Franco-Nevada Reports Q4 and Year-end 2024 Results
Canada NewsWire
TORONTO, March 10, 2025
Strong Fourth Quarter Performance
(in U.S. dollars unless otherwise noted)
TORONTO, March 10, 2025 /CNW/ - "Our portfolio delivered a strong fourth quarter resulting in GEO sales for the year that were near the top end of our revised GEO guidance range," stated Paul Brink, CEO. "Elevated gold prices drove higher quarterly revenue, Adjusted EBITDA and Adjusted Net Income compared to Q4 2023, even without a contribution from Cobre-Panama. Our strong balance sheet allowed us to complete more than $1.3B in acquisitions and commitments in 2024. Post year-end, we also announced a financing package to support Discovery Silver's acquisition of Newmont's Porcupine Complex in Timmins. Together, the transactions have the potential to add 85-95K GEOs per annum to our medium-term production profile. These new additions, along with a number of new mine starts, contribute to the strong growth outlined in our 2025 guidance and outlook over the next five years. The growth in our high cash flow margin business has also allowed us to increase dividends for the 18(th) consecutive year. We are encouraged that President Mulino has indicated a willingness to discuss Cobre Panama this year and that sentiment in Panama now appears more supportive of restarting the mine. Franco-Nevada remains debt-free and well capitalized to take advantage of a strong deal pipeline."
Q4 2024 Financial Highlights
-- $321.0 million in revenue, +6% compared to Q4 2023, or +30% excluding
Cobre Panama
-- 120,063 GEO1s sold in the quarter, -21% compared to Q4 2023, or -3%
excluding Cobre Panama
-- $243.0 million in operating cash flow, -14% compared to Q4 2023, or -4%
excluding Cobre Panama
-- $277.4 million in Adjusted EBITDA2 or $1.44/share, +9% compared to Q4
2023, or +31% excluding Cobre Panama
-- $175.4 million in net income or $0.91/share, compared to net loss of
$982.5 million, or $5.11 per share, in Q4 2023
-- $183.3 million in Adjusted Net Income2 or $0.95/share, +6% compared to Q4
2023, or +30% excluding Cobre Panama
Full Year 2024 Financial Highlights
-- $1,113.6 million in revenue, -9% compared to 2023, or +15%
excluding Cobre Panama
-- 463,334 GEOs sold in the year, -26% compared to 2023, or -7% excluding
Cobre Panama
-- $829.5 million in operating cash flow, -16% compared to 2023, or -2%
excluding Cobre Panama
-- $951.6 million in Adjusted EBITDA or $4.95/share, -6% compared to 2023,
or +16% excluding Cobre Panama
-- $552.1 million in net income or $2.87/share, compared to a net loss of
$466.4 million, or $2.43 per share, in 2023
-- $618.1 million in Adjusted Net Income or $3.21/share, -10% compared to
2023, or +15% excluding Cobre Panama
Strong Financial Position
-- High-margin business generating 86% Adjusted EBITDA Margin2 and 56%
Adjusted Net Income Margin2 in 2024
-- Strong financial position with $2.4 billion in available capital as at
December 31, 2024.
-- Quarterly dividend of $0.38/share effective Q1 2025, an annual increase
of 5.6%
Sector-Leading ESG
-- Rated #1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG -- Committed to the World Gold Council's Responsible Gold Mining Principles -- Partnering with our operators on community and ESG initiatives
Diverse, Long-Life Portfolio
-- Most diverse royalty and streaming portfolio by asset, operator and
country
-- Attractive mix of long-life streams and high optionality royalties
-- Long-life mineral resources and mineral reserves
Growth and Optionality
-- Mine expansions and new mines driving 5-year growth profile
-- Long-term optionality in gold, copper and nickel and exposure to some of
the world's great mineral endowments
-- Exposure to greater than 16 million acres of land
-- Strong pipeline of precious metal and diversified opportunities
GEOs and Revenue
Quarterly GEOs sold and
revenue by commodity
Q4 2024 Q4 2023
GEOs Revenue GEOs Revenue
Sold Sold
# (in millions) # (in millions)
PRECIOUS METALS
Gold (excluding
Cobre Panama) 79,532 $ 211.6 75,033 $ 149.9
Silver (excluding
Cobre Panama) 13,689 36.2 12,139 24.6
PGM 2,344 6.5 4,091 8.8
95,565 $ 254.3 91,263 $ 183.3
DIVERSIFIED
Iron ore 4,330 $ 11.6 5,620 $ 11.2
Other mining
assets 332 0.8 1,510 2.9
Oil 14,317 34.0 16,406 32.7
Gas 3,700 12.6 6,860 13.1
NGL 1,819 5.3 2,374 4.7
24,498 $ 64.3 32,770 $ 64.6
Royalty, stream
and working
interests
(excluding Cobre
Panama) 120,063 $ 318.6 124,033 $ 247.9
Interest revenue
and other
interest income -- $ 2.4 -- $ --
Revenue and GEOs
(excluding Cobre
Panama) 120,063 $ 321.0 124,033 $ 247.9
Cobre Panama -- $ -- 28,318 $ 55.4
Total revenue and
GEOs 120,063 $ 321.0 152,351 $ 303.3
Annual GEOs sold and
revenue by commodity
2024 2023
