Interestingly enough, fund manager expectations do not align with recession indicators like the one the New York Federal Reserve uses. This indicator puts the probability of a recession above 50% still, a level that - historically speaking - has always been followed by an actual recession. This indicator also implies an elevated recession probability. The US government is paying $2 million of interest a minutes as rates stay high The government's expenses on interest payments rose about 26 percent year-on-y ...

Franco-Nevada Corporation’s (FNV) shares have improved around 3% since it reported first-quarter 2024 earnings on May 1. This uptick was driven by the company's outstanding margin performance, supported by rising gold prices, despite experiencing year-over-year declines in revenues and earnings.Adjusted earnings of 76 cents per share beat the Zacks Consensus Estimate of 68 cents. The 4% year-over-year decline in its bottom line was mainly attributed to lower Gold Equivalent Ounces (GEOs) sold in the quarter ...

27.6 27.5 Finance expenses 0.6 0.7 GEOs are calculated taking into account the NPI economics. Silver, platinum, palladium, iron ore, oil, gas and other A V E R A G E C O M M O D I T Y P R I C E C H A N G E S Franco & Nevada Based on LBMA PM Fix for gold, platinum and palladium. Based on LBMA Fix for silver Based on Bank of Canada daily rates R E V E N U E & A D J U S T E D E B I T D A P E R F O R M A N C E 6 $400 Total Revenue Adjusted EBITDA Cobre Panama Cobre Panama Q 1 2 0 2 4 R E V E N U E D I V E R S I ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $256.8 million, a decrease of 7% year-over-year, while adjusted EBITDA was $216.1 million with a margin of 84.2% [43][86] - Adjusted net income was $146 million, down from $152.2 million in Q1 2023, resulting in an adjusted EPS of $0.76, a decline of 3.8% [28] - Cash costs per GEO were $2.73, compared to $2.63 in Q1 2023, with margins approximately $1,800 per ounce [44] Business Line Data and Key Metrics Changes - Precious metal GEOs represented approximately 76% of total GEOs sold, with a total of 122,897 GEOs sold in Q1 2024, down from 145,331 in the same period last year [42][99] - The Vale Royalty contributed to an increase in GEOs due to higher-than-anticipated royalty payments reflecting increased iron ore sales [27] - Energy GEOs were significantly lower at $2,182 compared to $25,952 a year ago, impacted by weaker natural gas prices [98] Market Data and Key Metrics Changes - Gold and silver prices increased year-over-year, while platinum and palladium prices decreased significantly, affecting the conversion of PGM revenues to GEOs [98] - The average gold price was higher by $183 per ounce in Q1 2024 compared to Q1 2023, contributing to improved margins despite lower GEOs sold [44] Company Strategy and Development Direction - The company aims to continue adding to its portfolio without significant overhead, with a focus on acquiring assets rather than share buybacks [29][74] - Management is optimistic about the potential for larger transactions in the current M&A environment, particularly in the copper sector [63] - The company is exploring opportunities in lithium and other non-gold transactions while maintaining a primary focus on gold [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for constructive dialogue with the new government in Panama following the upcoming elections, which could impact the Cobre Panama project [25][70] - The company anticipates a stronger second half of the year due to new mines coming online, including Greenstone and Salar Norte [10][11] - Management believes that the current environment is favorable for raising capital through precious metal streams due to elevated gold prices [52] Other Important Information - The effective tax rate is expected to be around 15% until new legislation is enacted, with a potential adjustment of about $47 million when it is [49] - The company has $2.3 billion in available capital and no debt, positioning it well for future opportunities [84][100] Q&A Session All Questions and Answers Question: How should we think of the royalty from Hemlo? - Management indicated that the royalty was lower than expected in Q1 due to higher costs and will likely be similar to last year [7] Question: What is the outlook for mine waste solutions? - Management confirmed that they expect to reach the cap in Q4 this year, with potential for early achievement depending on the next two quarters [8] Question: Are there any updates on the Cobre Panama arbitration? - The company has filed a notice of intent to initiate arbitration, with hopes for constructive dialogue with the new government post-election [76]

