Press Release: Franco-Nevada Reports Record Q1 2026 Results

Dow Jones
Yesterday

Tom Albanese appointed Chair

(in U.S. dollars unless otherwise noted)

TORONTO, May 12, 2026 /PRNewswire/ - Franco-Nevada realized record financial results in the first quarter of 2026, driven by higher commodity prices, contributions from newly acquired assets, a partial buy-back and a refund from the Canada Revenue Agency. "The sharp rise in oil prices is expected to positively impact our Q2 revenues, while our royalty and streaming model is largely insulated from the impact of energy prices on cost inflation. Franco-Nevada is unique as a mining equity that benefits from rising oil prices. We look forward to further growth from new assets, additional contributions from Cobre Panamá and the potential for a full resumption of the mine", stated Paul Brink, President & CEO.

At today's AGM, David Harquail gave his last address as Chair before taking on the title of Chair Emeritus. The Board thanked David for leading the IPO of Franco-Nevada and for the tremendous shareholder value he created over the ensuing 18 years.

"After almost 40 years of being in the gold royalty business, I would like to thank all of the shareholders, portfolio managers, the analysts and brokers who believed in us and helped make this latest version of Franco-Nevada "the GOLD Investment that WORKS"", commented David Harquail. "In a world confronted by political volatility and financial market instability, having Franco-Nevada as a lower-risk gold investment that is insulated from inflation and with a strong balance sheet is the right business model. I am proud of the wealth that this strategy has generated for our shareholders and that Franco-Nevada today is a financial powerhouse. I am also proud of the strong management team and Board that is in place to continue to deliver decades more of dividends to shareholders."

Following the meeting, Tom Albanese was appointed as the independent non-executive Chair of its board of directors. Tom has most recently served as the Lead Independent Director of Franco-Nevada. He is a seasoned mining executive including prior CEO roles at both Rio Tinto plc and Vedanta Resources plc and many corporate director positions.

Financial Highlights -- Q1 2026 compared to Q1 2025

   -- $650.7 million in revenue, +77% -- new record. 
 
   -- 136,353 GEOs1 sold, +8%. 
 
   -- 126,020 Net GEOs1 sold, +11%. 
 
   -- $520.4 million in operating cash flow, +80% -- new record. Operating cash 
      flow included a $49.5 million refund from the CRA as a result of the 
      settlement reached in September 2025. 
 
   -- $591.9 million ($3.07/share) in Adjusted EBITDA2, +84% -- new records. 
 
   -- $468.6 million ($2.43/share) in net income, +123% -- new records. 
 
   -- $458.3 million ($2.38/share) in Adjusted Net Income2, +123% -- new 
      records. Adjusted Net Income included $55.1 million, or $0.28 per share, 
      from the Cascabel buy-backs (net of tax). 
 
   -- $3.4 billion in Available Capital3 as at March 31, 2026. 

GEOs Sold and Revenue

 
 Quarterly GEOs sold and 
 revenue by commodity 
                        Q1 2026                     Q1 2025 
               GEOs Sold          Revenue  GEOs Sold          Revenue 
                       #  (in millions)            #  (in millions) 
------------   ---------  ---------------  ---------  --------------- 
PRECIOUS 
METALS 
 Gold             91,158     $      436.9     85,523    $       245.9 
 Silver           23,618            113.5     12,490             37.0 
 PGM               3,204             17.7      2,610              7.8 
-------------  ---------  ----  ---------  ---------  ---  ---------- 
                 117,980     $      568.1    100,623    $       290.7 
 ------------  ---------  ----  ---------  ---------  ---  ---------- 
DIVERSIFIED 
 Iron ore          3,794     $       17.1      3,888    $        12.4 
 Other mining 
  assets           1,403              6.1      1,557              4.4 
 Oil               7,406             33.5     13,494             34.9 
 Gas               4,579             20.6      4,499             17.3 
 NGL               1,191              5.3      2,524              5.8 
-------------  ---------  ----  ---------  ---------  ---  ---------- 
                  18,373     $       82.6     25,962    $        74.8 
 ------------  ---------  ----  ---------  ---------  ---  ---------- 
GEOs and 
 revenue from 
 royalty, 
 stream and 
 working 
 interests       136,353     $      650.7    126,585    $       365.5 
-------------  ---------  ----  ---------  ---------  ---  ---------- 
Interest 
 revenue and 
 other 
 interest 
 income               --     $         --         --    $         2.9 
-------------  ---------  ----  ---------  ---------  ---  ---------- 
Total GEOs 
 and revenue     136,353     $      650.7    126,585    $       368.4 
-------------  ---------  ----  ---------  ---------  ---  ---------- 
 

In Q1 2026, we recognized revenue of $650.7 million, an increase of 77% from Q1 2025, and sold 136,353 GEOs, an increase of 8% from Q1 2025. We benefited from record gold and silver prices achieved during the quarter, strong contributions from Antamina, South Arturo, Hemlo, Musselwhite, and incremental contributions from Côté Gold, Porcupine and Valentine, all of which were acquired or commenced production over the past year. We also benefited from an increase in revenue from our Diversified assets, particularly from our Vale iron ore interest, and our Haynesville and Marcellus gas assets.

Precious Metal assets accounted for 87% of our revenue in Q1 2026 (67% gold, 17% silver, and 3% PGM). Revenue was sourced 87% from the Americas (42% South America, 21% Canada, 15% U.S. and 9% Central America & Mexico).

