Franco-Nevada Declares Dividend Increase and Provides Details for Upcoming Release of Year-End 2023 Results

Rhea-AI Summary

Franco-Nevada Corporation has increased its quarterly dividend by 5.88% to US$0.36 per share, marking the 17th consecutive annual increase. The company will report its 2023 year-end results on March 5th and hold a conference call on March 6th. The dividend has been declared in U.S. dollars, and the Canadian dollar equivalent will be determined based on the daily average rate posted by the Bank of Canada on the Record Date. Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets.

Insights

Financial Analyst

The announcement of Franco-Nevada Corporation's dividend increase is a sign of financial health and confidence in the company's cash flow sustainability. A 5.88% increase in the quarterly dividend and its 17th consecutive annual increase is a strong signal to investors that the company is committed to returning value. This move may be perceived positively by the market, potentially leading to a favorable impact on the stock's attractiveness to income-focused investors.

From a valuation perspective, the effective yield of 12.1% for early investors highlights the significant return on investment over time, which could be a compelling narrative for long-term investment considerations. However, the mention of an impairment analysis due to halted production at Cobre Panama introduces an element of uncertainty. Investors will likely scrutinize the year-end financials for insights into the extent of the impairment and its impact on future earnings.

Market Research Analyst

The announcement of the Dividend Reinvestment Plan (DRIP) with a 1% discount on treasury acquisitions indicates Franco-Nevada's strategy to encourage shareholder loyalty and long-term investment. By allowing shareholders to reinvest their dividends into additional shares, the company is effectively promoting capital inflow and potentially stabilizing its share price. It's important to note that changes in the DRIP discount rate or the method of acquiring shares could influence investor participation levels and the program's overall success.

Moreover, the company's position as a leading gold-focused royalty and streaming company, combined with its debt-free status and diversified portfolio, positions it favorably in the market. The emphasis on limiting exposure to cost inflation is particularly relevant given the current economic climate, where inflationary pressures are a significant concern for many industries.

Legal Expert

The press release includes a statement that it is not an offer to sell or a solicitation of an offer for securities, which is a standard legal disclaimer to comply with securities regulations. The mention of a registration statement filed with the U.S. Securities and Exchange Commission for the DRIP indicates adherence to regulatory requirements for such financial instruments. Compliance with these regulations is critical to maintain investor confidence and avoid legal ramifications.

For international shareholders interested in the DRIP, the need to satisfy certain conditions to participate underscores the legal complexities of offering securities across jurisdictions. Investors should be aware that these conditions may affect their ability to engage with the DRIP and, consequently, their investment strategy.

(in U.S. dollars unless otherwise stated)

TORONTO, Jan. 30, 2024 /PRNewswire/ - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") is pleased to announce that its Board of Directors has raised its quarterly dividend and declared a quarterly dividend of US$0.36 per share payable on March 28, 2024 to shareholders of record on March 14, 2024 (the "Record Date"). The increased dividend will be effective for the full 2024 fiscal year. This is a 5.88% increase from the previous US$0.34 per share quarterly dividend and marks the 17th consecutive annual increase for Franco-Nevada shareholders. Canadian investors in Franco-Nevada's IPO in December 2007 are now receiving an effective 12.1% yield on their cost base.

Cobre Panama Update

Cobre Panama currently remains in a phase of preservation and safe maintenance with production halted. As a result of the current suspension of operations, the Company is conducting an impairment analysis, the details of which will be disclosed in its 2023 year-end financial statements.

Details for Upcoming Release of 2023 Year-End Results

Franco-Nevada will report its 2023 year-end results as follows:

2023 Results Release:	March 5th after market close
Conference Call and Webcast:	March 6th 10:00 am ET
Dial‑in Numbers:	Toll‑Free: 1‑888‑390‑0546 International: 416‑764‑8688
Conference Call URL (This allows participants to join the conference call by phone without operator assistance. Participants will receive an automated call back after entering their name and phone number):	https://bit.ly/47FxaLi
Webcast:	www.franco‑nevada.com
Replay (available until March 13th):	Toll‑Free: 1‑888‑390‑0541 International: 416‑764‑8677 Passcode: 380736 #

Details for Dividend Declaration and Dividend Reinvestment Plan

The dividend has been declared in U.S. dollars and the Canadian dollar equivalent will be determined based on the daily average rate posted by the Bank of Canada on the Record Date. Under Canadian tax legislation, Canadian resident individuals who receive "eligible dividends" are entitled to an enhanced gross-up and dividend tax credit on such dividends.

The Company has a Dividend Reinvestment Plan (the "DRIP") which allows shareholders of Franco-Nevada to reinvest dividends to purchase additional common shares at the Average Market Price, as defined in the DRIP, subject to a discount from the Average Market Price in the case of treasury acquisitions. The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price. The Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. Participation in the DRIP is optional. The DRIP and enrollment forms are available on the Company's website at www.franco-nevada.com. Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent's self-service web portal at www.investorcentre.com/franco-nevada. Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP, subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the Company to determine whether they satisfy the necessary conditions to participate in the DRIP.

This press release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov.

Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.

For more information, please visit our website at www.franco-nevada.com or contact:

Sandip Rana

Chief Financial Officer

416-306-6303

info@franco-nevada.com

Forward-Looking Statements

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to the preservation and safe maintenance program at the Cobre Panama mine and any potential impairment of the carrying value of the Cobre Panama streams by Franco-Nevada. The outcome of these matters, the failure to restart production from the mine, the inability to achieve agreement on appropriate mining concession arrangements, further steps in respect thereof by the Panamanian government and courts, and the outcome of any potential legal proceedings by First Quantum Minerals Ltd. and Franco-Nevada could have a material adverse impact on the revenue Franco-Nevada derives from its streaming arrangements relating to Cobre Panama and on Franco-Nevada's results of operations and financial condition. There can be no assurance that such forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. Accordingly, investors 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 relating to Franco-Nevada's business and assets, please refer to Franco-Nevada's most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date of this press release 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.

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SOURCE Franco-Nevada Corporation

FAQ

What is the new quarterly dividend for Franco-Nevada Corporation?

The new quarterly dividend for Franco-Nevada Corporation is US$0.36 per share.

When will Franco-Nevada Corporation report its 2023 year-end results?

Franco-Nevada Corporation will report its 2023 year-end results on March 5th.

How will the Canadian dollar equivalent of the dividend be determined?

The Canadian dollar equivalent of the dividend will be determined based on the daily average rate posted by the Bank of Canada on the Record Date.

What is Franco-Nevada Corporation's ticker symbol?

Franco-Nevada Corporation's ticker symbol is FNV.

What is the business model of Franco-Nevada Corporation?

Franco-Nevada Corporation's business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation.