Tracking towards the upper half of annual guidance range
(in U.S. dollars unless otherwise noted)
TORONTO, Aug. 11, 2026 /PRNewswire/ -- Gold equivalent ounces sold in the quarter were 18% higher compared to the prior year period. Financial results benefited further from strong year-over-year precious metal and oil prices in the quarter. Production for the portfolio is expected to be weighted to the second half of the year, largely due to the expected production profiles at Candelaria, Tocantinzinho and Côté Gold, among others. During the quarter, the Government of Panama allowed the processing of stockpiles at Cobre Panamá to commence and established a ministerial commission to consider the future of the mine. The Company is tracking towards the upper half of its annual guidance range for 2026 due to elevated oil prices and anticipated deliveries from the processing of stockpiles at Cobre Panamá.
"Our portfolio is set to benefit from strong organic growth evidenced by resource increases, planned mine expansions and project advancements," stated Paul Brink, President & CEO. "With $4.3 billion in available capital, the Company is also well positioned to take advantage of a strong pipeline of deal opportunities."
Financial Highlights -- Q2 2026 compared to Q2 2025
-- $580.9 million in revenue, +57%. -- 132,405 GEOs1 sold, +18%. -- 122,205 Net GEOs1 sold, +20%. -- $482.5 million in operating cash flow, +12%. -- $529.7 million ($2.75/share) in Adjusted EBITDA2, +45%. -- $354.0 million ($1.84/share) in net income, +43%. -- $349.2 million ($1.81/share) in Adjusted Net Income2, +46%. -- $4.3 billion in Available Capital3 as at June 30, 2026.
Financial Highlights -- H1 2026 compared to H1 2025
-- $1,231.6 million in revenue, +67% -- new half-year record.
-- 268,758 GEOs sold, +13%.
-- 248,225 Net GEOs sold, +15%.
-- $1,002.9 million in operating cash flow, +39% -- new half-year record.
-- $1,121.6 million in Adjusted EBITDA or $5.82/share, +63% -- new half-year
records.
-- $822.6 million in net income or $4.27/share, +80% -- new half-year
records.
-- $807.5 million in Adjusted Net Income or $4.19/share, +82% -- new
half-year records.
GEOs Sold and Revenue
Quarterly GEOs sold and
revenue by commodity
Q2 2026 Q2 2025
GEOs Sold Revenue GEOs Sold Revenue
# (in millions) # (in millions)
------------ --------- --------------- --------- ---------------
PRECIOUS
METALS
Gold 91,224 $ 403.0 78,738 $ 258.4
Silver 19,695 83.5 11,520 38.1
PGM 3,192 12.2 2,191 7.5
------------- --------- ---- --------- --------- --- ----------
114,111 $ 498.7 92,449 $ 304.0
------------ --------- ---- --------- --------- --- ----------
DIVERSIFIED
Iron ore 2,037 $ 9.1 2,197 $ 7.2
Other mining
assets 573 2.7 900 3.0
Oil 10,057 45.3 10,337 30.6
Gas 4,398 19.8 4,243 16.9
NGL 1,229 5.3 1,967 5.0
------------- --------- ---- --------- --------- --- ----------
18,294 $ 82.2 19,644 $ 62.7
------------ --------- ---- --------- --------- --- ----------
GEOs and
revenue from
royalty,
stream and
working
interests 132,405 $ 580.9 112,093 $ 366.7
------------- --------- ---- --------- --------- --- ----------
Interest
revenue and
other
interest
income -- $ -- -- $ 2.7
------------- --------- ---- --------- --------- --- ----------
Total GEOs
and revenue 132,405 $ 580.9 112,093 $ 369.4
------------- --------- ---- --------- --------- --- ----------
Year-to-date GEOs sold
and revenue by
commodity
H1 2026 H1 2025
GEOs Sold Revenue GEOs Sold Revenue
# (in millions) # (in millions)
------------ --------- --------------- --------- ---------------
PRECIOUS
METALS
Gold 182,382 $ 839.9 164,261 $ 504.2
Silver 43,313 197.0 24,011 75.2
PGM 6,396 29.9 4,800 15.3
------------- --------- --- ---------- --------- --- ----------
232,091 $ 1,066.8 193,072 $ 594.7
------------ --------- --- ---------- --------- --- ----------
DIVERSIFIED
Iron ore 5,831 $ 26.2 6,085 $ 19.6
Other mining
assets 1,976 8.8 2,457 7.4
Oil 17,463 78.8 23,830 65.5
Gas 8,977 40.4 8,742 34.3
NGL 2,420 10.6 4,492 10.7
------------- --------- --- ---------- --------- --- ----------
36,667 $ 164.8 45,606 $ 137.5
------------ --------- --- ---------- --------- --- ----------
GEOs and
revenue from
royalty,
stream and
working
interests 268,758 $ 1,231.6 238,678 $ 732.2
------------- --------- --- ---------- --------- --- ----------
Interest
revenue and
other
interest
income -- $ -- -- $ 5.6
------------- --------- --- ---------- --------- --- ----------
Total GEOs
and revenue 268,758 $ 1,231.6 238,678 $ 737.8
------------- --------- --- ---------- --------- --- ----------
In Q2 2026, we recognized revenue of $580.9 million, an increase of 57% from Q2 2025, and sold 132,405 GEOs, an increase of 18% from Q2 2025. We benefited from higher precious metal and oil prices compared to Q2 2025, strong contributions from Antapaccay, Antamina, South Arturo, Musselwhite, and incremental contributions from Côté Gold, Casa Berardi, Valentine and Porcupine, all of which were acquired or commenced production approximately over the past year. We also benefited from an increase in revenue from our Diversified assets, particularly from our Weyburn and SCOOP/STACK interests.