GEOs Revenue GEOs Revenue
Sold Sold
# (in millions) # (in millions)
PRECIOUS METALS
Gold (excluding
Cobre Panama) 295,167 $ 706.8 290,179 $ 565.6
Silver (excluding
Cobre Panama) 48,485 117.8 49,370 96.5
PGM 11,628 28.3 20,042 39.8
355,280 $ 852.9 359,591 $ 701.9
DIVERSIFIED
Iron ore 22,314 $ 50.5 24,421 $ 47.2
Other mining
assets 3,555 8.2 6,945 13.2
Oil 59,030 128.6 71,254 134.9
Gas 15,147 44.1 26,659 54.1
NGL 7,978 20.3 9,577 18.7
108,024 $ 251.7 138,856 $ 268.1
Royalty, stream
and working
interests
(excluding Cobre
Panama) 463,304 $ 1,104.6 498,447 $ 970.0
Interest revenue
and other
interest income -- $ 8.9 -- $ --
Revenue and GEOs
(excluding Cobre
Panama) 463,304 $ 1,113.5 498,447 $ 970.0
Cobre Panama 30 $ 0.1 128,598 $ 249.0
Total revenue and
GEOs 463,334 $ 1,113.6 627,045 $ 1,219.0
In Q4 2024, we sold 120,063 GEOs down 21% from Q4 2023, of which 18% was due to the impact of the halting of production at Cobre Panama. The outperformance of gold during the quarter relative to our other commodities also impacted the number of GEOs reported. Removing the impact of the halting of production at Cobre Panama and the change in the gold conversion ratio on a quarter-over-quarter basis, our GEOs sold would have increased by 7%. In addition, as at December 31, 2024, we held 6,216 stream gold ounces and 150,000 stream silver ounces in inventory. In Q4 2024, we recognized $321.0 million in revenue, up 6% from Q4 2023, or up 30% excluding Cobre Panama. During the quarter, we benefited from strong production from Candelaria, newly contributing assets, and record gold prices. Precious Metal revenue accounted for 79.2% of our revenue (65.9% gold, 11.3% silver, 2.0% PGM). Revenue was sourced 89.0% from the Americas (47.1% South America, 6.9% Central America & Mexico, 18.7% U.S., 16.3% Canada).
Portfolio Additions
-- Acquisition of Stream on Sibanye Stillwater Limited's Western Limb Mining
Operations: Subsequent to year-end, on February 28, 2025, our wholly
owned subsidiary, Franco-Nevada (Barbados) Corporation, completed the
previously announced acquisition of a precious metals stream (the
"Western Limb Mining Operations Stream") with reference to specific
production from Sibanye-Stillwater's Marikana, Rustenburg and Kroondal
mining operations in South Africa for a purchase price of $500.0 million.
Over the 45+ year life of mine, the stream GEO profile is expected to
comprise of approximately 70% gold and 30% platinum deliveries, based on
consensus commodity prices. The effective date of the Western Limb Mining
Operations Stream is September 1, 2024. First deliveries are expected
within 45 days of closing the transaction and will include approximately
7,000 GEOs related to production in the last four months of 2024.
Deliveries related to 2025 production are expected to total approximately
20,000 GEOs.
-- Pandora Royalty: Subsequent to year-end, on February 28, 2025,
Franco-Nevada and Sibanye-Stillwater completed the previously announced
conversion of the 5% net profit interest that Franco-Nevada holds on the
Pandora property to a 1% net smelter return royalty.
-- Financing Package with Discovery Silver on the Porcupine Complex: As
previously announced, subsequent to year-end, on January 27, 2025, we
agreed to acquire, through a wholly owned subsidiary, a 4.25% NSR royalty
for $300.0 million, consisting of two tranches, on Discovery Silver
Corp.'s Porcupine Complex, located in Ontario, Canada. We also committed
to a $100.0 million senior secured term loan and purchased subscription
receipts for $48.6 million (C$70.9 million). The financing package,
totaling $448.6 million, provides Discovery with proceeds to acquire and
fund a planned capital program for the Porcupine Complex. Closing of the
transactions are subject to customary conditions, including the
successful completion of the acquisition by Discovery of the Porcupine
Complex (which is itself subject to conditions, including, without
limitation, receipt of certain regulatory consents and approvals), and is
expected to occur in Q2 2025. Assuming the transactions close in April
2025, we expect to receive approximately 6,000 GEOs in 2025.
-- Acquisition of Royalty on Hasaya Metals Inc.'s Urasar Project: Subsequent
to year-end, on January 21, 2025, we acquired a 0.625% NSR on Hayasa
Metals Inc.'s Urasar gold-copper project in northern Armenia for $0.55
million pursuant to a joint acquisition agreement with EMX Royalty Corp.
-- Option to Acquire Royalty with Brazil Potash Corp.: On November 1, 2024,
we acquired an option from Brazil Potash Corp. ("Brazil Potash") for $1.0
million to purchase a 4.0% gross revenue royalty on potash produced from
Brazil Potash's Autazes development stage project in Brazil.