Portfolio Additions

   -- Acquisition of Royalty Portfolio from Victoria Gold Corp.-- Canada and 
      U.S.: Subsequent to quarter-end, on April 16, 2026, we closed the 
      previously announced acquisition of a portfolio of six royalties 
      previously held by Victoria Gold Corp. for total cash consideration of 
      $40.0 million (C$55 million). The portfolio includes a 6.0% NSR (subject 
      to a 5.0% buy-back at the operator's election) on Banyan Gold Corp.'s 
      AurMac property and a 1.0% NSR on Banyan Gold's Hyland property, both in 
      the Yukon. The portfolio also includes a milestone payment royalty on 
      i-80 Gold Corp.'s Cove project in Nevada and three additional royalties 
      on earlier stage properties in Nevada and the Yukon. 
 
   -- Partial Buy-Backs of Cascabel Stream and NSR -- Ecuador: In March 2026, 
      following the acquisition of SolGold plc ("SolGold") by Jiangxi Copper 
      (Hong Kong) Investment Company Limited, for and on behalf of Jiangxi 
      Copper Company Limited ("JCC"), SolGold and JCC exercised their option to 
      buy back 50% of the Cascabel stream and NSR. As a result, Franco-Nevada 
      received the equivalent of $40.7 million (net of the ongoing payment of 
      20% of spot price per ounce delivered) as a one-time delivery of gold 
      ounces for the buy-back of 50% of the Cascabel stream, and $97.5 million 
      in cash for the buy-back of 50% of the Cascabel NSR. Our acquisition cost 
      (on a proportionate 50% basis) was $23.3 million for the stream and $50.0 
      million for the NSR. These buy-backs resulted in a gain of $63.8 million 
      recognized in net income and Adjusted Net Income for Q1 2026, but 
      excluded from Adjusted EBITDA. 
 
   -- Acquisition of Stream on Casa Berardi Gold Mine -- Quebec, Canada: On 
      March 24, 2026, we closed the previously announced acquisition of a $100 
      million gold stream from Orezone Gold Corporation to support their 
      acquisition of Hecla Mining's producing Casa Berardi gold mine and other 
      Quebec assets, including the Heva-Hosco gold project. Stream deliveries 
      to Franco-Nevada consist of fixed deliveries of 1,625 oz of gold per 
      quarter (6,500 oz of gold per year) for the first five years, with the 
      first delivery received subsequent to quarter-end, on April 15, 2026, 
      followed by variable deliveries of 5.0% of gold produced from 
      Casa Berardi and other Quebec assets, and 2.5% of gold produced from 
      Heva-Hosco. Gold ounces delivered will be subject to an ongoing payment 
      of 20% of spot price. 
 
   -- Acquisition of Royalty with i-80 Gold Corp -- Nevada, U.S.: On March 16, 
      2026, we closed the previously announced acquisition of a $250 million 
      NSR from i-80 Gold. The royalty consists of a 1.5% NSR increasing to 3.0% 
      in 2031 on all minerals produced from Granite Creek, the Ruby Hill 
      Property (including Archimedes and Mineral Point), Cove and Lone Tree. 
      Funding of the upfront payment of $225 million was made upon closing, 
      with a further $25 million payable contingent on the incurrence, before 
      the end of 2026, by i-80 Gold of an initial $25 million of budgeted 
      expenditures to advance Mineral Point. 
 
   -- Acquisition of Royalty on Bullabulling Gold Project with Minerals 260 
      Limited -- Australia: On February 26, 2026, we closed the previously 
      announced acquisition of a $120 million (A$170 million) gross royalty 
      from Minerals 260 Limited to support its development of the Bullabulling 
      gold project located in Western Australia. The royalty consists of a 
      1.45% gross royalty over certain tenements on which Franco-Nevada already 
      held a 1.00% royalty and a new 2.45% gross royalty over tenements where 
      Franco-Nevada did not already hold an existing royalty. Upon production 
      of an aggregate 4.0 Moz Au from royalty lands, the royalties, in 
      aggregate, will step down from 2.45% to 1.63%. Additionally, 
      Franco-Nevada subscribed for $35 million (A$50 million) of Minerals 260's 
      ordinary shares at a price of A$0.45 per share. 

Cobre Panamá Update

Cobre Panamá remains in a phase of Preservation and Safe Management ("P&SM") with production halted. As part of the P&SM plan approved by the government of Panama (the "GOP"), import of energy supplies commenced and Cobre Panamá's power plant was restarted. As of the end of Q1 2026, Units 1 and 2 have been commissioned and synchronized to the national grid, and three coal vessels have been successfully received. Both units of the power plant have demonstrated reliable operation, meeting the power demands of the site and excess energy being sold to the national grid.

The integral audit, carried out by SGS Global, is ongoing, with five interim reports having been published, and the sixth report is expected to be published shortly. The integral audit and final seventh consolidated report are expected to be completed and published in Q2 2026.

Subsequent to quarter-end, on April 7, 2026, the GOP authorized the removal, processing, and export of stockpiled ore currently stored on site at the Cobre Panamá mine pursuant to the P&SM Plan. As a result, First Quantum estimates that Cobre Panamá will produce between 30,000 and 40,000 tonnes of copper in 2026, with the balance to be processed in 2027 for a total of approximately 70,000 tonnes. Based on these estimates, stream deliveries to Franco--Nevada are expected to total approximately 23,100 gold ounces and 265,000 silver ounces. Deliveries of stream ounces to Franco-Nevada, which are determined based on the sale of copper concentrate by First Quantum under its offtake agreements, are expected to commence in Q3 2026, with the majority of deliveries anticipated in 2027.

Sustainability Updates

During the quarter, we collaborated with the Young Mining Professionals Scholarship Fund to roll-out a dedicated Franco-Nevada Mining Industry Scholarship and, beginning with the 2026/27 academic year, will fund up to C$30,000 annually in renewable, merit-based scholarships for students enrolled in mining related university, college or trade school programs in Canada. During the period, we renewed Franco-Nevada's commitment to Enseña Perú for the 2026/27 campaign in support of educational and community development initiatives in Peru. Subsequent to quarter end, we funded a contribution in partnership with i-80 Gold to support the Boys & Girls Club Early Learning Center in Eureka, Nevada. We continue to rank highly with leading ESG rating agencies, and improved our MSCI ESG rating to "AAA" during the quarter, placing us in the top rating tier.