Precious Metal assets accounted for 86% of our revenue in Q2 2026 (70% gold, 14% silver, and 2% PGM). Revenue was sourced 88% from the Americas (40% South America, 25% Canada, 16% U.S. and 7% Central America & Mexico).
Portfolio Additions
-- Acquisition of Royalty on the Comet Vale Gold Mine -- Australia:
Subsequent to quarter-end, on July 15, 2026, we acquired a 2.0% gross
royalty on all gold production from the majority of the mining leases of
Gorilla Gold Mines Ltd's Comet Vale gold project, including the Sovereign
and Cheer deposits, in the north Kalgoorlie region of Western Australia
for $8.4 million (A$12.0 million), plus a contingent payment of $2.1
million (A$3.0 million).
-- Acquisition of Royalties on the Greenstone Gold Mine -- Canada: On June
22, 2026, we acquired a 5.0% NPI and 2.0% NSR that cover part of Equinox
Gold Corp.'s broader Greenstone Gold Mine property for total cash
consideration of $2.0 million. The 5.0% NPI area overlaps with a portion
of our existing 3.0% NSR on Greenstone.
-- Acquisition of Royalty on Youanmi Gold Mine -- Australia: On May 29,
2026, we acquired a 1.0% NSR on all gold production from the mining
leases of Rox Resources Limited's Youanmi gold project in the Murchison
region of Western Australia for $32.9 million (A$47.0 million).
-- Acquisition of Royalty Portfolio from Victoria Gold Corp.-- Canada and
U.S.: 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$55.0 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 milestone payments on i-80 Gold Corp.'s Cove project in
Nevada and three additional royalties on earlier stage properties in
Nevada and the Yukon.
Cobre Panamá Update
Cobre Panamá remains in a phase of Preservation and Safe Management ("P&SM") with production halted.
During the quarter, the integral audit, carried out by SGS Global, was completed and on June 19, 2026, Panama's Ministry of Environment, MiAmbiente, published SGS' final integral audit report, representing an overall compliance rate of 87.7%.
During the quarter, the Government of Panama (the "GOP") established a high-level ministerial commission comprising the Ministers of Commerce and Industries, Economy and Finance, and Environment to evaluate matters relating to the future of the Cobre Panamá mine, including consideration of the integral audit findings and associated economic, environmental, and legal implications.
On April 7, 2026, the GOP authorized the removal, processing, and export of stockpiled ore (the "Processing Program") currently stored on site at the Cobre Panamá mine as part of the P&SM plan. As a result, after two years of halted operations, Cobre Panamá transitioned to the execution of the approved Processing Program. Commissioning of the first processing train was completed during May 2026, followed by the commencement of stockpile processing and the production of the first copper concentrate. Production reflected the successful commissioning and restart of one of the three milling circuits while Cobre Panamá continued to execute the P&SM plan in accordance with regulatory requirements.
First Quantum estimates that Cobre Panamá will produce between 30,000 and 40,000 tonnes of copper in 2026, with the remaining balance to be processed in 2027 for a total of approximately 70,000 tonnes. Based on these estimates, Cobre Panamá 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 one-third of deliveries anticipated in H2 2026.
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 "Forward-Looking Statements" 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 public statements and other disclosures by the third-party owners and operators of the underlying properties and our assessment thereof.
Production for the portfolio is expected to be weighted to the second half of the year as previously guided, largely due to production profiles at Candelaria, Tocantinzinho, Côté Gold, Greenstone and Valentine. We also expect to benefit from the commencement of processing of stockpiled ore at Cobre Panamá, as outlined in the section above. With the inclusion of the anticipated Cobre Panamá deliveries, we are tracking towards the upper half of our 2026 Total GEOs guidance range. Furthermore, we are benefiting from elevated oil and natural gas liquids prices, with H1 2026 oil revenue of $78.8 million increasing 20% relative to H1 2025. Should oil prices remain elevated, we would expect a continued positive impact on our Energy revenue. An increase of $10 relative to our assumed WTI price of $70 per barrel is estimated to increase oil revenue by approximately 12%.
The following table presents our H1 2026 actual performance compared to our 2026 guidance.
2026 Guidance (1) (2) H1 2026 Actual
-------------------------- ---------------------- --------------
Commodity
Gold ounces sold (oz) 360,000 to 400,000 182,382
Silver ounces sold (oz) 4,700,000 to 5,500,000 2,598,799
PGMs ounces sold (oz) 32,000 to 37,000 15,699
Diversified revenue
(millions) $245 to $285 $164.8
---------------------------- ---------------------- --------------
GEOs Sold (oz) 510,000 to 570,000 268,758
---------------------------- ---------------------- --------------
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.
