Franco-Nevada Corporation

Discovery Mining Ltd. has entered into an asset purchase agreement to acquire certain mineral properties adjacent to the Dome Mine, including the Fuller project and a 60% interest in the Paymaster Joint Venture, from wholly owned subsidiaries of McEwen Inc. for total consideration of $55 million, payable $50 million in common shares of the Company and $5 million in cash. The purchased assets expand Discovery's land position contiguous with the Dome Mine and are intended to support potential future expansion of the mine, including a possible location for new processing and tailings infrastructure. Separately, Discovery entered into a royalty purchase agreement with Franco-Nevada Canada Holdings Inc., a subsidiary of Franco-Nevada Corporation, to amend the royalty agreement dated April 15, 2025 with respect to the Porcupine Operations, extending Franco-Nevada's existing royalty interest to include the purchased assets in exchange for $8 million payable to Discovery. President and CEO Tony Makuch said the transaction is an important step in establishing the land position needed for the company's growth plans in the Timmins Camp, noting the Dome Mine has an 11 million ounce inferred resource. Closing is anticipated in October 2026, subject to conditions including transfer of the property and associated claims, extinguishment of the existing NPI royalty on the Fuller project, and regulatory approvals including approval of the Toronto Stock Exchange.

UBS has identified its preferred gold mining stocks as the sector navigates volatile conditions following a turbulent 2026, recommending selective exposure to gold equities heading into third-quarter results and 2027 guidance. The bank expects sustained energy and broader cost pressures to drive higher unit costs in 2027, though it notes gold valuations are generally reasonable and margins remain attractive if prices hold above $4,000 per ounce. Newmont is UBS's preferred senior producer, cited for clarity on cash returns, low probability of mergers and acquisitions, and modest improvement in operating outlook; the Nevada Gold Mines dispute with Barrick is now resolved, with Newmont paying $1.95 billion to bring Fourmile, Fiberline and Mike into the joint venture under a modernized agreement. UBS also favors Barrick, whose relative performance and valuation reflect that outcome, and Endeavour, whose spot free cash flow yield exceeds 10 percent with a further step-up in cash returns expected in 2026 and roughly 40 percent growth over 2025-2029 through the Assafou project in Ivory Coast. The list also includes SSR Mining, where the investment case has shifted to delivery, life extensions and deployment of over $2 billion of cash with production sustainable just below 500,000 ounces per annum of gold equivalent, plus Skeena Resources, which secured key permits for the Eskay Creek project in February, and Franco-Nevada, where the Cobre Panama restart remains mostly unpriced and the stock trades at approximately 15 times spot 2028 enterprise value to EBITDA versus its five-year average of 21.5 times.

Franco-Nevada Corporation has acquired 10,000,000 common shares of Kenorland Minerals Ltd., representing approximately 12.42% of the company's outstanding common shares, making it a significant shareholder. The shares were purchased through private agreements at $2.22 per share, with 7,950,000 acquired from John Tognetti and 2,050,000 from Zach Flood, Kenorland's President and CEO, for an aggregate purchase price of $22.2 million. Prior to the transaction, Franco-Nevada held no common shares of Kenorland, while Tognetti held 11,115,603 shares, or approximately 13.80% of the outstanding common shares. Following the transaction, Tognetti holds 3,165,603 shares, or approximately 3.93%, and has ceased to be an insider of Kenorland, while Flood continues to hold 3,422,888 common shares. Franco-Nevada said it acquired the shares for investment purposes and has no current plans to acquire additional securities or dispose of its holdings, though it may do so in the future depending on market conditions.

Banyan Gold Corp. has closed a brokered private placement and a concurrent non-brokered placement for combined gross proceeds of $54.3 million. The brokered offering, led by Canaccord Genuity Corp. as lead agent and sole bookrunner, issued 23,156,500 common shares at $2.00 per share for gross proceeds of $46,313,000. The concurrent non-brokered offering issued an additional 4,000,000 shares at $2.00 per share for gross proceeds of $8,000,000. President and CEO Tara Christie said the company is pleased to welcome Franco-Nevada as a new shareholder, and that the financing will allow Banyan to rapidly advance its AurMac and Nitra projects through 2028, including drilling, engineering and permitting what she called one of Canada's largest gold deposits. Net proceeds will fund advancement of Banyan's Yukon projects and general corporate and working capital purposes, and both offerings remain subject to final approval of the TSX Venture Exchange.