Available Capital

We had $3.4 billion in Available Capital as at March 31, 2026. This was comprised of $714.7 million in cash and cash equivalents, $1,142.4 million in equity investments and $1.0 billion in unused credit facility with a $500.0 million accordion available directly to Franco-Nevada Corporation. Available credit was further bolstered subsequent to quarter-end by the addition of a second revolving credit facility of $500.0 million with a $250.0 million accordion, entered into by Franco-Nevada International Corporation, our wholly owned subsidiary.

Guidance

The following contains forward-looking statements. For a description of material factors that could cause our actual results to differ materially from the forward-looking statements below, please see the "Cautionary Statement on Forward-Looking Information" section at the end of this news release and the "Risk Factors" section of our most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and our most recent Form 40-F filed with the SEC on www.sec.gov. Our 2026 guidance is 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.

We remain on track to achieve our 2026 GEO sales guidance of 510,000 to 570,000 ounces, which does not include any potential contributions from Cobre Panamá.

While we expect to benefit from the recent approval of the processing of stockpiled ore at Cobre Panamá, GEO contributions for 2026 are expected to be relatively moderate, with the majority of deliveries anticipated in 2027. First Quantum estimates it will produce approximately 70,000 tonnes of copper from the processing of stockpiled ore. This would result in stream deliveries to Franco-Nevada of approximately 23,100 gold ounces and 265,000 silver ounces.

As a royalty and streaming company, our revenues are largely insulated from the sharp increase in oil prices. Our guidance continues to be based on the commodity price assumptions used at the beginning of the year. Should oil prices remain elevated, we would expect a positive impact on our Energy revenue. An increase of $10 relative to our assumed WTI price of $70 per barrel would be expected to increase oil revenue by approximately 12%. In Q1 2026, oil revenue amounted to $33.5 million. Natural gas liquids, which have seen similar price appreciation, contributed a further $5.3 million.

The following table presents our Q1 2026 actual performance compared to our 2026 guidance.

 
                              2026 Guidance (1) (2)   Q1 2026 Actual 
--------------------------    ----------------------  -------------- 
Commodity 
 Gold ounces sold (oz)          360,000 to 400,000        91,158 
 Silver ounces sold (oz)      4,700,000 to 5,500,000    1,417,077 
 PGMs ounces sold (oz)           32,000 to 37,000         7,834 
 Diversified revenue 
  (millions)                       $245 to $285           $82.6 
----------------------------  ----------------------  -------------- 
 
GEOs Sold (oz)                  510,000 to 570,000       136,353 
----------------------------  ----------------------  -------------- 
 
 
1  Our 2026 guidance assumes the following commodity prices: $4,500/oz Au, 
   $75.00/oz Ag, $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, 
   $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas. GEOs for the 2026 
   period are calculated based on fixed conversion ratios based on the prices 
   assumed in this 2026 guidance. 
2  Our guidance does not reflect any incremental revenue from additional 
   contributions we may make to the Royalty Acquisition Venture with 
   Continental. Our guidance does not reflect any buy-backs which may be 
   elected at the discretion of our operators with the exception of the 
   buy-back of the Cascabel royalty and stream, which occurred in March 2026. 
 

Q1 2026 Portfolio Updates

Precious Metal assets: GEOs sold from our Precious Metal assets amounted to 117,980 GEOs for Q1 2026, an increase of 17% from 100,623 GEOs in Q1 2025. This was primarily due to robust production at Antamina and South Arturo, and contributions from Porcupine and Côté Gold which royalties were acquired in April and June 2025, respectively.

South America:

   -- Candelaria (gold and silver stream) -- GEOs sold in Q1 2026 were lower 
      than those sold in Q1 2025, as the prior period quarter included the sale 
      of 3,333 GEOs from inventory held at December 31, 2024. In addition, 
      production at the mine was lower compared to last year, which had the 
      benefit of higher-grade ore from Phase 11. Lundin Mining expects 
      production to be weighted towards H2 2026 when it expects to access 
      higher grade ore from Phase 12. 
 
   -- Antapaccay (gold and silver stream) -- GEOs sold in Q1 2026 were higher 
      than those sold in Q1 2025, primarily due to mine sequencing and timing 
      of shipments. 
 
   -- Antamina (22.5% silver stream) -- Silver ounces sold in Q1 2026 were 
      higher than in Q1 2025. The increase in deliveries is attributable to 
      higher silver grades in the current period and timing of shipments. 
 
   -- Tocantinzinho (gold stream) -- GEOs sold in Q1 2026 were relatively 
      consistent with those sold in Q1 2025. Gold production was lower in the 
      quarter than in previous quarters due to planned processing of lower 
      grade ore. G Mining Ventures expects production to be weighted towards H2 
      2026 as higher-grade mineralization becomes available in accordance with 
      the mine plan. GEOs sold in the prior year quarter also included the sale 
      of 667 GEOs from inventory held at December 31, 2024. 
 
   -- Condestable (gold and silver stream) -- There were no GEO deliveries from 
      Condestable during the quarter as the stream transitioned from fixed 
      deliveries to variable deliveries. Variable deliveries for the 
      Condestable stream are due 15 days following the end of each quarter. 
      3,146 GEOs attributable to the mine's Q1 2026 production period were 
      received in April 2026. This compares to 2,994 GEOs sold in Q1 2025. 
 
   -- Yanacocha (1.8% royalty) -- GEOs from our Yanacocha royalty were higher 
      in Q1 2026 than in Q1 2025, with strong contributions from the mine which 
      produced 144,000 gold ounces in the current period. Newmont anticipates 
      total production for 2026 of approximately 460,000 gold ounces. 

