<SEC-DOCUMENT>0001558370-17-004808.txt : 20171023
<SEC-HEADER>0001558370-17-004808.hdr.sgml : 20171023
<ACCEPTANCE-DATETIME>20170614171000
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001558370-17-004808
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20170614

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRANCO NEVADA Corp
		CENTRAL INDEX KEY:			0001456346
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			Z4
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		199 BAY STREET, SUITE 2000
		STREET 2:		COMMERCE COURT WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5L 1G9
		BUSINESS PHONE:		416-306-6317

	MAIL ADDRESS:	
		STREET 1:		199 BAY STREET, SUITE 2000
		STREET 2:		COMMERCE COURT WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5L 1G9
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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			Correspondence
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						<font style="display:inline;font-size:9pt;">&nbsp;</font></p>
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						<font style="display:inline;font-size:9pt;"><img src="correspg001.jpg" style="width: 2.433333in; height: 0.4083333in" alt="Picture 1"></font></p>
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					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-weight:bold;font-size:9pt;">Franco-Nevada Corporation</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;overflow: hidden;">
						<font style="display:inline;font-family:Arial Narrow;font-size:4pt;">&nbsp;</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-size:9pt;">199 Bay Street</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-size:9pt;">Suite 2000, P.O. Box 285</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-size:9pt;">Commerce Court West</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-size:9pt;">Toronto, Ontario&nbsp;&nbsp;M5L 1G9</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;overflow: hidden;">
						<font style="display:inline;font-family:Arial Narrow;font-size:2pt;">&nbsp;</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-size:9pt;">Tel: 416-306-6300</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-size:9pt;">Fax: 416-306-6330</font></p>
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						<font style="display:inline;font-family:Arial Narrow;font-size:4pt;">&nbsp;</font></p>
					<p style="margin:0pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 9pt;">
						<font style="display:inline;font-family:Arial Narrow;font-weight:bold;font-size:9pt;">www.franco-nevada.com</font></p>
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						<font style="display:inline;font-size:9pt;">&nbsp;</font></p>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">June 14, 2017</font>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Mr. Rufus Decker</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Accounting Branch Chief</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Office of Beverages, Apparel and Mining</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Division of Corporation Finance</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">U.S. Securities and Exchange Commission</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">100 F Street, NE</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Washington, DC, U.S.A.</font>
		</p>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Dear Mr. Decker,</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 10pt;">
			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">We write in response to the comments raised by the Staff of the U.S. Securities and Exchange Commission in the comment letter to Sandip Rana dated May&nbsp;31, 2017.&nbsp; For ease of reference, we have reproduced the question from your letter and provided our response directly below the question. </font>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;color:#000000;font-size:11.5pt;text-decoration:underline;">Form 40-F for Fiscal Year Ended December 31, 2016 </font>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;color:#000000;font-size:11.5pt;text-decoration:underline;">Exhibit 99.3 &#x2013; Audited Consolidated Financial Statements </font>
		</p>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;color:#000000;font-size:11.5pt;text-decoration:underline;">Note 2 &#x2013; Significant Accounting Policies </font>
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			<font style="display:inline;font-size:10pt;">&nbsp;</font>
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		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;color:#000000;font-size:11.5pt;text-decoration:underline;">(f) Royalty, Stream and Working Interests, page 11 </font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 10pt;">
			<font style="display:inline;font-size:10pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;color:#000000;font-size:11.5pt;text-decoration:underline;">(g) Working Interests in Oil and Gas Properties, page 12 </font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 10pt;">
			<font style="display:inline;font-size:10pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;color:#000000;font-size:11.5pt;">You capitalize assets related to &#x201C;advanced&#x201D; royalty, stream and working interests pursuant to IFRS 6. You also define &#x201C;advanced&#x201D; assets as projects that, in management&#x2019;s view, have a reasonable possibility of generating steady-state revenue for the Company in the next five years or are properties under development permitting, feasibility or advanced exploration. For each of these scenarios you note in your definition of &#x201C;advanced&#x201D;, please tell us how that definition is consistent with paragraph 5(b) of IFRS 6, including why each of these scenarios has not already demonstrated technical feasibility and commercial viability and how your use of a five-year timeline is consistent with IFRS 6. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 10pt;">
			<font style="display:inline;font-size:10pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">IFRS 6 </font><font style="display:inline;font-style:italic;font-size:11pt;">Exploration and Evaluation of Mineral Resources </font><font style="display:inline;font-size:11pt;">does not define the term &#x201C;technical feasibility&#x201D; or the term &#x201C;commercial viability&#x201D;, nor does it prescribe criteria for demonstrating the technical feasibility and commercial viability of extracting a mineral resource. IFRS 6 further does not distinguish between mineral reserves and mineral resources. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 10pt;">
			<font style="display:inline;font-size:10pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">The lack of prescriptive guidance or evidentiary thresholds&nbsp;has resulted in divergence in the application of IFRS 6 in the industry. Some entities consider that technical feasibility and commercial viability is demonstrated only when proven and probable mineral reserves are defined, typically through a pre-feasibility (&#x201C;PFS&#x201D;) or feasibility study (&#x201C;FS&#x201D;). &nbsp;Other entities use judgement to determine when technical feasibility and </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><div style="width:100%">

