Core Insights - Franco-Nevada Corporation (FNV) shares have increased by 27.65% on a total return basis since the last coverage, outperforming the S&P 500, which rose by 2.99% [1] - During the same period, gold prices increased by 11.4%, while silver prices experienced a significant rise of 84.2% [1] Company Performance - The performance of FNV shares indicates strong market interest and potential growth in the mining sector, particularly in precious metals [1] Market Context - The notable increase in silver prices suggests a heightened demand or market dynamics favoring silver, which may impact companies in the mining sector [1]

Core Viewpoint - Franco-Nevada Corporation (FNV) shares have increased by 27.65% on a total return basis, outperforming the S&P 500, which rose by 2.99% during the same period [1] Group 1: Performance Metrics - Gold prices increased by 11.4% while silver prices surged by 84.2% over the same timeframe [1]

Franco-Nevada Corporation (NYSE:FNV) is one of the best metal stocks to buy right now. On December 10, analysts at RBC Capital upgraded Franco-Nevada Corporation (NYSE:FNV) to an Outperform from Sector Perform. The research firm also raised its price target for the stock to $250 from $225. The upgrade came on the stock, demonstrating strong momentum with a 74% gain. Franco-Nevada Corporation (FNV) Upgraded to Outperform, Price Target Lifted to $250 Photo by Gold-bar-jingming-pan on Unsplash Despite the ...

Core Viewpoint - Wheaton Precious Metals has an ideal business model in the precious metals industry, holding a growing portfolio of streaming contracts that allow it to purchase metals at low rates and benefit from higher market prices [1]. Company Overview - Wheaton Precious Metals provides mining companies with capital through streaming contracts, paying a fixed up-front fee for the right to buy a portion of the gold or silver produced at a fixed rate [4]. - The company has streams tied to 23 operating mines and 25 additional projects, expecting to produce 600,000 to 670,000 gold equivalent ounces (GEOs) in 2025, with growth projected to 870,000 GEOs by 2029 and an average of 950,000 GEOs annually from 2030 to 2034 [5]. Financial Metrics - Wheaton Precious Metals can purchase gold and silver at an average cost of $473 and $5.75 per ounce, respectively, through 2029 [5]. - The company's streams generate significant cash flow, which is reinvested into new streams and used to pay a sustainable and progressive dividend [5]. Comparison with Competitors - Franco-Nevada is preferred over Wheaton Precious Metals due to its larger and more diversified portfolio, consisting of 434 assets, including 120 producing and 38 in advanced stages [6]. - Franco-Nevada's diversification across various metals and energy sectors makes it a lower-risk investment in precious metals compared to Wheaton Precious Metals [7].

Core Viewpoint - Pierre Lassonde, co-founder of Franco-Nevada, predicts that gold prices will reach $17,250 per ounce within three years, significantly higher than current levels [1][2]. Gold Market Dynamics - Investors are increasingly buying gold as an alternative to the U.S. dollar due to budget deficits in major developed countries [2]. - Gold's finite supply is a key attraction, with only 216,265 tonnes mined historically, while demand continues to rise, particularly from central banks [3]. - Lassonde emphasizes that if just 1% of funds from other asset classes were redirected to gold, prices would surge, as only 3,600 tonnes are produced annually, with a third going to central banks [4]. Global Reserve Trends - Gold is being remonetized in global reserves, with central banks and sovereign wealth funds diversifying their investments amid geopolitical uncertainties [5]. - The U.S. dollar's share of global official foreign reserves has decreased from 72% in 2001 to 58% in 2024, indicating a shift towards gold as a store of value [4]. Franco-Nevada's Business Model - Franco-Nevada operates on a royalty model, which was initially met with skepticism but has proven successful, yielding a 36% annualized return from its founding until its acquisition by Newmont in 2002 [13][14]. - The company currently has a market value of approximately $36 billion, reflecting its growth and the competitive landscape in the mining sector [13]. Philanthropic Efforts - Lassonde has made significant contributions to mining education and research, establishing endowed chairs and supporting scholarships, demonstrating a commitment to giving back to the community [16]. - His current project, Fuerte Metals, is seen as a promising venture in the Yukon, reminiscent of earlier successful investments [17].

Summary of Mining Equities Conference Call Industry Overview - **Sector Performance**: In 2025, mining equities outperformed equity benchmarks, primarily driven by gold and copper, while ferrous metals and energy remained flat or declined [1][15] - **2026 Outlook**: Expectations for copper, aluminium, and lithium to outperform due to supply constraints and energy transition, with a cautious view on traditional end markets in developed economies [2][15] Key Commodities Insights Copper - **Market Dynamics**: The medium-term outlook for copper remains bullish, with expectations of market tightness in 2026 due to limited growth in global mine output and a deficit in refined output [3][4] - **Investment Opportunities**: Freeport is highlighted as a top pick due to its discounted valuation and expected production recovery at the Grasberg mine [4][23] Aluminium - **Demand vs Supply**: The outlook for aluminium is mixed; while demand holds up, supply constraints are expected, particularly from China and developed markets [5][24] - **Investment Recommendation**: A buy recommendation for Norsk Hydro is reiterated, with expectations of stable operations and potential cash returns [8][24] Gold - **Market Sentiment**: Gold remains a consensus macro trade, with equities delivering strong returns in 2025. However, valuations are less compelling than at the start of the year [9][22] - **Top Picks**: Barrick and Newmont are identified as top picks, with potential for further catalysts in 2026 [10][22] Iron Ore - **Price Forecast**: The medium-term outlook for iron ore is bearish, with prices expected to stabilize around $100/t in the short term and decline to $90/t by 2027 due to increased supply from Simandou [11][20] Coal - **Market Conditions**: Met coal prices have risen above $200/t due to demand and supply disruptions, while thermal coal remains stable at $110/t [12][20] Diversified Miners - **Performance Comparison**: Vale outperformed in the bulks sector, while RIO and BHP performed in line with benchmarks. A preference for RIO over Vale and BHP is noted due to better growth prospects [13][25] Earnings and Price Target Changes - **Adjustments**: Earnings estimates and price targets have been adjusted based on commodity price forecasts, with notable upgrades for copper miners like FCX and KGHM [28][29] Conclusion - **Investment Strategy**: The report emphasizes a selective investment approach in mining equities, focusing on commodities with strong fundamentals and potential for price gains, particularly copper, aluminium, and gold [2][15][22]

