Mr. Paul Brink reports

FRANCO-NEVADA REPORTS Q2 2023 RESULTS

Franco-Nevada Corp. has released its second quarter 2023 results (in U.S. dollars unless otherwise noted).

"Our portfolio continues to generate strong cash flows and high margins. The second quarter's results benefited from our core assets returning to normal production and deliveries caught up from the disruptions in Q1. Revenue from our diversified assets was impacted by lower oil, gas and iron ore prices compared to the relative highs of the prior-year period," stated Paul Brink, chief executive officer. "We expect total GEOs for the year to be at the low end of our guidance range provided in March this year. We are looking forward to increased contributions from Cobre Panama, where the CP100 expansion is on track for year-end, and to contributions from royalties on several new mines. Franco-Nevada is debt free and is growing its cash balances."

Strong financial position:

• No debt and $2.3-billion in available capital as at June 30, 2023;
• Generated $261.9-million in operating cash flow during the quarter;
• 16 consecutive annual dividend increases; quarterly dividend of 34 cents per share.

Sector-leading ESG (environmental, social and governance):

• Global 50 top-rated and No. 1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG;
• Committed to the World Gold Council's responsible gold mining principles;
• Partnering with the company's operators on community and ESG initiatives;
• Goal of 40-per-cent diverse representation at the board and top leadership levels as a group by 2025.

Diverse, long-life portfolio:

• Most diverse royalty and streaming portfolio by asset, operator and country;
• Core precious metal streams on world-class copper assets outperforming acquisition expectations;
• Long-life reserves and resources.

Growth and optionality:

• Mine expansions and new mines driving five-year growth profile;
• Long-term optionality in gold, copper and nickel, and exposure to some of the world's great mineral endowments;
• Strong pipeline of precious metal opportunities.

In Q2 2023, Franco-Nevada earned $329.9-million in revenue, down 6.4 per cent from Q2 2022, as the impact of lower commodity prices for the company's diversified assets more than offset the increase in revenue from its precious metal assets. With Cobre Panama and Antapaccay operating at full production levels following the temporary disruptions in early 2023, both assets generated strong deliveries in Q2 2023. Partly offsetting the impact of lower oil and gas prices, during the quarter, Franco-Nevada received catch-up royalty payments of approximately $7.0-million related to new wells primarily at its Permian interests, which are not expected to reoccur.

Precious Metal revenue accounted for 78.6 per cent of Franco-Nevada's revenue (64.8 per cent gold, 10.7 per cent silver, 3.1 per cent PGM (platinum group metal)). Revenue was sourced 88.9 per cent from the Americas (32.1 per cent South America, 26.2 per cent Central America and Mexico, 17.5 per cent United States, and 13.1 per cent Canada).

Environmental, social and governance updates

During the quarter, Franco-Nevada contributed to the producer partnership, a Sibanye-Stillwater sponsored initiative that aims to end hunger in Montana, and to the i-80 Fund, which supports small businesses in rural northern Nevada. Franco-Nevada also partnered with Perpetua Resources to support social capacity building at the Stibnite gold project and made a strategic level partnership commitment to the Canadian Institute of Mining, Metallurgy and Petroleum. Franco-Nevada continues to rank highly with leading ESG rating agencies.

Portfolio additions:

