		Total
Revenue	$	138.6	$	22.7	$	161.3
Income/(expenses)
Costs of sales	$	28.3	$	1.5	$	29.8
Depletion and depreciation		49.7		9.1		58.8
Segment gross profit	$	60.6	$	12.1	$	72.7

For the six months ended June 30, 2019	Mining		Energy		Total
Revenue	$	301.9	$	48.4	$	350.3
Income/(expenses)
Costs of sales	$	56.6	$	3.2	$	59.8
Depletion and depreciation		97.3		20.8		118.1
Segment gross profit	$	148.0	$	24.4	$	172.4

For the six months ended June 30, 2018	Mining		Energy		Total
Revenue	$	292.7	$	41.7	$	334.4
Income/(expenses)
Costs of sales	$	57.5	$	2.5	$	60.0
Depletion and depreciation		102.4		16.2		118.6
Segment gross profit	$	132.8	$	23.0	$	155.8

A reconciliation of total segment gross profit to the consolidated net income before income taxes is presented below:

		For the three months ended				For the six months ended
		June 30,				June 30,
		2019		2018		2019		2018
Total segment gross profit	$	85.0	$	72.7	$	172.4	$	155.8
Other operating (income)/expenses
General and administrative expenses	$	5.6	$	7.0	$	12.5	$	12.2
Gain on sale of bullion		(0.4)		-		(0.8)		(0.3)
Depreciation		0.8		0.8		1.7		1.6
Foreign exchange (gain) and other income (expenses)		-		0.1		-		(0.5)
Income before finance items and income taxes	$	79.0	$	64.8	$	159.0	$	142.8
Finance items
Finance income	$	1.2	$	0.7	$	1.9	$	1.7
Finance expenses		(2.5)		(0.8)		(5.0)		(1.7)
Net income before income taxes	$	77.7	$	64.7	$	155.9	$	142.8

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2019

Recurring Basis

Fair value measurements

Schedule of Assets and Liabilities Measured at Fair Value

	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Aggregate
As at June 30, 2019	(Level 1)		(Level 2)		(Level 3)		Fair Value
Receivables from provisional concentrate sales	$	—	$	12.6	$	—	$	12.6
Equity investments		187.9		—		3.9		191.8
Warrants		—		1.0		—		1.0
	$	187.9	$	13.6	$	3.9	$	205.4

	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Aggregate
As at December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Fair Value
Receivables from provisional concentrate sales	$	—	$	8.5	$	—	$	8.5
Equity investments		132.8		—		3.9		136.7
Warrants		—		0.7		—		0.7
	$	132.8	$	9.2	$	3.9	$	145.9

Non recurring Basis

Fair value measurements

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs		Aggregate
As at December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Fair Value
Royalty, stream and working interests	$	—	$	—	$	14.6	$	14.6
	$	—	$	—	$	14.6	$	14.6

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Corporate Information (Details)	6 Months Ended
	Jun. 30, 2019
Corporate Information
Maximum energy streams target percentage (as a percent)	20.00%

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Significant accounting policies - IFRS 16 (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
IFRS 16 Financial Instruments
Right-of-use assets	$ 2.7
Adjustment
IFRS 16 Financial Instruments
Right-of-use assets		$ 2.8
Weighted average incremental borrowing rate (as a percent)		4.55%

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Acquisitions and other transactions (Details) $ in Millions			3 Months Ended	6 Months Ended
	Feb. 21, 2019 USD ($)	Jan. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Feb. 21, 2019 CAD ($)
South Central Oklahoma Oil Province And Sooner Trend Anadarko Basin Canadian And Kingfisher Countries
Acquisitions
Total contributions made			$ 35,100,000	$ 86,500,000
Cumulative investment in royalty acquisition venture			348,300,000	348,300,000
South Central Oklahoma Oil Province And Sooner Trend Anadarko Basin Canadian And Kingfisher Countries | Top
Acquisitions
Total cumulative investment			171,700,000	171,700,000
South Central Oklahoma Oil Province And Sooner Trend Anadarko Basin Canadian And Kingfisher Countries | Accounts payable
Acquisitions
Total consideration transferred, acquisition-date fair value			$ 10,800,000	$ 10,800,000
Salares Norte Royalty Interest
Acquisitions
Total consideration transferred, acquisition-date fair value		$ 32,000,000
Percentage of NSR		2.00%
Number of common shares issued in acquisition (in share)		366,499
Cash transferred		$ 5,000,000
Option to buy back of NSR (as a percent)		1.00%
Value of option to buy back of NSR		$ 6,000,000
Period to buy back of NSR		24 months
Salares Norte Royalty Interest | Common shares
Acquisitions
Value of common shares issued in acquisition		$ 27,000,000
Number of common shares issued in acquisition (in share)		366,499
Valentine Lake Royalty Interest
Acquisitions
Total consideration transferred, acquisition-date fair value					$ 18.0
Percentage of NSR	2.00%
Option to buy back of NSR (as a percent)					0.50%
Value of option to buy back of NSR	$ 7,000,000

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Cash and cash equivalents (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Cash deposits	$ 389.6	$ 60.3
Term deposits	9.3	9.4
Cash and cash equivalents	398.9	69.7	$ 72.1	$ 511.1
Proceeds from borrowings, classified as financing activities	435.0	237.0
Credit Facility
Proceeds from borrowings, classified as financing activities	275.0	$ 210.0
Credit Facility | Marcellus Shale Royalties Pennsylvania
Proceeds from borrowings, classified as financing activities	$ 275.0

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Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Investments
Investments	$ 33.4		$ 33.4
Long-term investments	192.8		192.8		$ 169.7
Unrealized gains losses on available-for-sale investments
Change in the fair value of equity investments at FVTOCI	28.2	$ 11.9	54.5		(17.7)
Deferred tax (expense) recovery in other comprehensive income	(3.4)	(1.5)	(6.8)		2.4
Change in the fair value of equity investments at FVTOCI, net of tax	24.8	$ 10.4	47.7	$ (15.3)	(15.3)
Equity investments
Investments
Long-term investments	191.8		191.8		136.7
Warrants
Investments
Long-term investments	1.0		1.0		0.7
Loan receivable
Investments
Investments	$ 33.4		$ 33.4
Long-term investments					$ 32.3

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Prepaid expenses and other current assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Prepaid expenses and other current assets.
Gold bullion	$ 26.2	$ 27.8
Prepaid expenses	10.8	5.4
Debt issue costs	0.1	0.1
Prepaid expenses and other	$ 37.1	$ 33.3

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Royalty, stream and working interests - Royalties, Streams and Working Interests (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	$ 4,595.8	$ 4,555.6
Royalty, stream and working interest, net depletable	2,352.8	2,233.0
Royalty, stream and working interest, net non-depletable	2,243.0	2,322.6
Cost
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	6,968.4	6,886.1
Accumulated Depletion
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	(2,372.6)	(2,254.5)
Impairment
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net		(76.0)
Mineral Royalties
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	432.9	450.1
Mineral Royalties | Cost
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	1,027.2	1,021.4
Mineral Royalties | Accumulated Depletion
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	(594.3)	(571.3)
Streams
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	2,893.6	2,967.6
Streams | Cost
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	4,270.9	4,346.3
Streams | Accumulated Depletion
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	(1,377.3)	(1,303.3)
Streams | Impairment
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net		(75.4)
Energy
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	1,050.3	966.6
Energy | Cost
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	1,408.3	1,303.8
Energy | Accumulated Depletion
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	(358.0)	(337.2)
Advanced
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	177.0	129.8
Advanced | Cost
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	207.4	159.9
Advanced | Accumulated Depletion
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	(30.4)	(30.1)
Exploration
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	42.0	41.5
Exploration | Cost
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	54.6	54.7
Exploration | Accumulated Depletion
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net	$ (12.6)	(12.6)
Exploration | Impairment
Royalty, Stream and Working Interests, Net
Royalty, stream and working interests, net		$ (0.6)

