Documente Academic
Documente Profesional
Documente Cultură
FNV
This Asset Handbook is supported by further information and explanatory notes in our Annual Information Form (AIF) available at www.sedar.com,
our Annual Report on Form 40-F available at www.sec.gov, and on our website at www.franco-nevada.com.
In this Asset Handbook, we discuss more than just our material and significant assets.
This Asset Handbook is not an offering memorandum and should not be relied upon as such. All of our disclosure in the Asset Handbook should be
read with reference to the explanatory notes and cautionary statements contained in the Additional Information section of this Asset Handbook.
CONTENTS
Our Business Model
2012 Highlights and Financial Results
Global Asset Map
Asset Portfolio and Revenue Tables
Revenue and Adjusted EBITDA
RESERVES AND
RESOURCES
Growth in Gold Ounces
Gold Mineral Reserves
Gold Mineral Resources
PGM Mineral Reserves and Resources
Other Mineral Reserves and Resources
ROYALTY EQUIVALENT
UNITS (REUs)
2013 ASSET
HANDBOOK
OVERVIEW
FRANCO-NEVADA
OVERVIEW
FRANCO-NEVADA
ASSETS
ADDITIONAL INFORMATION
ADDITIONAL
INFORMATION
ASSETS
OVERVIEW
FNV
Operators
- 0.4%
>1.5%
0-4%
>1
>1
0%
100%
100%
Capital Costs
0%
0%*
100%
Operating Costs
0%
0%*
100%
Environmental Costs
0%
0%*
100%
Dividend Yield +
Leverage to Gold Price
Exploration & Expansion
Reduced Exposure to:
Royalties
The majority of mineral properties have government or private royalties associated with them. Private
royalties are generally created by the original property owners, prospectors or exploration companies that
sell their property rights to a more senior company capable of developing and operating a mine on the
property. A royalty allows the seller to retain some exploration and price upside while the operating company
only pays if ore is actually mined.
The most common royalties are a simple percentage of the value of the future production from the property,
typically 1 to 5%. Often these are stated as a percentage of the net value the operating company receives for
its concentrated product when it is processed at a smelter, hence the term 2% net smelter return royalty
or 2% NSR royalty. There are other forms of royalties such as profit-related royalties or fixed-rate royalties
but these are not a big part of Franco-Nevadas focus or portfolio.
2
FNV
The majority of Franco-Nevadas royalties have been acquired from the past owners of mineral properties.
Starting in 1985, the original Franco-Nevada was the first public company to make a business of acquiring
royalties on gold properties. The original Franco-Nevada was acquired by Newmont Mining Corporation
in 2002 and its portfolio was managed by a division of Newmont. In December 2007, the current FrancoNevada acquired this portfolio in connection with our IPO and has since grown the portfolio to over 200
mineral royalties. Royalty rights are often registered on the title of the property or mineral rights and
generally rank ahead of any operating company debt. In addition, registered royalties have strong tenure
and will generally survive an operating company reorganization.
OVERVIEW
Streams
Streams are metal purchase agreements that provide, in exchange for an upfront payment, the right to
purchase all or a portion of the gold or silver from a mine at a preset price. While streams have similar
exploration and price optionality to royalties, they are not considered to be royalties because of the ongoing
cash payment required to purchase the physical metal. Streams are well suited to co-product production
providing an incentive to the operator to produce the gold or silver. They are also ideal for larger mine
financing investments as they can be structured tax efficiently.
1. Our first money invested is our last. We are effectively free of the need to directly fund mining capital
expenditures and other costs making this business a truly free cash flow business.
2. Typically, we participate at the revenue line of operations and are not directly impacted by operating
cost inflation. This allows our margins to fully benefit from rising commodity prices.
3. Our business is high margin with low overheads enabling us to generate cash through the entire
commodity cycle.
4. We have a perpetual discovery option on over 200 properties and 40,000 square kilometres of land
without the cost of managing exploration or development directly.
5. Our business is scalable allowing the acquisition of more interests than an operating company can
effectively manage. A more diversified portfolio reduces overall risk.
6. Management has the benefit to be able to focus on growth as we do not have responsibility for day-to-day
operational or development decisions.
Since its IPO in December 2007, Franco-Nevadas business model has established a five year track record of
outperforming both gold and gold operating companies. The Company has been able to increase dividends
in each of the past five years and is one of the few gold companies to pay a dividend on a monthly basis.
Additional Information
On page 20 of this Asset Handbook is Royalties and Streams Explained. Ths section provides further detail
on the various forms of our interests including an example of the economics of a NSR versus a stream
versus a profit or working interest.
3
FNV
Franco-Nevada Corporation
OVERVIEW
2012 HIGHLIGHTS
FNV: TSX/NYSE
FNV
Share
Price
$60
+ 274%*
$55
$50
$45
$40
Gold Price
$35
$30
$25
FNV
$20
$15
2008
2009
2010
2011
2012
2008 (4)
$
2009 (4)
$
2011 (4)
$
2012 (4)
$
$ 151.0
$ 31.6
$ 40.3
$ 0.41
$ 199.7
$ 87.1
$ 80.9
$ 0.76
$ 227.2
$ 85.8
$ 62.7
$ 0.55
$ 411.2
$ 28.0
$
(6.8 )
$ (0.05 )
$ 427.0
$ 138.4
$ 102.6
$ 0.72
$ 47.3
$ 0.48
$ 127.2
$ 1.30
$ 32.0
$ 0.30
$ 119.4
$ 1.12
$ 52.1
$ 0.46
$ 180.0
$ 1.58
$ 136.0
$ 1.08
$ 327.3
$ 2.61
$ 171.0
$ 1.19
$ 347.8
$ 2.43
$
$
$
$
$
$
$
C$
21.8
0.24
$
C$
28.2
0.28
33.3
0.29
49.2
0.32
$ 239.1
$
Nil
$ 530.7
$
Nil
$ 572.7
$
Nil
$ 851.1
$
Nil
$ 822.4
$
Nil
$
$
$ 1.9B
$ 3.2B
$ 2.0B
$ 3.8B
$ 2.8B
$ 5.3B
$
$
Adjusted EBITDA is defined by the Company as net income (loss) excluding income tax expense, finance income and costs, foreign exchange gains/losses, gains/losses on the sale of investments,
income/losses from equity investees, depletion and depreciation, fair value changes for interests accounted for as derivative assets and impairment charges related to royalties, streams, working
interests and investments. Adjusted EBITDA per share is Adjusted EBITDA divided by weighted average shares outstanding for the period. For a reconciliation of these measures to various IFRS
and Canadian GAAP measures, please refer to the MD&A for the respective years available on our website and on SEDAR.
(3)
(4)
Fiscal years 2010 through 2012 were prepared in accordance with IFRS. Fiscal years 2008 and 2009 were prepared in accordance with Canadian GAAP.
(5)
Working Capital is a Non-IFRS financial measure. The Company defines working capital as current assets less current liabilities.
(6)
As at December 31.
35
35
35
$600
$600
$600
$1.80
$1.80
$1.80
$9.0
$0.60
$0.60
$0.60
50
$600
$9.0
$550
$550
$550
$1.65
$1.65
$1.65
$0.55
$0.55
$0.55
$8.0
45
$550
$8.0
$500
$500
$500
$1.50
$1.50
$1.50
$0.50
$0.50
$0.50
$450
$450
$450
$1.35
$1.35
$1.35
$7.0
$0.45
$0.45
$0.45
$1.20
$1.20
$1.20
$0.40
$0.40
$0.40
$6.0
$350
$350
$350
$1.05
$1.05
$1.05
$0.35
$0.35
$0.35
$5.0
30
25
25
25
$300
$300
$300
$0.90
$0.90
$0.90
$0.30
$0.30
$0.30
25
$250
$250
$250
$0.75
$0.75
$0.75
$4.0
$0.25
$0.25
$0.25
$200
$200
$200
$0.60
$0.60
$0.60
$0.20
$0.20
$0.20
$3.0
$150
$150
$150
$0.45
$0.45
$0.45
$100
$100
$100
$0.30
$0.30
$0.30
$0.15
$0.15
$0.15
$2.0
$0.10
$0.10
$0.10
$50
$50
$50
$0.15
$0.15
$0.15
$1.0
$0.05
$0.05
$0.05
$400
$6.0
$350
$5.0
$300
$4.0
$250
20
$200
$3.0
15
10
$2.0
$100
$1.0
$50
2012
2011
2010
2009
$150
2008
2012
2012
2012
2012
2011
2011
2011
2011
2010
2010
2010
2010
2009
2009
2009
2009
2008
2008
2008
2008
2012
2012
2012
2011
2011
2011
2010
2010
2010
2009
2009
2009
2012
2012
2012
2011
2011
2011
2010
2010
2010
2009
2009
2009
2008
2008
2008
555
2008
2008
2008
10
10
10
$7.0
$450
35
$400
$400
$400
15
15
15
$500
40
30
30
30
20
20
20
EPS
Producing
Mineral Royalties
Franco-Nevada Corporation
5
FNV
2011
2011
40
40
40
RevenueCap
Market
(in $ billions)
2012
2012
45
45
45
Market
Capitalization(6)
2011
2011
50
50
50
Producing
Mineral
Assets
2010
2010
Dividends
Per Share
Market
Cap PS
Dividends
PS
Dividends
PS
Dividends
EPS
EPS
EPS
2009
2009
Adjusted
Net Income(1)
Per Share
(in $ millions)
2008
2008
Revenue
Revenue
Revenue
Revenue
2010
2010
2009
2009
(2)
3.1B
8.3B
Adjusted Net Income is defined by the Company as net income (loss) excluding foreign exchange gains/losses, gains/losses on the sale of investments, impairment charges related to royalties,
streams, working interests and investments, unusual non-recurring items, fair value changes for interests accounted for as derivative assets, and the impact of taxes on all these items.
Adjusted Net Income per share is Adjusted Net Income divided by weighted average shares outstanding for the period. For a reconciliation of these measures to various IFRS and Canadian GAAP
measures, please refer to the MD&A for the respective years available on our website and on SEDAR.
2008
2008
1.4B
1.7B
77.9
0.54
Working Capital(5)
Long-term debt
(1)
2012
2012
2012
2010 (4)
$
Revenue
Operating Income
Net Income
Basic Earnings per share
Dividends Paid
Dividends Paid per share
s
es
OVERVIEW
OVERVIEW
GLOBAL ASSETS
Arctic Gas
Courageous Lake
Goldfields
Edson
New Prosperity
Phoenix
Detour Lake
Timmins West
Hemlo
Weyburn
Midale
Stillwater
Golden Highway
Mouska
Musselwhite
Canadian Malartic
Kirkland Lake
NEVADA
(inset)
Sudbury
NORTH AMERICA
PRODUCING
Mesquite
Rosemont
ADVANCED
OIL & GAS
Palmarejo
Cobre Panama
Hollister
Pinson
Dee (Storm/Arturo)
Sandman
Goldstrike
EaglePicher
Gurupi
Gold Quarry
Marigold
SOUTH AMERICA
Bald Mountain
Robinson
NEVADA
Sterling
Taca Taca
Relincho
6
FNV
San Jorge
Calcatreu
OVERVIEW
ASIA
Perama Hill
Agi
Dagi
Kiziltepe
Tasiast
AFRICA
Subika
Ity
Edikan
Kasese
Mt Muro
North Lanut
King Vol
Pandora
Cooke 4
MWS
Duketon
Bronzewing
Wiluna
Glenburgh
AUSTRALIA
Moyagee
Mt Keith
Butcher Well
Edna May
Flying Fox
Admiral Hill
Red October
Peculiar Knob
White Dam
South Kalgoorlie
Commodore
Bullabulling
Aphrodite
Henty
7
FNV
Franco-Nevada Corporation
OVERVIEW
ASSET PORTFOLIO
Revenue - By Geography
Revenue - By Commodity
Revenue - By Type
Gold-75%
Gold-75%
Gold-75%
Revenue-based-42%
Revenue-based-42%
Revenue-based-42%
Canada-30% Canada-30%
Canada-30%
PGM-14%
PGM-14%
PGM-14%
Streams-45%Streams-45%
Streams-45%
Mexico-24% Mexico-24%
Mexico-24%
Profit-based-10%
Profit-based-10%
Profit-based-10%
Australia-4%Australia-4%
Australia-4%
Other Minerals-1%
Other Minerals-1%
Other Minerals-1%
Working interests/other-3%
Working
interests/other-3%
Working
interests/other-3%
US-28%
US-28%
US-28%
Rest of World-14%
Rest ofRest
World-14%
of World-14%
Gold
PGM
Other
Minerals
Total
Minerals
Producing
Advanced
Exploration
36
23
115
3
0
2
7
5
20
46
28
137
137
# (1)
183
28
137
Total
174
32
211
137
348
Total
(1) 160 undeveloped Oil & Gas agreements not included in asset counts.
Abbreviated Definitions
NSR Net Smelter Return Royalty
GR Gross Royalty
ORR Overriding Royalty
FH Freehold or Lessor Royalty
NPI Net Profits Interest
NRI Net Royalty Interest
WI Working Interest
8
FNV
Notes
1
2
3
4
5
Does not cover all the reserves or resources reported for the property by the operator.
Percentage varies depending on the claim block of the property.
Provides for minimum or advance payments.
Payments pending achievement of a minimum production hurdle or time threshold.
Percentage varies depending on the commodity price or value of ore.
6
7
8
9
Operator
Interest and %
2012
Revenue ($ millions)
2011
2010
OVERVIEW
Asset
Notes
GOLD
United States
Goldstrike
Gold Quarry
Marigold
Bald Mountain
Mesquite
Hollister
Other (6 assets)
Barrick Gold Corporation
Newmont Mining Corporation
Goldcorp/Barrick
Barrick Gold Corporation
New Gold Inc.
Great Basin Gold Limited
55.7
18.6
10.9
8.8
3.9
3.2
0.6
45.0
17.9
10.3
3.9
4.8
5.0
0.5
49.2
20.4
9.1
1.6
4.2
1.1
1.8
1, 2, P
1, 3, P
1, 2, 3, 5, P
1, 2, 3, 5, P
2, P
1, 2, P
8, Px2, Ax4
Canada
Detour
Sudbury (3 mines)
Golden Highway (3 mines)
Musselwhite
Hemlo
Timmins West
Other (7 assets)
Detour Gold Corporation
KGHM International Ltd.
St Andrew Goldfields Ltd.
Goldcorp Inc.
Barrick Gold Corporation
Lake Shore Gold Corp.
NSR 2%
Stream 50%
NSR 2-15%
NPI 5%
NSR 3%, NPI 50%
NSR 2.25%
15.4
14.3
6.3
7.5
2.0
0.5
14.3
10.8
5.1
1.4
1.0
6.3
0.1
0.8
P
1, 7, P
3, 5, Px3
6, P
1, 6, P
P
Px3, Ax4
Australia
Duketon
Henty
South Kalgoorlie (2 mines)
Bronzewing
Other (10 assets)
NSR 2%
GR 1%/10%
NSR/GR 1-1.75%
NSR 2%
5.3
2.7
1.3
2.3
3.1
4.5
0.9
0.9
0.1
0.6
2.4
1.0
0.6
0.3
1, P
2, P
1, 2, Px2
P
Px2, Ax8
Rest of World
Cobre Panama
Palmarejo
MWS
Tasiast
Subika
Cerro San Pedro
Edikan
Cooke 4
Other (9 assets)
First Quantum Minerals Ltd.
Coeur Mining
AngloGold Ashanti Limited
Kinross Gold Corporation
Newmont Mining Corporation
New Gold Inc.
Perseus Mining Limited
Gold One International Limited
Streams (indexed)
Stream 50%
Stream 25%
NSR 2%
NSR 2%
GR 1.95%
NSR 1.5%
Stream 7%
96.0
33.0
6.4
3.2
5.5
5.1
3.3
8.8
101.9
32.3
2.8
5.9
1.5
27.3
2.8
66.1
3.8
0.9
A
3, 7, P
7, P
P
1, P
1, P
P
7, P
Px3, Ax6
$ 320.6
$ 306.8
$ 172.6
NSR 5%
Stream 50%
NPI 5%
17.3
43.1
0.3
23.1
40.4
0.4
13.1
1.0
60.7
63.9
14.1
2.2
2.6
3.8
1.8
3.1
1.6
4.8
5.6
4.7
25.0
4.0
3.9
8.0
12.3
4.1
7.7
10.8
10.4
3.6
12.1
9.7
40.9
34.9
35.8
1, P
1, 7, P
1, 3, P
E
OTHER MINERALS
Mt Keith (Ni)
Rosemont (Cu, Mo, Ag)
Relincho (Cu, Mo)
Taca Taca (Cu, Au, Mo)
Other (8 assets)
20 Exploration Assets
A
4, A
A
Px6, Ax2
E
REVENUE
$ 427.0
$ 411.2
9, P
P
P
P
E
E
$ 227.2
Franco-Nevada Corporation
9
FNV
OVERVIEW
REVENUE
(1)
2012
$ millions
Commodity
Gold
PGM
Other Minerals
Oil & Gas
320.6
60.7
4.8
40.9
75%
14%
1%
10%
306.8
63.9
5.6
34.9
75%
16%
1%
8%
172.6
14.1
4.7
35.8
76%
6%
2%
16%
United States
Canada
Australia
Mexico
Rest of World
$
$
427.0
120.0
130.2
15.1
101.6
60.1
100%
28%
30%
4%
24%
14%
$
$
411.2
111.6
107.7
13.9
107.8
70.2
100%
28%
26%
3%
26%
17%
$
$
227.2
100%
101.5
43.0
8.2
69.9
4.6
45%
19%
3%
31%
2%
Revenue-based royalties
Stream-based
Profit-based royalties
Working interests/other
$
$
427.0
179.0
190.9
41.8
15.3
100%
42%
45%
10%
3%
$
$
411.2
152.3
216.1
30.8
12.0
100%
37%
53%
7%
3%
$
$
227.2
100%
111.5
66.1
37.3
12.3
50%
29%
16%
5%
427.0
100%
411.2
100%
227.2
100%
2011
$ millions
2010
$ millions
Geography
Type
2011
$ millions
2010
$ millions
ADJUSTED EBITDA
(1) (2)
2012
$ millions
Commodity
Gold
PGM
Other Minerals
Oil
& Gas
265.3
46.6
4.5
31.4
76%
14%
1%
9%
243.0
50.1
5.3
28.9
74%
15%
2%
9%
133.5
12.4
4.3
29.8
74%
7%
2%
17%
United States
Canada
Australia
Mexico
Rest of World
$
$
347.8
108.1
102.6
14.3
74.1
48.7
100%
31%
30%
4%
21%
14%
$
$
327.3
100.4
85.3
13.2
76.4
52.0
100%
31%
26%
4%
23%
16%
$
$
180.0
100%
88.8
36.5
7.6
42.9
4.2
50%
20%
4%
24%
2%
Revenue-based royalties
Stream-based
Profit-based royalties
Working interests/other
$
$
347.8
160.9
137.2
37.8
11.9
100%
46%
39%
11%
4%
$
$
327.3
137.5
151.9
27.9
10.0
100%
42%
46%
9%
3%
$
$
180.0
100%
98.0
39.4
33.6
9.0
54%
22%
19%
5%
347.8
100%
327.3
100%
180.0
100%
Geography
Type
10
FNV
(1) Dividends have been included in Gold, United States and Working interests and other categories.
(2) As defined in the Glossary of this Asset Handbook. Adjusted EBITDA is a non-IFRS financial measure, which excludes the following from net income: income tax expense;
finance costs; finance income; foreign exchange gains and losses; gains and losses on the sale of investments; income and losses from equity investees; impairment charges
related to royalty, stream and working interests and investments; and depletion and depreciation. Management believes that Adjusted EBITDA is a valuable indicator of
the Companys ability to generate liquidity by producing operating cash flow to (i) fund working capital needs; (ii) service working interest capital requirements; (iii) fund
acquisitions; and (iv) fund dividend payments. Management uses Adjusted EBITDA for this purpose. Adjusted EBITDA is used by investors and analysts for valuation purposes
whereby Adjusted EBITDA is multiplied by a factor of an EBITDA multiple that is based on observed or an inferred relationship between Adjusted EBITDA and market
valuations to determine the approximate total enterprise value of a company. The Company uses this measure for its own internal purposes. Managements internal budgets
and forecasts do not reflect potential impairment charges, fair value changes or foreign currency translation gains or losses. Consequently, the presentation of this non-IFRS
financial measure enables investors and analysts to better understand the underlying operating performance of our business through the eyes of management. Management
periodically evaluates the components of this non-IFRS financial measure based on an internal assessment of performance metrics that it believes are useful for evaluating
the operating performance of our business and a review of the non-IFRS measures used by analysts and other royalty/stream companies. Adjusted EBITDA is intended to
provide additional information to investors and analysts, does not have any standardized meaning under IFRS and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. Adjusted EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects
of changes in operating working capital balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.
Other companies may calculate Adjusted EBITDA differently. For a reconciliation of these measures, please refer to the MD&A for the respective years available on
our website and on SEDAR.
