Franco-Nevada Announces $100 Million Financing with Orezone Gold on the Casa Berardi Mine

On January 26, 2026, Franco-Nevada announced a $100 million gold stream financing agreement with Orezone Gold Corporation. The financing supports Orezone's acquisition of Hecla Mining's Casa Berardi Gold Mine and associated Quebec assets. Key terms include: a fixed delivery of 1,625 gold ounces per quarter for the first five years; a variable component of 5.0% of gold from Casa Berardi and other Quebec assets (excluding Heva-Hosco) and 2.5% from Heva-Hosco; an ongoing payment of 20% of the spot gold price to Orezone; a parent guarantee; and a right of first refusal on future streams/royalties. Closing is subject to customary conditions and is expected in the first half of 2026.

• Scale Relative to Portfolio: The $100 million commitment is modest compared to Franco-Nevada's recent multi-billion dollar acquisition spree (e.g., Côté at $1.05B, Porcupine at $300M, Arthur at $250M). It adds a producing asset in a top-tier jurisdiction (Quebec) but will not materially alter the company's production profile. Based on Casa Berardi's historical production profile, estimated annual contributions are likely in the range of 10,000-20,000 GEOs, representing approximately 2-3% of 2025's guided GEO sales.
• Strategic Fit: The transaction aligns perfectly with the company's strategy of adding precious metal exposure through streams and royalties, partnering with a proven operator (Orezone's team has a strong track record). The right of first refusal provides optionality for future growth in the district.
• Financial Capacity: The investment is easily manageable given Franco-Nevada's robust balance sheet. As of September 30, 2025, the company had $236.7 million in cash, a $1 billion undrawn revolver, and total available capital exceeding $1.8 billion. The deal does not strain liquidity or alter the debt-free status.
• Context and Trajectory: This announcement follows 18 months of significant portfolio additions and record financial results driven by high gold prices. It demonstrates continued deal flow and capital deployment discipline. While not transformative, it is a material, positive incremental addition that reinforces growth.

Franco-Nevada is the world's leading publicly-traded gold-focused royalty and streaming company. Its business model provides leveraged exposure to commodity prices without direct operational or capital cost overrun risks. The portfolio is highly diversified by asset, operator, geography, and commodity. - Flagship & Key Assets: The company does not have a single "flagship" but a collection of cornerstone assets: - Cobre Panama (Stream): A massive copper-gold mine currently on care and maintenance. A restart (potential 130k-150k GEOs/year) is the single largest near-term optionality. - Côté Gold (Royalty): A 7.5% gross margin royalty on one of Canada's newest, large-scale gold mines, acquired for $1.05B in 2025. - Porcupine Complex (Royalty): A 4.25% NSR on a long-life producing gold complex in Timmins, Ontario, acquired in 2025. - Arthur Gold Project (Royalty): A 1% NSR on a major new Nevada gold discovery (AngloGold Ashanti). - Core Producing Streams: Includes Candelaria, Antapaccay, and Guadalupe-Palmarejo.