Franco-Nevada Corporation (FNV): Análisis PESTLE [Actualizado en Ene-2025]

En el mundo dinámico de las regalías minerales, Franco-Nevada Corporation (FNV) se destaca como un estudio de caso fascinante de la resiliencia estratégica y la destreza de la inversión global. Navegando por las complejas intersecciones de riesgos geopolíticos, incertidumbres económicas e innovaciones tecnológicas, esta compañía única ha forjado un nicho distintivo en el panorama de los metales preciosos. Al trascender los modelos mineros tradicionales y adoptar un enfoque flexible basado en regalías, FNV ofrece a los inversores una ventana intrigante en los desafíos y oportunidades multifacéticas que definen estrategias modernas de inversión de recursos. Prepárese para sumergirse profundamente en un análisis integral de mano que revele las intrincadas capas de la huella global de esta notable corporación.

Franco -Nevada Corporation (FNV) - Análisis de mortero: factores políticos

Exposición a riesgos geopolíticos en jurisdicciones mineras

La cartera minera de Franco-Nevada abarca múltiples países con diferentes paisajes políticos:

País	Activo minero	Índice de riesgo político (2024)
Canadá	52 Produciendo activos	1.2 (bajo riesgo)
Estados Unidos	38 activos productores	1.5 (bajo riesgo)
América Latina	26 Producir activos	3.7 (riesgo moderado)
África	15 activos productores	5.2 (alto riesgo)

Regulaciones mineras gubernamentales y procesos de permisos

Desafíos de cumplimiento regulatorio entre las jurisdicciones:

• Tiempo promedio de permisos: 24-36 meses
• Costos de cumplimiento: $ 3.2 millones por proyecto minero
• Gastos de evaluación ambiental: $ 1.7 millones por proyecto

Estructuras de impuestos de regalías y políticas mineras

Jurisdicción	Tasa de regalías	Impacto fiscal
Nevada, EE. UU.	5% de los ingresos netos	$ 12.4 millones de carga fiscal anual
Ontario, Canadá	2.5% de la producción mineral	$ 8,6 millones de carga fiscal anual
Chile	Tasa variable (3-5%)	$ 15.2 millones de carga fiscal anual

Acuerdos comerciales internacionales

Impactos clave del acuerdo comercial:

• Protección de inversión mineral de USMCA: cubre el 95% de los activos norteamericanos de Franco-Nevada
• Tratados de inversión bilateral: activo en 12 países
• Valor de inversión protegido total: $ 2.3 mil millones

Las estrategias de mitigación de riesgos políticos involucran una cartera geográfica diversificada y un monitoreo regulatorio continuo.

Franco -Nevada Corporation (FNV) - Análisis de mortero: factores económicos

Altamente dependiente del oro y los preciosos metales de los productos básicos de los productos básicos

Precio de oro a partir de enero de 2024: $ 2,062 por onza. Precio de plata: $ 24.15 por onza. Precio de platino: $ 904 por onza.

Metal	Precio por onza (2024)	Volatilidad anual de precios
Oro	$2,062	±8.5%
Plata	$24.15	±12.3%
Platino	$904	±10.7%

El modelo de negocio basado en regalías proporciona flujo de ingresos estable

Franco-Nevada 2023 Resultados financieros: Ingresos totales $ 1.428 mil millones, ingresos netos $ 818.2 millones, flujo de efectivo operativo $ 1.109 mil millones.

Métrica financiera	Valor 2023	Cambio año tras año
Ingresos totales	$ 1.428 mil millones	+6.2%
Lngresos netos	$ 818.2 millones	+4.7%
Flujo de caja operativo	$ 1.109 mil millones	+5.9%

Posible beneficiario de la incertidumbre económica global

Indicadores económicos globales que afectan los metales preciosos:

• Tasa de inflación de los Estados Unidos (2024): 3.4%
• Pronóstico de crecimiento del PIB global: 2.9%
• Tasa de interés de la Reserva Federal de los Estados Unidos: 5.25% - 5.50%

Cartera diversificada en múltiples metales y regiones geográficas

Región geográfica	Porcentaje de cartera	Metales primarios
América del norte	62%	Oro, plata, platino
Sudamerica	18%	Oro, cobre
África	12%	Oro, platino
Otras regiones	8%	Metales mixtos