11
FNV
RESERVES AND
RESOURCES
12
FNV
200
150
100
50
0
2007
2008
2009
2010
2011
2012
250
P&P
M&I + Inf
100%
80%
60%
40%
20%
0%
-20%
2007
2008
2009
2010
2011
2012
13
FNV
Franco-Nevada Corporation
Proven
Tonnes
000s
Grade Contained
g/t
000 oz
Tonnes
000s
1,3,4
1,5
1,6,7
1,3,8
9,10
11,12
1,3,13,14
1
1,15,16
17,18
59,648
3.53
6,766
not available
0.68
765
0.67
1,621
0.68
287
33.46
98
12.56
370
0.18
620
39,392
Detour Lake
19,20
Detour Block A
Sudbury Au
1,21,22,23
Hislop
24
Holloway
25
Holt
26
Taylor
27
Musselwhite
28
Hemlo
1,3,29
Timmins West
30,31
Canadian Malartic
1,32
Phoenix
Kirkland Lake
1
Mouska (Doyon Division)
1,33
New Prosperity
34,35,36
Goldfields (Box/Athona)
37,38
Courageous Lake
39,40
Duketon
Henty
South Kalgoorlie
Bronzewing
Red October
Admiral Hill
Bullabulling
Glenburgh
White Dam
Wiluna
14
FNV
Notes
Gold - Canada
Gold - Australia
Cobre Panama
Palmarejo
MWS
Tasiast
Subika
Cerro San Pedro
Edikan
Cooke 4
North Lanut
Ity
Agi Dagi
Perama Hill
San Jorge
Taca Taca
Gurupi
Kiziltepe
Mt Muro
Probable
35,053
74,915
13,140
100
917
105,490
101,635
1.29
18
2.11
110
4.07
1,174
4.66
5,260
6.79
3,284
3.12
48,800
0.89
155
12.40
481,000
0.46
1,228
1.90
12,000
2.41
259,577
193,210
114,409
375
51,059
668
4,530
Grade Contained
g/t
000 oz
4.40
not available
0.50
0.57
0.56
29.48
1.44
12.79
0.15
5,572
4,155
3,540
2,055
357
2,368
275
20
Tonnes
000s
Grade Contained
g/t
000 oz
99,040
3.87
12,338
not available
294,630
0.52
4,920
268,125
0.60
5,161
127,549
0.57
2,342
465
30.26
455
51,059
1.44
2,368
1,584
12.65
645
110,020
0.18
640
4,222
1
14
176
1,150
329
1,400
62
7,114
75
1,000
368,407
1,670
432
187
1,820
985
5,970
11,616
4,922
261,600
21
350,000
21,105
79,000
0.96
0.74
2.17
4.38
5.38
5.45
5.94
2.20
5.21
1.04
13.40
0.35
1.39
2.17
11,351
40
30
26
315
173
1,140
821
824
8,720
9
3,938
945
5,500
470,042
1,670
449
298
2,993
985
11,230
14,900
4,922
310,600
176
831,000
22,333
91,000
1.03
0.74
2.16
4.26
5.10
5.45
6.34
2.40
5.21
1.01
12.50
0.41
1.42
2.20
15,573
40
31
41
490
173
2,290
1,150
824
10,120
71
11,052
1,020
6,500
1,41,42
43
1,44
45,46
47,48
1
49
8,300
635
1,100
1.50
4.60
1.00
400
94
30
52,700
143
11,500
6,924
406
1,607
1.54
8.50
1.40
1.49
5.98
4.70
2,603
39
510
331
78
242
61,000
778
12,600
6,924
406
1,607
1.53
5.30
1.30
1.49
5.98
4.68
3,003
133
540
331
78
242
50
51,52
53
54
1,3,55,56
1,57
58,59
60
61,62
63,64
65,66
67,68
69,70
258,000
5,213
187,951
103,087
19,051
21,100
64,600
1,079
2,477
924
36
0.14
2.08
0.25
1.46
1.03
0.52
1.20
1.29
4.44
3.32
1.20
1,118
348
1,493
4,836
630
353
2,417
45
354
99
1
2,800,000
9,446
143,591
46,564
181,980
26,400
29,200
220
1,167
7,220
63,757
225
7,550
0.07
1.04
0.26
2.09
1.96
0.48
1.00
1.15
4.85
2.68
1.14
2.33
2.10
6,170
317
1,195
3,129
11,450
407
961
8
182
621
2,328
17
510
3,058,000
11,659
331,542
149,651
201,031
47,500
93,800
1,299
1,167
9,697
63,757
1,149
7,586
0.07
1.77
0.25
1.66
1.87
0.50
1.10
1.27
4.85
3.13
1.14
3.13
2.10
7,288
665
2,688
7,965
12,080
760
3,378
53
182
975
2,328
115
511
31,173
79,333
110,506
Measured (M)
Tonnes
000s
Grade Contained
g/t
000 oz
1,2,3
1,87
1,2,88,89
1,2,3
90,91
92,93
1,2,3,94
1,2,95,96
1,2,97,98
99,100
61,193
7,259
Notes
Goldstrike
Gold Quarry
Marigold
Bald Mountain
Mesquite
Hollister
Dee (South Arturo)
Sandman
Pinson
Robinson
Tonnes
000s
Grade Contained
g/t
000 oz
Contained
000 oz
Tonnage
000s
46,705
7,061
14,320
4,931
4,755
4,639
5,232
536
3,587
30
748
620
5,550
6,633
5,684
706
3,587
30
2,055
3,080
Grade Contained
g/t
000 oz
3.69
not available
36,628
0.68
103,209
0.60
24,000
0.59
146
36.11
20,664
1.97
510,270
0.15
795
1,994
452
170
1,307
2,460
4.70
not available
303,585
0.49
278,486
0.52
370,100
0.44
667
24.98
75,821
1.47
544
1.71
5,088
4.57
139,380
0.14
124,500
420
403
319
3,121
5,370
3,630
45,800
470
547,100
858
13,401
1.36
0.74
1.54
3.71
4.13
6.78
3.40
0.95
6.90
0.46
2.04
2.53
5,424
10
20
38
414
1,170
397
1,440
104
8,091
56
1,090
554,300
90,510
2,230
878
1,365
4,332
27,059
6,320
61,981
6,516
301,500
1,030
4,540
730
463,400
20,002
93,914
1.00
0.84
0.98
1.63
4.31
4.65
2.01
5.95
1.30
5.92
1.06
14.40
3.55
4.00
0.34
1.51
2.28
17,836
2,448
70
46
189
648
1,749
1,210
2,581
1,240
10,250
477
518
94
5,066
971
6,884
23,261
2,448
80
66
228
1,061
1,749
2,370
2,978
1,240
11,690
477
518
198
13,157
1,027
7,974
208,500
73,693
750
5
3,067
1,713
3,226
4,990
2,836
9,545
49,600
4,230
7,983
1,735
4,564
48,963
0.86
0.83
0.83
4.68
4.72
3.66
5.73
4.09
5.93
0.75
17.04
4.20
6.30
1.54
2.18
5,785
1,967
20
461
260
380
920
373
1,819
1,200
2,317
1,077
353
226
3,432
1,129,130
131
1,132
133,134
135,136
137
1,138139
140,141
142,143
144,145
12,900
1,830
2,500
154
1.24
4.70
1.80
10.70
515
276
150
53
101,000
174
38,900
12,380
3,857
907
72,100
10,100
1,915
8,155
1.20
9.30
2.13
1.69
1.92
1.40
0.92
1.30
1.10
5.60
3,898
52
2,670
674
238
42
2,132
420
68
1,465
4,413
328
2,820
674
291
42
2,132
420
68
1,465
111,000
57
33,500
5,120
3,720
1,338
30,700
17,000
3,255
8,554
0.91
5.50
1.90
1.86
1.69
1.10
1.09
1.10
0.89
5.00
3,239
10
2,046
307
202
48
1,072
620
93
1,384
146
147,148
149
2,150
1,2,3,151,152
1,153
154,155
156,157
158
159,160
1,161,162,163
164,165
166,167
168,169,170
171,172
173,174
175,176,177
262,000
8,103
190,395
180,358
19,051
42,300
83,700
2,863
5,874
2,500
20,376
3,064
79,518
35,650
783
36
0.13
2.54
0.24
1.14
1.03
0.39
1.15
7.46
1.06
4.46
0.53
4.30
0.22
0.86
4.10
1.20
1,118
663
1,472
6,634
630
532
3,096
687
200
359
344
424
584
990
103
1
3,941,000
28,067
146,820
195,387
264,715
109,400
72,700
10,372
1,657
3,312
58,990
9,375
104,091
2,408,000
75,020
972
11,670
0.06
1.07
0.25
1.29
1.74
0.33
0.99
5.90
1.05
2.69
0.61
3.18
0.19
0.10
0.94
2.08
2.00
7,888
966
1,163
8,088
14,824
1,171
2,309
1,968
56
286
1,166
958
626
7,630
2,260
65
750
9,006
1,629
2,628
14,722
15,454
1,703
5,405
2,655
256
645
1,510
1,382
1,211
7,630
3,250
168
752
3,686,000
10,798
15,172
31,235
53,342
103,900
50,600
158,681
1,695
8,832
45,418
8,766
11,235
938,000
7,719
357
8,050
0.04
1.32
0.30
0.79
2.07
0.25
1.05
5.00
2.08
1.60
0.68
1.96
0.16
0.06
0.67
1.64
1.60
4,396
457
145
790
3,543
850
1,713
25,511
113
455
995
554
59
1,700
165
19
414
43,432
138,251
181,683
77,367
Gold - Canada
Detour Lake
101,102
Detour Block A
103,104
Sudbury Au
1,105,106
Hislop
2,107
Holloway
2,108
Holt
2,109
Taylor, Aquarius, Clavos 2,110,111,112
Musselwhite
2,113
Hemlo
1,2,3
Timmins West
114,115
Canadian Malartic
1,2,116
Phoenix
117,118
Kirkland Lake
1,119,120,121
Mouska (Doyon Division)
1,122
New Prosperity
123,124
Goldfields (Box/Athona) 125,126
Courageous Lake
127,128
Gold - Australia
Duketon
Henty
South Kalgoorlie
Bronzewing
Red October
Admiral Hill
Bullabulling
Glenburgh
White Dam
Wiluna
Inferred
(M)+(I)
5.26
834
not available
81,251
0.42
1,110
80,616
0.29
762
50,900
0.40
651
543
12.63
221
42,521
0.51
703
1,905
1.65
101
2,776
9.79
874
139,610
0.14
620
Franco-Nevada Corporation
Indicated (I)
15
FNV
Proven
Stillwater
Sudbury PGM
Pandora
1,71,72
1,73,74,75
1,76,77
4,545
1,406
17.9
4.3
2,618
194
33,991
1,670
16,729
15.9
5.4
4.0
17,362
290
2,151
38,536
1,670
18,135
16.1
5.4
4.0
19,979
290
2,344
2,812
19,803
22,613
Grade Contained
g/t
000 oz
Tonnes
000s
Tonnes
000s
Probable
Notes
PGM
Grade Contained
g/t
000 oz
Tonnes
000s
Grade Contained
g/t
000 oz
Measured (M)
PGM
Stillwater
Sudbury PGM
Pandora
Tonnes
000s
1
1,178,179
1,180,181
4,545
420
26,686
17.9
3.4
4.8
2,618
50
4,127
33,991
2,230
140,316
15.9
6.0
4.6
6,795
Grade Contained
g/t
000 oz
Indicated (I)
Notes
Tonnes
000s
Proven
(M)+(I)
Grade Contained
g/t
000 oz
Tonnage
000s
17,362
430
20,797
19,979
480
24,924
750
22,956
38,589
45,383
Probable
2.5
4.7
60
3,491
3,551
Notes
Tonnes
000s
Rosemont
Relincho
Taca Taca
Robinson
Vizcachitas
78,79
80,81
82,83
279,479
149,300
105,490
0.46%
0.49%
0.51%
2,834
1,613
1,181
325,796
955,200
4,530
0.42%
0.39%
0.40%
3,017
8,213
40
605,276
1,104,500
110,020
0.44%
0.40%
0.50%
5,851
9,826
1,222
5,629
11,270
16,898
Tonnes
000s
Grade Contained
g/t
000 oz
Copper
Grade Contained
%
Mlbs
Contained
000 oz
Grade Contained
%
Mlbs
Tonnes
000s
Grade Contained
%
Mlbs
Measured (M)
Tonnes
000s
182,183
184,185
186,187
188,189
190,191
342,914
178,100
510,270
0.42%
0.47%
0.35%
3,202
1,829
3,882
548,481
1,572,500
2,165,000
139,980
570,000
0.37%
0.36%
0.44%
0.27%
0.39%
8,913
Rosemont
Relincho
Taca Taca
Robinson
Vizcachitas
FNV
Grade Contained
%
Mlbs
Tonnes
000s
Notes
Tonnes
000s
Mt Keith
Falcondo
84
85,86
(M)+(I)
Grade Contained
%
Mlbs
Proven
Nickel
16
Indicated (I)
Notes
Copper
Contained
Mlbs
Tonnage
000s
Grade Contained
%
Mlbs
4,438
12,568
21,150
846
4,887
7,640
14,396
21,150
4,728
4,887
126,733
746,900
921,000
139,610
605,000
0.40%
0.30%
0.37%
0.29%
0.34%
1,110
4,940
7,550
882
4,490
43,889
52,802
18,972
Probable
Grade Contained
%
Mlbs
Tonnes
000s
Grade Contained
%
Mlbs
108,000
44,000
0.57%
1.28%
1,346
1,242
19,000
29,700
0.50%
1.36%
209
890
127,000
73,700
0.56%
1.31%
1,555
2,132
2,588
1,100
3,687
Tonnes
000s
Grade Contained
%
Mlbs
Measured (M)
Nickel
Mt Keith
Falcondo
Indicated (I)
Notes
Tonnes
000s
192
193,194
203,000
40,200
0.55%
1.45%
2,443
1,285
100,000
34,500
0.48%
1.56%
3,728
Grade Contained
%
Mlbs
Tonnes
000s
(M)+(I)
Grade Contained
%
Mlbs
Contained
Mlbs
Tonnage
000s
1,058
1,187
3,501
2,472
32,000
4,900
2,245
5,973
Grade Contained
%
Mlbs
0.48%
1.40%
339
151
490
Notes
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Royalty does not cover entire property or cover all known Reserves and Resources
Mineral Resources shown by operator as exclusive of Mineral Reserves.
The companys QP determined the Inclusive Mineral Resources by adding the
exclusive Measured and Indicated Mineral Resources to the Proven and
Probable Reserves
Mineral Reserves and Resources are reported by the operator in non-metric
units. The Companys QP calculated the metric conversion using 1opt=34.286 g/
tonne, 1 short ton = 0.9018 metric tonnes, 1 oz = 31.1035 g
Mineral Reserves are calculated using a long term average gold price of $1,500/oz
In accordance with certain provisions of the royalty agreement, Franco is not
able to disclose Mineral Reserves and Mineral Resources for Gold Quarry
Mineral Reserves are calculated using a long term average gold price of $1,350/oz
Mineral Reserves and Resources converted to 100% basis from Goldcorps
66.67% interest
Mineral Reserves are calculated using a long term average gold price of $1,500/oz
Mineral Reserves calculated using $1,300 gold
Mineral Reserves reported at a cut-off 0.21 g/t oxide; 0.41 g/t non-oxide
Mineral Reserves as of June 30, 2012
Mineral Reserves assumes $1,400/oz Au and $30/oz Ag and are fully diluted
and grades adjusted for metallurgical recoveries of Au (92%) and Ag (75%)
Mineral Reserves are calculated using a long term average gold price of $1,500/oz
Mineral Reserves converted to 100% basis from Barricks 60% attributable share
Underground Mineral Reserves as of May 18, 2012
Underground Mineral Reserves based on a 0.20 OPT cut-off and $1,300/oz gold price
Mineral Reserves and Resources as of December 31, 2010
Mineral Reserves reported above a cut-off of 2.93 recoverable lb Cu per ton and
a long term gold price of $1,000/oz and a long term copper price of $2.50/lb
Mineral Reserves and Resources as of December 31, 2011
Mineral Reserves calculated using long-term gold price of $850/oz and a cut-off
grade of 0.50 g/t
Mineral Reserves and Resources as of December 31, 2010
Mineral Resources and Reserves estimated using $2.50/lb Cu, $7.00/lb Ni,
$1,500/oz Pt, $400/oz Pd and $1,000/oz Au
Mineral Reserves cut-off is based on direct cost, indirect cost, sustaining
capital and impact of Gold Wheaton agreement
Mineral Reserves estimated using an average long-term gold price of $1,600/oz
and a cut-off grade of 1.1 g/t
Mineral Reserves estimated using an average long-term gold price of $1,400/oz
and a cut-off grade of 3.0 g/t
Mineral Reserves estimated using an average long-term gold price of $1,400/oz
and a cut-off grade of 3.0 g/t
Mineral Reserves estimated using an average long-term gold price of US$1,300/
oz, cut-off grade of 3.5 g/t
Mineral Reserves are calculated using a long term average gold price of $1,350/oz
Mineral Reserves are calculated using a long term average gold price of $1,500/oz
Mineral Reserves as of April 2, 2012
Mineral Reserves reported at a cut-off grade of 3.0 g/t
Mineral Reserves and Resources estimate using base case $1,475/oz engineered
pit shell and cut-off grade of 0.31 to 0.34 g/t Au
Mineral Reserves estimated using $1,400/oz gold price
Mineral Reserves and Mineral Resources are reported as of November 2, 2009
Mineral Reserves are based on copper and gold prices of $1.65/lb and $650/oz
respectively, and $5.50 NSR/t pit rim cut-off
Permits pending -nFranco has the option to provide a $350 million deposit and
certain warrant consideration for the construction of the project when it is
fully permitted and financed
Mineral Reserves assumes a gold price of C$1,250/oz and a cut-off grade of
0.72 g/t with a marginal cut-off grade of 0.33 g/t
Mineral Reserves and Resources as of December 31, 2011
Mineral Reserves as of July 24, 2012
Waste to ore cut-offs determined using $1,244/oz Au and pit limit based on
a C$20.10 per tonne cut-off
Mineral Reserves estimated as of June 30, 2012 except for Rosemont; Mineral
Reserves for Rosemont estimated as of January 18, 2013
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
Mineral Reserves assumes a cut-off of 0.6 g/t for Garden Well, 0.4 - 0.5 g/t for
Moolart Well, 0.7 g/t for Erlistoun, and 0.5 g/t for Rosemont
Mineral Reserves have a cut-off of 3.8 g/t gold and estimated at A$1,450/oz gold
Mineral Reserves assumes A$1,350/oz Au price and a 0.44 g/t cut-off
Mineral Reserves reported as of June 30, 2012
Cockburn Mineral Reserves 2012: A$1,350/oz & 0.5 g/t Au cut-off; Corboys
Mineral Reserves 2010: A$1,300/oz & 0.91 g/t Au cut-off; Challenger Mineral
Reserves 2012: A$1,250/oz & 0.84 g/t Au cut-off
Mineral Reserves as of June 30, 2012
Mineral Reserves assumes a cut-off of: Red October 3.0 g/t; Butcher Well 0.7 g/t
Mineral Reserves estimate as of November 1, 2012
Mineral Reserves estimated using a $2.25/lb copper price, $1,000/oz gold price and
$16/oz silver price. Please see Gold Assets, Gold-Rest of World, Cobre Panama,
Panama for further details regarding Franco-Nevadas funding commitment
Mineral Reserves are calculated using a long term average gold price of $1,450/
oz Au & $27.50/oz Ag and are the sum of Reserves at Palmarejo and Guadalupe
Franco-Nevada has filed a technical report in respect of Palmarejo which is
available on SEDAR at www.sedar.com
Mineral Reserves are reported as of April 1, 2011 at a gold price of $1,062/oz.
Mineral Reserves gold ounces exceed Mineral Resources gold ounces as a
result of an average block factor of 104.1% being applied by the operator.
Mineral Reserves estimated using a gold price of $1,200/oz
Mineral Reserves reported assumes a gold price of $1,200/oz
Mineral Reserves as of Dec 31, 2011
Mineral Reserves assumes $1,300/oz gold and $24/oz silver and a cut-off
of $4.33/t NSR
Mineral Reserves as of August 14, 2012
Mineral Reserves assumes a 0.4 g/t cut-off for Abnabna-Fobinso and 0.5 g/t
cut-off for all other deposits
Mineral Reserves and Resources as of December 31, 2011
Mineral Reserves are as of December 31, 2010
Mineral Reserves and Resources reported figures are for La Manchas 45.9% interest
Mineral Reserves and Resources as of December 31, 2011
Mineral Reserves assume a gold price of $1,250/oz and cut-off grade of 0.8 g/t
Mineral Reserves as of January 31, 2011
Mineral Reserves assumes a gold price of $1,066/oz
Mineral Reserves as of October 2012
Mineral Reserves based on cut-off grade of 1.0 g/t AuEq and $1,058/oz Au
& $16.60/oz Ag
Mineral Reserves as of Straits Resources Limited 2012 annual report published
August 30, 2012
Mineral Reserves assumes $1,500/oz Au & $34/oz Ag for open pit and $1,000/oz
Au & $15/oz Ag for underground
Mineral Reserves as of December 31, 2011
Mineral Reserves assumes a trailing 12 quarter combined average PGM market
price of $733/oz using $507/oz PD and $1,512/oz PT
Mineral Reserves and Resources at of December 31, 2010
Mineral Resources and Reserves estimated using $2.50/lb Cu, $7.00/lb Ni,
$1,500/oz Pt, $400/oz Pd and $1,000/oz Au
Mineral Reserves cut-off is based on direct cost, indirect cost, sustaining
capital and impact of Gold Wheaton agreement
Mineral Reserves estimated as of September 30, 2012
Mineral Reserves calculated from Lonmin Plc 34.85% interest
Mineral Reserves and Resources as of August 28, 2012
Mineral Reserves assumes $2.50/lb Cu, $15.00/lb Mo and $20/oz Ag
Mineral Reserves as of December 31, 2011
Mineral Reserves assumes $2.62/lb copper, $12.50/lb molybdenum and $15/oz silver
Mineral Reserves and Resources reported as of December 31, 2010
Mineral Reserves reported above a cut-off of 2.93 recoverable lbs Cu per ton
and a long term gold price of $1,000/oz and a long term copper price of $2.50/lb
Mineral Reserves as of June 30, 2012
Mineral Reserves as of December 31, 2011
Mineral Reserves assumes a cut-off grade of 1.2% Ni
Franco-Nevada Corporation
All Mineral Reserves and Resources have been estimated in accordance with acceptable foreign codes, including CIM, SEC, JORC, or SAMREC guidelines
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability
Unless otherwise noted, Mineral Reserves and Resources are reported as of December 31, 2012 based on the operators publicly disclosed information
available on March 15, 2013
Unless otherwise noted, Mineral Resources were reported by the operator inclusive of Mineral Reserves
Contained ounces do not take into account recovery losses
Rows and columns may not add up due to rounding
Inferred Resources are in addition to Measured and Indicated Resources. Inferred Resources have a great amount of uncertainty as their existence and whether
they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred Resources will ever be upgraded to a higher category
See Cautionary Note to US Investors Regarding Reserve and Resource Reporting Standards
17
FNV
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
18
FNV
135
136
137
138
139
140
141
142 Mineral Resources for White Dam (which is depleted to Jan 2012) was
re-estimated Oct 2010 at CoG of 0.3 g/t
143 Vertigo Mineral Resources depleted to end of mining in May 2012
144 Mineral Resources as of June 30, 2012
145 Mineral Resources cut-off grades vary from 0.5 g/t for Indicated & Inferred
oxide material and 2g/t for Indicated transition and fresh material
146 Mineral Resources inside a pit shell defined by $2.60/lb copper, $1.75/t mining
cost, $7.02/t operating cost and cut-off grade of 0.15% copper. Please see
Gold Assets, Gold-Rest of World, Cobre Panama, Panama for further
details regarding Franco-Nevadas funding commitment.
