Royalty, Stream and Working Interests

6 Months Ended

Jun. 30, 2023

Royalty, Stream and Working Interests

Note 7 - Royalty, Stream and Working Interests

(a)	Royalty, Stream and Working Interests

Royalty, stream and working interests, net of accumulated depletion and impairment charges and reversals, comprised the following:


					Impairment
			Accumulated		(charges)
As at June 30, 2023	Cost		depletion⁽¹⁾		reversals		Carrying value
Mining royalties	$	1,681.1	$	(739.5)	$	—	$	941.6
Streams		4,697.6		(2,149.3)		—		2,548.3
Energy		1,958.9		(795.8)		—		1,163.1
Advanced		412.5		(56.2)		—		356.3
Exploration		87.3		(10.0)		—		77.3
	$	8,837.4	$	(3,750.8)	$	—	$	5,086.6

Accumulated depletion includes previously recognized impairment charges and reversals.


					Impairments
			Accumulated		(charges)
As at December 31, 2022	Cost		depletion⁽¹⁾		reversals		Carrying value
Mining royalties	$	1,582.7	$	(716.9)	$	—	$	865.8
Streams		4,513.1		(2,065.7)		—		2,447.4
Energy		1,937.0		(755.5)		—		1,181.5
Advanced		426.6		(55.6)		—		371.0
Exploration		71.7		(9.9)		—		61.8
	$	8,531.1	$	(3,603.6)	$	—	$	4,927.5

Accumulated depletion includes previously recognized impairment charges and reversals.

Changes in royalty, stream and working interests for the periods ended June 30, 2023 and December 31, 2022 were as follows:


	Mining
	royalties		Streams		Energy		Advanced		Exploration		Total
Balance at January 1, 2022	$	903.0	$	2,623.0	$	1,258.3	$	308.8	$	56.2	$	5,149.3
Additions		44.1		1.6		12.1		72.7		7.9		138.4
Depletion		(40.2)		(177.2)		(66.4)		(0.2)		—		(284.0)
Impact of foreign exchange		(41.1)		—		(22.5)		(10.3)		(2.3)		(76.2)
Balance at December 31, 2022	$	865.8	$	2,447.4	$	1,181.5	$	371.0	$	61.8	$	4,927.5

Balance at January 1, 2023	$	865.8	$	2,447.4	$	1,181.5	$	371.0	$	61.8	$	4,927.5
Additions		9.6		184.3		5.9		57.4		15.0		272.2
Disposals		—		—		—		(3.3)		—		(3.3)
Transfers		71.6		—		—		(71.6)		—		—
Depletion		(19.9)		(83.3)		(31.6)		(0.2)		—		(135.0)
Impact of foreign exchange		14.5		(0.1)		7.3		3.0		0.5		25.2
Balance at June 30, 2023	$	941.6	$	2,548.3	$	1,163.1	$	356.3	$	77.3	$	5,086.6

Of the total net book value as at June 30, 2023, $4,186.5 million (December 31, 2022 - $3,980.2 million) is depletable and $900.1 million (December 31, 2022 - $947.3 million) is non-depletable.

(b)	Disposal of Royalty Interest

On February 22, 2023, Marathon exercised its option to buy-back 0.5% of Franco-Nevada’s initial 2.0% NSR on the Valentine Gold project by paying $7.0 million to Franco-Nevada. Franco-Nevada acquired the initial NSR on February 21, 2019 for $13.7 million (C$18.0 million). The carrying value of the NSR portion subject to the buy-back was $3.3 million (C$4.5 million). The Company recognized a gain on disposal of $3.7 million in the consolidated statement of income and comprehensive income for the six months ended June 30, 2023.