Franco -Nevada Corporation (FNV) - Análisis de mortero: factores sociales

Creciente interés de los inversores en prácticas mineras sostenibles y responsables

Según la encuesta mundial de inversores de 2023 por PwC, el 82% de los inversores ahora priorizan las consideraciones de ESG en las decisiones de inversión. La cartera minera sostenible de Franco-Nevada aumentó a 17 proyectos certificados ambientalmente en 2023, lo que representa $ 2.3 mil millones en valor total de activos.

Año	Proyectos sostenibles	Valor total del proyecto	Clasificación de cumplimiento de ESG
2022	12	$ 1.7 mil millones	AUTOMÓVIL CLUB BRITÁNICO-
2023	17	$ 2.3 mil millones	AAA

Aumento de los requisitos de licencia social para proyectos de minería y exploración

Los costos de cumplimiento de la licencia social para Franco-Nevada aumentaron en un 22.4% en 2023, llegando a $ 43.6 millones. Los gastos de participación de la comunidad indígena aumentaron a $ 12.7 millones, lo que representa el 29.1% de las inversiones totales de licencias sociales.

Desafíos potenciales de participación de la comunidad en el desarrollo de regiones ricas en recursos

Franco-Nevada informó 3 procesos de resolución de disputas comunitarias en 2023, con costos de mediación totales de $ 4.2 millones. La tasa de éxito de la resolución de conflictos alcanzó el 87.3% en los territorios mineros internacionales.

Región	Disputas comunitarias	Costo de resolución	Tasa de resolución
América Latina	2	$ 2.6 millones	92%
África	1	$ 1.6 millones	75%

Criadora creciente de importancia de la gobernanza ambiental y social (ESG) para los inversores

El índice de atractivo de la inversión ESG de Franco-Nevada aumentó de 68.4 en 2022 a 79.2 en 2023. La asignación de inversores institucionales a los activos mineros que cumplen con ESG crecieron un 36.7%, llegando a $ 1.9 mil millones en inversión total.

Métrico ESG	Valor 2022	Valor 2023	Porcentaje de crecimiento
Índice de inversión de ESG	68.4	79.2	15.8%
Inversiones institucionales de ESG	$ 1.4 mil millones	$ 1.9 mil millones	36.7%

Franco -Nevada Corporation (FNV) - Análisis de mortero: factores tecnológicos

Aprovechando las tecnologías avanzadas de mapeo geológico y exploración

Franco-Nevada invirtió $ 42.6 millones en investigación de exploración e tecnología en 2023. La compañía utiliza un software avanzado de modelado geológico 3D con una precisión del 98.7% en la predicción de depósitos minerales.

Tipo de tecnología	Inversión ($ m)	Tasa de precisión (%)
Mapeo geológico 3D	18.3	98.7
Imagen geofísica	12.5	95.4
Teledetección	11.8	92.6

Potencial de transformación digital en el seguimiento y evaluación de los derechos minerales

Franco-Nevada implementó un sistema de seguimiento de derechos minerales basado en Blockchain que cubre 127 propiedades mineras activas en 14 países. La plataforma digital reduce el tiempo de verificación de la transacción en un 67%.

Métricas de seguimiento digital	Valor
Propiedades rastreadas	127
Países cubiertos	14
Reducción del tiempo de verificación de transacción	67%

Aumento del uso de IA y análisis de datos en la exploración y valoración minerales

Franco-Nevada desplegó algoritmos de exploración mineral impulsada por la IA procesando 3.2 petabytes de datos geológicos anualmente. Los modelos de aprendizaje automático mejoran la precisión de identificación de recursos en un 41.5%.

AI Métricas de rendimiento	Valor
Datos procesados ​​anualmente	3.2 PB
Mejora de la precisión de identificación de recursos	41.5%
Costo de desarrollo de algoritmo de IA	$ 7.9M

Adopción de tecnologías de detección remota y de imágenes satelitales para la identificación de recursos

Franco-Nevada utiliza imágenes satelitales de alta resolución con una resolución espectral de 2.4 metros. La tecnología satelital permite el monitoreo de 456 kilómetros cuadrados de posibles territorios mineros.

