Franco-Nevada reports record revenue, adjusted net income and adjusted EBITDA in Q2 2022
The company said that gold equivalent ounces (GEOs) sold from its Precious Metal assets were 131,574 in Q2 2022, down 10% compared to 145,937 GEOs sold in Q2 2021.
"Higher contributions from Hemlo, Gold Quarry and Subika (Ahafo) were more than offset by lower deliveries from Antamina, Guadalupe, Goldstrike and Stillwater,” the company noted in a press-release.
According to the company's statement, in Q2 2022, it earned $352.3 million in revenue, up 1.5% from Q2 2021.
Franco-Nevada said that the growth was primarily driven by higher realized oil and gas prices from its Energy assets, which more than offset the decrease in Precious Metal revenue and resulted in 69.2% of the company's revenue being sourced from Precious Metal assets (54.1% gold, 10.2% silver, 4.9% PGM).
Revenue was sourced 91.7% from the Americas (25.3% South America, 24.1% Central America & Mexico, 25.1% U.S. and 17.2% Canada).
Importantly, the company's net income was $196.5 million in Q2 2022, or 12% higher than the prior year quarter, while adjusted net income was up 7% to $195.8 million. Adjusted EBITDA increased by 4% to $301.2 million in Q2 2022. The company's margin was 85.5% in Q2 2022, up 2% year-over-year.
Franco-Nevada also announced that its Board of Directors has declared a quarterly dividend of $0.32 per share. The dividend will be paid on September 29, 2022 to shareholders of record on September 15, 2022.
"We are proud to report record quarterly and half-year results on many financial metrics,” stated CEO Paul Brink. "The low-risk nature of our business is most pronounced in today's inflationary environment. Our top-line precious metal stream and royalty interests helped generate our highest margins since starting streaming. Our Energy assets performed well and are the driver behind our record revenues.”
"We are pleased to add exposure to the construction-ready Tocantinzinho gold project and to have received good organic growth news from several of our assets during the quarter, in particular the further expansion of the Detour Lake mine. Franco-Nevada is debt-free and is growing its cash balances,” he added.
Franco-Nevada Corporation 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 indicated that the company is debt-free and uses its free cash flow to expand its portfolio and pay dividends.
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