		<p style="margin:0pt 0pt 24pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 11pt;">

			<font style="display:inline;font-size:11pt;">Page 2</font>

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</div></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;"><font style="display:inline;font-size:11pt;">commercial viability has been demonstrated by considering, for instance, results of a scoping study or preliminary economic analysis (&#x201C;PEA&#x201D;), proximity of the area to a successfully developed and producing mine, or internal management analysis. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 6pt;">
			<font style="display:inline;font-size:6pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Given the divergence in the application of the standard, Franco-Nevada Corporation (the &#x201C;Company&#x201D;) has developed and consistently applied a list of criteria it considers when determining when assets have reached technical feasibility and commercial viability, and are no longer&nbsp;in the scope of IFRS 6, but rather should be accounted for in accordance with IAS 16 </font><font style="display:inline;font-style:italic;font-size:11pt;">Property, Plant and Equipment</font><font style="display:inline;font-size:11pt;">. These scenarios are as follows:</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11pt;text-decoration:underline;">The property is in development </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">This refers to properties where facilities for the extraction, treatment, gathering, transportation and storage of mined material exist or are underway. The Company believes that if the operator has or is in the process of building such facilities, technical feasibility and commercial viability has been sufficiently demonstrated.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11pt;text-decoration:underline;">The property is in permitting</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">This refers to properties which have demonstrated technical feasibility and commercial viability and the operator is in the process of obtaining certain permits necessary to start development or construction activities. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11pt;text-decoration:underline;">The property is in the feasibility stage</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">This refers to properties where technical feasibility and commercial viability have been demonstrated through the completion of a positive PFS or FS and proven and probable reserves have been defined. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11pt;text-decoration:underline;">The property is in advanced exploration</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">This refers to properties where proven and probable reserves may not have been established,&nbsp;but there exists several positive indicators such as the existence of mineral resources, the implementation of a large-scale infill drilling program and/or the completion of a positive PEA which has demonstrated, on a conceptual basis, the potential viability of the project.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11pt;text-decoration:underline;">The property has a reasonable possibility of generating steady-state revenue for the Company in the next five years</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 9pt;">
			<font style="display:inline;font-size:9pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">The five-year timeline was established by the Company to capture potential situations where the owner of a project has indicated through its public disclosures that although mineral reserves and resources may exist, there is uncertainty with respect to the eventual development of the project due to, for instance, financing constraints or prioritization of other projects it may own, such that cash flow to the Company from such project is uncertain. It also captures situations where technical feasibility and commercial viability may have been demonstrated in the past, but where changes in market conditions, such as changes in long-term commodity prices which were used to define the mineral reserves and resources, have adversely impacted estimated future cash flows. In such instances, the Company has concluded the commercial viability of the project and resulting cash flows to the Company to be in doubt. The Company will consider whether indicators of impairment exist, perform an impairment assessment in accordance with IAS 36 </font><font style="display:inline;font-style:italic;font-size:11pt;">Impairment of Assets, </font><font style="display:inline;font-size:11pt;">record any resulting impairment loss in its statement of operations, and reclassify the property as an exploration asset. The Company&#x2019;s impairment process is outlined in Note 2 (h) </font><font style="display:inline;font-style:italic;font-size:11pt;">Impairment of non-financial assets</font><font style="display:inline;font-size:11pt;"> to&nbsp;its financial statements. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;"></font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><div style="width:100%">

		<p style="margin:0pt 0pt 24pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 11pt;">

