EX-99.1 2 fnv-20211231xex99d1.htm EX-99.1

Exhibit 99.1

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TABLE OF CONTENTS

Page

GENERAL MATTERS

1

FORWARD LOOKING STATEMENTS

1

EXCHANGE RATE INFORMATION

4

COMMODITY PRICE INFORMATION

4

THE CORPORATION

4

GENERAL DEVELOPMENT OF FRANCO-NEVADA’S BUSINESS

5

EXPLANATION OF ROYALTIES, STREAMS AND OTHER INTERESTS

13

TECHNICAL AND THIRD-PARTY INFORMATION

15

FRANCO-NEVADA’S ASSETS

17

ANTAMINA MINING AND TECHNICAL INFORMATION

23

ANTAPACCAY MINING AND TECHNICAL INFORMATION

29

CANDELARIA MINING AND TECHNICAL INFORMATION

34

COBRE PANAMA MINING AND TECHNICAL INFORMATION

42

RISK FACTORS

49

DIVIDENDS

63

CAPITAL STRUCTURE

63

MARKET FOR SECURITIES

64

DIRECTORS AND OFFICERS

65

LEGAL PROCEEDINGS AND REGULATORY ACTIONS

69

INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

69

REGISTRAR AND TRANSFER AGENT

69

MATERIAL CONTRACTS

69

EXPERTS

69

ADDITIONAL INFORMATION

69

AUDIT AND RISK COMMITTEE INFORMATION

70

APPENDIX A FRANCO-NEVADA CORPORATION AUDIT AND RISK COMMITTEE CHARTER

A-1

i


GENERAL MATTERS

Unless otherwise noted or the context otherwise indicates, the terms “Franco-Nevada”, “FNV”, “Company”, “Corporation”, “our” and “we” refer to Franco-Nevada Corporation and its subsidiaries.  For reporting purposes, the Corporation presents its financial statements in United States dollars and in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).  All dollar amounts in this Annual Information Form (“AIF”) are expressed in United States dollars, except as otherwise indicated.  References to “US$”, “$” or “dollars” are to United States dollars, references to “C$” are to Canadian dollars and references to “A$” are to Australian dollars.

The information contained in this AIF is as of December 31, 2021, unless otherwise indicated.  More current information may be available on our public website at www.franco-nevada.com or on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com or on the website of the United States Securities and Exchange Commission (the “SEC”) at www.sec.gov.  In addition, we generally maintain supporting materials on our website which may assist in reviewing (but are not to be considered part of) this AIF including Franco-Nevada’s most recent Asset Handbook and Environmental, Social and Governance (ESG) Report (which contains a discussion of environmental, social and governance issues, including climate change), and a glossary of non-technical and technical terms.

FORWARD LOOKING STATEMENTS

This AIF 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, performance guidance, 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, the performance and plans of third-party operators, audits being conducted by the Canada Revenue Agency (“CRA”), the expected exposure for current and future assessments 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 its at-the-market equity program (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 including reserves and resources covered by a royalty, stream or other interest, gold equivalent ounces (“GEOs”) or mine lives 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, mine lives 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”, “potential for”, “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: the price at which common shares are sold in the ATM Program and the aggregate net proceeds received by the Corporation as a result of the ATM Program; 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; the adoption of a global minimum tax on corporations; 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; relinquishment or sale of mineral properties; 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 disease; the impact of the COVID-19 (coronavirus) pandemic; and the integration of acquired assets.  The forward looking statements contained in this AIF 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; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; 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; 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.  In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or the Company’s exposure as a result thereof.  Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements.  Accordingly, 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 this AIF filed with the Canadian securities regulatory authorities on www.sedar.com and the SEC on www.sec.gov.  The forward looking statements herein are made as of the date of this AIF 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.

CAUTIONARY NOTE REGARDING MINERAL RESERVE AND RESOURCE ESTIMATES

This AIF has been prepared in accordance with the requirements of Canadian securities laws in effect in Canada, which differ from the requirements of U.S. securities laws.  Unless otherwise indicated, all mineral resource and reserve estimates included in this AIF have been prepared by the owners or operators of the relevant properties (as and to the extent indicated by them) in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian securities regulatory authorities which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 permits a historical estimate made prior to the adoption of NI 43-101 that does not comply with NI 43-101 to be disclosed using the historical terminology if, among other things, the disclosure: (a) identifies the source and date of the historical estimate; (b) comments on the relevance and reliability of the historical estimate; (c) states whether the historical estimate uses categories other than those prescribed by NI 43-101; and (d) includes any more recent estimates or data available.

Mining disclosure under U.S. securities law was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934, as amended. The SEC has adopted rules to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (“Regulation S-K 1300”) which became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. Under Regulation S-K 1300, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards. Readers are cautioned that despite efforts to harmonize U.S. mining disclosure rules with NI 43-101 and other international requirements, there are differences between the terms and definitions used in Regulation S-K 1300 and mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards, which definitions have been adopted by NI 43101, and there is no assurance that any mineral reserves or mineral resources that an owner or operator may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the owner or operator prepared the reserve or resource estimates under the standards of Regulation S-K 1300.

Certain reserve or resource estimates of U.S. reporting companies presented herein (notably those of Vale S.A.) have been prepared in accordance with SEC Industry Guide 7. Canadian standards, including NI 43-101, differ significantly from the requirements under SEC Industry Guide 7, and reserve and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under SEC Industry Guide 7, mineralization could not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards did not normally permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” in documents filed with the SEC in compliance with SEC Industry Guide 7. U.S. investors are cautioned that “inferred mineral resources” have a lower level of confidence than that applying to “indicated mineral resources” and cannot be directly converted to a “mineral reserve”. It is reasonably expected that the majority of “inferred mineral resources” could be upgraded to “indicated mineral resources” with continued exploration. Under Canadian rules, estimated “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a mineral resource is permitted disclosure under Canadian regulations; however, SEC Industry Guide 7 normally only permitted issuers to report mineralization that does not constitute “reserves” under SEC Industry Guide 7 as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as under SEC Industry Guide 7, and reserves reported by the Corporation in compliance with NI 43-101 may not qualify as “reserves” under SEC Industry Guide 7. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that have reported in accordance with SEC Industry Guide 7.

2


In addition to NI 43-101, a number of resource and reserve estimates have been prepared in accordance with the JORC Code or the SAMREC Code (as such terms are defined in NI 43-101), which differ from the requirements of NI 43-101 and U.S. securities laws.  Accordingly, information containing descriptions of the Corporation’s mineral properties set forth herein may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.  For more information, see “Reconciliation to CIM Definitions”.

3


EXCHANGE RATE INFORMATION

The following table sets out the high and low rates of exchange for one U.S. dollar expressed in Canadian dollars during each of the following periods; the average rate of exchange for those periods; and the rate of exchange in effect at the end of each of those periods, each based on the exchange rate published by the Bank of Canada.

Years ended December 31,

 

    

2021(1)

    

2020(1)

    

2019(1)

 

High

$

1.2942

$

1.4496

$

1.3600

Low

$

1.2040

$

1.2718

$

1.2988

Average for the Period

$

1.2535

$

1.3415

$

1.3269

End of Period

$

1.2678

$

1.2732

$

1.2988

(1)

Based on the daily rate published by the Bank of Canada.

On March 16, 2022 the daily exchange rate was US$1.00 = C$1.2721 as published by the Bank of Canada.

COMMODITY PRICE INFORMATION

Spot Commodity Prices

    

Gold/oz

    

Silver/oz

    

Platinum/oz

    

Palladium/oz

    

Iron Ore/$ tonne

    

Oil/C$ bbl

    

Gas/C$ mcf

    

Oil/$ bbl

    

Gas/$ mcf

(LBMA Gold

(LBMA Silver

(London PM Fix)

(London PM Fix)

(62% Fe, CFR China)

(Edmonton Light)

(AECO-C)

(WTI)

(Henry Hub)

Price PM)

Price)

Average for 2019

$

1,392

$

16.20

$

863

$

1,539

$

93

$

69

$

1.70

$

57

$

2.53

Average for 2020

$

1,770

$

20.55

$

884

$

2,194

$

107

$

46

$

2.13

$

39

$

2.13

Average for 2021

$

1,800

$

25.17

$

1,091

$

2,397

$

160

$

80

$

3.43

$

68

$

3.72

THE CORPORATION

Name, Address and Incorporation

Franco-Nevada was incorporated under the Canada Business Corporations Act on October 17, 2007 and was amalgamated with Franco-Nevada Canada Corporation, its wholly-owned subsidiary, on January 1, 2008. Franco-Nevada’s head office and registered office is currently located at Suite 2000, Commerce Court West, 199 Bay Street, Toronto, Ontario  M5L 1G9.  Franco-Nevada has additional offices in (i) Hastings, Christ Church, Barbados, (ii) Denver, Colorado and (iii) Perth, Australia, all of which are used to manage its asset portfolio and pursue new investment opportunities.

