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Franco-Nevada ups net income 86% in Q2 2021, declares dividend

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(Kitco News) - Franco-Nevada, the leading gold-focused royalty and streaming company, announced today that its gold equivalent ounces (GEOs) sold in Q2 2021 were 166,856, an increase of 60% from the 104,330 sold in Q2 2020.

The company said that higher contributions from its largest streams as well as the additions of the Vale Royalty Debentures and Condestable stream were slightly offset by lower production from Hemlo. Also, the company noted that the impact of COVID-19 on its assets continued to be minimal this quarter, in comparison to Q2 2020, where a number of the company’s assets were impacted by suspensions of production.

Revenue from Franco-Nevada’s Energy assets increased to $47.3 million in Q2 2021 compared to $14.6 million in Q2 2020. Revenues were positively impacted by higher realized prices across the portfolio compared to Q2 2020 which were historically low.

Franco-Nevada said it generated adjusted EBITDA of $290.0 million in Q2 2021, an 83% increase over Q2 2020. The company’s net income was $175.3 million in Q2 2021, which is 86% more than in Q2 2020.

Additionally, Franco-Nevada announced that its Board of Directors has declared a quarterly dividend of $0.30 per share. The dividend will be paid on September 30, 2021 to shareholders of record on September 16, 2021.

Based on the strong results year-to-date, Franco-Nevada said it now anticipates GEOs sales for 2021 to be near the higher end of the previously announced guidance and has revised the GEOs sold guidance range to 590,000 to 615,000 GEOs. Franco-Nevada is also raised its Energy revenue guidance to reflect higher commodity prices. Energy revenue guidance is now expected to range from $155 to $170 million, an increase from the prior range of $115 to $135 million.

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends.

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