			<font style="display:inline;font-size:11pt;">Page 3</font>

		</p>

</div></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;"><font style="display:inline;"></font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">We note an inconsistency between the Company&#x2019;s disclosure in Note 2 (f), where we state that both advanced and exploration assets are recorded at cost and capitalized in accordance with IFRS 6 </font><font style="display:inline;font-style:italic;font-size:11pt;">Exploration and Evaluation of Mineral Resources</font><font style="display:inline;font-size:11pt;">. &nbsp;We believe the Company&#x2019;s accounting policy should be clarified to indicate that advanced assets are appropriately accounted for in accordance with IAS 16 </font><font style="display:inline;font-style:italic;font-size:11pt;">Property, Plant and Equipment. </font><font style="display:inline;font-size:11pt;">In future filings, we propose an amendment to the policy note in the financial statements to clarify our accounting policy for advanced assets, as shown in Exhibit I. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">We note that whether advanced assets are accounted in accordance with IAS 16 or IFRS 6 should not result in any difference in the amount of costs that are capitalized for a particular asset. Due to the nature of the Company&#x2019;s business, capitalized costs consist of upfront acquisition costs the Company pays to owners of the project to acquire a royalty, stream or working interest. There are typically no further costs that are incurred or capitalized subsequent to the initial acquisition of the interest. Furthermore, capitalized costs of advanced assets under IAS 16 and exploration assets under IFRS 6 are not depleted until such time as revenue generating activities commence.&nbsp; </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 6pt;">
			<font style="display:inline;font-size:6pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11.5pt;">Please also tell us how and when you determine interests should be transferred from the scope of IFRS 6 to IAS 16.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">As part of internal control over financial reporting, management conducts quarterly reviews of its assets capitalized under IFRS 6 and IAS 16 in order to identify changes in the appropriate classification of its assets as well as potential triggers for impairment that may have occurred during the reporting period. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">On a quarterly basis, management reviews public disclosures and announcements issued by the operators of the projects where the Company has royalty, stream or working interests, in order to obtain an update on significant results, activities and/or progress taking place at the project. The review forms part of management&#x2019;s quarterly impairment assessment process, and is also used as input for the quarterly portfolio update which the Company publicly releases along with its financial results. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Management also prepares or updates &#x201C;asset assessments&#x201D;, which are internal memos providing, for each of the Company&#x2019;s royalty, stream or working interests, a summary of the terms and conditions of the agreement, a description of the asset, and a summary of recent activities carried out by the operator of the asset. Asset assessments are based on publicly available information from the operator, observations by the Company as part of its regular visits to the project, and/or information obtained directly from communications with operators.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Reclassifications between advanced and exploration assets and potential impairment issues may be identified either during the review of public disclosures, and/or as part of the asset assessment update. &nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-style:italic;font-size:11.5pt;">Please also tell us when you perform your impairment assessment pursuant to paragraph 17 of IFRS 6.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">The Company respectfully advises the Staff that the Company&#x2019;s impairment process is outlined in Note 2 (h) to its financial statements. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">When reclassifications from exploration assets to advanced assets are made, management prepares a model which estimates the fair value of the interest based on estimated future cash flows. The information used in the estimation of future cash flows is derived from a variety of sources, such as (i) operators&#x2019; publicly disclosed information (mineral reserves and resources as detailed in technical reports, operational guidance, press releases, corporate websites); (ii) life-of-mine models obtained from operators (in certain circumstances); (iii) consensus commodity price assumptions from several research analysts; and (iv) &nbsp;</font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><div style="width:100%">

		<p style="margin:0pt 0pt 24pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 11pt;">

			<font style="display:inline;font-size:11pt;">Page 4</font>

		</p>

</div></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;"><font style="display:inline;font-size:11pt;">management estimates. Management then compares the estimated fair value of the interest to the carrying value of the asset to determine whether an impairment loss or reversal is required to be recognized. </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Based on the above, the Company believes that it complies with the requirement to perform impairment assessments pursuant to IFRS 6, paragraph 17.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">We trust the foregoing responses are satisfactory and thank you in advance for your attention to this matter.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Sincerely,</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-weight:bold;font-size:11pt;">Franco-Nevada Corporation</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<div style="width:100%;"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse:collapse;width: 100.00%;margin-left:0pt;">
			<tr>
				<td valign="top" style="border-right:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;width:50.00%;border-bottom:1pt solid #000000 ;padding:0pt;">
					<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
						<font style="display:inline;font-size:11pt;background-color: #FFFFFF;">/s/ Sandip </font><font style="display:inline;font-size:11pt;">Rana</font></p>
				</td>
				<td valign="top" style="border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;width:50.00%;padding:0pt;">
					<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
						<font style="display:inline;font-size:11pt;">&nbsp;</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="border-right:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;width:50.00%;border-top:1pt solid #000000 ;padding:0pt;">
					<p style="margin:0pt;line-height:100%;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
						<font style="display:inline;color:#000000;font-size:11pt;">Sandip Rana, Chief Financial Officer</font></p>
				</td>
				<td valign="top" style="border-left:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;width:50.00%;padding:0pt;">
					<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
						<font style="display:inline;font-size:11pt;">&nbsp;</font></p>
				</td>
			</tr>
		</table></div>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;font-weight:bold;"></font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;"></font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><div style="width:100%">

		<p style="margin:0pt 0pt 24pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 11pt;">

