Franco-Nevada Reports Solid Q4 Earnings Amid Record Gold Prices, Eyes 25% Revenue Growth In 2025

Franco-Nevada Corporation FNV shares are trading higher premarket on Monday after the company reported fourth-quarter results.

Revenue rose 6% year over year (+30% Y/Y excluding Cobre Panama) to $321.0 million, beating the consensus of $305.85 million.

The company saw strong production from Candelaria, new assets, and benefiting from record gold prices. The company sold 120,063 GEOs in the quarter, down 21% Y/Y, owing to impact of the production halt at Cobre Panama.

As of December 31, 2024, Franco-Nevada held 6,216 stream gold ounces and 150,000 stream silver ounces in inventory.

Adjusted EBITDA increased 9% Y/Y to $277.4 million in the quarter. Adjusted EPS of $0.95 exceeded the street view of $0.89.

Operating cash flow stood at $243.0 million. As of December 31, 2024, cash and cash equivalents came in at $1.45 billion.

The company disclosed a dividend per share of $0.38 effective first quarter of 2025, representing an annual increase of 5.6%.

Paul Brink, CEO said, “Post year-end, we also announced a financing package to support Discovery Silver’s acquisition of Newmont’s Porcupine Complex in Timmins. Together, the transactions have the potential to add 85-95K GEOs per annum to our medium-term production profile. These new additions, along with a number of new mine starts, contribute to the strong growth outlined in our 2025 guidance and outlook over the next five years.”

”We are encouraged that President Mulino has indicated a willingness to discuss Cobre Panama this year and that sentiment in Panama now appears more supportive of restarting the mine.”

Outlook: The company expects revenue for 2025 to be higher by 25% Y/Y.

Franco-Nevada expects a 14% Y/Y increase in Precious Metal GEOs and a 7% Y/Y increase in Total GEOs for 2025, excluding contributions from Cobre Panama.

For 2028, the company targets precious Metal GEOs to rise to between 400,000 and 440,000 GEOs, and Total GEOs to increase to between 505,000 and 565,000 GEOs, reflecting an 18% and 15% growth, respectively, compared to 2024.

For 2029, Precious Metal GEOs are projected to reach between 375,000 and 415,000 GEOs, and Total GEOs to grow to between 490,000 and 550,000 GEOs, representing an 11% and 12%, respectively, compared to 2024.

The five-year outlook anticipates the start of production at Valentine Gold, Stibnite, Eskay Creek, Castle Mountain Phase 2, the Coroccohuayco project at Antapaccay, the planned underground expansion at Candelaria, and the long-term expansion of Magino.

Investors can gain exposure to the stock via VanEck Gold Miners ETF GDX.

Price Action: FNV shares are up 1.06% at $144.80 premarket at the last check Monday.

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