TORONTO, March 19, 2013 /PRNewswire/ - Franco-Nevada Corporation (TSX: FNV)
(NYSE: FNV) today reported its financial results for the three and
twelve months ended December 31, 2012. Financial results are prepared
in accordance with International Financial Reporting Standards ("IFRS")
and are expressed in U.S. dollars (unless otherwise noted). The
Company's Consolidated Annual Financial Statements and Management's
Discussion and Analysis can be found on Franco-Nevada's website at www.franco-nevada.com.
Selected Financial Information
(in millions of U.S. dollars, except per share amounts)
Q4
2012
Q4
2011
2012
2011
Revenue
$
114.1
$
118.5
$
427.0
$
411.2
Operating income (loss)
(21.8)
(107.7)
138.4
28.0
Net income (loss)
(33.1)
(105.4)
102.6
(6.8)
Basic earnings (loss) per share
$
(0.23)
$
(0.80)
$
0.72
$
(0.05)
Dividends paid per share
$
0.15
$
0.12
$
0.54
$
0.32
Adjusted EBITDA(1)
$
93.7
$
94.2
$
347.8
$
327.3
Adjusted EBITDA(1) per share
$
0.65
$
0.72
$
2.43
$
2.61
Adjusted Net Income(2)
$
47.0
$
40.8
$
171.0
$
136.0
Adjusted Net Income(2) per share
$
0.32
$
0.31
$
1.19
$
1.08
As at December 31,
2012
2011
Cash and cash equivalents
$
631.7
$
794.1
Working capital
822.4
851.1
Total Assets
3,243.9
2,901.0
Total Shareholders' Equity
$
3,149.1
$
2,834.2
(1)
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 investments, depletion and depreciation and impairment
charges related to royalties, streams, working interests and
investments. See Non-IFRS Measures at the end of this press release.
(2)
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, and the impact
of taxes on all these items. See Non-IFRS Measures at the end of this
press release.
This press release contains forward-looking statements. Reference
should be made to the Cautionary Statement on Forward Looking
Information at the end of this press release.
David Harquail, President and CEO, commented:
"This is our fifth full-year set of financial results since
Franco-Nevada was reborn as a public company with our IPO in late
2007. The last five years have proven that our business model, with
its focus on gold royalties and streams, can create tremendous
shareholder value. We experienced our best year in 2012 with record
Revenues and Adjusted Net Income. Our Cobre Panama and Weyburn
transactions in 2012 have added cornerstone assets with expected lives
of 40 or more years. We recorded an impairment on our Arctic Gas
resource assets to reflect the current markets.
We expect our existing portfolio will continue to generate a growing
number of ounces over the next five years. We continue to see good
opportunities to further supplement this growth with further
investments and, with our recently expanded credit facility, we are
well-positioned with approximately $1.4 billion of capital available
for further investments."
Portfolio Highlights & Outlook
Details of the individual revenue contributions by asset and commodity
can be found in our Management's Discussion and Analysis, Annual
Information Form and Form 40-F available on our web site.
2012 Portfolio Highlights
-
Gold - U.S.: Revenue increased to $101.7 million in 2012, compared to US$87.4 million
in 2011, primarily due to higher net profits at Goldstrike and higher
production at Bald Mountain.
-
Gold - Canada: Revenue increased to $46.0 million in 2012, compared to US$32.4 million
in 2011, primarily due to higher production from our Golden Highway
assets and higher contributions from Hemlo where our net profit
interest ("NPI") reached payout supplementing a revenue royalty.
-
Gold - Australia: Continued growth at our Australian assets was primarily due to the
commencement of production at the Garden Well mine in addition to the
original Moolart Well mine, both covered by our Duketon royalty, and an
addition to our royalty over the Bronzewing gold project in early 2012.
-
Gold - Rest of World: Revenue decreased to $161.3 million in 2012, compared to US$177.5
million in 2011, primarily due to the completion of minimum payment
obligations by Cooke 4 (Ezulwini) in 2011 and production interruptions
in South Africa which were resolved in November. Palmarejo had slightly
lower production but remained the largest revenue generator before the
deduction for the cost of stream ounces. Higher royalty revenues were
realized from Tasiast, Edikan (a recent acquisition) and Subika where
operations surpassed an aggregate production threshold in 2012.
-
PGM Assets: Revenue decreased to $60.7 million in 2012, compared to $63.9 million,
due to lower average PGM prices and lower production from Stillwater
partially offset by higher production from the Sudbury assets.