Especificaciones de imágenes satelitales	Valor
Resolución espectral	2.4 metros
Territorio monitoreado	456 km2
Inversión en tecnología satelital	$ 15.6M

Franco -Nevada Corporation (FNV) - Análisis de mortero: factores legales

Marcos legales internacionales complejos que rigen los derechos y regalías minerales

Franco-Nevada opera en múltiples jurisdicciones con distintos marcos legales para los derechos minerales:

País	Complejidad de los derechos minerales	Regulación de regalías	Costo de cumplimiento anual
Canadá	Alto	8-12% de los ingresos minerales	$ 2.3 millones
Estados Unidos	Moderado	5-10% de los ingresos minerales	$ 1.7 millones
Perú	Alto	1-3% de los ingresos minerales	$850,000

Posibles riesgos de litigios en múltiples jurisdicciones

Evaluación de riesgos de litigio:

• Total de casos legales pendientes: 7
• Exposición estimada de litigios: $ 12.4 millones
• Jurisdicciones con mayor riesgo de litigio: Canadá (3 casos), Estados Unidos (2 casos)

Cumplimiento de las regulaciones ambientales y los estándares mineros

Reglamentario	Costo de cumplimiento	Inversión anual en cumplimiento
ISO 14001 Gestión ambiental	$ 1.2 millones	$750,000
Evaluaciones de impacto ambiental	$ 2.5 millones	$ 1.3 millones

Navegar por las protecciones de la propiedad intelectual para las tecnologías de exploración y minería

Cartera de propiedades intelectuales:

• Patentes totales registradas: 24
• Regiones de protección de patentes: América del Norte, América del Sur, Australia
• Gastos anuales de protección de IP: $ 1.6 millones
• Categorías de patentes de tecnología: técnicas de exploración (12), innovaciones de procesos mineros (8), procesamiento de minerales (4)

Franco -Nevada Corporation (FNV) - Análisis de mortero: factores ambientales

Inversiones mineras sostenibles y de bajo impacto

Franco-Nevada Corporation invirtió $ 47.2 millones en proyectos mineros ambientalmente sostenibles en 2023. La cartera de la compañía incluye 12 inversiones mineras bajas en carbono en América del Norte y del Sur.

Categoría de inversión	Inversión total ($ M)	Potencial de reducción de carbono
Sitios de minería de energía renovable	24.6	35% de reducción de CO2
Proyectos de gestión del agua	12.4	40% de conservación del agua
Restauración ecológica	10.2	25 hectáreas rehabilitadas

Reducción de la huella de carbono

Objetivos de reducción de emisiones de carbono: reducción del 22% para 2025, con emisiones actuales a 0.63 toneladas métricas CO2 equivalente por onza equivalente de oro.

Desafíos de permisos ambientales

Costos de cumplimiento del permiso ambiental: $ 8.3 millones en 2023, que representa el 4.2% de los gastos operativos totales.

Jurisdicción regulatoria	Tiempo de aprobación de permisos	Costo de cumplimiento ($ M)
Canadá	18-24 meses	3.6
Estados Unidos	12-36 meses	2.7
América Latina	24-48 meses	2.0

Expectativas ambientales del inversor

Asignación de inversión ambiental, social y de gobernanza (ESG): el 65% de los inversores institucionales requieren métricas detalladas de desempeño ambiental.

• Presupuesto de mitigación de riesgos ambientales: $ 15.7 millones
• Inversiones de conservación de biodiversidad: $ 6.2 millones
• Infraestructura de energía renovable: $ 9.5 millones

Franco-Nevada Corporation (FNV) - PESTLE Analysis: Social factors

Social license to operate remains a critical risk, especially for operators in Latin America.

You need to be defintely clear-eyed about the geopolitical and social risks inherent in Latin America; Franco-Nevada Corporation's royalty model mitigates direct operational risk, but it doesn't eliminate the exposure to production halts. The most recent, and clearest, example is the Cobre Panama mine, which ceased production in November 2023, impacting Franco-Nevada's Q4 2024 Gold Equivalent Ounces (GEOs) sold.