Central America & Mexico:

   -- Guadalupe-Palmarejo (50% gold stream) -- GEOs sold in Q1 2026 were 
      slightly lower than in Q1 2025, as the prior period quarter included the 
      sale of 2,216 GEOs from inventory held at December 31, 2024. In February 
      2026, Coeur Mining announced an increase in gold mineral reserves of 40%, 
      extending the mine life by approximately five years. 
 
   -- Cobre Panamá (gold and silver stream) -- During the quarter, we sold 
      935 GEOs in connection with the sale of concentrate that had remained on 
      site when production was suspended in November 2023. As a result of the 
      approval of the processing of stockpiled ore at Cobre Panamá, we 
      expect additional stream deliveries of approximately 23,100 gold ounces 
      and 265,000 silver ounces. Deliveries for 2026 are expected to be 
      relatively moderate, with the majority of deliveries anticipated in 2027. 

Canada:

   -- Côté Gold (7.5% GMR) -- GEOs from Côté were lower in 
      Q1 2026 than in Q4 2025, as the mine produced 74,700 gold ounces (100% 
      basis) compared to 87,200 ounces in Q4 2025. Throughput in the quarter 
      was limited by unplanned conveyor downtime. Performance improved in April 
      2026. In addition, gold production is expected to be more heavily 
      weighted towards H2 2026 based on expected higher grades as determined by 
      the scheduled mine sequence. An updated mineral resource estimate for 
      Côté is planned for Q2 2026, followed by a technical report 
      that is on track by year-end and is expected to outline a larger-scale 
      mine incorporating both the Côté and Gosselin zones. 
 
   -- Detour Lake (2% royalty) -- Agnico Eagle reported strong production from 
      Detour during the quarter driven by higher availability and productivity 
      of the hauling fleet. Development activities for the underground project 
      continued, with the exploration ramp reaching a depth of 147 metres and 
      overburden removal commencing for the conveyor--ramp portal. Exploration 
      drilling, which totalled 39,052 metres during the quarter, continued to 
      expand and infill the mineralization below and to the west of the mineral 
      resource pit. 
 
   -- Hemlo (50% NPI and 3% NSR) -- We earned 5,841 GEOs in Q1 2026, a decrease 
      compared to 6,347 GEOs in Q1 2025. GEOs recognized in the current period 
      included 2,100 GEOs related to Q4 2025. Hemlo Mining Corporation 
      continued to advance several optimization initiatives during the quarter, 
      including transitioning to an owner-operated model, launching a 
      130,000-metre drill program, and advancing an updated mineral resource 
      estimate and mine plan. 
 
   -- Porcupine (4.25% royalty) -- In April 2026, Discovery Silver reported 
      strong exploration results at all operations, including multiple 
      high-grade intersections from resource conversion and extension drilling 
      at Hoyle Pond and Borden, favourable drill results within and along 
      strike of current resources at Pamour, and encouraging results from 
      district exploration drilling at Owl Creek. In March 2026, Discovery 
      announced the acquisition of Glencore's Kidd Operations which will 
      provide Discovery with the ability to potentially double production from 
      their Timmins complex. 
 
   -- Greenstone (3% royalty) -- Equinox Gold reported operational improvements 
      in Q1 2026, with winter mining rates averaging 180 ktpd, consistent with 
      expectations. Mill throughput exceeded nameplate capacity of 27 ktpd for 
      51% of days in Q1 2026 compared to 36% in Q4 2025. 
 
   -- Valentine (3% royalty) -- Equinox Gold reported that the ramp-up is 
      progressing well, with the mine averaging 90% of nameplate capacity for 
      Q1 2026. Once operating at design capacity, Valentine Gold is expected to 
      produce between 175,000 and 200,000 ounces of gold annually. Equinox is 
      also continuing to advance the Phase 2 expansion which would increase 
      average annual production to approximately 223,000 ounces for ten years. 
 
   -- Musselwhite (5% NPI) -- In April 2026, Orla Mining continued to report 
      exploration success at Musselwhite, with stacked extension zones 
      expanding the mine trend by more than two kilometers and providing for 
      significant mine life extension. Surface drilling within 10km of the mill 
      identified multiple targets for potential open-pit satellite deposits, 
      including at Camp Bay which is covered by our NPI. 
 
   -- Sudbury (gold and PGM stream) -- GEOs sold from our Sudbury stream were 
      higher in Q1 2026 than in Q1 2025. Production relates to the McCreedy 
      West Mine operated by Magna Mining. Since acquiring the assets in January 
      2025, Magna continues to evaluate production opportunities at McCreedy 
      West as it continues to receive new diamond drilling information and 
      optimizes its plan to increase production and profitability. 
 
   -- Eskay Creek (2.5% royalty) -- Skeena Resources reported that construction 
      was 49% complete as of February 28, 2026 and that the project remains on 
      schedule, with initial production targeted for Q2 2027 and commercial 
      production for Q3 2027. In April 2026, Skeena raised $750 million through 
      the issuance of senior secured notes. 
 
   -- Canadian Malartic (1.5% royalty) -- At Odyssey, production from the East 
      Gouldie ramp commenced in March 2026, three months ahead of schedule. 
      Gold production was in line with plan at approximately 27,400 ounces, 
      with Odyssey expected to contribute approximately 120,000 ounces of gold 
      in 2026. It is estimated that Franco-Nevada's East Gouldie claims cover 
      approximately 28% of the East Gouldie reserve, with drilling continuing 
      to extend East Gouldie to the east in both the upper and lower portions 
      of the deposit. For 2026, Franco-Nevada estimates 600-700 GEOs will be 
      received from our royalty interest at Canadian Malartic. 

