(in U.S. dollars unless otherwise noted)
TORONTO, Nov. 20,
2023 /PRNewswire/ - Franco-Nevada
Corporation ("Franco-Nevada") (TSX: FNV) (NYSE: FNV) notes that
its partner, First Quantum Minerals Ltd. ("First Quantum"),
has issued an update reporting the following in respect of the
Cobre Panama mine ("Cobre Panama"):
- First Quantum's subsidiary, Minera Panama S.A. ("MPSA"),
has further ramped down operations at Cobre Panama to one remaining
ore processing train
- Ongoing illegal blockades of small boats at the Punta Rincon
port continue to prevent the delivery of supplies that are
necessary to operate the on-site power plant. Without shipments
arriving at the Punta Rincon port, MPSA expects to run out of
supplies for the power plant during the week commencing
November 20, 2023
- If the illegal actions continue to prevent the delivery of
supplies necessary to operate the power plant, MPSA will ramp down
the remaining processing train this week and temporarily halt
production
- With respect to the unconstitutionality challenges of Law 406
that have been admitted by the Supreme Court of Panama, the Secretary General of the Supreme
Court of Panama has stated that
plenary sessions of the court will sit from November 24, 2023 and remain in session until a
ruling is delivered in the shortest possible timeframe
- MPSA, in accordance with its contractual obligations to the
Republic of Panama, made a tax and
royalty payment on November 16, 2023
of $567 million for the period from
December 2021 to October 2023
For more detailed information, please refer to First Quantum's
press release dated November 20,
2023.
Given the recent curtailment of operations at Cobre Panama and
the risk of further disruptions at the mine, Franco-Nevada is
adjusting its guidance for 2023. Franco-Nevada's original guidance was 490,000 to
530,000 Precious Metal GEOs and 640,000 to 700,000 Total GEOs.
Franco-Nevada is revising its
guidance to 480,000 to 500,000 Precious Metal GEOs and 620,000 to
640,000 Total GEOs. The revised guidance assumes the following
prices for the remainder of the year when reflecting revenue earned
from gold, silver, platinum, palladium, iron ore, oil and gas
commodities to GEOs: $1,925/oz Au,
$22.50/oz Ag, $900/oz Pt, $1,100/oz Pd, $115/tonne Fe 62% CFR China, $85/bbl WTI oil, and $2.75/mcf Henry Hub natural gas.
For more information, please go to our website at
www.franco-nevada.com
Forward-Looking
Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian securities laws and the United States Private Securities
Litigation Reform Act of 1995, respectively, which may include, but
are not limited to, statements with respect to Franco-Nevada's
revised GEO guidance for 2023, MPSA's approach to operations,
the effect of continued blockades on Cobre Panama and the
constitutionality challenges to Law 406. The outcome of these
matters could have a material adverse impact on the revenue
Franco-Nevada derives from its streaming arrangements relating
to Cobre Panama and on Franco-Nevada's results of operations
and financial condition. There can be no assurance that such
forward-looking statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Investors are cautioned that
forward-looking statements are not guarantees of future
performance. Accordingly, investors should not place undue reliance
on forward-looking statements due to the inherent uncertainty
therein.
For additional information with respect to risks,
uncertainties and assumptions relating to Franco-Nevada's business
and assets, please refer to Franco-Nevada's most recent Annual
Information Form filed with the Canadian securities regulatory
authorities on www.sedarplus.com and Franco-Nevada's most recent
Annual Report filed on Form 40-F filed with the SEC on www.sec.gov.
The forward-looking statements herein are made as of the date of
this press release only and Franco-Nevada does not assume any
obligation to update or revise them to reflect new information,
estimates or opinions, future events or results or otherwise,
except as required by applicable law.
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SOURCE Franco-Nevada Corporation