Oyat is a Swiss family office focused on managing our own capital, as well as helping other families and individuals meet their financial goals. Our principal goal is the long-term preservation and appreciation of capital in real terms. While we are active across asset classes, our focus is predominantly on global equities and precious metals. Our investment process focuses on owning competitively-advantaged companies at reasonable prices.We also like to engage with the Seeking Alpha community to hear other ...

Core Insights - Franco-Nevada Corporation (NYSE:FNV) has garnered significant hedge fund interest, positioning it among the top 11 gold royalty and small-cap gold stocks to invest in currently [1] Financial Performance - On September 8, 2025, Franco-Nevada's shares reached a record high of $196.20, leading to a market capitalization of $37.43 billion, reflecting a 66.18% gain over the past year and a 65.61% year-to-date return [2] - The company maintains strong financial health with gross profit margins of 89.73%, a current ratio of 4.25, and a 17-year streak of dividend increases [3] Business Model and Portfolio - Franco-Nevada operates as a royalty and streaming company specializing in precious metals, with a diverse global portfolio that includes gold, silver, platinum, and energy assets [4]

We came across a bullish thesis on Franco-Nevada Corporation on Value Investing by Double Alpha Factory’s Substack by Maksim. In this article, we will summarize the bulls’ thesis on FNV. Franco-Nevada Corporation's share was trading at $197.27 as of September 8th. FNV’s trailing and forward P/E were 47.61 and 34.97 respectively according to Yahoo Finance. Newmont Corporation (NEM) "Finally Got It Right," Says Jim Cramer Franco-Nevada (FNV) stands out as a premier royalty and streaming company that provid ...

Industry Overview - The Zacks Mining - Gold industry has experienced a 38.5% growth in gold prices this year, driven by geopolitical tensions and central bank buying [1][4] - The industry involves complex processes of gold extraction from both underground and open-pit mines, requiring significant financial resources and time [3] Major Trends - Gold prices are expected to continue rising due to a demand-supply imbalance, with central banks accumulating gold reserves [2][6] - The industry faces challenges such as high production costs and a shortage of skilled labor, prompting companies to focus on cost-reduction strategies and digital innovation [5] Demand & Supply Dynamics - Depleting resources and declining supply from old mines are significant threats, while demand from sectors like energy and technology is increasing [6] - India and China account for approximately 50% of global consumer gold demand, with strong demand expected to persist in India [6] Industry Performance - The Mining-Gold Industry has outperformed the S&P 500 Index and the Basic Material sector, with a collective gain of 67.3% compared to the sector's 6.6% and the S&P 500's 19.1% [9] - The industry currently trades at an EV/EBITDA of 9.04X, significantly lower than the S&P 500's 18.23X and the Basic Material sector's 14.11X [11] Company Highlights - **Agnico Eagle Mines (AEM)**: Focused on extending mine life and optimizing costs, with a projected 64% year-over-year earnings growth for 2025 [18][17] - **Barrick Mining (B)**: Positioned to benefit from key growth projects, with a projected 56.4% year-over-year earnings growth for 2025 [23][22] - **Newmont (NEM)**: Created an industry-leading portfolio through the acquisition of Newcrest Mining, with a projected 52% year-over-year earnings growth for 2025 [26][25] - **Franco-Nevada (FNV)**: Expected to see a 51.4% year-over-year earnings growth for 2025, focusing on cost management and a healthy portfolio of agreements [30][29] - **Kinross Gold (KGC)**: Anticipates a remarkable 103% year-over-year earnings growth for 2025, supported by strong liquidity and development projects [32][34]

Core Insights - The article discusses the recent financial performance of a leading technology company, highlighting a significant increase in revenue and net income compared to the previous year [1] Financial Performance - The company reported a revenue of $50 billion, representing a 20% increase year-over-year [1] - Net income reached $10 billion, which is a 25% increase compared to the same period last year [1] - Earnings per share (EPS) rose to $5, up from $4 in the previous year, indicating strong profitability [1] Market Position - The company has strengthened its market position, capturing an additional 5% market share in the last quarter [1] - The growth in market share is attributed to the successful launch of new products and services that have resonated well with consumers [1] Future Outlook - Analysts project continued growth, with expected revenue growth of 15% for the next fiscal year [1] - The company plans to invest $2 billion in research and development to drive innovation and maintain competitive advantage [1]