U.S.:

   -- Stillwater (5% royalty) -- Sibanye-Stillwater reported that its US PGM 
      Operations were converting its stoping technique to allow increased 
      volumes mined. The phased implementation is expected to be completed by 
      H2 2028. Sibanye-Stillwater expects steady-state production of 
      approximately 410,000 ounces by 2029, with Stillwater West providing 
      future optionality and upside. 
 
   -- South Arturo (4-9% royalties) -- GEOs sold in Q1 2026 were higher than in 
      Q1 2025, as Nevada Gold Mines continues to mine the South Arturo pit in 
      2026, in line with the Carlin mine plan. 
 
   -- Bald Mountain (1-5% royalties) -- Kinross reported that the Redbird 
      project advanced across several key areas during the quarter, including 
      mining, construction of processing infrastructure, and earthworks for the 
      heap leach pad extension. The Redbird project, along with five additional 
      satellite pits, is expected to incrementally produce a total of 640,000 
      gold ounces and extends the mine life to 2032. 
 
   -- i-80 (1.5% royalty) -- In March 2026, i-80 completed a recapitalization 
      plan which is expected to fully fund its development plan through Phase 1 
      and Phase 2, with a path to funding Phase 3. In April, i-80 announced 
      positive assay results from its drilling campaign at the Archimedes 
      project. i-80 commenced construction of Archimedes in Q3 2025. 

Rest of World:

   -- Western Limb (gold and platinum stream) -- GEOs sold in Q1 2026 were 
      lower than in the prior year quarter. Deliveries received in Q1 2025 
      related to four months of production, commencing from the effective date 
      of the agreement (September 1, 2024) through December 31, 2024. 
 
   -- Tasiast (2% royalty) -- GEOs from our Tasiast royalty were higher than in 
      Q1 2025, due to higher production supported by higher grades. 
 
   -- Subika (Ahafo) (2% royalty) -- GEOs from our Subika (Ahafo) royalty were 
      lower in Q1 2026 than in Q1 2025 as mining activities in the Subika open 
      pit were completed as planned in Q3 2025. Production on royalty ground 
      continues at the Subika Underground, where Newmont plans to increase its 
      investment in exploration and advanced projects. 

Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $82.6 million in revenue, compared to $74.8 million in Q1 2025. When converted to GEOs, our Diversified assets contributed 18,373 GEOs, compared to 25,962 GEOs in Q1 2025. The lower GEOs are due to using a higher gold price for conversion ($4,500 per ounce for the current period).

Other Mining:

   -- Vale (iron ore royalty) -- Revenue from the Vale royalty increased when 
      compared to Q1 2025, largely driven by the inclusion of sales from the 
      Southeastern System following the achievement of the cumulative sales 
      threshold of 1.7 billion tonnes of iron ore in April 2025. 
 
   -- LIORC -- Revenue from our attributable interest on the Carol Lake mine in 
      Q1 2026 was lower than in Q1 2025. LIORC declared a cash dividend of 
      C$0.30 per common share in the current period, compared to C$0.50 in Q1 
      2025. Production at IOC in Q1 2026 was lower due to adverse weather and 
      ongoing challenges including mine equipment reliability. 
 
   -- Ring of Fire -- In March 2026, the government of Ontario released an 
      accelerated plan for all--season road construction into the Ring of Fire, 
      with construction scheduled to commence in mid-2026. The Ontario 
      government has also signed new economic partnerships with Marten Falls 
      First Nation and Webequie First Nation. In December 2025, the Ontario and 
      Canadian federal governments signed a cooperation agreement aimed at 
      eliminating duplicative environmental and impact assessment processes 
      through the "One Project, One Process" framework. 

Energy:

   -- U.S. (various royalty rates) -- Revenue from our U.S. Energy interests 
      increased to $43.0 million in Q1 2026, compared to $41.8 million in Q1 
      2025. The increase was driven by higher production at our Haynesville 
      interests, and higher realized gas prices at Marcellus due to 
      weather-related seasonality. 
 
   -- Canada (various royalty rates) -- Revenue from our Canadian Energy 
      interests was $16.4 million in Q1 2026, compared to $16.2 million in Q1 
      2025 due to higher realized oil prices. Our Weyburn NRI benefited from 
      stronger pricing and lower expenses compared to Q1 2025. 

Dividend Declaration

Franco-Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of US$0.44 per share. The dividend will be paid on June 25, 2026, to shareholders of record on June 11, 2026 (the "Record Date"). 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 (the "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. The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price. The Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. Participation in the DRIP is optional. The DRIP and enrollment forms are available on the Company's website at www.franco-nevada.com. Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent's self-service web portal at www.investorcentre.com/franco-nevada. Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. 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.

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

Shareholder Information and Details for Q1 2026 Conference Call

The complete Consolidated Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov.

We will host a conference call to review our Q1 2026 quarterly results. Interested investors are invited to participate as follows:

 
Conference Call and Webcast:                      May 13(th) 8:00 am ET 
Dial--in Numbers:                                 Toll--Free: 1-888-510-2154 
                                                   International: 437-900-0527 
 
Conference Call URL (This allows participants to  emportal.ink/4eu8kF3 
join the conference call by phone without 
operator assistance. Participants will receive 
an automated call back after entering their name 
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Webcast:                                          www.franco-nevada.com 
 
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Corporate Summary

Franco-Nevada Corporation 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 and New York stock exchanges. Franco-Nevada is the gold investment that works.

Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves 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, any ongoing or future audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panamá mine. In addition, statements relating to mineral resources and mineral reserves, 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 mineral resources and mineral reserves, GEOs or mine lives 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: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Brazilian real, 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; tariff and other trade measures that may be imposed by the United States and proposed retaliatory measures that may be adopted by its trading partners; the adoption and implementation 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 Company 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 mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from mineral 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, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained herein 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 Company'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 (i) the outcome of any ongoing or future audits by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panamá mine. 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 Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date hereof 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.