Environmental, Social and Governance ("ESG") Updates
We continue to rank highly with leading ESG rating agencies and were recently named by Sustainalytics as the #1 ranked gold company for 2025. In Q4 2024, we expanded our community engagement and contributions with existing partners, including teaming up with G Mining Ventures to fund reforestation and social projects in Brazil, Endeavour Mining to help provide funding for the Great Green Wall project in Senegal, and Glencore to fund an anemia health project in Peru. Following year-end, with the appointment of Daniel Malchuk to our board of directors, we achieved our board diversity target to appoint a racially or ethnically diverse director by our 2025 annual meeting.
Guidance and Outlook
We present our guidance in reference to GEO sales. For streams, our guidance reflects GEOs that have been delivered from the operators of our assets and that we have subsequently sold. Our GEO deliveries may differ from operators' production based on timing of deliveries and due to recovery and payability factors. Our GEO sales may differ from GEO deliveries based on the timing of the sales. For royalties, GEO guidance reflects the timing of royalty payments or accruals.
Our 2025 guidance and long-term outlook are based on the following assumed commodity prices: $2,800/oz Au, $31/oz Ag, $950/oz Pt, $950/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas.
The 2025 guidance and long-term outlook is based on assumptions including the forecasted state of operations from our assets based on the public statements and other disclosures by the third-party owners and operators of the underlying properties and our assessment thereof.
2025 Guidance
We expect our 2025 revenue to be more than 25% higher than in 2024. This is based on our budgeted gold price of $2,800/oz and the mid-point of our Total GEOs guidance range provided below. We anticipate a 14% increase in Precious Metal GEOs and a 7% increase in our Total GEOs for 2025 compared to 2024, assuming no contributions from Cobre Panama.
2025 Guidance 2024 Actual
Precious Metal GEO sales 385,000 to 425,000 GEOs 355,310 GEOs
Total GEO sales 465,000 to 525,000 GEOs 463,334 GEOs
1 We expect our streams to contribute between 255,000
and 285,000 of our GEO sales for 2025.
2 Our guidance does not reflect any incremental revenue
from additional contributions we may make to the Royalty
Acquisition Venture with Continental as part of our
remaining commitment of $46.3 million.
The anticipated 14% increase in Precious Metal GEOs largely reflects the recent additions of the Yanacocha royalty, the Western Limb Mining Operations Stream, and the Porcupine Complex royalty which is expected to close in Q2 2025. We also expect to benefit from the continued ramp-up of newly constructed mines and initial contributions from Valentine Gold. For Total GEOs, the anticipated 7% increase over 2024 is expected to be driven by higher Precious Metal GEOs, partly offset by lower GEOs from our Diversified assets. We are forecasting higher production from our Diversified assets although the expected contribution to GEOs from these assets is lower than in 2024 as we have assumed significantly higher gold prices and slightly lower energy and iron ore prices in calculating the GEO contribution. For reference, a $100 increase in the price of gold from our current assumption of $2,800/oz would result in a decrease of approximately 4,750 GEOs, with all other commodity prices and production levels constant.
Based on our assumed commodity prices, we expect our revenue mix for 2025 to be comprised of 70% gold, 11% silver, 2% PGMs, 9% oil and NGLs, 4% natural gas, 3% iron ore with the balance being from other commodities.
We expect our effective tax rate to be between 19% and 21%.
Long-Term Outlook
For 2028, we expect Precious Metal GEOs to increase to between 400,000 and 440,000 GEOs and Total GEOs to increase to between 505,000 and 565,000 GEOs, a 18% and 15% increase, respectively, compared to 2024. For 2029, we expect Precious Metal GEOs to increase to between 375,000 and 415,000 GEOs and Total GEOs to increase to between 490,000 and 550,000 GEOs, a 11% and 12% increase, respectively, compared to 2024. We have not assumed any contribution from Cobre Panama in this outlook, although there is potential for materially higher GEOs should it restart production, depending on the conditions of any such restart. Based on the average of the next five years of the Cobre Panama mine plan, the asset has the potential to contribute as much as 130,000 to 150,000 GEOs annually.
The five-year outlook reflects the expected commencement of production at Valentine Gold, Stibnite, Eskay Creek, Castle Mountain Phase 2, the Coroccohuayco project at Antapaccay, the expected underground expansion at Candelaria, and the long-term expansion of Magino. We also anticipate an increase in silver production from Antamina due to higher silver grades. The outlook includes a step-down starting in 2027 in our stream from 68% to 40% of gold and silver produced at Candelaria, and a reduction starting in 2028 in our stream deliveries at Antapaccay, where our stream will be based on 30% of gold and silver produced rather than indexed to copper production. Production at Guadalupe-Palmarejo is currently expected to decrease in 2029 based on the latest life of mine plan.