Intercorporate Relationships

The chart below depicts significant subsidiaries that are wholly-owned by Franco-Nevada either directly or indirectly and are existing under the laws of the jurisdictions set out therein. Intermediate holding companies have been omitted.

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GENERAL DEVELOPMENT OF FRANCO-NEVADA’S BUSINESS

Overview

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of royalties and streams by commodity, geography, operator, revenue type and stage of project.

Franco-Nevada’s shares are listed on the Toronto and New York stock exchanges under the symbol FNV. An investment in Franco-Nevada’s shares is expected to provide investors with yield and exposure to commodity price and exploration optionality while limiting exposure to cost inflation and other operating risks.

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Our tag-line is “Franco-Nevada is the gold investment that works” and we are committed to ensuring it does work, for our shareholders, our operating partners and our communities:

We believe that combining lower risk gold investments with a strong balance sheet, progressively growing dividends and exposure to exploration optionality is the right mix to appeal to investors seeking to hedge market instability. Since our Initial Public Offering over 14 years ago, we have increased our dividend annually and our share price has outperformed the gold price and all relevant gold equity benchmarks.

We build long-term alignment with our operating partners. This alignment and the natural flexibility of our royalties and streams is an effective financing tool for the cyclical resource sector.

We work to be a positive force in all our communities, promoting responsible mining, providing a safe and diverse workplace and contributing to build community support for the operations in which we invest.

Our revenue is generated from various forms of agreements, ranging from net smelter return royalties, streams, net profits interests, net royalty interests, working interests and other types of arrangements. We do not operate mines, develop projects or conduct exploration. Franco-Nevada has a free cash flow generating business with limited future capital commitments and management is focused on managing and growing its portfolio of royalties and streams. We recognize the cyclical nature of the industry and have a long-term investment outlook. We maintain a strong balance sheet to minimize financial risk and so that we can make investments during commodity cycle downturns.

The advantages of this business model are:

Exposure to commodity price optionality;

A perpetual discovery option over large areas of geologically prospective lands;

No additional capital requirements other than the initial investment;

Limited exposure to cost inflation;

A free cash-flow business with limited cash calls;

5


A high-margin business that can generate cash through the entire commodity cycle;

A scalable and diversified business in which a large number of assets can be managed with a small stable overhead; and

Management that focuses on forward-looking growth opportunities rather than operational or development issues.

Our short-term financial results are primarily tied to the price of commodities and the amount of production from our portfolio of assets. Our attributable production has typically been supplemented by acquisitions of new assets.  Over the longer term, our results are impacted by the amount of exploration and development capital available to operators to expand or extend our producing assets or to progress our advanced and exploration assets into production.

The focus of our business is to create exposure to gold and precious metal resource optionality. This principally involves investments in gold mines and providing financing to copper and other base metal mines to obtain exposure to by-product gold, silver and platinum group metals production. We also invest in other metals and energy to expose our shareholders to additional resource optionality. In 2021, 76.6% of our revenue was earned from precious metals and 83.9% was earned from mining assets.

One of the strengths of Franco-Nevada’s business model is that our margins are not generally impacted when producer costs increase. The majority of our interests are royalty and streams with payments/deliveries that are based on production levels with no adjustments for the operator’s operating costs. In 2021, these interests accounted for 93.1% of our revenue. We also have a small number of NPI and NRI royalties which are based on the profit of the underlying operations.

Franco-Nevada currently operates a small organization.  As of March 17, 2022, Franco-Nevada has 35 full-time employees and 5 part-time contractors.  As such, Franco-Nevada is dependent upon the continued availability and commitment of its key management, whose contributions to the immediate and future operations of Franco-Nevada are of significant importance. From time to time, Franco-Nevada may also need to identify and retain additional skilled management and specialized technical personnel to efficiently operate its business.  For additional information, see “Risk Factors”.

Investment Process and Corporate Policies

Franco-Nevada currently does not operate any of the mining or diversified assets in which it has royalty, stream or other interests.  However, Franco-Nevada recognizes its business model is dependent on the industry operating in a responsible fashion and actively supports the industry in its efforts and initiatives, including the World Gold Council and its Responsible Gold Mining Principles and the Prospectors and Developers Association of Canada and its initiatives for responsible exploration. A detailed description of Franco-Nevada’s investment process and a discussion of environmental, social and governance issues, including climate change, is contained in Franco-Nevada’s most recent Environmental, Social and Governance (ESG) Report, which can be found on the Corporation’s website at www.franco-nevada.com but is not to be considered part of this AIF.

Franco-Nevada has adopted policies relating to its business conduct, including a code of business conduct and ethics, a business integrity policy, a whistleblower policy, a policy concerning confidentiality, fair disclosure and trading in securities, a human rights policy, a non-discrimination, anti-harassment and equal opportunity policy, a diversity and inclusion policy, an investment principles (environmental, social and governance) policy, a responsible gold mining principles policy, a supplier code of conduct, a corporate responsibility policy, a health and safety policy, and an information security policy.  Additional information relating to these and other policies can be found on the Corporation’s website at www.franco-nevada.com and are also contained in Franco-Nevada’s most recent Environmental, Social and Governance (ESG) Report and its management information circular for its annual and special meeting of shareholders scheduled to be held on May 4, 2022 which will be filed on SEDAR.

6


Three-Year History

2019

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.

Acquisition of Valentine Lake Royalty Interest – 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 US$7.0 million until December 31, 2022.

2019 ATM Program

On July 19, 2019, Franco-Nevada established an at-the-market equity program (the “2019 ATM Program”) whereby the Company was permitted to issue up to an aggregate of $200 million worth of common shares from treasury at prevailing market prices to the public through the Toronto Stock Exchange, the New York Stock Exchange or any other marketplace on which the common shares were listed, quoted or otherwise trade.

In 2019, the Company issued 1,433,400 common shares under the 2019 ATM Program at an average price per common share of $96.56. The gross proceeds to the Company from these issuances were $138.4 million, and the net proceeds were $136.0 million after deducting agent commission costs of $1.4 million and other share issuance costs of $1.0 million.  The 2019 ATM Program was replaced in 2020 by the Company’s new at-the-market equity program (as described below).

Acquisition of Marcellus Royalty Interest – U.S.A.

On July 22, 2019, Franco-Nevada acquired from Range Resources Corporation (“Range”) an overriding royalty interest on acreage in the Marcellus shale play in Pennsylvania 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 royalty provides exposure to a significant inventory of undeveloped drilling locations that is expected to be capable of supporting cash flow for several decades. The royalty is registered on title and is a direct interest in real property.

Acquisition of Premier Gold Royalty Interests – Canada and U.S.A.

On September 25, 2019, Franco-Nevada acquired two royalties from Premier Gold Mines Limited for $6.0 million, including a 2% NSR on property owned by Newmont Corporation adjoining its Musselwhite Mine in Northwestern Ontario and a 1.5% NSR on Nevada Gold Mines LLC’s Rain/Emigrant and Saddle properties located at the south end of the Carlin Trend in Nevada.

Acquisition of Project 81 Royalty Interest and Noble Common Shares – Canada

On November 22, 2019, Franco-Nevada acquired a 2% NSR on Noble Mineral Exploration’s (“Noble”) 55,000 hectare patented land package known as Project 81 in the Timmins-Cochrane area of Ontario, Canada, in exchange for Franco-Nevada agreeing to waive its pre-emptive and buy-back rights in respect of a historical third-party royalty on Project 81, which was subsequently terminated. Franco-Nevada’s 2% NSR covers the Crawford Nickel-Sulphide Project, which was spun out by Noble to Canada Nickel Company Inc. (“CNC”).  As part of the arrangement, Noble issued C$500,000 of its common shares to Franco-Nevada and Franco-Nevada subsequently received CNC common shares as part of the aforementioned Crawford spin out.

Acquisition of Eagle’s Nest Royalty Interest and Extension of Noront Loan – Canada

On December 23, 2019, Franco-Nevada acquired a 1% gross royalty on Noront Resources Ltd.’s (“Noront”) Eagle’s Nest nickel, copper and PGM deposit in the Ring of Fire mining district of Ontario, Canada, for C$5.0 million ($3.8 million).

Franco-Nevada also extended the term of its $25 million loan to Noront to September 30, 2022, from its original maturity of April 28, 2020, under substantially the same terms and conditions, although the loan must be repaid upon a change of control. The loan bears annual interest at 7%, and amounted to $39.7 million including accrued interest as at December 31, 2021.

