Franco-Nevada (FNV) Economic Moat Analysis56

Evidence

Acquisition of Precious Metals Stream on Sibanye Stillwater Limited’s Western Limb Mining Operations – South Africa On February 28, 2025, our wholly-owned subsidiary, FNBC completed the acquisition of a precious metals stream (the “Western Limb Stream”) with reference to specific production from Sibanye Stillwater Limited’s (“Sibanye-Stillwater”) Marikana, Rustenburg and Kroondal mining operations (the “Stream Area”) in South Africa for a purchase price of $500.0 million.

Western Limb Stream acquisition and purchase price · Filed 19/03/2026

The Western Limb Stream is comprised of a gold component for the life of mine (“LOM”) and a platinum component for approximately 25 years.

Western Limb gold and platinum contractual durations · Filed 19/03/2026

Revenue and GEOs Revenue and GEO sales by commodity, geographical location and type of interest for the year ended December 31, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Equivalent Ounces(1) ​ ​ Revenue (in millions) For the year ended December 31, ​ ​ 2025 2024 ​ ​ ​ Variance ​ ​ 2025 ​ ​ 2024 ​ ​ ​ Variance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commodity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 366,265 295,193 71,072 ​ ​ $ 1,275.8 ​ ​ $ 706.9 ​ $ 568.9 ​ Silver ​ 63,697 48,489 15,208 ​ ​ 235.6 ​ ​ 117.8 ​ 117.8 ​ PGM ​ 10,178 11,628 (1,450) ​ ​ 37.3 ​ ​ 28.3 ​ 9.0 ​ Precious Metals ​ ​ 440,140 355,310 ​ 84,830 ​ ​ $ 1,548.7 ​ ​ $ 853.0 ​ $ 695.7 ​ Iron ore(2) ​ 12,711 22,314 (9,603) ​ ​ $ 43.7 ​ ​ $ 50.5 ​ $ (6.8) ​ Other mining assets ​ ​ 3,804 3,555 ​ 249 ​ ​ ​ 12.4 ​ ​ ​ 8.2 ​ ​ 4.2 ​ Oil ​ ​ 39,665 59,030 ​ (19,365) ​ ​ ​ 118.8 ​ ​ ​ 128.6 ​ ​ (9.8) ​ Gas ​ ​ 15,294 15,147 ​ 147 ​ ​ ​ 65.4 ​ ​ ​ 44.1 ​ ​ 21.3 ​ NGL ​ ​ 7,492 7,978 ​ (486) ​ ​ ​ 19.6 ​ ​ ​ 20.3 ​ ​ (0.7) ​ Diversified ​ ​ 78,966 108,024 ​ (29,058) ​ ​ $ 259.9 ​ ​ $ 251.7 ​ $ 8.2 ​ Revenue from royalty, stream and working interests ​ ​ 519,106 463,334 ​ 55,772 ​ ​ $ 1,808.6 ​ ​ $ 1,104.7 ​ $ 703.9 ​ Interest revenue and other interest income ​ ​ — — ​ — ​ ​ $ 14.2 ​ ​ $ 8.9 ​ $ 5.3 ​ ​ ​ 519,106 463,334 55,772 ​ ​ $ 1,822.8 ​ ​ $ 1,113.6 ​ $ 709.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ South America ​ 212,017 187,778 24,239 ​ ​ $ 750.5 ​ ​ $ 451.1 ​ $ 299.4 ​ Central America & Mexico ​ 62,103 36,229 25,874 ​ ​ ​ 216.6 ​ ​ ​ 86.1 ​ ​ 130.5 ​ Canada(2) ​ 97,570 76,552 21,018 ​ ​ ​ 354.0 ​ ​ 192.8 ​ 161.2 ​ United States ​ 78,438 87,212 (8,774) ​ ​ 266.1 ​ ​ ​ 205.0 ​ ​ 61.1 ​ Rest of World ​ 68,978 75,563 (6,585) ​ ​ 235.6 ​ ​ 178.6 ​ 57.0 ​ ​ ​ 519,106 463,334 55,772 ​ ​ $ 1,822.8 ​ ​ $ 1,113.6 ​ $ 709.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue-based royalties ​ 186,607 186,472 135 ​ ​ $ 638.9 ​ ​ $ 440.1 ​ $ 198.8 ​ Streams ​ 280,431 236,158 44,273 ​ ​ 990.2 ​ ​ 567.9 ​ 422.3 ​ Profit-based royalties ​ 41,710 24,447 17,263 ​ ​ 143.9 ​ ​ 57.8 ​ 86.1 ​ Interest revenue and other(2) ​ 10,358 16,257 (5,899) ​ ​ 49.8 ​ ​ 47.8 ​ 2.0 ​ ​ ​ 519,106 463,334 55,772 ​ ​ $ 1,822.8 ​ ​ $ 1,113.6 ​ $ 709.2 ​ 1 Refer to the “Gold Equivalent Ounces and Net Gold Equivalent Ounces” section of this MD&A for more information on our methodology for calculating GEOs.