• Acquisition of royalty on Pascua-Lama project -- Chile: Subsequent to the quarter-end, Franco-Nevada agreed to acquire a sliding-scale gold royalty and fixed-rate copper royalty from private individuals pertaining to the Chilean portion of Barrick's Pascua-Lama project for a purchase price of $75.0-million. At gold prices exceeding $800 per ounce, Franco-Nevada will hold a 2.70-per-cent NSR (net smelter return) (gold) and 0.54-per-cent NSR (copper) on the property.
• Acquisition of royalty on Volcan old project -- Chile: Subsequent to quarter-end, on July 6, 2023, Franco-Nevada agreed to acquire a 1.5-per-cent NSR on the Volcan gold project, located in Chile, for a purchase price of $15.0-million. The project is owned by Tiernan Gold Corp., a company privately held by Hochschild Mining PLC. The NSR covers the entire land package comprising the Volcan project as well as a surrounding area of interest extending 1.5 kilometres. Franco-Nevada already hold an existing 1.5-per-cent NSR on the peripheral Ojo de Agua area, which is owned by Tiernan and forms part of the Volcan project.
• Acquisition of additional royalty interest on Caserones -- Chile: During the six months ended June 30, 2023, Franco-Nevada acquired, through two separate transactions, an incremental effective NSR totalling 0.1120 per cent on Lundin Mining's Caserones copper-molybdenum mine, located in Chile, for an aggregate purchase price of $9.4-million. Inclusive of Franco-Nevada's interest of 0.4582 per cent acquired in April, 2022, the company now holds an 0.57-per-cent effective NSR on Caserones.
• Acquisition agreement for new royalties with EMX Royalty Corp.: On June 27, 2023, Franco-Nevada executed a binding term sheet with EMX Royalty for the joint acquisition of newly created precious metals and copper royalties sourced by EMX. Franco-Nevada will contribute 55 per cent (up to $5.5-million) and EMX will contribute 45 per cent (up to $4.5-million) toward the royalty acquisitions, with the resulting royalty interests equally split on a 50/50 basis.
• Acquisition of royalties on exploration properties -- Nevada and Arizona, U.S.: On June 15, 2023, Franco-Nevada acquired a portfolio of eight royalties on exploration properties, located in the states of Nevada and Arizona, including a 0.5-per-cent NSR on Integra Resources' Wildcat and Mountain View gold projects, for a purchase price of $2.5-million.
• Acquisition of additional royalty on Valentine gold project and private placement with Marathon Gold Corp. -- Newfoundland, Canada: On June 8, 2023, Franco-Nevada acquired an additional 1.5-per-cent NSR on Marathon's Valentine gold project, located in Newfoundland, for a purchase price of $45.0-million. Inclusive of Franco-Nevada's initial 1.5-per-cent NSR (reduced from 2.0 per cent following Marathon's buyback of 0.5 per cent in February, 2023), the company now holds an aggregate 3.0-per-cent NSR on the project. Subsequent to the quarter-end, on July 5, 2023, Franco-Nevada also acquired 6,578,947 common shares of Marathon at a price of 76 Canadian cents per common share for an aggregate of $3.8-million ($5.0-million (Canadian)), comprising the back-end of a non-brokered charity flow-through offering.
• Share subscription with Gold Candle Ltd.: Subsequent to the quarter-end, on July 26, 2023, Franco-Nevada completed the previously announced subscription for common shares of Gold Candle, a private company, for an aggregate purchase price of $4.6-million ($6.0-million (Canadian)). Gold Candle owns the Kerr-Addison project, located in Virginiatown, Ont., over which Franco-Nevada holds a 1-per-cent NSR.

Q2 2023 portfolio updates

Precious Metal assets: GEOs (gold equivalent ounces) sold from Franco-Nevada's precious metal assets were 132,033, compared with 131,574 GEOs in Q2 2022, as operations at Cobre Panama and Antapaccay successfully returned to full production, contributing strong deliveries to Franco-Nevada during the quarter.

South America:

• Antapaccay (gold and silver stream): GEOs delivered and sold were significantly higher in Q2 2023 compared with Q2 2022. Operations returned to normalized levels in March following the temporary suspension of operations and constrained logistics experienced in early 2023 as a result of political tensions in Peru. In addition, production at Antapaccay during the period benefited from higher copper grades and recoveries based on mine sequencing. Glencore continues to study the Coroccohuayco expansion project at its Antapaccay mine. The Coroccohuayco deposit, located within 10 kilometres (km) of the Antapaccay plant, is currently scoped as an open pit and hosts measured and indicated mineral resources of 643 million tonnes with a copper grade of 0.60 per cent.
• Antamina (22.5-per-cent silver stream): GEOs delivered and sold were lower in Q2 2023 compared with Q2 2022, as operations at Antamina were affected by Cyclone Yaku, a tropical cyclone that affected Peru's northern region in March, 2023. The effect of the cyclone carried into April, 2023, production and, as a result, Franco-Nevada anticipates its deliveries of silver ounces in Q3 2023 to be lower than initially expected.
• Candelaria (gold and silver stream): While gold production at Candelaria was lower in Q2 2023 than in the prior-year period, Franco-Nevada's GEOs delivered and sold during the quarter were slightly higher due to the timing of shipments.
• Tocantinzinho (gold stream): In Q2 2023, Franco-Nevada financed $93.1-million of its $250.0-million stream deposit on the Tocantinzinho project, for a total of $183.8-million disbursed as at June 30, 2023. G Mining Ventures reported that the physical construction of the project was 27 per cent complete as of the end of May, 2023, and remains on track for commercial production in the second half (H2) of 2024.
• Salares Norte (1-per-cent to 2-per-cent royalty): Total project completion was 90 per cent as of the end of March, 2023, and Gold Fields expects commencement of commercial production in Q4 2023.

