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Franco-Nevada reports record adjusted net income in 2022, says Cobre Panama resumed normal operations

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(Kitco News) - Franco-Nevada (TSX/NYSE: FNV) reported today that the company earned record 729,960 gold equivalent ounces (GEOs) in 2022.

The company also announced it earned record revenue ($1,315.7 million), adjusted net income ($697.6 million), adjusted EBITDA ($1,106.9 million) and operating cash flow ($1,010.4 million) in 2022. The company said that quarterly dividend increased 6.25% to $0.34/share effective Q1 2023.

Importantly, Franco-Nevada noted that First Quantum has received authorization from the Panama Maritime Authority and concentrate loading operations at the Punta Rincón port have resumed.

“Cobre Panama processing operations have resumed to normal levels with all three trains operating. MPSA continues to remobilize the workforce to full staffing levels,” it added.

For 2023, the company expects GEO sales from its Precious Metal assets to range between 490,000 and 530,000 GEOs, consistent with 2022, but anticipate total GEOs sales to be between 640,000 and 700,000 GEOs, a reduction from 2022 primarily based on lower assumed oil and gas prices.

The company expects its portfolio to produce between 760,000 and 820,000 GEOs in 2027, of which 565,000 to 605,000 GEOs are expected to be generated from Precious Metal assets.

“Franco-Nevada is reporting strong fourth quarter and annual results for 2022. Our Diversified assets outperformed due to elevated energy prices in the year,” stated CEO Paul Brink. "We are pleased that First Quantum and the Government of Panama have agreed on terms for a refreshed concession contract and look forward to Cobre Panama achieving its expanded throughput capacity later this year.”

He added, “Precious metal GEOs and Diversified production in 2023 are expected to be consistent with 2022. We are however guiding to lower total GEOs for the year as current energy prices are below 2022 levels. The organic growth in our 5-year outlook comes from both mine expansions and new mines. Franco-Nevada is debt-free, is growing its cash balances and has an active pipeline of growth opportunities.”

Franco-Nevada indicated it 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.

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