Franco-Nevada

1. Volatility in commodity prices: Franco-Nevada’s revenue and profitability are highly dependent on the prices of gold, silver, and other commodities. A decline in these prices can significantly impact the company’s financial performance.

2. Geographic concentration: A large portion of Franco-Nevada’s assets and operations are concentrated in North America. Any adverse political or economic events in this region can have a significant impact on the company’s business.

3. Dependence on mining partners: Franco-Nevada does not own or operate any mines; it earns its revenue from royalties and streams on mining projects operated by its partners. Any operational issues, delays, or changes in partners’ strategies can negatively impact the company’s cash flow.

4. Exchange rate risk: As a Canada-based company, Franco-Nevada is exposed to currency fluctuations between the Canadian and U.S. dollars. This can impact the company’s revenue and profitability, as well as the value of its assets located in other countries.

5. Environmental and regulatory risks: The mining industry is subject to strict environmental regulations, which can result in higher costs and delays for the company’s partners. Moreover, any changes in regulations or policies related to mining can affect Franco-Nevada’s business operations.

6. Credit risk: Franco-Nevada provides royalty and streaming financing to its partners, making the company exposed to credit risk. In case of default or bankruptcy of its partners, the company’s cash flow and profitability can be negatively impacted.

7. Competition risk: The streaming and royalty industry is becoming increasingly competitive, with more companies entering the market. This can lead to pricing pressure and reduced margins for Franco-Nevada.

8. Natural disasters and force majeure events: Natural disasters, such as earthquakes or hurricanes, can impact mining operations and disrupt production, affecting Franco-Nevada’s revenue.

9. Legal and regulatory challenges: Franco-Nevada operates in multiple countries, making it subject to various legal and regulatory challenges, including changes in tax laws, disputes with partners, and compliance with local laws and regulations.

10. Financial market risks: As a publicly traded company, Franco-Nevada is exposed to risks associated with financial markets, including fluctuations in stock prices, interest rates, and credit availability. This can impact the company’s ability to raise capital and access financing for future projects.