Franco-Nevada(FNV) - 2024 Q3 - Quarterly Report

Financial Performance - Franco-Nevada reported revenue of $275.7 million for Q3 2024, a decrease of 10.9% compared to$ 309.5 million in Q3 2023[14]. - Operating income for Q3 2024 was $182.0 million, compared to$ 187.0 million in Q3 2023, reflecting a decrease of 0.5%[14]. - Net income for Q3 2024 was $152.7 million, down 12.8% from$ 175.1 million in Q3 2023[14]. - Adjusted EBITDA for Q3 2024 was $236.2 million, or$ 1.23 per share, reflecting a 7.4% decline[18]. - Year-to-date 2024 revenue was $792.6 million, a decrease of 13.4%, but a 9.7% increase when excluding Cobre Panama[19]. - Net income in YTD 2024 was$ 376.7 million, or $1.96 per share, down from$ 516.1 million, or $2.69 per share in YTD 2023, a decrease of 27.0%[99]. - Adjusted Net Income for YTD 2024 was$ 434.7 million, or $2.26 per share, compared to$ 510.2 million, or $2.66 per share in YTD 2023, a decrease of 15.0%[100]. Revenue Breakdown - Franco-Nevada's revenue from precious metals accounted for 75.5% of total revenue in YTD 2024[12]. - Revenue from Cobre Panama was$ 275.7 million in Q3 2024, compared to $67.3 million in Q3 2023, indicating a significant increase[59]. - Revenue from the South America region for Q3 2024 was$ 100.6 million, slightly down from $98.6 million in Q3 2023[59]. - The Guadalupe-Palmarejo asset in the United States generated$ 22.0 million in Q3 2024, an increase from $20.3 million in Q3 2023, marking an 8.4% growth[59]. - Revenue from U.S. Energy interests decreased to$ 29.3 million in Q3 2024, compared to $30.7 million in Q3 2023[73]. - Revenue from U.S. Energy interests decreased to$ 88.8 million in YTD 2024 from $102.2 million in YTD 2023, a decrease of 13.2%[94]. Production and Sales - Franco-Nevada sold 110,110 gold equivalent ounces (GEOs) in Q3 2024, down 31.5% from 160,848 GEOs in Q3 2023[14]. - The company expects its streams to contribute between 227,500 and 242,500 of its GEO sales for 2024, with YTD 2024 sales from streams at 172,526 GEOs[58]. - The Tocantinzinho mine is expected to average annual gold production of 174,700 ounces over a 10.5-year mine life, with Franco-Nevada owning a 12.5% gold stream on production[47]. - The Greenstone mine's production estimate was revised to between 110,000 and 130,000 gold ounces for 2024, down from 175,000 to 205,000 ounces[48]. - The Salares Norte mine's estimated 2024 gold equivalent production was revised to between 40,000 and 50,000 ounces, down from 220,000 to 240,000 ounces[49]. Costs and Expenses - Cash costs per GEO sold were$ 290 in Q3 2024, a slight decrease from $304 in Q3 2023[14]. - Costs of sales for Q3 2024 were$ 31.9 million, down from $48.9 million in Q3 2023, reflecting a decrease in GEOs sold[75]. - Depletion and depreciation expense totaled$ 54.2 million in Q3 2024, down from $68.1 million in Q3 2023[77]. - Cash costs per GEO sold for the three months ended September 30, 2024, were$ 290, compared to $304 for the same period in 2023, a decrease of 4.6%[151]. Assets and Equity - As of September 30, 2024, total assets were$ 6,299.6 million, an increase from $5,994.1 million as of December 31, 2023[15]. - Total shareholders' equity increased to$ 5,986.8 million as of September 30, 2024, compared to $5,769.1 million at the end of 2023[15]. - Cash and cash equivalents decreased to$ 1,317.3 million as of September 30, 2024, from $1,421.9 million as of December 31, 2023[119]. Dividends - In Q3 2024, the company declared a quarterly dividend of$ 0.36 per share, a 5.9% increase from $0.34 per share in Q3 2023, resulting in total dividends of$ 69.3 million for the quarter[38]. - For the nine months ended September 30, 2024, the company paid total dividends of $208.3 million, with$ 180.3 million paid in cash and $28.0 million settled in common shares under the Dividend Reinvestment Plan[38]. Taxation and Legal Matters - The company recognized an additional income tax expense of$ 30.6 million due to changes in Barbados tax legislation for the nine months ended September 30, 2024[41]. - Total income tax expense for Q3 2024 was $42.2 million, compared to$ 24.9 million in Q3 2023, with a total of $165.0 million for the nine months ended September 30, 2024, compared to$ 79.5 million in the same period of 2023[41]. - The company is pursuing legal remedies to protect its investment in Cobre Panama, including arbitration under the Canada-Panama Free Trade Agreement[129]. - The Company has filed formal Notices of Objection with the CRA against the reassessments and has posted security for 50% of the reassessed amounts[132]. Forward-Looking Statements - Forward-looking statements indicate management's expectations regarding future growth and performance, but actual results may differ due to various risks and uncertainties[164]. - Management believes that fluctuations in commodity prices and currency values could significantly affect revenue and performance[164].