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Franco-Nevada Corporation is a resource royalty and investment company owning a diversified portfolio of precious and base metal royalties, oil and natural gas royalties and other interests. The portfolio includes assets in production, under development or in the exploration phase mostly located in geopolitically secure countries. Franco-Nevada intends to use its free cash flow to expand its portfolio and pay dividends.
The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Cosmos Chiu, CIBC World Markets
"We have fine-tuned our model ahead of the quarter to reflect actual commodity prices and to incorporate actual production results for assets from which Franco-Nevada Corp. derives royalty revenue. Overall, the performances of the underlying assets have been tracking reasonably well. . .2013 guidance provided last quarter was for 215–235 Koz Au eq (inclusive of 100–110 Koz from various stream agreements) with an additional $55M–65M in oil and gas revenue. We continue to believe guidance is on the conservative side. Higher royalty revenues are expected in 2013 from a number of the company's gold royalties, including Detour Lake, Gold Quarry, Hemlo NPI and Duketon, and from its oil and gas assets. Franco-Nevada remains a top pick in the precious metals space, with a strong balance sheet and steady cash flow generation."
The Gold Report Interview with Greg Orrell
"We own a couple of the big royalty companies in our portfolio [like] Franco-Nevada Corp. The company [has] committed significant dollars to individual projects of late. . .however, with the diversification of [its] asset base at this point, it should not be a problem. [Franco-Nevada is] positioned to grow revenues substantially over the next three years. Overall, I do like the royalty model."
The Gold Report Interview with Greg Dorsey
"We are bullish on Franco-Nevada Corp. If you look at it just on a price/earnings basis, you will scratch your head and wonder why you would pay up for something trading 30 times earnings. But the company has done an incredible job of sussing out good properties. It puts up money to advance mine development and it streams for the life of the project. . .I think precious metals represents about 90% of its revenue right now, but Franco wants to move into other commodities. . .Cobre Panama could be a big winner for Franco in the next decade."
The Gold Report Interview with Adrian Day
"Most of the royalty companies do have a certain amount of their revenue from non-gold. Franco-Nevada Corp. has a royalty on Stillwater Mining Co., which is PGM. . .Gold Royalties signed an agreement with Franco-Nevada whereby Franco has the right to participate in up to 50% in certain royalties that Gold Royalties comes across. It's as great deal for Franco because it can increase its royalty portfolio without putting the time or the people into looking for small royalties. . .if you're interested in seniors, look at Franco-Nevada."
The Gold Report Interview with Jordan Roy-Byrne
"We first bought Franco-Nevada Corp. in October 2011 at $35/share. It was a very strong stock that had corrected and appeared to have bottomed. Franco-Nevada went up to $60/share recently, but it's had a severe correction because of a huge amount of redemptions. It's about $46/share, about 20% off its high. It has cash-flow growth, and it's consistently leveraged to the bull market. Now is the time to buy. It's a no brainer. That's what I'm looking for. Don't buy the strong stocks when they are making all-time highs. Buy them after they've corrected, when they offer value."
Franco-Nevada Corp. Content
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