			<font style="display:inline;font-size:11pt;">Page 5</font>

		</p>

</div></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;"><font style="display:inline;"></font>
		</p>
		<p style="margin:0pt;text-align:center;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;font-weight:bold;">Exhibit I</font>
		</p>
		<p style="margin:0pt;text-align:center;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;font-style:italic;">Proposed amended disclosure </font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 12pt;">
			<font style="display:inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Note 2 &#x2013; Significant accounting policies</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalty, stream and working interests</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Royalty, stream and working interests consist of acquired royalty interests, stream metal purchase agreements, and working interests in producing, advanced/development and exploration stage properties. Royalty, stream and working interests are recorded at cost and capitalized as tangible assets with finite lives. They are subsequently measured at cost less accumulated depletion and accumulated impairment losses. The cost of royalty, stream and working interests is determined by reference to the cost model under IAS 16 </font><font style="display:inline;font-style:italic;font-size:11pt;">Property, Plant and Equipment</font><font style="display:inline;font-size:11pt;">. The major categories of the Company&#x2019;s interests are producing, advanced and exploration. Producing assets are those that have generated revenue from steady-state operations for the Company or are expected to in the next year. Advanced assets are interests on projects that in management&#x2019;s view have a reasonable possibility of generating steady-state revenue for the Company in the next five years or include properties under development, permitting, feasibility or advanced exploration. Exploration assets represent early stage exploration properties that are speculative and are expected to require more than five years to generate revenue, if ever, or are currently not active.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Producing mineral royalty and stream interests are depleted using the units-of-production method over the life of the property to which the interest relates. The life of the property is estimated using life of mine models specifically associated with the mineral royalty or stream properties which include proven and probable reserves and may include a portion of resources expected to be converted into reserves. Where life of mine models are not available, the Company uses publicly available statements of reserves and resources for the mineral royalty or stream properties to estimate the life of the property and portion of resources that the Company expects to be converted into reserves. Where life of mine models and publicly available reserve and resource statements are not available, depletion is based on the Company&#x2019;s best estimate of the ounces to be produced and delivered under the contract. The Company relies on information available to it under contracts with operators and /or public disclosures for information on reserves and resources from the operators of the producing mineral and stream interests.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">Producing oil &amp; gas interests are depleted using the units-of-production method over the life of the property to which the interest relates, which is estimated using available estimated proved and probable reserves specifically associated with the oil &amp; gas properties. For the oil &amp; gas interests, management engages an independent petroleum consultant to prepare annual reserve reports.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">On acquisition of a producing royalty, stream or working interest, an allocation of its fair value is attributed to the exploration potential of the interest. The estimated fair value of this acquired exploration potential is recorded as an asset (non-depreciable interest) on the acquisition date. Updated reserve and resource information obtained from the operators of the royalty, stream or working interest properties is used to determine the amount to be converted from non-depreciable interest to depreciable interest. If the cost of a royalty, stream or working interest includes contingent consideration, the contingent consideration is measured at fair value on the date of acquisition and included in the cost of the interest. Any changes in the fair value of the contingent consideration subsequent to the acquisition date are recorded against the cost of the interest acquired.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;color:#000000;font-size:11pt;">Royalty, stream and working interests for </font><font style="display:inline;color:#2D96D2;font-size:11pt;text-decoration:underline;background-color: #FFFFFF;">producing and</font><font style="display:inline;color:#000000;font-size:11pt;"> advanced&nbsp;</font><font style="display:inline;text-decoration:line-through;color:#B5072D;font-size:11pt;">and exploration</font><font style="display:inline;color:#000000;font-size:11pt;"> assets are recorded at cost and capitalized in accordance with </font><font style="display:inline;color:#2D96D2;font-size:11pt;text-decoration:underline;">IAS 16, while exploration assets are recorded at cost and capitalized in </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><div style="width:100%">

		<p style="margin:0pt 0pt 24pt;text-align:right;font-family:Times New Roman,Times,serif;font-size: 11pt;">

			<font style="display:inline;font-size:11pt;">Page 6</font>

		</p>

</div></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><p style="margin:0pt;color:#000000;font-family:Times New Roman,Times,serif;font-size: 11pt;"><font style="display:inline;color:#2D96D2;font-size:11pt;text-decoration:underline;">accordance with</font><font style="display:inline;color:#000000;font-size:11pt;"> IFRS 6 </font><font style="display:inline;font-style:italic;color:#000000;font-size:11pt;">Exploration for and Evaluation of Mineral Resources</font><font style="display:inline;color:#000000;font-size:11pt;">. Acquisition costs of advanced and exploration stage royalty, stream and working interests are capitalized and are not depleted until such time as revenue-generating activities begin. The Company may receive advanced minimum payments prior to the commencement of production on some of its interests. In these circumstances, the Company would record depletion expense as described above, up to a maximum of the total of the advanced minimum payment received.</font>
		</p>
		<p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>

</div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">

</div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