-
Oil & Gas Assets: Revenue increased to $40.9 million in 2012, compared to $34.9 million
in 2011, primarily due to additional investments at the Weyburn Unit
but revenue growth was muted by a higher price discount for Canadian
oil. 2012 oil & gas revenue was generated 95% from oil and 5% from
gas.
2013 Guidance
-
Guidance - The Corporation is expecting to receive a total of 215,000 to 235,000
gold equivalent ounces from its mineral assets and $55-$65 million in
revenue from its oil & gas assets. This compares to approximately
230,000 gold equivalent ounces received from mineral assets and $40.9
million in revenue recorded from oil & gas assets in 2012. Of the
215,000 to 235,000 gold equivalent ounces, the Corporation expects to
receive 100,000 to 110,000 gold equivalent ounces in 2013 under its
various stream agreements compared with 114,000 ounces in 2012.Gold equivalent royalty and stream ounces are estimated for gross
ounces, and in the case of stream ounces, before the payment of
approximately $400 per gold equivalent ounce paid by the Corporation.
Platinum and palladium metals have been converted to gold equivalent
ounces using commodity prices of $1,600/oz Au, $1,600/oz Pt and $725/oz
Pd. The WTI oil price is assumed to average $90 per barrel with
similar price discounts for Canadian oil as experienced in 2012. 2013
guidance assumes the continued steady state of operations from its
assets and is also based on the assumptions set out below.
-
Gold - U.S.: Goldstrike royalty ounces for 2013 are expected to be lower than
2012. Barrick announced that construction activities surrounding its
thiosulfate project are expected to reduce capacity at the autoclave
facility. As well, Barrick announced higher expected capital
expenditures during 2013. These developments will impact our NSR
royalty ounces and NPI royalty ounces, respectively but the investment
is expected to accelerate production from stockpiles and benefit future
royalty revenues. At Gold Quarry, the Company expects higher royalty
ounces for 2013 than in prior years based on stockpiled ore. Royalty
ounces from Bald Mountain, Hollister and Mesquite are expected to be
lower in 2013 due to mining sequencing at Bald Mountain, creditor
protection activities at Hollister and mining on ground that attracts a
lower royalty at Mesquite.
-
Gold - Canada: Detour Lake poured its first gold in February 2013. Detour Gold
Corporation ("Detour") announced that it expects to produce 350,000 to
400,000 ounces of gold in 2013 from Detour Lake on which the
Corporation has a 2% NSR. At Hemlo, the Corporation's NPI on the down
dip extension of the mine is expected to benefit from a full year of
production as initial capital costs have been recovered. At Timmins
West, where the Corporation has a 2.25% NSR, Lake Shore announced that
it expects to produce 120,000-135,000 ounces of gold in 2013 and reach
its full production rate of 140,000 to 160,000 ounces by the end of
2013.
-
Gold - Australia: Duketon gold production is expected to increase with Moolart Well
being supplemented by a full year of Garden Well production. The
operator, Regis Resources Ltd. ("Regis"), has announced plans to add a
third operation, Rosemont, later in 2013.
-
Gold - Rest of World: Palmarejo is expected to remain a significant revenue contributor and
Coeur d'Alene Mines Corporation ("Coeur") has forecasted 2013 gold
production of 98,000 to 105,000 ounces. The Corporation's 50% gold
stream over Palmarejo includes an annual minimum provision of 50,000
ounces, payable monthly. At Mine Waste Solutions ("MWS"), the
Corporation expects increased stream ounces in 2013 compared to 2012
reflecting fewer expected interruptions under the new ownership of
AngloGold Ashanti Limited ("AngloGold Ashanti"). At Tasiast, where the
Corporation has a 2% NSR, Kinross Gold Corporation ("Kinross") has
announced that it expects a reduction in its overall production for
2013 citing lower grades. Kinross' updated pre-feasibility study for a
mill expansion is expected in 2013. At Subika, royalty ounces are
expected to be higher in 2013 as a full year of production will be
earned as Subika surpassed aggregate production hurdles in Q3 2012. At
Edikan, where the Corporation has an effective 1.5% NSR, Perseus Mining
Limited has announced 2013 gold production guidance of 209,000 to
229,000 ounces. At Cooke 4 (Ezulwini) the operation resumed production
in November 2012 and fewer production interruptions are expected in
2013.