Financial Performance - Total revenue for Q1 2024 was $256.8 million, a decrease of 7.0% compared to $276.3 million in Q1 2023[4] - Net income for Q1 2024 was $144.5 million, down 7.7% from $156.5 million in Q1 2023[4] - Gross profit for Q1 2024 was $165.0 million, representing a decrease of 6.8% from $177.1 million in Q1 2023[4] - Basic earnings per share for Q1 2024 were $0.75, a decrease from $0.82 in Q1 2023[4] - Revenue for Q1 2024 was $256.8 million, a decrease of 7.1% from $276.3 million in Q1 2023[81] - Revenue from mining segment was $213.0 million, down 6.3% from $227.3 million in the same period last year[81] - Segment gross profit for Q1 2024 was $165.2 million, a decline of 6.0% compared to $177.3 million in Q1 2023[81] - Net income before income taxes for Q1 2024 was $172.0 million, down 6.6% from $184.1 million in Q1 2023[81] - Gold revenue decreased to $160.9 million in Q1 2024 from $172.2 million in Q1 2023, a decline of 6.9%[60] Cash and Assets - Cash and cash equivalents at the end of Q1 2024 were $1,352.0 million, down from $1,421.9 million at the end of 2023[2] - Total assets increased to $6,059.3 million as of March 31, 2024, compared to $5,994.1 million at the end of 2023[2] - Shareholders' equity rose to $5,819.5 million at the end of Q1 2024, up from $5,769.1 million at the end of 2023[2] - Equity investments increased to $249.3 million as of March 31, 2024, compared to $246.4 million as of December 31, 2023[36] - Loans receivable increased to $65.4 million as of March 31, 2024, up from $24.8 million as of December 31, 2023[39] - The Company disposed of equity investments with a cost of $11.6 million for gross proceeds of $7.4 million during the three months ended March 31, 2024[37] Dividends and Income - The company declared dividends of $69.4 million in Q1 2024, compared to $65.4 million in Q1 2023[7] - The company declared dividends of $0.36 per common share in Q1 2024, compared to $0.34 in Q1 2023[77] - The total cash dividends paid in Q1 2024 were $58.9 million, an increase from $57.8 million in Q1 2023[77] - The Company recognized a total of $2.1 million in dividend income from its equity investment in LIORC for Q1 2024, compared to $2.3 million in Q1 2023[58] Costs and Expenses - Total costs of sales for Q1 2024 were $33.6 million, down from $38.2 million in Q1 2023, representing a decrease of 12.1%[61] - General and administrative expenses were $5.7 million in Q1 2024, slightly down from $6.2 million in Q1 2023[62] - Current income tax expense for Q1 2024 was $22.1 million, up from $19.5 million in Q1 2023, an increase of 13.3%[68] Investments and Acquisitions - The company acquired royalty, stream, and working interests totaling $146.9 million in Q1 2024, up from $109.3 million in Q1 2023[6] - The Company acquired a 2.0% gross production royalty on minerals produced on Scottie Resources Corp.'s claims for a purchase price of $5.9 million (C$8.1 million) on April 15, 2024[20] - The Company received $6.5 million (A$10 million) from Fortuna Silver Mines for the buy-back of 0.6% of the Company's initial 1.2% NSR on the Séguéla mine on April 1, 2024[22] - The Company amended its precious metal stream agreement for the Condestable mine in Peru, increasing the Variable Phase 2 Deliveries from 25% to 37.5% and advancing an additional up-front deposit of $10.0 million, totaling $175.0 million[23] - The Company funded a term loan of $42.0 million for the Tocantinzinho gold project on January 29, 2024, and subsequently advanced an additional $33.0 million on April 19, 2024[27][28] Tax and Legal Matters - The Canada Revenue Agency has proposed additional taxes of $16.8 million for 2018 and $30.6 million for 2019, with potential penalties under review[121] - For the 2013-2016 taxation years, the company faces additional taxes of $22.1 million and penalties of $9.0 million related to transfer pricing reassessments[115] - The company has filed formal Notices of Objection against the CRA's reassessments and has posted security for 50% of the reassessed amounts[117] - If reassessed for 2020-2023, the company estimates additional taxes of approximately $237.0 million and penalties of approximately $89.6 million[122] - The ongoing CRA audit poses a risk of additional income taxes, penalties, and interest if the CRA successfully challenges the Company's tax filings, which could materially affect the Company[124] Other Financial Metrics - Finance income increased to $16.0 million in Q1 2024, compared to $10.5 million in Q1 2023, marking a growth of 52.4%[67] - The Company recorded a gain of $2.0 million on changes in the fair value of equity investments at FVTOCI for the three months ended March 31, 2024[38] - The Company has remaining commitments of up to $56.0 million in the Royalty Acquisition Venture as of March 31, 2024[32] - The Company has a $1.0 billion unsecured revolving term credit facility, with no amounts drawn as of March 31, 2024[56] - The Company has long-term commodity purchase commitments extending up to 40 years for various precious metals agreements[95] - Franco-Nevada recognized a full impairment of $1,169.2 million for its Cobre Panama streams due to a Supreme Court ruling in Panama[110] - The company estimates damages of at least $5 billion related to its Cobre Panama arbitration proceedings[111]

(in U.S. dollars unless otherwise noted) TORONTO, April 10, 2024 /PRNewswire/ - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX: FNV) (NYSE: FNV) announces the publication of its 2024 ESG Report and 2024 Asset Handbook. "We are proud to report on our leading ESG approach, new programs and commitments and to provide a detailed review of our portfolio of assets," said Paul Brink, President & CEO. "We are delighted to have a number of our operating partners participate in the investor day to ...

