Franco-Nevada Corp (FNV) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 7, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen, and welcome to the Franco-Nevada Corporation's Third Quarter 2022 Results Conference Call and Webcast. At this time -- the call is being recorded November 7, 2022. [Operator Instructions]

I would now like to turn the conference over to your host, Bonavie Tek, Vice President, Finance. Please go ahead.

Bonavie Tek

Thank you, Michelle. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's third quarter 2022 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results. The presentation is also available to view on the webcast.

During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks; Sandip Rana, Chief Financial Officer, will provide a brief review of our results; and Eaun Gray, Senior Vice President, Business Development, will provide an overview of our Magino transaction. This will be followed by a Q&A period. Our full executive team is available to answer any questions. Participants may submit questions by telephone or via the webcast.

We would like to remind participants that some of today's commentary may contain forward-looking information, and we refer you to our detailed cautionary note on Slide 3 of this presentation.

I will now turn the call over to Paul Brink, President and CEO of Franco-Nevada.

Paul Brink

Thanks, Bonavie, and good morning. I'd like to start by announcing that Jacques Perron will be joining our Board of Directors. We pride ourselves on the technical capabilities of our Board, and Jacques will certainly add in that area amongst others. Jacques had a very successful career in the industry, has led a number of companies, and I'm sure is well known to most to you. We got to know Jacques through his running companies where we have royalty interest, in particular while he was CEO of Pretium operating Brucejack, and as the CEO of St Andrew Goldfields running Holt and Holloway. Jacques, welcome to the Board of Franco-Nevada.

Turning to our Q3 results. We saw good underlying production from our diversified portfolio of assets in the quarter, while precious metal prices declined the impact on our revenue in the quarter was partially offset by higher energy prices. Our Q3 GEOs are lower than Q2 with two main items. While Cobre Panama had record production for the quarter, the strong performance isn't fully reflected in our Q3 GEO sales due to the timing of shipments. We also had a lower contribution from our Vale iron ore royalty. Despite these items, Franco-Nevada has earned record GEOs revenue, adjusted net income and adjusted EBITDA for the three quarters through September. We're on track to meet our 2022 guidance. We expect to be at the higher end of our overall GEO guidance range and at the lower end of our precious metal range.