Group 1 - Franco-Nevada (FNV) has returned 43.1% year-to-date, significantly outperforming the Basic Materials sector, which has returned an average of 6.8% [4] - The Zacks Consensus Estimate for FNV's full-year earnings has increased by 11.6% over the past 90 days, indicating improved analyst sentiment [4] - Franco-Nevada holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook for the stock [3] Group 2 - Franco-Nevada is part of the Mining - Gold industry, which consists of 39 companies and is currently ranked 14 in the Zacks Industry Rank [6] - The Mining - Gold industry has an average year-to-date return of 46.4%, indicating that FNV is slightly underperforming its industry [6] - Coeur Mining (CDE), another stock in the Basic Materials sector, has returned 42.3% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Industry Overview - Gold prices have been on the rise, reaching $3,415.57/ounce on May 5 and stabilizing around $3,300/ounce thereafter, positively impacting gold mining stocks [1][2] - The increase in gold prices is attributed to concerns over U.S. government debt, weak demand for long-term treasury bonds, and a declining dollar, with the World Gold Council noting a scarcity of gold deposits in the mining industry [2] - Central banks in emerging economies are increasing their gold purchases, and the rising use of gold in energy, healthcare, and technology is expected to create a demand-supply imbalance, further driving prices [3] Investment Opportunities - Investing in gold mining stocks with a favorable Zacks Rank is recommended, with five highlighted stocks: Franco-Nevada Corp. (FNV), Newmont Corp. (NEM), Kinross Gold Corp. (KGC), Royal Gold Inc. (RGLD), and Agnico Eagle Mines Ltd. (AEM), all currently rated as Strong Buy [4] Positive Catalysts - Global central banks are cutting interest rates to stimulate economic growth, which benefits non-income-bearing assets like gold, while a weak U.S. dollar increases demand for dollar-denominated gold [5] - Ongoing geopolitical conflicts, such as the Russia-Ukraine war and unrest in Southeast Asia, are expected to keep gold prices buoyant as it is viewed as a safe-haven investment [6] - Major investment banks like Goldman Sachs and JP Morgan predict gold prices could reach $4,000/ounce by 2026, indicating continued bullish momentum [7] Company-Specific Insights Franco-Nevada Corp. (FNV) - FNV is positioned for strong earnings growth due to increased contributions from streaming agreements and a focus on cost management despite lower output from Cobre Panama [10] - The company has a debt-free balance sheet and plans to use free cash flow for portfolio expansion and dividends, with expected revenue and earnings growth rates of 31.5% and 29.9%, respectively, for the current year [11][12] Newmont Corp. (NEM) - NEM is advancing its growth projects, including the Tanami expansion and the Ahafo North project, with a commitment to invest $950 million to $1,050 million in development capital [13][14] - The expected revenue and earnings growth rates for NEM are 2% and 20.1%, respectively, for the current year [14] Kinross Gold Corp. (KGC) - KGC has a strong production profile and is focusing on organic growth through projects like Tasiast, which is expected to enhance production and cash flow [15][16] - The expected revenue and earnings growth rates for KGC are 15.3% and 63.2%, respectively, for the current year [17] Royal Gold Inc. (RGLD) - RGLD benefits from solid streaming agreements and a strong balance sheet, with plans to allocate cash flow towards dividends, debt reduction, and new ventures [18][19] - The expected revenue and earnings growth rates for RGLD are 24.1% and 35.2%, respectively, for the current year [19] Agnico Eagle Mines Ltd. (AEM) - AEM is focused on executing projects that will enhance production and cash flows, with strategic acquisitions and expansions strengthening its market position [20][21] - The expected revenue and earnings growth rates for AEM are 23% and 42.6%, respectively, for the current year [22]