With respect to our Diversified assets, we anticipate production growth from the continued development of our U.S. Energy assets. We also expect an increase in attributable sales from Vale's Northern and Southeastern systems, and have assumed commencement of production at Copper World and Taca Taca in 2029. While we expect higher revenues from our Diversified assets in the long-term outlook compared to 2024, we have used significantly higher gold prices and slightly lower oil, gas and iron ore prices in calculating the GEO contribution as compared to the prices used in 2024. This has the effect of reducing the GEOs represented by the larger revenues.
Q4 2024 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets were 95,565, down 20.1% from 119,581 GEOs in Q4 2023. When excluding Cobre Panama, Precious Metal GEOs were up 6.6% due to an increase in deliveries from Candelaria and Guadalupe, contributions from the recently constructed Tocantinzinho and Greenstone mines, and the newly acquired Yanacocha royalty.
South America:
-- Candelaria (gold and silver stream) -- GEOs sold in Q4 2024 were higher
than those sold in Q4 2023. Copper and gold production benefited from
higher grade ore from Phase 11 in the second half of 2024. In 2025,
production will continue to be sourced primarily from Phase 11 with a
planned reduction in average copper grades from those realized in H2
2024. Franco-Nevada forecasts GEO sales to be between 60,000 and 70,000
GEOs (which includes 3,333 gold ounces we held in inventory at year-end),
generally in-line with 2024.
-- Antapaccay (gold and silver stream) -- GEOs sold were lower in Q4 2024
compared to Q4 2023, reflecting lower planned production and an
anticipated higher strip ratio in the current period. Production improved
compared to the prior two quarters when mine scheduling was adjusted due
to a geotechnical event which occurred in Q2 2024. For 2025,
Franco-Nevada forecasts GEO sales to be between 40,000 and 50,000 GEOs
based on mine sequencing, a decrease compared to 2024.
-- Antamina (22.5% silver stream) -- Silver ounces delivered in Q4 2024 were
higher than in Q4 2023, but GEOs sold were lower, as approximately
150,000 silver ounces were unsold and remained in inventory at December
31, 2024. For 2025, we anticipate an increase in silver sales to between
3.1 and 3.3 million silver ounces due to anticipated higher silver
grades.
-- Tocantinzinho (gold stream) -- We expect an increase in GEO sales from
Tocantinzinho, as the mine continues to ramp up in 2025. Forecasted
production is expected to range between 175,000 and 200,000 ounces for
2025.
-- Yanacocha (1.8% royalty) -- Newmont reported higher leach pad production
in Q4 2024 than originally forecasted as a result of the successful use
of injection leaching technology. Newmont anticipates production at
Yanacocha to increase to 460,000 ounces in 2025, compared to 354,000 gold
ounces produced in 2024.
-- Salares Norte (1-2% royalties) -- Ramp-up at Salares Norte recommenced in
Q4 2024, following a temporary shut-down of the plant due to severe
weather conditions. The mine produced 45,000 gold equivalent ounces in
2024. With commercial levels of production set to be achieved in Q2 2025,
Gold Fields expects between 325,000 and 375,000 gold equivalent ounces in
2025.
-- Cascabel (gold stream and 1% royalty) -- SolGold continues to report
progress on the development of the project, with a focus on de-risking
activities and advancing permitting.
Central America & Mexico:
-- Cobre Panama (gold and silver stream) -- We are encouraged that President
Mulino has indicated a willingness to discuss Cobre Panama this year and
that sentiment in Panama now appears more supportive of restarting the
mine. Cobre Panama has been on preservation and safe management since
November 2023. In January 2025, the terms of reference of an
environmental audit of Cobre Panama were submitted to a public
consultation process which concluded in February 2025. With respect to
Franco-Nevada's arbitration with the International Centre for Settlement
of Investment Disputes, a hearing is scheduled to be held in October
2026. While Franco-Nevada continues to pursue these legal remedies, we
strongly prefer and hope for a resolution with the State of Panama
providing the best outcome for the Panamanian people and all parties
involved.
-- Guadalupe-Palmarejo (50% gold stream) -- GEOs sold from
Guadalupe-Palmarejo in Q4 2024 were relatively consistent with those sold
in Q4 2023. For 2025, Franco-Nevada anticipates an increase in GEO sales
to between 45,000 and 50,000 GEOs, reflecting a greater proportion of
Palmarejo's production being mined from stream grounds.
Canada:
-- Detour Lake (2% royalty) -- Agnico Eagle reported that the mill
successfully achieved throughput of 28 million tonnes per annum ("Mtpa")
in Q4 2024 and is targeting 29 Mtpa by 2028. In June 2024, Agnico Eagle
released the results of a technical study reflecting the potential for a
concurrent underground operation at Detour Lake that would increase
annual production to approximately one million ounces for 14 years
starting in 2030. In Q4 2024, Agnico Eagle completed site preparation for
the excavation of the underground exploration ramp.
-- Greenstone (3% royalty) -- Equinox reported that Greenstone achieved
commercial production on November 6, 2024, and produced 111,717 gold
ounces in 2024. In 2025, Equinox expects Greenstone to produce between
300,000 and 350,000 gold ounces. At full production, Greenstone is
expected to produce an average of 390,000 gold ounces per year for the
first five years and 330,000 ounces of gold annually for an initial
15-year mine life.