2020

Acquisition of Island Gold Royalty Interest – Canada

On March 20, 2020, Franco-Nevada acquired an existing 0.62% NSR on Alamos Gold Inc.’s Island Gold project in Finan Township in the Province of Ontario for $13.4 million (C$19.0 million).

7


At-the-Market Equity Program

On May 11, 2020, the Company established a new at-the-market equity program (the “ATM Program”) permitting the Company to issue up to an aggregate of $300 million worth of common shares from treasury at prevailing market prices to the public 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 2019 ATM Program, which permitted the Company to issue up to an aggregate of $200 million worth of common shares, was terminated on April 28, 2020 when the Company renewed its base shelf prospectus.

For 2020, the Company issued 1,054,800 common shares under the ATM Program and the 2019 ATM Program at an average price per common share of $128.96. The gross proceeds from these issuances were $136.0 million, and the net proceeds were $133.7 million after deducting agent commission costs of $1.4 million and other share issuance costs of $0.9 million. During the year ended December 31, 2021, the Company did not issue any common shares under its ATM Program.

Acquisition of Freeport Royalty Portfolio Interests

On September 1, 2020, the Company acquired a portfolio of 24 royalties from Freeport-McMoRan Inc. for $30.6 million in cash. The portfolio includes prospective royalties over Wallbridge Mining Co. Ltd.’s Fenelon, Martiniere and Northway-Noyon projects. It also includes producing royalties on Industrias Peñoles, S.A.B.de C.V.’s Milpillas copper mine in Sonora, Mexico, and on Ormat Technologies Inc.’s Neal Hot Spring geothermal operation in Oregon.

Acquisition of Alpala Royalty – Northern Ecuador

On September 11, 2020, the Company completed a royalty transaction with SolGold plc (“SolGold”) to acquire a 1% NSR with reference to all minerals produced from the Alpala copper-gold-silver project in northern Ecuador for $100.0 million. The Alpala project is owned by Exploraciones Novomining SA, which is held 85% by SolGold and 15% by Cornerstone Capital Resources Inc. SolGold has the option to buy-back 50% of the royalty for a period of time. Franco-Nevada is entitled to receive certain minimum royalty payments from 2028 and also has the option to convert the NSR to a gold-only NSR for a period of time once Alpala is producing. The NSR covers the Cascabel concession.

Acquisition of Rio Baker (Salares Norte) Royalty – Chile

On September 23, 2020, the Company, through a wholly-owned subsidiary, acquired an existing 2% NSR on all mineral production from Gold Fields’ Rio Baker concessions in Chile for $5.0 million cash with contingent payments of up to $8.0 million. With this acquisition, the Company now has exposure to 100% of the Salares Norte deposit. The royalty agreement is subject to a 0.5% buy-back at any time for $4.0 million.

Amendment of Sabodala Gold Stream Agreement – Senegal

On September 25, 2020, the Company, through a wholly-owned subsidiary, amended its existing Sabodala gold purchase and sale agreement with Teranga Gold Corporation (“Teranga”) to compensate the Company for displacement that will be caused by the processing of Massawa ore through the Sabodala processing facilities and to provide for certain protocols for the commingling of Sabodala and Massawa ores. Teranga acquired a 90% interest in the Massawa project from Barrick Gold Corporation on March 4, 2020.

The amended agreement provides that effective September 1, 2020, Teranga will make fixed deliveries of 783.33 ounces of refined gold per month until 105,750 ounces of gold have been delivered to the Company (the “Fixed Delivery Period”) and 6% of production from the stream area thereafter. Following the Fixed Delivery Period, a reconciliation will be conducted to determine if the Company would have received more or less than 105,750 ounces of gold under the 6% variable stream during such period.  Teranga will be entitled to a credit for an over-delivery which will be applied against the 6% variable stream until depleted and the Company will be entitled to a one-time additional delivery in the case of an under-delivery.

Acquisition of U.S. Oil & Gas Royalty Rights – U.S.A.

Effective October 1, 2020, the Company, through a wholly-owned subsidiary, acquired a royalty portfolio in the Haynesville natural gas play in Texas, from Mesa Minerals Partners LLC, a Quantum Energy Partners portfolio company, for $135 million. The Haynesville represents one of the most active gas plays in North America. The royalties are located in Harrison and Panola counties, which represent a core area of the East Texas part of the basin, where Rockcliff Energy II LLC is the primary operator.  The royalties are derived principally from mineral title which provides a perpetual interest in royalty lands.

2021

Acquisition of Condestable Gold and Silver Stream – Peru

On March 8, 2021, the Company closed, through a wholly-owned subsidiary, a precious metals stream agreement with reference to the gold and silver production from the Condestable mine in Peru, for an up-front deposit of $165.0 million. The Condestable mine is located approximately 90 kilometers south of Lima, Peru, and is owned and operated by a subsidiary of Southern Peaks Mining LP (“SPM”), a private company. Commencing on January 1, 2021 and ending December 31, 2025, Franco-Nevada will receive 8,760 ounces of gold and 291,000 ounces of silver annually until a total of 43,800 ounces of gold and 1,455,000 ounces

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of silver have been delivered (the “Fixed Deliveries”). Thereafter, Franco-Nevada will receive 63% of the contained gold and contained silver produced until a cumulative total of 87,600 ounces of gold and 2,910,000 ounces of silver have been delivered (the “Variable Phase 1 Deliveries”). The stream then reduces to 25% of gold and silver produced in concentrate over the remaining life of mine (the “Variable Phase 2 Deliveries”). Franco-Nevada will pay 20% of the spot price for gold and silver for each ounce delivered under the stream (the “Ongoing Payment”). The stream has an effective date of January 1, 2021, with the first quarterly delivery received March 15, 2021.

Until March 8, 2025, subject to certain restrictions, a subsidiary of SPM may, at its option, make a one-time special delivery comprising the number of ounces of refined gold equal to $118.8 million at the then current spot price subject to the Ongoing Payment, to achieve the early payment of the Fixed Deliveries and Variable Phase 1 Deliveries. The Variable Phase 2 Deliveries would commence immediately thereafter.

Acquisition of Séguéla Royalty – Côte d'Ivoire

On March 30, 2021, the Company acquired a 1.2% NSR on Fortuna Silver Mines Inc.’s (“Fortuna”) Séguéla gold project in Côte d'Ivoire for $15.2 million (A$20.0 million). The royalty agreement is subject to a buy-back at the option of Fortuna of up to 50% of the royalty at a pro rata portion of the purchase price for a period of up to three years after closing.  

Acquisition of Vale Royalty – Brazil

On April 16, 2021, we acquired 57 million of Vale S.A.’s (“Vale”) outstanding participating debentures (the “Royalty”) for $538 million (R$3,049,500,000). The Royalty terms, on a 100% basis, provide for a 1.8% (0.264% attributable) net sales royalty on (i) iron ore sales from Vale’s Northern System, including the Serra Norte, Serra Sul and Serra Leste operations, and (ii) an estimated 70% of iron ore sales capacity from Vale’s Southeastern System, in the medium term, including from the Itabira, Minas Centrais (Brucutu) and Mariana (Fazendão) mining complexes. The Southeastern System will start contributions under the Royalty once a cumulative sales threshold of 1.7 Bt of iron ore has been reached, currently forecast by Vale to be achieved between 2024 and 2025. The Royalty also provides for a 2.5% (0.367% attributable) net sales royalty on certain copper and gold assets and 1.25% (0.183% attributable) in the case of the Sossego mine. Additionally, the Royalty provides for a 1% (0.147% attributable) net sales royalty on all other minerals (covered mining rights include prospective deposits for other minerals including zinc and manganese, amongst others), subject to certain thresholds. The 1% rate (0.147% attributable) also applies to net proceeds in the event of an underlying asset sale.

Royalty payments are declared on a semi-annual basis on March 31st and September 30th of each year reflecting sales in the preceding half calendar year period.

The transaction was financed with a combination of cash on hand and a draw of $150.0 million on our $1 billion corporate revolving credit facility. The amount drawn was fully repaid by June 30, 2021.

Investment in Labrador Iron Ore Royalty Corporation – Canada

The Company has accumulated a 9.9% equity investment in Labrador Iron Ore Royalty Corporation (“LIORC”). The position was acquired over a number of years for a total investment of $74.2 million (C$93 million), representing an average cost of $11.72 (C$14.72) per share. The investment in LIORC functions similar to a royalty given the flow through of revenue generated from LIORC’s underlying 7% gross overriding royalty interest, C$0.10 per tonne commission, and 15.1% equity interest in Iron Ore Company of Canada’s (“IOC”) Carol Lake mine, operated by Rio Tinto. LIORC normally pays cash dividends from net income derived from IOC to the maximum extent possible, while maintaining appropriate levels of working capital. The dividends the Company receives from LIORC are reflected in revenue from the Company’s Diversified assets and included in the calculation of GEOs sold.

