Franco-Nevada Earnings Miss Estimates in Q3, Shares Decline 11%

Core Insights - Franco-Nevada Corporation (FNV) experienced an 11% decline in share price following year-over-year decreases in both revenue and earnings for Q3 2024, attributed to lower contributions from key assets and the Cobre Panama mine being on preservation [1][2] Financial Performance - Adjusted earnings per share for FNV were reported at 80 cents, missing the Zacks Consensus Estimate of 83 cents, marking a 12% decrease year-over-year [2] - Revenues for the quarter totaled $276 million, reflecting a 10.9$236 million, with an adjusted EBITDA margin of 85.7% [4] Production and Asset Contributions - The company sold 84,377 Gold Equivalent Ounces (GEOs) in the reported quarter, down from 90,370 GEOs in the prior-year quarter, primarily due to lower contributions from Candelaria and Antapaccay [3] - Higher contributions were noted from Subika, Tocantinzinho, Greenstone Mines, and the recently acquired Yanacocha royalty [3] Cash Position and Capital - At the end of Q3 2024, FNV had $1.32 billion in cash, down from$1.42 billion at the end of 2023, with an operating cash flow of $587 million for the first nine months of 2024, down from$708 million in the prior-year period [5] - The company remains debt-free and has $2.3 billion in available capital for portfolio expansion and dividends [5] Market Performance - Over the past year, FNV's shares have increased by 1.1%, significantly underperforming the industry average growth of 49.6% [6]