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Royalty, stream and working interests - Rollforward (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Royalty, Stream and Working Interests, Net
Balance at beginning of period	$ 4,555.6
Acquisitions	133.4
Depletion	(118.1)
Impact of foreign exchange	24.9
Balance at end of period	4,595.8
Mineral Royalties
Royalty, Stream and Working Interests, Net
Balance at beginning of period	450.1
Depletion	(23.0)
Impact of foreign exchange	5.8
Balance at end of period	432.9
Streams
Royalty, Stream and Working Interests, Net
Balance at beginning of period	2,967.6
Depletion	(74.0)
Balance at end of period	2,893.6
Energy
Royalty, Stream and Working Interests, Net
Balance at beginning of period	966.6
Acquisitions	87.6
Depletion	(20.8)
Impact of foreign exchange	16.9
Balance at end of period	1,050.3
Advanced
Royalty, Stream and Working Interests, Net
Balance at beginning of period	129.8
Acquisitions	45.8
Depletion	(0.3)
Impact of foreign exchange	1.7
Balance at end of period	177.0
Exploration
Royalty, Stream and Working Interests, Net
Balance at beginning of period	41.5
Impact of foreign exchange	0.5
Balance at end of period	$ 42.0

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Other assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Other assets
Energy well equipment, net	$ 9.9	$ 10.2
Right-of-use assets, net	2.7
Furniture and fixtures, net	0.4	0.5
Other assets	$ 13.0	$ 10.7

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Debt (Details) - USD ($) $ in Millions			6 Months Ended	12 Months Ended
	Apr. 17, 2019	Mar. 20, 2017	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2019
Revolving term credit facility
Balance, beginning of year			$ 210.0
Drawdowns			435.0	$ 237.0
Repayments			(210.0)	(27.0)
Balance, end of year			435.0	210.0
Less: debt issue costs					$ (2.8)
Borrowings					432.2
Amount outstanding			210.0	210.0	435.0
Credit Facility
Revolving term credit facility
Balance, beginning of year			210.0
Drawdowns			275.0	210.0
Repayments			(210.0)
Balance, end of year			$ 275.0	210.0
Less: debt issue costs					(2.8)
Borrowings					272.2
Maturity period			5 years
Maximum borrowing capacity					1,000.0
Repayment of credit facility			$ 50.0
Debt refinanced					160.0
Amount outstanding			$ 210.0	210.0	$ 275.0
Credit Facility | Bottom
Revolving term credit facility
Bankers acceptance period under credit facility			30 days
Stamping fee (as a percent)			1.00%
Standby fee (as a percent)			0.20%
Credit Facility | Top
Revolving term credit facility
Bankers acceptance period under credit facility			180 days
Stamping fee (as a percent)			2.05%
Standby fee (as a percent)			0.41%
Credit Facility | Marcellus Shale Royalties Pennsylvania
Revolving term credit facility
Drawdowns			$ 275.0
Credit Facility | CIBC | Bottom
Revolving term credit facility
Spread on variable rate (as a percent)					0.00%
Credit Facility | CIBC | Top
Revolving term credit facility
Spread on variable rate (as a percent)					1.05%
Credit Facility | LIBOR | Bottom
Revolving term credit facility
Spread on variable rate (as a percent)					1.00%
Credit Facility | LIBOR | Top
Revolving term credit facility
Spread on variable rate (as a percent)					2.05%
Credit Facility | Prime rate | Bottom
Revolving term credit facility
Spread on variable rate (as a percent)					0.00%
Credit Facility | Prime rate | Top
Revolving term credit facility
Spread on variable rate (as a percent)					1.05%
Term Loan
Revolving term credit facility
Drawdowns			160.0
Balance, end of year			160.0
Borrowings					$ 160.0
Maturity period	1 year
Amount outstanding			$ 160.0		$ 160.0
Borrowed amount	$ 160.0
Term Loan | 30-day Libor
Revolving term credit facility
Spread on variable rate (as a percent)	0.85%
FNBC Credit Facility
Revolving term credit facility
Drawdowns				27.0
Repayments				$ (27.0)
Maturity period		1 year
Maximum borrowing capacity		$ 100.0

