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Franco-Nevada reports strong Q3 results, ‘setting the stage’ for a record year

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(Kitco News) - Franco-Nevada reported today that the company's gold equivalent ounces (GEO) sold in Q3 2021 were 146,495 GEO, an increase of 8.7% from the 134,817 GEO sold in Q3 2020.

The company said that higher contributions from Cobre Panama and Antamina, as well as the additions of the Vale Royalty Debentures and Condestable stream, were partly offset by lower deliveries from Hemlo.

“There was limited impact from COVID-19 on our assets this quarter, in comparison to Q3 2020, where a number of our assets were impacted by suspensions of production,” the company noted in a press-release.

The company added that its revenue from the energy assets increased to $55.1 million in Q3 2021 compared to $22.8 million in Q3 2020, mainly due to higher realized prices across the portfolio relative to the prior period.

Franco-Nevada also reported that its Q3 2021 net income was $166 million, an increase of 8% over Q3 2020, whereas its year-to-date 2021 net income jumped 243% to $512.8 million.

Importantly, the company also announced that its Board of Directors has declared a quarterly dividend of $0.30 per share. The dividend will be paid on December 23, 2021 to shareholders of record on December 9, 2021.

“Franco-Nevada delivered a strong third quarter, setting the stage for a record year in 2021. Our diversified portfolio continues to serve us well with strong contributions during the quarter from precious metals, energy and iron ore,” stated Paul Brink, President & CEO. “Higher energy prices have led us to increase our 2021 Energy guidance for the second time this year. Margins have moved higher this year due to the inflation-protected nature of our business model. Franco-Nevada is debt-free and is growing its cash balances.”

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Franco-Nevada indicated that it is debt-free and uses its free cash flow to expand its portfolio and pay dividends.

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