Acquisition of Rosemont/Copper World Royalty Interest – U.S.A.

On November 26, 2021, the Company acquired from certain private sellers, through a wholly-owned subsidiary, an existing 0.585% NSR royalty interest on Hudbay Minerals Inc.’s (“Hudbay”) Rosemont copper project. With the acquisition of this royalty, which has identical terms as the Company’s existing 1.5% NSR royalty and covers the same land package, including most of the Copper World deposits, the Company now has a 2.085% NSR over the project.

The total consideration for the 0.585% NSR royalty interest was up to $19.5 million, comprised of $7.0 million paid on closing of the transaction, and up to $12.5 million in contingent payments upon achievement of certain milestones at Rosemont and/or the Copper World deposits.

Investment in Skeena Resources Limited (Eskay Creek) – Canada

On December 23, 2021, for the aggregate purchase price of $17.2 million (C$22.1 million), (i) the Company acquired 1,471,739 common shares of Skeena Resources Limited (“Skeena”), (ii) the Company entered into an agreement with Skeena to amend the terms of the Company’s existing 1% NSR royalty agreement such that the existing royalty will now cover substantially all of the Eskay Creek gold-silver project (“Eskay Creek”) land package, including all currently known mineralized zones, and  (iii) Skeena granted the Company a right of first refusal (the “ROFR”) over the sale of a 0.5% NSR royalty (the “0.5% NSR Royalty”) on Eskay Creek.

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If Skeena has not sold the 0.5% NSR Royalty by October 2, 2023, the Company will have the right to purchase the 0.5% NSR Royalty for C$22.5 million.

Acquisition of U.S. Oil & Gas Royalty Rights with Continental Resources, Inc.

Through a wholly-owned subsidiary, the Company has a strategic relationship with Continental Resources, Inc. (“Continental”) to acquire, through a jointly-owned entity (the “Royalty Acquisition Venture”), royalty rights within Continental’s areas of operation. In 2021, the Company recorded contributions to the Royalty Acquisition Venture of $22.4 million. As at December 31, 2021, the Company’s cumulative investment in the Royalty Acquisition Venture totaled $428.4 million and the Company has remaining commitments of $91.6 million.

Credit Facilities

On July 9, 2021, the Company renewed its $1.0 billion unsecured revolving term credit facility (the “Corporate Revolver”) under substantially the same terms, extending the maturity date from March 22, 2024 to July 9, 2025. In April 2021, the Company drew down $150.0 million from the Corporate Revolver to finance part of the acquisition cost of the Vale Royalty Debentures. The amount drawn was fully repaid by June 30, 2021. As at December 31, 2021, there were no amounts borrowed against the Company’s revolving credit facilities. The Company has posted security in the form of standby letters of credit in the amount of $18.2 million (C$23.1 million) in connection with the audit by the CRA. The standby letters of credit reduce the available balance under the Corporate Revolver.

On March 16, 2021, Franco-Nevada (Barbados) Corporation amended its $100.0 million unsecured revolving credit facility (the “FNBC Revolver”) to extend the term by an additional year. The FNBC Revolver has a maturity date of March 20, 2022. However, the Company does not intend to renew the term of the FNBC Revolver, such that the facility will not be available to draw on after March 20, 2022.

Cobre Panama Constitutional Proceedings

In relation to the ongoing constitutional proceedings in connection with Minera Panama SA’s (“MPSA”) mining concession contract, First Quantum Minerals Ltd. (“First Quantum”) reported that, in July 2021, the Government of Panama announced the appointment of a high-level commission of senior government ministers and officials, chaired by the Minister of Commerce, to discuss First Quantum’s concession contract. In September 2021, the Supreme Court upheld its ruling in respect of the clarification motions presented by First Quantum to the Court in relation to its Law 9 decision announced in September 2018 and the ruling was gazetted in Q4 2021. First Quantum’s understanding is that the upholding of the unconstitutionality ruling against Law 9 of 1997 does not have retroactive effects, pursuant to article 2573 of the Code of Judicial Proceedings of Panama, therefore the approval of the mining concession contract which occurred in 1997 with the enactment of Law 9, remains unaltered, providing operation continuity as per status quo. In September 2021, the Ministry of Commerce publicly announced the culmination of the high-level formal discussions on two topics being environmental and labour matters.  

During January 2022, the Government of Panama tabled a new proposal, namely that the Government should receive $375 million in benefits per year from Cobre Panama and that the existing revenue royalty payable to the Government will be replaced by a gross profit royalty. The parties continue to finalize the detail behind these proposed principles, including the appropriate mechanics that would achieve the desired outcome, the necessary protections to First Quantum’s business for downside copper price impact and production scenarios and ensuring that the new contract and legislation are both durable and sustainable.  

Once an agreement is concluded and the full contract is documented, it is expected that newly drafted legislation would be put to the National Assembly. First Quantum noted that it welcomes the transparency of the robust ministerial commission process and it is hopeful that this matter can be concluded shortly.  

Franco-Nevada does not expect the current proposal to have a material impact on future deliveries pursuant to our stream agreement.

CRA Review

The CRA is conducting an audit of Franco-Nevada’s 2012-2017 taxation years and has issued a series of reassessments to the Company and certain of its subsidiaries. A description of the matters and amounts at issue is included in the notes to Franco-Nevada’s financial statements for the year ended December 31, 2021.

2022 Guidance and 5-Year Outlook

The following contains forward looking statements about our guidance for 2022 and 5-year outlook.  Reference should be made to the “Forward Looking Statements” section at the beginning of this AIF.  For a description of material factors that could cause our actual results to differ materially from the forward looking statements below, please see the “Forward Looking Statements” section of this AIF and the “Risk Factors” section of this AIF filed with the Canadian securities regulatory authorities on www.sedar.com and our most recent Form 40-F filed with the SEC on www.sec.gov.  The 2022 guidance and 5-year outlook are based on assumptions including the forecasted state of operations from our assets based on the public statements and other disclosures by the third-party owners and operators of the underlying properties and our assessment thereof.

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2021 was a year of significant growth for Franco-Nevada, with record revenue and a 27.0% year-over-year increase in total GEOs. In 2022, we anticipate a slightly lower production profile in comparison to 2021, as detailed below:

  

 

2022 guidance

 

 

2021 Actual

 

 

2020 Actual

 

Total Gold & Gold Equivalent Ounce sales

680,000 - 740,000

728,237

573,347

Precious Metal Gold & Gold Equivalent Ounce sales

510,000 - 550,000

558,397

511,677

(1)We expect our streams to contribute between 385,000 and 425,000 of our GEO sales. For the year ended December 31, 2021, 418,982 of our GEOs sold were from streams.
(2)For our 2022 guidance and 5-year outlook as set out below, when reflecting revenue earned from gold, silver, platinum, palladium, iron ore, oil and gas commodities to GEOs, we assumed the following prices: $1,800/oz Au, $23.00/oz Ag, $1,000/oz Pt, $2,100/oz Pd, $125/tonne Fe 62% CFR China, $85/bbl WTI oil and $3.75/mcf Henry Hub natural gas.
(3)Our 2022 guidance and 5-year outlook as set out below do not assume any other acquisitions and do not reflect any incremental revenue from additional contributions we may make to the Royalty Acquisition Venture with Continental as part of our remaining commitment of $91.6 million.

Precious Metals

South America: For Candelaria, we expect between 60,000 and 70,000 GEOs sold, relatively consistent with GEOs sold in 2021. While we expect production to benefit from initiatives to debottleneck the plant pebble crushing circuit, the effect of these initiatives are not expected to be realized until early 2023. For Antapaccay, we anticipate production to decrease from 62,411 GEOs in 2021 to between 47,500 and 57,500 GEOs due to expected lower grades based on the sequencing of the life of mine plan. For Antamina, in 2021, we benefited from strong silver production, realizing sales of 3.8 million silver ounces in the year. For 2022, we anticipate deliveries to revert to the higher end of our long-term expected range of 2.8 million to 3.2 million silver ounces.

Central America & Mexico: Copper production at Cobre Panama is expected to increase with First Quantum announcing guidance of between 330,000 and 360,000 tonnes in 2022, up from 331,000 tonnes produced in 2021. However, while copper production at the mine is expected to increase, we expect deliveries of gold and silver ounces to Franco-Nevada to be between 120,000-140,000 GEOs, relatively consistent with 2021. Our deliveries in 2021, which totaled 131,062 GEOs, included ounces that had been produced in Q4 2020 but where shipment was delayed to Q1 2021. For Guadalupe-Palmarejo, we expect a decrease in GEOs for 2022, to between 35,000 and 45,000 GEOs, as GEO production in 2021 was particularly strong due to higher mill throughput and significant production sourced from ground covered by our stream.