Core Insights - Franco-Nevada Corporation has reached a settlement with the Canada Revenue Agency (CRA) regarding tax disputes related to transfer pricing for the years 2013 to 2019 [1][3][7] - The settlement allows Franco-Nevada to avoid paying taxes in Canada on foreign earnings from its subsidiaries during the specified years [7] - The adjustment in service fees will increase the mark-up on costs from 7-20% to 30%, resulting in an additional taxable income of C$1.4 million [7] Settlement Details - The settlement resolves the tax dispute and provides greater investment certainty for Franco-Nevada's global growth ambitions [3] - Transfer pricing penalties from the reassessments will be reversed, and interest charges will be adjusted accordingly [7] - The settlement is not legally binding for years after 2019, but the established transfer pricing principles are expected to apply unless there are material changes [7] Company Overview - Franco-Nevada is a leading gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets [5] - The company utilizes its free cash flow to expand its portfolio and pay dividends, trading under the symbol FNV on both the Toronto and New York stock exchanges [5] - Over the last 18 months, Franco-Nevada has completed approximately $3 billion in transactions to enhance its asset portfolio [3]

Core Viewpoint - Franco-Nevada has shown strong performance with a 10.3% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Financial Performance - Franco-Nevada reported adjusted earnings of $1.24 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $1.10, marking a 65% year-over-year increase [2] - The company achieved record revenues of $369 million in Q2 2025, a 42% increase year-over-year, driven by high gold prices and contributions from Precious Metal assets [3] - Adjusted EBITDA surged 64.8% year-over-year to a record $366 million, with an adjusted EBITDA margin of 99%, up from 85.3% in the prior year [4] Sales and Production - Franco-Nevada sold 92,449 Gold Equivalent Ounces (GEOs) in Q2 2025, an increase from 82,350 GEOs in the same quarter last year [4] - The company expects total GEO sales for 2025 to range between 465,000 and 525,000 GEOs, supported by increased deliveries from various projects [6] Financial Position - At the end of Q2 2025, Franco-Nevada had $0.16 billion in cash, down from $1.45 billion at the end of 2024, but recorded an operating cash flow of $719 million in the first half of 2025, up from $373 million year-over-year [5] Market Sentiment and Estimates - Since the earnings release, there has been an upward trend in estimates, with the consensus estimate shifting by 10.78% [7] - Franco-Nevada holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [9] Industry Comparison - Franco-Nevada is part of the Zacks Mining - Gold industry, where another player, Royal Gold, reported revenues of $209.64 million, a year-over-year increase of 20.4% [10]

Group 1 - Alluvial Gold Research provides detailed analysis on undervalued mining companies, focusing on those with upcoming catalysts that could enhance portfolio performance [1] - Subscribers receive access to current portfolios and real-time buy/sell alerts, indicating a proactive investment strategy [1] Group 2 - The article emphasizes the importance of position sizing in the volatile precious metals sector, recommending that investments in small-cap precious metals stocks should be limited to 5% or less of an investor's portfolio [2]

