PROFIT & LOSS

Franco-Nevada announces record results

Precious metal streaming company Franco-Nevada (CN:FNV) has outlined another phase of growth ahead as it unveiled a string of records in its 2017 results, released after yesterday’s market close.

Staff reporter
Portfolio has made company’s 10th year the best

Portfolio has made company’s 10th year the best

The company set a new record amount of 497,745 gold equivalent ounces sold, up 7.2% on 2016, a 10.6% increase in revenue to a record US$675 million, record adjusted EBITDA of $516.1 million and a record net income of $1.06 per share.

It also outlined a new record of $167.9 million of cash and DRIP (dividend reinvestment plan) dividends paid, and recently declared a quarterly dividend of 23c to be paid on March 29.

"I am pleased that Franco-Nevada's 10th full year since its IPO was its best year ever," CEO David Harquail said.

He said the debt-free company was "well-positioned for another 10 years of success," outlining expected growth through the ramp-up of First Quantum Minerals' Cobre Panama project, Kinross Gold's Tasiast expansions in Mauritania, smaller mine start-ups in 2018-19, the 50% expansion of Stillwater's Blitz PGM project and the full-field development of its US oil and gas royalties tracking ahead of original expectations. 

Franco-Nevada's oil and gas revenues rose 34.6% in the fourth quarter, reflecting higher prices and production levels, but precious metals still represented the bulk of revenue at 89.2%.

For 2018, the company expects attributable royalty and stream production to total 460,000-490,000oz AuEq and oil and gas assets to generate $50-$60 million.

Franco-Nevada's five-year outlook, assuming no further acquisitions and Cobre Panama being fully ramped up by 2022, anticipates 565,000-595,000oz AuEq by 2022 and oil and gas revenue increasing to $80-$90 million.

Shares in the company have ranged between C$81.01-$110.19 over the past year and are down more than 9% year-to-date after closing almost 1% lower yesterday to $91.12.

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