Option Value Continues to Emerge From the Portfolio

Research evidence excerpt

Option Value Continues to Emerge From the Portfolio

June 15, 2026 | 20:40 ET~

Franco-Nevada Precious Metals & Minerals

Matthew Murphy, CFA Analyst

matthews.murphy@bmo.com (416) 843-3198

FNV-TSX Rating Price: Jun-15 Target Total Rtn

FNV-NYSE Outperform $310.97 $410.00 33% David Hove, CFA VP Associate

david.hove@bmo.com (416) 355-8767

Mert Karanfil Associate

mert.karanfil@bmo.com (416) 568-4832

Legal Entity: BMO Nesbitt Burns Inc.Option Value Continues to Emerge From the Portfolio

Bottom Line:

FNV highlighted during marketing this week that strong operator cash flow is driving 2YR Price Volume Chart

exploration efforts and renewed investment in production, helping to unlock significant 450

option value in the portfolio. The deal environment remains healthy. The key catalyst 400

ahead is unlocking further growth with the anticipated restart of Cobre Panama. 350

Improving market awareness of portfolio option value and an improving growth 300 2

250 1.5

outlook should drive a re-rate of both underlying value and market multiples. 1

200 0.5

Key Points 150 Dec Jun Dec Jun 0

LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

Free resource growth: FNV noted its exposure to a nearly 18M acre prospective land

position and some ~$600M in exploration spend across its portfolio of assets, driving

future resource and production growth at zero cost to FNV shareholders. FNV also sees

the continued realization of gold prices well above company reserve and resource

pricing as likely to drive eventual reductions to cutoff grades, driving even further

resource growth with no offsetting cost inflation impact.

Precious metals deals currently most prevalent: FNV sees most growth opportunities

in gold today. The deal environment remains sufficiently busy with more than enough