Franco-Nevada Strengthens Its Legacy with Another Dividend Increase and Clear Leadership Transition

, the world’s leading gold-focused royalty and streaming company, has once again demonstrated its long-term financial strength and disciplined capital allocation by declaring its 19th consecutive annual dividend increase. Alongside this milestone, the company also announced a carefully planned chair succession strategy, reinforcing its commitment to strong corporate governance and leadership continuity.

This announcement highlights Franco-Nevada’s resilient business model, which has enabled the company to deliver consistent shareholder returns across commodity cycles, geopolitical shifts, and global economic uncertainty. The combination of dividend growth and proactive leadership planning underscores the company’s reputation as a stable and forward-looking organization within the global mining and royalty sector.

Details of the 19th Consecutive Dividend Increase

Franco-Nevada’s Board of Directors approved an increase to the company’s quarterly dividend, marking the 19th year in a row that shareholders have received a higher annual dividend. This achievement places Franco-Nevada among a select group of dividend growth companies in the natural resources sector.

The dividend increase reflects management’s confidence in the company’s diversified portfolio of royalties and streams, as well as its strong balance sheet and predictable cash flow generation. Franco-Nevada’s business model allows it to benefit from commodity price upside while minimizing exposure to rising operating and capital costs faced by traditional mining operators.

Why Consistent Dividend Growth Matters

For long-term investors, consistent dividend increases are a powerful indicator of financial health and disciplined management. Franco-Nevada’s dividend policy is designed to:

• Provide sustainable and growing returns to shareholders
• Maintain flexibility for new royalty and streaming investments
• Preserve balance sheet strength across market cycles

This approach has helped the company build trust with investors seeking both income and long-term capital appreciation.

A Business Model Built for Stability

Unlike traditional mining companies, Franco-Nevada does not operate mines. Instead, it provides upfront capital to mining partners in exchange for royalties or metal streams on future production. This structure allows the company to avoid many of the risks associated with mine construction, labor, and day-to-day operations.

As a result, Franco-Nevada benefits from:

• Lower operating risk
• High-margin cash flows
• Diversification across commodities, geographies, and operators

This stability has been a key driver behind the company’s ability to raise its dividend every year for nearly two decades.

Portfolio Diversification Across Commodities

Franco-Nevada’s portfolio is anchored by gold royalties, but it also includes exposure to silver, platinum group metals, energy assets, and other commodities. This diversification reduces reliance on any single asset or commodity and enhances cash flow resilience.

Gold remains the core of the portfolio, benefiting from its role as a store of value during periods of inflation and economic uncertainty. At the same time, exposure to energy and base metals provides additional growth opportunities tied to global infrastructure and energy demand.

Geographic Reach and Asset Quality

The company’s assets span multiple continents, including North America, South America, Australia, and parts of Africa. Franco-Nevada prioritizes investments in jurisdictions with strong rule of law and established mining frameworks, further reducing risk.

Many of its royalties are tied to long-life, low-cost mines operated by experienced mining companies, ensuring long-term production and cash flow visibility.

Chair Succession Plans: A Strategic Leadership Transition

In addition to the dividend announcement, Franco-Nevada revealed its chair succession plans, signaling a thoughtful and orderly leadership transition. Succession planning is a critical component of corporate governance, particularly for companies with long-term investment horizons.

The current chair will transition from the role following a defined period, allowing for knowledge transfer and continuity. The incoming chair has deep experience with the company and a strong understanding of its culture, strategy, and risk management philosophy.

Importance of Governance and Continuity

Strong governance practices help ensure that shareholder interests are protected and that strategic decisions remain aligned with long-term value creation. Franco-Nevada’s approach to chair succession reflects:

• Proactive planning rather than reactive change
• Board stability and independence
• Clear alignment with shareholder interests

This transparency provides reassurance to investors and reinforces confidence in the company’s leadership.

Management’s Strategic Vision Going Forward

Franco-Nevada’s management team continues to focus on disciplined growth, emphasizing high-quality assets and conservative financial management. The company remains selective in deploying capital, targeting opportunities that meet strict return and risk criteria.

Key strategic priorities include:

• Expanding the royalty and streaming portfolio through accretive transactions
• Maintaining a strong balance sheet with minimal debt
• Returning capital to shareholders through dividends

This strategy has allowed Franco-Nevada to grow without sacrificing financial flexibility.

Financial Strength and Balance Sheet Discipline

One of Franco-Nevada’s defining characteristics is its robust balance sheet. The company typically operates with low or no net debt, providing resilience during market downturns and the ability to act quickly when attractive investment opportunities arise.

Strong free cash flow generation supports both dividend growth and reinvestment, creating a virtuous cycle of value creation.

Performance Across Commodity Cycles

Over the years, Franco-Nevada has navigated periods of commodity price volatility with remarkable consistency. Its royalty model enables it to capture upside when prices rise while limiting downside exposure when prices fall.

This asymmetric risk profile has been especially attractive to investors seeking exposure to precious metals without the operational risks of mining.

Market Reaction and Investor Confidence

The announcement of the dividend increase and chair succession plans was well received by the investment community. Analysts and shareholders alike view the news as confirmation of Franco-Nevada’s long-term stability and prudent governance.

Dividend-focused investors, in particular, value the company’s track record of annual increases, which signals confidence in future cash flows.

Franco-Nevada’s Role in the Global Mining Ecosystem

As a royalty and streaming company, Franco-Nevada plays a unique role in the mining industry. It provides non-dilutive financing to mining companies, helping advance projects while allowing operators to retain operational control.

This partnership-based approach supports mine development and expansion, contributing to global mineral supply while managing risk efficiently.

Long-Term Outlook and Growth Opportunities

Looking ahead, Franco-Nevada is well positioned to continue generating value for shareholders. Global demand for precious metals, particularly gold, remains supported by macroeconomic uncertainty, central bank buying, and investor demand for diversification.

At the same time, the company’s exposure to energy and other commodities provides optionality for future growth as global energy systems evolve.

Commitment to Shareholder Returns

With nearly two decades of consecutive dividend increases, Franco-Nevada has set a high standard for shareholder returns in the resource sector. Management has reiterated its commitment to maintaining a sustainable and growing dividend while preserving financial strength.

Conclusion: A Milestone That Reinforces Trust

Franco-Nevada’s declaration of its 19th consecutive annual dividend increase, combined with a well-structured chair succession plan, represents more than just a corporate announcement. It reflects a culture of discipline, transparency, and long-term thinking.

For investors seeking stability, income growth, and exposure to high-quality mining assets, Franco-Nevada continues to stand out as a trusted and resilient leader in the royalty and streaming industry.

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