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Franco-Nevada's Unprecedented Financial Milestone in Q1 2026

Franco-Nevada Corporation has announced record-breaking financial results for the first quarter of 2026, showcasing a remarkable performance surge. This achievement, partly due to soaring commodity prices and contributions from recently acquired assets, sets a new standard for the company. The business model, primarily relying on royalties and streaming, has offered a unique buffer against cost inflation traditionally associated with the energy sector.

Record Financial Performance

In the first quarter of this year, Franco-Nevada reported an impressive revenue of $650.7 million, marking a 77% increase from the same quarter in the previous year. The sale of 136,353 Gold Equivalent Ounces (GEOs) represented an 8% rise, significantly boosted by the favorable global prices for gold and silver. The operational cash flow reached a record $520.4 million, an astonishing 80% increase year-over-year, which included a refund of $49.5 million received from the Canada Revenue Agency (CRA). Notably, the adjusted EBITDA soared to $591.9 million, reflecting a doubling in profitability.

Paul Brink, the President and CEO, expressed optimism regarding the future, emphasizing that the increasing oil prices are likely to enhance revenues in the upcoming quarters. He stated, "Franco-Nevada is uniquely positioned as a mining equity that thrives when oil prices rise." This adaptability, combined with a diversified and resilient portfolio, is expected to underpin the company’s growth trajectory.

Leadership Changes Highlight Commitment to Growth

At the recent Annual General Meeting (AGM), Franco-Nevada also announced leadership transitions within its board. David Harquail, who has been pivotal in the company's history, stepped down as Chair and transitioned to Chair Emeritus. His commitment to the company over nearly two decades has been instrumental in establishing Franco-Nevada as a leader in the royalty and streaming sector. He reflected on the strength of the business model, which champions lower-risk gold investment, especially amidst economic instability.

Tom Albanese has been appointed as the new independent non-executive Chair. Albanese brings a wealth of experience in the mining sector, previously holding CEO positions at renowned companies including Rio Tinto and Vedanta Resources. His appointment signals a continued dedication to operational excellence and shareholder value.

Growth Through Strategic Acquisitions

The first quarter also witnessed several strategic acquisitions that position Franco-Nevada for even further growth. Key transactions included:

• - Acquisition of Royalty Portfolio from Victoria Gold Corp.: This diverse portfolio includes royalties across several projects, enhancing the company’s footprint in North America.
• - Expansion in Ecuador: Franco-Nevada recently executed buy-backs regarding the Cascabel stream and net smelter return (NSR), resulting in a one-time gain. This came after a significant acquisition by Jiangxi Copper of SolGold.
• - Acquisition of a Gold Stream from Casa Berardi Mine: This $100 million stream acquisition aligns with Franco-Nevada's strategy to bolster its gold production capabilities.

These acquisitions are integral to Franco-Nevada's growth strategy and align with its long-term objectives to enhance production and revenue streams from diverse geographical locations.

Cobre Panamá: Significant Developments

Franco-Nevada remains committed to its Cobre Panamá interests, which are currently undergoing a phase of careful management. Production has been halted, but the company recently received governmental approval regarding the processing of stockpiled ore. According to estimates, approximately 30,000 to 40,000 tonnes of copper could be extracted in 2026, with expectations to commence deliveries of gold and silver later this year. These developments indicate a promising rebound for the operation.

Commitment to Sustainability and Community

Franco-Nevada is also focused on sustainability and community contributions. The company has partnered with the Young Mining Professionals Scholarship Fund to establish a dedicated scholarship initiative aimed at supporting mining industry students in Canada. The commitment reflects a broader strategy to engage positively with communities, particularly in regions where it operates.

In summary, Franco-Nevada's record financial results for Q1 2026 reflect an effective and adaptive strategy amidst rising commodity prices and operational successes. With a strong leadership team and a commitment to growth and sustainability, the company is poised for continued success in the mining and commodities sector.