Franco-Nevada Corporation ((TSE:FNV)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Franco-Nevada Corporation’s recent earnings call for the second quarter of 2025 painted a largely positive picture, underscoring the company’s record financial results and robust performance in the precious metals sector. Despite facing some challenges with iron ore and oil prices, as well as increased costs, the overall sentiment was optimistic, buoyed by strategic acquisitions and a promising growth outlook.
Record Financial Results
Franco-Nevada reported an impressive record revenue of $369.4 million, marking a 42% increase compared to the previous year. This surge was primarily driven by high gold prices. The company’s adjusted EBITDA also saw a significant rise, reaching $365.7 million, which represents a 65% year-over-year increase.
Significant Portfolio Developments
The company made notable strides in its portfolio with the acquisition of a royalty on IAMGOLD’s Cote Gold Mine, which achieved nameplate throughput ahead of schedule. Additionally, Franco-Nevada secured a royalty on AngloGold’s Arthur project in Nevada, further strengthening its asset base.
Strong Precious Metals Performance
Franco-Nevada’s performance in the precious metals segment was robust, with precious metal GEOs sold increasing by 12% year-over-year. Gold prices averaged 40% higher, while silver prices rose by 17% compared to the previous year, contributing to the company’s strong financial results.
Constructive Developments in Panama
The company reported positive developments in Panama, with the approval of the preservation and safe maintenance plan for Cobre Panama. This included shipments of remaining copper concentrate and a positive shift in sentiment towards restarting operations.
Diversified Revenue Growth
Franco-Nevada’s revenue growth was diversified, with recent acquisitions like Yanacocha and Western Limb contributing positively. The company anticipates further revenue from new mines such as Tocantinzinho, Greenstone, and Salares Norte.
Available Capital for Future Acquisitions
With $1.35 billion in available capital, Franco-Nevada is well-positioned to pursue future acquisitions, aiming to add long-life, high-quality assets to its portfolio.
Challenges with Iron Ore and Oil Prices
Despite the strong performance in precious metals, Franco-Nevada faced challenges with volatile and lower iron ore and oil prices compared to the previous year.
Antapaccay Performance Below Expectations
The performance of Antapaccay was below expectations due to the timing of deliveries. However, the company expects a stronger performance in the second half of the year.
Increased Costs
Franco-Nevada experienced an increase in the cost of sales, which rose to $33.5 million from $29.1 million last year. Depletion costs also increased due to more GEOs from higher per ounce depletion assets.
Forward-Looking Guidance
Franco-Nevada’s forward-looking guidance remains optimistic, with the company maintaining its 2025 target of 465,000 to 525,000 total GEOs. The company is confident in its growth outlook, driven by strategic acquisitions and potential project developments. Revenue reached a record $369.4 million, largely due to higher gold and silver prices, and the company continues to focus on expanding its portfolio.
In summary, Franco-Nevada Corporation’s second quarter of 2025 earnings call highlighted a positive trajectory for the company, with record financial results and strategic portfolio developments. Despite some challenges with commodity prices and increased costs, the overall sentiment remains optimistic, supported by a strong performance in the precious metals sector and a well-capitalized position for future growth.