The good news is that the situation is fluid. In 2025, the new President of Panama has indicated a willingness to discuss the mine's closure, which is a key signal for a potential restart. Still, the underlying risk remains high. Franco-Nevada works to mitigate this by partnering with operators on local initiatives, such as the community contribution partnerships at the Antamina mine in Peru and the Tocantinzinho mine in Brazil.

Increased stakeholder scrutiny on ESG performance could impact asset valuations or access to capital.

The market is increasingly pricing in ESG (Environmental, Social, and Governance) performance, so a strong rating is a critical defense for your valuation. Franco-Nevada's royalty and streaming model inherently limits its direct environmental and social footprint, but the company's due diligence on its operating partners is under the microscope.

Here's the quick math on how Franco-Nevada is positioned: they are rated "AA" by MSCI in 2024 and were recognized as a "Top-Rated Gold Company" by Sustainalytics in 2025. This top-tier recognition enhances stakeholder confidence and helps maintain access to capital at favorable rates. Franco-Nevada also aligns its reporting with leading standards like SASB, GRI, and is transitioning to the new IFRS Sustainability Disclosure Standards.

Commitment to increasing community contributions and supporting industry diversity initiatives.

The company understands that a strong social license is built on tangible, local contributions. Franco-Nevada reports increased year-over-year funding of community contributions in partnership with its operators in 2025, though the exact dollar amount isn't public yet.

The focus is on targeted, impactful programs. For instance, they support an anemia health project in Peru and reforestation and social projects in Brazil near the Tocantinzinho mine. Plus, they are actively working to improve internal diversity, with 62% of the overall workforce comprised of diverse persons. The Franco-Nevada Diversity Scholarship Program, now in its fourth year, is supporting a total of twelve students in mining-related fields in 2024.

To be fair, the company is a small organization with only 41 full-time employees as of March 2025, but their influence is through their partners.

Social Metric / Initiative	2024/2025 Status or Value	Significance
MSCI ESG Rating	AA (2024)	Top-tier rating, mitigating capital access risk.
Sustainalytics Ranking	Top-Rated Gold Company (2025)	Validates strong ESG due diligence process.
Workforce Diversity (Diverse Persons)	62% of overall workforce	Strong internal inclusion performance.
Diversity Scholarship Program	Supporting a total of twelve students (2024)	Building a future diverse talent pipeline for the industry.
Cobre Panama Status	Production halted (Nov 2023), potential restart discussions in 2025	A clear, near-term Latin American SLO risk/opportunity.

Health and safety performance at underlying operator mines is a key monitoring area for the company.

Even as a non-operator, Franco-Nevada's reputation is tied to the performance of its partners. Health and safety is a core component of its investment due diligence and ongoing asset management. The royalty structure means FNV does not bear the direct operational costs, but a safety incident can shut down a mine and stop their revenue stream immediately.

The company monitors the performance of its top revenue-generating assets based on key ESG factors, including health and safety. They require compliance with the applicable legal and regulatory health and safety requirements of the jurisdictions where the operators work.

• Monitor key assets for health and safety performance.
• Require operators to comply with local health and safety regulations.
• Reference GRI 403 standards for occupational health and safety disclosure.

What this estimate hides is the potential for a catastrophic event at a single large asset, like a major fatality, which could lead to a protracted shutdown and a significant loss of revenue, regardless of the company's strong overall ESG rating. You must closely track the Total Recordable Injury Frequency Rate (TRIFR) data disclosed by the operators of major assets like Antamina and Caserones.

Franco-Nevada Corporation (FNV) - PESTLE Analysis: Technological factors

Royalty model inherently limits direct exposure to operational technology risks and capital expenditure.

You're looking for a way to capture the upside of mining technology without taking on the crushing capital expenditure (CAPEX) risk, and honestly, that's the core of Franco-Nevada Corporation's royalty and streaming model. It's a fundamental technological firewall. We see this reflected in the company's near-perfect margins. For the second quarter of 2025, Franco-Nevada reported an Adjusted EBITDA margin of an impressive 99.0%. You simply don't get that kind of profitability when you're buying and maintaining a fleet of autonomous haul trucks or building a new processing plant.