Sustainability Updates
During the quarter, we published our 2026 Sustainability Report, highlighting our sustainability-related initiatives and disclosures, including expanded disclosure relating to communities and Indigenous Peoples and enhanced climate-related disclosure. Franco-Nevada was recognized as one of Corporate Knights' Best 50 Corporate Citizens in Canada for 2026 and achieved an "A" rating in CDP's Supplier Engagement Assessment. We continued to strengthen our community engagement and contribution initiatives through operator partnerships, including support for the Boys & Girls Club Early Learning Center in Eureka, Nevada with i-80 Gold and for a community-based facility in Rustenburg, South Africa with Sibanye-Stillwater. During the quarter, we received a record number of applications for the Franco-Nevada Mining Industry Scholarship Program following the expansion of the program in partnership with the Young Mining Professionals Scholarship Fund.
Q2 2026 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets amounted to 114,111 GEOs for Q2 2026, an increase of 23% from 92,449 GEOs in Q2 2025. This was primarily due to higher deliveries from Antapaccay, Antamina, South Arturo and Musselwhite, and incremental contributions from Côté Gold, Casa Berardi, Valentine and Porcupine, which were acquired or commenced production approximately over the past year.
South America:
-- Candelaria (gold and silver stream) -- GEOs sold in Q2 2026 were lower
than those sold in Q2 2025. 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 due to
increased availability of higher-grade Phase 12 ore, combined with
increased underground mining rates as the underground insourcing
initiative nears completion. In addition, Lundin has reported strong
potential for mine life extensions through underground extensions, open
pit push backs (Phase 14) and surface projects. The underground expansion
is expected to achieve 14 ktpd in H2 2027 and progress towards 22 ktpd by
2030.
-- Antapaccay (gold and silver stream) -- GEOs sold in Q2 2026 were higher
than those sold in Q2 2025, primarily due to processing of higher-grade
ore. In addition, delivery shortfalls were experienced in the prior year
period.
-- Antamina (22.5% silver stream) -- Silver ounces sold in Q2 2026 were
higher than in Q2 2025. The increase in deliveries is attributable to
higher silver grades in the current period and timing of shipments. Q3
2026 deliveries to Franco-Nevada are expected to be lower based on lower
concentrator throughput at the mine in Q2 2026.
-- Tocantinzinho (gold stream) -- GEOs sold in Q2 2026 were relatively
consistent with those sold in Q2 2025. G Mining Ventures expects
production to be weighted towards H2 2026 as higher-grade mineralization
becomes available in accordance with the mine plan.
-- Condestable (gold and silver stream) -- GEOs sold in Q2 2026 were higher
than those sold in Q2 2025. The stream transitioned from fixed deliveries
to variable deliveries with Q2 2026 being the first period with variable
deliveries. Rio2 Limited expects to receive approval for the modification
of the mine EIA during Q3 2026, which will permit an increase in
production from 8,400 tonnes per day to 10,000 tpd, and will continue to
assess opportunities to expand production further. In June 2026, Rio2
finalized an updated National Instrument 43-101 Technical Report which
highlighted continued resource and reserve replacement and outlined a
14-year life of mine through 2039.
-- Yanacocha (1.8% royalty) -- GEOs from our Yanacocha royalty in Q2 2026
were relatively consistent with Q2 2025. Newmont anticipates production
from Yanacocha for 2026 of approximately 460,000 gold ounces, with
272,000 gold ounces produced in H1 2026.
-- PSJ Cobre Mendocino (San Jorge) (7.5% royalty) -- PSJ Cobre Mendocino
(formerly San Jorge), a copper-gold project located in the province of
Mendoza in Argentina, obtained approval under Argentina's Large
Investment Incentive Regime (RIGI) in May 2026. A feasibility study is
expected in late 2026 and initial production is planned for 2029.
Central America & Mexico:
-- Guadalupe-Palmarejo (50% gold stream) -- GEOs sold in Q2 2026 were
slightly lower than in Q2 2025, primarily due to the processing of a
larger quantity of higher-grade ore in the previous year. In July 2026,
Coeur Mining announced positive exploration results from an extensive
exploration program. Drilling along the Main Mine Trend has further
expanded mineralization at both the Hidalgo Corridor and Independencia
Sur, where results are expected to add near-term reserves, some of which
is expected to be within Franco-Nevada's stream boundaries.
