Franco-Nevada(US:FNV)2025-11-04 17:00Financial Data and Key Metrics Changes - Franco-Nevada reported record financial results for Q3 2025, with total revenue increasing by 77% to $487.7 million compared to the same quarter in 2024 [11][12] - Adjusted EBITDA reached a record of $427.3 million, up 81% year-over-year [11][12] - Adjusted net income was $275 million, or $1.43 per share, reflecting a 79% increase from the prior year [12][13] - The average gold price increased by 40% year-over-year, while the average silver price rose by 34% [8][9] Business Line Data and Key Metrics Changes - Total GEOs (Gold Equivalent Ounces) sold increased by 26% to 138,772 in Q3 2025, compared to 110,110 in Q3 2024 [9][11] - Precious metal GEOs sold were 119,109, up 41% from the previous year [9][11] - Approximately 11,000 GEOs were delivered and sold from Cobre Panama, contributing to the strong performance [10][11] Market Data and Key Metrics Changes - The company benefited from high gold prices and strong operations, with 85% of revenue coming from precious metals [3][11] - The company’s revenue was sourced 88% from the Americas, with no single asset contributing more than 10% of total revenue [13] Company Strategy and Development Direction - The company has made six significant acquisitions over the last 18 months, enhancing its gold interests and positioning for growth [3][4] - The deal pipeline remains active, with a focus on organic growth and potential new acquisitions, particularly in precious metals [5][20] - The company is exploring opportunities in critical minerals and has plans to support strong teams in Australia [6][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential reopening of Cobre Panama and the positive sentiment towards mining in Panama [4][76] - The company expects roughly 50% growth in GEOs over five years compared to last year, driven by recent acquisitions and high gold prices [4][5] - Management indicated that the focus remains on adding quality assets while maintaining discipline in acquisitions [25][33] Other Important Information - The company reached a settlement with the Canada Revenue Agency regarding tax disputes, resolving issues for the years 2013 to 2019 [15][16] - The company ended the quarter debt-free, with $236.7 million in cash and cash equivalents, and total available capital exceeding $1.8 billion [15] Q&A Session Summary Question: Can you talk about the commodity focus in the deal pipeline? - Management indicated that the primary focus remains on precious metals, with good prospects for adding more gold deals, while also being open to diversified opportunities if they present good value [18][20] Question: Will the focus be more on organic growth instead of new deals? - Management clarified that while there is strong organic growth potential, they remain focused on acquiring new deals as well [25] Question: How does the recent gold price environment affect shareholder returns? - Management stated that their priority is to add quality assets, and while they plan to increase dividends, share buybacks are not currently being considered [33] Question: What is the visibility on mining from different areas into Q4? - Management acknowledged limited visibility but expressed optimism about the performance of Musselwhite and Hemlo under new ownership [37][43] Question: What are the catalysts for the restart of Cobre Panama? - Management highlighted the ongoing environmental audit and positive government sentiment as key factors for the potential restart [74][76] Question: What is the outlook for Taca Taca and San Jorge in Argentina? - Management expressed optimism about the regulatory environment in Argentina and the potential for these assets to attract investment [85][88]