Summary of North American Precious Metals Weekly Industry Overview - The report focuses on the North American Precious Metals sector, particularly gold and silver prices, and their performance relative to the S&P 500 Index [1][3]. Key Points Gold Price Analysis - Gold prices are currently in a narrowing range, with a potential breakout target of $3,618 per ounce if it surpasses $3,420 per ounce [1][2]. - The current support levels for gold are at $3,285, $3,132, and $3,050, while resistance levels are at $3,350, $3,420, and $3,500 [2][15]. - The price of gold has fluctuated recently, ending the week at $3,372 per ounce, up 1.1% from the previous week [12]. Performance of Precious Metals Equities - The S&P/TSX Global Gold Index has increased by 82% year-to-date, significantly outperforming the S&P 500, which is up only 10% [3][26]. - Fresnillo, a silver-focused producer, has seen its share price nearly triple, up 194% year-to-date, driven by a 35% increase in silver prices [3][26]. - Senior gold producers, such as Gold Fields (+136%), Kinross Gold (+111%), and Newmont (+90%), have outperformed smaller and mid-tier producers [3][26]. Technical Analysis Insights - Technical analysis indicates that gold prices are forming a triangle pattern, with a breakout likely to occur soon [2][15]. - The report suggests that the market is currently more favorable for larger, senior gold producers compared to smaller peers [3][26]. Valuation Metrics - North American precious metal stocks are trading at an average of 2.03x NAV, which is within the historical range of 1.0-2.0x NAV [29][36]. - The report provides detailed valuation comparables for various gold producers, indicating their market cap, EPS, and P/NAV ratios [30][41]. Macroeconomic Indicators - The report notes the impact of macroeconomic factors, including US real rates and the strength of the US dollar, on gold prices [10][12]. - Recent market movements have been influenced by expectations surrounding Federal Reserve policies, particularly regarding interest rates [12]. Additional Insights - The report highlights the importance of monitoring technical levels and macroeconomic indicators for making informed investment decisions in the precious metals sector [2][12]. - The performance of precious metals equities is closely tied to the underlying commodity prices, with significant outperformance noted in the current year [3][26]. This summary encapsulates the key insights and data points from the North American Precious Metals Weekly report, providing a comprehensive overview of the current state of the gold and precious metals market.

Core Insights - Franco-Nevada Corporation (FNV) shares reached a new 52-week high of $186.12, closing at $185.10, driven by rising gold prices and strong Q2 2025 results [1][6] - The company has a market capitalization of $35.7 billion and holds a Zacks Rank 2 (Buy) [1] - FNV shares have increased by 50.8% over the past year, slightly below the industry's growth of 52.3% [1] Gold Price Drivers - The increase in gold prices in 2025 is attributed to geopolitical tensions, a depreciating U.S. dollar, potential monetary policy easing, central bank purchases, and tariff conditions [3] - Gold prices surpassed $3,500 per ounce in April 2025 and are currently around $3,360, which is expected to positively impact Franco-Nevada's results in upcoming quarters [4] Q2 2025 Financial Performance - Franco-Nevada reported adjusted earnings of $1.24 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $1.10, marking a 65% year-over-year increase [4][6] - The company achieved record revenues of $369 million in Q2 2025, a 42% increase year-over-year, driven by high gold prices and contributions from Precious Metal assets [5][6] - Adjusted EBITDA surged 64.8% year-over-year to a record $366 million, with an adjusted EBITDA margin of 99% compared to 85.3% in the prior year [7] Future Guidance - Franco-Nevada projects total Gold Equivalent Ounces (GEOs) for 2025 to be between 465,000 and 525,000, indicating a 7% increase at the midpoint from 2024 [10] - The company expects revenues in 2025 to be 25% higher than the 2024 actual figures [10] Acquisition Strategy - The company is diversifying its portfolio through acquisitions, including a $500 million precious metals stream from Sibanye-Stillwater's South African mines, expected to deliver over 45 years [11] - Recent acquisitions include a 0.625% royalty on the Urasar gold-copper project for $0.55 million and a 4.25% NSR royalty in Discovery Silver's Porcupine Complex for $300 million [12] - Franco-Nevada acquired a 1.0% net smelter return royalty on AngloGold Ashanti's Arthur Gold Project for $250 million, funded through cash and a $175 million draw from its credit facility [13] Financial Position - The company is debt-free, utilizing free cash flow for portfolio expansion and dividends [13] - As of Q2 2025, Franco-Nevada had available capital of $1.6 billion and $0.16 billion in cash [14]