AI Content Chat (Beta) logo

Iron Ore LIORC Location: Newfoundland and Labrador, Canada w Operator: Rio Tinto plc vie Metals: Iron Ore er Royalty: GORR 0.7% Iron Ore, IOC Equity 1.5% v O 2022 2021 2020 Revenue to Franco-Nevada ($ million) $ 14.8 $ 30.2 $ 14.7 M&I Resource (Mt Iron Ore) 1,931 1,930 – Inferred Resource (Mt Iron Ore) 811 895 – P&P Reserves (Mt Iron Ore) 1,077 1,144 – 1, 2 M&I Royalty Ounces (000s) 332 349 – Inferred Royalty Ounces (000s)2 139 162 – P&P Royalty Ounces (000s)2 185 207 – LIORC, Newfoundland and Labrador etals 1 Please refer to the tables on pages 116-120 for a breakout of grade and tonnages by Mineral Resource category; all M&I categories are inclusive of Mineral Reserves IOC produces high grade +65% Fe iron ore concentrate for sale and 2 For Royalty Ounce calculation, calculation based on overriding royalty interest only and takes into pellets with a reserve-only 24-year mine life and a large mineral resource account moisture, mass recovery, and allowable deductions. Refer to LIORC’s annual report for ecious M additional information supporting further extensions. IOC has nominal capacity of 23.3 Mtpa r P (combined concentrate and pellets) with 2022 attributable sales of Franco-Nevada holds 6.3 million common shares 17.6 Mt and Rio Tinto has provided 2023 guidance of saleable production (a 9.9% equity investment) in Labrador Iron Ore Royalty between 17.9 Mt and 19.6 Mt. In 2022, total capital expenditures at IOC Corporation (“LIORC”). were C$460 million, below the forecast of C$606 million due to deferral of certain projects. In 2023, capital expenditures at IOC are forecast by IOC The position was acquired over a number of years for a total investment to be C$534 million, including C$134 million of growth and development of C$93 million, representing an average cost of C$14.72/share. projects. IOC benefits from integrated infrastructure, including the mine, concentrator/pellet facilities, railway, and a port at Sept-Îles, Quebec. The investment in LIORC functions similar to a royalty given the flow IOC has a long history as a supplier of high quality, low impurity, premium through of revenue generated from LIORC’s underlying 7% gross iron ore and pellets which has typically received premium prices from the overriding royalty interest (0.7% attributable), C$0.10 per tonne European steel making industry. ssets commission (C$0.01 per tonne attributable), and 15.1% equity interest (1.5% attributable) in Iron Ore Company of Canada’s (“IOC”) Carol Lake Producer of high-quality pellets and fines mine, operated by Rio Tinto plc (“Rio Tinto”). LIORC normally pays cash ersified A dividends from net income derived from IOC to the maximum extent iv 24-year reserve life with large resource base to D possible, while maintaining appropriate levels of working capital. Over the past two years (2021 and 2022), cash flow from operations at LIORC support extensions has averaged approximately 47% from IOC dividends from the 15.1% equity interest and 53% from the royalty and commission. Fully integrated from mine to port, operated by Rio Tinto +50-year track record 92 Franco-Nevada Corporation TSX / NYSE: FNV

2023 Asset Handbook - Page 94 2023 Asset Handbook Page 93 Page 95