147 Mineral Resources cut-off grade; for Palmarejo open pit 1.03 g/t AuEq & underground
1.92 g/t AuEq; for Guadalupe underground 1.92 g/t AuEq; for La Patria 1.12 g/t AuEq
148 Franco-Nevada has filed a technical report in respect of Palmarejo which is
available on SEDAR at www.sedar.com
149 Mineral Reserves are reported as of April 1, 2011 at a gold price of $1,062/oz.
Mineral Reserves gold ounces exceed Mineral Resources gold ounces as a
result of an average block factor of 104.1% being applied by the operator.
150 Mineral Resources estimated using a gold price of $1,400/oz
151 Mineral Resources reported assumes a gold price of $1,400/oz
152 Mineral Resources as of Dec 31, 2011
153 Mineral Resources assumes $1,400/oz gold and $28/oz silver and a cut-off
of 0.1 g/t AuEq for open pit oxide and 0.4 g/t AuEq open pit sulphide
154 Mineral Resources as of March 2012
155 Mineral Resources assumes a cut-off of 0.4 g/t cut-off for primary ore and
0.2 g/t cut-off for oxide/transition
156 Mineral Resources assumes a cut-off grade of 4.0g/t for Upper Elsburg and
3.0 for the Middle Elsburg and assume a gold price of $775/oz
157 Mineral Resources as of December 31, 2010
158 Mineral Reserves and Resources reported as of December 31, 2011
159 Mineral Resources as of December 31, 2010
160 Mineral Reserves and Resources reported figures are for La Manchas 45.9% interest
161 Mineral Resources for the Agi Dagi project, which include the Baba, Deli, and Fire
Tower zones as of June 30, 2012; Camyurt Mineral Resources as of June 28, 2012
162 Mineral Resources oxide & transition material only with cut-off determined as
a net of process value of $0.10 per tonne, for each model block
163 Mineral Resources assumes a $1,250/oz gold price and a $22.50/oz silver price,
based on a March 2012 Resources model
164 Mineral Reserves and Resources as of December 31, 2011
165 Mineral Resources assumes a cut-off grade of 0.5 g/t
166 Mineral Resources as of March 1, 2012
167 Mineral Resources based on a price of $1.50/lb copper and a 0.30% cut-off
168 Mineral Resources as of Nov 21, 2012
169 Mineral Resources assumes a 0.3% copper equivalent cut-off on sulphides,
0.2 g/t gold cut-off on oxides
170 Mineral Resources copper equivalent calculated using $2.00/lb Cu, $800/oz Au,
$12.00/lb Mo
171 Mineral Resources as of July 30, 2012
172 Mineral Resources assumes: Cipoeiro cut-off of 0.33 g/t and Chega Tudo cut-off 0.33 g/t
173 Mineral Resources as of October 2011
174 Mineral Resources assumes a cut-off grade of 1 g/t Au
175 Mineral Reserves as of Straits Resources Limited 2012 annual report published
August 30, 2012
176 Mineral Resources cut-off grades vary from variable up to 1.0 g/t gold equivalent
177 Mineral Resources gold equivalent cut-off gold to silver ratio based on $1,500/oz
gold and $34/oz silver
178 Mineral Reserves and Resources at of December 31, 2010
179 Mineral Resources and Reserves estimated using $2.50/lb Cu, $7.00/lb Ni,
$1,500/oz Pt, $400/oz Pd and $1,000/oz Au
180 Mineral Resources estimated as of September 30, 2012
181 Mineral Resources calculated from Lonmin Plc 34.85% interest
182 Mineral Reserves and Resources as of August 28, 2012
183 Mineral Resources cut-off: Oxides 0.10% CuEq; Sulfide 0.15% CuEq; and mixed
0.3% CuEq based on $2.50/lb Cu, $15/lb Mo & $20/oz Ag
184 Mineral Resources as at December 31, 2011
185 Mineral Resources estimates assumes $2.62/lb copper, $12.50/lb molybdenum
and $15/oz silver
186 Mineral Resources as of November 21, 2012
187 Mineral Resources assumes a copper equivalent cut-off of 0.3% based on $2.00/
lb Cu, $800/oz Au and $12/oz Ag
188 Mineral Reserves and Resources reported as of December 31, 2010
189 Mineral Resources reported above a cut-off of 1.24 recoverable lbs Cu per ton
and a long term gold price of $1,000/oz and a long term copper price of $2.50/lb
190 Mineral Resources as of June 2, 2008
191 Mineral Resources assumes an oxide cut-off of 0.2%, a sulphide cut-off of 0.3%
and is constrained by a $2.00/lb copper pit shell
192 Mineral Resources as of June 30, 2012
193 Mineral Resources as of December 31, 2011
194 Mineral Resources assumes a cut-off grade of 1.2% Ni
19
FNV
ROYALTY EQUIVALENT
UNITS (REUs)
Stream
Developed NPI/WI
Undeveloped NPI/WI
$1,600
$1,600
$400
$1,600
$895 1
$1,600
$1,131 1
$1,600
4%
$64
100%
$1,200
4%
$48
75%
$705
4%
$28
44%
$469
4%
$19
29%
Alternatively
Ounces required to equal a 1% NSR
1.00 oz
1.33 oz
2.27 oz
3.41 oz
For applicable costs for a developed NPI or WI, Franco-Nevada is, for illustrative purposes, assuming Barrick Gold Corporations (Barrick) 2012 all-in sustaining cash cost
measure, as Barrick represents the largest gold company by production and reserves, as well as being the operator at five of Franco-Nevadas assets. Excluded from the
all-in sustaining measure are general and administrative costs as Franco-Nevada also has such costs which have not been reflected in the applicable cost for NSRs or streams.
(2)
For applicable costs for an undeveloped NPI or WI, Franco-Nevada has adopted similar assumptions to those listed above. To reflect the cost of developing a new mine,
Franco-Nevada has, for illustrative purposes, assumed Barricks depreciation per ounce for 2012 of $236 per ounce.
(1)
20
FNV
CONCLUSION: Based on the above economics, a comparable percentage NSR can be more than twice as valuable as an equivalent
NPI or WI and more than 30% more valuable than a stream interest. With changes to the gold price, the NPI/WI would demonstrate
the most leverage while the NSR would provide the most down side protection. The stream provides commodity price leverage
similar to a low cost operating company with more certainty as to future costs.
The GOLD Investment that WORKS
3. It is an NPI royalty.
An NPI is subject to the operating and capital costs
specific to each asset. For planning purposes, FrancoNevadas management generates its own internal LOM
projections for each of its assets in order to determine its
own reasonable estimates. Franco-Nevada management
will provide its best approximation as to the economically
equivalent NSR rate using a $1,600 gold price assumption.
4. It is an asset producing PGMs.
The number of attributable platinum or palladium
ounces are converted into gold equivalent ounces using
analyst consensus prices. In addition, NSR deductions
are more material for certain PGM assets subject to
NSR deductions such as Stillwater. For Stillwaters REU
calculation, 14% of the ounces have been deducted to
reflect the higher NSR deduction for that asset compared
to typical gold NSR assets.
Franco-Nevada Corporation
21
FNV
REU
M&I REU
M&I REU
REU by REU
Resource
REU
by Resource
byCategory
Resource
Category
Category M&I REU
M&I
byM&I
REU
location
REU
by location
by
(inclusive
location
(inclusive
of(inclusive
P&P)of P&P)
of P&P) M&I REU
M&I
byM&I
REU
typeREU
by
(inclusive
type
by type
(inclusive
of(inclusive
P&P)of P&P)
of P&P)
By Resource Category
By Location (inclusive of P&P)
By Type (inclusive of P&P)
22
P&P
P&P P&P
United States
United
United
States
States
NSR
M&I
M&I M&I
Canada Canada
Canada
Stream Stream
Stream
Inf
Inf Inf
Australia Australia
Australia
NPI
Rest of World
Rest Rest
of World
of World
FNV
NSR NSR
NPI NPI
P&P REUs
(000s)
M&I REUs 3
(000s)
Inf REUs
(000s)
NSR/NPI
NSR
NSR
NSR
NSR
NSR
NSR
NSR
NSR
NSR
336
113
189
120
36
14
85
0
0
1
390
113
214
146
86
21
129
1
0
7
23
0
43
14
10
7
25
2
0
1
GOLD - CANADA
NSR
NSR
Stream
NSR
NSR
NSR
NSR
NPI
NSR/NPI
NSR
NSR
NSR
NSR
NSR
Stream
NSR
NSR
311
0
15
1
5
49
2
43
31
19
18
0
0
1
1,824
20
66
465
49
30
3
25
106
17
44
69
28
21
7
10
1
2,171
21
81
116
39
8
0
51
26
4
17
10
41
2
35
22
0
0
5
35
GOLD - AUSTRALIA
Duketon
Henty
South Kalgoorlie
Bronzewing
Red October
Admiral Hill
Bullabulling
Glenburgh
White Dam
Wiluna
NSR
NSR
NSR
NSR
NSR
NSR
NSR
NPI
NSR
NSR
60
2
9
7
1
0
0
0
0
0
88
5
35
13
4
0
11
2
0
61
65
0
25
6
2
0
5
3
0
69
Detour Lake
Detour Block A
Sudbury Au
Hislop
Holloway
Holt
Taylor, Aquarius and Clavos
Musselwhite
Hemlo
Timmins West
Canadian Malartic
Phoenix
Kirkland Lake
Mouska
New Prosperity*
Goldfields (Box/Athona)
Courageous Lake
Stream
Stream
Stream
NSR
NSR
NSR
NSR
Stream
NSR
NSR
NSR
NSR
NSR
NSR
NSR
NSR
NSR
4,132
249
219
159
157
15
51
0
2
2
0
20
7
0
23
3
3
4,975
611
219
294
201
33
81
139
6
8
30
28
98
82
33
4
3
2,254
171
0
16
46
17
26
1,339
0
1
19
11
4
18
2
0
0
GOLD REUs
6,596
9,150
4,633
PGM
Stillwater
Sudbury PGM
Pandora
NSR
Stream
NPI
465
69
28
465
115
302
0
14
42
PGM REUs
563
882
57
7,159
10,032
4,690
1 For information regarding calculation of each REU, please refer to the individual asset writeups
2 Appropriate metallurgical deductions should be made to the reserves and resources shown in order to estimate metal produced
3 M&I REUs include P&P REUs
* Totals do not include New Prosperity
Franco-Nevada Corporation
23
FNV
P&P REUs
(millions)
M&I REUs 4
(millions)
Inf REUs
(millions)
NSR
NSR
NSR
NSR
NSR
75
2
0
106
0
97
9
43
156
194
14
2
40
54
69
183
499
179
Rosemont
Robinson
Vizcachitas
Relincho
Taca Taca
1 For information regarding calculation of each REU, please refer to the individual asset writeups
2 Appropriate metallurgical deductions should be made to the reserves and resources shown in order to estimate metal produced
3 Assumes NSR deductions of 15%
4 M&I REUs include P&P REUs
Nickel REUs
P&P REUs
(millions)
M&I REUs 4
(millions)
Inf REUs
(millions)
NSR
NPI
6
44
13
51
1
3
49
63
Mt Keith
Falcondo
1 For information regarding calculation of each REU, please refer to the individual asset writeups
2 Appropriate metallurgical deductions should be made to the reserves and resources shown in order to estimate metal produced
3 Assumes NSR deductions of 15% for Falcondo and 25% for Mt Kieth
4 M&I REUs include P&P REUs
24
FNV
Light &
Medium Oil
Gross
(mbbl)
Net
(mbbl)
Heavy
Oil
Net
(mbbl)
Gross
(mmcf)
Net
(mmcf)
Gross
(mbbl)
Net
(mbbl)
Total Oil
Equivalent
Gross
(mboe)
Net
(mboe)
Proved
Producing
14,491
13,562
113
1
8,555
231
14,491
Developed Non-Producing
1,596
1,394
1,596
Undeveloped
4,639
4,277
171
171
4,810
15,332
1,394
4,448
Total Proved
20,726
19,233
113
8,555
171
402
20,897
21,174
Total Probable
10,049
9,302
25
2,762
92
175
10,141
9,962
30,775
28,535
138
11,316
263
577
31,038
31,136
Gross
(mbbl)
Natural
Gas
NGLs
The following table set forth the net present value of future net revenue attributable to the reserves categories referred to above,
before deducting future income tax expenses, calculated without discount and using a discount rate of 5%, 10%, 15% and 20%:
Net Present Values of Future Net Revenue
Before Income Taxes Discounted At (%/year)
Reserves Category
0%
5%
10%
15%
(C$000)
Proved Producing
$ 770,542
$
Developed Non-Producing 102,233
Undeveloped 196,733
553,150
$
57,211
89,850
426,149
$
35,009
41,648
345,007
$
23,036
17,685
289,554
16,083
4,867
700,212
318,536
502,806
173,900
385,728
106,007
310,504
70,069
676,706
491,735
380,573
$ 1,751,408
$ 1,018,748
20%
The following table sets forth the net present value of future net revenue attributable to the proved, probable and proved plus
probable reserves, by major and other producing assets, before deducting future income tax expenses, calculated without discount
and using a discount rate of 5%, 10%, 15% and 20%. Columns may not add due to rounding.
Reserves Category
0%
5%
10%
15%
(C$000)
20%
Proved
Weyburn
$ 912,028
$ 591,433
$ 419,417
$ 317,680
$ 252,698
Midale
41,367
26,066
18,829
14,737
12,129
Edson
35,960
27,243
22,064
18,643
16,212
Other
80,152
55,469
42,496
34,668
29,465
Total Proved 1,069,507
700,212
502,806
Probable
Weyburn
$ 624,370
$ 292,218
$ 158,574
$
Midale
15,767
6,116
3,228
Edson
15,824
8,726
5,647
Other
25,940
11,476
6,451
Total Probable
681,901
318,536
173,900
385,728
310,504
95,723
$ 62,5467
2,034
1,423
4,024
3,053
4,226
3,046
106,007
70,069
$ 1,751,408
$ 1,018,748
$ 676,706
$ 491,735
$ 380,573
See Cautionary Note to US Investors Regarding Reserve and Resource Reporting Standards and Oil & Gas Information Advisory.
25
FNV
Franco-Nevada Corporation
ASSETS
Gold
26
FNV
Page
UNITED STATES
Goldstrike
Gold Quarry
Marigold
Bald Mountain
Mesquite
Hollister
Dee (Storm/South Arturo)
Pinson
29
30
31
32
33
34
35
36
CANADA
Detour
Sudbury Gold (3 mines)
Golden Highway (3 mines)
Musselwhite
Hemlo
Timmins West
Canadian Malartic
Phoenix
Kirkland Lake
New Prosperity
Goldfields
Courageous Lake
37
38
39
40
41
42
43
44
45
46
47
48
AUSTRALIA
Duketon
Henty
South Kalgoorlie (2 mines)
Bronzewing
Red October
49
50
51
52
53
REST OF WORLD
Cobre Panama
Palmarejo
MWS
Tasiast
Subika
Cerro San Pedro
Edikan
Cooke 4
Ity
Agi Dagi
Perama Hill
San Jorge
Gurupi
54
55
56
57
58
59
60
61
62
63
64
65
66
PGM
Stillwater
Sudbury PGM (3 mines)
Pandora
Other Minerals
Mt Keith (Ni)
Rosemont (Cu, Mo, Ag)
Peculiar Knob (Fe)
Robinson (Cu, Au)
Falcondo (Ni)
Relincho (Cu, Mo)
Taca Taca (Cu, Au, Mo)
Page
67
68
69
Page
70
71
72
73
74
75
76
Page
77
78
79
80
81
ASSETS
FRANCO-NEVADA
ASSETS
27
FNV
ASSETS
78
70
40
56
46
80
55
69
72
64
44
36
53
75
73
71
65
51
67
58
38
68
76
57
42
77
Various Producing
and Advanced Assets
have been profiled.
Exploration Assets
can be found tabulated
on pages 82-84.
ASSETS
Agi Dagi
Arctic Gas
Bald Mountain
Bronzewing
Canadian Malartic
Cerro San Pedro
Cobre Panama
Cooke 4
Courageous Lake
Dee (Storm/South Arturo)
Detour
Duketon
Edikan
Edson (Gas/NGL)
Falcondo (Ni)
Golden Highway (3 mines)
Goldfields
Gold Quarry
Goldstrike
Gurupi
Hemlo
Henty
Hollister
Ity
Kirkland Lake
Marigold
Mesquite
28
FNV
The description and depiction of our assets in this Asset Handbook has been simplified for presentation purposes. More current information may be
available in our subsequent disclosure and on our web site. Mineral reserves and resources information for 2011 is provided for comparative purposes
only. For a detailed breakdown of the 2011 mineral reserves and resources, please refer to our AIF for the year ended December 31, 2011 available
on SEDAR at www.sedar.com.
GOLDSTRIKE
Location:
Nevada
Operator:
Royalty:
Franco-Nevada holds royalties covering the majority of the Goldstrike complex operated by Barrick. The Goldstrike complex is
located on the Carlin Trend, about 60 kilometres (km) northwest of the town of Elko, Nevada. The Goldstrike complex includes
the open-pit Betze-Post mine as well as the underground operations of Meikle and Rodeo immediately to the north. Mining activity
commenced on the property in 1976 and since 1986 has been operated by Barrick. Barrick reported that the Goldstrike complex
produced 1.174 million ounces (Moz) of gold in 2012.
Franco-Nevada holds NSR (2-4%) and NPI (2.4-6%) royalties at Goldstrike covering the majority but not all of the reported mineral
reserves and mineral resources. Included is low grade ore that has been stockpiled for later processing. The royalties vary depending
on the claim blocks as shown in the figure. As a result, royalty payments can vary substantially on a quarterly basis depending on
mine sequencing and waste stripping. The timing of capital investments can also impact the timing of the payment of profit royalties.
Goldstrike is a mature mining operation for which the majority of capital has already been spent and recovered. Overall production
rates have been declining and, as a result, Franco-Nevadas revenue derived from its NSR has also declined despite higher gold prices.
At the same time, higher gold prices have been contributing to higher revenue derived from its NPI substantially compensating for
the decline in production. For 2013, Barrick anticipates lower
production from Goldstrike versus 2012 primarily due to lower
Extension
5% NPI
throughput capacity while the autoclaves are being modified as part
4% NSR
Goldstrike
of the thiosulphate project. These modifications are expected to be
Underground
completed in 2014 and are expected to contribute 350-400 thousand
Mine
Meikle/Rodeo
ounces (koz) of gold over the first full five years of production.
Gold Bug
Royal
5% NPI
3% NSR
As well, Barrick anticipates higher capital expenditures during 2013
4% NSR
which will impact Franco-Nevadas NPI. The Goldstrike royalties
are expected to have a long life with mining likely to continue for
Goldstrike
Bazza Strip
the foreseeable future followed by a long period of processing of
2% NSR
Open Pit Mine
N
2.4% NPI
SJ
accumulated stockpiles.
6% NPI
Post
1 Mile
Corbett
2% NSR
Goldstrike
5% NPI
4% NSR
Pandora
2% NSR
Weimer
4% NSR
Rodeo
Creek
4% NSR
Above 4600
Goldstrike
Mine
SPLC
Lease
6% NPI
2012
2011
2010
20.7
35.0
55.7
$
$
20.3
25.2
45.0
$
$
16.0
33.2
49.2
$
$
12,338
14,320
834
12,377
14,352
836
336
390
23
444
514
30
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 71% (80% estimated in 2011) of the Goldstrike mineral reserves and resources are subject to our royalty interests and estimates
an average REU rate of 3.85% (4.5% in 2011) is applicable at current Au price
3 For additional information on the Goldstrike complex, please see Franco-Nevadas AIF dated March 19, 2013, a copy of which is available under Franco-Nevadas profile
on SEDAR at www.sedar.com
Franco-Nevada Corporation
ASSETS
Asset highlights:
Proven long life established operation with world class operator
Both revenue and profit based royalties
Profit royalties benefiting from gold price leverage
5% NPI
4% NSR
Bazza
2% NSR
29
FNV
GOLD
QUARRY
Location:
Nevada
Operator:
Newmont Mining
Corporation
Royalty:
NSR: 7.29%
The Gold Quarry operation is part of Newmont Mining Corporations (Newmont) Carlin operations in north-central Nevada.
It is a large open pit mine that has been in production since 1985 supplying ore as part of an integrated mining complex with
different mines supplying variable ore types and grades to a variety of processing facilities situated throughout the complex.
Newmont has significant milling and roasting processing infrastructure immediately east of the Gold Quarry pit. Newmont
currently reports mineral reserves and production numbers by area and does not publicly quote separate Gold Quarry numbers.
Franco-Nevada acquired its royalty interest on a portion of the Gold Quarry property on December 29, 2008 as shown in the
schematic. The Gold Quarry royalty is a 7.29% NSR based on production or different annual minimum royalty payment obligations
tied to mineral reserves and stockpiles attributed to the Gold Quarry royalty property. Based on reserve related minimum royalty
provisions, Franco-Nevada expects to receive on average at least 11,250 gold royalty ounces per annum. In 2013, stockpile-related
minimum royalty provisions are expected to apply which would increase the royalty payable.
Gold Quarry expects to complete mining in the current layback in
2013 and plans to start an additional layback during 2013 which
is expected to be mined for five years. Mine life is now estimated
by the operator to extend to 2028.
Asset highlights:
Guaranteed minimum annual payment obligations
Registered on private lands
Adjacent to Newmonts milling and roasting infrastructure
Expected long life royalty asset
7.29%
NSR
7.29%
NSR
0.5 Mile
Gold Quarry
Open Pit
Gold Quarry
Mine
ASSETS
Potential Greater
Gold Quarry Expansion
FNV
2011
2010
20.4
18.6
17.9
NA
NA
NA
NA
NA
NA
113
113
113
169
30
2012
1 Newmont does not disclose mineral reserves and resources for individual assets in Nevada
2 M&I categories are inclusive of reserves
3 For REU calculation, FNV management assumes we receive annually the minimum royalty provision of 11,250 ounces for 10 years for P&P and M&I
(15 years estimated for M&I in 2011)
MARIGOLD
Location:
Nevada
Operator:
Gold Corporation
Royalty:
The Marigold mine is located approximately 64 km southeast of Winnemucca, Nevada. It is a conventional open pit heap leach
operation and is operated by a joint venture between Goldcorp Inc. (Goldcorp) (66.7%) and Barrick (33.3%). Franco-Nevada has
various royalties on the operation (1.75-5% NSR and 0.5-4% GR), as shown in the schematic, together covering almost all of the
current mineral reserve base. Franco-Nevadas original royalties were acquired in connection with the IPO and, in December 2009,
additional royalties covering alternate sections were added.
