Central America & Mexico COBRE PANAMA Location: Panama | Operator: First Quantum Minerals Ltd. | Precious Metals: Au & Ag | Stream: Gold and Silver Stream Cobre Panama is one of the world’s largest copper-gold-silver porphyry mines and is indirectly 90% owned by First Quantum Minerals Ltd. (“First Quantum”) and 10% by Korea Mine Rehabilitation & Mineral Resources Corp. (“KOMIR”). 2023 2022 2021 Revenue to Franco-Nevada ($ million) $ 248.9 $ 223.3 $ 235.0 2022 2021 M&I Resources (koz Au)1,2 7,159 7,396 Inferred Resources (koz Au)1,2 1,296 1,301 P&P Reserves (koz Au)1,2 6,861 7,104 1,2 M&I Resources (Moz Ag) 149.2 152.9 1,2 Inferred Resources (Moz Ag) 38.0 38.1 1,2 P&P Reserves (Moz Ag) 128.8 133.0 2,3 M&I Royalty Ounces (000s) 4,758 4,973 3 Inferred Royalty Ounces (000s) 750 769 3 P&P Royalty Ounces (000s) 4,532 4,743 1 Cobre Panama has been a material mining project in prior years but is currently on Preservation and Safe Management. Due to the status of Cobre Panama, Mineral Resources and Mineral Reserves are being reported separately and are not included in the Mineral Cobre Panama, Panama Resources and Mineral Reserves table 2 Please refer to the tables on page 122 for a breakout of grade and tonnages by Mineral Resource category for Cobre Panama as at December 31, 2022; all M&I categories are of Justice of Panama declared Law 406 unconstitutional and stated Diver inclusive of Mineral Reserves that the effect of the ruling was that the revised concession contract 3 For 2023, Franco-Nevada estimates that P&P royalty ounces, M&I royalty ounces and Inf royalty purportedly no longer existed. The Supreme Court did not order the sified Assets ounces would be 4,468 koz, 4,673 koz and 745 koz, respectively, using the same general assumptions as 2022 and assuming $1,950/oz gold and $22.50/oz silver. For 2022 Royalty closure of the mine. However, in late November the mine was placed on Ounce calculation, Franco-Nevada assumed 88% of the Mineral Resources and Mineral Reserves preservation and safe management (“P&SM”) due to illegal blockades were subject to our stream interest. Silver was converted into Royalty Ounces assuming and, although the blockades have dissipated, the Government of Panama $1,800/oz gold and $21.00/oz silver ($1,800/oz gold and $23.00/oz silver in 2021) and a 62% (62% in 2021) factor was applied to obtain a Royalty Ounce for the P&P category, announced “closure” plans for the mine in December 2023 and the mine a 62% (62% in 2021) factor was applied for Royalty Ounces in the M&I category remains on P&SM. and a 50% factor was applied for Royalty Ounces in the Inferred category Franco-Nevada (Barbados) Corporation, a wholly owned subsidiary of Due to the above events and the political environment surrounding the Franco-Nevada, contributed a total of $1.36 billion to the construction ruling by the Supreme Court, Franco-Nevada conducted an impairment of Cobre Panama since 2015. Franco-Nevada has two precious metals analysis and, taking a prudent approach, recognized a full impairment streams on Cobre Panama. Each stream has slightly different terms loss for the asset under applicable accounting rules as of the end of the Mineral Resources and Mineral Reser as described below but both streams are indexed to the copper in reporting period. Franco-Nevada is pursuing all appropriate legal avenues concentrate shipped until certain specific thresholds of gold and silver to protect its investment and rights. The impairment has been taken deliveries are met: without prejudice, or without at present attributing any specific value, to the legal remedies that may be obtained through any arbitration • Fixed Payment Stream – Effective since 2015 and applies to First proceedings or otherwise. Quantum’s original 80% interest in Cobre Panama. The ongoing Franco-Nevada does not expect deliveries from the mine in 2024. payment is $457.35/oz gold and $6.86/oz silver with a 1.5% annual Presidential and national legislative elections are scheduled to take inflation factor. place in May 2024, with a new president, Government of Panama cabinet • Floating Payment Stream – Effective March 2018, Franco-Nevada and National Assembly expected to assume office in July 2024. In the (Barbados) Corporation added a new precious metals stream which event that there is a material change in the facts and circumstances increased its coverage to 100% of the ownership of the Cobre Panama surrounding the halting of production at Cobre Panama and there is a ves operation. The Floating Payment Stream applies to First Quantum’s resumption of precious metal stream deliveries to Franco-Nevada, the 10% indirect interest acquired from LS-Nikko Copper Inc. and KOMIR’s impairment loss that was recognized may be partially or fully reversed. 10% indirect interest. The ongoing payment is 20% of the spot price for the Mineral Reserve life as of 2018 and higher thereafter. Franco-Nevada strongly prefers and hopes for an amicable solution providing for the resumption of operations at Cobre Panama, with the support of Cobre Panama commenced production in February 2019. In 2023, Cobre the Panamanian people and the State of Panama. Additional Inf Panama produced 330 kt of copper. Franco-Nevada sold 128,599 GEOs from the mine in 2023, compared to 123,769 GEOs in 2022. One of the largest copper producers (approx. 1.5% of global production) In October 2023, the National Assembly of Panama approved a revised or concession contract for the Cobre Panama mine through a new law, Law Currently in a phase of Environmental Preservation mation 406. Following this approval, widespread protests occurred in Panama and Safe Management resulting in the National Assembly enacting an indefinite mining Before production halt, employed 7,000 workers moratorium in Panama. In late November 2023, the Supreme Court and contributed 5% of Panama’s GDP TSX / NYSE: FNV Franco-Nevada Corporation ★ 39