A month has gone by since the last earnings report for Franco-Nevada (FNV) . Shares have added about 10% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Franco-Nevada due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Franco-Nevada Q4 Earnings Top Estimates, Sales Fall ...

Dogan Kutukcu Introduction Gold bulls are in a very good place right now, as the shiny metal has made a number of new highs this year. Currently, COMEX gold futures are trading north of $2,160. That's more than 30% above the 2022 lows. TradingView (COMEX Gold Futures) According to Bloomberg, a major driver of demand comes from China, where the central bank and private buyers have been busy accumulating what one might call the world's oldest "currency." Gold’s gains over the past five weeks have also bee ...

Franco-Nevada Corporation (FNV) reported adjusted earnings per share (EPS) of 90 cents for the fourth quarter of 2023, up 5% from the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 80 cents.The company generated revenues of $303 million in the reported quarter, marking a year-over-year decline of 5.3%. The downside was due to lower gas, platinum group metals and oil prices, partly offset by higher gold prices. During the December quarter, 78.7% of revenues were sourced from Pr ...

Tax Reassessments and Liabilities - The Company received a Notice of Reassessment for the 2016 taxation year, resulting in additional Federal and provincial income taxes of $3.5 million (C$4.6 million) plus estimated interest and penalties of $1.4 million (C$1.8 million)[1] - The Company's Mexican subsidiary paid a total of $34.1 million (490.3 million Pesos) in cash taxes for taxation years 2013 through 2016 at a 30% tax rate[4] - The 2014 and 2015 Reassessments for the Barbadian subsidiary resulted in additional Federal and provincial income taxes of $5.1 million (C$6.7 million) plus estimated interest and penalties of $3.3 million (C$4.4 million)[5] - The 2016 and 2017 Reassessments for the Barbadian subsidiary resulted in additional Federal and provincial income taxes of $30.1 million (C$39.8 million) plus estimated interest and penalties of $11.2 million (C$14.8 million)[7] - The Company received a Proposal Letter from the CRA proposing to reassess the 2018 and 2019 taxation years, resulting in additional Federal and provincial income taxes of $17.2 million (C$22.7 million) for 2018 and $31.4 million (C$41.5 million) for 2019 plus estimated interest and penalties of $6.5 million (C$8.6 million) for 2018 and $8.5 million (C$11.3 million) for 2019[8] - The Company estimates that it would be subject to additional Canadian tax of approximately $242.8 million (C$321.1 million), transfer pricing penalties of approximately $91.8 million (C$121.4 million), and other penalties of approximately $33.4 million (C$44.2 million) for taxation years 2020 through 2023[9] - The company faces potential tax exposures of up to $242.8 million (C$321.1 million) for 2020-2023 related to transfer pricing reassessments in Barbados[30] - The company received $13.9 million (C$17.7 million) in returned security deposits from the CRA related to transfer pricing reassessments[28] - The Company reached a settlement with the CRA in respect of the Domestic and FAPI Reassessments, resulting in no FAPI in 2012 and 2013 as computed under Canadian tax law[20] - The Company filed formal Notices of Objection in connection with certain Transfer Pricing Reassessments and posted security in the form of cash totaling $18.5 million (C$24.5 million)[13] - Deferred tax liabilities are recognized for taxable temporary differences, calculated at enacted or substantively enacted tax rates[88] - The company evaluates exposure to uncertain tax positions and recognizes provisions based on the probable outcome of assessments[89] - The Company's deferred income tax assets are reassessed at each reporting period based on forecasts of future taxable income and reversals of temporary differences[119] - The Company applied a temporary exception to accounting for deferred taxes related to OECD Pillar Two model rules, effective immediately upon issuance of the amendment[101] Financial Performance and Position - Total assets decreased from $6,626.8 million in 2022 to $5,994.1 million in 2023, primarily due to a reduction in royalty, stream, and working interests from $4,927.5 million to $4,027.1 million[24] - Net loss for 2023 was $466.4 million, compared to a net income of $700.6 million in 2022, driven by impairment losses of $1,173.3 million[26] - Revenue declined from $1,315.7 million in 2022 to $1,219.0 million in 2023, while gross profit decreased from $852.6 million to $766.6 million[26] - Cash and cash equivalents