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:

John Bridges, J.P. Morgan (9/24/15)
"Franco-Nevada Corp. is planning to draw on its revolver for the first time to participate in new opportunities arising as the bottom of the cycle (hopefully) approaches. Franco is focused on a diversified portfolio with stable, long-life, low-risk assets balancing assets with shorter life but large optionality."

Andrew Kaip, BMO Capital Markets (9/13/15)
"We are initiating coverage of Franco-Nevada Corp. with an Outperform rating and CA$70/share target price. . .it is the stock's valuation that provides it with a competitive edge relative to peers. Investment in Franco-Nevada benefits from asset diversification with no one royalty/stream exposing the company to increased asset risk. Further, we believe shares of its stock will continue to benefit from the rotation out of mining equities due to Franco-Nevada's reputation as a safe-haven investment in a weak metal price environment."

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."

More Expert Comments

Experts Following This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Matt Badiali, Editor – Stansberry Research
John Bridges, Analyst – J.P. Morgan
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
James Fraser, Mining Analyst
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