-- Magino (3% royalty) and Island Gold (0.62% royalty) -- Alamos reported
that the integration of the Magino and Island Gold operations continues
to advance. The Magino mill is expected to ramp up to 11,200 tpd by the
end of Q1 2025 with detailed engineering advancing the expansion to
12,400 tpd. The expansion is expected to be completed by mid-2025 to
coincide with the completion of the Phase 3+ expansion at Island Gold,
which Alamos expects will be completed in H1 2026.
-- Macassa (Kirkland Lake) (1.5-5.5% royalty & 20% NPI) -- Agnico Eagle
reported that Macassa achieved record quarterly throughput and gold
production in Q4 2024, reflecting productivity gains since the completion
of #4 Shaft and the new ventilation infrastructure in 2023. Agnico Eagle
is continuing to focus on asset optimization and is working on further
improving mill throughput.
-- Canadian Malartic (1.5% royalty) -- Agnico Eagle reported that ramp
development, shaft sinking activities and surface construction progressed
on schedule in Q4 2024. Successful exploration in 2024 has continued to
extend the limits of the East Gouldie inferred mineral resource laterally
to the east and west. Recent drilling continues to grow mineralization in
the recently discovered Eclipse zone, between the East Gouldie deposit
and the Odyssey South zone, within close proximity to the planned
underground infrastructure.
-- Musselwhite (2-5% royalties) -- In November 2024, Newmont and Orla Mining
announced a definitive agreement for the acquisition of Musselwhite by
Orla. Orla intends to aggressively explore the concession, including
following up on historical drilling that suggests 2 to 3 kilometres of
mineralized strike potential beyond the current reserves.
-- Valentine Gold (3% royalty) -- Calibre Mining reported that construction
remains on track for completion in Q2 2025. Production is expected to
average 195,000 gold ounces per year over an initial mine life of 12
years, with the process plant expected to reach 2.5 Mtpa by the end of
2025. In February 2025, Calibre and Equinox announced a business
combination whereby Equinox will acquire all the issued and outstanding
common shares of Calibre.
U.S.:
-- Stillwater (5% royalty) --Sibanye-Stillwater completed a further
restructuring of its US PGM operations in Q4 2024 to reduce operating
costs in light of current PGM prices. Sibanye-Stillwater is now guiding
to production of between 255,000 and 270,000 2E PGM ounces for 2025,
compared to 425,842 2E PGM ounces produced in 2024.
-- Bald Mountain (0.875-5% royalties) -- Kinross announced its plans to
proceed with mining at Redbird, which contains approximately 1 million
ounces of gold reserve, following the receipt of the Juniper permit in H2
2024.
-- South Arturo (4-9% royalty) -- GEOs from South Arturo increased in Q4
2024 compared to Q4 2023 reflecting the restart of open pit mining. South
Arturo is part of Nevada Gold Mines' Carlin operations.
-- Copper World (2.085% royalty) -- Hudbay Minerals announced in January
2025 that it has received the Air Quality Permit from the Arizona
Department of Environmental Quality. This is the final major permit
required for the development and operations of Copper World. Copper World
is expected to produce 85,000 tonnes of copper per year over an initial
20-year mine life.
-- Stibnite (1% gold royalty, 100% silver royalty) -- Perpetua announced in
January 2025 that the United States Forest Service has issued the Final
Record of Decision authorizing its mine plan for the Stibnite project.
With this, Perpetua is focused on advancing towards a construction
decision, including finalizing the remaining federal and state permits
and securing project financing.
Rest of World:
-- Subika (Ahafo) (2% royalty) -- GEOs from our Subika (Ahafo) royalty were
higher than in Q4 2023, as gold production at the mine increased due to
higher mill throughput and higher ore grade milled. Production at Subika
is expected to decrease relative to 2024 as mining activities in the
Subika open pit are completed as planned in H2 2025. Newmont plans to
increase its investment in exploration and advanced projects, including
at Subika Underground.
-- MWS (25% stream) -- Following the delivery of 1,587 gold ounces in Q4
2024, our MWS stream reached its cumulative cap of 312,500 gold ounces.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $64.3 million in revenue, relatively consistent with Q4 2023. When converted to GEOs, our Diversified assets contributed 24,498 GEOs, down 25.2% from 32,770 GEOs in Q4 2023, of which 24.5% was due to changes in gold prices used in the conversion of non-gold revenue into GEOs.
Other Mining:
-- Vale Royalty (iron ore royalty) -- Revenue from our Vale royalty
decreased slightly compared to Q4 2023. Production from the Northern
System benefited from strong production at S11D and lower shipping cost
deductions, offset by lower estimated iron ore prices. Attributable sales
from our Vale royalty are expected to increase in 2025, reflecting
contributions from the Southeastern System once the cumulative sales
threshold of 1.7 billion tonnes of iron ore is reached in the latter part
of 2025.