Group 1: Acquisition Overview - Franco-Nevada Corporation (FNV) has announced the acquisition of a royalty package on the Côté Gold Mine in Ontario for $1.05 billion in cash, enhancing its portfolio and generating immediate gold revenues from a significant new mine [1][7] - The Côté Gold Mine is a joint venture between IAMGOLD Corporation (IAG) and Sumitomo Metal Mining Co. Ltd., with IAG holding a 70% stake and Sumitomo holding 30% [2] - The mine contains 16 million ounces of Measured and Indicated Mineral Resources and 4 million ounces of Inferred Mineral Resources [2] Group 2: Royalty Details - The royalty package includes a 7.5% gross margin royalty applicable to 100% of mineral production from the Chester claims, covering all Mineral Reserves and over 99.9% of current Mineral Resources at the mine [4] - Existing royalty arrangements will be replaced with a new agreement that clarifies audit and information rights, while the payment calculation methodology will remain unchanged [5] Group 3: Financial Projections - Franco-Nevada is expected to generate annual revenues of $67 million at a gold price of $3,200 per ounce from this acquisition [7] - The mine is projected to reach its nameplate capacity of 13 million tonnes per annum (Mtpa) by year-end, with potential increases to 20 Mtpa [9] Group 4: Operational Efficiency - The Côté Gold Mine utilizes modern design and technology, including autonomous equipment and efficient milling, which are expected to keep production costs low [8] - The mine's cash costs are anticipated to decrease as production volume increases and operational processes improve [8] Group 5: Market Performance - Franco-Nevada's shares have increased by 39.8% over the past year, compared to the industry's growth of 43.4% [10]

Core Viewpoint - Franco-Nevada Corporation has announced an agreement to acquire a royalty package on the Côté Gold Mine in Ontario for $1,050 million, which includes a 7.5% gross margin royalty on mineral production from the mine [1][2]. Acquisition Details - The royalty package covers all Mineral Reserves and over 99.9% of current Mineral Resources at the Côté Gold Mine, which is operated by IAMGOLD Corporation and Sumitomo Metal Mining Co. Ltd. [1][2] - The acquisition is expected to close at the end of Q2 2025, with an effective date of July 1, 2025 [6]. Financial Aspects - Franco-Nevada has approximately $2 billion in available capital and generates $275-$300 million in free cash flow each quarter, positioning the company well to finance the transaction [7]. - The Côté Gold Mine is projected to produce between 360,000 to 400,000 ounces of gold in 2025, with cash costs estimated between $950 to $1,100 per ounce [4]. Resource and Production Potential - The Côté Gold Mine has a significant mineral resource base of over 16 million ounces of Measured and Indicated Mineral Resources and 4 million ounces of Inferred Mineral Resources [1][4]. - The mine's resource base has doubled since the addition of the Gosselin deposit in 2021, indicating strong growth potential [5]. Operational Insights - The Côté Gold Mine utilizes modern technology, including a fully autonomous haul truck fleet and efficient milling capabilities, which positions it in the lower half of the cost curve [12]. - The mine is expected to ramp up to a nameplate capacity of 13 million tonnes per annum (Mtpa) by the end of 2025, with potential for future expansion to 20 Mtpa [12]. Partnership and Future Outlook - Franco-Nevada has partnered with IAMGOLD and Sumitomo for the acquisition, which allows for detailed due diligence and future collaboration on resource growth and mill capacity expansion [2][3]. - IAMGOLD anticipates further growth opportunities at the Côté Gold Mine, including the integration of the Gosselin zone into an updated mine plan [3].