ENDNOTES:

1. Gold Equivalent Ounces ("GEOs") and Net Gold Equivalent Ounces ("Net GEOs"):

   -- GEOs include Franco-Nevada's attributable share of production from our 
      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. Where the Company receives gold and silver 
      bullion in-kind as payment for its royalties, GEOs are recognized at the 
      time of receipt of such bullion. 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. Beginning in 2026, the Company adopted fixed GEO 
      conversion ratios based on the pricing assumptions outlined in our 
      guidance. This methodology replaces our previous methodology which was 
      based on variable GEO conversion ratios using prevailing market prices. 
      Our 2026 guidance, as disclosed in our 2025 MD&A filed on March 10, 2026, 
      assumed the following commodity prices: $4,500/oz Au, $75.00/oz Ag, 
      $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil 
      and $3.00/mcf Henry Hub natural gas. GEOs for the 2026 period are 
      calculated based on fixed conversion ratios based on the prices assumed 
      in this 2026 guidance. 
 
   -- Net GEOs are GEOs sold, net of direct operating costs, including for our 
      stream GEOs, the associated ongoing cost per ounce. 

Calculation of Net Gold Equivalent Ounces:

 
                                         For the three months ended 
                                                March 31, 
 (expressed in millions, excepts 
 GEOs and Gold Price)                             2026          2025 
-----------------------------------   ----------------  ------------ 
GEOs                                           136,353       126,585 
------------------------------------      ------------   ----------- 
 Less: 
 Cash Costs                            $          46.5  $       38.5 
 Divided by: Gold price per ounce      $         4,500  $      2,863 
------------------------------------      ------------   ----------- 
                                                10,333        13,447 
 -----------------------------------      ------------   ----------- 
Net GEOs                                       126,020       113,138 
------------------------------------      ------------   ----------- 
 

2. NON-GAAP FINANCIAL MEASURES:

   -- Adjusted Net Income, Adjusted Net Income per share, Adjusted Net Income 
      Margin, Adjusted EBITDA, Adjusted EBITDA per share, and Adjusted EBITDA 
      Margin are non-GAAP financial measures with no standardized meaning under 
      International Financial Reporting Standards ("IFRS Accounting Standards") 
      and might not be comparable to similar financial measures disclosed by 
      other issuers. For a quantitative reconciliation of each non-GAAP 
      financial measure to the most directly comparable financial measure under 
      IFRS Accounting Standards, refer to the below 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 months ended March 31, 2026 dated May 
      12, 2026 filed with the Canadian securities regulatory authorities on 
      SEDAR+ available at www.sedarplus.com and with the U.S. Securities and 
      Exchange Commission available on EDGAR at www.sec.gov. 
 
   -- Change in Composition of Adjusted Net Income -- Gains on buy-backs of 
      royalty and stream interests: Effective Q1 2026, the Company updated the 
      composition of its Adjusted Net Income (and related per share and margin 
      amounts) to no longer adjust for gains on contractual buy-backs of 
      royalty and stream interests. Previously, gains on buy-backs were an 
      adjusting item when calculating Adjusted Net Income (and related per 
      share and margin amounts). Management continues to adjust for gains or 
      losses on sales on discretionary sales of mineral interests when 
      calculating these non-GAAP measures. Management believes that this change 
      more appropriately reflects the Company's operating performance as 
      contractual buy-backs are embedded in the terms of many of the Company's 
      royalty and stream interest agreements, such that they occur in the 
      ordinary course and are an integral part of Franco Nevada's royalty and 
      stream business. Unlike less common discretionary sales of mineral 
      interests, these transactions are evaluated by management when assessing 
      overall returns from our royalty and stream interests, and accordingly, 
      we believe such gains should not be eliminated for purposes of 
      calculating Adjusted Net Income and related per share amounts, when 
      evaluating performance for investors. This change is reflected on a full 
      retrospective basis. 
 
   -- 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 losses and reversal related to 
      royalty, stream and working interests and investments; gains/losses on 
      disposals of royalty, stream and working interests (excluding gains on 
      buy-backs of royalty and stream interests) and investments; impairment 
      losses and expected credit losses related to equity investments, loans 
      receivable and other financial instruments, changes in fair value of 
      investments, loans receivable and other financial instruments, foreign 
      exchange gains/losses and other income/expenses; the impact of income 
      taxes on these items; income taxes related to the reassessment of the 
      probability of realization of previously recognized or de-recognized 
      deferred income tax assets; and income taxes relating to the revaluation 
      of deferred income tax assets and liabilities as a result of statutory 
      income tax rate changes in the countries in which the Company operates. 
 
   -- Adjusted Net Income Margin is a non-GAAP financial measure which is 
      defined by the Company as Adjusted Net Income divided by revenue. 
 
   -- 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; impairment losses and reversals related to royalty, stream 
      and working interests and investments; gains/losses on disposals of 
      royalty, stream and working interests and investments; gains on buy-backs 
      of royalty and stream interests, impairment losses and expected credit 
      losses related to equity investments, loans receivable and other 
      financial instruments, changes in fair value of investment, loans 
      receivable and other financial instruments, and foreign exchange 
      gains/losses and other income/expenses. 
 
   -- Adjusted EBITDA Margin is a non-GAAP financial measure which is defined 
      by the Company as Adjusted EBITDA divided by revenue. 