Canada:
-- Côté Gold (7.5% GMR) -- Production (on a 100% basis) from
Côté Gold in Q2 2026 was 96,200 gold ounces, in line with the
prior year period, where production was 96,000 gold ounces. The
replacement of the conveyor belt in May 2026 and the commissioning of a
second cone crusher allowed the plant to operate at near full capacity in
June 2026. IAMGOLD expects production to increase and unit costs to
decline through H2 2026. In June 2026, IAMGOLD released an updated
Mineral Resource estimate integrating the Côté and Gosselin
zones into a consolidated block model, outlining Measured and Indicated
Mineral Resources of 20.3 million ounces of gold (838.0 Mt at 0.75 g/t
Au) and Inferred Mineral Resources of 3.5 million ounces of gold (177.1
Mt at 0.61 g/t Au). An updated Mineral Reserve estimate and updated mine
plan outlining near-term opportunities to increase processing capacity to
40,000 tpd are expected in Q4 2026. In parallel, IAMGOLD is continuing to
evaluate opportunities for a larger-scale expansion over the long term.
-- Detour Lake (2% royalty) -- Detour produced 207,279 ounces of gold during
the quarter, a 23% increase over the prior year period driven by a
higher-grade sequence and strong mine and mill performance. Development
activities for the underground project continued during the quarter, with
the exploration ramp reaching a depth of 180 metres as of June 30, 2026.
Exploration drilling, which totalled 52,763 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 fewer GEOs in Q2 2026 compared to
Q2 2025 as access to higher-grade stopes was delayed based on mining
sequence. In June 2026, Hemlo Mining Corporation announced an increased
Mineral Resource estimate which outlined Measured and Indicated Mineral
Resources of 387,000 ounces of gold (3,086 kt at 3.90 g/t
Au) attributable to Franco-Nevada's 50% portion of the Interlake claims,
a year-over-year increase of 18%.
-- Porcupine (4.25% royalty) -- GEOs sold in Q2 2026 increased compared to
Q2 2025. In June 2026, Discovery acquired Glencore's Kidd Operations,
providing Discovery with the potential to double production from the
Timmins complex to 500,000 gold ounces annually. Discovery expects to
release updated mineral resource updates for Dome and TVZ by the end of
2026. Additionally, Discovery has initiated the development of an
exploration ramp between Hoyle Pond and Owl Creek to facilitate drilling
along the trend.
-- Greenstone (3% royalty) -- Equinox Gold reported operational improvements
in Q2 2026, as the number of days operating above nameplate capacity
continues to increase, with 69% of days exceeding 27,000 tpd compared to
51% in the immediately preceding quarter. This trend is anticipated to
continue into H2 2026 resulting in expected higher production
quarter-over-quarter for the balance of the year. Equinox Gold expects
Greenstone to produce between 250,000 and 275,000 gold ounces in 2026.
-- Valentine (3% royalty) -- Equinox Gold reported that the ramp-up is
progressing well, with the mine averaging 113% of nameplate capacity for
Q2 2026. Production is expected to increase in H2 2026, driven by higher
mill feed grades and continued strong plant performance. Following its
acquisition of Orla Mining on July 31, 2026, Equinox Gold revised its
2026 production guidance for Valentine from 150,000 -- 200,000 gold
ounces to 140,000 --150,000 gold ounces. In August 2026, Equinox Gold
approved the construction of the Valentine Phase 2 expansion project.
Construction is expected to be completed in late 2028.
-- Musselwhite (5% NPI) -- GEOs sold in Q2 2026 were higher than in Q2 2025.
Production at the mine was higher due to improvements in stope sequencing
and underground development rates. In addition, of the 5,198 GEOs
recognized in Q2 2026, 3,951 GEOs were related to the 2025 annual period.
On July 31, 2026, Equinox Gold completed its acquisition of Orla Mining.
Equinox Gold expects production of between 100,000 and 110,000 gold
ounces from Musselwhite for the period of August 1, 2026 to December 31,
2026.
-- Sudbury (gold and PGM stream) -- GEOs sold from our Sudbury stream were
higher in Q2 2026 than in Q2 2025, supported by Magna Mining's record
quarterly production under its ownership and continued operational
momentum at McCreedy West, where underground development is expected to
exceed 2,350 feet during the quarter, also a record under Magna
ownership.
-- Canadian Malartic (1.5% royalty) -- At Odyssey, production from East
Gouldie ramped up during the quarter. Gold production at Odyssey was a
record and in line with plan at 28,800 ounces, with Odyssey expected to
contribute approximately 120,000 ounces of gold in 2026. In July 2026,
Agnico Eagle Mines Limited reported a rock mass movement along the north
wall of the Barnat open pit. Franco-Nevada's royalty does not cover the
Barnat pit. Agnico Eagle believes that the incident will not affect the
development or production outlook for the Odyssey mine. For 2026,
Franco-Nevada estimates 600-700 GEOs will be received from our royalty
interest at Canadian Malartic.
-- AurMac (1% royalty post buy-back) -- Banyan Gold announced the final
Environmental Impact Statement and Record of Decision are on track for Q4
2026. The draft EIS was published in April. An updated feasibility study
is expected in H2 2026 with an investment decision expected in H1 2027.
-- Kerr-Addison (1% royalty) -- In July 2026, Cadillac Mines completed a
C$385 million IPO, including a C$60 million investment from Agnico Eagle,
providing significant funding to develop the Kerr-Addison project.