Central America and Mexico:

• Cobre Panama (gold and silver stream): Operations at Cobre Panama ramped back up to full production in Q2 2023, following an interruption due to export restrictions in Q1 2023. Production for the quarter also benefited from additional processing facilities related to the CP100 expansion project and Franco-Nevada received strong deliveries from Cobre Panama. GEOs delivered and sold in Q2 2023 exceeded those from Q2 2022. Following a public consultation process, the refreshed concession contract was signed by the government of Panama and First Quantum on June 26, 2023, and is expected to be presented before the National Assembly of Panama during the current legislative term that commenced on July 1, 2023.
• Guadalupe-Palmarejo (50-per-cent gold stream): GEOs sold from Guadalupe-Palmarejo decreased in Q2 2023 compared with the same quarter in 2022, due to lower production at the mine and a lesser proportion of production being sourced from ground covered by Franco-Nevada's stream.

United States:

• Stillwater (5-per-cent royalty): Production at the mine was impacted by an incident that damaged shaft infrastructure in March, 2023, which was remediated in April, 2023. The decrease in GEOs also reflects a less favourable PGM to gold GEO conversion ratio.
• Goldstrike (2-per-cent to 6-per-cent royalties): Barrick reported that production returned to normal throughput in Q2 2023. Production in the first four months of 2023 had been impacted by maintenance, capital projects and weather conditions.
• Marigold (0.5-per-cent to 5-per-cent royalties): Production at Marigold was higher in Q2 2023 compared with Q2 2022 as a result of mine sequencing. In addition, Franco-Nevada's GEOs earned were higher than in the prior-year period primarily due to mining occurring on higher royalty ground.
• Copper World project (2.085-per-cent royalty): Hudbay announced a positive permitting update from the Army Corps of Engineers in April, 2023, and that the required state level permits continue to be expected in 2023. A prefeasibility study for phase I of the Copper World project is expected in 2023.

Canada:

• Detour Lake (2-per-cent royalty): Agnico Eagle indicated that the mill set a record for quarterly throughput and that the continued focus on mill process optimization and availability is tracking well to reach and potentially exceed throughput of 28.0 million tonnes per annum. Agnico Eagle is expecting to complete an underground mining scenario study in H1 2024.
• Kirkland Lake (1.5-per-cent to 5.5-per-cent royalty and 20-per-cent net profit interest (NPI)): Agnico Eagle reported record quarterly mill throughput at the Macassa mine, supported by the new ventilation system and commissioning of shaft No. 4. Exploration drilling during the quarter targeted the main break and eastern extension of the south mine complex. Drilling is also continuing at the AK deposit in 2023, where production could potentially begin in 2024.
• Canadian Malartic (1.5-per-cent royalty): Agnico Eagle reported that underground development and surface activities at the Odyssey project are progressing well. Drilling activities were focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west.
• Magino (2-per-cent royalty): Argonaut Gold reported that it poured first gold at the Magino mine in June, 2023, and that the process plant ramp-up remains on schedule, with commercial production expected in Q3 2023.
• Island Gold (0.62-per-cent royalty): Alamos Gold reported that the phase 3-plus expansion is progressing well with the construction of the hoist house largely complete, the head frame well under way and shaft sinking on track to start in Q4 2023. The phase 3-plus expansion is expected to more than double gold production to an average of 287,000 ounces per year starting in 2026.
• Greenstone (Hardrock) (3-per-cent royalty): Equinox Gold reported that construction of the project is on schedule and budget, with construction 83 per cent complete as of the end of June, 2023, and first gold pour expected in H1 2024.
• Valentine Gold (3-per-cent royalty): Construction was 15 per cent complete as of the end of June, 2023. Marathon reported that the project remains on schedule for first gold production in Q1 2025.
• Eskay Creek (1.5-per-cent royalty): Skeena Resources announced an updated mineral resource estimate in June, 2023, with estimated pit-constrained measured and indicated mineral resources of 5.6 million contained gold equivalent ounces (50.1 million tonnes grading at 2.57 grams per tonne (g/t) of gold and 63.63 g/t of silver). The announcement also includes a preliminary assessment of the mineral resources for underground potential proximal to the planned pit.