United States: While we expect relatively consistent PGM production at Stillwater, we anticipate that lower platinum and palladium prices will convert to fewer GEOs than in 2021 based on the commodity prices we assumed for our 2022 guidance. We also expect fewer GEOs from Goldstrike, as payments received in 2021 included $7.1 million in royalties related to prior periods which are not expected to recur in 2022.

Canada: We expect lower royalties from our Hemlo NPI as production shifts away from our royalty ground. We anticipate this decrease to be partly offset by higher production from McCreedy West based on the life of mine plan, and by the resumption of royalty payments from our NPI on Musselwhite.

Rest of World: We anticipate increased production from our Subika (Ahafo) royalty, as production from Ahafo is expected to increase to 650,000 ounces in 2022, up from 481,000 ounces in 2021. In addition, Franco-Nevada expects a larger proportion of production to be sourced from ground covered by our royalty. Production at Tasiast is also expected to increase significantly as the mine has returned to full production after a mill fire in June 2021, and continues to incrementally increase throughput capacity to 24,000 tonnes per day.

Diversified

Iron ore: We benefited from record iron ore prices in 2021. Our Vale Royalty generated GEOs that achieved the high-end of our expected range and LIORC paid the highest amount of dividends of any year since we acquired our equity stake in 2015. Iron ore prices have decreased from the record highs in mid-2021. We have assumed $125/tonne 62% Fe benchmark iron ore prices for 2022, slightly below recent spot prices. At these prices, we expect our Diversified Mining assets to contribute between 35,000 and 55,000 GEOs, compared to 52,584 GEOs in 2021.

Energy: Our Energy assets were significant contributors to our 2021 revenue as a result of the rally in oil and gas prices in the year, generating 117,256 GEOs in 2021. For 2022, we have assumed commodity prices of $85/bbl WTI for oil and $3.75/mcf Henry Hub for natural gas which are below recent spot prices. Based on these prices, we expect between 125,000 and 145,000 GEOs from our Energy assets. Production from our U.S. assets is expected to be consistent with volumes produced in 2021. Recently acquired royalties under our Royalty Acquisition Venture with Continental are expected to provide additional volume contribution. This is expected to be partly offset by a decrease in production from the Midland basin, which performed particularly well in 2021 due to the drilling of a number of new high-royalty wells on our acreage. Underlying performance from our Canadian assets is expected to remain stable, however, the Weyburn NRI volumes, which are accounted for net of operating and capital costs, should benefit from strong commodity prices.

Depletion:  We estimate depletion and depreciation expense in 2022 to be between $270.0 million and $300.0 million, compared to depletion and depreciation expense of $299.6 million in 2021.

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Capital commitments: As of December 31, 2021, our remaining capital commitment to the Royalty Acquisition Venture with Continental is $91.6 million.

5-Year Outlook

We expect our portfolio to produce between 765,000 and 825,000 GEOs by 2026, of which 570,000 to 610,000 GEOs are expected to be generated from Precious Metal assets. This outlook assumes that Cobre Panama will have expanded its mill throughput capacity to 100 million tonnes per year during 2023. It also assumes the commencement of production at Salares Norte, Greenstone (Hardrock), Rosemont, Valentine Lake, and Eskay Creek, continued deliveries from Sudbury through 2026, and that the stream at MWS will have reached its cap in 2024.

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EXPLANATION OF ROYALTIES, STREAMS AND OTHER INTERESTS

A royalty is a payment to a royalty holder by a property owner or an operator of a property and is typically based on a percentage of the minerals or other products produced or the revenues or profits generated from the property. The granting of a royalty to a person usually arises as a result of: (i) paying part of the consideration payable to land owners, prospectors or junior mining companies for the purchase of their property interests; (ii) providing capital in exchange for granting a royalty; or (iii) converting a participating interest in a joint venture relationship into a royalty.

Royalties are not typically working interests in a property.  Therefore, depending on the nature of the royalty interest and the laws applicable to the royalty and project, the royalty holder is generally not responsible for, and has no obligation to contribute, additional funds for any purpose, including, but not limited to, operating or capital costs, or environmental or reclamation liabilities. Typically, royalty interests are established through a contract between the royalty holder and the property owner, although many jurisdictions permit the holder to also register or otherwise record evidence of a royalty interest in applicable mineral title or land registries. The unique characteristics of royalties may provide royalty holders with special commercial benefits not available to the property owner because the royalty holder may enjoy the upside potential of the property with reduced risk.

Revenue-based Royalties:  The majority of royalty revenues that Franco-Nevada receives are royalties based on revenues from the value of production. The key types of revenue-based royalties are described in general terms below:

Net Smelter Return (“NSR”) royalties are based on the value of production or net proceeds received by the operator from a smelter or refinery. These proceeds are usually subject to deductions or charges for transportation, insurance, smelting and refining costs as set out in the royalty agreement. For gold royalties, the deductions are generally minimal, while for base metal projects the deductions can be much more substantial. This type of royalty generally provides cash flow that is free of any operating or capital costs and environmental liabilities. A smaller percentage NSR in a project can effectively equate to the economic value of a larger percentage profit or working interest in the same project.

Gross Royalties (“GR”) or Gross Overriding Royalties (“GORR”) are based on the total revenue stream from the sale of production from the property with few, if any, deductions.  Some contracts refer to gross proceeds (“GP”) which have been characterized as comparable to GRs in this document.

Overriding Royalties (“ORR”) and Lessor or Freehold Royalties (“FH”) are based on the proceeds from gross production and are usually free of any operating, capital and environmental costs. These terms are usually applied in the oil & gas industry.

Profit-based Royalties: Franco-Nevada also receives a portion of its revenues from royalties that are calculated based on profits, as described below:

Net Profit Interest (“NPI”) is based on the profit realized after deducting costs related to production as set out in the royalty agreement.  NPI payments generally begin after payback of capital costs.  Although the royalty holder is generally not responsible for providing capital, covering operating losses or environmental liabilities, increases in production costs will affect net profits and royalties payable.

Net Royalty Interest (“NRI”) is paid net of operating and capital costs similar to an NPI.

Fixed Royalties:  Franco-Nevada has a small number of fixed royalties. These are royalties that are paid based on a set rate per tonne mined, produced or processed or even a minimum for a period of time rather than as a percentage of revenue or profits. These types of royalties are more common for iron ore, coal and industrial minerals and usually do not have exposure to changes in the underlying commodity price.

The royalty types listed above can include additional provisions that allow them to change character in different circumstances or have varying rates. Some examples are as follows:

Minimum Royalty (“MR”) is a provision included in some royalties that requires fixed payments at a certain level even if the project is not producing, or the project is producing at too low a rate to achieve the minimum.

Advance Minimum Royalty (“AMR”) is similar to an MR except that, once production begins, the minimum payments already paid are often credited against subsequent royalty payments from production that exceeds the minimum.

Sliding Scale Royalty (“Sliding Scale or ss”) refers to royalties where the royalty percentage is variable. Generally this royalty percentage is indexed to metal prices or a production threshold.  Generally, a minimum or maximum percentage would be applied to such a royalty.

Capped Royalty (“Capped”) refers to royalties that expire or cease payment after a particular cumulative royalty amount has been paid or a set production volume threshold or time period has been reached.

Royalties can be commodity specific and, for instance, apply only to gold or hydrocarbons or have varying royalty structures for different commodities from the same property. Royalties can be restricted or varied by metallurgy, ore type or even by stratigraphic

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horizon. Generally, the contract terms for royalties in the oil & gas business are more standardized than those found in the mineral business.

Streams:  Streams are distinct from royalties.  They are metal purchase agreements where, in exchange for an upfront deposit and ongoing payments for metal delivered, the holder purchases all or a portion of one or more metals produced from a mine, at a preset price.  In the case of gold, the agreements typically provide for the purchase price to be the spot price at the time of delivery with a fixed price per ounce (typically the lesser of (i) $400 per ounce with a small inflationary adjustment and (ii) the spot price at the time of delivery) or a percentage of the spot price for gold payable in cash (the “Ongoing Price”) and the balance paid by applying the upfront deposit.  Once the upfront deposit is fully applied, the purchase price is the Ongoing Price.  Precious metals streams are well suited to co-product production providing incentive to the operator to produce the precious metals.  Because streams can also be used as a form of financing a project, the stream structure may also help maintain the borrowing capacity for the project.  Streams can provide higher leverage to commodity price changes when structured with a fixed purchase price per ounce.

