Franco-Nevada Corporation (FNV) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 5, 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 First Quarter 2022 Results Conference Call and Webcast. This call is being recorded on May the 5th, 2022. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session where you may ask a question through the phone line or webcast. [Operator Instructions]

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

Bonavie Tek

Thank you, Michelle. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's first 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.

Paul Brink, President and CEO of Franco-Nevada, will provide some introductory remarks; followed by Sandip Rana, Chief Financial Officer of Franco-Nevada, who will provide a brief review of our results. 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'm pleased to announce strong Q1 results that once again demonstrate the high margin nature of our business. The quarter benefited from strong precious metal energy and iron ore prices. The energy contribution was particularly strong, offset somewhat by lower precious metal deliveries. Our totaled yields are on track to meet annual guidance.

With slightly lower precious metals deliveries than expected from Cobre, Candelaria and Sudbury. The impacts were planned maintenance, shipment timing and transport constraints. None of the issues are likely to impact annual production.

Oil and gas prices have been strong. Gas prices in particular remain above $7 per Mcf, almost double the 375 per Mcf we used to compile our guidance with. We're getting accelerated payback from our Marcellus and Haynesville natural gas investments.

During the quarter we published our fourth annual year ESG report. A highlight for this year was the addition of comprehensive emissions disclosure for our producing mining assets. We've made further progress on our diversity goals as our team grows. Our efforts continue to be recognized, in last month, we were named through Corporate Knights List of Best 50 Canadian Corporate Citizens.