Franco-Nevada(US:FNV) Prnewswire·2024-11-06 23:04Core Viewpoint - The company reported record gold prices leading to higher revenues, Adjusted EBITDA, and earnings in Q3 2024 compared to Q2 2024, despite a decline in GEO sales compared to Q3 2023 due to the absence of contributions from Cobre Panama and the impact of record gold prices on non-gold revenue conversion [1][2]. Financial Summary - Revenue for Q3 2024 was $275.7 million, down 11% compared to Q3 2023, but up 14% when excluding Cobre Panama [2]. - GEOs sold in the quarter totaled 110,110, a decrease of 32% compared to Q3 2023, with 22% attributed to Cobre Panama and 3% due to record gold prices [2]. - Operating cash flow was $213.6 million, down 9% from Q3 2023 [2]. - Net income was $152.7 million or $0.79 per share, down 13% from Q3 2023 [2]. - Adjusted EBITDA was $236.2 million or $1.23 per share, down 7% from Q3 2023, but up 16% excluding Cobre Panama [2]. - Adjusted Net Income was $153.9 million or $0.80 per share, down 12% from Q3 2023, but up 12% excluding Cobre Panama [2]. - The company declared a quarterly dividend of $0.36 per share, marking a 5.88% annual increase [2]. Sector-Leading ESG - The company is rated 1 in the precious metals sector and 1 gold company by Sustainalytics, with an AA rating from MSCI and Prime status from ISS ESG [3]. - It is committed to the World Gold Council's Responsible Gold Mining Principles and has a 40% diverse representation at the Board and top leadership levels [3]. Growth and Optionality - The company has a strong growth profile driven by mine expansions and new mines, with a diverse portfolio of long-life streams and high optionality royalties [4]. - The Tocantinzinho mine in Brazil has recently commenced production, contributing to the company's revenue [1][9]. Guidance - The company revised its 2024 GEO sales guidance to 445,000 to 465,000, down from the original guidance of 480,000 to 540,000 due to lower than expected gold production at Candelaria and the impact of record gold prices [6]. Portfolio Additions - The company acquired a 1.8% NSR on Yanacocha operations for $210 million, with a contingent payment of $15 million [8]. - A gold stream on the Cascabel Copper-Gold Project was acquired for a total of $750 million, with $525 million funded by the company [8]. - A term loan of $35 million was provided to EMX Royalty Corporation [8]. Q3 2024 Portfolio Updates - Precious Metal assets sold 84,377 GEOs, down 32.7% from Q3 2023, with contributions from Tocantinzinho and Greenstone mines partially offsetting lower contributions from Candelaria and Antapaccay [9]. - Candelaria's gold production guidance was revised down to 92,000 to 102,000 ounces for 2024 due to lower grades [9]. - Cobre Panama's production remains halted, with plans for an integrated audit expected in early 2025 [10].