Franco-Nevada reports net income of $157M in Q3, says on track to meet 2022 guidance

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(Kitco News) - Franco-Nevada (TSX: FNV), a leading gold-focused royalty and streaming company, reported today that gold equivalent ounces (GEOs) sold from its precious metal assets were 120,542 in Q3 2022, compared to 127,692 GEOs in Q3 2021.

The company said that higher contributions from Candelaria, Tasiast and Sudbury were more than offset by lower deliveries from Cobre Panama, Stillwater, Antamina and Guadalupe-Palmarejo.

In Q3 2022, the company earned $304.2 million in revenue, down 3.8% from Q3 2021.

"The decrease was driven by lower revenue from our precious metal and iron ore assets reflecting lower metal prices, largely offset by higher revenue from our energy assets due to realized oil and gas prices," it said.

The company's precious metal revenue accounted for 67.9% of its revenue (54.7% gold, 10.0% silver, 3.2% PGM). Revenue was sourced 90.1% from the Americas (27.7% South America, 20.2% Central America & Mexico, 26.1% U.S. and 16.1% Canada).

Franco-Nevada's diversified assets, primarily comprising its iron ore and energy interests, generated $97.5 million in revenue, up from $88.8 million in Q3 2021. The increase is primarily due to higher realized oil and gas prices relating to the company's energy assets.

The company reported Q3 2022 net income of $157.1 million ($0.82/share), down 5% compared to Q3 2021, and adjusted net income of $159.7 million ($0.83/share), down 4% compared to Q3 2021.

Franco-Nevada also announced that its Board of Directors has declared a quarterly dividend of US$0.32 per share.

CEO Paul Brink commented, "Franco-Nevada has record GEOs, revenue, net income, adjusted net income and adjusted EBITDA for the three quarters through September 30, 2022 and is on-track to meet full year guidance. The weaker gold price environment has led to an increase in demand for royalty and stream financing. We are pleased to have acquired a royalty on Argonaut's Magino project in Ontario that is currently under construction and our business development group remains very active."

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.