-- LIORC -- Revenue from our attributable interest on the Carol Lake mine
increased in Q4 2024 compared to Q4 2023, as LIORC declared a cash
dividend of C$0.75 per common share in the current period, compared to
C$0.45 in the prior year period. Iron Ore Company of Canada reported that
production at Carol Lake is expected to improve in 2025 compared to 2024,
where production was affected by forest fires in mid-July 2024 and
operational challenges in the mine and concentrator throughout the year.
-- Caserones (0.517% effective NSR) -- Revenue from our interest in
Caserones decreased in Q4 2024 compared to Q4 2023. Production during the
year was impacted by labour action in August 2024 and mine sequencing
changes which reduced grades and recoveries. For 2025, Lundin Mining
expects production to be slightly lower than in 2024. In January 2024,
EMX exercised an option to acquire a portion of our NSR, such that our
effective NSR percentage interest was lower in 2024 than in 2023.
Energy:
-- U.S. (various royalty rates) -- Revenue from our U.S. Energy interests
increased compared to Q4 2023. We benefited from an increase in
production due to new wells at our Permian interests and new
contributions from additional interests in the Haynesville shale play,
which mostly offset the impact of lower realized prices and reduced
drilling activity.
-- Canada (various royalty rates) -- Revenue from our Canadian Energy
interests was lower than in Q4 2023 due to lower realized prices and
higher costs at Weyburn.
Shareholder Information and Details for 2024 Year-End Conference Call
The complete audited Consolidated Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov.
We will host a conference call to review our 2024 year-end results. Interested investors are invited to participate as follows:
Conference Call and Webcast: March 10(th) 10:00 am ET
Dial--in Numbers: Toll--Free:
1-888-510-2154International:
437-900-0527
Conference Call URL (This allows bit.ly/41xpMjP
participants to join
the conference call by phone without
operator assistance.
Participants will receive an automated
call back after
entering their name and phone number):
Webcast: www.franco-nevada.com
Replay (available until March 17(th) Toll--Free:
): 1-888-660-6345International:
289-819-1450Pass code: 70370#
Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company, with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, the timing for the completion of the Porcupine Complex royalty acquisition and the completion of other related transactions, audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panama mine and related arbitration proceedings. In addition, statements relating to mineral resources and mineral reserves, GEOs or mine lives are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such mineral resources and mineral reserves, GEOs or mine lives will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; proposed tariff and other trade measures that may be imposed by the United States and proposed retaliatory measures that may be adopted by its trading partners; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained herein are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to (i) the outcome of the ongoing audit by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panama mine or the outcome of any related arbitration proceedings. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date hereof only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
ENDNOTES:
1. Gold Equivalent Ounces ("GEOs"): GEOs include Franco-Nevada's
attributable share of production from our Mining and Energy assets after
applicable recovery and payability factors. GEOs are estimated on a gross
basis for NSRs and, in the case of stream ounces, before the payment of
the per ounce contractual price paid by the Company. For NPI royalties,
GEOs are calculated taking into account the NPI economics. Silver,
platinum, palladium, iron ore, oil, gas and other commodities are
converted to GEOs by dividing associated revenue, which includes
settlement adjustments, by the relevant gold price. The price used in the
computation of GEOs varies depending on the royalty or stream agreement
of each particular asset, which may make reference to the market price
realized by the operator, or the average price for the month, quarter, or
year in which the commodity was produced or sold. For Q4 2024, the
average commodity prices were as follows: $2,662/oz gold (Q4 2023 -
$1,976), $31.34/oz silver (Q4 2023 - $23.23), $966/oz platinum (Q4 2023 -
$912) and $1,011/oz palladium (Q4 2023 - $1,085), $105/t Fe 62% CFR China
(Q4 2023 - $127), $70.27/bbl WTI oil (Q4 2023 - $78.32) and $2.99/mcf
Henry Hub natural gas (Q4 2023 - $2.91). For 2024 prices, the average
commodity prices were as follows: $2,387/oz gold (2023 - $1,943),
$28.24/oz silver (2023 - $23.39), $955/oz platinum (2023 - $967) and
$983/oz palladium (2023 - $1,338), $110/t Fe 62% CFR China (2023 - $119),
$75.72/bbl WTI oil (2023 - $77.62) and $2.41/mcf Henry Hub natural gas
(2023 - $2.66).
2. NON-GAAP FINANCIAL MEASURES: Adjusted Net Income and Adjusted Net Income
per share, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted
EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial
measures with no standardized meaning under International Financial
Reporting Standards ("IFRS Accounting Standards") and might not be
comparable to similar financial measures disclosed by other issuers. For
a quantitative reconciliation of each non-GAAP financial measure to the
most directly comparable financial measure under IFRS Accounting
Standards, refer to the below tables. Further information relating to
these non-GAAP financial measures is incorporated by reference from the
"Non-GAAP Financial Measures" section of Franco-Nevada's MD&A for the
year ended December 31, 2024 dated March 8, 2025 filed with the Canadian
securities regulatory authorities on SEDAR+ available at
www.sedarplus.com and with the U.S. Securities and Exchange Commission
available on EDGAR at www.sec.gov.