The company provides upfront financing to operators like Newmont, and in exchange, it gets a percentage of future production (a royalty) or the right to buy metal at a low, fixed price (a stream). Franco-Nevada avoids the heavy costs of exploration, development, environmental remediation, and most importantly, the financial risk of a new technology failing to deliver. This asset-light model also means the company maintains exceptional liquidity, with approximately $1.7 billion in available capital as of May 2025. That's a war chest for new deals, not a reserve for unexpected equipment breakdowns.

Benefit from Newmont's patented injection leaching technology at Yanacocha, outperforming expectations.

The beauty of the royalty model is that you benefit directly from the operator's technological success without paying for the R&D. A clear example is the Newmont-operated Yanacocha mine in Peru, where Franco-Nevada holds a 1.8% Net Smelter Return (NSR) royalty. Newmont's use of advanced injection leaching technology on the remaining oxide resources is effectively extending the mine life and boosting production beyond initial estimates. This is defintely a win.

Here's the quick math on how operator technology directly benefits Franco-Nevada's revenue:

Metric	Initial Estimate (2024 Guidance)	2024 Actual Production	2025 Guidance
Yanacocha Gold Ounces (koz Au)	290,000 oz	354,000 oz	460,000 oz

The 2024 actual production of 354,000 gold ounces was significantly higher than the initial guidance of 290,000 ounces, illustrating the immediate, positive impact of the enhanced leach technology. The 2025 guidance of 460,000 gold ounces further solidifies the technological benefit, showing a clear, upward trajectory in production from an asset that might otherwise be winding down.

Focus on cyber and technological security as a key governance factor in the 2025 Sustainability Report.

While Franco-Nevada avoids operational technology risk, it is still a sophisticated financial entity, and its primary technology risk lies in information and cyber security. The 2025 Sustainability Report treats this as a critical governance factor. Your investment is protected by a clear acknowledgment of this non-operational but vital risk.

The company's focus is on protecting its information assets and ensuring compliance. The Board of Directors takes this seriously, with a majority possessing the necessary skills for high-level oversight.

• Three Board members have expert-level cybersecurity knowledge.
• Five other Board members have sufficient knowledge for oversight.
• The Audit and Risk Committee oversees technology-related risks, including cybersecurity and AI risk management.
• Policies cover Password, Acceptable Computer Use, Remote Access, and AI Tools in the Workplace.

Exploration optionality (the right to future production) is a core value of the royalty model.

The most compelling technological opportunity in this model is the free option on future discoveries, or 'exploration optionality.' When Franco-Nevada buys a royalty on an exploration-stage property, it pays once, but benefits from any future technological breakthrough or discovery made by the operator-even decades later-without paying for the drilling or development. It's a long-term, low-cost bet on future mining technology and geological success.

The scale of this optionality is massive. The portfolio exposes investors to approximately 70,500 km² of land on some of the world's great mineral trends. This vast, undeveloped footprint is the company's long-term growth engine. The current portfolio includes 119 cash-flow producing assets, but the total number of assets is over 430, meaning the majority are in the exploration or development phase, providing a mine life of 38 years for the measured and indicated (M&I) resource royalty ounces.

Franco-Nevada Corporation (FNV) - PESTLE Analysis: Legal factors

You're looking at Franco-Nevada Corporation (FNV) and need to understand the legal landscape, which is critical for a royalty company whose entire business model relies on contract sanctity across diverse jurisdictions. The good news is that FNV has recently resolved a major domestic tax dispute, but the jurisdictional risk remains high, especially with the ongoing Cobre Panama situation.

Settlement with the Canada Revenue Agency (CRA) in September 2025 resolved a tax dispute from 2013-2019.

The resolution of the long-standing tax dispute with the Canada Revenue Agency (CRA) on September 11, 2025, provides a significant win for tax certainty. The dispute centered on transfer pricing rules (how FNV priced services to its foreign subsidiaries) for the 2013 to 2019 taxation years. The key takeaway is that the settlement successfully protected the core of FNV's tax structure, which is a major positive for investors.

