Franco-Nevada posts record results

According to Mining News Pro - Net income for the year was $344.1 million, or $1.83 per share.

The final quarter of 2019 was also the company’s best quarter ever, with revenue of $258.1 million on sales of 153,396 gold-equivalent oz. Cash costs were a low $287 per gold-equivalent oz. sold.

The strong results were boosted by production from First Quantum Minerals’ Cobre Panama mine in Panama, where Franco-Nevada has a gold and silver stream. Commercial production at the mine began in fall 2019. Franco-Nevada sold 43,554 gold-equivalent oz. from the mine last year, with sales expected to increase to 90,000-110,000 gold-equivalent oz. this year.

“Results benefited from the start of precious metals deliveries from Cobre Panama, strong production at other key assets and higher precious metals prices,” said Franco-Nevada CEO David Harquail in a release.

“Thanks to our diversified portfolio, we expect good overall growth in 2020 mostly driven by the continued Cobre Panama ramp-up despite a more conservative outlook for our energy assets. Franco-Nevada is generating substantial free cash flow and, post year-end, is now debt free.”

For 2020, Franco-Nevada expects even stronger results; the company is projecting attributable royalty and stream sales of between 550,000 and 580,000 gold-equivalent oz. for the year.

In addition to royalty and streaming revenue from gold (the majority of its revenue at $545.8 million), silver, platinum group metals and other mining assets, Franco-Nevada has investments of energy that brought in $86 million last year. The company has a target of no more than 20% of its revenue coming from energy.