Rest of the world:

• Tasiast (2-per-cent royalty): Production at Tasiast benefited from higher grades, improving recoveries and increased throughput. Kinross reported that construction and initial commissioning at the Tasiast 24k project are complete. The operation is expected to ramp up for the remainder of the year to consistently achieve 24,000 tonnes per day.
• Subika (Ahafo) (2-per-cent royalty): Newmont reported it expects to reach higher grade and tonnes mined from the Subika underground mine, in addition to higher ore tonnes mined and improved grade at the Subika open pit.
• Seguela (1.2-per-cent royalty): Fortuna Silver Mines reported the Seguela mine poured first gold in May, 2023, and produced 4,023 ounces during the initial ramp-up weeks of Q2 2023.
• Yandal (Bronzewing) (2-per-cent royalty): Northern Star Resources reported that ore from the Orelia pit was processed for the first time during the quarter as feed for the expanded Thunderbox mill. The Thunderbox mill expansion, which doubles capacity to six million tonnes per annum, was completed in December, 2022, and commissioning is under way.

Diversified assets: Franco-Nevada's diversified assets, primarily comprising its iron ore and energy interests, generated $70.7-million in revenue, down from $108.5-million in Q2 2022. The decrease is primarily due to lower oil, gas and iron ore prices compared with the relative highs of the prior-year period.

Iron ore and other mining:

• Vale royalty (iron ore royalty): Revenue from the Vale royalty decreased compared with Q2 2022 due to lower estimated iron ore prices as well as lagging sales to production, which are expected to normalize in H2 2023.
• Labrador Iron Ore Royalty Corp. (LIORC): Production at Iron Ore Company of Canada was impacted by a 3.5-week shutdown due to wildfires in Northern Quebec.
• Caserones (0.57-per-cent effective NSR): Lundin Mining completed the acquisition of a 51-per-cent majority interest in Caserones in July, 2023. Franco-Nevada earned revenue of $2.5-million in Q2 2023, compared with $1.2-million in Q2 2022.

Energy:

• U.S. (various royalty rates): Revenue from Franco-Nevada's U.S. energy interests decreased compared with Q2 2022, largely due to lower realized oil and gas prices. Partly offsetting the impact of lower prices, Franco-Nevada received approximately $7.0-million in royalty payments related to new wells primarily at its Permian assets, which are not expected to reoccur.
• Canada (various royalty rates): Revenue from Franco-Nevada's Canadian Energy interests decreased compared with Q2 2022, also due to the decrease in commodity prices. For Franco-Nevada's Weyburn NRI (net royalty interest), the impact of lower prices was partly offset by lower operating and capital expenditures incurred at the Weyburn unit.

Dividend declaration

Franco-Nevada's board of directors has declared a quarterly dividend of 34 U.S. cents per share. The dividend will be paid on Sept. 28, 2023, to shareholders of record on Sept. 14, 2023. The dividend has been declared in U.S. dollars and the Canadian-dollar equivalent will 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 (DRIP), which allows shareholders of Franco-Nevada to reinvest dividends to purchase additional common shares at the average market price, as defined in the DRIP, subject to a discount from the average market price in the case of treasury acquisitions. Pursuant to the terms of the DRIP, the company has changed the discount applicable to the average market price from 3 per cent to 1 per cent, effective from the dividend payable on March 30, 2023. The company may, from time to time, in its discretion, further 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. Participation in the DRIP is optional. The DRIP and enrolment forms are available on the company's website. Canadian and U.S. registered shareholders may also enroll in the DRIP on-line through the plan agent's self-service web portal. Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrolment. Non-Canadian and non-U.S. shareholders may potentially 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.

