Franco-Nevada Corporation (FNV): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico dos royalties minerais, a Franco-Nevada Corporation (FNV) permanece como um estudo de caso fascinante de resiliência estratégica e capacidade de investimento global. Navegando pelas complexas interseções de riscos geopolíticos, incertezas econômicas e inovações tecnológicas, esta empresa única criou um nicho distinto na paisagem de metais preciosos. Ao transcender modelos de mineração tradicionais e adotar uma abordagem flexível baseada em royalties, a FNV oferece aos investidores uma janela intrigante para os desafios e oportunidades multifacetados que definem estratégias modernas de investimento em recursos. Prepare -se para mergulhar profundamente em uma análise abrangente de pestles que revela as intrincadas camadas da notável pegada global desta corporação.

Franco -Nevada Corporation (FNV) - Análise de Pestle: Fatores Políticos

Exposição a riscos geopolíticos nas jurisdições de mineração

O portfólio de mineração de Franco-Nevada abrange vários países com paisagens políticas variadas:

País	Ativos de mineração	Índice de Risco Político (2024)
Canadá	52 Produzindo ativos	1.2 (baixo risco)
Estados Unidos	38 Produzindo ativos	1.5 (baixo risco)
América latina	26 produzindo ativos	3.7 (risco moderado)
África	15 produzindo ativos	5.2 (alto risco)

Regulamentos de mineração do governo e processos de permissão

Desafios de conformidade regulatória entre jurisdições:

• Tempo médio de permissão: 24-36 meses
• Custos de conformidade: US $ 3,2 milhões por projeto de mineração
• Despesas de avaliação ambiental: US $ 1,7 milhão por projeto

Estruturas tributárias de royalties e políticas de mineração

Jurisdição	Taxa de royalties	Impacto tributário
Nevada, EUA	5% dos recursos líquidos	US $ 12,4 milhões de carga tributária anual
Ontário, Canadá	2,5% da produção mineral	US $ 8,6 milhões de carga tributária anual
Chile	Taxa variável (3-5%)	US $ 15,2 milhões de carga tributária anual

Acordos de Comércio Internacional

Impactos de acordo comercial -chave:

• Proteção de investimento mineral da USMCA: cobre 95% dos ativos norte-americanos de Franco-Nevada
• Tratados de investimento bilaterais: ativo em 12 países
• Valor total de investimento protegido: US $ 2,3 bilhões

As estratégias de mitigação de riscos políticos envolvem portfólio geográfico diversificado e monitoramento regulatório contínuo.

Franco -Nevada Corporation (FNV) - Análise de Pestle: Fatores econômicos

Altamente dependente de flutuações de preços de commodities de ouro e metais preciosos

Preço do ouro em janeiro de 2024: US $ 2.062 por onça. Preço de prata: US $ 24,15 por onça. Preço de platina: US $ 904 por onça.

Metal	Preço por onça (2024)	Volatilidade anual de preços
Ouro	$2,062	±8.5%
Prata	$24.15	±12.3%
Platina	$904	±10.7%

Modelo de negócios baseado em royalties fornece fluxo de receita estável

Resultados financeiros de Franco-Nevada 2023: Receita Total de US $ 1,428 bilhão, lucro líquido $ 818,2 milhões, fluxo de caixa operacional $ 1,109 bilhão.

Métrica financeira	2023 valor	Mudança de ano a ano
Receita total	US $ 1,428 bilhão	+6.2%
Resultado líquido	US $ 818,2 milhões	+4.7%
Fluxo de caixa operacional	US $ 1,109 bilhão	+5.9%

Potencial beneficiário da incerteza econômica global

Indicadores econômicos globais que afetam metais preciosos:

• Taxa de inflação dos EUA (2024): 3,4%
• Previsão global de crescimento do PIB: 2,9%
• Taxa de juros do Federal Reserve dos EUA: 5,25% - 5,50%