Company Overview - Franco-Nevada Corporation is a Toronto-based company focused on gold royalties and streams, with interests in silver, platinum group metals, oil & gas, and other resource assets [12] - The company has a diversified portfolio of 54 producing assets, including four major cash-flowing assets: Antamina, Antapaccay, Candelaria, and Cobre Panama, along with interests in 41 advanced assets and 223 exploration stage mining properties [12] - Approximately 86% of Franco-Nevada's revenues come from the Americas, with 49% from Latin America, 18% from the United States, and 19% from Canada, while the remaining 14% is generated from other regions [12] Investment Ratings - Franco-Nevada currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B [13] - The company has a Momentum Style Score of A, and its shares have increased by 4.3% over the past four weeks [13] - Four analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.33 to $5.20 per share [13] Performance Metrics - Franco-Nevada has an average earnings surprise of +7.7%, indicating a positive trend in earnings performance [13] - With a solid Zacks Rank and strong Momentum and VGM Style Scores, Franco-Nevada is recommended for investors' consideration [14]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Stocks and Earnings Estimates - Newmont Corporation (NEM) has seen a 9.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Wheaton Precious Metals Corp. (WPM) has experienced an 8.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Hallador Energy Company (HNRG) has seen a significant 71.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Fox Corporation (FOXA) has experienced a 6.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Franco-Nevada Corporation (FNV) has seen a 5.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Insights - Franco-Nevada Corporation (NYSE:FNV) is recognized as one of the best Canadian dividend stocks for long-term investment [1] - TD Securities has reduced its price target for FNV from $247 to $225 while maintaining a Hold rating, citing a shift in investor sentiment and increased market volatility following a gold price decline [2] - In Q3 2025, FNV reported record revenue of $487.7 million, a 77% increase year-over-year, surpassing analysts' expectations by $27 million [3] - The company’s operating cash flow reached $348.0 million, reflecting a 63% increase from the previous year, and it has maintained a debt-free balance sheet [4] Financial Performance - FNV's revenue for Q3 2025 was $487.7 million, marking a 77% growth compared to the same quarter last year [3] - Operating cash flow for the company was $348.0 million, which is a 63% increase from the prior year [4] - The company has increased its dividend annually since its IPO in 2008, achieving 18 consecutive years of growth by 2025 [4] Business Model and Strategy - Franco-Nevada operates as a streaming and royalty company with a focus on gold, holding a diversified portfolio that includes agreements linked to various metals and oil and gas [5] - The company has acquired six significant new gold interests over the past 18 months, enhancing its long-term growth prospects and increasing its revenue exposure to precious metals, which accounted for 85% of total revenue in the quarter [3]

Core Insights - The gold mining sector is experiencing significant price increases, with GDX and GDXJ both doubling in value, while spot gold surpassed $4,000, indicating strong market performance [1][3][10] - Despite the price gains, approximately $5 billion has exited mining ETFs, suggesting that the market is under-owned and that institutional investors are taking profits rather than retail investors fully participating [1][7][45] - Central banks are major players in the gold market, consistently purchasing over 1,000 tonnes of gold annually since 2022, which is double the average of the previous decade, contributing to a structural supply-demand imbalance [11][12][45] Market Dynamics - Gold prices reached historic highs around $4,000 per ounce, with GDX and GDXJ showing year-to-date gains of 115% and 117% respectively, significantly outperforming physical gold [3][17] - The GDX/GLD ratio improved by 40.7% in 2025, indicating a stronger performance of miners relative to gold [5] - Central banks are absorbing 24-29% of annual gold output, while mine supply is only expected to grow by 1%, creating a tight supply situation [13][14] Investment Strategies - A three-tier investment strategy is proposed for retail traders, focusing on core holdings, momentum plays, and premium growth stocks [23][48] - Newmont (NEM) is highlighted as a core holding with a P/E ratio of 13.65x and significant free cash flow potential, while Barrick (B) and Agnico Eagle (AEM) are recommended for momentum and premium growth respectively [24][28][32] - Entry points and stop-loss levels are suggested for each tier to manage risk effectively [27][31][34] Technical Analysis - The technical picture shows that GDX peaked on October 16, 2025, and has since retraced about 9.8%, while GLD has also seen a slight decline [18][19] - Key support levels for GDX are identified around $59.51 and $34.58, which have not been seriously challenged during recent price movements [21] - The current pullback is viewed as a potential opportunity for disciplined buyers rather than a sign of a market breakdown [22][46] Future Outlook - The upcoming December FOMC meeting is a key event to watch, as it may influence central bank behavior regarding gold purchases [47] - The relationship between slow supply growth and steady official demand is expected to persist, providing a favorable environment for gold miners [45][49]