Core Insights - Franco-Nevada Corporation (FNV) reported record adjusted earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.00, with a year-over-year increase of 51% [1] - The company achieved record revenues of $368 million in the reported quarter, reflecting a 43.5% year-over-year growth, driven by higher GEOs sold and record gold prices [2] - Adjusted EBITDA rose 49% year over year to $322 million, with an adjusted EBITDA margin of 87.4%, up from 84.2% in the previous quarter [4] Financial Performance - FNV sold 100,623 GEOs from Precious Metal assets in the reported quarter, an 8% increase from the prior-year quarter, influenced by lower deliveries from Cobre Panama and Antamina, offset by higher contributions from other mines [3] - At the end of Q1 2025, Franco-Nevada had $1.13 billion in cash, down from $1.45 billion at the end of 2024, with an operating cash flow of $289 million, up from $179 million year-over-year [5] - The company remains debt-free and has available capital of $2.1 billion for portfolio expansion and dividends [5] Market Performance - Franco-Nevada's stock has increased by 27.9% over the past year, compared to the industry's growth of 45.7% [6] - The company currently holds a Zacks Rank 2 (Buy) [9] Peer Comparisons - Royal Gold, Inc. (RGLD) reported an adjusted EPS of $1.51, a 66% year-over-year increase, with revenues of $193 million, up 30% year over year [10] - B2Gold Corp (BTG) reported adjusted EPS of 9 cents, a 50% year-over-year improvement, with revenues of $532 million compared to $461 million in the prior year [11] - Kinross Gold Corporation (KGC) posted adjusted earnings of 30 cents per share, up from 10 cents in the prior year, with revenues rising 38.4% year over year to $1.49 billion [11]

Group 1 - Franco-Nevada Corporation announced the election of its board of directors during the 2025 Annual and Special Meeting of Shareholders, with detailed voting results provided [1][2] - The nominees received high approval rates, with Paul Brink receiving 99.79% of votes for, and Hugo Dryland receiving 99.96% [2] - The company is recognized as a leading gold-focused royalty and streaming company, boasting a diversified portfolio of cash-flow producing assets [3] Group 2 - Franco-Nevada Corporation operates a business model that offers investors gold price and exploration optionality while minimizing exposure to cost inflation [3] - The company is debt-free and utilizes its free cash flow for portfolio expansion and dividend payments [3] - Franco-Nevada trades under the symbol FNV on both the Toronto and New York stock exchanges [3]

Financial Performance - Total revenue for Q1 2025 was $368.4 million, a 43.5% increase from $256.8 million in Q1 2024[4] - Net income for Q1 2025 reached $209.8 million, up 45.3% compared to $144.5 million in Q1 2024[4] - Gross profit for Q1 2025 was $261.5 million, representing a 58.5% increase from $165.0 million in Q1 2024[4] - Basic earnings per share for Q1 2025 were $1.09, an increase from $0.75 in Q1 2024[4] - For Q1 2025, the company reported a net income of $209.8 million, resulting in a diluted earnings per share (EPS) of $1.09, compared to a net income of $144.5 million and an EPS of $0.75 in Q1 2024[61] - Total revenue for Q1 2025 was $368.4 million, an increase from $256.8 million in Q1 2024, driven by higher revenues from precious metals and energy segments[62] - Gold revenue increased to $245.9 million in Q1 2025 from $160.9 million in Q1 2024, representing a 52.7% growth[47] - Energy revenue increased to $58.0 million in Q1 2025 from $43.8 million in Q1 2024, a growth of 32.5%[47] Cash Flow and Assets - Cash and cash equivalents decreased to $1,128.1 million at March 31, 2025, down 22.2% from $1,451.3 million at December 31, 2024[3] - Total assets increased to $6,653.4 million at March 31, 2025, a rise of 5.1% from $6,330.4 million at December 31, 2024[3] - Shareholders' equity rose to $6,292.5 million at March 31, 2025, an increase of 4.9% from $5,996.6 million at December 31, 2024[3] - Operating cash flows before changes in non-cash working capital for Q1 2025 were $287.0 million, compared to $185.7 million in Q1 2024[5] Dividends and Shareholder Returns - The company declared dividends of $73.4 million in Q1 2025, up from $69.4 million in Q1 2024[6] - The company declared dividends of $0.38 per common share in Q1 2025, up from $0.36 in Q1 2024, with total cash dividends paid amounting to $70.2 million compared to $58.9 million in the prior year[60] Acquisitions and Investments - The company acquired royalty, stream, and working interests totaling $505.2 million in Q1 2025, compared to $146.9 million in Q1 2024[5] - The Company acquired a 4.25% NSR royalty for $300.0 million on Discovery Silver Corp.'s Porcupine Complex and provided a $100.0 million senior secured term loan[17] - The Company completed the acquisition of a precious metals stream from Sibanye Stillwater Limited for $500.0 million, primarily comprising gold and platinum components[23] - The company reported a total of $4,539.0 million in royalty, stream, and