Working Interests (“WI”):  A working interest is significantly different than a royalty or stream in that a holder of a WI owns an undivided possessory interest in the land or leasehold itself, and is liable for its share of capital, operating and environmental costs, usually in proportion to its ownership percentage, and it receives its pro-rata share of revenue. Minority working or equity interests are not considered to be royalties because of the ongoing funding commitments, although they can be similar in their calculations to NPIs.

Example Economics of a Royalty (NSR or NPI) versus a Stream

The example below compares the value per ounce to Franco-Nevada of a 4% NSR, a 4% stream or a 4% NPI or WI. Assume for one ounce of gold, a sales price of $1,800, a “stream cost” of $400 per ounce and that the “all-in sustaining cost”(1) of the mine is $1,026 per ounce.

    

    

    

Developed

 

NSR

Stream

NPI or WI

 

One ounce sold at

$

1,800

$

1,800

$

1,800

Applicable cost

 

$

400

$

1,026

(1)  

Margin for calculation

$

1,800

$

1,400

$

774

NSR, Stream or NPI %

 

4

%  

 

4

%  

 

4

%  

Revenue per ounce to FNV

$

72

$

56

$

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(1)For applicable costs for a developed NPI or WI, Franco-Nevada is, for illustrative purposes, assuming Barrick Gold Corporation’s (“Barrick”) 2021 all-in sustaining cash cost measure, as Barrick is the operator of two assets at which Franco-Nevada has NPI interests.

Based on the above economics, a comparable percentage NSR is 2.3 times more valuable than an equivalent Developed NPI or WI and almost 1.3 times more valuable than a stream interest. The NSR provides the highest margins and most downside protection to changes in the commodity price. The stream provides commodity price leverage similar to a low cost operating company with certainty as to future costs. The NPI or WI provides the most leverage to commodity price.

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TECHNICAL AND THIRD-PARTY INFORMATION

Except where otherwise stated, the disclosure in this AIF relating to properties and operations on the properties in which Franco-Nevada holds royalty, stream or other interests is based on information publicly disclosed by the owners or operators of these properties and information/data available in the public domain as at March 11, 2022 (except where stated otherwise), and none of this information has been independently verified by Franco-Nevada.  Specifically, as a royalty or stream holder, Franco-Nevada has limited, if any, access to properties included in its asset portfolio.  Additionally, Franco-Nevada may from time to time receive operating information from the owners and operators of the properties, which it is not permitted to disclose to the public.  Franco-Nevada is dependent on the operators of the properties and their qualified persons to provide information to Franco-Nevada or on publicly available information to prepare disclosure pertaining to properties and operations on the properties on which Franco-Nevada holds royalty, stream or other interests and generally has limited or no ability to independently verify such information.  Although Franco-Nevada does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate.  Some information publicly reported by operators may relate to a larger property than the area covered by Franco-Nevada’s royalty, stream or other interest. Franco-Nevada’s royalty, stream or other interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.

Except where otherwise noted, the disclosure in this AIF relating to mineral reserve and mineral resource statements for individual properties is made as at December 31, 2021.  In addition, such numerical information presented in this AIF which has been derived from information publicly disclosed by owners or operators may have been rounded by Franco-Nevada and, therefore, there may be some inconsistencies between the significant digits presented in this AIF and the information publicly disclosed by owners and operators.

Franco-Nevada considers its stream interests in the Antamina project, the Antapaccay project, the Candelaria project and the Cobre Panama project to be its only material mining projects for the purposes of NI 43-101.  Franco-Nevada will continue to assess the materiality of its assets as new assets are acquired or move into production.  During 2022, Franco-Nevada intends to continue to evaluate whether the inclusion of the Summary of Mineral Reserves and Mineral Resources contained in this AIF should be continued to be included going forward.  For additional information, please refer to Franco-Nevada’s most recent Asset Handbook which can be found on our website.

Information contained in this AIF with respect to each of the Antamina project, the Antapaccay project, the Candelaria project and the Cobre Panama project has been prepared in accordance with the exemption set forth in section 9.2 of NI 43-101.

Unless otherwise noted, the disclosure contained in this AIF of a scientific or technical nature for the Antamina project is based on (i) the technical report entitled “Technical Report, Mineral Reserves and Resources, Antamina Deposit, Peru 2010” and dated January 31, 2011, which technical report was prepared for Compañía Minera Antamina S.A. (“CM Antamina”), and filed under Teck’s SEDAR profile on March 22, 2011; (ii) the news release dated February 2, 2022 of Glencore plc (“Glencore”) containing the Glencore 2021 Production Report, available on Glencore’s website, and which reports silver production for the Antamina project; and (iii) the information disclosed in the annual information form of Teck Resources Limited (“Teck”) dated February 23, 2022 and filed under Teck’s SEDAR profile on February 25, 2022.

The disclosure contained in this AIF of a scientific or technical nature for the Antapaccay project is based on (i) the information disclosed in the document entitled “Antapaccay Mining and Technical Information” and dated effective February 10, 2016, which document was prepared by Compañía Minera Antapaccay S.A. (“CM Antapaccay”), the owner and operator of the Antapaccay project and an indirect wholly-owned subsidiary of Glencore, available on CM Antapaccay’s website at www.glencoreperupublicaciones.com/publication/db414077; (ii) the Glencore Statement of Resources & Reserves as at December 31, 2021; and (iii) the news release dated February 2, 2022 of Glencore containing the Glencore 2021 Production Report, each of (ii) and (iii) available on Glencore’s website.

The disclosure contained in this AIF of a scientific or technical nature for the Candelaria project is based on (i) the technical report entitled “Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile” dated November 28, 2018 which technical report was prepared for Lundin Mining Corporation (“Lundin”) and filed under Lundin’s SEDAR profile on November 28, 2018 (the “Candelaria Technical Report”); (ii) the information disclosed in the annual information form of Lundin dated February 17, 2022 and filed under Lundin’s SEDAR profile on February 17, 2022; (iii) Lundin’s press release dated September 13, 2021 announcing Mineral Reserves and Mineral Resources as of June 30, 2021; and (iv) the management’s discussion and analysis of Lundin for the year ended December 31, 2021, dated as of February 17, 2022 and filed under Lundin’s SEDAR profile on February 17, 2022.

The disclosure contained in this AIF for the Cobre Panama project is based on (i) the technical report entitled “Cobre Panamá Project -- Colón Province, Republic of Panamá -- NI 43-101 Technical Report” and dated March 2019, which was prepared for First Quantum and filed under First Quantum’s SEDAR profile on March 29, 2019 (“Cobre Panama Technical Report”); (ii) the management’s discussion and analysis of First Quantum for the year ended December 31, 2021 and filed under First Quantum’s SEDAR profile on February 16, 2022; (iii) the information disclosed in the annual information form of First Quantum dated March

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29, 2021 and filed under First Quantum’s SEDAR profile on March 29, 2021; and (iv) the news release dated February 15, 2022 of First Quantum containing the year end 2021 results, and filed under First Quantum’s SEDAR profile on February 16, 2022.

The technical and scientific information contained in this AIF including relating to the Antamina project, the Antapaccay project, the Candelaria project and the Cobre Panama project was reviewed and approved in accordance with NI 43-101 by Phil Wilson, C.Eng., Vice President, Technical of the Corporation and a “Qualified Person” as defined in NI 43-101.

Reconciliation to CIM Definitions

In this AIF, Franco-Nevada has disclosed a number of resource and reserve estimates covering properties related to the mining assets that are not based on Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions, but instead have been prepared in reliance upon JORC, SAMREC, SEC Industry Guide 7, and S-K 1300 (collectively, the “Acceptable Foreign Codes”).  Estimates based on Acceptable Foreign Codes are recognized under NI 43-101 in certain circumstances.  

In each case, the mineral resources and mineral reserves reported in this AIF are based on estimates previously disclosed by the relevant property owner or operator, without reference to the underlying data used to calculate the estimates.  Accordingly, Franco-Nevada is not able to reconcile the resource and reserve estimates prepared in reliance on an Acceptable Foreign Code with that of CIM definitions.  Franco-Nevada previously sought confirmation from one of its technical advisory firms, that is comprised of engineers experienced in the preparation of resource and reserve estimates using CIM and each of the Acceptable Foreign Codes, of the extent to which an estimate prepared under an Acceptable Foreign Code would differ from that prepared under CIM definitions.  Franco-Nevada was advised that, while the CIM definitions are not identical to those of the Acceptable Foreign Codes, the resource and reserve definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar reserve and resource estimates.  Such advisors further confirmed, without reference to the procedures in which the estimates prepared using Acceptable Foreign Codes that are reproduced in this AIF were conducted, that in the course of their preparation of a resource or reserve estimate they would effectively use the same procedures to prepare and report the resource or reserve estimate regardless of the reliance on CIM or any of the Acceptable Foreign Codes.  Such advisors noted two provisos to this confirmation, being (i) SEC Industry Guide 7 prohibited the reporting of resources, and only permits reporting of reserves, and (ii) it was generally accepted practice that staff at the SEC expected to see metals prices based on historic three year average prices in connection with reserves reported in accordance with SEC Industry Guide 7, while each of CIM and the other Acceptable Foreign Codes permits the author of a resource or reserve estimate to use his or her discretion to establish a reasonable assumed metal price in such calculations.  See “Cautionary Note Regarding Mineral Reserve and Resource Reporting Estimates”.

