Franco-Nevada’s (TSX: FNV) (NYSE: FNV) 113 cash-flow producing assets generated $1.1 billion in earnings before interest, taxes, depreciation, and amortization in 2022, according to its new 2023 Asset Handbook released on Monday. The company also released its 2023 ESG Report on the same day.
The company’s 2023 Asset Handbook provides an overview of its portfolio, including past performance, descriptions and outlook for assets supporting their guidance, and details of the underlying mineral resources and reserves associated with Franco-Nevada’s more significant assets. Franco-Nevada’s portfolio is well diversified by asset, operator, geography and commodity, and has a long-life portfolio with an M&I Resource Royalty Ounce Mine Life of 34 years.
Franco-Nevada’s strong growth outlook is driven by near-term growth opportunities, such as the Cobre Panama expansion and other mine expansions, as well as 11 new mines that have the potential to start contributing by 2027.
It also has long-term optionality in gold, copper, and nickel and exposure to approximately 66,000 square kilometers on some of the world’s great mineral trends. Franco-Nevada also has no debt, $2.2 billion in available capital, and a strong pipeline of precious metal opportunities.
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Franco-Nevada outlines ESG due diligence approach
Responsible capital allocation is also key focus for Franco-Nevada, with an outlined ESG due diligence approach and a key focus on health and safety, carbon footprints, water management and risk, tailings management and biodiversity.
In addition, it has increased funding of community contributions in partnership with operators and continued support for mining industry organizations and diversity initiatives. Franco-Nevada also has good governance and shareholder alignment, with a high level of Board and management share ownership, totalling over $200 million.
The handbook details ESG in key corporate goals and uses it to evaluate management’s performance. Finally, Franco-Nevada has a goal of having at least one diverse person as a director on grounds broader than gender diversity, in addition to its ongoing commitment to 30 per cent women directors.
Franco-Nevada is also committed to diversity, inclusion, and well-being. It has increased diversity with 43 per cent of senior management and 60 per cent of the workforce now comprised of diverse persons. The company has also introduced a new climate action policy that sets out its climate-related commitments and measures, including net-zero-related commitments.
Additionally, Franco-Nevada has disclosed Scope 3 financed emissions attributable to their royalty and stream investments.
The company has also received recognition for its transparency and alignment of ESG reporting with the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). It has been rated “AA” by MSCI, a provider of investment decision support tools and services, and rated “Prime” by ESG ratings firm, ISS ESG, and included as one of the Best 50 Corporate Citizens in Canada in 2022 by Corporate Knights.
Franco-Nevada shares dipped $0.88 on Monday to trade at $207.79 on the Toronto Stock Exchange.
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