The operators reported production decreased by approximately 6% to
144 koz in 2012 compared to 2011 production of 153 koz. Marigold
continued to focus on a stripping campaign during the year as
mining transitioned from the Basalt pit to the Target 2 pit. Ore will
predominately be sourced from the Target 2 pit during 2013.
5% NSR
1.75% NSR
5% NSR
Valmy
5% NSR
5 North
Deposit
5% NSR
5% NSR
5% NSR
N
1 Mile
5% NSR
2.5%-4% GR*
Asset highlights:
Proven long life established operation with world class operator
Impressive increase to reserves at December 31, 2012
Higher gold prices have recently transformed smaller satellite pits
into potentially a larger continuous pit approximately 3 km in length
5% NSR
1.75% NSR
5% NSR
8 North
Deposit
Terry Zone
North Deposit
1.75% NSR
2.5%-4% GR*
5% NSR
Terry
Zone
Pit
2.5%-4% GR*
0.5%-1.5% GR*
Marigold
Mine
2.5%-4% GR*
*December 2009
Acquisition
5% NSR
3% NSR*
Target
Pit
Target 2
Deposit
1.75% NSR
5% NSR
3% NSR*
5% NSR
3% NSR*
Schematic
Representation
Only
Antler
Pit
1.75% NSR
ASSETS
Basalt
Pit
2012
2011
10.3
10.9
4,920
5,550
1,110
3,480
3,885
150
190
214
43
92
103
4
2010
9.1
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 94% (97% in 2011) of the Marigold Mineral Reserves and Mineral Resources are subject to our royalty interest and estimates
an average REU rate of 4.11% (2.7% in 2011) is applicable
Franco-Nevada Corporation
31
FNV
BALD
MOUNTAIN
Location:
Nevada
Operator:
Royalty:
NSR/GR: 0.875-5%
The Bald Mountain mine lies within the Southern Ruby Mountains of
northeastern Nevada, approximately 110 km southeast of Elko. Bald
Mountain is operated by Barrick and ore is sourced from multiple open
pits over an estimated 150,000 acre property. Processing is done at
multiple conventional heap leaching facilities using carbon absorption
for gold recovery. The U.S. Bureau of Land Management (the BLM)
approved a planned expansion of the Bald Mountain mine and Barrick
is working on a plan to consolidate the site into two plans of operations
so it can expand. The new north area plan would expand the disturbance
footprint from 8,899 acres to 13,631 acres. The expansion is expected to
increase the life of the mine to 2032. The new south area would expand
the ground disturbance from 90 to 3,644 acres and add a new area called
the Gator Pit. The plans were submitted to the BLM in October 2011 and
it is anticipated the draft environmental impact statement (the BLM
EIS) will be approved in 2013. The final BLM EIS is expected in 2014
and a record of decision is expected in 2015.
Franco-Nevadas Bald Mountain royalties cover a significant portion,
but not all, of the Bald Mountain property. Franco-Nevada holds various
revenue royalties on the property depending on the claim groups
ranging from 0.875% to 5% NSR/GR. A detailed map of our royalties
is shown in the schematic.
1%-5%
GR
Royale
1%-5% GR
LJ Ridge
2/3
5
South
Ridge
RBM
North Duke
South
Duke
Banghart
1
North Block
Poker
Flats
4%
NSR*
4% NSR*
Rat
Galaxy
Top
0.875
to
1.75%
NSR
Sage Flats
4% NSR
Bida
Belmont
2.418%
NSR
Horseshoe
4% NSR
Saga
4% NSR
4%
NSR*
4%
NSR*
N
1 Mile
ASSETS
4% NSR*
Lux/Vantage
Targets
4% NSR*
South Block
South
Block
FNV
Bald
Mountain
Mine
Yankee
Targets
Asset highlights:
Proven established long life operation with world class operator
Recently completed mine expansion
Ongoing exploration
4% NSR*
32
North
Block
4% NSR
2012
5,161
6,663
762
5,102
6,725
787
120
146
14
123
150
13
8.8
2011
3.9
2010
1.6
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 66% (69% in 2011) of mineral reserves and 53% (50% in 2011) of mineral resources are subject to our royalty interest and estimates
an average REU rate of 3.5% (unchanged from 2011) is applicable to P&P reserves and 3.4% (3.3% in 2011) for M&I and inferred resources
MESQUITE
Location:
California
Operator:
Royalty:
NSR: 0.5-2%
Mesquite is a gold operation located in south-east California approximately 70 km northwest of Yuma, Arizona and 230 km
east of San Diego, California. The mine is an open pit, run-of-mine, heap leach operation. It was originally started in 1986 and
then re-started in January 2008 by Western Goldfields Inc., a predecessor company of New Gold Inc. (New Gold).
Franco-Nevada holds royalties on the entire Mesquite mine property that range from a 0.5% to 2% NSR depending on the claim
block as shown by the schematic.
New Gold reported 2012 production of 142 koz of gold
which was down 10% from 2011 production primarily
due to lower grades being placed on the leach pads as
planned due to mine sequencing. Also, more ore was
sourced from the lower percentage royalty ground.
Looking ahead to 2013, mining is expected to remain
in a portion of the pit that has average grades below
that of Mesquites global reserve grade, resulting in
an expected modest decrease in production. Based
on New Golds longer term plans, it is expected that,
after 2013, Mesquites production should increase to
historical levels.
Big
Chief
Brownie
Rainbow
0.5%
NSR
1% NSR
$500
Gold Pit
2% NSR
Asset highlights:
2013 mining scheduled to remain on lower grade
portion of mine resulting in a modest production
decrease
After 2013, production is expected to increase
to historic levels
Vista
Mesquite
Mine
1 Mile
ASSETS
2012
2,342
5,684
651
2,762
5,534
512
36
86
10
46
92
9
3.9
2011
4.8
2010
4.2
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates an average REU rate
of 1.52% (1.67% in 2011) is applicable
Franco-Nevada Corporation
33
FNV
HOLLISTER
Location:
Nevada
Operator:
Royalty:
NSR: 3-5%
Hollister is an underground mine located at the northern end of the Carlin Trend in the Ivanhoe Mining District, Elko County,
Nevada, approximately 121 km east-northeast of Winnemucca, Nevada. Great Basin Gold Limited (GBG) owns and operates
the Hollister project.
Franco-Nevada holds a 5% NSR royalty on approximately 7,000 acres of the Hollister project. However, the NSR royalty is reduced
by 2% on 45 claims known as the Hillcrest-Finley River Block, effectively giving Franco-Nevada a 3% NSR royalty on production
from that area.
GBG initiated creditor protection proceedings in Canada
under the Companies Creditors Arrangement Act in
September 2012 and on February 25, 2013, GBGs
subsidiary, Rodeo Creek Gold Inc., and certain of its
affiliates, entered US Bankruptcy Code Chapter 11
restructuring proceedings in Nevada. GBG has initiated
a sales process for the Hollister mine but does not expect
any interruptions in its day-to-day business.
Franco-Nevada will work with the ultimate purchaser
of the Hollister mine with the objective of ensuring the
continued payment of its royalty.
Hillcrest Finley
River Block
3% NSR
N
1 Mile
Hollister
Deposit
Hollister/Ivanhoe
5% NSR
Hatter
Discovery
USX
Pits
ASSETS
Hollister
Project
34
FNV
2012
2011
3.2
5.0
455
706
221
832
1,463
1,027
14
21
7
25
44
31
2010
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates an average REU rate of 3% is applicable
1.1
DEE
(STORM/SOUTH ARTURO)
Location:
Nevada
Operator:
Goldcorp Inc.
Royalty:
The Dee project is located at the north end of the Carlin Trend, approximately 45 km north-west of the town of Carlin, Nevada.
The project is operated by a joint venture between Barrick (60%) and Goldcorp (40%). Underground mining is occurring on the Storm
property immediately north of the Dee property which is accessed through the historic Dee pit.
Franco-Nevada holds a sliding scale gross royalty on production
from the Dee claims which ranges from 4% to 9% and is tied to a
consumer price indexed (CPI) dollar value of the ore. Additionally,
Franco-Nevada receives annual advance minimum royalty payments
of $200,000 which will be credited against any future production
royalty payments.
Dee
4-9% GR
N
1 Mile
Storm
Underground
Deposit
Exclude
Deep
North
Target
South
Arturo
Deposit
Historic
Dee
Pit
Dee Project
Exclude
from Royalty
ASSETS
2012
2,368
3,587
703
2,330
3,710
393
85
129
25
84
134
14
0.2
2011
0.2
2010
0.2
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 90% of the mineral reserves and resources are subject to our royalty interest and estimates an average REU rate of 4% is applicable
Franco-Nevada Corporation
35
FNV
PINSON
Location:
Nevada
Operator:
Royalty:
NSR: 1-2%
Franco-Nevada holds a 1-2% NSR royalty on approximately 20 sections and a smaller royalty on another half section of
checkerboard land in the area covering portions of the Pinson and Getchell projects in Nevada.
The Pinson project is located near Winnemucca in Humboldt County, Nevada, just south of Barrick and Newmonts Getchell/
Turquoise Ridge mine and 8 miles from Newmonts Twin Creeks mine complex. From 1980 to 1999, the Pinson mine produced
985 koz of gold through open pit mining and heap leach and oxide mill recovery.
In September 2011, Atna Resources Ltd. (Atna) announced that it had
acquired Pinson Mining Companys (PMC) 70% interest in the Pinson
mine. The 70% interest includes four square miles of land (2,560 acres)
which contains all areas of previous gold production as well as the area
containing the current estimated mineral resources. PMC (a subsidiary
of Barrick) became the owner of all, or portions of 21 square miles
(13,440 acres) of land surrounding the four sections owned by Atna.
As part of the transaction, Atna also signed a non-exclusive ore milling
and gold purchase agreement allowing for processing of Pinson mine
ores at Barricks Goldstrike processing facilities.
Twin
Creeks
Mine
Turquoise
Ridge
Deposit
ASSETS
Atnas goal for 2013 is to end the year with a total of nine operating ore
stoping areas, with additional stopes being continuously developed to
replace depleting stopes. Together with underground truck haulage, this
number of working faces should achieve a daily production rate in the
800 to 1,000 ton per day range. Ore production is expected to increase
through the year as additional ore stopes are developed.
2% NSR
(Getchell)
.08% NSR
2% NSR
(Getchell)
1% NSR
Pinson
Royalty
Lands
1% NSR
36
FNV
2% NSR
(Getchell)
2% NSR
(Getchell)
Mineral
Resource
Area
1 Mile
2012
645
2,055
874
2,055
874
2
1
0.1
2011
0.1
2% Getchell Royalty
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 0% (10% assumed in 2011) of the mineral reserves and resources are subject to our royalty interest and estimates an average
REU rate of 1.0% is applicable
2010
0.1
DETOUR
Location:
Ontario / Quebec
Operator:
Royalty:
NSR: 2%
Franco-Nevada has a 2% NSR royalty that covers all reported mineral resources at the Detour Lake mine which is located 185 km
northeast from the town of Cochrane, Ontario. Detour Gold Corporation (Detour) is the operator. Placer Dome Inc. operated a
mine on the property from 1983 through 1999 and has reported that it produced approximately 1.8 Moz of gold.
The mine poured its first gold in February 2013 and Franco received its first payment in March. Franco expects Detour to be a
long-term revenue contributor to the Company with a current life of mine plan of over 20 years. Average annual gold production
is estimated by Detour at 657 koz of gold based on a throughput ranging from 55,000 to 61,000 tonnes per day (tpd) at total cash
costs between $710-749/oz. For 2013, Detour expects to produce between 300-350 koz.
Asset highlights:
Poured first gold in February 2013
Expected to produce 300-350 koz in 2013
At full production, expected to produce on
average 650 koz
Possibility of future expansion
Ontario
Gowest
(TWD)
D
Detour
Gold
Project
Quebec
The property has a large prospective land position of approximately 566 square kilometres (km2) with two main gold structures
with a total strike length of over 80 km. Detour continues to explore focusing on the Block A property (consolidated with the
purchase of Trade Winds Ventures Inc. in December 2011) as well as testing targets on structure south of Detour Lake. Detour has
a stated goal of growing its reserve base to
greater than 20 Moz from its current reserve
TWD
Project
Mine Option
A
base of 15.6 Moz.
Property
Sunday Lake
Deformation Zone
Detour Lake
Lower Detour Lake
Deformation Zone
2.5
Kilometres
ASSETS
2012
2011
2010
15,573
23,261
5,785
15,573
23,261
5,785
2,448
1,967
2,448
1,967
311
514
155
311
514
155
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2% is applicable
Franco-Nevada Corporation
37
FNV
SUDBURY GOLD
Location:
Ontario
Operator:
Stream:
Please see PGM Assets: Sudbury PGM for an asset description. The following are revenue figures, reserve and resource
estimates and attributable REUs for the gold component of our 50% precious metal stream agreement with KGHM International Ltd.
(KGHM).
Podolsky
Levack
(Morrison
Deposit)
McCreedy
West
N
0
Coleman
5
Km
Strathcona
Mill
Nickel Rim South
SUDBURY
Clarabelle Mill
Smelter
Copper Cliff
Smelter
Creighton
ASSETS
Totten
38
FNV
2012
2011
2010
15.4
14.3
40
80
20
40
80
20
15
30
8
15
30
8
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our 50% stream interest to which a 75% (76% in 2011) factor has been
applied to estimate REUs. Note that this stream interest is calculated based on contained ounces in ore so there are no losses associated to metallurgical recoveries
GOLDEN
HIGHWAY
Location:
Ontario
Operator:
Royalty:
NSR: 0.25%-15%
Holloway Mine
Franco-Nevada has multiple NSR royalties ranging from 0.25-15% over the Destor-Porcupine mineral trend just east of Timmins,
Ontario spread over more than 120 km. Highway 101 that parallels this trend is referred to as the Golden Highway so FrancoNevada has grouped together several producing royalties and development projects under this one title. Most of the properties are
owned and operated by St Andrew Goldfields Ltd. (St Andrew) and ore is processed through a central milling complex. St Andrew
reported that total production in 2012 was 95.6 koz of gold. St Andrew operates three mines in the area (all under Franco-Nevada
royalties) and expects to produce between 95 and 105 koz of gold in 2013.
Holloway: Franco-Nevada has a sliding scale NSR royalty of 2% if the price of gold is less than $800/oz, increasing by 1% for every
$100/oz increase in the price of gold, up to a maximum of 15%. St Andrew re-started production at the Holloway mine in 2009.
Holt: The Holt property is immediately south of the Holloway mine and hosts the Holt mill complex and the Holt mine. Franco-Nevada
has a sliding scale NSR royalty beginning at 2% when the gold price is less than or equal to $500/oz and increasing in 1% increments
for each $100/oz increase in the gold price, to a maximum of 10%. St Andrew re-started operations at the Holt mine in 2011.
Hislop: The Hislop property is located approximately 50 km to the west of the Holt mill where ore is trucked for processing.
Franco-Nevada has a 4% NSR royalty on the Hislop property which includes minimum royalty payment commitments. St Andrew
brought the Hislop open pit mine into production in the third quarter of 2010.
In addition, Franco-Nevada has royalties on St Andrews Taylor project (1% NSR) and the Aquarius deposit (1-2% NSR). St Andrew
extracted a 15,000 tonne bulk sample at Taylor in December 2012 and expects sampling results in Q2 2013. With a sizable land
package, St Andrew has several
exploration targets including Zone 4
Stock Mine and Mill Royalty
1% NSR
& Ghost (Holt/Holloway) and Hislop
Pipestone
ON
R
Fault
North which are all in close proximity
Destor-Porcupine
Fault Zone
Holloway Royalty
to existing operations.
Sliding scale
N
Lake
Abitibi
11
Hoyle Pond
Kinross 1060 Zone
Kidd Creek
Frederick
House
Lake
Lake
Abitibi
Matheson
Stock
Beatty
Carr
Timmins
Hollinger
101
Delnite
Kenogamisis
Lake
Hallnor
Matheson
Pamour
#1
Porcupine
Dome
Paymaster
Porcupine
Aunor
Peninsula
Royal Oak
20 kilometres
McCool
Hislop
11
Cody
Macklem
Bond
Currie
Bowman
Rand
Jonpol
Apollo
Black Fox
Broulan Reef
McIntyre
Munro
Stoughton
101
Michaud
Ross Mine
Ludgate
Garrison
Harker
Marriot
Holloway
Holt Royalty
1-2% NSR
Hislop Royalty
Taylor Royalty
4% NSR
1% NSR
Cook
Barnet
Sliding scale
Thackeray
2012
2011
10.8
14.3
735
3,104
1,101
712
2,015
1,945
56
151
81
51
140
159
Frecheville
Holt Mine
Guibord
Aquarius Royalty
Night
Hawk
Lake
Lamplugh
Holloway Mine
2010
6.3
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves. Reserves and Resources
are sum of 6 different properties
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates REU rates of: Holloway 11%; Holt 10%;
Hislop 4%; Taylor 1% at $1,600 per ounce gold
ASSETS
Asset highlights:
3 operating mines and a large
exploration land package
2013 production estimate of 95
koz to 105 koz ounces
Expecting results from Taylor bulk
sample in Q2 2013
German
Owl Creek
Bell Creek
Taylor
Franco-Nevada Corporation
39
FNV
MUSSELWHITE
Location:
Ontario
Operator:
Goldcorp Inc.
Royalty:
5% NPI
Franco-Nevada has a 5% NPI royalty that covers all of the original leased lands at Goldcorps Musselwhite operation located in
northwestern Ontario, 480 km north of Thunder Bay. The royalty also covers an area of interest surrounding the property as shown
in the schematic. The mine is a fly-in/fly-out underground operation which began operating in April 1997 and has produced in excess
of 3 Moz of gold.
Franco-Nevada received its first payment under the NPI royalty in 2011 as the mine has now recovered all historical capital and
operational costs. The operation has an estimated 13 year mine life and is expected to produce between 250-260 koz of gold in 2013.
In 2010, Goldcorp announced that it had discovered the
Lynx zone, a zone of higher grade ore above the cornerstone
PQ Deeps underground operation. This has the potential to
significantly enhance the economics and extend the mine life.
Musselwhite
N
O
1.5
Kilometres
Asset highlights:
Newly paying royalty
2013 production estimate of 250-260 koz
Promising new exploration
Esker North
Area of Interest Boundary
Opapimiskan Lake
Exploration
West Anticline
Mill
Zeemel Lake
Leased Lands
Unpatented Lands
ASSETS
Deposits
40
FNV
2012
2010
5.1
2,290
2,370
920
2,280
2,430
920
43
44
17
47
50
19
6.3
2011
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 1.88%
is applicable assuming an all in cost of $1,000/oz including depreciation deduction
HEMLO
Location:
Ontario
Operator:
Royalty:
(on portion)
The Hemlo gold camp has been producing gold for over 25 years and is located just off the Trans-Canada highway near Marathon,
Ontario. A wholly-owned subsidiary of Barrick is the operator and manages both the open-pit and underground operations.
Franco-Nevada has both a 3% NSR royalty and a 50% NPI royalty on a portion of the western down-dip underground extension
of the Hemlo ore-body as shown in the longitudinal schematic.
Initial mining on the royalty property began in late 2008 but
revenues have been limited to the 3% NSR royalty. The 50%
NPI portion of the royalty began paying in Q3 2012 once all
related costs had been recovered by the operator. Barrick
reported that production in 2012 was 206 koz of gold from
the entire operation.
Hemlo
Long Section
Williams
Shaft & Mill
Surface
C Zone Pit
9975
C Zone
9765
Mined Area
9555
9450
Mined Area
W
9240
e
in
M
a
s
m
ad d
ia
ev un
ill
-N ro
co G
an lty
Fr oya
R
3% NSR
+
50% NPI
9160
B Zone
ASSETS
2012
1,150
2,978
373
1,139
1,549
374
31
69
10
47
49
2
7.5
2011
1.4
2010
0.1
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates approximately 15% of the publicly reported reserves and resources for Hemlo are on its royalty ground. Also, the NPI
is subject to ongoing negotiations regarding applicable cost allocations. The REUs estimated represent FNV managements current best estimate of the probable outcome of current
negotiations using its own LOM projections
Franco-Nevada Corporation
41
FNV
TIMMINS WEST
Location:
Ontario
Operator:
Royalty:
NSR: 2.25%
Franco-Nevada acquired a 2.25% NSR royalty on Lake Shore Gold Corp.s (Lake Shore) Timmins West property in February 2012.
The royalty covers a large land package to the west of the City of Timmins, Ontario which hosts the Timmins and Thunder Creek
deposits as well as the Gold River Trend and 144 exploration zones to the south. Lake Shore reported that production from the
Timmins West property was 64 koz in 2012.
Burr
Lake Shore is expanding its milling facilities to 3,000 tpd from 2,000 tpd which it expects to be completed by Q2 2013. Lake Shore
reported that it is targeting 120-135 koz of production in 2013 and that 80-85% will be from the Timmins West royalty ground.
The remainder of production is expected to come from the Bell Creek property which is not subject to the royalty. At full production,
Lake Shore has estimated that the
Timmins West mine will contribute
140-160 koz of gold per year.
Bell Creek
ows
Complex
ult
t Fa
edic
Ben
r Fault
mi Rive
Mattaga
Hollinger
McIntyre
Timmins
Fault
20
Km
Dome
Mine
Timmins
West
UG Mine Shaft
Deposits
Timmins
West
2.25% NSR
Timmins
Deposit
Timmins
West
Thunder Creek Deposit Mine
N
4 kms
101
144
Zone
ASSETS
Asset highlights:
New and expanding mining
operations
Located adjacent to Timmins, Ontario
Mill expansion from 2,000 tpd to
3,000 tpd
Destor-Porcupine
Pamour Mine
42
FNV
2012
2011
2010
2.0
824
1,240
1,819
812
1,240
1,819
19
28
41
18
28
41
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2.25% is applicable
CANADIAN
MALARTIC
Location:
Quebec
Operator:
Royalty:
GR: 1.5%
In June 2011, Franco-Nevada purchased a 1.5% gross royalty on part of Osisko Mining Corporations (Osisko) open pit Canadian
Malartic gold project located in Quebec. The royalty covers seven claims on the property including a central portion of the open pit.