16


FRANCO-NEVADA’S ASSETS

Franco-Nevada’s assets are categorized by commodity and stage of development.  By commodity, assets are characterized as “Precious Metals” or “Diversified”.  “Precious Metals” includes gold, silver, and PGM assets.  “Diversified” includes iron ore, other mining and energy assets (which encompass oil, gas and natural gas liquids).  “Producing” assets are those that have generated revenue from steady-state operations for Franco-Nevada or are expected to in the next year.  “Advanced” assets are interests on projects which are not yet producing, but where in management’s view, the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.  “Exploration” assets represent interests on projects where technical feasibility and commercial viability of extracting a mineral resource are not demonstrable.

Management uses the following criteria in its assessment of technical feasibility and commercial viability:

(i)

Geology: there is a known mineral deposit which contains mineral reserves or resources; or the project is adjacent to a mineral deposit that is already being mined or developed and there is sufficient geologic certainty of converting the deposit into mineral reserves or resources.

(ii)

Accessibility and authorization: there are no significant unresolved issues impacting the accessibility and authorization to develop or mine the mineral deposit, and social, environmental and governmental permits and approvals to develop or mine the mineral deposit appear obtainable.

For accounting purposes, the number of assets has been counted in different manners depending on the category.  Royalties on a producing or advanced property are generally counted as a single asset even if Franco-Nevada has multiple different royalties on the property, such as at the Goldstrike complex.  Streams covering a group of mines in close proximity and operated by a common operator such as the Sudbury streams have also been counted as one asset.  However, royalties and streams on producing properties that have significant co-products have been counted twice, such as the Robinson royalties for gold and copper or the Sudbury streams for gold and PGM.  Exploration royalties are simply counted by the number of royalty contracts and no effort has been made to consolidate royalties on the same property.  Franco-Nevada’s energy interests are subdivided into Producing Assets, which are assets that are currently producing oil or natural gas, or Exploration Assets, which are undeveloped assets that are not producing oil or natural gas.  Franco-Nevada’s energy interests consist of a variety of working interests and royalty interests which are derived from a large number of underlying leases, contractual agreements and mineral title covering land positions primarily in western Canada and Oklahoma, Pennsylvania and Texas in the United States.  For accounting purposes, these leases, contracts and mineral title have been grouped into distinct land areas and tabulated as individual assets.  In many cases, Franco-Nevada owns multiple royalties or working interests that pertain to the same land area, and in these circumstances, the interests are counted as a single asset.

As of March 17, 2022, Franco-Nevada estimates that it holds 222 precious metals assets and 183 diversified assets for a total of 405 assets.

Franco-Nevada Asset Tabulation at March 17, 2022

  

  

Precious Metals

  

  

Diversified

  

  

TOTAL

 

Producing

 

45

 

67

 

112

Advanced

 

36

 

7

 

43

Exploration

 

141

 

109

 

250

TOTAL

 

222

 

183

 

405

17


Summary of Mineral Reserves and Mineral Resources

The Mineral Reserves and Mineral Resources tabulated in this AIF reflect the most recent publicly disclosed figures by the operators of the assets (converted to a 100% basis where appropriate) in which Franco-Nevada has interests. However, Franco-Nevada’s interests often do not cover the entire Mineral Reserve and Mineral Resource that is publicly reported by the operator. This could be a result of the underlying agreement not applying to the entire property or due to the underlying agreement not applying to 100% of the disclosed Mineral Reserves and Mineral Resources. In such cases, Franco-Nevada is reporting either that portion of the Mineral Reserve and Mineral Resource covered by its interests or is providing its best approximation as to the appropriate percentage covered by Franco-Nevada’s interests.

Mineral Reserves

Est. % of Mineral

Proven

Probable

Proven & Probable

Reserves &

Tonnes

  

Grade

  

Contained

  

  

Tonnes

  

Grade

  

Contained

  

  

Tonnes

  

Grade

  

Contained

  

  

Resources Covered

GOLD - SOUTH AMERICA

Notes

000s

g/t

000 oz

000s

g/t

000 oz

000s

g/t

000 oz

by FNV Interest

Candelaria

 

3,4

 

540,929

 

0.12

 

2,100

 

134,645

 

0.16

 

700

 

675,574

 

0.12

 

2,700

80

%

Antapaccay

 

5

 

189,000

 

0.08

 

486

 

286,000

 

0.08

 

736

 

475,000

 

0.08

 

1,222

100

%

Condestable

6

20,546

 

0.19

 

128

7,376

 

0.18

 

42

27,922

 

0.19

 

170

100

%

Sossego

7

59,200

0.24

457

39,100

0.10

126

98,300

0.19

583

100

%

Cerro Moro

 

8

 

365

 

9.27

 

109

 

1,384

 

7.82

 

348

 

1,749

 

8.12

 

457

100

%

Salares Norte

9

21,079

5.13

3,476

21,079

5.13

3,476

100

%

Cascabel

10

100

%

Posse (Mara Rosa)

11

11,800

1.20

456

12,000

1.16

446

23,800

1.18

902

100

%

Taca Taca

12

 

408,300

 

0.13

 

1,750

 

1,350,200

 

0.08

 

3,337

 

1,758,500

 

0.09

 

5,087

 

100

%

CentroGold (Gurupi)

 

13

 

 

 

 

 

 

 

 

 

100

%

Calcatreu

14

 

 

 

 

 

 

 

 

 

 

100

%

San Jorge

15

 

 

 

 

 

 

 

 

 

 

100

%

Volcan

16

 

 

 

 

 

 

 

 

 

 

5

%

GOLD - CENTRAL AMERICA & MEXICO

Cobre Panama

 

17

 

236,000

 

0.11

 

835

 

2,790,500

 

0.07

 

6,270

 

3,026,600

 

0.07

 

7,104

100

%

Guadalupe-Palmarejo

 

2,18

 

3,406

 

2.26

 

247

 

11,012

 

1.80

 

637

 

14,418

 

1.91

 

884

86

%

GOLD - UNITED STATES

Carlin Trend

 

19

 

39,024

 

6.01

 

7,317

 

130,081

 

2.70

 

11,220

 

162,602

 

3.46

 

17,886

35

%

Marigold

 

20

 

 

 

 

203,800

 

0.52

 

3,410

 

203,800

 

0.52

 

3,410

97

%

Bald Mountain

 

21

 

 

 

 

40,980

 

0.60

 

798

 

40,980

 

0.60

 

798

95

%

Mesquite

 

22

 

34

 

0.79

 

1

 

30,264

 

0.48

 

470

 

30,298

 

0.48

 

471

100

%

Castle Mountain

23

 

84,910

 

0.55

 

1,498

 

172,990

 

0.48

 

2,670

 

257,900

 

0.51

 

4,168

 

100

%

Fire Creek/Midas

 

2,24

 

 

 

 

 

 

 

 

 

100

%

Hollister

 

2,25

 

 

 

 

 

 

 

 

 

100

%

Stibnite Gold

 

26

 

4,996

 

2.35

 

378

 

99,630

 

1.39

 

4,441

 

104,626

 

1.43

 

4,819

100

%

Sandman

 

27

 

 

 

 

 

 

 

 

 

 

100

%

Robinson

 

28

 

110,513

 

0.15

 

533

 

8,860

 

0.12

 

34

 

119,374

 

0.15

 

576

100

%

GOLD - CANADA

Detour Lake

 

29

 

80,269

 

1.13

 

2,917

 

493,044

 

0.76

 

12,117

 

573,313

 

0.82

 

15,034

100

%

Sudbury

30

not available

not available

not available

not available

Hemlo

 

31

 

360

 

4.79

 

55

 

6,100

 

5.19

 

1,000

 

6,400

 

5.16

 

1,100

20

%

Brucejack

 

32

 

2,400

 

7.90

 

600

 

12,000

 

8.40

 

3,300

 

14,400

 

8.30

 

3,900

100

%

Kirkland Lake

 

33

 

237

 

15.30

 

116

 

3,315

 

16.32

 

1,740

 

3,551

 

16.26

 

1,856

100

%

Dublin Gulch (Eagle)

 

34

 

30,000

 

0.71

 

694

 

118,000

 

0.63

 

2,366

 

148,000

 

0.64

 

3,061

100

%

Musselwhite

 