working interests as of March 31, 2025, up from $4,098.8 million at December 31, 2024[43] Expenses and Costs - General and administrative expenses rose to $8.7 million in Q1 2025, compared to $4.2 million in Q1 2024, reflecting a 69% increase[50] - Share-based compensation expenses totaled $5.7 million in Q1 2025, up from $2.8 million in Q1 2024, indicating a 103.6% increase[51] - The company recorded $38.5 million in costs of sales for Q1 2025, compared to $33.6 million in Q1 2024, marking a 14.6% increase[49] Taxation and Regulatory Matters - The company is currently undergoing an audit by the Canada Revenue Agency for its taxation years from 2013 to 2021[56] - The Company received reassessments from the CRA for taxation years 2013-2016, resulting in additional taxes of $20.8 million (C$29.9 million) and penalties of $8.3 million (C$12.0 million) related to its Mexican subsidiary[84] - For taxation years 2014-2019, the Company faces potential additional taxes of $77.4 million (C$111.1 million) and penalties of $12.2 million (C$17.6 million) concerning its Barbadian subsidiary[84] - If the CRA reassesses taxation years 2020-2024, the Company estimates potential additional taxes of $273.3 million (C$392.8 million) and penalties of $103.3 million (C$148.6 million)[91] - The Company has filed formal Notices of Objection with the CRA against the reassessments and has posted security for 50% of the reassessed amounts[86] - The Company intends to seek relief from double taxation under the Canada-Mexico tax treaty and the Canada-Barbados tax treaty if required[87][92] - The CRA expanded its audit to include the 2020 and 2021 taxation years, but no proposals or reassessments have been received for these years[93] - The Company believes it has complied with all applicable tax laws and has not recorded any liabilities for the Transfer Pricing Reassessments in its financial statements[94] - The CRA audit is ongoing, and there is a risk of additional income taxes, penalties, and interest if the CRA successfully challenges the Company's tax filings[95] Commitments and Future Obligations - As of March 31, 2025, the company has capital commitments totaling $1.0 billion, including $501.6 million for the Cascabel stream and $300.0 million for the Porcupine Complex royalty[79] - The company has remaining commitments of up to $44.7 million related to the Royalty Acquisition Venture as of March 31, 2025[25] - The company has commitments related to environmental and social initiatives in connection with its acquisition of royalty and stream interests[82] - The company has a commitment of 118,534 common shares (equivalent to $15.0 million) related to the Yanacocha royalty, contingent on achieving commercial production[79] - The company has a commitment of $12.5 million for the Copper World royalty, contingent on project permits and approvals[79] - The company has a commitment of $4.9 million related to sourcing new precious metals and copper royalties through a joint acquisition agreement[79] - The Company has a fixed delivery commitment of 8,760 ounces of gold per annum from January 1, 2021, to December 31, 2025[77] - The company has a purchase commitment for gold deliveries indexed to copper production, with specific delivery rates until certain thresholds are met[71]

Core Viewpoint - Franco-Nevada reported its best financial results ever, driven by elevated gold prices, strong production from energy interests, and a robust deal pipeline, while remaining debt-free and well-capitalized [1][4]. Financial Highlights - Revenue reached $368.4 million, a 43% increase compared to Q1 2024, with 126,585 GEOs sold, up 3% year-over-year [4][6]. - Operating cash flow was $288.9 million, marking a 62% increase from Q1 2024, and adjusted EBITDA was $321.9 million, a 49% increase [4][36]. - Net income was $209.8 million, or $1.09 per share, reflecting a 45% increase compared to the previous year [4][38]. Portfolio and Production - The precious metals segment accounted for 79% of total revenue, with gold contributing 67% [6][18]. - The company sold 100,623 GEOs from precious metal assets, an 8% increase from Q1 2024, primarily due to higher sales from Candelaria and Hemlo [9][18]. - Diversified assets generated $74.8 million in revenue, a 21.4% increase from Q1 2024, despite a 13.1% decrease in GEOs contributed by these assets [18][22]. Growth and Strategic Initiatives - Franco-Nevada completed a $448.6 million financing package for the Porcupine Complex, expecting to receive approximately 6,000 GEOs in 2025 [10]. - The company acquired a precious metals stream from Sibanye Stillwater's Western Limb Mining Operations for $500 million, enhancing its portfolio [10]. - The company is committed to ESG initiatives, funding various community projects and maintaining high ratings from ESG agencies [8][18]. Dividend and Shareholder Information - A quarterly dividend of $0.38 per share was declared, representing a 5.6% annual increase [23][24]. - The company has a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends for additional shares [24].