U.S.:
-- South Arturo (4-9% royalties) -- GEOs sold in Q2 2026 were higher than in
Q2 2025, as Nevada Gold Mines continues to process ore from the South
Arturo pit in 2026, in line with the Carlin mine plan. Production from
Phase 1 is expected to continue through to the end of 2026.
-- Bald Mountain (1-5% royalties) -- Kinross reported that mining is
advancing well at Bald Mountain Redbird and that the heap leach pad
expansion is continuing ahead of schedule.
-- i-80 (1.5% royalty) -- i-80 Gold reported that construction at the
Archimedes project, which commenced in Q3 2025, continues to be on
schedule with first gold expected in Q4 2026. The refurbishment of the
Lone Tree autoclave and plant also continues to advance and the plant is
expected to achieve first pour in late 2027.
-- Stibnite (1.7% gold royalty and 100% silver royalty) -- Perpetua
Resources reported that it had commenced critical path construction
activities for the 2026 field season, following a decision in May 2026 by
the United States District Court of Idaho denying a motion for a
preliminary injunction filed by special interest groups. Perpetua
anticipates operations to commence in 2029.
-- Stillwater (5% royalty) -- Sibanye-Stillwater announced the phased
implementation of a new technique to achieve larger stope sizes to be
completed by H2 2028 and steady state production of 410,000 2E PGM ounces
by 2029. Stillwater West is expected to provide future optionality and
upside.
-- Castle Mountain (2.65-4.65% royalties) -- Equinox Gold expects a final
Environmental Impact Statement and Federal Record of Decision for the
Castle Mountain Expansion in Q4 2026. An updated feasibility study is
expected in H2 2026 with an investment decision in H1 2027.
Rest of World:
-- Western Limb (gold and platinum stream) -- GEOs sold in Q2 2026 were
higher than in the prior year quarter. Sibanye-Stillwater reported that
the ramp-up of the K4 shaft was 77% complete as of June 2026.
Sibanye-Stillwater expects UG2 brownfield projects to sustain an annual
underground production profile of 1.5Moz 4E PGM beyond 2035 and increases
the mechanized and UG2 contributions to 64% and 80%, respectively. This
indicative production profile exceeds our initial expectations at the
time of the transaction.
-- Tasiast (2% royalty) -- GEOs from our Tasiast royalty were higher in Q2
2026 than in Q2 2025, primarily driven by higher throughput and timing of
ounces processed through the mill.
-- Bullabulling (2.45% royalty) -- In July 2026, Minerals 260 Limited
released an updated mineral resource estimate that substantially exceeded
the initial maiden resource estimate. Concurrently, Minerals 260
announced the completion of a positive pre-feasibility study, outlining
an annual production profile of 150,000 gold ounces over 19 years with
production expected to commence in Q4 2028. Infrastructure for the
processing plant of 5Mtpa will be designed to support a potential
expansion to 7.5 Mtpa. The pre-feasibility study was based on the maiden
ore reserve estimate. The expanded resource estimate is expected to be
incorporated into a reserve update as part of a definitive feasibility
study targeted for Q1 2027.
-- Séguéla (0.6% royalty) -- In July 2026, Fortuna Mining
announced it had made a final investment decision for the
Séguéla plant expansion, representing a 30% expansion and
providing a pathway to production of over 200,000 gold ounces per year.
The project includes an expansion of the Séguéla processing
facility, upgrades to supporting infrastructure, and development of the
Sunbird underground mine.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $82.2 million in revenue, compared to $62.7 million in Q2 2025.
Other Mining:
-- Vale (iron ore royalty) -- Revenue from the Vale royalty increased when
compared to Q2 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, partly offset
by higher transportation costs.
-- LIORC -- Revenue from our attributable interest on the Carol Lake mine in
Q2 2026 was relatively consistent with Q2 2025. Production at IOC in Q2
2026 was lower than Q2 2025 but improved relative to Q1 2026 as IOC is
implementing a multi-year program to address operating challenges.
-- Caserones (0.517% royalty) -- In June 2026, Lundin Mining reported that
annual cathode production at the mine increased to 25,000 tonnes
following leaching improvements. Lundin expects to increase utilization
of the cathode plant and further increase cathode production to
approximately 40,000 tonnes per year, partially offsetting expected lower
sulphide head grades in future years. Subsequent to quarter-end,
production at Caserones was impacted by severe winter storms, which
restricted site access and disrupted power supply for 13 days.
-- Copper World (2.085% royalty) -- Hudbay reported that the Copper World
definitive feasibility study is progressing, with 95% of the engineering
work completed, and a project sanctioning decision on track for late 2026
and first production expected in H2 2029.
-- Crawford (2% royalty) -- Canada Nickel Company received a positive
decision statement from the federal Minister of Environment, Climate
Change and Nature, and is advancing towards a construction decision in
2027.
Energy:
-- U.S. (various royalty rates) -- Revenue from our U.S. Energy interests
increased to $46.2 million in Q2 2026, compared to $38.5 million in Q2
2025. The increase was primarily due to a higher share of production
earned from our Continental Resources interests and stronger realized oil
prices, including the benefit of higher natural gas liquids pricing
across our principal gas assets. Overall, we continue to see steady
production across the basins.
