Franco-Nevada(US:FNV)2025-11-04 17:02Financial 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 Q3 2024 [12][14] - Adjusted EBITDA also reached a record, up 81% to $427.3 million from $236.2 million in the prior year [12][14] - Total GEOs sold increased by 26% to 138,772, with precious metal GEOs sold rising by 41% to 119,109 [10][12] - Adjusted net income was $275 million, or $1.43 per share, reflecting a 79% increase year-over-year [13][14] - Cash cost per GEO rose to $340 from $290, while margin per GEO increased by 42% to $3,116 [14] Business Line Data and Key Metrics Changes - The company benefited from strong contributions from key assets such as Cobre Panamá, Guadalupe, and Candelaria, along with recent acquisitions like Western Limb, Yanacocha, Porcupine, and Côté [10][11] - Approximately 11,000 GEOs were delivered from Cobre Panamá, contributing to the overall increase in GEOs sold [11] Market Data and Key Metrics Changes - Gold prices increased by 40% year-over-year, while silver prices rose by 34% [9] - The company noted a rebound in platinum and palladium prices, while iron ore prices remained flat and oil prices decreased [9] Company Strategy and Development Direction - The company aims for approximately 50% growth in GEOs over the next five years, driven by recent acquisitions and the potential restart of Cobre Panamá [5][6] - Franco-Nevada is focused on maintaining a disciplined approach to acquisitions, emphasizing organic growth alongside new deals [27][28] - The company is exploring opportunities in Australia and remains open to diversifying into other commodities like natural gas and lithium if good value is found [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of the Cobre Panamá mine closure and the potential for a positive shift in public sentiment towards mining in Panama [5][81] - The company is encouraged by the recent constructive comments from the President of Panama regarding the mine's future [5][81] - Management highlighted the importance of critical minerals and the positive developments in permitting processes for various projects [7][8] Other Important Information - The company reached a settlement with the Canada Revenue Agency regarding tax disputes, which will not require any tax payments on foreign earnings for the specified period [16][17] - Franco-Nevada remains debt-free, with total available capital exceeding $1.8 billion at the end of the quarter [16] Q&A Session Summary Question: Can you talk about the commodity focus in the deal pipeline? - Management confirmed 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 [21][24] Question: Will the focus shift more towards organic growth rather than new deals? - Management clarified that while organic growth is strong, there is still a good pipeline for new deals, and they will maintain discipline in acquisitions [27][28] Question: How does the recent gold price environment affect shareholder returns? - Management stated that their priority remains adding quality assets, with plans to increase dividends sustainably, but share buybacks are not currently being considered [35][36] Question: What is the visibility on NPIs and their performance? - Management indicated limited visibility on NPIs, but expressed optimism about their performance in the current high gold price environment [40][41] Question: What are the expectations for Cobre Panamá's restart? - Management is optimistic about the timeline for the restart, citing positive government comments and ongoing preparations [80][81] Question: How does the company view Argentina as a mining jurisdiction? - Management expressed a positive outlook on Argentina, highlighting recent regulatory changes that could attract investment [91][92]