35

 

2,800

 

5.07

 

460

 

6,700

 

6.07

 

1,310

 

9,500

 

5.77

 

1,770

100

%

Timmins West

 

36

 

1,518

 

3.03

 

148

 

4,172

 

2.94

 

393

 

5,690

 

2.96

 

541

100

%

Canadian Malartic

 

37

 

42,932

 

0.84

 

1,160

 

57,516

 

1.28

 

2,376

 

100,510

 

1.09

 

3,534

9

%

Island Gold

38

834

 

9.33

 

250

3,278

 

10.33

 

1,088

4,112

 

10.12

 

1,338

90

%

Golden Highway - Holt Complex

 

39

 

 

 

 

 

 

 

 

 

100

%

Golden Highway - Hislop

 

40

 

 

 

 

 

 

 

 

 

100

%

Golden Highway - Aquarius

41

100

%

Greenstone (Hardrock)

 

42

 

5,623

 

1.28

 

232

 

129,700

 

1.27

 

5,307

 

135,323

 

1.27

 

5,538

100

%

Valentine Lake

43

29,700

1.46

1,400

17,400

 

1.17

 

700

47,100

 

1.36

 

2,100

100

%

Eskay Creek

44

13,500

4.25

1,850

12,900

2.46

1,020

26,400

3.37

2,870

100

%

Red Lake (Bateman)

45

 

339

 

5.76

 

63

 

3,223

 

5.52

 

572

 

3,563

 

5.54

 

635

 

100

%

Courageous Lake

46

 

12,000

 

2.41

 

1,000

 

79,000

 

2.17

 

5,500

 

91,000

 

2.20

 

6,500

 

100

%

Goldfields

 

47

 

 

 

 

 

 

 

 

 

100

%

Monument Bay

48

 

 

 

 

 

 

 

 

 

 

100

%

Red Mountain

 

49

 

2,194

 

6.68

 

471

 

351

 

5.51

 

62

 

2,545

 

6.52

 

534

100

%

Fenelon-Martiniere

50

100

%

GOLD - AUSTRALIA

Duketon

 

51

 

14,000

 

0.50

 

210

 

55,000

 

1.00

 

1,780

 

69,000

 

0.90

 

1,990

93

%

Matilda (Wiluna)

 

52

 

330

 

3.06

 

33

 

36,090

 

1.07

 

1,236

 

36,410

 

1.08

 

1,269

100

%

South Kalgoorlie

 

53

 

655

 

4.80

 

101

 

1,073

 

5.36

 

185

 

1,727

 

5.15

 

286

82

%

Yandal (Bronzewing)

54

 

3,600

 

2.00

 

234

 

11,891

 

1.50

 

557

 

15,491

 

1.60

 

791

 

100

%

Aphrodite

55

 

 

 

 

7,105

 

2.51

 

573

 

7,105

 

2.51

 

573

 

100

%

Red October

 

56

 

 

 

 

 

 

 

 

 

100

%

Henty

 

57

 

 

 

 

 

 

 

 

 

100

%

Bullabulling

58

 

 

 

 

 

 

 

 

 

 

50

%

Edna May

 

59

 

600

 

0.50

 

9

 

380

 

3.20

 

40

 

980

 

1.55

 

49

2

%

Glenburgh

60

 

 

 

 

 

 

 

 

 

 

100

%

GOLD - REST OF WORLD

MWS

 

61

 

50,000

 

0.24

 

390

 

164,900

 

0.26

 

1,358

 

214,900

 

0.25

 

1,749

 

fixed interest

Sabodala-Massawa Complex

 

62

 

17,300

 

1.25

 

696

 

60,100

 

2.12

 

4,101

 

77,400

 

1.93

 

4,796

42

%

Tasiast

 

63

 

48,563

 

1.30

 

1,961

 

63,910

 

2.20

 

4,443

 

112,473

 

1.80

 

6,404

100

%

Subika (Ahafo)

 

64

 

49,500

 

1.80

 

2,860

 

52,400

 

1.92

 

3,240

 

101,900

 

1.86

 

6,100

68

%

Karma

 

65

 

300

 

0.40

 

4

 

5,200

 

0.93

 

154

 

5,500

 

0.90

 

158

100

%

Edikan

 

66

 

14,100

 

1.06

 

480

 

22,300

 

1.17

 

837

 

36,400

 

1.13

 

1,318

100

%

Kiziltepe

67

466

2.06

31

451

 

2.65

 

38

926

 

2.39

 

71

100

%

Seguela

68

12,100

2.80

1,088

12,100

2.80

1,088

100

%

Perama Hill

 

69

 

3,088

 

4.03

 

400

 

9,410

 

2.81

 

850

 

12,498

 

3.11

 

1,250

100

%

Agi Dagi

70

 

1,450

 

0.76

 

36

 

52,911

 

0.66

 

1,130

 

54,361

 

0.67

 

1,166

 

100

%

Sissingue

 

71

 

3,800

 

1.51

 

184

 

700

 

2.58

 

58

 

4,600

 

1.64

 

242

100

%

TOTAL GOLD MINERAL RESERVES

 

35,339

 

99,679

 

134,323

18


Mineral Resources - Inclusive of Reserves

Mineral Resources

Est. % of Mineral

Measured (M)

Indicated (I)

(M)+(I)

Inferred

Reserves &

  

  

  

Tonnes

  

Grade

  

Contained

  

  

Tonnes

  

Grade

  

Contained

  

  

Contained

  

Tonnage

  

Grade

  

Contained

  

  

Resources Covered

GOLD - SOUTH AMERICA

Notes

000s

g/t

000 oz

000s

g/t

000 oz

000 oz

000s

g/t

000 oz

by FNV Interest

Candelaria

 

3,4

 

874,003

 

0.13

 

3,700

 

370,541

 

0.16

 

1,900

 

5,600

 

99,029

 

0.16

 

500

80

%

Antapaccay

 

5

 

266,000

 

0.08

 

684

 

1,009,000

 

0.08

 

2,595

 

3,279

 

238,000

 

0.05

 

383

100

%

Condestable

6

33,392

 

0.24

 

259

55,934

 

0.24

 

430

701

60,600

 

0.24

 

480

100

%

Sossego

7

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

100

%

Cerro Moro

 

1,8

 

542

 

7.98

 

139

 

2,144

 

6.31

 

435

 

574

 

1,488

 

4.73

 

226

95

%

Salares Norte

9

23,714

4.99

3,804

3,804

1,842

1.84

109

100

%

Cascabel

10

1,192,000

0.39

15,000

1,703,000

0.14

7,800

22,900

751,000

0.13

3,140

100

%

Posse (Mara Rosa)

11

14,000

1.20

510

19,000

1.10

640

1,200

100

0.60

2

100

%

Taca Taca

 

12

 

421,500

 

0.14

 

1,853

 

1,781,800

 

0.07

 

4,200

 

6,052

 

716,900

 

0.05

 

1,183

100

%

CentroGold (Gurupi)

 

13

 

 

 

 

21,000

 

1.90

 

1,300

 

1,300

 

7,300

 

1.80

 

410

100

%

Calcatreu

 

14

 

 

 

 

9,841

 

2.11

 

669

 

669

 

8,078

 

1.34

 

348

100

%

San Jorge

 

15

 

79,518

 

0.22

 

584

 

104,091

 

0.19

 

626

 

1,211

 

11,235

 

0.16

 

59

100

%

Volcan

 

16

 

105,918

 

0.74

 

2,513

 

283,763

 

0.70

 

6,368

 

8,881

 

41,553

 

0.50

 

671

5

%

GOLD - CENTRAL AMERICA & MEXICO

Cobre Panama

 

17

 

234,800

 

0.12

 

906

 

3,318,700

 

0.06

 

6,490

 

7,396

 

1,093,800

 

0.04

 

1,301

100

%

Guadalupe-Palmarejo

 

1,2,18

 

6,758

 

2.03

 

442

 

26,776

 

1.73

 

1,489

 

1,931

 

4,276

 

1.79

 

246

88

%

GOLD - UNITED STATES

Carlin Trend

 

19

 

82,927

 

4.68

 

12,683

 

276,423

 

2.20

 

19,512

 

30,894

 

110,569

 

2.10

 

7,480

35

%

Marigold

 

1,20

 

 

 

 

319,100

 

0.49

 

5,004

 

5,004

 

21,800

 

0.36

 

252

96

%

Bald Mountain

 

1,21

 

9,150

 

0.80

 

233

 

232,355

 

0.56

 

4,157

 

4,390

 

45,716

 

0.50

 

669

95

%

Mesquite

 

22

 

126

 

0.74

 

3

 

140,670

 

0.42

 

1,921

 

1,924

 

85,419

 

0.34

 

928