--
-- Adjusted Net Income and Adjusted Net Income per share are non-GAAP
financial measures, which exclude the following from net income
and earnings per share ("EPS"): impairment losses and reversal
related to royalty, stream and working interests and investments;
gains/losses on disposals of royalty, stream and working interests
and investments; impairment losses and expected credit losses
related to investments, loans receivable and other financial
instruments, changes in fair value of investments, loans
receivable and other financial instruments, foreign exchange
gains/losses and other income/expenses; the impact of income taxes
on these items; income taxes related to the reassessment of the
probability of realization of previously recognized or
de-recognized deferred income tax assets; and income taxes
relating to the revaluation of deferred income tax assets and
liabilities as a result of statutory income tax rate changes in
the countries in which the Company operates.
-- Adjusted Net Income Margin is a non-GAAP financial measure which
is defined by the Company as Adjusted Net Income divided by
revenue.
-- Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP
financial measures, which exclude the following from net income
and EPS: income tax expense/recovery; finance expenses and finance
income; depletion and depreciation; impairment charges and
reversals related to royalty, stream and working interests and
investments; gains/losses on disposals of royalty, stream and
working interests and investments; impairment losses and expected
credit losses related to investments, loans receivable and other
financial instruments, changes in fair value of investment, loans
receivable and other financial instruments, and foreign exchange
gains/losses and other income/expenses.
-- Adjusted EBITDA Margin is a non-GAAP financial measure which is
defined by the Company as Adjusted EBITDA divided by revenue.
Reconciliation of Non-GAAP Financial Measures:
For the three For the year ended
months ended
December 31, December 31,
(expressed in 2024 2023 2024 2023
millions,
except per
share amounts)
Net income
(loss) $ 175.4 $(982.5) $ 552.1 $(466.4)
Impairment
losses -- 1,173.3 -- 1,173.3
Gain on
disposal of
royalty
interests -- -- (0.3) (3.7)
Foreign
exchange loss
(gain) and
other expenses
(income) 8.0 (12.3) 20.7 (14.4)
Tax effect of
adjustments (0.4) (5.6) (2.4) (4.0)
Other tax
related
adjustments
Deferred tax -- -- 49.1 --
expense
related to the
remeasurement
of deferred
tax
liability due
to changes in
Barbados tax
rate
Change in
unrecognized
deferred
income tax
assets 0.3 -- (1.1) (1.7)
Adjusted Net
Income $ 183.3 $ 172.9 $ 618.1 $ 683.1
Basic weighted
average shares
outstanding 192.5 192.1 192.4 192.0
Adjusted Net
Income per
share $ 0.95 $ 0.90 $ 3.21 $ 3.56
For the three For the year ended
months ended
December 31, December 31,
(expressed in 2024 2023 2024 2023
millions,
except
Adjusted Net
Income
Margin)
Adjusted Net
Income $183.3 $ 172.9 $ 618.1 $ 683.1
Revenue 321.0 303.3 1,113.6 1,219.0
Adjusted Net
Income Margin 57.1% 57.0% 55.5% 56.0%
For the three For the year ended
months ended
December 31, December 31,
(expressed in 2024 2023 2024 2023
millions,
except per
share amounts)
Net income
(loss) $ 175.4 $(982.5) $ 552.1 $(466.4)
Income tax
expense 46.8 22.7 211.8 102.2
Finance
expenses 0.7 0.8 2.6 2.9
Finance income (13.5) (16.3) (60.6) (52.3)
Depletion and
depreciation 60.0 68.9 225.3 273.1
Impairment
losses -- 1,173.3 -- 1,173.3
Gain on
disposal of
royalty
interests -- -- (0.3) (3.7)
Foreign
exchange loss
(gain) and
other expenses
(income) 8.0 (12.3) 20.7 (14.4)
Adjusted EBITDA $ 277.4 $ 254.6 $ 951.6 $1,014.7
Basic weighted
average shares
outstanding 192.5 192.1 192.4 192.0
Adjusted EBITDA
per share $ 1.44 $ 1.33 $ 4.95 $ 5.28
For the three For the year ended
months ended
December 31, December 31,
(expressed in 2024 2023 2024 2023
millions,
except
Adjusted
EBITDA Margin)
Adjusted EBITDA $277.4 $ 254.6 $ 951.6 $1,014.7
Revenue 321.0 303.3 1,113.6 1,219.0
Adjusted EBITDA
Margin 86.4% 83.9% 85.5% 83.2%
FRANCO-NEVADA CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)
At December 31, At December 31,
2024 2023
ASSETS
Cash and cash equivalents $ 1,451.3 $ 1,421.9
Receivables 151.8 111.0