2025 and 2024 revenue and GEO sales by commodity and interest type · Filed 19/03/2026

The majority of our interests are royalty and streams with payments/deliveries that are based on production levels with no adjustments for the operator’s operating costs.

Production-based payments without operator operating-cost adjustments · Filed 19/03/2026

In 2025, these interests accounted for 91% of our revenue (2024 – 93%).

Revenue share from interests protected from operator operating-cost adjustments · Filed 19/03/2026

Partial Buyback of Salares Norte NSR – Chile In May 2025, Gold Fields Limited exercised its option to buy back 1% of Franco-Nevada’s 2% NSR on Salares Norte after having paid $6.0 million in cumulative royalty payments.

Realized partial buyback of Salares Norte royalty · Filed 19/03/2026

We anticipate a step-down in deliveries at Candelaria in H2 2027, where our stream interest will decrease from 68% to 40% of gold and silver produced, partly offset by potential production from the Candelaria Underground Expansion Project.

Scheduled Candelaria delivery reduction and potential offset · Filed 19/03/2026

Furthermore, operators themselves face risks in the jurisdictions in which they operate that could increase the likelihood that contractual and/or mineral rights as between operators and governmental or other administrative bodies may be disregarded or unilaterally altered, thus directly or indirectly affecting Franco-Nevada’s rights to its royalty, stream or other interests.

Risk of governmental alteration of contractual or mineral rights · Filed 19/03/2026

Franco-Nevada may be at a competitive disadvantage in acquiring mineral and oil and gas interests, whether by way of royalty, stream or other form of investment, as competitors may have greater financial resources and technical staffs or may have different investment criteria.

Potential competitive disadvantages in acquiring new interests · Filed 19/03/2026

We have not assumed any contributions from Cobre Panamá in our 2026 guidance.

No Cobre Panamá contributions assumed in 2026 guidance · Filed 19/03/2026

They are metal purchase agreements where, in exchange for an upfront deposit and ongoing payments for metal delivered, the holder purchases all or a portion of one or more metals produced from a mine, at a preset price.

Stream upfront deposits and preset metal purchase prices · Filed 19/03/2026

During the year, we benefited from the increase in gold prices, resulting in revenue of $1,822.8 million, a year-over-year increase of 64%.

2025 revenue growth attributed to higher gold prices · Filed 19/03/2026

Calculation of Adjusted Net Income Margin: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended ​ ​ For the year ended ​ ​ ​ December 31, ​ ​ December 31, ​ (expressed in millions, except Adjusted Net Income Margin) ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ 2024 ​ Adjusted Net Income ​ $ 356.2 ​ ​ $ 183.3 ​ ​ $ 1,075.2 ​ ​ $ 618.1 ​ Revenue ​ 597.3 ​ ​ 321.0 ​ ​ 1,822.8 ​ ​ 1,113.6 ​ Adjusted Net Income Margin ​ 59.6 % ​ 57.1 % ​ 59.0 % ​ 55.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 Management’s Discussion and Analysis 43 ​ ​ Cautionary Statement on Forward-Looking Information This MD&A 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 future events or future performance, management’s expectations regarding Franco-Nevada’s growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, any ongoing or future audits being conducted by the CRA, the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panamá mine and related arbitration proceedings.