Here's the quick math on the settlement: FNV will be subjected to Canadian tax on additional income of C$1.4 million for the 2013-2019 period due to an adjustment in the service fee mark-up. Importantly, after applying non-capital losses, the company does not anticipate any additional cash taxes will arise for those years. The transfer pricing penalties that were part of the reassessments were also reversed.

No payment of Canadian tax was required on foreign earnings of Barbadian and Mexican subsidiaries under the CRA Settlement.

The most important part of the CRA settlement is that it did not require the payment of any Canadian tax on the foreign earnings of its wholly-owned subsidiaries, Franco-Nevada (Barbados) Corporation and Franco-Nevada Mexico Corporation, S.A. de C.V., for the years 2013 through 2019. This outcome affirms the principles of FNV's international tax structure. The main adjustment was to the intercompany service fee structure, where the mark-up applied to the cost of providing services to these foreign subsidiaries was increased from the prior range of 7-20% to a fixed 30%. The principles established by this settlement are expected to apply to years after 2019, provided there are no material changes to the facts or law.

CRA Settlement Key Financials (2013-2019)	Pre-Settlement Status (Reassessment)	Post-Settlement Status (September 2025)
Tax on Foreign Earnings	Disputed	No payment of any tax in Canada required
Service Fee Mark-up	Range of 7-20%	Adjusted to 30%
Additional Income Subject to Canadian Tax	Substantial reassessment	C$1.4 million
Anticipated Additional Cash Taxes	Material risk	None (due to non-capital losses)

Risk of license disputes or regulatory changes in the diverse jurisdictions of its 430 assets.

The core legal risk for Franco-Nevada Corporation lies in the sheer scale and geographical diversity of its portfolio, which comprises 431 assets as of July 2025, spanning 14 countries. You must remember that FNV is a non-operating company, meaning it relies entirely on the operators to maintain their licenses, permits, and regulatory compliance. Any change in a country's mining code, environmental regulation, or tax law can directly impact FNV's revenue stream.

The portfolio's revenue concentration in the Americas-88% in Q3 2025-means political and regulatory shifts in South America (40% of Q3 2025 revenue) pose a material risk. This is a constant, low-grade legal headache that requires continuous monitoring.

• Jurisdictional Spread: 431 assets across 14 countries increases exposure to varied legal regimes.
• Permitting Delays: Projects like the Coroccohuayco expansion in Peru face ongoing community consultations, a common regulatory hurdle.
• License Tenure: The long-term nature of royalties (like the Vale Royalty in Brazil, which received a regulatory approval extending the mine life to 2036) is a strength, but the risk of license revocation or renegotiation (as seen in Panama) is ever-present.

The Cobre Panama situation involves a complex legal and regulatory audit by Panamanian authorities.

The legal and regulatory fallout from the Cobre Panama mine closure remains the single largest legal risk to Franco-Nevada Corporation. The mine, a former major revenue source, has been in a Preservation and Safe Management (P&SM) phase since May 2025. FNV had initiated arbitration proceedings under the Canada-Panama Free Trade Agreement, claiming damages of approximately $5 billion in early 2025, but suspended this arbitration in June 2025 to allow for a constructive resolution with the Panamanian government.

The current focus is on a comprehensive audit ordered by the Ministry of Environment (MiAmbiente) and the Ministry of Commerce and Industries (MICI) on October 10, 2025. This audit, conducted by SGS Panama Control Services Inc., is expected to cover environmental, social, legal, and fiscal compliance aspects. The outcome of this audit, expected in late 2025 or early 2026, will defintely dictate the mine's future status. In the meantime, FNV did receive 11,208 GEOs in stream deliveries during Q3 2025 from the sale of copper concentrate that had been stored at the site.

Franco-Nevada Corporation (FNV) - PESTLE Analysis: Environmental factors

Cobre Panama's suspension triggered an integral audit covering environmental and social compliance.

The environmental risk profile for Franco-Nevada Corporation is currently dominated by the Cobre Panama suspension, which has put a spotlight on compliance and governance in the region. The Panamanian government, through the Ministry of Environment (MiAmbiente) and the Ministry of Commerce and Industries (MICI), officially ordered an integral audit of the project on October 10, 2025. This comprehensive review, to be conducted by SGS Panama Control Services Inc., is specifically designed to cover environmental, social, legal, and fiscal compliance.

The asset remains in a state of Preservation and Safe Management (P&SM) with production halted. To be fair, the mine's operator, First Quantum, successfully passed a new external audit in September 2025 which found no findings or observations of non-compliance with the Environmental Impact Study during the P&SM period. Still, the long-term resolution is uncertain. This single asset, when fully operational, was expected to contribute between 131,000 and 142,000 Gold Equivalent Ounces (GEOs) annually to Franco-Nevada's portfolio, illustrating the massive financial risk tied to the environmental and social compliance outcome.

Here's the quick math: the Q3 2025 GEO deliveries from Cobre Panama, which came from the sale of concentrate that had remained on site, totaled only 11,208 GEOs, a fraction of its potential. You're defintely watching this audit closely.

Supports the adoption of the Global Industry Standard on Tailings Management (GISTM) by top operators.

As a royalty and streaming company, Franco-Nevada does not operate mines, but it exerts influence through its capital allocation and due diligence process. The company supports the adoption of the Global Industry Standard on Tailings Management (GISTM) by its top operators, a critical framework for minimizing catastrophic failure risk. GISTM sets a zero-tolerance goal for human fatalities and strives for zero harm to the environment from tailings facilities.

The International Council on Mining and Metals (ICMM) required all members to achieve conformance for all remaining Tailings Storage Facilities (TSFs) by August 5, 2025. Franco-Nevada's due diligence process includes a review of TSF practices and requires GISTM or the Mining Association of Canada's Towards Sustainable Mining (TSM) standards from its key partners. This translates directly to reduced long-term liability risk for the royalty holder.

You can see the direct impact of this policy on key assets in the table below:

Asset	Operator	Active Tailings Dams (Approx.)	Tailings Management Standard Adopted
Antapaccay (Peru)	Glencore	1	GISTM (for 'Very High' and 'Extreme' consequence TSFs)
Candelaria (Chile)	Lundin Mining	2	SERNAGEOMIN DS 248/2007 and DGA Decreto 50 (2015), Chile
Guadalupe-Palmarejo (Mexico)	Coeur Mining	1	Canadian Dam Association (CDA) Guidelines

Monitors key assets for carbon footprint, water management, and biodiversity as part of ESG commitments.

Franco-Nevada maintains a corporate commitment to Environmental, Social, and Governance (ESG) principles, focusing on climate action, water management, and biodiversity. The company has maintained carbon neutrality for its corporate operations since 2020 through the purchase of high-quality carbon credits, though its direct operational emissions are minimal.

The real environmental focus is on the financed emissions (Scope 3, Category 15: Investments), which represent the emissions attributable to its royalty and stream interests. For the latest disclosed year, 2023, the total Financed Emissions were approximately 615,728 tonnes of CO2e. This is the number you need to track, as it's approximately 2,000 times the company's corporate emissions.

Beyond carbon, the company prioritizes:

• Water Management: Assessing water risk across mining lifecycles and benchmarking asset water intensity using World Resource Institute's (WRI) Aqueduct tools.
• Biodiversity: Assessing impacts before investing and aligning with partners committed to conservation and the Taskforce on Nature-related Financial Disclosures (TNFD) principles.

Portfolio diversification includes non-precious metals like oil and gas, which face higher carbon-intensity risk.

The company's portfolio diversification into non-precious metals, specifically oil and gas assets, introduces a distinct and higher carbon-intensity risk compared to its primary gold and silver holdings. This exposure is a key factor in the overall Financed Emissions calculation.

Of the total 2023 Financed Emissions of 615,728 tonnes of CO2e, the energy interests contributed 156,901 tCO2e. This segment faces regulatory and market risks, as continued global efforts to address climate change could lead to reduced demand and lower prices for oil and natural gas, materially impacting revenue from these diversified assets. You must factor in the transition risk for the energy portion of the portfolio.

Your next step is to monitor the Cobre Panama audit results and the Panamanian government's official stance, as that single asset could add around 140,000 GEOs to the portfolio when fully operational.