Core Viewpoint - Franco-Nevada Corporation has published its 2025 Asset Handbook and Sustainability Report, showcasing its diverse portfolio and commitment to sustainability [1][2]. Asset Handbook - The 2025 Asset Handbook provides a comprehensive overview of the company's material assets, including performance metrics and future outlook [2]. - Franco-Nevada is recognized as a leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets [2][6]. - The company has achieved a compounded annual growth rate of 16% in total shareholder returns since its IPO in 2007 [3]. - The portfolio includes 119 cash-flow producing assets that generated approximately $1.0 billion in Adjusted EBITDA in 2024 [3]. Sustainability Report - The 2025 Sustainability Report highlights the company's accomplishments in 2024 and its commitments to ESG leadership [2]. - Responsible capital allocation includes monitoring health and safety, carbon footprint, water management, and biodiversity [2]. - Community contributions have increased year-over-year, supporting mining industry organizations and diversity initiatives [2]. - The company has welcomed a new diverse director to its Board, emphasizing good governance and shareholder alignment [2]. Financial Performance - Since 2008, Franco-Nevada has seen growth in annual GEOs of 2.8 times and revenue growth of 7.4 times [3]. - The portfolio is well-diversified by asset, operator, geography, and commodity, with no single asset expected to contribute more than 15% of revenue in 2025 [3]. - The mining assets have a long mine life of 38 years for M&I Resource Royalty Ounce [3]. - The company has no debt and $1.7 billion in available capital, with a strong pipeline of precious metal opportunities [3]. Recognition and Awards - Franco-Nevada was named one of Corporate Knights' Best 50 Corporate Citizens in Canada in 2024 and ranked third among mining companies in The Globe and Mail's 2024 Board Games [4]. - The company has a high level of Board and management share ownership, totaling over C$200 million [4]. Climate Action and Transparency - The company has begun measuring its corporate emissions against its reduction targets adopted in 2024 [6]. - Franco-Nevada aligns its ESG reporting with leading standards and has received recognition from rating agencies, including an "AA" rating by MSCI [8].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective metrics for momentum, addressing the challenges in defining momentum [2] Group 2: Franco-Nevada (FNV) Performance - Franco-Nevada currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - FNV shares have increased by 2.91% over the past week, outperforming the Zacks Mining - Gold industry, which rose by 2.54% [6] - Over the last quarter, FNV shares have risen by 25.1%, and over the past year, they have gained 38.36%, while the S&P 500 has seen declines of -9.16% and gains of 10.9%, respectively [7] Group 3: Trading Volume and Earnings Outlook - FNV's average 20-day trading volume is 1,257,406 shares, which serves as a bullish indicator when combined with rising stock prices [8] - In the past two months, 6 earnings estimates for FNV have been revised upwards, increasing the consensus estimate from $4.02 to $4.04 [10] - For the next fiscal year, 3 estimates have moved up while 1 has been revised down, indicating a positive trend in earnings outlook [10] Group 4: Conclusion - Considering the positive momentum indicators and earnings revisions, FNV is positioned as a strong buy candidate for investors seeking short-term gains [12]