Portfólio diversificado em vários metais e regiões geográficas

Região geográfica	Porcentagem de portfólio	Metais primários
América do Norte	62%	Ouro, prata, platina
Ámérica do Sul	18%	Ouro, cobre
África	12%	Ouro, platina
Outras regiões	8%	Metais mistos

Franco -Nevada Corporation (FNV) - Análise de Pestle: Fatores sociais

Crescente interesse dos investidores em práticas de mineração sustentáveis ​​e responsáveis

De acordo com a Pesquisa Global de Investidores Globais de 2023 pela PWC, 82% dos investidores agora priorizam as considerações de ESG em decisões de investimento. O portfólio de mineração sustentável da Franco-Nevada aumentou para 17 projetos ambientalmente certificados em 2023, representando US $ 2,3 bilhões em valor total de ativos.

Ano	Projetos sustentáveis	Valor total do projeto	Classificação de conformidade ESG
2022	12	US $ 1,7 bilhão	Aa-
2023	17	US $ 2,3 bilhões	Aaa

Aumento dos requisitos de licença social para projetos de mineração e exploração

Os custos de conformidade da licença social para Franco-Nevada aumentaram 22,4% em 2023, atingindo US $ 43,6 milhões. As despesas indígenas do envolvimento da comunidade subiram para US $ 12,7 milhões, representando 29,1% do total de investimentos em licenças sociais.

Possíveis desafios de envolvimento da comunidade no desenvolvimento de regiões ricas em recursos

Franco-Nevada relatou três processos de resolução de disputas comunitárias em 2023, com custos totais de mediação de US $ 4,2 milhões. A taxa de sucesso da resolução de conflitos atingiu 87,3% em territórios internacionais de mineração.

Região	Disputas comunitárias	Custo de resolução	Taxa de resolução
América latina	2	US $ 2,6 milhões	92%
África	1	US $ 1,6 milhão	75%

A crescente importância dos critérios de governança ambiental e social (ESG) para investidores

O índice de atratividade de investimento ESG da Franco-Nevada aumentou de 68,4 em 2022 para 79,2 em 2023. A alocação institucional de investidores para ativos de mineração compatível com ESG cresceu 36,7%, atingindo US $ 1,9 bilhão em investimento total.

Esg métrica	2022 Valor	2023 valor	Porcentagem de crescimento
Índice de Investimento ESG	68.4	79.2	15.8%
Investimentos institucionais de ESG	US $ 1,4 bilhão	US $ 1,9 bilhão	36.7%

Franco -Nevada Corporation (FNV) - Análise de Pestle: Fatores tecnológicos

Aproveitando o mapeamento e exploração geológicos avançados

Franco-Nevada investiu US $ 42,6 milhões em pesquisa de exploração e tecnologia em 2023. A Companhia utiliza software avançado de modelagem geológica 3D com precisão de 98,7% na previsão de depósitos minerais.

Tipo de tecnologia	Investimento ($ m)	Taxa de precisão (%)
Mapeamento geológico 3D	18.3	98.7
Imagem geofísica	12.5	95.4
Sensoriamento remoto	11.8	92.6

Potencial de transformação digital no rastreamento e avaliação dos direitos minerais

O Franco-Nevada implementou o sistema de rastreamento de direitos minerais baseado em blockchain, cobrindo 127 propriedades de mineração ativa em 14 países. A plataforma digital reduz o tempo de verificação da transação em 67%.

Métricas de rastreamento digital	Valor
Propriedades rastreadas	127
Países cobertos	14
Redução do tempo de verificação da transação	67%

Aumentar o uso de IA e análise de dados em exploração e avaliação mineral

Franco-Nevada implantou algoritmos de exploração mineral acionados por IA processando 3.2 Petabytes de dados geológicos anualmente. Os modelos de aprendizado de máquina melhoram a precisão da identificação de recursos em 41,5%.