-
PGMs: Sudbury stream ounces are expected to decline in 2013 as the
operator, KGHM International Ltd. ("KGHM") confirmed its intention to
put Podolsky on care and maintenance. In addition, KGHM is expected to
continue to focus on mining nickel ore at McCreedy which does not
generate payable PGMs attributable to the Corporation. Development is
ongoing at Morrison and production is expected to increase in 2013. At
Stillwater, 2013 royalty ounces are expected to be consistent with
historical levels.
-
Other minerals: At the Peculiar Knob iron-ore project in South Australia, production
has begun and the Corporation expects to receive full-year revenue in
2013.
-
Oil & Gas: The Corporation expects 2013 revenue to be higher at $55 million to
$65 million. This reflects the additional investments in the Weyburn
Unit in 2012 offset partly by a price discount for Canadian oil.
-
Investments: The Corporation expects to fund approximately $270.0 million in 2013
in connection with its precious metals stream agreement on Cobre
Panama. The Corporation has assumed no material changes to the timing
or development of the project should First Quantum Minerals Ltd.'s
("First Quantum") bid for Inmet Mining Corporation ("Inmet") be
successful.
Five Year Outlook (2017)
Our five year outlook is based upon the respective operators' public
projections for each asset. Using the same commodity price assumptions
as for 2013 and assuming no other acquisitions, the Company expects its
existing portfolio to generate by 2017 between 300,000 to 325,000 gold
equivalent ounces and $70 to $80 million in oil & gas revenues. This
outlook is also based on the following assumptions:
-
Detour Gold: The outlook assumes the successful commissioning of the new operation
to produce on average 657,000 ounces per year over the life of mine. No
further expansion has been assumed within the next five years.
-
Tasiast: The outlook assumes no material expansion within the five year period as
expansion plans have not been publicly disclosed. Production levels in
2017 are assumed to be comparable to current production levels.
-
Cobre Panama: The outlook assumes a successful commissioning of the Cobre Panama
project with a full year of production in 2017 as projected by Inmet. In the event that First Quantum's bid for Inmet is successful, the
outlook assumes no material changes to the timing or development of the
project. No further expansions are incorporated in this period. In
December 2012, Inmet announced updated reserve and resource estimates
for its Cobre Panama project as well as an extension to the estimated
mine life. The expected mine life of the Cobre Panama project based on
a revised mine plan has been extended to 40 years from 31 years.
-
New mines: The outlook assumes new mines will be contributing to the portfolio at
levels close to the current operator's projections at Rosemont (owned by Augusta Resource), Phoenix (owned by Rubicon Minerals), Agi Dagi (owned by Alamos Gold), Perama Hill (owned by Eldorado Gold), Duketon (comprising Rosemont and Erlistoun and owned by Regis Resources) and Peculiar Knob (owned by Arrium Limited). Increased production is expected by 2017 at Subika (operated by Newmont Mining) and Holt (operated by St Andrews). Lower production is expected by 2017 at Palmarejo and Goldstrike. New Prosperity has not been included in the guidance to 2017 pending progress on
permitting.
-
Oil & gas: The outlook assumes the ongoing enhanced oil recovery capital program at
Weyburn and Canadian oil price differentials returning to historic
norms.
-
Beyond 2017: The Company expects to incorporate expansions at its Tasiast, Detour and
Cobre Panama assets in its future guidance. Receipt of permits at New
Prosperity would provide a material added contribution.
Financial Results
Revenue
-
Revenue was $114.1 million for the fourth quarter of 2012 compared with
$118.5 million for the fourth quarter of 2011. The decrease in revenue
for the quarter was partly attributable to lower production at
Palmarejo and the completion of minimum stream payments from Cooke 4
(Ezulwini) in 2011. These decreases were partially offset by higher
revenue from Goldstrike which contributed $19.4 million to revenue in
Q4 2012.
-
Revenue for 2012 was $427.0 million compared with $411.2 million for
2011, an increase of 4%. Growth in revenue for the year was driven by
higher production at Goldstrike, higher average commodity prices and
recent acquisitions.