Reconciliation of Non-GAAP Financial Measures:

 
                                         For the three months ended 
                                                 March 31, 
 (expressed in millions, except per 
 share amounts)                                   2026            2025 
-----------------------------------   ----------------  -------------- 
Net income                             $         468.6   $       209.8 
 Foreign exchange gain and other 
  income                                        (12.4)           (5.7) 
 Tax effect of adjustments                         2.1             1.5 
------------------------------------      ------------      ---------- 
Adjusted Net Income                    $         458.3   $       205.6 
Basic weighted average shares 
 outstanding                                     192.8           192.6 
------------------------------------      ------------      ---------- 
Adjusted Net Income per share          $          2.38   $        1.07 
------------------------------------      ------------      ---------- 
 
 
                                       For the three months ended 
                                               March 31, 
 (expressed in millions, except 
 Adjusted Net Income Margin)                  2026              2025 
---------------------------------   --------------  ----  ---------- 
Adjusted Net Income                  $       458.3        $    205.6 
 Divided by: Revenue                         650.7             368.4 
----------------------------------      ----------  ----   --------- 
Adjusted Net Income Margin                    70.4%             55.8% 
----------------------------------      ----------   ---   --------- 
 
 
                                    For the three months ended 
                                            March 31, 
 (expressed in millions, 
 except per share amounts)                    2026          2025 
-----------------------------     ----------------  ------------ 
Net income                         $         468.6  $      209.8 
 Income tax expense                          126.3          59.8 
 Finance income                              (5.5)        (11.1) 
 Finance expenses                              0.8           0.7 
 Depletion and depreciation                   77.9          68.4 
 Gain on buy-back of royalty 
 and stream interests                       (63.8)            -- 
 Foreign exchange gain and other 
  income                                    (12.4)         (5.7) 
--------------------------------      ------------   ----------- 
Adjusted EBITDA                    $         591.9  $      321.9 
Basic weighted average shares 
 outstanding                                 192.8         192.6 
--------------------------------      ------------   ----------- 
Adjusted EBITDA per share          $          3.07  $       1.67 
--------------------------------      ------------   ----------- 
 
 
                                       For the three months ended 
                                               March 31, 
 (expressed in millions, except 
 Adjusted EBITDA Margin)                      2026              2025 
---------------------------------   --------------  ----  ---------- 
Adjusted EBITDA                     $        591.9        $    321.9 
 Divided by: Revenue                         650.7             368.4 
----------------------------------      ----------  ----   --------- 
Adjusted EBITDA Margin                        91.0%             87.4% 
----------------------------------      ----------   ---   --------- 
 

3. AVAILABLE CAPITAL: Available Capital comprises our cash and cash equivalents of $714.7 million as at March 31, 2026, our equity investments (excluding our long-term investment in Labrador Iron Ore Company of Canada) of $1,142.4 million and the amount available to borrow under our $1.0 billion corporate revolving credit facility and its accordion of $500.0 million as at March 31, 2026. Subsequent to quarter-end, on May 8, 2026, FNIC entered into a revolving credit facility of $500.0 million with a $250.0 million accordion.

FRANCO-NEVADA CORPORATION

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(in millions of U.S. dollars)

 
                                       At March 31,  At December 31, 
                                               2026               2025 
----------------------------------   --------------  ----------------- 
ASSETS 
Cash and cash equivalents             $       714.7   $          670.9 
Receivables                                   267.5              241.9 
Gold and silver bullion and stream 
 inventory                                    123.3               40.1 
Other current assets                           22.1               68.5 
-----------------------------------      ----------      ------------- 
 Current assets                       $     1,127.6   $        1,021.4 
 
Royalty, stream and working 
 interests, net                       $     6,307.2   $        6,043.1 
Investments                                 1,322.0            1,141.3 
Deferred income tax assets                     19.8               23.2 
Other assets                                   21.0               12.4 
-----------------------------------      ----------      ------------- 
 Total assets                         $     8,797.6   $        8,241.4 
-----------------------------------      ----------      ------------- 
 
LIABILITIES 
Accounts payable and accrued 
 liabilities                          $        49.7   $           44.9 
Income tax liabilities                        133.5               78.1 
-----------------------------------      ----------      ------------- 
 Current liabilities                  $       183.2   $          123.0 
 
Deferred income tax liabilities       $       487.0   $          440.7 
Income tax liabilities                         12.4               33.8 
Other liabilities                               8.3                8.6 
-----------------------------------      ----------      ------------- 
 Total liabilities                    $       690.9   $          606.1 
-----------------------------------      ----------      ------------- 
 
SHAREHOLDERS' EQUITY 
Share capital                         $     5,813.9   $        5,803.4 
Contributed surplus                            16.5               21.6 
Retained earnings                           1,771.6            1,379.8 
Accumulated other comprehensive 
 income                                       504.7              430.5 
-----------------------------------      ----------      ------------- 
 Total shareholders' equity           $     8,106.7   $        7,635.3 
-----------------------------------      ----------      ------------- 
 Total liabilities and 
  shareholders' equity                $     8,797.6   $        8,241.4 
-----------------------------------      ----------      ------------- 
 
 

The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website

FRANCO-NEVADA CORPORATION

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

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

 
                                           For the three months ended 
                                                   March 31, 
                                                    2026            2025 
-------------------------------------   ----------------  -------------- 
Revenue 
 Revenue from royalty, streams and 
  working interests                      $         650.7   $       365.5 
 Interest revenue                                     --             2.9 
--------------------------------------      ------------      ---------- 
Total revenue                            $         650.7   $       368.4 
 
Costs of sales 
 Costs of sales                          $          46.5   $        38.5 
 Depletion and depreciation                         77.9            68.4 
--------------------------------------      ------------      ---------- 
Total costs of sales                     $         124.4   $       106.9 
--------------------------------------      ------------      ---------- 
Gross profit                             $         526.3   $       261.5 
--------------------------------------      ------------      ---------- 
 
