Government of Panama Approves Processing of Stockpiled Ore at Cobre Panama

• The Government of Panama formally approved the removal, processing, and export of ~38 million tonnes of ore that had been stockpiled at the Cobre Panamá mine before operations were suspended.
• Franco‑Nevada expects this material to generate roughly 23,000 gold ounces and 265,000 silver ounces for its royalty/stream interests.
• The approval covers all pre‑suspension mineralized ore, effectively unlocking a previously dormant resource that was disclosed in the company’s 2025 MD&A.

• Revenue upside: At current metal prices (gold ≈ $4,500/oz, silver ≈ $75/oz) the newly approved stockpile could contribute roughly $1.0 bn of gross revenue over the processing period, translating to an incremental $70‑$80 m of adjusted EBITDA for Franco‑Nevada after royalty and streaming splits.
• Guidance alignment: The company’s 2025 MD&A already disclosed the size of the stockpile but noted that processing required governmental approval. The recent approval moves the asset from “potential” to “operational,” a material step beyond prior expectations.
• Balance‑sheet impact: No additional capital is required; the processing will be funded by First Quantum (operator) and the royalty/stream terms are fixed, preserving Franco‑Nevada’s cash‑rich balance sheet.
• Risk mitigation: The approval reduces political risk around Cobre Panamá, a key long‑term catalyst, and improves confidence that future negotiations with Panama can yield tangible outcomes.

Franco‑Nevada is a royalty and streaming company with a diversified portfolio of gold, silver, copper, and PGM assets across the Americas, Australia, and Brazil. Its flagship exposure remains the Cobre Panamá royalty/stream, now bolstered by the approved stockpile processing, which could add ~150k GEOs annually once fully operational.