increased by 18.8% from $1,196.5 million in 2022 to $1,421.9 million in 2023[24] - Operating cash flows remained strong at $991.2 million in 2023, slightly down from $999.5 million in 2022[33] - The company invested $520.0 million in acquiring royalty, stream, and working interests in 2023, significantly higher than the $139.6 million invested in 2022[33] - Dividends paid increased to $233.0 million in 2023, up from $197.6 million in 2022[33] - Net income for 2022 was $700.6 million, while the company reported a net loss of $466.4 million in 2023[34] - Total comprehensive income for 2022 was $571.9 million, compared to a total comprehensive loss of $424.3 million in 2023[34] - Dividends declared in 2022 amounted to $245.8 million, increasing to $262.1 million in 2023[34] - The company's total equity decreased from $6,417.6 million at the end of 2022 to $5,769.1 million at the end of 2023[34] - Franco-Nevada's cash and cash equivalents increased to $1,421.9 million in 2023 from $1,196.5 million in 2022, primarily held in interest-bearing deposits[172] - Franco-Nevada's equity investments increased to $246.4 million in 2023 from $224.6 million in 2022, with Labrador Iron Ore Royalty Corporation being the largest holding at $152.7 million[173] - Franco-Nevada's royalty, stream, and working interests carrying value increased to $4,027.1 million in 2023 from $4,927.5 million in 2022, with mining royalties and streams being the largest components[179][180] - Total net book value as of December 31, 2023, is $4,027.1 million, with $2,990.9 million depletable and $1,036.2 million non-depletable[181] - Additions to royalty, stream, and working interests in 2023 totaled $519.6 million, with significant contributions from streams ($250.2 million) and exploration ($110.2 million)[181] - Depletion charges for 2023 amounted to $270.7 million, primarily driven by streams ($169.4 million) and energy ($60.8 million)[181] - Foreign exchange impact in 2023 resulted in a net gain of $27.3 million, with $14.1 million attributed to royalties[181] - Franco-Nevada recognized a gain of $3.7 million from the disposal of a 0.5% NSR royalty interest in the Valentine Gold project[190] - Energy exploration assets written off in 2023 totaled $4.1 million due to abandoned tenements and concessions[189] Royalty, Stream, and Working Interests - The Company completed the acquisition of a royalty portfolio in the Haynesville gas play in Louisiana and Texas for a purchase price of $125.0 million[14] - The Company's royalty, stream, and working interests carrying value was $4,027.1 million as of December 31, 2023[16] - Royalty, stream, and working interests are recorded at cost and capitalized as tangible assets with finite lives[51] - Producing mineral royalty and stream interests are depleted using the units-of-production method over the life of the property[52] - Capitalized costs for energy well equipment are depreciated using a 25% declining balance method[57] - Impairment losses are recognized when an asset's carrying value exceeds its recoverable amount, calculated as the higher of fair value less costs of disposal (FVLCD) and value-in-use (VIU)[59] - The Company's royalty, stream, and working interests are subject to significant judgments and estimates, particularly regarding commodity prices, discount rates, and reserve/resource conversion[107] - Impairment losses of $1,173.3 million were recorded in 2023, primarily related to royalty, stream, and working interests[26] - The Company recognized an impairment loss of $1,169.2 million for the Cobre Panama stream interest due to halted production and political environment[108] - Cobre Panama production halted since November 2023 due to political and legal challenges, leading to a full impairment assessment[184][185][186] - Franco-Nevada has initiated international arbitration proceedings regarding Cobre Panama, with potential for impairment reversal if production resumes[187][188] - Acquired an incremental 1.0% NSR on Skeena's Eskay Creek properties for $41.8 million, increasing total NSR to 2.5%[122] - Advanced $18.7 million to Skeena Resources Ltd. for a convertible debenture with a 7% interest rate, maturing by December 19, 2028[124] - Agreed to acquire a royalty portfolio in the Haynesville gas play for $125.0 million, with $12.5 million advanced as a deposit[125] - Fully funded the $250.0 million Tocantinzinho Stream deposit, with stream deliveries based on gold production: 12.5% until 300,000 ounces, then 7.5%[127] - Acquired an additional 1.0% NSR on Argonaut's Magino gold mine for $28.0 million, increasing total NSR to 3.0%[133] - Acquired a 1.5% NSR on Red Pine Exploration's Wawa gold project for $5.0 