Some of the current exploration targets to the east of the pit also fall partially on the royalty claims. Royalty payments are expected
to fluctuate annually based on the location of mining relative to the royalty property.
ail
Asset highlights:
One of Canadas largest gold deposits
Long life asset in Quebec
Exploration targets partially on royalty
ground to the east
Highway 117
The Canadian Malartic project is located in the prolific Abitibi mining district and is one of Canadas largest new gold mines.
Osisko reported that commercial production was achieved on May 19, 2011. In 2011, 200 koz of gold was produced from the property
increasing to 388 koz of gold produced in
2012. Osisko announced that it expects
Canadian
to produce 485-510 koz in 2013, a portion
Royalty Claims
Malartic
of which will come from Franco-Nevadas
Exploration Targets
Royalty
royalty ground.
Area
Open Pit
R
lin
Malartic
(town site)
Highway 117
Open Pit
Barnat
Extension
Norrie
Deeps
Mill
Jeffrey Zone
Canadian Malartic
Property
3.5
Km
ASSETS
2012
2010
0.0
10,120
11,690
1,200
10,710
12,230
1,160
18
21
2
19
22
2
0.2
2011
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 12% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 1.5% is applicable
Franco-Nevada Corporation
43
FNV
PHOENIX
Location:
Ontario
Operator:
Rubicon Minerals
Corporation
Royalty:
NSR: 2%
In August 2011, Franco-Nevada purchased a 2% NSR (subject to a buy-back of 0.5%) on the water claims (which cover the majority
of resources) of the Phoenix gold project in Red Lake, Ontario operated by Rubicon Minerals Corporation (Rubicon). The Phoenix
project is located 10 km from Goldcorps Red Lake mine.
Rubicon released a Preliminary Economic Assessment (PEA) in
August 2011 and continues to look at ways to optimize its findings.
Rubicon is looking at the potential to incorporate more mechanized
equipment which could increase productivity from the F2 gold
system and hence would increase the throughput levels above the
currently envisioned 1,250 tpd. Rubicon is also looking at deepening
the shaft below the 610 m level for improved access to more
potential mining areas. Rubicon continues to target production in
2014.
Fault
Km
RED LAKE
Phoenix
Shaft
Asset highlights:
Production anticipated to begin in 2014
Resource remains open to depth and along strike
Resource update expected in Q2 2013
F2 Gold
System
Phoenix
Project
Effective
1.5% NSR
Rubicon claims
NSR applies to
claims on the lake
Cochenour
Mine
Red Lake
Mine
ASSETS
Campbell
Mine
FNV
2011
2010
477
2,317
477
2,317
7
35
7
35
44
2012
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 1.5% is applicable given
Rubicons right to repurchase 0.5% of the 2.0% NSR
KIRKLAND LAKE
Location:
Ontario
Operator:
Royalty:
Franco-Nevada has various royalties covering over 25 km of the Larder Lake and Main Breaks in the historic Kirkland Lake gold
camp of Ontario. Kirkland Lake Gold Inc. (KLG) operates the Macassa mine and has recently discovered and started mining the
high grade South Mine Complex (SMC). Immediately to the south-west of the SMC, Franco-Nevada has a 20% profit-based royalty
as shown in the inset of the schematic. In addition to the Macassa NPI royalty, Franco-Nevada has a 2-3% NSR royalty on claims that
KLG purchased from Queenston Mining Inc. (Queenston) in July 2012 as well as a 2% NSR royalty on a number of other claims
held by Osisko which acquired Queenston in December 2012.
KLG has followed the SMC onto the 20% NPI royalty
claims and is processing some of this material. The
first profit royalty payments were made to FrancoNevada in late 2011. KLG has reported additional
high grade intercepts on the royalty claims as far as
600 metres west of initial mining. Franco-Nevada
expects that more intermittent mining will be
undertaken on the royalty claims as KLG expands
production. However, no mineral reserve and
resource figures are available for the royalty portion
of the SMC. The mineral resource figures tabulated
below represent the Upper Canada, Anoki-McBean
and Amalgamated Kirkland projects as shown on the
broader schematic. Franco-Nevada believes that the
area will see a renewed focus on exploration following
the agreement between KLG and Queenston to
consolidate the previous joint venture claims. Given
the land position and historic mining in the area,
Franco-Nevada believes that there will be continued
exploration success from both KLG and Osisko.
ASSETS
Asset highlights:
High grade SMC discovery extending onto
Franco-Nevada royalty ground
Exploration drilling indicating additional
potential on royalty ground
KLG expanding operations
Represents potential near term upside for
Franco-Nevada
2012
2010
0.2
518
1,077
518
1,077
10
22
10
22
0.1
2011
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
All reserve and resource estimates are for Queenston. No reserve or resource estimates estimated on Macassa NPI claims
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2.00% is applicable
Franco-Nevada Corporation
45
FNV
NEW
PROSPERITY
Location:
British Columbia
Operator:
Stream:
In May 2010, Franco-Nevada agreed to acquire 22% of the gold produced at the Prosperity (now New Prosperity) copper-gold
project in British Columbia, 100% owned by Taseko Mines Limited (Taseko). Franco-Nevada committed to provide a $350 million
deposit and certain warrant consideration for the construction of Prosperity when the project was fully permitted and financed.
In addition, Franco-Nevada agreed to pay Taseko the lesser of $400 an ounce (subject to an adjustment for inflation) and the
prevailing market price for each ounce of gold delivered.
Taseko planned to develop the Prosperity property into a large-scale, long-life open pit mine. In an October 2007 feasibility study,
Taseko foresaw a project capable of milling 70,000 tpd and producing in the first five years an annual average of 300 koz of gold and
130 million pounds (Mlbs) of copper.
On November 2, 2010, the Federal Minister of the Environment announced that Taseko had not been granted federal authorizations
to proceed as proposed with the Prosperity mine project. On February 21, 2011, Taseko submitted a new project description for the
New Prosperity project with the Government of Canada that
preserves Fish Lake, addressing a key concern identified during
the Federal review process. In early 2013, Taseko submitted to
the Environment Canada review panel (the Panel) additional
information to support and supplement the original New
Prosperity Environmental Impact Statement (New Prosperity
EIS) and is now awaiting the public hearing process. The
Panel is providing a 15-day public comment period prior to
determining if the New Prosperity EIS is sufficient to proceed to
public hearings.
ASSETS
46
FNV
2012
2011
2010
11,052
13,157
11,052
13,157
1,824
2,171
1,848
2,200
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our 22% stream interest and which is factored by 76% (75% in 2011)
GOLDFIELDS
Location:
Saskatchewan
Operator:
Royalty:
NSR: 2%
Franco-Nevada holds a 2% NSR royalty on the 25,685 ha Goldfields project currently being advanced by Brigus Gold Corp. (Brigus).
The property is located in northern Saskatchewan approximately 640 km north of Saskatoon and 450 km southeast of Yellowknife,
Northwest Territories.
The Goldfields project currently consists of two gold deposits: the Box deposit, which is at the feasibility stage, and the Athona
deposit, which has a completed pre-feasibility study. According to Brigus, Box is planned as an open pit mine with expected
production of 100 koz of gold per year over the first seven years. With the addition of mineral reserves from the Athona deposit,
which could be trucked to the Box mill for processing,
Brigus reported that the mine life is expected to extend
to thirteen years.
The Box and Athona deposits are open at depth with
potential for mineral resource additions to either extend
mine life or increase annual production rates. Uranium
City is located nearby which has good infrastructure
including a nearby airport, electric power, water and
sewage systems.
Asset highlights:
Anticipated mine life of 13 years (including both
Box and Athona deposits)
Potential average annual gold production of ~100 koz
per year for the first seven years
Exploration upside with potential mineral resource
additions below both deposits
Athona
Project
Uranium
City
Eldorado
SASKATCHEWAN
Regina
Beaverlodge
Lake
Location Map
Box Mine
Athona
Deposit
Goldfields
Projects
Lake
Athabasca
2% NSR
Km
ASSETS
2012
2011
2010
1,020
1,027
226
1,020
1,027
226
20
21
5
20
21
5
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to royalty interest and estimates a REU rate of 2.00% is applicable
Franco-Nevada Corporation
47
FNV
COURAGEOUS
LAKE
Location:
Northwest Territories
Operator:
Royalty:
NSR: 1.02%
The Courageous Lake deposit is located north of Yellowknife in the Northwest Territories of Canada. Seabridge Gold Inc.
(Seabridge) has been actively advancing the project. In July 2012, Seabridge announced results of its first Preliminary Feasibility
Study (PFS) for its Courageous Lake asset. The study defined the assets first proven and probable reserve estimate of 6.5 Moz
of gold.
The PFS envisions a single open-pit mining operation with a 17,500 tpd mill. This yields a projected 15 year operation with average
estimated annual production of 385 koz of gold per year. Start-up capital costs for the project are estimated at US$1.52 billion.
Seabridge continues to actively explore on the property and successfully discovered another deposit on the property in September
2012 called the Walsh Lake deposit. Seabridge continues to drill at the Walsh Lake deposit with a planned $3.1 million winter
program aimed at generating an initial resource estimate for the deposit.
ASSETS
Asset highlights:
Published PFS in 2012 which included the first mineral reserve estimate of 6.5 Moz
PFS envisions 15 year mine life producing an average 385 koz per year
Active drilling program continues with recent success
48
FNV
2012
2011
2010
6,500
7,974
3,432
7,974
3,432
66
81
35
81
35
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to royalty interest and estimates a REU rate of 1.02% is applicable
DUKETON
Location:
Australia
Operator:
Royalty:
NSR: 2%
Franco-Nevada has a 2% NSR royalty that covers 267,819 ha of the Duketon gold project in Western Australia. The project is
operated by Regis Resources Ltd. (Regis) and includes ten deposits at various stages of development. Franco-Nevadas royalty
covers all known mineral reserves and mineral resources, except for a portion of the Erlistoun Deposit. Regis has estimated that
89% of Erlistoun mineral reserves are covered by Franco-Nevadas royalty.
Moolart Well: This deposit has been in production since August 2010. Moolart Well has a 2.5 million tonnes per annum (Mtpa)
plant and Regis has forecasted average annual production of approximately 90 koz of gold over its total 6 year mine life. Regis
reported that in 2012, production was 106 koz of gold.
Garden Well: This deposit has been in production since September 2012. Garden Well has a 4Mtpa plant, 9 year mine life,
with an average annual gold production of 180 koz, and an expected first year gold production of 220-240 koz.
Rosemont: Regis has announced the commencement
of construction of a 1.5Mtpa crushing, grinding and
pumping operation at the Rosemont project site. This
plant is expected to produce a crushed and milled ore
product which will be piped in a slurry form to the Garden
Well processing facility (distance of 10 km) for leaching
in the Garden Well CIL circuit. Construction costs for the
processing plant and pipeline are expected to be in the
order of A$40-45 million. Gold production at Rosemont is
expected to commence in Q3 2013 and to ramp up to the
full forecast of 80 koz of gold per annum rate thereafter.
Erlistoun: Regis has announced that it was able to
re-optimise the reserve study at Erlistoun to reflect the
shorter haulage distance to Garden Well which is 7 km
away, rather than trucking the ore to Moolart Well which
is 45 km away.
Location Map
Port Hedland
2% NSR
Current Royalty
Tenements
PERTH
Original Royalty
Tenements
Deposits
Moolart Well
Anchor
Dogbolter
Petra
Rosemont
30
Garden Well
Russells Find
King John
No Mistake
Reichelts
Find
Erlistoun
2012
3,003
4,413
3,239
2,870
4,063
2,432
60
88
65
57
81
49
5.3
2011
Km
Kalgoorlie
Kambalda
Norseman
3.1
2010
0.6
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 99% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2.00% is applicable
ASSETS
Asset highlights:
Garden Well, the second mine on the property began
production in Q3 2012
Rosemont, the third mine, expected online in Q3 2013
Duketon
Royalty
Area
Franco-Nevada Corporation
49
FNV
HENTY
Location:
Tasmania
Operator:
Royalty:
Henty is a small underground gold mine that has been in continuous production
since 1996. Unity has reported that the mine has historically produced 1.3 Moz
of gold. Ownership has changed multiple times during this period. Revenues
have increased in recent years due to the increased share of production from
10% royalty ground. Unity reported that in 2012, Henty produced 40 koz of gold.
While Unity has reported that it expects that the production rate will increase
to 45-55 koz of gold per annum in the future, Franco-Nevada expects its revenue
to decline as a higher share of production is sourced from the 1% royalty area.
The largest contributor to mineral resource additions in recent years has been
from the 1% royalty area.
Henty
Henty North
N
Note:
not to scale
Asset highlights:
Expected mine life now extends beyond 5 years
Increased production likely from 1% ground and less from 10% ground
10% GR
Mine
workings
Portal
Exploration
Targets
Process site
ASSETS
1% GR
2012
FNV
2011
2.7
4.5
133
328
10
121
319
7
2
5
4
11
50
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates an average REU rate of 1.6%
(3.5% in 2011) is applicable
2010
2.4
SOUTH
KALGOORLIE
Location:
Australia
Operator:
Royalty:
NSR/GR: 1-1.75%
Franco-Nevada holds a 1.75% NSR royalty for gold and a 1% NSR royalty for other minerals on portions of Alacer Gold Corp.s
(Alacer) South Kalgoorlie operation. South Kalgoorlie is located 15 km south of Kalgoorlie in Western Australia. Franco-Nevadas
royalty interest covers 46,752 ha of the South Kalgoorlie area and includes the northern and central sections of the HBJ deposit and
all of the Mt Marion and Mt Martin deposits as shown in the schematic. The northern and central section of the HBJ deposit lies
within the Location 50 freehold land area which is owned by Franco-Nevada with the mineral rights leased to Alacer.
During 2011, Alacer purchased the Mt Martin deposit from the previous lessee and incorporated it into its South Kalgoorlie
operation. Mt Martin is a small open pit gold deposit located 10 km east of Alacers Jubilee mill. Prior to this acquisition, Alacer had
mined Mt Martin under a sub-lease arrangement that expired in 2010. Franco-Nevada also holds a 1.75% NSR royalty for gold and
a 1% NSR royalty for other minerals on Mt Martin. The Mt Martin deposit lies within the Location 45 freehold land area which
is owned by Franco-Nevada with the mineral rights leased to Alacer.
South Kalgoorlie ore is processed at the 1.2Mtpa Jubilee mill, which also processes Alacers share of ore mined from the Frogs Leg
joint venture located to the northwest. Alacer reported that
South Kalgoorlie total production in 2012 was 94 koz of gold.
Kalgoorlie
South
Kalgoorlie
Royalty
Area
10
Km
Location Map
Port Hedland
Hampton (BHP)
1.75% NSR for gold
1% NSR other minerals
Feysville
PERTH
Kalgoorlie
Kambalda
Norseman
Loc. 50
Loc. 45
Mt Martin
HBJ Pit
Jubilee
Mill
Mt Marion
Loc. 48
Kambalda
2012
540
2,820
2,046
515
2,808
2,047
9
35
25
8
36
26
1.3
2011
ASSETS
0.9
2010
1.0
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 75% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 1.75% is applicable
Franco-Nevada Corporation
51
FNV
BRONZEWING
Location:
Australia
Operator:
Navigator Resources
Limited
Royalty:
NSR: 2%
Franco-Nevada has a 2% NSR royalty on the Bronzewing Gold Project. In January 2012, Franco-Nevada invested A$4.5 million to increase
its royalty rate from 1% to 2%, and to expand the royalty area to include all mineral reserves and mineral resources. In addition,
Franco-Nevadas royalty will apply to all production through the Bronzewing mill, regardless of where the ore originated. Franco-Nevadas
royalty is estimated to cover 56,280 ha of the Bronzewing Gold Project incorporating all known mineral reserves and mineral resources.
The Bronzewing Gold Project is located 80 km northeast of
Leinster in Western Australia and comprises the Bronzewing
and McClure group of mines within a semi-contiguous
landholding. Bronzewing commenced production in 1994
and the project has had several operators. Mining operations
were suspended in February 2008 when the previous
operator went into administration. Navigator Resources
Limited (Navigator) purchased the project assets in
September 2009, and recommenced gold production in
April 2010. Historic mining has been from a number of open
pit and underground deposits. Navigator commenced mining
the Cockburn open pit in 2011. The Cockburn pit is currently
the sole ore source for the 2.5Mtpa Bronzewing mill and
Navigator has stated that it is expected to be the focus of its
mining activity for several years. Navigator reported that
production in 2012 was 67 koz of gold.
Navigator has been in financial difficulty due to the poor
production performance at Bronzewing. On March 28, 2013
administrators were appointed, mining operations ceased
immediately, and milling operations will continue for a short
period to process existing stockpiles after which Bronzewing
will be placed on care and maintenance.
Location Map
Port Hedland
Barwadgee
Wiluna
Leinster
Corboys
PERTH
North
West
Lake Maitland
N
Km
10
Polar Bear
Kalgoorlie
Kambalda
Norseman
Bronzewing
Royalty
Area
Mt Joel
Current Bronzewing
Royalty Tenements
(2% NSR)
Bronzewing
Discovery
Bronzewing
Lotus
Central
Cockburn
Mine
Deposit
Prospect
Success
Parmelia
Challenger
Closed Mine
Yandall
Challenger South
ASSETS
Venus
Asset highlights:
Increased royalty from 1% to 2% in 2012
All disclosed mineral reserves and resources now included
in royalty area
Navigator appointed administrators March 28, 2013 and
mining operations ceased
Royalty survives any change of ownership
Dragon
52
FNV
Katherine Well
Apollo/Vulcan
2012
2011
2.3
0.9
331
674
307
540
738
329
7
13
6
11
15
7
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2% is applicable
2010
0.6
RED OCTOBER
Location:
Australia
Operator:
Limited
Royalty:
NSR: 1.75%
Franco-Nevada has a 1.75% NSR royalty on gold recovered from Saracen Mineral Holdings Limiteds (Saracen) Red October project
located in the Laverton region of Western Australia, 15 km south of Sunrise Dam. Franco-Nevadas royalty interest covers 2,860
ha surrounding the Red October deposit and includes all disclosed gold mineral resources on the project. The royalty applies to
production after 160 koz has been produced. Historic production from open pit mining was 106,779 oz of gold to the end of 2012.
Development of the Red October underground mine commenced in October 2011 and by the end of 2011 mine development had
reached ore. Ore from Red October underground was processed at Saracens Carosue Dam plant throughout 2012. Red October mine
production for Q1 2012 was development ore of 20,849 tonnes at 1.87 g/t. For Q2 through Q4 2012, Red October mine production
was 64,712 tonnes at 7.98g/t with tonnes increasing each quarter. Carosue Dam plant recoveries were 92.0% in H2 2012. Saracen
has announced plans to expand the Carosue Dam plant to 3.2Mtpa. A financing was completed in Q4 2012 and Saracen expects
to award the Stage 1 $25M contract in H1 2013 for
construction to be completed and fully commissioned
in Q1 2014. Once completed, Saracen has forecasted
annual production of 180-190 koz of gold per annum.
Franco-Nevada also has two other royalties in the
Red October district: a 1% NSR on the Butcher Well
deposit after 50 koz of gold are produced and a 1%
NSR on the Crimson Belle and Thin Lizzie deposits.
Two small pits in the Butcher Well area, Sizzler and
Old Camp, were mined in Q3 2012 to provide oxide
feed to the blend at the Carosue Dam plant. Total
production was 145,721 tonnes at 1.89 g/t. Both
pits were completed in the quarter.
Red October
Royalty
Area
Red October
Butcher
Well
Red October
1.75% NSR
Butcher Well
1.00% NSR
10
Km
ASSETS
2012
2011
2010
78
291
202
389
119
1
4
2
5
1
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates an average REU rate of 1.4% is applicable
Franco-Nevada Corporation
53
FNV
COBRE PANAMA
Location:
Panama
Operator:
First Quantum
Minerals Ltd.
Stream:
Franco-Nevada entered into an agreement with Inmet Mining Corporation (Inmet) in August 2012 for a precious metals stream
on the Cobre Panama copper project in Panama, one of the worlds largest copper-gold-silver-molybdenum porphyry deposits
currently being constructed. Under the terms of the Cobre Panama Agreement, Franco-Nevada will provide a $1 billion deposit
to fund a portion of the Cobre Panama project capital costs. In 2013, Inmet was acquired by First Quantum Minerals Ltd. (First
Quantum) which will now advance the development of the Cobre Panama project. Franco-Nevadas deposit will become available
after First Quantums funding reaches $1 billion and funding of the deposit will be pro-rata on a 1:3 ratio with First Quantums
subsequent funding contributions, up to a maximum of $1 billion. The amount of precious metals deliverable under the stream
is indexed to the copper in concentrate produced from the entire project and approximates 86% of the payable precious metals
attributable to First Quantums 80% ownership based on the initial 31 year mine plan contemplated in the Cobre Panama
Engineering Summary Report dated May 6, 2012. Beyond the initial contemplated mine life, the precious metals deliverable
under the stream will be based on a fixed percentage of the precious metals in concentrate.
Subsequent to August 2012, reserves and resources at the project have
been materially increased. Gold reserves increased by 2.2 Moz and
silver reserves increased by 27 Moz which reflect the addition of the
Balboa, Brazo and Botija-Abajo deposits. The Cobre Panama mineral
reserves have been estimated using a $2.25/lb copper price, unchanged
from the 2011 copper price assumption. Assuming a more commonly
used economic pit shell of $3.00/lb copper, Inmet had estimated an
additional 1.3 Moz of gold and 26 Moz of silver
of mineral resources would be contained within pit shell.
ASSETS
Inmet estimated that the mine life has been extended from
31 years to 40 years based on the updated reserve figures (based
on the original price assumption) with continued potential for further
extension. Drilling is underway at the next target area. The foregoing
assumes no material change to the development of the Cobre Panama
project under First Quantums ownership.