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Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue
Revenue	$ 170.5	$ 161.3	$ 350.3	$ 334.4
Revenue-based royalties
Revenue
Revenue	56.4	50.5	112.8	98.9
Streams
Revenue
Revenue	88.1	90.7	192.8	194.4
Profit-based royalties
Revenue
Revenue	17.3	11.9	26.9	23.7
Other
Revenue
Revenue	8.7	8.2	17.8	17.4
Gold
Revenue
Revenue	105.9	108.6	219.9	226.9
Provisional price adjustment	0.3	0.2	0.0	0.5
Silver
Revenue
Revenue	16.6	18.1	36.6	41.6
Platinum-group metals
Revenue
Revenue	14.7	9.6	33.8	18.9
Provisional price adjustment	0.8	0.1	3.4	0.6
Other mining commodities
Revenue
Revenue	5.7	2.3	11.6	5.3
Energy
Revenue
Revenue	27.6	22.7	48.4	41.7
Latin American
Revenue
Revenue	60.9	63.9	135.9	141.0
United States
Revenue
Revenue	36.0	35.6	68.9	66.2
Canada
Revenue
Revenue	39.7	30.9	78.5	62.7
Rest of World
Revenue
Revenue	$ 33.9	$ 30.9	$ 67.0	$ 64.5

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Costs of sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Costs of sales
Cost of stream sales	$ 25.0	$ 25.7	$ 55.4	$ 52.7
Cost of prepaid ounces		1.8		3.7
Mineral production taxes	0.6	0.8	1.2	1.1
Energy operating costs	1.8	1.5	3.2	2.5
Total costs of sales	$ 27.4	$ 29.8	$ 59.8	$ 60.0

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Related party disclosures (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related party disclosures
Short-term benefits	$ 0.8	$ 0.9	$ 1.6	$ 1.6
Share-based payments	2.0	1.9	3.4	2.4
Total	$ 2.8	$ 2.8	$ 5.0	$ 4.0

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Finance income and expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Finance income
Interest	$ 1.2	$ 0.7	$ 1.9	$ 1.7
Finance income	1.2	0.7	1.9	1.7
Finance expenses
Interest	1.7		3.6
Standby charges	0.6	0.5	0.9	1.2
Amortization of debt issue costs	0.2	0.3	0.4	0.5
Accretion of lease liabilities			0.1
Finance expense	$ 2.5	$ 0.8	$ 5.0	$ 1.7

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Income taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income taxes
Current income tax expense	$ 11.7	$ 5.4	$ 21.4	$ 12.8
Deferred income tax expense	2.0	5.7	5.3	11.8
Total income tax expense	$ 13.7	$ 11.1	$ 26.7	$ 24.6

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Shareholders’ equity - Common Shares (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 31, 2019
Shareholders’ equity
Proceeds from exercise of stock options			$ 2,500,000
Salares Norte Royalty Interest
Shareholders’ equity
Number of common shares issued in acquisition (in share)					366,499
Common shares
Shareholders’ equity
Shares issued	187,408,583		187,408,583
Shares outstanding	187,408,583		187,408,583
Shares, par value (dollars per share)	$ 0		$ 0
Proceeds from exercise of stock options	$ 1,500,000	$ 0	$ 2,500,000	$ 0
Common shares issued from dividend reinvestment plan	147,257	134,531	281,362	248,185
Exercise of stock options	47,400	0	68,241	0
Common shares | Salares Norte Royalty Interest
Shareholders’ equity
Number of common shares issued in acquisition (in share)					366,499
Value of common shares issued in acquisition					$ 27,000,000
Preferred shares
Shareholders’ equity
Shares issued	0		0