Adjusted net income margin comparison and forward-looking caution · Filed 19/03/2026

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Initial 2025 Guidance (1) Revised 2025 Guidance (2) 2025 Actual GEOs Sold (3) Precious Metal GEO sales ​ ​ 385,000 - 425,000 ​ 420,000 - 440,000 ​ ​ 440,140 ​ Total GEO sales ​ ​ 465,000 - 525,000 ​ 495,000 - 525,000 ​ ​ 519,106 ​ 1 Initial 2025 guidance as disclosed in our 2024 MD&A filed on March 10, 2025.

Initial and revised 2025 guidance compared with actual GEO sales · Filed 19/03/2026

Investing activities in the first nine months of 2025 included the initial funding of $250.0 million for the Arthur Gold royalty, the acquisition of the Côté Gold royalty of $1,050.0 million, the closing of the Porcupine royalty of $300.0 million, the acquisition of Discovery subscription receipts of $48.6 million and the acquisition of the Western Limb Stream of $500.0 million.

Completed 2025 acquisition funding · Filed 19/03/2026

During the quarter, we also drew down $175.0 million from our Corporate Revolver to finance part of the acquisition of the royalty on the Arthur Gold Project.

Corporate Revolver borrowing to finance Arthur Gold acquisition · Filed 19/03/2026

The Corporate Revolver was fully repaid within the quarter.

Full repayment of Corporate Revolver within the quarter · Filed 19/03/2026

​ ​ ​ ​ 2025 Management’s Discussion and Analysis 42 ​ ​ Reconciliation of Net Income to Adjusted Net Income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended ​ For the year ended ​ ​ ​ December 31, ​ ​ December 31, ​ (expressed in millions, except per share amounts) ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ 2024 ​ Net income ​ $ 367.7 ​ ​ $ 175.4 ​ ​ $ 1,112.1 ​ ​ $ 552.1 ​ Impairment reversal ​ — ​ ​ — ​ ​ (4.8) ​ ​ — ​ Gain on disposal of royalty interests ​ — ​ ​ ​ — ​ ​ ​ — ​ ​ ​ (0.3) ​ Foreign exchange (gain) loss and other (income) expenses ​ (12.7) ​ ​ 8.0 ​ ​ (36.7) ​ ​ 20.7 ​ Tax effect of adjustments ​ ​ 1.2 ​ ​ ​ (0.4) ​ ​ ​ 4.6 ​ ​ ​ (2.4) ​ Other tax related adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax expense related to the remeasurement of deferred tax liability due to changes in Barbados tax rate ​ ​ — ​ ​ ​ — ​ ​ ​ — ​ ​ ​ 49.1 ​ Change in unrecognized deferred income tax assets ​ ​ — ​ ​ ​ 0.3 ​ ​ ​ — ​ ​ ​ (1.1) ​ Adjusted Net Income ​ $ 356.2 ​ ​ $ 183.3 ​ ​ $ 1,075.2 ​ ​ $ 618.1 ​ Basic weighted average shares outstanding ​ 192.8 ​ ​ 192.5 ​ ​ 192.7 ​ ​ 192.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 1.91 ​ ​ $ 0.91 ​ ​ $ 5.77 ​ ​ $ 2.87 ​ Impairment reversal ​ ​ — ​ ​ ​ — ​ ​ ​ (0.02) ​ ​ ​ — ​ Gain on disposal of royalty interests ​ ​ — ​ ​ ​ — ​ ​ ​ — ​ ​ ​ — ​ Foreign exchange (gain) loss and other (income) expenses ​ (0.07) ​ ​ 0.04 ​ ​ (0.19) ​ ​ 0.11 ​ Tax effect of adjustments ​ ​ 0.01 ​ ​ ​ — ​ ​ ​ 0.02 ​ ​ ​ (0.01) ​ Other tax related adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax expense related to the remeasurement of deferred tax liability due to changes in Barbados tax rate ​ — ​ ​ — ​ ​ — ​ ​ 0.26 ​ Change in unrecognized deferred income tax assets ​ — ​ ​ — ​ ​ — ​ ​ (0.02) ​ Adjusted Net Income per share ​ $ 1.85 ​ ​ $ 0.95 ​ ​ $ 5.58 ​ ​ $ 3.21 ​ Adjusted Net Income Margin Adjusted Net Income Margin is a non-GAAP ratio which is defined by Franco-Nevada as Adjusted Net Income divided by revenue.