-- Canada (various royalty rates) -- Revenue from our Canadian Energy
interests was $24.2 million in Q2 2026, compared to $14.0 million in Q2
2025 due to higher realized oil prices. We earned higher revenue from our
Weyburn interests due to the leverage of the NRI royalty to the increase
in oil prices in the quarter.
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 September 24, 2026, to shareholders of record on September 10, 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 Q2 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 Q2 2026 quarterly results. Interested investors are invited to participate as follows:
Conference Call and Webcast: August 12(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/4wJByFO
join the conference call by phone without
operator assistance. Participants will receive
an automated call back after entering their name
and phone number):
Webcast: www.franco-nevada.com
Replay (available until August 19(th) ): Toll--Free: 1-888-660-6345
International: 289-819-1450
Pass code: 08003#
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.
For more information, please visit our website at www.franco-nevada.com
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
June 30,
(expressed in millions, except
GEOs and Gold Price) 2026 2025
----------------------------------- ---------------- ------------
GEOs 132,405 112,093
------------------------------------ ------------ -----------
Less:
Cash Costs $ 45.9 $ 33.5
Divided by: Gold price per ounce $ 4,500 $ 3,279
------------------------------------ ------------ -----------
10,200 10,217
----------------------------------- ------------ -----------
Net GEOs 122,205 101,876
------------------------------------ ------------ -----------
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 and six months ended June 30, 2026
dated August 11, 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 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 For the six months
ended ended
June 30, June 30,
(expressed in
millions,
except per
share
amounts) 2026 2025 2026 2025
--------------- --------- ---------- ---------- -------
Net income $ 354.0 $ 247.1 $ 822.6 $ 456.9
Impairment
reversal -- (4.1) -- (4.1)
Foreign
exchange gain
and other
income (7.1) (4.1) (19.5) (9.8)
Tax effect of
adjustments 2.3 (0.4) 4.4 1.0
---------------- ----- ------ ------ ------
Adjusted Net
Income $ 349.2 $ 238.5 $ 807.5 $ 444.0
Basic weighted
average shares
outstanding 192.9 192.7 192.8 192.6
---------------- ----- ------ ------ ------
Adjusted Net
Income per
share $ 1.81 $ 1.24 $ 4.19 $ 2.31
---------------- ----- ------ ------ ------
For the three For the six months
months ended ended
June 30, June 30,
(expressed in
millions,
except
Adjusted Net
Income
Margin) 2026 2025 2026 2025
--------------- ------ ------- -------- -------
Adjusted Net
Income $349.2 $ 238.5 $ 807.5 $ 444.0
Divided by:
Revenue 580.9 369.4 1,231.6 737.8
---------------- ----- ------ ------- ------
Adjusted Net
Income Margin 60.1% 64.6% 65.6% 60.2
---------------- ----- ------ ------- ------
For the three For the six months
months ended ended
June 30, June 30,
(expressed in
millions,
except per
share
amounts) 2026 2025 2026 2025
--------------- ------ ---------- ----------- -------
Net income $354.0 $ 247.1 $ 822.6 $ 456.9
Income tax
expense 104.9 68.6 231.2 128.4
Finance income (6.8) (6.6) (12.3) (17.7)
Finance
expenses 0.7 0.8 1.5 1.5
Depletion and
depreciation 84.0 64.0 161.9 132.4
Gain on
buy-back of
royalty and
stream
interests -- -- (63.8) --
Impairment
reversal -- (4.1) -- (4.1)
Foreign
exchange gain
and other
income (7.1) (4.1) (19.5) (9.8)
---------------- ----- ------ ------- ------
Adjusted EBITDA $529.7 $ 365.7 $ 1,121.6 $ 687.6
Basic weighted
average shares
outstanding 192.9 192.7 192.8 192.6
---------------- ----- ------ ------- ------
Adjusted EBITDA
per share $ 2.75 $ 1.90 $ 5.82 $ 3.57
---------------- ----- ------ ------- ------
For the three For the six months
months ended ended
June 30, June 30,
(expressed in
millions,
except
Adjusted
EBITDA
Margin) 2026 2025 2026 2025
--------------- ------ ------- -------- -------
Adjusted EBITDA $529.7 $ 365.7 $1,121.6 $ 687.6
Divided by:
Revenue 580.9 369.4 1,231.6 737.8
---------------- ----- ------ ------- ------
Adjusted EBITDA
Margin 91.2% 99.0% 91.1% 93.2%
---------------- ----- ------ ------- ------
3. AVAILABLE CAPITAL: Available Capital comprises our cash and cash equivalents of $1,014.2 million as at June 30, 2026, our equity investments (excluding our long-term investment in Labrador Iron Ore Royalty Corporation) of $1,041.2 million and the amounts available to borrow under our corporate revolving credit facilities totaling $1.5 billion and their accordions of $750.0 million as at June 30, 2026.
FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)
At June 30, At December 31,
2026 2025
----------------------------------- ------------- -----------------
ASSETS
Cash and cash equivalents $ 1,014.2 $ 670.9
Receivables 237.5 241.9
Gold and silver bullion and stream
inventory 112.6 40.1
Other current assets 23.6 68.5
------------------------------------ --------- -------------
Current assets $ 1,387.9 $ 1,021.4
Royalty, stream and working
interests, net $ 6,262.3 $ 6,043.1
Investments 1,215.1 1,141.3
Loans receivable 17.6 --
Deferred income tax assets 18.8 23.2
Other assets 20.5 12.4
------------------------------------ --------- -------------
Total assets $ 8,922.2 $ 8,241.4
------------------------------------ --------- -------------
LIABILITIES
Accounts payable and accrued
liabilities $ 38.6 $ 44.9
Income tax liabilities 109.4 78.1
------------------------------------ --------- -------------
Current liabilities $ 148.0 $ 123.0
Deferred income tax liabilities $ 503.8 $ 440.7
Income tax liabilities 21.6 33.8
Other liabilities 8.1 8.6
------------------------------------ --------- -------------
Total liabilities $ 681.5 $ 606.1
------------------------------------ --------- -------------
SHAREHOLDERS' EQUITY
Share capital $ 5,817.6 $ 5,803.4
Contributed surplus 17.6 21.6
Retained earnings 2,045.7 1,379.8
Accumulated other comprehensive
income 359.8 430.5
------------------------------------ --------- -------------
Total shareholders' equity $ 8,240.7 $ 7,635.3
------------------------------------ --------- -------------
Total liabilities and shareholders'
equity $ 8,922.2 $ 8,241.4
------------------------------------ --------- -------------
The condensed consolidated interim financial statements and accompanying notes can be found in our Q2 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 For the six months
ended ended
June 30, June 30,
2026 2025 2026 2025
---------------- -------- ----------- -------- ----------
Revenue
Revenue from
royalty,
streams and
working
interests $ 580.9 $ 366.7 $1,231.6 $ 732.2
Interest revenue -- 2.7 -- 5.6
----------------- ------- ---------- ------- ---------
Total revenue $ 580.9 $ 369.4 $1,231.6 $ 737.8
Costs of sales
Costs of sales $ 45.9 $ 33.5 $ 92.4 $ 72.0
Depletion and
depreciation 84.0 64.0 161.9 132.4
----------------- ------- ---------- ------- ---------
Total costs of
sales $ 129.9 $ 97.5 $ 254.3 $ 204.4
----------------- ------- ---------- ------- ---------
Gross profit $ 451.0 $ 271.9 $ 977.3 $ 533.4
----------------- ------- ---------- ------- ---------
Other operating
expenses
(income)
General and
administrative
expenses $ 7.8 $ 9.6 $ 17.0 $ 19.0
Share-based
compensation
(recovery)
expenses (3.5) 2.8 2.7 8.5
Impairment
reversal -- (4.1) -- (4.1)
Gain on
buy-back of
royalty and
stream
interests -- -- (63.8) --
Loss (gain) on
sale of gold
and silver
bullion 1.0 (42.2) (2.1) (49.3)
----------------- ------- ---------- ------- ---------
Total other
operating
expenses
(income) $ 5.3 $ (33.9) $ (46.2) $ (25.9)
----------------- ------- ---------- ------- ---------
Operating income $ 445.7 $ 305.8 $1,023.5 $ 559.3
----------------- ------- ---------- ------- ---------
Foreign exchange
gain and other
income $ 7.1 $ 4.1 $ 19.5 $ 9.8
----------------- ------- ---------- ------- ---------
Income before
finance items
and income
taxes $ 452.8 $ 309.9 $1,043.0 $ 569.1
Finance items
Finance income $ 6.8 $ 6.6 $ 12.3 $ 17.7
Finance expenses (0.7) (0.8) (1.5) (1.5)
----------------- ------- ---------- ------- ---------
Net income before
income taxes $ 458.9 $ 315.7 $1,053.8 $ 585.3
Income tax
expense 104.9 68.6 231.2 128.4
----------------- ------- ---------- ------- ---------
Net income $ 354.0 $ 247.1 $ 822.6 $ 456.9
----------------- ------- ---------- ------- ---------
Other
comprehensive
(loss) income,
net of taxes
Items that may
be reclassified
subsequently to
profit and
loss:
Currency
translation
adjustment $ (63.2) $ 95.7 $(115.1) $ 98.4
Items that will
not be
reclassified
subsequently to
profit and
loss:
(Loss) gain on
changes in the
fair value of
equity
investments
at fair value
through other
comprehensive
income
("FVTOCI"),
net of income
tax (77.6) 31.2 56.1 180.0
----------------- ------- ---------- ------- ---------
Other
comprehensive
(loss) income,
net of taxes $(140.8) $ 126.9 $ (59.0) $ 278.4
Comprehensive
income $ 213.2 $ 374.0 $ 763.6 $ 735.3
----------------- ------- ---------- ------- ---------
