Franco-Nevada Corp.

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.

Expert Comments:

"Over the last couple of months, we have been buying a lot of companies. The seniors include Franco-Nevada Corp., one of our favorite royalty companies. . .if you want only one gold company, buy Franco. It has the best people in the business. It has a great balance sheet, strong cash flow and a diversified asset base with a strong growth profile. It has about 350 mineral royalties, of which about 35 are producing now, so there is plenty of potential. It is a good buy at less than $50/share." read more >

"Franco-Nevada Corp. takes out a lot of the operational risk and capital deployment risk associated with the mining business. If you look at the assets deployed relative to the cash generated, the royalty and streaming companies enjoy tremendous market share in terms of margin in the mining industry relative to the capital that they have deployed. . .Sprott Gold Miners ETF is skewed to the royalty and streaming companies because of margin relative to capital deployed." read more >

Phil Russo, Raymond James (6/24/15)
"We are upgrading Franco-Nevada Corp. to Outperform (from Market Perform) and increasing our target price to US$60/share (from US$58/share). . .we expect the recent valuation divide to be short lived for Franco given its premier investment case, centering on lower overall revenue and cash flow risk—a desired profile for investors as commodity markets provide ongoing pricing uncertainty."

"Our biggest streaming holding is in Franco-Nevada Corp. Franco-Nevada is the gold standard of royalty and streaming companies. It has some of the highest-quality streams and royalties in the world, a well-diversified portfolio, cash on its balance sheet and management that is willing to invest at the down points in the cycle." read more >

Phil Russo, Raymond James (3/26/15)
"Franco-Nevada Corp.'s gold equivalent production of 93 Koz in Q4/14 was 13% above our 82 Koz estimate, bringing full-year production to midpoint of 2014 guidance. . .the company raised its annualized dividend from $0.80/share to $0.84/share, a 5% increase. The increased quarterly dividend will go into effect in Q2/15."

James Fraser, Resource Opportunities (1/30/15)
"Often the most valuable asset in a mining project is a royalty. . .because it has no financing risk, and it trades at a premium. Franco-Nevada Corp., the grand-daddy of the royalty space, has demonstrated how successful a royalty business can be when management consistently executes on royalty acquisitions. Franco-Nevada has built its portfolio into a CA$10.8 billion market cap company, the largest precious metals royalty play in the world. The stock, trading at a 52-week high, has outperformed both the gold price and gold equities in the last several years."

More Expert Comments

Experts Commenting on This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Cosmos Chiu, Executive Director of Precious Metals Equity Research – CIBC World Markets
John Ciampaglia, Executive VP of Corporate Development – Sprott Asset Management
Adrian Day, Founder – Adrian Day Asset Management
Doug Groh, Senior Research Analyst – Tocqueville Asset Management L.P.
Jason Hamlin, Founder – Gold Stock Bull
John Hathaway, Senior Managing Director – Tocqueville Asset Management L.P.
Frank Holmes, Chairman – U.S. Global Investors
Andrew Kaip, Analyst – BMO Capital Markets
Don Maclean, Senior Analyst – Paradigm Capital
Chris Mancini, Research Analyst – Gabelli Gold Fund
David Morgan, Publisher – Silver Investor
Jordan Roy-Byrne, Editor/CMT The Daily Gold
Rick Rule, Chairman – Sprott Global Resource Investments Ltd.
Phil Russo, Research Associate – Raymond James
Eric Sprott, CEO/Chair – Sprott Asset Management
Porter Stansberry, Pres & CEO – Stansberry Research
Alex Terentiew, Mining Analyst – Raymond James

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Franco-Nevada Corp. Content