million, with an option to acquire an additional 0.5% NSR[135] - Agreed to acquire a sliding-scale gold royalty and fixed-rate copper royalty on Barrick Gold's Pascua-Lama project for $75.0 million[136] - Acquired a 1.5% NSR on Tiernan's Volcan gold project for $15.0 million, with an option to acquire an additional 1.0% NSR[138] - Acquired an incremental 0.1120% NSR on Lundin Mining's Caserones mine for $9.4 million, increasing total NSR to 0.5702%[142] - Acquired an additional 1.5% NSR on Marathon's Valentine Gold project for $45.0 million, increasing total NSR to 3.0%[147] - Franco-Nevada acquired an additional 0.5% NSR on Skeena's Eskay Creek project for $21.0 million (C$28.5 million), with $19.9 million (C$27.0 million) paid on closing and $1.1 million (C$1.5 million) contingent upon certain conditions[159] - Franco-Nevada acquired a 2% NSR on Argonaut Gold's Magino gold project for $52.5 million, covering both the Magino project and regional exploration properties[161] - Franco-Nevada acquired a 2% NSR on Westhaven Gold's Spences Bridge Gold Belt claims for $6.0 million, with an option for Westhaven to buy-down 0.5% of the NSR for $3.0 million within 5 years[163] - Franco-Nevada acquired a portfolio of seven royalties in Chile, each with a 2% NSR on precious metals and 1% NSR on base metals, for $1.0 million[165] - Franco-Nevada acquired an additional 2% NSR on Equinox Gold's Castle Mountain project for $6.0 million, increasing its effective NSR on the Pacific Clay claims to 4.65%[166][168] - Franco-Nevada acquired an effective 0.4582% NSR on JX Nippon Mining & Metals' Caserones mine for $37.4 million, with royalty payments commencing from January 1, 2022[169] - Franco-Nevada advanced $18.7 million (C$25.0 million) to Skeena as a convertible debenture with a 7% interest rate, maturing on December 19, 2028, or upon project financing completion[176] Revenue Recognition and Financial Instruments - Revenue from stream arrangements is recognized when control over the commodity is transferred to the customer, typically at the delivery date based on spot prices[73] - Revenue from royalty arrangements is measured at the transaction price agreed with the operator, reflecting the gross value of the commodity sold less deductions[79] - Working interest revenue is measured at the transaction price set by reference to monthly market commodity prices, including adjustments for product quality and transportation[80] - Costs of sales for stream agreements include cash payments for gold, silver, or platinum group metals, based on the lesser of a contractual price or the prevailing market price[82] - The company's financial instruments include cash, receivables, accounts payable, accrued liabilities, debt, and investments, initially recognized at fair value[62] - Equity investments are classified as fair value through other comprehensive income (FVTOCI) and measured at fair value, with changes recognized directly in other comprehensive income[64] Share-Based Payments and Equity - The Company's deferred share units (DSUs) are settled in cash, with the fair value marked to the quoted market price of the Company's common shares at each reporting date[94] - The Company's performance-based restricted share units (RSUs) may vest at a performance multiplier ranging from 0% to 150% of the value[93] - The Company uses the Black-Scholes option pricing model to measure the fair value of equity-settled share-based payments[92] - The Company's earnings per share calculations include the effect of potentially dilutive common share equivalents, such as share options and restricted share units[96] Joint Operations and Subsidiaries - Franco-Nevada holds a 49.9% economic interest in The Mineral Resource Company II, LLC (TMRC II), a joint operation with Continental Resources, Inc.[45] - The company funds 80% of contributions to TMRC II, with Continental Resources funding the remaining 20%[45] - The Company's joint arrangement with Continental qualifies as a joint operation, with revenue distributions ranging between 50-75% based on asset performance[117] - Franco-Nevada operates in multiple regions including South America, Central America & Mexico, United States, Canada, Australia, Europe, and Africa[36] - The company's principal subsidiaries are located in Delaware, Barbados, Australia, Texas, and Chile, all with 100% economic interest[41] Internal Controls and Reporting - Internal control over financial reporting was deemed effective as of December 31, 2023, per management and independent audit[193][197] - The Company's segment reporting aligns with internal reporting provided to the CEO, who is responsible for resource allocation and performance assessment[95]