Earnings per
share
Basic $ 1.84 $ 1.28 $ 4.27 $ 2.37
Diluted $ 1.83 $ 1.28 $ 4.26 $ 2.37
Weighted average
number of shares
outstanding
Basic 192.9 192.7 192.8 192.6
Diluted 193.3 193.0 193.2 192.9
----------------- ------- ---------- ------- ---------
The condensed consolidated interim financial statements and accompanying notes can be found in our Q2 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 For the six months
ended ended
June 30, June 30,
2026 2025 2026 2025
------------------ -------- ---------- -------- ----------
Cash flows from
operating
activities
Net income $ 354.0 $ 247.1 $ 822.6 $ 456.9
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depletion and
depreciation 84.0 64.0 161.9 132.4
Share-based
compensation
expenses 1.0 1.0 2.1 3.1
Impairment
loss
(reversal) -- (4.1) -- (4.1)
Gain on
buy-back of
royalty and
stream
interests -- -- (63.8) --
Unrealized
foreign
exchange
gain (2.5) (5.2) (3.8) (11.2)
Deferred
income tax
expense 36.1 37.2 69.8 46.3
Loss (gain) on
sale of gold
and silver
bullion 1.0 (42.2) (2.1) (49.3)
(Gain) loss on
derivative
financial
instruments (4.1) (5.7) (15.1) (5.6)
Other non-cash
items 0.1 0.4 (0.1) --
Gold and silver
bullion from
royalties
received in-kind (50.3) (10.9) (97.7) (30.1)
Proceeds from sale
of gold and
silver bullion 59.8 147.1 74.9 177.3
Receipt of
deposits and
interest from
Canada Revenue
Agency -- -- 49.5 --
Increase in other
assets -- -- (8.2) --
Increase
(decrease) in
non-current
income tax
liabilities 9.2 (13.5) (12.2) (6.8)
------------------- ------- --------- ------- ---------
Operating cash
flows before
changes in
non-cash working
capital $ 488.3 $ 415.2 $ 977.8 $ 708.9
Changes in
non-cash
working
capital:
Decrease in
receivables $ 30.0 $ 13.5 $ 4.4 $ 5.1
Increase in
other
current
assets (0.7) (20.0) (3.9) (11.1)
(Decrease)
increase in
accounts
payable and
accrued
liabilities (10.4) 1.4 (6.1) 4.7
(Decrease)
increase in
current
income tax
liabilities (24.7) 20.2 30.7 11.6
------------------- ------- --------- ------- ---------
Net cash provided
by operating
activities $ 482.5 $ 430.3 $1,002.9 $ 719.2
------------------- ------- --------- ------- ---------
Cash flows used in
investing
activities
Acquisition of
royalty, stream
and working
interests $ (80.3) $(1,360.4) $(529.7) $(1,865.6)
Proceeds from
buy-back of
royalty interest -- -- 97.5 --
Acquisition of
investments (19.8) (3.0) (55.1) (55.3)
Loan advanced to
Life of Mine
Investments Inc. (17.8) -- (17.8) --
Repayment of loan
receivable from
EMX Royalty
Corporation -- 10.0 -- 10.0
Proceeds from sale
of investments 16.9 15.8 16.9 25.5
Acquisition of
gold bullion from
buy-back of
stream interest -- -- (10.2) --
Acquisition of
energy well
equipment (0.3) (0.4) (0.6) (1.6)
Acquisition of
property and
equipment (0.1) (0.1) (0.3) (2.1)
------------------- ------- --------- ------- ---------
Net cash used in
investing
activities $(101.4) $(1,338.1) $(499.3) $(1,889.1)
------------------- ------- --------- ------- ---------
Cash flows used in
financing
activities
Payment of
dividends $ (80.6) $ (67.0) $(161.1) $ (137.2)
Capitalized debt
issue costs (0.8) -- (1.5) --
Proceeds from
exercise of stock
options 0.2 0.9 0.6 4.3
------------------- ------- --------- ------- ---------
Net cash used in
financing
activities $ (81.2) $ (66.1) $(162.0) $ (132.9)
------------------- ------- --------- ------- ---------
Effect of exchange
rate changes on
cash and cash
equivalents $ (0.4) $ 6.1 $ 1.7 $ 11.8
------------------- ------- --------- ------- ---------
Net change in cash
and cash
equivalents $ 299.5 $ (967.8) $ 343.3 $(1,291.0)
------------------- ------- --------- ------- ---------
Cash and cash
equivalents at
beginning of
period $ 714.7 $ 1,128.1 $ 670.9 $ 1,451.3
------------------- ------- --------- ------- ---------
Cash and cash
equivalents at end
of period $1,014.2 $ 160.3 $1,014.2 $ 160.3
------------------- ------- --------- ------- ---------
Supplemental cash
flow information:
Income taxes paid $ 89.3 $ 45.7 $ 147.4 $ 93.2
Dividend income
received $ 1.5 $ 2.2 $ 3.1 $ 5.5
Interest and
standby fees paid $ 0.6 $ 0.4 $ 1.4 $ 1.4
The condensed consolidated interim financial statements and accompanying notes can be found in our Q2 2026 Quarterly Report available on our website
View original content:https://www.prnewswire.com/news-releases/franco-nevada-reports-q2-2026-results-302848909.html
SOURCE Franco-Nevada Corporation