Shareholder information

The complete unaudited condensed consolidated financial statements and management's discussion and analysis can be found on Franco-Nevada's website, on SEDAR+ and on EDGAR.

Franco-Nevada will host a conference call to review its Q2 2023 results. Interested investors are invited to participate as follows.

Conference call and webcast

Date and time:  Aug. 9, 10 a.m. ET

Dial-in numbers

Toll-free:  1-888-390-0546

International:  416-764-8688

Participants may join the conference call by phone without operator assistance. Participants will receive an automated callback after entering their name and phone number on-line.

Webcast:  A webcast will be available on the company's website.

Replay (available until Aug. 16)

Toll-free:  1-888-390-0541

International:  416-764-8677

Passcode:  828736 followed by the pound key

Franco-Nevada is the leading gold-focused royalty and streaming 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 cost inflation. Franco-Nevada is debt free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto Stock Exchange and New York Stock Exchange. Franco-Nevada is the gold investment that works.

GEOs: GEOs include Franco-Nevada's attributable share of production from its mining and energy assets after applicable recovery and payability factors. GEOs are estimated on a gross basis for NSRs 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. Silver, platinum, palladium, iron ore, oil, gas and other commodities are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. The 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 price for the month, quarter or year in which the commodity was produced or sold. For Q2 2023, the average commodity prices were as follows: $1,978 per ounce (oz) gold (Q2 2022 -- $1,872); $24.18 per oz silver (Q2 2022 -- $22.64); $1,028 per oz platinum (Q2 2022 -- $957); $1,449 per oz palladium (Q2 2022 -- $2,092); $112 per tonne (t) iron (Fe), 62-per-cent CFR China (Q2 2022 -- $143); $73.78 per barrel (bbl) West Texas intermediate (WTI) oil (Q2 2022 -- $108.41); and $2.32 per thousand cubic feet (mcf) Henry Hub natural gas (Q2 2022 -- $7.49). For H1 2023 prices, the average commodity prices were as follows: $1,933 per oz gold (H1 2022 -- $1,873); $23.37 per oz silver (H1 2022 -- $23.29); $1,011 per oz platinum (H1 2022 -- $993); $1,508 per oz palladium (H1 2022 -- $2,207); $118 per t Fe, 62-per-cent CFR China (H1 2022 -- $142); $74.95 per bbl WTI oil (H1 2022 -- $101.35); and $2.54 per mcf Henry Hub natural gas (H1 2022 -- $6.03).

Non-GAAP (generally accepted accounting principles) financial measures

Adjusted net income and adjusted net income per share, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA per share, and adjusted EBITDA margin are non-GAAP financial measures with no standardized meaning under international financial reporting standards (IFRS) and might not be comparable with similar financial measures disclosed by other issuers. For a quantitative reconciliation of each non-GAAP financial measure to the most directly comparable IFRS financial measure, refer to the attached tables. Further information relating to these non-GAAP financial measures is incorporated by reference from the non-GAAP financial measures section of Franco-Nevada's MD&A for the three and six months ended June 30, 2023, dated Aug. 8, 2023, filed with the Canadian securities regulatory authorities on SEDAR+ and with the U.S. Securities and Exchange Commission, available on EDGAR.

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

Adjusted EBITDA and adjusted EBITDA per share are non-GAAP financial measures, which exclude the following from net income and EPS: income tax expense/recovery; finance expenses and finance income; depletion and depreciation; non-cash costs of sales; impairment charges and reversals related to royalty, stream and working interests, and investments; gains/losses on the sale of royalty, stream and working interests, and investments; foreign exchange gains/losses and other income/expenses; and unusual non-recurring items.

Adjusted EBITDA margin is a non-GAAP financial measure, which is defined by the company as adjusted EBITDA divided by revenue.

We seek Safe Harbor.