Bernie Picchi

Bernie Picchi questioned the commitment to Ecuador's Cascabel project given political turmoil and the Panama experience, asking about the balance of geological appeal versus political risk. He also requested an update on the Cobre Panama situation under the new government.

Answer

SVP Eaun Gray detailed the Cascabel deal's risk mitigants, including tranched funding and a required government investment agreement, noting Ecuador's favorable fiscal structure. CEO Paul Brink provided a positive update on Panama, stating the new administration shows willingness to negotiate a reopening and is taking constructive steps like initiating an environmental review.

Bernie Picchi of Palisade Capital Management asked if the current mining M&A environment, highlighted by BHP's interest in Anglo American, presents new opportunities for Franco-Nevada.

Answer

Executive Lloyd Hong noted that large-scale M&A like the potential BHP-Anglo deal is positive for copper prices. He pointed to the completed Newmont-Newcrest merger as a more direct and actionable source of potential opportunities for Franco-Nevada, as Newmont has announced asset sales.