-
Revenue for the fourth quarter was earned 87% from precious metal assets
(74% gold; 13% PGMs), 11% from oil & gas (10% oil; 1% gas) and 2% from
other minerals. For 2012, precious metals revenue represented 89% (75%
gold; 14% PGMs), oil & gas 10% (9% oil; 1% gas) and 1% for other
minerals. For 2012, geographically, 83% of revenue came from North
America (28% US, 31% Canada and 24% Mexico), 12% from Africa, 4% from
Australia and 1% from other jurisdictions. The components of revenue
were earned as follows: 42% revenue-based, 45% streams, 9%
profit-based, 3% working interests and 1% other.
Costs and expenses
-
Costs of sales include the costs of gold equivalent ounces purchased
under stream agreements, oil & gas production taxes, operating costs on
oil & gas working interests and net proceeds taxes on mineral
interests. Costs of sales for the fourth quarter of 2012 were $13.7
million which included $10.3 million for the cost of stream ounces.
Depletion and depreciation was $32.8 million compared with $33.2
million recorded in the fourth quarter of 2011. Depletion was lower due
to lower depletion on Cooke 4 (Ezulwini), Gold Quarry and Palmarejo,
partially offset by higher depletion on oil & gas assets, Goldstrike
and the Sudbury assets.
-
For the year ended December 31, 2012, costs of sales were $59.2 million
compared to $63.3 million for the year ended December 31, 2011. The
decrease was attributable in part to the lower volume of stream ounces
received during 2012 from our international stream properties. The
decrease was partially offset by higher oil & gas production taxes
attributable to the acquisition of Weyburn Unit working interest and
higher Nevada net proceeds taxes as higher revenue was generated from
our Nevada royalties.
-
During the fourth quarter, the Company recorded impairment charges of
$74.1 million on its Arctic Gas assets. Given the nature of the
exploration assets and development profile, management determined that
indications of impairment were evident and completed an impairment
analysis. In addition, the Company recorded $8.6 million in impairment
charges related to certain long-term investments held which experienced
a significant or prolonged decline in their value. Please refer to the Company's annual consolidated financial statements
and management's discussion and analysis for a more detailed
discussion.
-
Income tax expense was $10.9 million and $52.3 million for the three and
twelve months ended December 31, 2012, respectively.
Net Income
-
Net loss for the fourth quarter of 2012 was $33.1 million, or $0.23 per
share, and Adjusted Net Income(2) for the fourth quarter was $47.0 million, or $0.32 per share. For the
year ended December 31, 2012, net income was $102.6 million, or $0.72
per share, compared with a net loss of $6.8 million, or $0.05 per
share, for 2011. Adjusted Net Income(2) for the year ended December 31, 2012 was $171.0 million, or $1.19 per
share, compared with $136.0 million, or $1.08 per share, for the year
ended December 31, 2011.
-
Adjusted EBITDA(1) was $93.7 million, or $0.65 per share, and $347.8 million, or $2.43 per
share, respectively, for the three and twelve months ended December 31,
2012. Our definitions of these non-IFRS financial measures and the
reconciliations to IFRS measures can be found in the Company's Annual
Management's Discussion and Analysis and at the end of this press
release.
Statement of Financial Position
-
As at December 31, 2012, Franco-Nevada had a strong financial position
with cash, cash equivalents and short-term investments of $779.9
million, working capital of $822.4 million, investments valued at
$108.4 million, of which $73.9 million are held in publicly traded
equity investments and no debt or hedges. On January 23, 2013, the
Company replaced its $175 million credit facility with a four year $500
million unsecured revolving credit facility which is currently undrawn.
Dividend Declaration
-
Today, the Board of Directors of Franco-Nevada declared the monthly
dividend of $0.06 per share for each of April, May and June 2013. The
April dividend will be paid on April 25, 2013 to shareholders of record
on April 11, 2013, the May dividend will be paid on May 30, 2013 to
shareholders of record on May 16, 2013 and the June dividend will be
paid on June 27, 2013 to shareholders of record on June 13, 2013.
-
The Canadian dollar equivalent is determined based on the noon rate
posted by the Bank of Canada on March 19, 2013. 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.
Shareholder Information and Investor Day
The complete Annual Consolidated Financial Statements and Management's
Discussion and Analysis will be available on Franco-Nevada's website at
www.franco-nevada.com and on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
An Investor Day and conference call is planned for tomorrow, Wednesday,
March 20, 2013, at 10:00 a.m. Eastern Time to discuss the Q4 2012
results as well as provide further background and details on the
Company's asset portfolio and outlook.
Interested investors are invited to participate as follows:
-
In Person: St Andrew's Club & Conference Centre, 27th floor, 150 King Street West, Toronto. Participants are asked to RSVP
via info@franco-nevada.com.