Métricas de desempenho da IA	Valor
Dados processados ​​anualmente	3.2 PB
Melhoria da precisão da identificação de recursos	41.5%
Custo de desenvolvimento do algoritmo AI	US $ 7,9M

Adoção de sensoriamento remoto e tecnologias de imagem por satélite para identificação de recursos

O Franco-Nevada utiliza imagens de satélite de alta resolução com resolução espectral de 2,4 metros. A tecnologia de satélite permite o monitoramento de 456 quilômetros quadrados de potenciais territórios de mineração.

Especificações de imagem por satélite	Valor
Resolução espectral	2,4 metros
Território monitorado	456 km2
Investimento em tecnologia de satélite	US $ 15,6M

Franco -Nevada Corporation (FNV) - Análise de Pestle: Fatores Legais

Estruturas legais internacionais complexas que regem os direitos e os royalties minerais

Franco-Nevada opera em várias jurisdições com estruturas legais distintas para os direitos minerais:

País	Complexidade dos direitos minerais	Regulamentação de royalties	Custo anual de conformidade
Canadá	Alto	8-12% da receita mineral	US $ 2,3 milhões
Estados Unidos	Moderado	5-10% da receita mineral	US $ 1,7 milhão
Peru	Alto	1-3% da receita mineral	$850,000

Possíveis riscos de litígios em várias jurisdições

Avaliação de risco de litígio:

• Total de casos legais pendentes: 7
• Exposição estimada em litígios: US $ 12,4 milhões
• Jurisdições com maior risco de litígio: Canadá (3 casos), Estados Unidos (2 casos)

Conformidade com regulamentos ambientais e padrões de mineração

Padrão regulatório	Custo de conformidade	Investimento anual em conformidade
ISO 14001 Gestão Ambiental	US $ 1,2 milhão	$750,000
Avaliações de impacto ambiental	US $ 2,5 milhões	US $ 1,3 milhão

Navegando proteções de propriedade intelectual para tecnologias de exploração e mineração

Portfólio de propriedade intelectual:

• Total de patentes registradas: 24
• Regiões de proteção de patentes: América do Norte, América do Sul, Austrália
• Despesas anuais de proteção de IP: US $ 1,6 milhão
• Categorias de patentes de tecnologia: Técnicas de exploração (12), Innovações de Processos de Mineração (8), Processamento Mineral (4)

Franco -Nevada Corporation (FNV) - Análise de Pestle: Fatores Ambientais

Investimentos de mineração sustentáveis ​​e de baixo impacto

A Franco-Nevada Corporation investiu US $ 47,2 milhões em projetos de mineração ambientalmente sustentável em 2023. O portfólio da empresa inclui 12 investimentos em mineração de baixo carbono na América do Norte e do Sul.

Categoria de investimento	Investimento total ($ m)	Potencial de redução de carbono
Sites de mineração de energia renovável	24.6	35% de redução de CO2
Projetos de gerenciamento de água	12.4	40% de conservação de água
Restauração ecológica	10.2	25 hectares reabilitados

Redução da pegada de carbono

Alvos de redução de emissões de carbono: redução de 22% até 2025, com emissões atuais em 0,63 toneladas de CO2 equivalente por onça equivalente a ouro.

Desafios de permissão ambiental

Custos de conformidade da licença ambiental: US $ 8,3 milhões em 2023, representando 4,2% do total de despesas operacionais.

Jurisdição regulatória	Permitir tempo de aprovação	Custo de conformidade ($ m)
Canadá	18-24 meses	3.6
Estados Unidos	12-36 meses	2.7
América latina	24-48 meses	2.0

Expectativas ambientais dos investidores

Alocação de investimento ambiental, social e de governança (ESG): 65% dos investidores institucionais exigem métricas detalhadas de desempenho ambiental.

• Orçamento de mitigação de risco ambiental: US $ 15,7 milhões
• Investimentos de conservação da biodiversidade: US $ 6,2 milhões
• Infraestrutura de energia renovável: US $ 9,5 milhões

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.