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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.
Franco-Nevada announces record results Franco-Nevada announces record results Franco-Nevada announces record results Franco-Nevada announces record results Franco-Nevada announces record results

Portfolio has made company’s 10th year the best

Staff reporter

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.