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:

Adrian Day, Global Analyst (8/16/15)
"Franco-Nevada Corp. is the leading gold royalty company. The largest, with a market cap of almost $7 billion, it also has sector-leading asset diversification, political safety, the strongest balance sheet and top management. . .costs continue to be low and reasonably stable, a significant advantage of the royalty business model. . .if you can only buy one gold company, if you want a conservative, buy-and-hold company, that company should be Franco-Nevada."

Phil Russo, Raymond James (8/11/15)
"We reiterate our Outperform rating and $54/share target price. With solid production results from its Latin America and oil and gas segments, Franco-Nevada Corp. essentially met expectations for Q2/15 as the benefits of a highly diversified royalty portfolio offset slightly weaker than expected U.S. and Canadian gold business segments. With a healthy balance sheet and increased war chest vis-à-vis its expanded credit line, the company is well positioned to add to its portfolio in the current commodity environment."

Josh Wolfson, Dundee Capital Markets (8/11/15)
"Franco-Nevada Corp. reported Q2/15 adjusted earnings per share of $0.15, above our $0.13 estimate. . .the company reported total Au eq production of 83.0 Koz Au eq, 2% above our 81.2 Koz Au eq estimate. . .primarily due to better performance reported at Candelaria. . .oil and gas revenues of $10.3M were 18% above our $8.7M estimate, primarily related to a lower-quality differential than estimated. . .Franco-Nevada reported it was making progress with its Cobre Panama stream amendments with mine operator First Quantum. . .a resolution of the amendments has the potential to be an important catalyst."

Cosmos Chiu, CIBC World Markets (8/11/15)
"Franco-Nevada Corp. reported a solid Q2/15. The key takeaway from the quarter is that the company's stock continues to be a good defensive name to own in today's volatile commodity environment. Franco has a high margin and scalable business generating an approximately 75% earnings before interest, tax, depreciation and amortization deductions margin. . .with a strong balance sheet, Franco has maintained its dividend (which was increased in Q1/15) and now has a sector-leading 2% dividend yield. . .Franco remains a top pick in the sector."

Canaccord Genuity (7/10/15)
"We estimate Q2/15 earnings of CA$0.17 (fully-diluted basis) and cash flow of CA$0.48 for Franco-Nevada Corp., generally driven by an improvement in oil prices. . .we maintain our Buy recommendation. . .in Q3/15 we expect the company to deploy cash into Cobre Panama. As well, we continue to anticipate an oil/gas royalty acquisition."

Josh Wolfson, Dundee Capital Markets (7/8/15)
"We have completed an analysis of the potential risk to Franco-Nevada Corp. in conjunction with a proposed tax reassessment by the Canadian Revenue Agency and Silver Wheaton Corp.'s foreign earnings. We believe the risk of a historical tax audit or reassessment on the matter for Franco-Nevada is very low and forecast no impact to 2015/2016 cash flows even with tax changes."

More Expert Comments

Experts Commenting on This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Matt Badiali, Editor – Stansberry Research
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
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
Josh Wolfson, VP, Senior Analyst Gold & Precious Metals – Dundee Capital Markets

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Franco-Nevada Corp. Content