Punta Rincn
Panama
City
Pacific Ocean
Cobre Panama
* Property located
approximately
20 km from
Caribbean Sea
N
4 km
Concession
Boundary
Power Transmission
230 kv line
Collina Pit
Balboa
Pit
Valle Grande
Pit
Botija
Pit
Plant
Site
Camp
Brazo
Pit
2012
2011
2010
7,288
9,006
4,396
4,132
4,975
2,254
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management assumes 80% of First Quantums share and 86% of the mineral reserves and resources are subject to our stream interest. Silver has been
converted at a ratio of 53.3:1 and a 62% factor has been applied to obtain equivalent REUs for mineral reserves, a 59% factor has been applied for REUs in the M&I category
and a 50% factor has been applied for REUs in the Inf category
Panama
Canal
River Caimito
Asset highlights:
$1 billion commitment to help finance construction of project
Estimated mine life of 40 years based on reserves
2012 year end mineral reserve and resource update saw reserve
tonnes increased by 30%
FNV
Cobre Panama
Project
Caribbean Sea
54
Caribbean Sea
Port and
Powerplant
PALMAREJO
Location:
Mexico
Operator:
Coeur Mining
Stream:
In January 2009, Franco-Nevada acquired a 50% gold stream on the Palmarejo gold and silver mine located in Chihuahua
Province, Mexico. Palmarejo is owned and operated by Coeur Mining (Coeur). The project includes open pits, an underground mine
and processing facilities. Production began in 2009 and to date has been limited to the Palmarejo deposits. Coeur has reported that
it is also advancing the nearby Guadalupe deposit as a possible underground mine.
Franco-Nevada receives 50% of the gold produced from
the Palmarejo mine in exchange for $400 per ounce
increasing by 1% per year after the fourth anniversary
following closing. The attributable ounces are the greater
of actual production and a minimum amount of 50 koz
per year until payments have been made on 400 koz. By
the end of 2012, Coeur had paid Franco-Nevada just over
200 koz of gold of the 400 koz minimum. In 2013, Coeur
expects to produce between 98-105 koz of gold.
Coeur holds an extensive land position and exploration
is being conducted on a number of targets on measured
and indicated gold resources which, as at December
31, 2012, grew 370% from 205-964 koz compared to
measured and indicated resources as at December 31,
2011. Gains were realized at La Patria and Guadalupe
as well as the immediate Palmarejo mine area. In 2013,
over 95% of a $15.8 million exploration program in
Mexico is earmarked for the Palmarejo district.
Perimeter
of gold stream
property
Palmarejo
Agua Salada
Guadalupe
Area
Palmarejo
Gold Stream
Mine
Palmarejo
Area
Non-stream
ground
La
Patria
Area
Km
ASSETS
2012
2011
2010
66.1
96.0
101.9
665
1,629
457
688
893
615
249
611
171
261
339
234
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our 50% stream interest to which a 75% (76% in 2011) factor has been
applied to obtain equivalent REUs
3 For additional information regarding Palmarejo, please see Franco-Nevadas AIF dated March 19, 2013, a copy of which is available under Franco-Nevadas profile on
SEDAR at www.sedar.com
Franco-Nevada Corporation
55
FNV
MWS
Location:
South Africa
Operator:
Stream:
Mine Waste Solutions (MWS) is a gold and uranium tailings recovery operation located near Stilfontein, approximately
160 km west of Johannesburg, South Africa. The operation processes multiple tailings dumps in the area through three production
modules, the last of which was commissioned in 2011. It also includes a modern tailings storage facility approximately 15 km from
the gold plant.
Franco-Nevada has the right to purchase 25% of the gold produced from the MWS dumps for ongoing payments equal to the lesser
of $400/oz of payable gold (subject to a 1% inflation adjustment starting after 4 years) and the then prevailing market price of gold.
Franco-Nevada acquired its interest in MWS as a result of its acquisition of Gold Wheaton Gold Corp. in March 2011.
AngloGold Ashanti Limited (AngloGold Ashanti)
purchased the operation from First Uranium
Corporation in July 2012. Franco-Nevada is entitled
to receive 25% of all the gold produced through
the MWS plant including treatment of AngloGold
Ashantis tailings until Franco-Nevada has received
312,500 ounces of gold, starting on January 1, 2012.
In 2012, Franco-Nevada received 19.8 koz of gold.
Asset highlights:
AngloGold Ashanti now the owner and operator
Franco-Nevada entitled to 25% of all gold
produced through plant until 312,500 oz received
Slimes Dam
MWS
Dumps MWS 4
Km
Town
MWS 5
River
N
12
MWS 2
Road
KLERKSDORP
Plant Site
STILFONTEIN
Flanagan
H6
NKGE
H5
Hartebeestfontein
Dumps
H1
H2
Elaton
H7
B2
ASSETS
B5
2012
2011
2010
32.3
33.0
2,688
2,628
145
2,688
2,628
145
219
219
238
238
FNV
B4
Tailings
Storage
Facility
Site
56
B3
Buffelsfontein
Dumps
B1
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 292.7 koz gold stream ounces to be delivered and factored by 75% (76% in 2011) to estimate equivalent REUs
TASIAST
Location:
Mauritania
Operator:
Royalty:
NSR: 2%
Franco-Nevada has a 2% NSR royalty on the Tasiast project operated by Kinross Gold Corporation (Kinross). The royalty originally
covered three large permit areas in Mauritania, West Africa of which the most prominent is Tasiast with a currently reported mining
license area of 312 km2 and a total exploration license area of 3,118 km2. Franco-Nevadas royalty became payable once cumulative
production exceeded 600 koz of gold and this threshold was crossed in the third quarter of 2011. In 2012, Tasiast produced 185 koz
of gold.
ALGERIA
TASIAST
MAURITANIA
SENEGAL
MALI
25 km
Tasiast
Main Trend
Plant Site
Asset highlights:
Pre-feasibility study regarding plant expansion expected in
Q2 2013
Recent exploration success outside of current resource
footprint
Tasiast Permit Area
Tasiast License Area, March 2012
ASSETS
Original 2% NSR
Royalty Boundary
Gold Prospects
Trends
Resource/Reserve Target
Plant Site
2012
2010
2.8
7,965
14,722
790
7,457
18,562
1,860
159
294
16
149
371
37
6.4
2011
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2% is applicable
Franco-Nevada Corporation
57
FNV
SUBIKA
Location:
Ghana
Operator:
Newmont Mining
Corporation
Royalty:
NSR: 2%
In late 2009 and early 2010, Franco-Nevada acquired a 2% NSR royalty which covers a 78 km2 area over the Subika deposit at the
southern end of Newmonts Ahafo Mine, Ghana (shown in the schematic). Franco-Nevadas royalty is believed to cover most if not
all of the Subika open pit as well a majority of the Subika underground mineralization identified to date.
The royalty is payable once a total of 1,200 koz of gold has been produced from the royalty property. That hurdle was reached in
Q3 2012. Franco-Nevada estimates that production on royalty ground will increase significantly over the next few years once the
Subika open pit and underground expansion production begins. Newmont reported 561 koz of gold production in 2012 for the
entire Ahafo mine and estimates production between 525-575
koz of gold for 2013.
At the 2013 Indaba Conference, Newmont stated that the Ahafo
mill expansion is planned for startup in 2015 with the potential
to accelerate 150-160 koz of gold production by 2016. Newmont
has indicated that there is significant potential longer-term
underground mining at Subika.
Asset highlights:
Received first royalty payments in 2012
Mill expansion expected online in 2015
Amoma
Subika
Project Area
Ntotoroso
Awonsu
N
Note:
not to scale
Apensu
Plant and Offices
Subika
Kenyase
ASSETS
2% NSR
Royalty Area
58
FNV
2012
2011
2010
3.2
12,080
15,454
3,543
12,080
15,454
3,543
157
201
46
157
201
46
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 65% of the mineral reserves and resources are subject to our royalty interest and estimates an average REU rate of 2% is applicable
CERRO
SAN PEDRO
Location:
Mexico
Operator:
Royalty:
GR: 1.95%
Franco-Nevada has a 1.95% GR royalty that covers most of the known mineralization on the Cerro San Pedro project operated
by New Gold. Cerro San Pedro is located near San Luis Potosi in central Mexico. The project property is a gold-silver, open pit,
run-of-mine heap leach operation and consists of 36 mining and exploration concessions totaling 78 km2 in the historic
Cerro San Pedro mining district.
New Gold reported Cerro San Pedro 2012 production
of 138 koz of gold and 1,939 koz of silver. For 2013,
New Gold expects to produce between 140-150 koz of
gold while silver production is expected to decrease due
to the planned processing of lower silver grades as a result
of mine sequencing. Silver production is expected to
be 1,400-1,600 koz in 2013.
Ultimate
Pit Limit
Note:
not to scale
Asset highlights:
Commercial production commenced May 2007
Current mine production is a nominal 105,000 tpd
of total material
Upside resource potential from the underground
sulphides
ASSETS
2012
760
1,703
850
1,006
1,812
956
15
33
17
20
35
17
1,3
5.5
2011
5.9
2010
3.8
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and M&I resources are subject to our royalty interest, 90% of inferred resources are
subject to our royalty interest and a REU rate of 1.95% is applicable
3 Does not include silver mineral reserves and resources
Franco-Nevada Corporation
59
FNV
EDIKAN
Location:
Ghana
Operator:
Royalty:
NSR: 1.5-3.0%
In 2011, Franco-Nevada acquired an effective 1.5% NSR royalty on Perseus Mining Limiteds (Perseus) Edikan gold mine in
Ghana. Perseus has 650 km of tenements centered on the Ashanti Gold Belt including two mining leases that are the focus of initial
production.
Perseus reported that first gold production was achieved on August 21, 2011 and the mine achieved commercial production
on January 1, 2012. Edikan experienced some startup issues with production falling short of expectations. Having solved the
mechanical issues at the operation, Perseus expects
Esuajah
to be producing gold in line with budgets in 2013.
North
Esuajah
South
Perseus expects to produce between 209-229 koz
Abnabna
Fobinso
of gold in 2013 and is currently updating longerEdikan Gold Mine Mampon
term production plans aimed at increasing net
Mill
Royalty Area
present value of the Edikan property. Perseus had
Fetish
Site
1.5% NSR
previously stated that production was expected to
Chirawewa
increase to 290 koz of gold.
Ataasi
Perseus has a large land tenement package that is
located in close proximity to AngloGold Ashantis
large Obuasi mine. Perseus is expected to conduct
extensive drilling and exploration on the property
in the years ahead as focus moves away from
construction and operating.
Mining License
and Royalty Area
Location Map
Ayanfuri
Mine
Licenses
Exploration License
Deposit
Dadieso
GHANA
Ayanfuri
Gold
Project
Accra
Asset highlights:
Full year of commercial production in 2012
Expects to produce between 209-229 koz in
2013
10
ASSETS
Km
60
FNV
2012
2010
1.5
3,378
5,405
1,713
3,273
5,273
1,758
51
81
26
49
79
26
5.1
2011
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 1.5% is applicable
COOKE 4
Location:
South Africa
Operator:
Limited
Stream:
7% Gold Stream
Cooke 4, which was formerly known as the Western Areas Gold Mine or Ezulwini, is an underground mine located near the town of
Westonaria approximately 40 km west of Johannesburg, South Africa. The mine was re-opened in 2008. Facilities include shafts to
access the Upper Elsberg and the Middle Elsberg reef horizons, ancillary infrastructure and surface gold and uranium plants with
capacity of 200,000 tonnes per month (tpm) and 100,000 tpm respectively.
Franco-Nevada, as a result of its acquisition of Gold Wheaton, has the right to purchase 7% of the gold produced from Cooke 4 mine
ores for an amount equal to the lesser of $400/oz of payable gold (subject to a 1% inflation adjustment starting after 4 years) and the
then prevailing market price of gold. In 2011, Franco-Nevada benefited from a minimum stream delivery commitment of 19.5 koz.
This obligation terminated at the end of 2011.
Gold One International Limited (Gold One) purchased the operation from First Uranium Corporation in 2012. The Cooke 4
operation is contiguous to Gold Ones Cooke Underground and Randfontein Surface operations and allows for the sharing of
services between Cooke 4 and Cooke 1-3 facilities.
Franco-Nevada expects to continue to
receive its 7% gold stream interest on gold
produced from the Cooke 4 mining lease.
Franco-Nevada has been advised that Gold
One is exploring the potential to process
ore from its nearby Cooke operation at the
Cooke 4 mill and while this ore will not be
subject to the Franco-Nevada gold stream,
it could improve the overall economics of
the Cooke 4 operation.
Krugersdorp
Johannesburg
Doornkop
Randfontein
N
0
Cooke 1
Cooke 2
Cooke 3
N12
Tau Tona
(Anglogold)
R501
Cooke 4
Project
Driefontein
(Goldfields)
Blyvooruitzicht
(DRD Gold)
(Gold One)
SV1
Kloof
(Goldfields)
SV2/3
SD1
Kusasalethu
(Harmony)
South Deep
(Goldfields)
ASSETS
Asset highlights:
Asset acquired by Gold One in 2012
Long term potential at depth
10
Km
Carltonville
N1
Mponeng
(Anglogold)
2012
2011
2010
27.3
2,655
25,511
2,655
25,511
139
1,339
141
1,357
3.3
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our 7% stream interest to which a 75% (76% in 2011) factor has been
applied to obtain equivalent REUs
Franco-Nevada Corporation
61
FNV
ITY
Location:
Cte dIvoire
Operator:
Royalty:
NSR: 1-1.5%
(approximately)
Franco-Nevada has an approximate 1% NSR on overall mine production over 13 tonnes produced from the start of 2001 and an
approximate 1.5% NSR on overall mine production over 21 tonnes from that same date. The royalty ceases once production reaches
35 tonnes. In 2011, the mine reached the first royalty production threshold and royalty payments began.
The Ity gold mine is located in western Cte dIvoire about
700 km from Abidjan. Ity consists of several separate open
pits. The project is presently operated by Socit des Mines
d Ity which is owned 45.9% by Compagnie Minire Or
SA (Cominor), a wholly-owned subsidiary of La Mancha
Resources Inc. (La Mancha), 44.1% by the Socit dtat
pour le Dveloppement Minier de la Cte dIvoire and
10% by the Cte dIvoire government. In August 2012,
La Mancha was acquired by a subsidiary of Weather
Investments II S..r.l, a private investment firm in
Egypt.
Ity Project
N
Note:
not to scale
Mining Concession
PE No. 26
Zia Open Pit
Flotuo Open Pit
Mount Ity Open Pit
ASSETS
Exploration Concession
PR No. 61
62
FNV
2012
2011
2010
0.9
0.5
182
645
455
308
662
445
2
8
1
4
9
1
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates that 700Koz are still subject to royalty payments before royalty is capped and estimates an average REU rate of 1.3% is applicable
AI DAI
Location:
Turkey
Operator:
Royalty:
NSR: 2%
Franco-Nevada has a 2% NSR royalty on the Ai Dai property owned by Alamos Gold Inc. (Alamos) and located in the anakkale
Province of northwest Turkey. The NSR covers the Ai Dai area as well as most of the newly discovered Camyurt deposit but does
not cover the Kirazli area.
In June 2012, Alamos released a PFS which envisioned a 7 year mine life for Ai Dai with an average annual production of 143 koz
gold and 271 koz silver. Alamos still requires several permits including environmental impact study approvals but has a stated goal
of pouring first gold from Ai Dai in 2016. In addition to providing the pre-feasibility study, Alamos also presented the first resource
estimate for the Camyurt deposit which included an inferred resource of 640 koz gold grading 0.81g/t assuming a 0.2 g/t cut-off.
Alamos continues to be active on exploration at both
the Ai Dai property as well as the Camyurt deposit.
In 2013, Alamos expects to drill over 18,000 meters
at the two deposits focused on both expansion and
infill drilling.
Kirazli
an
an Coal Mine
Asset highlights:
Response expected from Turkish Government
on EIA submissions
Continued exploration drilling at Camyurt
Etili
Km
Agi Dagi
Property
2% NSR
Babadag & Delidag
future open pits
Major Roads
amyurt
Target
ASSETS
2012
2011
2010
1,510
995
1,299
383
30
19
26
8
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the M&I mineral resources and 95% of the inferred mineral resources are subject to our royalty interest and estimates
a REU rate of 2% is applicable
Franco-Nevada Corporation
63
FNV
PERAMA HILL
Location:
Greece
Operator:
Eldorado Gold
Corporation
Royalty:
NSR: 2%
Franco-Nevada has a 2% NSR royalty on the Perama Hill project currently being advanced by Eldorado Gold Corporation
(Eldorado). The royalty was developed when Normandy Mining Limited sold the property to Frontier Pacific Mining Corporation
which was subsequently acquired by Eldorado in 2008. The Perama Hill gold project is a late-stage development project in the
Thrace region of northeastern Greece and consists of two mining titles covering an area of 1,897.5 ha and two mining exploration
licenses covering an area of 1,762.7 ha.
Eldorado has reported that the Greek government
is currently reviewing its permitting application.
Eldorado received approval for the Preliminary
Environmental Impact Assessment by the
Greek Inter-Ministerial Committee for Strategic
Investments in February 2012 and is now in the
full Environmental Impact Assessment (EIA)
review. Approval of the EIA is expected to be
received in 2013 and upon receipt of all permits
and licenses, Eldorado is expected to make a
construction decision. Eldorado envisions average
gold production at Perama Hill to be 110 koz per
year.
BULGARIA
MACEDONIA
(SKOPJE)
Black Sea
TURKEY
Sea of Marmara
ALBANIA
Perama Hill
GREECE
TURKEY
Aegean Sea
Ionian Sea
Asset highlights:
Construction decision expected later in 2013
Average annual production of 110 koz of gold
planned
Sea of Crete
ASSETS
Mediterranean Sea
64
FNV
2012
2011
2010
975
1,382
554
975
1,382
554
20
28
11
20
28
11
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 2% is applicable
SAN JORGE
Location:
Argentina
Operator:
Royalty:
payments
San Jorge is an advanced stage copper-gold porphyry project located in the Province of
Mendoza, Argentina. The property is located within a 120,000 ha ranch controlled by
Minera San Jorge.
PERU
Arica
Franco-Nevada acquired the San Jorge royalty through its acquisition of Lumina
Royalty Corp. in December 2011. In February 2012, Coro Mining Corp. (Coro)
announced an agreement to amend the terms of the purchase agreement for Minera
San Jorge by which Coro may acquire its 100% interest from Franco-Nevada. Under
the terms of the agreement:
BOLIVIA
Iquique
Antofagasta
Taca
Taca
Coro has agreed to make annual payments of US$1.25 million per year for 10 years
commencing March 31, 2012
Pay a 7.5% NSR on all gold produced from the property
Project would revert to Franco-Nevada if Coro does not make the annual payments
Copiapo
Relincho
In March 2012, Coro provided a PFS for a new development alternative for San Jorge
which would process the known oxide material. This would involve construction of a
heap leach plant outside the Province of Mendoza which currently has a ban on the
use of sulphuric acid required in heap leaching ore. Coro also completed a PEA in April
2008 to process sulphide ore through a typical mill and floatation circuit. With the
ban on the use of sulphuric acid in Mendoza, Coro is currently evaluating all of its
alternative development strategies.
ARGENTINA
La Serena
San Jorge
Vizcachitas
Santiago
CHILE
ASSETS
2012
2011
2010
1.3
1,211
59
1,257
337
7
98
4
7
102
25
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 7.5% is applicable.
In addition, we have converted our annual payment royalty into an REU
Franco-Nevada Corporation
65
FNV
GURUPI
Gurupi
Location:
Brazil
Operator:
Royalty:
NSR: 0-1%
30
Km
Area of Interest
Boundary
(AOI)
Garupi River
Cipoeiro
Deposit
Chega
Tudo
Deposit
Gurupi
Project
1% current Royalty
(sliding scale)
ASSETS
66
FNV
2012
2011
2010
2,328
3,250
165
2,328
2,518
617
23
33
2
23
25
6
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimates a REU rate of 1% is applicable
STILLWATER
Location:
Montana
Operator:
Royalty:
NSR: 5%
Stillwater Mining Company (Stillwater) owns and operates the Stillwater mine and the East Boulder mine in Montana. Production
began in 1986 at the Stillwater mine and in 2002 at the East Boulder mine (together, the Stillwater complex). Franco-Nevada has
a 5% NSR royalty on all commercially recoverable metals produced from 813 of the 995 claims that cover the Stillwater complex.
The amount of the royalty is reduced by permissible onward processing deductions which have averaged 10-12% of revenue over
the last several years.
Based on Franco-Nevadas estimates, Franco-Nevadas NSR royalty currently covers 80-85% of the Stillwater mineral reserves
and mineral resources and 100% of the East Boulder mineral reserves and mineral resources. Historically, because of reliance
on near-shaft stopes in the Stillwater mine, production has been sourced disproportionately from non-Franco royalty ground,
however, in recent years the percentage of Stillwater complex production subject to Franco-Nevadas royalty has increased, averaging
approximately 85% since 2005.
Stillwater has reported 2012 mine production of 514 koz of PGMs which exceeded Stillwaters guidance for production of 500 koz of
PGMs. For 2013, Stillwater anticipates production of approximately 500 koz of PGMs from the Stillwater complex. Projecting beyond
2013, Stillwater expects first production from its Graham Creek project at the East Boulder Mine in late 2014. In addition, Stillwater
is initiating development of the Far West project, a new undeveloped mining area with attractive ore grades situated within the
Stillwater Mine. With Graham Creek and Far West both on line in 2017, Stillwater estimates annual production of PGMs from
the Montana operations should total approximately 575 koz.
East Boulder
Portal Site
o.
Limit of
Claims
River
Rive
ty
un
e
lin
o.
.
Co
sC
as
rk
Pa
tgr
Co
ee
Sw
We
st
Fork
Still
FrancoNevada
Royalty
Source:
Stillwater Mining Co.