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Shareholders’ equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Shareholders’ equity
Dividends declared	$ 47.4	$ 44.6	$ 92.3	$ 87.9
Dividend declared per share	$ 0.25	$ 0.24	$ 0.49	$ 0.47
Cash dividends paid	$ 35.1	$ 35.0	$ 70.0	$ 70.6
Share dividends paid - DRIP	$ 12.3	$ 9.6	$ 22.3	$ 17.3

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Shareholders’ equity - Stock-based payments - Assumptions & Options (Details) - Stock options - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock-based payments
Expenses related to stock options	$ 1.2	$ 1.4	$ 2.6	$ 2.6
Capitalized to royalty, stream and working interest, net	$ 0.3	$ 0.0	$ 0.4	$ 0.3

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Earnings per share (“EPS”) (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares
Earnings per share
Basic EPS - Earnings | $	$ 64.0	$ 53.6	$ 129.2	$ 118.2
Basic EPS - (in shares)	187,200,000	186,000,000	187,100,000	186,000,000
Basic EPS (in dollars per share) | $ / shares	$ 0.34	$ 0.29	$ 0.69	$ 0.64
Effect of dilutive securities - (in shares)	300,000	300,000	300,000	300,000
Effect of dilutive securities - (in dollars per share) | $ / shares				(0.01)
Diluted EPS - Earnings | $	$ 64.0	$ 53.6	$ 129.2	$ 118.2
Diluted EPS - (in shares)	187,500,000	186,300,000	187,400,000	186,300,000
Diluted EPS (in dollars per share) | $ / shares	$ 0.34	$ 0.29	$ 0.69	$ 0.63
Stock options
Earnings per share
Securities excluded from computation of diluted EPS (in shares)	251,613	97,789	251,613	97,789
Restricted shares
Earnings per share
Securities excluded from computation of diluted EPS (in shares)	69,442	73,762	69,442	73,762

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Segment Reporting - Financials (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) item	Jun. 30, 2018 USD ($)
Segment Reporting
Number of operating segments | item			2
Revenue	$ 170.5	$ 161.3	$ 350.3	$ 334.4
Income/(expenses)
Costs of sales	27.4	29.8	59.8	60.0
Depletion and depreciation	58.9	59.6	119.8	120.2
Gross profit	84.2	71.9	170.7	154.2
Other operating (income)/expenses
General and administrative expenses	5.6	7.0	12.5	12.2
Gain on sale of gold bullion	(0.4)		(0.8)	(0.3)
Foreign exchange (gain) and other income (expense)		0.1		(0.5)
Income before finance items and income taxes	79.0	64.8	159.0	142.8
Finance items (Note 13)
Finance income	1.2	0.7	1.9	1.7
Finance expenses	(2.5)	(0.8)	(5.0)	(1.7)
Net income before income taxes	77.7	64.7	155.9	142.8
Operating Segments
Segment Reporting
Revenue	170.5	161.3	350.3	334.4
Income/(expenses)
Costs of sales	27.4	29.8	59.8	60.0
Depletion and depreciation	58.1	58.8	118.1	118.6
Gross profit	85.0	72.7	172.4	155.8
Other operating (income)/expenses
General and administrative expenses	5.6	7.0	12.5	12.2
Gain on sale of gold bullion	(0.4)		(0.8)	(0.3)
Depreciation	0.8	0.8	1.7	1.6
Foreign exchange (gain) and other income (expense)		0.1		(0.5)
Income before finance items and income taxes	79.0	64.8	159.0	142.8
Finance items (Note 13)
Finance income	1.2	0.7	1.9	1.7
Finance expenses	(2.5)	(0.8)	(5.0)	(1.7)
Net income before income taxes	77.7	64.7	155.9	142.8
Operating Segments | Mining Segment
Segment Reporting
Revenue	142.9	138.6	301.9	292.7
Income/(expenses)
Costs of sales	25.6	28.3	56.6	57.5
Depletion and depreciation	46.7	49.7	97.3	102.4
Gross profit	70.6	60.6	148.0	132.8
Operating Segments | Energy Segment
Segment Reporting
Revenue	27.6	22.7	48.4	41.7
Income/(expenses)
Costs of sales	1.8	1.5	3.2	2.5
Depletion and depreciation	11.4	9.1	20.8	16.2
Gross profit	$ 14.4	$ 12.1	$ 24.4	$ 23.0