Net income, adjusted earnings and weighted average shares · Filed 19/03/2026

As of March 18, 2026, the directors and executive officers of Franco-Nevada, as a group, beneficially own, directly or indirectly, or exercise control or direction over an aggregate of 1,178,204 Common Shares, representing approximately 0.6% of the Common Shares outstanding.

Director and executive officer beneficial ownership as of March 18, 2026 · Filed 19/03/2026

Franco-Nevada uses Adjusted Net Income Margin in its annual incentive compensation process to evaluate management’s performance in increasing revenue and containing costs.

Actual use of adjusted net income margin in annual incentive compensation · Filed 19/03/2026

​ BOARD OF DIRECTORS ​ The Board is comprised of a majority of independent directors in accordance with the requirements of Sections 303A.01 and 303A.02 of the New York Stock Exchange Listed Company Manual (the “NYSE Manual”).

Majority-independent board · Filed 19/03/2026

​ In addition, the Board has established the Audit and Risk Committee (as described more fully below under “Audit and Risk Committee”), the Compensation and Sustainability Committee, and the Nominating and Governance Committee, each of which is comprised of independent directors, as determined under the NYSE Manual.

Independent board committees · Filed 19/03/2026

​ ATTESTATION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ​ PricewaterhouseCoopers LLP (PCAOB ID 271), an independent registered public accounting firm, audited the effectiveness of the Registrant’s internal control over financial reporting as of December 31, 2025, and issued an 4 unqualified opinion thereon, as stated in their report included in Exhibit 99.3 hereto and incorporated by reference herein.

Unqualified auditor opinion on internal control effectiveness at December 31, 2025 · Filed 19/03/2026

The TSX threshold for shareholder approval of private issuances of common shares is generally 25%, subject to additional shareholder approval requirements in the case of certain issuances to insiders, and accordingly, the Registrant will be permitted to rely on shareholder approval rules that may be less favorable to shareholders than for U.S.

TSX private issuance shareholder approval threshold and shareholder protection qualification · Filed 19/03/2026

​ Capital Commitments As at December 31, 2025, we have the following investment commitments with respect to our royalty and stream interests: ​ ​ ​ ​ ​ ​ Asset ​ Commitment ​ Obligating Event Cascabel stream ​ $478.3 million (reduced to $239.2 million following the operator's buy-back of 50% of the Cascabel stream exercised subsequent to 2025 year-end) ​ Without limitation, completion of key development milestones, receipt of all material permits, a construction decision approved by the board of directors of SolGold plc, and availability of the remainder of the required project financing ​ Royalty Acquisition Venture with Continental ​ $36.5 million ​ Acquisition of mineral rights acquired through the Royalty Acquisition Venture with Continental, triggering funding requirements by the Company ​ Yanacocha royalty ​ 118,534 Franco-Nevada common shares (equivalent to $15.0 million at closing) ​ Achievement of commercial production and receipt of royalty payments from the Conga project for a full year within 20 years of the August 13, 2024 purchase agreement ​ Copper World royalty ​ $12.5 million ​ 50% of commitment payable upon the project having all necessary permits and approvals and being free of legal challenges.

Outstanding investment commitments and milestone conditions · Filed 19/03/2026

Although the royalty holder is generally not responsible for providing capital, covering operating losses or environmental liabilities, increases in production costs will affect net profits and royalties payable.

Profit-based royalty exposure to production-cost increases · Filed 19/03/2026

The price used in the computation of GEOs earned from a particular asset varies depending on the royalty or stream agreement, which may make reference to the market price realized by the operator, or the average price for the month, quarter, or year in which the commodity was produced or sold.

Agreement-specific references to realized or average market prices · Filed 19/03/2026

Publication history

Sources

• filing-1 · Filed 19/03/2026
• filing-2 · Filed 19/03/2026
• filing-3 · Filed 19/03/2026