(2002 Annual Report)
FrancoNevada
Royalty
Stillwater
Lewis Gu
lch
sC
Co
as
ter
tgr
Stillwater
Mill Site
lwa
er
Riv
lder
ee
er
ould
Camp
Lake
Bou
5% NSR
tB
East
Boulder
Adit
Stil
Stillwater
Complex
Sw
le
Mi
wate
Eas
Asset highlights:
Expected production of
500 koz of PGMs in 2013
Production expected to
increase to 575 koz by 2017
with development of Graham
Creek and Far West
ASSETS
2012
2011
2010
17.3
23.1
13.1
19,979
19,979
19,979
19,979
465
465
443
443
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 94% (91% in 2011) of the mineral reserves and resources are subject to our royalty interest
3 Given more significant smelting and refining charges, FNV management estimates an average REU rate of 4.30% is applicable (assuming 14% for charges) and PGM ounces converted
into REU equivalent assuming $1,600/oz Pt and $725/oz Pd ($1,700/oz Pt and $750/oz Pd in 2011)
Franco-Nevada Corporation
67
FNV
SUDBURY PGM
Location:
Ontario
Operator:
Stream:
Franco-Nevada acquired three precious metals streams in the Sudbury basin of Ontario with its acquisition of Gold Wheaton
on March 14, 2011. Franco-Nevada is entitled to purchase 50% of the precious metals contained in ore produced from the footwall
portions of three separate mines in the Sudbury basin of Ontario for $400 per gold equivalent ounce (subject to an annual 1%
inflation adjustment). At the time of acquisition by Franco-Nevada, the mines were operated by Quadra FNX Mining Ltd.
(Quadra FNX) which was acquired by KGHM in March 2012.
The three mines are the Levack (Morrison deposit), Podolsky and McCreedy West mines. The footwall deposits are primarily rich in
palladium followed by platinum and gold. The PGM revenues are reported separately from the gold revenues. KGHM does not have
processing facilities in Sudbury and sells the ore to third parties for processing. The stream is calculated based on contained precious
metals in the delivered ore rather than payable metals as is common in many royalty and stream arrangements.
Levack (Morrison deposit): The stream agreement applies to the Levack (Morrison deposit) which has been in production since
2007. In late 2011, Quadra FNX and Xstrata Nickel (Xstrata) entered into an agreement which allowed Quadra FNX to utilize the
underground infrastructure of Xstratas Craig Mine. KGHM expects that the use of Xstratas Craig infrastructure will significantly
improve the operational flexibility and provide additional mining and drill access in the deeper high grade portions
of the Morrison deposit.
McCreedy West Mine: The stream agreement applies
to the PM and 700 deposits at the McCreedy West mine
which has been in production since 2003. In Q3 2011,
McCreedy West changed from mining copper and precious
metal-rich ores to mining contact nickel ores.
ASSETS
Podolsky
Levack
(Morrison
Deposit)
McCreedy
West
N
0
Coleman
Strathcona
Mill
SUDBURY
68
FNV
Clarabelle Mill
Smelter
Copper Cliff
Smelter
Creighton
Totten
2012
2011
43.1
40.4
290
480
60
290
480
60
69
115
14
70
117
14
5
Km
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves. Includes mineral reserves
and resources which are the sum for the Levack (Morrison deposit), McCreedy West Mine and Podolsky Mine
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our stream interest
3 FNV management estimates a stream interest for 50% payable on contained metal (not recovered) of all precious metal PGM ounces converted into REU equivalent gold assuming
$1,600/oz Pt, $725/oz Pd and $1,600/oz Au ($1,700/oz Pt, $750/oz Pd and $1,700/oz Au in 2011)
2010
PANDORA
Location:
South Africa
Operator:
Royalty:
NPI: 5%
The Pandora property is a joint venture between Anglo American Platinum Limited (Angloplat), Lonmin Plc (Lonmin),
Bapo-Ba-Mogale Mining Company and Mvelaphanda Resources and forms part of the Bushveld complex approximately 40 km east
of the town of Rustenburg, South Africa.
Franco-Nevada has a 5% NPI royalty on Pandora. The royalty also provides for AMR payments of ZAR 100,000 (approximately
$12,200). Production in 2012 at Pandora was heavily impacted by the labour unrest at Lonmins Marikana operations in H2 2012,
but Pandora has since resumed normal operations. The estimated mineral resource at Pandora increased significantly in 2012
following the completion of a large drilling program conducted in 2011 and a number of smaller drilling programs conducted since
2008. According to Lonmin, measured and indicated mineral resources increased (on a 100% basis) to 24.9 Moz 3PGE+Au as
of September 30, 2012 compared with 8.6 Moz 3PGE+Au as of September 30, 2012.
The mine is an underground operation and
exploits the UG2 reef horizon with access via a
decline from surface. Ore is sold to Lonmin for
further processing. A shaft deepening project
with new deeper production levels is underway
and it is expected that the centre of gravity of
future mining will shift towards ground covered
by Franco-Nevadas 5% NPI royalty when it is
completed. The operators reported production in
2012 to be 62 koz of PGMs.
Merensky Reef
Pandora JV
N
Pretoria
Johannesburg
Pandora
5% NPI
5% NPI
Asset highlights:
World class operator
Significant increase to mineral resource in
2012 following large drilling program in 2011
Current
development
Future
development
rop
utc
2R
o
eef
UG
Pandora JV
mining
to date
E3
Decline
from
surface
Lonmin UG2
mining to date
Km
ASSETS
2012
2,344
24,924
3,491
1,882
7,765
13,176
28
302
42
25
102
174
0.3
2011
0.4
2010
1.0
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 80% of the mineral reserves and resources are subject to our royalty interest
3 FNV management estimates a NPI rate of 5.00% is applicable assuming $1,000/oz total cost. PGM ounces converted into REU equivalent gold assuming $1,600/oz Pt and $725/oz Pd
($1,700/oz Pt and $750/oz Pd in 2011)
Franco-Nevada Corporation
69
FNV
MT KEITH (Ni)
Location:
Australia
Operator:
Royalty:
Franco-Nevada owns both a 0.375% GR royalty and a 0.25% NPI royalty on lands including the Mt Keith nickel operation in
Western Australia, located 460 km north of Kalgoorlie. BHP Billiton is the operator of Mt Keith. The 0.375% GR royalty was acquired
by Franco-Nevada in 2009. Mt Keith is a large, low-grade disseminated nickel sulphide ore body with an open pit mine. Mt Keith has
a mining rate of approximately 40 million bank cubic metres per annum. Concentrator ore throughput is approximately 11.5Mtpa
with 68% recoveries. The production capacity is 35-40,000 tpa of nickel
in concentrate, at approximately 20% nickel grade. Mining commenced in
1993 with the first nickel concentrate produced in 1994. In its June 30, 2012
Annual Report, BHP Billiton reported that Mt Keith has an estimated mine
life of 13 years.
Kingston
Royalty Area
122.5 km2
Jericho
Mt Keith
Kingston
Royalty
Area
Albion Downs
Asset highlights:
Mining rate reduction announced in February 2012
Concentrate production expected to be maintained by processing
stockpiled high talc ore at close to current levels
N
O
10
Kilometres
Mt Keith
Port Hedland
Wiluna
Kalgoorlie
114 km2
ASSETS
Perth
Mt Keith
Royalty Area
Cliffs
Yakabindie
2012
$
1,555
3,501
339
1,665
3,651
339
FNV
6
13
1
7
15
3
2.2
2011
70
3.8
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimate a REU rate of 0.48%.
FNV also applied a NSR smelting charge of 25% (15% in 2011).
2010
3.1
ROSEMONT
(Cu, Mo, Ag)
Location:
Arizona
Operator:
Augusta Resource
Corporation
Royalty:
NSR: 1.5%
Franco-Nevada has a 1.5% NSR royalty on the copper, molybdenum, silver and gold extracted from the majority of claims covering
the Rosemont project. The property is currently in the permitting process.
The project is owned by Augusta Resource Corporation (Augusta) and is located in Pima County, approximately 30 miles southeast
of Tucson, Arizona. The Rosemont property contains three known potentially open-pit mineable copper, molybdenum, silver deposits
(Rosemont, Peach Elgin and Broadtop Butte, respectively) and is situated near a number of large porphyry type producing copper
mines.
Augusta has announced that the proposed Rosemont mine is expected to produce 221 Mlbs of copper, 4.7 Mlbs of molybdenum,
2.4 Moz of silver and approximately 15 koz of gold annually over the anticipated 20+ year mine life. Rosemont has faced a
challenging permitting process and is awaiting approval of its remaining permits. According to Augusta, as of January 31, 2013,
it has received seven of the eight major permits
(To US Hwy I-10
Unpatented
and Tucson)
Mining
required to commence construction. Outstanding
Claims
is the Clean Water Act Section 404 Permit from
Fee Lands
the US Army Corp of Engineers which Augusta
Copper World
expects to receive upon the issuance of the Record
Mine
N
Peach Elgin
0
of Decision on the Plan of Operations from the US
Deposit
Km
Forest Service.
Broadtop
Butte
Deposit
Patented
Mining
Claims
Mine
Workings
Rosemont
Property
Rosemont
Deposit
ay 83
1.5% NSR
Asset highlights:
Construction to start in 2013 assuming all
permits received
Franco-Nevadas royalty covers all metals
including copper, molybdenum, silver and gold
Fee Lands
(To Highway 82)
ASSETS
2012
2011
2010
5,851
7,640
1,110
5,243
6,003
1,728
75
97
14
67
77
22
1,3
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimate a REU rate of 1.5%.
FNV also applied a NSR smelting charge of 15%
3 Does not include silver or molybdenum mineral reserve and resource estimates
Franco-Nevada Corporation
71
FNV
PECULIAR KNOB
(Fe)
Location:
Australia
Operator:
Arrium Limited
Royalty:
Production Payment
Franco-Nevada has a variable dollar per tonne royalty on the Peculiar Knob iron ore deposit located northwest of Prominent Hill in
South Australia. The royalty rate is A$0.5985 multiplied by the percentage of iron ore content in ore shipped and also adjusted for
movements in the iron ore index price from a base date of December 4, 2003. Franco-Nevada estimates this royalty to be comparable
to a 2% gross royalty at current prices. Franco-Nevadas royalty interest covers 251 ha and includes all known mineral reserves and
mineral resources of the Peculiar Knob iron ore deposit.
Development of Peculiar Knob was well advanced in October 2011 when Arrium
Limited (Arrium) purchased the project and Arrium invested A$83 million to
complete the project. On October 10, 2012, Arrium announced its first ore sale from
Peculiar Knob and, on December 24, 2012, Arrium announced first ore shipped
through Whyalla Port. On February 19, 2013, Arrium reported production from
Peculiar Knob for 2012 of 1,130 thousand tonnes (Kt) iron ore mined, 273Kt
processed, and 126Kt shipped. Royalties are paid quarterly on iron ore processed.
Peculiar Knob
Royalty Area
Arrium
Oz Minerals
During 2012, Arrium continued work on the Whyalla Port expansion from 6Mtpa to
13Mtpa. The Whyalla Port expansion is expected to be completed mid-2013 at a total
cost of A$200 million. Arrium expenditures totaled A$154 million to December 31,
2012. Once completed, Arrium intends to increase Peculiar Knob production rate to
3.6Mtpa.
Road
10
Km
Railway
ML 6314
Peculiar
Knob
EL 4283
ASSETS
Prominent
Hill
Revenue to Franco-Nevada ($ million):
72
FNV
2012
2011
2010
0.6
Location:
Nevada
Operator:
Royalty:
The Robinson open pit mining complex is located near Ely, Nevada. Copper, gold and molybdenum are recovered in concentrates
that are transported offsite for smelting. The mine was operated by Quadra FNX until its acquisition by KGHM in March 2012.
Franco-Nevada has three royalty agreements covering the Robinson mine:
N
1 Mile
Ruth
Mill
Facilities
Tripp-Veteran
Pit
Liberty
Pit
Ruth
Pit
Ely
Property Boundary
Robinson
Mine
0.225% NSR
Provisional Gold Royalty
Provisional Copper Royalty
ASSETS
2012
$
$
1,222
4,728
882
1,222
4,728
882
2
9
2
2
9
2
0.9
0.1
$
$
2011
0.8
0.1
$
$
2010
0.7
1.2
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimate a REU rate of 0.225%.
FNV also applied a NSR smelting charge of 15%. No value was assigned to the production royalties
Franco-Nevada Corporation
73
FNV
FALCONDO (Ni)
Location:
Dominican Republic
Operator:
Xstrata Plc
Royalty:
4.1% Dividend
Franco-Nevada has a 4.1% equity interest in Falconbridge Dominicana, C. por A. (Falcondo) that is economically similar to most
of our profit royalties except that payments are received through discretionary dividend distributions. Xstrata Plc is the operator
with an 85.26% ownership. Falcondo is a ferronickel surface mining operation located in the Dominican Republic with operations
dating since 1971. It has an integrated complex of four mines, smelter, crude oil supply system, oil refinery and 200 megawatt power
plant with an annual production capacity of 29Kt of contained nickel. Historically, Falcondos reliance on oil has made it a high
cost swing producer.
In March 2011, production resumed at 50% of capacity using procured electricity which has lowered costs. In March 2013, Xstrata
Plc reported that Falcondo had exceeded expectations by operating 7% above its current nameplate capacity. Xstrata Plc is working
on converting the Falcondo process plant from oil to natural gas to enable the operation to run at capacity and more competitively.
Franco-Nevada expects a resumption of
dividends is not likely before 2014
Ortega
depending on nickel prices.
El Pino
Montaria
Asset highlights:
Fully established infrastructure
Expected mine life of over 20 years
with growth potential
Potential revenues in future years
Pinar Sucio
Falcondo
Concession
Miranda
0
N
Km
100
Peurto
Plata
Caribe
Dominican
Republic
Larga
Taina
La Vega
PLANT
Bonao
Peguera
Guardarraya
Punta
Cana
ASSETS
Haina
Port
74
FNV
2012
2011
2010
2,132
2,472
151
2,132
2,472
151
44
51
3
44
51
3
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimate a NPI rate of 4.1% assuming 50% margin
Location:
Chile
Operator:
Royalty:
NSR: 1.5%
Franco-Nevada has a 1.5% NSR royalty covering the Relincho copper/molybdenum property being advanced by Teck Resources
Limited (Teck). Franco-Nevada acquired the royalty through its acquisition of Lumina Royalty Corp. in December 2011.
The Relincho property is located in the 3rd Region of Chile approximately 50 km northeast of the City of Vallenar and 650 km
north of Santiago at an elevation of 1,500 to 2,000 metres above sea level. Royalty highlights include:
1.5% NSR subject to a maximum price of $6.00/lb copper and threshold price of $1.50/lb copper, inflation adjusted.
No royalty is paid if the average price for the quarter is less than the threshold price.
Royalty commences after 4 years after commercial production.
According to the prefeasibility work completed by Teck, developing the 140,000 tpd Relincho concentrator and associated facilities
has an estimated initial capital cost of $3.9 billion, with possible concentrate production in 2017. Teck has indicated that copper
concentrate tonnage could average 650Kt per year in the first five years of full production, containing 195Kt of copper, and
averaging 600Kt per year (180Kt per year contained copper) over the expected 22 year mine life. Teck has stated that an annual
average 12Kt of molybdenum concentrate (6Kt
per year contained molybdenum) could be
Peru
produced as a by-product over the life of
Arica
the mine.
Teck has reported that the feasibility study is
expected to be complete by the fourth quarter
of 2013. The report was expected in the first
quarter of 2013 but was delayed due to permitting
issues which impacted third-party port and
power facilities that the project expects to use.
Exploration and geotechnical drilling are ongoing
and a new resource and reserve estimate is
expected at the completion of the feasibility study.
Proposed
Mill
Antofagasta
N
0
10
Royalty
Area
Km
Candelaria
Copiapo
Relincho
Royalty Area
Relincho
Location Map
1.5% NSR
La Serena
South
America
Chile
Pit
Marte-Lobo
Cerro Casali
Regalito
El Morro
Pascua-Lama
Andacollo
Argentina
Santiago
ASSETS
Asset highlights:
Feasibility study expected in Q4 2013
Prefeasibility work assumed a 22 year mine life
Bolivia
Iquique
Proposed Pit
Chile
2012
2011
2010
9,826
14,396
4,940
9,826
14,396
4,940
106
156
54
106
156
54
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimate a REU rate of 1.50%.
FNV also applied a NSR smelting charge of 15% and excluded first 4 years of production from estimates
Franco-Nevada Corporation
75
FNV
TACA TACA
(Cu, Au, Mo)
Location:
Argentina
Operator:
Royalty:
NSR: 1.08%
Franco-Nevada has a 1.08% NSR royalty on all copper, gold and molybdenum
produced from Taca Taca, the principal asset of Lumina Copper Corp. (Lumina
Copper). Franco-Nevada acquired the royalty through its acquisition of Lumina
Royalty Corp. in December 2011. Lumina Copper can repurchase the royalty
for an amount calculated based on a feasibility study.
PERU
Arica
N
BOLIVIA
Iquique
Antofagasta
Taca
Taca
Copiapo
During the course of 2012, Lumina Copper provided two resource updates for the
project which saw total indicated mineral resource tonnage increase by ~270%
based on a 0.3% CuEq cut-off. Indicated sulphide mineral resources are now
estimated to contain 21.15 billion pounds of copper, 5.56 Moz of gold
and 615.8 Mlbs of molybdenum. In addition, Lumina Copper estimates that
Taca Taca contains an indicated oxide mineral resource of 2.07 Moz
of gold.
Relincho
ARGENTINA
La Serena
San Jorge
Vizcachitas
Santiago
Asset highlights:
Significant increase to mineral resource estimate released in 2012
ASSETS
CHILE
FNV
2011
2010
21,150
7,550
6,590
8,280
194
69
60
76
76
2012
1 Please refer to the tables on pages 14-18 for a breakout of grade and tonnages by mineral resource category; all M&I categories are inclusive of reserves
2 For REU calculation, FNV management estimates 100% of the mineral reserves and resources are subject to our royalty interest and estimate a REU rate of 1.08%.
FNV also applied a NSR smelting charge of 15%
WEYBURN UNIT
(Oil)
Location:
Saskatchewan
Operator:
Royalty:
/ WI: 2.26%
The Weyburn Unit is located approximately 129 km southeast of Regina, Saskatchewan and encompasses approximately
53,360 gross (net 7,689) acres in which the Mississippian Midale beds are unitized. As of December 31, 2012, Franco-Nevada held
an 11.71% NRI, a 0.44% ORR and a 2.26% WI in the Weyburn Unit. Production commenced from the Midale zone within the unitized
area in 1955 under primary depletion (solution gas expansion). Formation of the Weyburn Unit occurred in 1963 for the purpose of
implementing an inverted nine-spot waterflood pressure maintenance scheme on 80 acre well spacing. Cenovus is the operator.
Current gross production capability of the Weyburn Unit is approximately 30,000 Bbls/d at an average water cut of 88.5%.
Current production is from 627 gross (net 90.4) wells. Produced oil within the Weyburn Unit averages 31 degrees API and
contains approximately 2.2% sulphur.
R15W2
R14W2
R13W2
R12W2
R11W2
R10W2
R9W2
R8W2
T9
T9
T8
T8
Weyburn, SK
T7
T7
T6
T6
N
Note:
not to scale
Weyburn
Unit
T3
T3
R15W2
R14W2
R13W2
R12W2
R11W2
R10W2
R9W2
R8W2
T7
N
Note:
not to scale
T6
Weyburn
Unit
Unitized land
wells
T5
R14W2
R13W2
Revenue to Franco-Nevada ($ million)1:
Production (Mbbl)2 :
1
2
3
4
T4
Unitized land
ASSETS
Asset highlights:
Added two royalty interests to this long life asset
in 2012
CO2 Enhanced Oil Recovery (EOR) project commenced
in 2000
Proved plus probable reserves of 31.5 MMbbl net
to Franco-Nevada under current EOR project
T5
T4
Midale, SK
T5
R12W2
2012
2011
2010
25.0
325
12.3
146
10.4
149
21,162
31,516
3,968
5,801
Franco-Nevada Corporation
77
FNV
MIDALE UNIT
(Oil)
Location:
Saskatchewan
Operator:
Royalty:
The Midale Unit was discovered in 1953 and unitized in 1964 for the purpose of implementing a pressure maintenance scheme
by water injection. The Midale Unit is located in southeast Saskatchewan approximately 40 km southeast of the city of Weyburn
and encompasses 13,760 gross (net 376) acres with 242 gross (net 6.6) producing wells. Franco-Nevada holds a 1.14% gross override
royalty interest and a 1.59% working interest in the Midale Unit. Apache is the operator.
For 2012, revenue received by Franco-Nevada from the Midale Unit was $4.0
million and light/medium oil production net to Franco-Nevada was 132 Boe/d.
Franco-Nevada takes product-in-kind for the working interest portion of this
production and markets it through a third party marketer. As of December 31,
2012, Franco-Nevadas proved reserves for the Midale Unit were 664 Mboe.
The following table sets forth the revenue and production from the Midale Unit
for the periods indicated.
R15W2
R14W2
R13W2
R12W2
R10W2
R9W2
R8W2
T9
T8
T8
Weyburn, SK
T7
T7
T6
T6
N
Note:
not to scale
Midale
Unit
T5
Asset highlights:
CO2 EOR project commenced in 2005
Proved plus probable reserves of 845 Mboe net to Franco-Nevada under
current EOR project
R11W2
T9
Midale, SK
T5
Unitized land
T4
T4
T3
T3
R15W2
R14W2
R13W2
R12W2
R11W2
R10W2
R9W2
R8W2
T7
N
Note:
not to scale
Midale
Unit
T6
Unitized land
ASSETS
wells
T5
R12W2
R11W2
78
FNV
R10W2
2012
2011
4.0
48
4.1
48
664
845
703
891
2010
3.6
52
EDSON
(Gas/NGL)
Location:
Alberta
Operator:
Canadian Natural
Resources Limited
Royalty:
ORR: 15%
The Edson Property is located approximately 209 km west of Edmonton, Alberta and encompasses over 25,920 gross (net 3,888)
acres, of which 4,480 gross (net 672) acres are currently undeveloped. Franco-Nevada has a 15% overriding royalty in this property.
The wells are operated by Canadian Natural Resources Limited (CNRL). For 2012, revenue received by Franco-Nevada from the
Edson Property was $3.9 million. For the same period, the property produced approximately 2.7 MMcf/d of natural gas and 109
Bbls/d of NGLs totalling 564 Boe/d of production net to Franco-Nevada from 137 gross (net 20.5) producing gas wells mainly from
the Upper Cretaceous Cardium Formation, with lesser amounts from the Viking, Gething, Cadomin and Bluesky Formations. As of
December 31, 2012, Franco-Nevadas proved reserves for the Edson Property were 1,081 Mboe.
Gas is processed at the CNRL operated Galloway,
Edson West and Ansell gas plants which extract
natural gas liquids. These plants have a combined
processing capacity of 146 MMcf/d. The main
reserves bearing formation in the Edson Property
area is the Upper Cretaceous Cardium Formation.
