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]

Company Performance - SSR Mining (SSRM) has outperformed its peers in the Basic Materials sector with a year-to-date return of approximately 47.3% compared to the sector average of 3.6% [4] - The Zacks Consensus Estimate for SSRM's full-year earnings has increased by 18.1% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] - SSR Mining holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] Industry Context - SSR Mining is part of the Mining - Miscellaneous industry, which consists of 58 companies and currently ranks 147 in the Zacks Industry Rank [5] - The average return for stocks in the Mining - Miscellaneous industry this year is 3.8%, indicating that SSR Mining is performing significantly better than its industry peers [5] - Another notable performer in the Basic Materials sector is Franco-Nevada (FNV), which has achieved a year-to-date return of 44.7% and also holds a Zacks Rank of 2 (Buy) [4][6]

Gold Market Overview - Gold price has surged by almost 30% this year, nearing the resistance point at $3,500, with analysts predicting it could reach $3,700 or even $4,000 [1][2] Company Analysis - **Wheaton Precious Metals Corp (WPM)**: - Best gold stock to buy, with a stock price increase of 51% this year and 145% over the last five years, outperforming gold [3] - Generated over $1.28 billion in annual revenue and a net profit of over $552 million last year, using profits to pay shareholders and acquire more rights to gold mines [4] - Trades at a forward P/E ratio of 41, higher than major growth companies like NVIDIA and Microsoft [4] - **Franco-Nevada (FNV)**: - Another quality gold stock, financing gold mining companies in exchange for royalties, ensuring low operating expenses [5] - Generated over $1.1 billion in annual revenue and a net income of $552 million last year, with a forward P/E ratio over 40 [6] - **Royal Gold (RGLD)**: - Offers exposure to gold without operating mines, generating $712 million in revenue and a net profit of nearly $350 million last year, resulting in a margin of nearly 50% [7] - Stock price has surged by over 56% in the last 12 months, with a P/E multiple of 28, making it cheaper than Wheaton and Franco-Nevada [8] Investment Vehicles - **Gold ETFs**: - SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are popular options, with IAU recommended due to its lower expense ratio of 0.25% compared to GLD's 0.40% [9] - Analysts also recommend gold mining ETFs like VanEck Vectors Gold Miners ETF (GDX), Sprott Gold Miners ETF (SGDM), and iShares MSCI Global Gold Miners ETF (RING) [10]

Group 1 - The document provides a link for participants to join a conference call without operator assistance [1]

Core Viewpoint - Franco-Nevada's shares have decreased by approximately 1.9% since the last earnings report, although this performance has outpaced the S&P 500 [1] Group 1: Earnings Report and Estimates - Recent estimates for Franco-Nevada have trended downward, with the consensus estimate shifting by 11.23% [2] - The stock has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the upcoming months [4] Group 2: VGM Scores - Franco-Nevada has a Growth Score of D, a Momentum Score of C, and a Value Score of F, placing it in the lowest quintile for the value investment strategy [3] - The overall aggregate VGM Score for the stock is F, which is significant for investors not focused on a single strategy [3]

Corporate Summary - Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets [3] - The company's business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation [3] - Franco-Nevada is debt-free and utilizes its free cash flow to expand its portfolio and pay dividends [3] - The company trades under the symbol FNV on both the Toronto and New York stock exchanges [3] Financial Filings - Franco-Nevada announced the filing of its Annual Information Form, Consolidated Annual Financial Statements, and Management's Discussion and Analysis for the year ended December 31, 2024 [1] - The company has also filed its Form 40-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission [1] - Copies of these documents can be obtained via www.sedarplus.com or www.sec.gov [1]

Core Viewpoint - Franco-Nevada Corporation (FNV) achieved a new 52-week high of $148.02 following year-over-year growth in both revenue and earnings in its fourth-quarter 2024 results, although it closed lower at $143.61 [1] Financial Performance - FNV reported adjusted earnings of 95 cents per share for the third quarter of 2024, surpassing the Zacks Consensus Estimate of 89 cents, reflecting a 6% year-over-year increase [1] - The company generated revenues of $321 million in the reported quarter, marking a 6% year-over-year increase, driven by record gold prices and strong production from Candelaria [2] - Adjusted EBITDA rose 8.6% year over year to $277 million, with an adjusted EBITDA margin of 86.4%, up from 83.9% in the prior-year quarter [3] Production and Sales - FNV sold 95,565 Gold Equivalent Ounces (GEOs) from Precious Metal assets in the reported quarter, a decrease of 20.1% from the prior-year quarter [3] - For 2024, FNV reported total GEOs of 463,334 and expects GEOs between 465,000 and 525,000 in 2025, indicating a 7% increase at the midpoint from 2024 [6] Cash Position and Guidance - At the end of 2024, FNV had $1.45 billion in cash, an increase from $1.42 billion at the end of 2023, with an operating cash flow of $829.5 million, down from $991 million in 2023 [4] - The company is debt-free and plans to use its free cash flow for portfolio expansion and dividend payouts, with available capital of $2.4 billion [4] - FNV's 2024 adjusted earnings per share were $3.21, down from $3.56 in the prior year, but beat the Zacks Consensus Estimate of $3.09 [5] - Revenues for 2024 decreased by 9% year over year to $1.11 billion, aligning with the Zacks Consensus Estimate [5] - FNV anticipates 2025 revenues to be 25% higher than the 2024 actual [6] Stock Performance - FNV's shares have increased by 27.7% over the past year, compared to the industry's growth of 38.8% [7]