-
Via Conference Call: Local: 647-427-7450; Toll-Free: 1-888-231-8191; Title: Franco-Nevada
Investor Day.
-
Conference Call Replay: A recording will be available until March 27, 2013 at the following
numbers:Local: 416-849-0833; Toll-Free: 1-855-859-2056; Pass code: 18181024.
- Webcast: A live audio webcast will be accessible at www.franco-nevada.com.
-
Slides: A presentation to accompany the conference call will be available on
the Company's website prior to the call.
Corporate Summary
Franco-Nevada is a gold focused royalty and stream company. The Company
has a diversified portfolio of cash-flow producing assets and interests
in some of the largest new gold development and exploration projects in
the world. Its business model benefits from rising commodity prices
and new discoveries while limiting exposure to operating and capital
cost inflation. Franco-Nevada has substantial cash with no debt and is
generating cash flow from its portfolio that is being used to expand
its portfolio and pay monthly dividends. Franco-Nevada's common shares
trade under the symbol FNV on both the Toronto and New York stock
exchanges.
FORWARD LOOKING STATEMENTS
Certain information contained in 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 1995, respectively, which may include, but are not limited to, statements
with respect to future events or future performance, management's
expectations regarding Franco-Nevada's 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 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 management's 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 press release 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
Company's 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 Franco-Nevada's Annual Information Form, as
well as Franco-Nevada's most recent Management's Discussion and
Analysis filed with the Canadian securities regulatory authorities on
SEDAR at www.sedar.com and Franco-Nevada's most recent Form 40-F filed with the U.S.
Securities and Exchange Commission on EDGAR at 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.
NON-IFRS MEASURES: Adjusted Net Income and Adjusted EBITDA are intended to provide
additional information only and do not have any standardized meaning
prescribed under IFRS and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures are not necessarily indicative of operating
profit or cash flow from operations as determined under IFRS. Other
companies may calculate these measures differently. For a
reconciliation of these measures to various IFRS measures, please see
below or the Company's current MD&A disclosure found on the Company's
website and on SEDAR and on EDGAR.
Non-IFRS Measures Reconciliation
Three months ended
December 31,
Year ended
December 31,
(in millions except per share amounts)
2012
2011
2012
2011
Net Income (Loss)
$
(33.1)
$
(105.4)
$
102.6
$
(6.8)
Income tax expense
10.9
4.5
52.3
45.9
Finance costs
0.2
0.2
1.1
2.3
Finance income
(1.4)
(1.4)
(9.6)
(4.3)
Depletion and depreciation
32.8
33.2
126.7
130.6
Impairment on stream interests
74.1
151.2
74.1
151.2
Impairment on investments
8.6
17.5
8.6
17.5
Foreign exchange gains/losses and other expenses
1.6
(3.6)
(8.0)
3.1
Loss from equity investee
-
-
-
1.7
Gain on investments
-
(2.0)
-
(13.9)
Adjusted EBITDA
$
93.7
$
94.2
$
347.8
$
327.3
Basic Weighted Average Shares Outstanding
145.3
131.3
143.1
125.4
Adjusted EBITDA per share
$
0.65
$
0.72
$
2.43
$
2.61
Net Income (Loss)
$
(33.1)
$
(105.4)
$
102.6
$
(6.8)
Foreign exchange (gain) loss and other expenses, net
of income tax
(0.5)
(0.3)
(0.1)
2.9
Gain on acquisition of Gold Wheaton/sale of
investments, net of income tax
-
(1.2)
-
(20.0)
Mark-to-market changes on derivative
1.4
(2.1)
(7.2)
-
Loss from equity investee, net of income tax
-
-
-
1.7
Impairment of stream/royalty interests
74.1
130.2
74.1
130.2
Impairment of investments
7.6
15.1
7.6
15.1
Transaction costs of Gold Wheaton, net of income tax
-
-
-
7.8
Foreign withholding taxes
-
4.5
(3.5)
4.5
One-time deferred tax recovery charge
(2.5)
-
(2.5)
-
Credit facility costs written off, net of income tax
-
-
-
0.6
Adjusted Net Income
$
47.0
$
40.8
$
171.0
$
136.0
Adjusted Net Income per share
$
0.32
$
0.31
$
1.19
$
1.08
SOURCE Franco-Nevada Corporation
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