Minerals 260 has secured commitments to raise $178.2m, or A$250m, before costs through a two-tranche share placement to fund the next stage of development at its Bullabulling Gold Project in Western Australia. The placement, priced at A$0.88 per share for 284,090,910 fully paid ordinary shares, includes a A$30m cornerstone investment from the Franco-Nevada Corporation and matches the company's closing share price on 11 September 2026, a 3.5% premium to the ten-day volume-weighted average price of A$0.85. Minerals 260 will also offer a share purchase plan to eligible shareholders to raise up to an additional A$30m at the same price. Combined with the placement proceeds, the expected share purchase plan outcome, A$170m in previously secured royalty funding from Franco-Nevada and a cash balance of approximately A$183m as of 14 September 2026, the company expects to have roughly A$633m available for development before transaction costs, against a total estimated pre-production capital requirement of A$855m. Final investment decisions are expected in the first quarter of 2027, and the Bullabulling project carries a mineral resource estimate of 190 million tonnes grading one gram per tonne gold for 6.2 million ounces on granted mining leases.

Franco-Nevada shares have risen about 12.5% in the month since its latest earnings report, outperforming the S&P 500. The company reported adjusted earnings of $1.81 per share for the second quarter of 2026, up 46% year over year but below the Zacks Consensus Estimate of $1.95, while revenues climbed 57.3% year over year to $581 million on stronger precious metal and oil prices. Precious Metal assets generated $498.7 million of that revenue, 86% of the quarterly total, as gold-equivalent ounces sold rose 18.1% to 132,405. Adjusted EBITDA advanced 44.8% to $529.7 million, though the adjusted EBITDA margin narrowed to 91.2% from 99% a year earlier. Franco-Nevada expects total GEO sales of 510,000-570,000 for 2026 and is tracking toward the upper half of that range, with stream deliveries from Cobre Panamá of 23,100 gold ounces and 265,000 silver ounces beginning in the third quarter.

Franco-Nevada Corp reported record second-quarter 2026 financial results, with revenue up 57% year over year and adjusted EBITDA up 45%. Adjusted net income rose 46% to $349.2 million, or $1.81 per share, while total gold equivalent ounces sold increased 18% to 132,405. The company said it is tracking toward the upper half of its 2026 annual guidance range of 510,000 to 570,000 GEOs, supported by strong performance from Candelaria, Tocantinzinho, Cote, and Valentine. Franco-Nevada maintained $4.3 billion in total available capital as of June 30, 2026, including $1 billion in cash and no debt, positioning it for future acquisitions. Management also noted positive news on the Cobre Panama environmental audit, with an 87.7% compliance rate and no major findings, though formal restart negotiations with the Panamanian government have not yet begun.

Franco-Nevada declared a quarterly dividend of $0.44 per share, in line with the previous payout. The dividend is payable on September 24 to shareholders of record as of September 10, with the ex-dividend date also on September 10. The forward yield is 0.73%. The company has now announced a dividend of $0.44 for three consecutive quarters.

JPMorgan Chase has issued a forecast that gold could rise to more than $5,000 an ounce by the fourth quarter of 2026, with potential for further gains thereafter. The prediction comes as CEO Jamie Dimon warned of elevated market risks, likening them to colliding tectonic plates. The bank suggests investors consider gold as a hedge, highlighting streaming and royalty companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals as attractive vehicles due to their diversification and dividend histories.

Sinda Ltd., a silver exploration company with mineral projects in Mexico, will begin trading today on the New York Stock Exchange under the ticker symbol SIND. The company is advancing a large-scale, high-grade silver-gold discovery in the historic Guanajuato district, with an estimated 369 million silver-equivalent ounces of Inferred Mineral Resources and 16 million silver-equivalent ounces of Indicated Mineral Resources at an average grade of 692 silver-equivalent grams per tonne. Coinciding with the initial public offering, Fresnillo plc is subscribing for up to 5% of Sinda's outstanding shares in a private placement, while Franco-Nevada is participating as an anchor investor with a $10 million order. Net proceeds from the offering will fund a multi-year exploration and infill drilling program, including construction of a 9-kilometer underground exploration decline at the Caracol deposit, with the objective of achieving initial production by 2031. Sinda will ring the NYSE Opening Bell on July 2, 2026 to celebrate its listing.

Bank of America published a note on June 22 arguing that the selloff in gold equities has opened an opportunity, as mining stocks are pricing in gold well below where it actually trades. Using a price-to-net asset value approach, the bank found that companies in its coverage universe are pricing gold at an average of $3,354 per ounce, a 19% discount to spot, while on an EV/EBITDA basis the implied average came in at $4,016 per ounce, a 3% discount. The bank acknowledged near-term headwinds from the Federal Reserve holding rates at 3.50% to 3.75% and signaling possible future hikes under Chairman Kevin Warsh, but pointed to persistent U.S. budget deficits, de-dollarization trends, and central bank buying as structural supports. A World Gold Council survey published June 16 found that 89% of 76 central bank respondents expect global official gold reserves to increase over the next 12 months, with a record 45% planning to add to their own holdings. Bank of America maintained its 12-month gold price target of $6,000 per ounce and raised its full-year 2026 average gold price forecast to $5,093 per ounce, implying roughly 46% upside from around $4,110 at the time of writing.