The Edson Property lies in an area of northwest
southeast trending fault traces where the faults
ramp up through the Cardium Formation. The
faults dip to the west. The best Cardium wells, both
vertical and especially horizontal, have targeted
the hanging wall of the updip leading edge of
Cardium sand cycles. This potentially helps the
wells take advantage of the better productivity
associated with narrow areas of higher fracture
density induced by the higher stresses related to
deformation along the leading edges of the faults.
The following table sets forth the revenue and
production from the Edson Property for the
periods indicated.
R21W5
R20W5
R19W5
R18W5
T53
T53
T52
T52
Edson
Lands
T51
T51
N
Note:
not to scale
T50
T50
R21W5
R20W5
R19W5
R18W5
ASSETS
Revenue to Franco-Nevada ($ million)1:
Production (Mboe)2 :
2012
2011
2010
3.9
207
7.7
256
12.1
360
1,081
1,470
1,213
1,683
Franco-Nevada Corporation
79
FNV
OTHER PRODUCING
OIL & GAS
ASSETS
Location:
AB / BC / MB / SK
Operator:
Various
Royalty:
ORR/FH: 0.5%-20%
Revenue to Franco-Nevada ($ million) :
Production (Mboe)2 :
2012
2011
2010
8.0
205
10.8
225
9.7
214
1,291
1,632
1,376
1,729
ASSETS
Franco-Nevada does not include in its asset tabulations undeveloped oil & gas interests without reportable resources. There are
160 agreements that cover these interests which include over 100,000 acres of undeveloped mineral title, non-producing lands
within producing areas and approximately 80,000 gross (net 12,000) acres of unproved non-producing lands under lease.
These undeveloped interests are located in Alberta, Saskatchewan and Manitoba.
80
FNV
160
140
120
100
80
60
40
80
ARCTIC GAS
80
Arctic Ocean
Prince Patrick
Island
Beaufort
Sea Banks
Melville
Island
Island
Axel
Heiberg
Island
Ellesmere
Island
Devon Island
Canada Arctic
Operator:
Royalty:
WI: 3-15%
Northwest
Territories
Norman
Wells
Fort Simpson
Victoria
Island
Echo Bay
Great Bear (Port Radium)
Lake
Bathurst Inlet
Qaanaaq (Thule)
Baffin Bay
Da
Pond
Inlet
Aklavik
Location:
Greenland
Elah
Nunavut
Prince
Charles
Island
70
Str
Baffin
Island
Repulse Bay
Baker Lake
vis
ait
Pangnirtung
Iqaluit
Southampton
Island
Franco-Nevada has 428 Bcf of contingent dry natural gas resources, net to Franco-Nevada, in the Drake Point, Hecla, King
Christian and Roche Point gas fields located on and offshore Melville Island, approximately 700 miles northeast of the Mackenzie
Hudson
River Delta in the Arctic Ocean. This represents working interests ranging between 3% and 15% in these
Bay natural gas resources.
The stated resources are an estimate of the recoverable contingent resources, net to Franco-Nevada, as evaluated by GLJ,
independent reservoir engineers, as at December 31, 2012.
The Drake Point field was discovered in 1969 by Panarctic Oils Ltd. Between 1969 and 1986 over 130 wells were drilled at a
cost of greater than C$254 million. This drilling led to the discovery of the Hecla field in 1972 as well as other fields in which
Franco-Nevada has an interest. Resources are located in the Jurassic Borden Island Formation and the gas zones average 100
ft in thickness. These zones have good porosity, high permeability and the gas has no associated liquids or hydrogen sulphide.
Geographic remoteness has prevented their commercialization to date. Suncor has the largest ownership stake in these fields
while several other companies, including Exxon Mobil Corporation and Imperial Oil Limited, own smaller stakes. Although
no operating agreement is currently in place, management of Franco-Nevada believes that Suncor will be the operator of these
fields when and if they are commercialized. There is currently no infrastructure to deliver potential future production from
Franco-Nevadas Arctic natural gas assets to market and currently no plans to develop these resources.
ASSETS
81
FNV
Franco-Nevada Corporation
EXPLORATION ASSETS
Franco-Nevada has interests in 137 exploration stage mineral properties as at March 19, 2013. By
commodity, these include 115 gold exploration assets, 2 PGM exploration assets and 20 other minerals
exploration assets. Exploration assets are speculative and unlikely to generate revenue to Franco-Nevada in
the next five years. While some of these assets are associated with properties that have production, mineral
reserves or mineral resources, Franco-Nevadas exploration stage property interests are estimated to be
outside known mineral resources or require mineral reserves or mineral resource additions to become
economic. A good portion of the properties are inactive and may not see activity again. Some of the properties
are in proximity to producing or advanced projects discussed above. Franco-Nevada has not visited or audited
its full list of exploration assets and has relied on operator reports, public disclosures and title searches to
determine which properties are in good standing. It is possible some properties may have lapsed. Exploration
assets that have been reclassified in the past year as producing or advanced assets are Sterling, in Nevada
(producing asset), Butcher Well, Edna May (Westonia) and Moyagee (Wyooda Thangoo), in W. Australia
(advanced assets).
The following table is a list of exploration assets of Franco-Nevada as at March 19, 2013. Assets that have
had their terms or leases expire and have been written off are not listed. In 2012, no mineral exploration
assets were written off.
Exploration Assets
Asset
Operator
Zeox Corporation
Telegraph Gold Corp.
Project Darwin LLC
Sungro Minerals Inc.
Kenneth Henry, Tom Ver Hoef, Amargosa
Hondo Minerals, Inc.
Elkhorn Goldfields LLC
Elkhorn Goldfields LLC
Beartooth Platinum Corp
Barrick Gold Corporation
Tesoro Gold Company
South Meadows Property Ltd.
EP Minerals, LLC
Barrick Gold Corporation
Barrick Gold Corporation
McEwen Mining Inc.
Glamis Marigold Mining Company
Newmont Mining Corporation
Barium, Inc.
Pacific Spar Corp.
Barrick Gold Corporation
Barrick Gold Corporation
McEwen Mining Inc.
Evolving Gold Corp.
Total E&P USA/H&L Newgulf
Bridge Oil
Pacific Coast Mines, Inc.
Geomark Exploration Ltd.
Unico, Inc.
Keystone Surveys
Pathfinder Mines Corp.
ASSETS
UNITED STATES
82
FNV
Zeolites, Arizona
Castle Mountain, California
Darwin, California
Santa Rosa, California
Shoshone, California
Cripple Creek, Colorado
Corbin Wickes, Montana
Elkhorn, Montana
Forest Products (Tuxedo Mine), Montana
Bald Mountain (White Pine), Nevada
Chukar Claims, Nevada
Curtiss-Wright, Nevada
EaglePicher Diatomite II, Nevada
Getchell, Nevada
Goldstrike (Rodeo Creek), Nevada
Limousine Butte, Nevada
Marigold (SAR), Nevada
Marigold (Trout Creek), Nevada
NMC/NGC Deeds Barium, Nevada
NMC/NGC Deeds Pacific Spar, Nevada
Preble, Nevada
Preble (Pinson Fee), Nevada
Tonkin Springs, Nevada
Malone, New Mexico
Boling Dome, Texas
Hobson Pearson, Texas
Texas Sulfur, Texas
Kings Canyon, Utah
Silver Bell, Utah
Tintic, Utah
Davy Crockett, Wyoming
Exploration Assets
Asset
Operator
CANADA
ASSETS
AUSTRALIA
Blayney, New South Wales
Browns Creek, New South Wales
Chariot Gold/Giants Reef, Northern Territory
Legend, Northern Territory
Reynolds Range, Northern Territory
Rover, Northern Territory
Tennant Creek, Northern Territory
Yambarra, Northern Territory
Crush Creek, Queensland
Mt Carlton, Queensland
Power Station, Queensland
Tate River, Queensland
Top Camp, Queensland
Third Plain, S. Australia
Agnew, W. Australia
Franco-Nevada Corporation
83
FNV
Exploration Assets
Asset
Operator
5% GR (Au)
$1/ton (All Minerals)
3% NPI (All Minerals)
1% GR (Au)
2% NSR (All Minerals)
2% NSR (All Minerals)
1% NSR (Au, Other Minerals)
$0.60/tonne (Au)
1.75% NSR (Au, Ag); 1% NSR (Other Minerals)
1-2% NSR (Cu, Zn, Other Metals)
1% NSR (All Minerals)
2% GP (Au)
$10-20/oz (Au)
4.5% GR (Au)
1% NSR (All Minerals)
2% NPI (All Minerals)
2% NSR (All Minerals)
$0.50-1.00/cubic metre (Au)
3-5% NSR (Au); 2% NSR (Ni)
A$0.60/tonne (A$1.00/t x 60%) (Au)
0.5% of Production (Ni)
3% GR (Au)
One-time payment on production (Au and/or Pt)
1-1.5% GR (Au)
0.5 or 1.5% NSR (All Minerals)
0.68-1% NSR (Au)
$0.35/dry tonne (All Minerals)
1% Gross Revenue (All Minerals)
1.25% GR (Au)
1% NSR (All Minerals)
2% NSR (All Minerals)
AUSTRALIA continued
Agnew-Cox, W. Australia
Breakaway Dam (12 Mile), W. Australia
Carbine North (Chadwins Dam), W. Australia
Day Dawn (Big Bell Gold), W. Australia
Duketon Southwest, W. Australia
Duketon West, W. Australia
Flushing Meadow, W. Australia
Gidgee (Wyooda Thangoo), W. Australia
Hampton, W. Australia
Heather Bore/Mount Clifford, W. Australia
Ironstone Well, W. Australia
Jeffreys Gold, W. Australia
Karonie (Aldiss), W. Australia
Lady Jane, W. Australia
Lake Maitland, W. Australia
Lake Percy, W. Australia
Langfords Find, W. Australia
Marvel Loch (May Queen), W. Australia
Matilda, W. Australia
Matt Dam, W. Australia
Miranda (Ni), W.Australia
Miranda Gold, W. Australia
Munni Munni (Elizabeth Hill), W. Australia
Randwick Gold Hill, W. Australia
Red Lake, W. Australia
Red October District, W. Australia
Sandstone II, W. Australia
Tanami, W. Australia
Western Lease, W. Australia
Windich South, W. Australia
Yerilla, W. Australia
ASSETS
REST OF WORLD
Mara Rosa, Brazil
La Coipa, Chile
Vizcachitas, Chile
Hispaniola, Dominican Republic
Camporo (Cacamuya), Honduras
Charaltyn, Kazakhstan
Magallanes, Mexico
Ayahuanca, Peru
Choreveco, Peru
Dorato, Peru
Nangali, Peru
NPI, Philippines
Demirci, Turkey
Hasandagi-Dikmen, Turkey
Karadag, Turkey
Torul, Turkey
84
FNV
(1) Royalty terms have been simplified for presentation purposes. Different terms may apply to certain portions of properties or by commodity.
Some royalties may have sliding scales tied to commodity price. Others may include participation in sale proceeds of property or gross sales.
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
ADDITIONAL
INFORMATION
Gold
PGM
Other Minerals
Total Mineral
Producing
Advanced
Exploration
36
23
115
3
0
2
7
5
20
46
28
137
137
# (1)
183
28
137
Total
174
32
211
137
348
(1) 160 undeveloped Oil & Gas agreements not included in asset counts.
86
FNV
TOTAL
Producing
Advanced
Exploration
TOTAL
66,993
132,550
1,038,240
1,290,934
36,450
246,809
13,448
89,032
251,512
267,177
0
106,071
184,490
578,923
642,988
716,076
18,914
2,719,689
264,931
800,505
1,932,740
2,274,187
55,364
3,072,569
Total Minerals
2,811,976
727,240
4,861,080
8,400,296
1,542,039
Total Km
40,235
(1)
9,942,335
87
FNV
Franco-Nevada Corporation
88
FNV
GOLD - USA
Goldstrike
Gold Quarry
Marigold
Bald Mountain
Mesquite
GOLD - CANADA
Detour Lake
Musselwhite
Hemlo
Timmins West
Canadian Malartic
Goldfields (Box/Athona)
Courageous Lake
GOLD - AUSTRALIA
Duketon
GOLD - REST OF WORLD
Cobre Panama
Palmarejo
MWS
Tasiast
Subika
Cerro San Pedro
Edikan
Agi Dagi
Perama Hill
Gurupi
0.0
5.0
10.0
15.0
20.0
CORPORATE ORGANIZATION
CHART
Franco-Nevada Corporation
Asset Listing By Legal Entity
(Canada)
100%
100%
Franco-Nevada
Alberta
Corporation
(Alberta)
100%
Franco-Nevada
Canada Holdings
Corp.
(Canada)
99%
1%
100%
Franco-Nevada
GLW Holdings
Corp.
(British Columbia)
7
Franco-Nevada
Mexico
Corporation,
S.A. de C.V.
(Mexico)
100%
3
100%
Franco-Nevada
(Barbados)
Corporation
(Barbados)
9
Franco-Nevada
Alberta
Holdings ULC
(Alberta)
8
100%
FN Subco Inc.
(British Columbia)
100%
Franco-Nevada
LRC Holdings
Corp.
(British Columbia)
Franco-Nevada
Australia Pty
Ltd.
(Australia)
4
100%
100%
Minera Global
Copper Chile S.A.
(Chile)
Franco-Nevada
U.S. Holding Corp.
(Delaware)
5
100%
Franco-Nevada
U.S. Corporation
(Delaware)
2
1 Franco-Nevada
Corporation
Properties in Canada
unless noted
Producing:
Canadian Malartic
Cerro San Pedro - Mexico
Edikan - Ghana
Falcondo - Dominion Republic
Golden Highway
Hemlo
Ity - Cote divoire
Kasese - Uganda
Kirkland Lake (Macassa)
Mouska
Musselwhite
Pandora - South Africa
Timmins West
Franco-Nevada U.S.
Corporation
Properties in the US
unless noted
Franco-Nevada Australia
Pty Ltd.
Properties in Australia
unless noted
Corp.
Properties in Canada
unless noted
Producing:
Admiral Hill
Bronzewing
Duketon
East Location 45
Flying Fox
Henty
Mt Keith
Peculiar Knob
South Kalgoorlie
White Dam
Producing:
Bald Mountain
EaglePicher
Gold Quarry
Goldstrike
Hollister
Marigold
Mesquite
Mt Muro - Indonesia
North Lanut - Indonesia
Robinson
Sterling
Stillwater
5 Franco-Nevada (Barbados)
Corporation
Properties in South Africa
unless noted
Producing:
Cooke 4
MWS
Producing:
Sudbury-Levack (Morrison)
Sudbury-McCreedy West
Sudbury-Podolsky
Advanced:
Cobre Panama - Panama
Franco-Nevada Mexico
Corporation, S.A. de C.V.
Properties in Mexico
unless noted
Producing:
Palmarejo
Franco-Nevada Canada
Holdings Corp.
Properties in Canada
unless noted
Producing:
Detour
Tasiast - Mauritania
Advanced:
Relincho - Chile
San Jorge - Argentina
Taca Taca - Argentina
9 FN Subco Inc.
Properties in Ghana
unless noted
Producing:
Subika
Exploration:
Vizcachitas - Chile
Franco-Nevada Corporation
89
FNV
GLOSSARY
A$ means Australian dollars.
AMR means Advanced Minimum Royalty and is rent paid to the royalty holder
prior to the payment of royalties on production. Once production begins, the AMR
payments are then credited in full against stream of production royalty payments.
Au means the chemical symbol for the element gold.
g represents grams.
Gold Wheaton Agreement means the stream purchase
agreement acquired by Franco-Nevada on March 14, 2011.
GOR means Gross Overriding Royalty and is the right to receive a
royalty based on the gross value of the minerals produced with few, if any,
deductions therefrom. Usually employed for non-metallic projects.
GR means Gross Royalty and is a royalty based on all revenues in cash
or in-kind products received by the operator for the sale of product.
grade means the concentration of each ore metal in a rock sample, usually
given as weight percent. Where extremely low concentrations are involved,
the concentration may be given in grams per tonne (g/t) or oz per ton (oz/t).
Guide 7 means the mining industry guide entitled Description of
Property by Issuers Engaged or to be Engaged in Significant Mining
Operations contained in the Securities Act Industry Guides published by
the United States Securities and Exchange Commission, as amended.
ha means hectares; 10,000 square metres.
heap leaching process is the process of extracting gold and silver
by placing broken ore on an impermeable pad and applying a diluted
cyanide solution that dissolves a portion of the contained gold and
silver, which are then recovered in metallurgical processes.
Indicated Resources has the meaning ascribed to the term
indicated mineral resource pursuant to CIM Definitions.
Infmeans Inferred.
Inferred Resources has the meaning ascribed to the term
inferred mineral resource by CIM Definitions.
JORC means the Australasian Code for Reporting of Mineral Resources
and Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Mineral Council of Australia, as amended.
kg represents kilogram.
km represents kilometre.
km2 represents square kilometre.
koz means thousand ounces.
kt means thousand tonnes.
lb represents pound.
FH means Freehold.
flotation is a process by which mineral particles are induced to become
attached to bubbles and float, in an ore and water slurry, so that the valuable minerals
are concentrated at the slurry surface and separated from the worthless gangue.
90
m means metres.
Mboe/mboe means thousand barrels of oil equivalent.
Mbbls/mbbls means thousand barrels.
Mcf/mcf means thousand cubic feet.
Measured Resources has the meaning ascribed to the term
measured mineral resource pursuant to CIM Definitions.
Mineral Royalties means the royalty interests in precious and base metal
properties and certain equity interests owned by Franco-Nevada.
FNV
91
FNV
Franco-Nevada Corporation
CAUTIONARY STATEMENT ON
FORWARD LOOKING STATEMENTS
This Asset Handbook contains certain forward looking information and forward looking statements within the meaning of applicable
Canadian securities laws and the United States Private Securities Litigation Reform Act 1995, respectively, which may include, but are not
limited to, statements with respect to future events or future performance, managements expectations regarding Franco-Nevadas growth,
results of operations, estimated future revenues, requirements for additional capital, mineral reserve and mineral resource estimates,
production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business
prospects and opportunities. In addition, statements (including data in tables) relating to reserves and resources together with related
REU calculations are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and
no assurance can be given that the estimates will be realized. Such forward looking statements reflect managements current beliefs and
are based on information currently available to management. Often, but not always, forward looking statements can be identified by
the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, predicts, projects, intends,
targets, aims, anticipates or believes or variations (including negative variations) of such words and phrases or may be identified
by statements to the effect that certain actions may, could, should, would, might or will be taken, occur or be achieved. Forward
looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance
or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied
by the forward looking statements. A number of factors could cause actual events or results to differ materially from any forward looking
statement, including, without limitation, fluctuations in the prices of the primary commodities that drive royalty and stream revenue
(gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil & gas), fluctuations in the value of the Canadian and
Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the US dollar, changes in national and
local government legislation, including permitting and licensing regimes and taxation policies, regulations and political or economic
developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or
through which they are held, risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest,
including changes in the ownership and control of such operators, influence of macroeconomic developments, business opportunities that
become available to, or are pursued by Franco-Nevada, reduced access to debt and equity capital, litigation, title, permit or license disputes
related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, whether or not the Company
is determined to have PFIC status, excessive cost escalation as well as development, permitting, infrastructure, operating or technical
difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, rate and timing of production
differences from resource estimates, risks and hazards associated with the business of development and mining on any of the properties
in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and
metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest, and the integration of acquired assets.
The forward looking statements contained in this Asset Handbook are based upon assumptions management believes to be reasonable,
including, without limitation, the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest
by the owners or operators of such properties in a manner consistent with past practice, the accuracy of public statements and disclosures
made by the owners or operators of such underlying properties, no material adverse change in the market price of the commodities that
underlie the asset portfolio, the Companys ongoing income and assets relating to determination of its PFIC status, no adverse development
in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest, accuracy of publicly disclosed
expectations for the development of underlying properties that are not yet in production, integration of acquired assets and the absence of
any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be
no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements and readers are cautioned that forward looking statements are not guarantees of future performance.
Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, readers
should not place undue reliance on forward looking statements due to the inherent uncertainty therein. For additional information with
respect to risks, uncertainties and assumptions, please refer to the Risk Factors section of our AIF, as well as Franco-Nevadas most
recent Managements Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedar.com and contained
in Franco-Nevadas Form 40-F filed with the SEC on www.sec.gov. The forward looking statements herein are made as of the dates set out
in this Asset Handbook only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information,
estimates or opinions, future events or results or otherwise, except as required by applicable law.
92
FNV
93
FNV
Franco-Nevada Corporation
94
FNV
CORPORATE INFORMATION
Directors
Head Office
Share Capital
Pierre Lassonde,
Chairman
Exchange Tower
130 King Street West
Suite 740, P.O. Box 467
Toronto, Canada M5X 1E4
David Harquail,
President & CEO
Derek Evans
Graham Farquharson
Louis Gignac
Randall Oliphant
Hon. David R. Peterson
Executive Management
David Harquail
President & CEO
Sandip Rana
Chief Financial Officer
Paul Brink
Senior Vice President,
Business Development
Geoff Waterman
Chief Operating Officer
Lloyd Hong
Chief Legal Officer &
Corporate Secretary
U.S. Office
1745 Shea Center Drive,
Suite 400
Highlands Ranch, Colorado
USA 80129
Tel: (720) 344-4986
Common shares
outstanding
Reserved for:
2013 Warrants:
2014 Warrants:
2017 Warrants:
Options & other:
Fully diluted:
146,730,310
4,045,600
136,150
8,510,769
2,337,883
161,760,712
Investor Information
Stefan Axell, Manager,
Investor Relations
info@franco-nevada.com
Australia Office
www.franco-nevada.com
Tel:
(416) 306-6328
Toll Free: (877) 401-3833
Tel: 61-8-6263-4425
Barbados Office
(Effective June 1, 2013)
Franco-Nevada (Barbados)
Corporation
Balmoral Hall, Balmoral Gap,
Hastings, Christ Church,
BB14033
Listings
Toronto Stock Exchange
Common shares: FNV
2013 Warrants: FNV.WT.B
1 warrant + C$10.00
= 0.1556 common share
Expiry: July 8, 2013
Transfer Agent
Computershare Investor
Services Inc.
Auditors
PricewaterhouseCoopers LLP
Toronto, Canada
FNV
Franco-Nevada Corporation
www.franco-nevada.com