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Fair value measurements (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair value measurements
Transfer from Level 1 to 2 of financial assets	$ 0
Transfer from Level 2 to 1 of financial assets	0
Transfer from Level 1 to 2 of financial liabilities	0
Transfer from Level 2 to 1 of financial liabilities	0
Transfers Into Level 3 of financial assets	0
Transfers Out of Level 3 of financial assets	0
Transfers Into Level 3 of financial liabilities	0
Transfers Out of Level 3 of financial liabilities	0
Assets	5,358,700,000	$ 4,931,800,000
Recurring Basis
Fair value measurements
Financial assets, at fair value	205,400,000	145,900,000
Recurring Basis | Level 1
Fair value measurements
Financial assets, at fair value	187,900,000	132,800,000
Recurring Basis | Level 2
Fair value measurements
Financial assets, at fair value	13,600,000	9,200,000
Recurring Basis | Level 3
Fair value measurements
Financial assets, at fair value	3,900,000	3,900,000
Non recurring Basis
Fair value measurements
Financial assets, at fair value		14,600,000
Non recurring Basis | Level 3
Fair value measurements
Financial assets, at fair value		14,600,000
Receivables from provisional concentrate sales | Recurring Basis
Fair value measurements
Financial assets, at fair value	12,600,000	8,500,000
Receivables from provisional concentrate sales | Recurring Basis | Level 2
Fair value measurements
Financial assets, at fair value	12,600,000	8,500,000
Equity investments | Recurring Basis
Fair value measurements
Financial assets, at fair value	191,800,000	136,700,000
Equity investments | Recurring Basis | Level 1
Fair value measurements
Financial assets, at fair value	187,900,000	132,800,000
Equity investments | Recurring Basis | Level 3
Fair value measurements
Financial assets, at fair value	3,900,000	3,900,000
Warrants | Recurring Basis
Fair value measurements
Financial assets, at fair value	1,000,000	700,000
Warrants | Recurring Basis | Level 2
Fair value measurements
Financial assets, at fair value	$ 1,000,000	700,000
Royalty stream and working interests | Non recurring Basis
Fair value measurements
Financial assets, at fair value		14,600,000
Royalty stream and working interests | Non recurring Basis | Level 3
Fair value measurements
Financial assets, at fair value		$ 14,600,000

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Contingencies (Details) $ in Millions, $ in Millions, $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 MXN ($)	Dec. 31, 2018 CAD ($)	Dec. 31, 2018 USD ($)
Contingencies
Income taxes paid	$ 25.1	$ 16.0
Canada Revenue Agency Reassessment Action
Contingencies
Provincial income taxes assessed				$ 10.7	$ 8.2
Income taxes paid			$ 154.3		$ 12.1
Tax rate (as a percent)			30.00%	30.00%	30.00%
Contingent liability recorded	$ 1.6

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Subsequent events (Details) $ in Millions			6 Months Ended	12 Months Ended
	Aug. 06, 2019 USD ($)	Jul. 22, 2019 USD ($) a	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Aug. 05, 2019 USD ($)	Jul. 19, 2019 USD ($)
Subsequent events
Repayment of credit facility			$ 210.0	$ 27.0
Amount outstanding			$ 435.0	$ 210.0
Subsequent repayment under credit facility
Subsequent events
Repayment of credit facility	$ 50.0
Amount outstanding	$ 225.0				$ 275.0
Marcellus Shale Royalties Pennsylvania
Subsequent events
Purchase price		$ 300.0
Percentage of gross production less deduction		1.00%
Net acres of production | a		350,000
Royalty generated		$ 9.0
Subsequent authorization for issuance of shares from treasury to public
Subsequent events
Maximum value of shares that can be issued from treasury to the public						$ 200.0