Franco-Nevada Corp (FNV) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 11, 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 Second Quarter 2022 Results Conference Call and Webcast. This call is being recorded on August 11, 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, Christina. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's Second Quarter 2020 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; followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results; and Eaun Gray, Senior Vice President, Business Development, who will provide an overview of our Tocantinzinho 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

Thank you, Bonavie, and good morning. We're proud to report our best quarterly and half year results on record. Each of revenues, adjusted EBITDA and adjusted net income were records for the quarter. The low-risk nature of our business is most pronounced in today's inflationary environment.

Our top line precious metals stream and royalty interests helped generate our highest ever margins since adding streaming to our business, over 85% for adjusted EBITDA and 55% for adjusted net income. High energy prices in this environment are positive for us and drove an increase in our diversified GEOs, partly offset by marginally lower precious metal GEOs sold. At half year, our total GEOs sold was slightly ahead at the midpoint of our guidance range, and we're maintaining our previously issued guidance.

In July, we were delighted to announce the financing package for the Tocantinzinho property in Brazil with G Mining Ventures for $353 million. The financing package included a $250 million gold stream, $75 million term loan and a $27.5 million equity financing.