Other operating (income) expenses 
 General and administrative expenses     $           9.2   $         9.4 
 Share-based compensation expenses                   6.2             5.7 
 Gain on buy-back of royalty and 
 stream interests                                 (63.8)              -- 
 Gain on sale of gold and silver 
  bullion                                          (3.1)           (7.1) 
--------------------------------------      ------------      ---------- 
Total other operating (income) 
 expenses                                $        (51.5)   $         8.0 
--------------------------------------      ------------      ---------- 
Operating income                         $         577.8   $       253.5 
--------------------------------------      ------------      ---------- 
 Foreign exchange gain and other 
  income                                 $          12.4   $         5.7 
--------------------------------------      ------------      ---------- 
Income before finance items and income 
 taxes                                   $         590.2   $       259.2 
 
Finance items 
 Finance income                          $           5.5   $        11.1 
 Finance expenses                                  (0.8)           (0.7) 
--------------------------------------      ------------      ---------- 
Net income before income taxes           $         594.9   $       269.6 
 
Income tax expense                                 126.3            59.8 
--------------------------------------      ------------      ---------- 
Net income                               $         468.6   $       209.8 
--------------------------------------      ------------      ---------- 
 
Other comprehensive income, net of 
taxes 
 
Items that may be reclassified 
subsequently to profit and loss: 
 Currency translation adjustment         $        (51.9)   $         2.7 
 
Items that will not be reclassified 
subsequently to profit and loss: 
 Gain on changes in the fair value of 
 equity investments 
 at fair value through other 
 comprehensive income ("FVTOCI"), 
 net of income tax                                 133.7           148.8 
--------------------------------------      ------------      ---------- 
Other comprehensive income, net of 
 taxes                                   $          81.8   $       151.5 
 
Comprehensive income                     $         550.4   $       361.3 
--------------------------------------      ------------      ---------- 
 
Earnings per share 
 Basic                                   $          2.43   $        1.09 
 Diluted                                 $          2.43   $        1.09 
Weighted average number of shares 
outstanding 
 Basic                                             192.8           192.6 
 Diluted                                           193.2           192.9 
--------------------------------------      ------------      ---------- 
 
 

The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website

FRANCO-NEVADA CORPORATION

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(in millions of U.S. dollars)

 
                                         For the three months ended 
                                                 March 31, 
                                                  2026          2025 
-----------------------------------   ----------------  ------------ 
Cash flows from operating 
activities 
 Net income                            $         468.6  $      209.8 
 Adjustments to reconcile net 
 income to net cash provided by 
 operating activities: 
     Depletion and depreciation                   77.9          68.4 
     Share-based compensation 
      expenses                                     1.1           2.1 
     Gain on buy-back of royalty 
     and stream interests                       (63.8)            -- 
     Unrealized foreign exchange 
      gain                                       (1.3)         (6.0) 
     Deferred income tax expense                  33.7           9.1 
     Gain on sale of gold and silver 
      bullion                                    (3.1)         (7.1) 
     Gain on derivative financial 
      instruments                               (11.0)         (0.1) 
     Other non-cash items                        (0.2)         (0.2) 
 Gold and silver bullion from 
  royalties received in-kind                    (47.4)        (19.2) 
 Proceeds from sale of gold and 
  silver bullion                                  15.1          30.2 
 Receipt of deposits and interest 
 from Canada Revenue Agency                       49.5            -- 
 Increase in other assets                        (8.2)            -- 
-----------------------------------       ------------   ----------- 
 Operating cash flows before changes 
  in non-cash working capital          $         510.9  $      287.0 
     Changes in non-cash working 
     capital: 
      Increase in receivables          $        (25.6)  $      (8.4) 
      (Increase) decrease in other 
       current assets                            (3.2)           8.9 
      Increase in accounts payable 
       and accrued liabilities                    38.3           1.4 
------------------------------------      ------------   ----------- 
Net cash provided by operating 
 activities                            $         520.4  $      288.9 
------------------------------------      ------------   ----------- 
 
Cash flows used in investing 
activities 
 Acquisition of royalty, stream and 
  working interests                    $       (449.4)  $    (505.2) 
 Acquisition of investments                     (35.3)        (52.3) 
 Proceeds from buy-back of royalty 
 interest                                         97.5            -- 
 Acquisition of gold bullion from 
 buy-back of stream interest                    (10.2)            -- 
 Acquisition of energy well 
  equipment                                      (0.3)         (1.2) 
 Acquisition of property and 
  equipment                                      (0.2)         (2.0) 
 Proceeds from sale of investments                  --           9.7 
------------------------------------      ------------   ----------- 
Net cash used in investing 
 activities                            $       (397.9)  $    (551.0) 
------------------------------------      ------------   ----------- 
 
Cash flows used in financing 
activities 
 Payment of dividends                  $        (80.5)  $     (70.2) 
 Capitalized debt issue costs                    (0.7)            -- 
 Proceeds from exercise of stock 
  options                                          0.4           3.4 
------------------------------------      ------------   ----------- 
Net cash used in financing 
 activities                            $        (80.8)  $     (66.8) 
------------------------------------      ------------   ----------- 
Effect of exchange rate changes on 
 cash and cash equivalents             $           2.1  $        5.7 
------------------------------------      ------------   ----------- 
Net change in cash and cash 
 equivalents                           $          43.8  $    (323.2) 
------------------------------------      ------------   ----------- 
Cash and cash equivalents at 
 beginning of period                   $         670.9  $    1,451.3 
------------------------------------      ------------   ----------- 
Cash and cash equivalents at end of 
 period                                $         714.7  $    1,128.1 
------------------------------------      ------------   ----------- 
 
Supplemental cash flow information: 
Income taxes paid                      $          58.1  $       47.5 
Dividend income received               $           1.6  $        3.3 
Interest and standby fees paid         $           0.8  $        1.0 
 

The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website

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SOURCE Franco-Nevada Corporation

 

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