Gold and silver bullion and
stream inventory 96.8 51.8
Loans receivable 5.9 --
Prepaid expenses and other
current assets 11.0 30.6
Current assets $ 1,716.8 $ 1,615.3
Royalty, stream and working
interests, net $ 4,098.8 $ 4,027.1
Investments 325.5 254.5
Loans receivable 104.1 24.8
Deferred income tax assets 30.8 37.0
Other assets 54.4 35.4
Total assets $ 6,330.4 $ 5,994.1
LIABILITIES
Accounts payable and accrued
liabilities $ 28.7 $ 30.9
Income tax liabilities 38.8 8.3
Current liabilities $ 67.5 $ 39.2
Deferred income tax liabilities $ 238.0 $ 180.1
Income tax liabilities 19.8 --
Other liabilities 8.5 5.7
Total liabilities $ 333.8 $ 225.0
SHAREHOLDERS' EQUITY
Share capital $ 5,769.1 $ 5,728.2
Contributed surplus 23.0 20.6
Retained earnings 486.5 212.3
Accumulated other comprehensive
loss (282.0) (192.0)
Total shareholders' equity $ 5,996.6 $ 5,769.1
Total liabilities and
shareholders' equity $ 6,330.4 $ 5,994.1
The audited consolidated financial statements and accompanying notes can be found in our 2024 Annual Report available on our website
FRANCO-NEVADA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(in millions of U.S. dollars and shares, except per share amounts)
For the three For the year ended
months ended
December 31, December 31,
2024 2023 2024 2023
Revenue
Revenue from
royalty,
streams and
working
interests $ 318.6 $ 303.3 $1,104.7 $1,219.0
Interest revenue 2.4 -- 8.3 --
Other interest -- -- 0.6 --
income
Total revenue $ 321.0 $ 303.3 $1,113.6 $1,219.0
Costs of sales
Costs of sales $ 34.4 $ 45.1 $ 129.0 $ 179.3
Depletion and
depreciation 60.0 68.9 225.3 273.1
Total costs of
sales $ 94.4 $ 114.0 $ 354.3 $ 452.4
Gross profit $ 226.6 $ 189.3 $ 759.3 $ 766.6
Other operating
expenses
(income)
General and
administrative
expenses $ 8.9 $ 6.1 $ 26.6 $ 23.5
Share-based
compensation
expenses 1.0 (1.9) 8.0 4.4
Cobre Panama
arbitration
expenses 2.1 1.0 6.3 1.0
Impairment
losses -- 1,173.3 -- 1,173.3
Gain on disposal
of royalty
interests -- -- (0.3) (3.7)
Gain on sale of
gold and silver
bullion (2.8) (1.6) (7.9) (3.9)
Total other
operating
expenses $ 9.2 $1,176.9 $ 32.7 $1,194.6
Operating income
(loss) $ 217.4 $(987.6) $ 726.6 $(428.0)
Foreign exchange
(loss) gain and
other
(expenses)
income $ (8.0) $ 12.3 $ (20.7) $ 14.4
Income (loss)
before finance
items and
income taxes $ 209.4 $(975.3) $ 705.9 $(413.6)
Finance items
Finance income $ 13.5 $ 16.3 $ 60.6 $ 52.3
Finance expenses (0.7) (0.8) (2.6) (2.9)
Net income
(loss) before
income taxes $ 222.2 $(959.8) $ 763.9 $(364.2)
Income tax
expense 46.8 22.7 211.8 102.2
Net income
(loss) $ 175.4 $(982.5) $ 552.1 $(466.4)
Other
comprehensive
(loss) income,
net of taxes
Items that may
be reclassified
subsequently to
profit
and loss:
Currency
translation
adjustment $(103.9) $ 36.6 $(131.3) $ 34.8
Items that will
not be
reclassified
subsequently to
profit and
loss:
Gain on changes
in the fair
value of equity
investments
at fair value
through other
comprehensive
income
("FVTOCI"),
net of income
tax (1.1) 2.8 40.4 7.3
Other
comprehensive
(loss) income,
net of taxes $(105.0) $ 39.4 $ (90.9) $ 42.1
Comprehensive
income (loss) $ 70.4 $(943.1) $ 461.2 $(424.3)
Earnings (loss)
per share
Basic $ 0.91 $ (5.11) $ 2.87 $ (2.43)
Diluted $ 0.91 $ (5.11) $ 2.87 $ (2.43)
Weighted
average number
of shares
outstanding
Basic 192.5 192.1 192.4 192.0
Diluted 192.8 192.4 192.6 192.3
The audited consolidated financial statements and accompanying notes can be found in our 2024 Annual Report available on our website
FRANCO-NEVADA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
For the three For the year ended
months ended
December 31, December 31,
2024 2023 2024 2023
Cash flows
from
operating
activities
Net income
(loss) $ 175.4 $(982.5) $ 552.1 $(466.4)
Adjustments
to reconcile
net income
(loss) to net
cash provided
by
operating
activities:
Depletion and
depreciation 60.0 68.9 225.3 273.1
Share-based
compensation
expenses 1.2 0.8 5.4 5.5
Impairment
losses -- 1,173.3 -- 1,173.3
Gain on
disposal of
royalty
interests -- -- (0.3) (3.7)
Unrealized
foreign
exchange loss
(gain) 5.0 (1.1) 12.9 (2.8)
Deferred
income tax
expense 2.3 10.0 66.3 26.6
Other non-cash
items (0.4) (1.5) (6.1) (3.7)
Gold and
silver
bullion from
royalties
received
in-kind (20.3) (15.1) (72.7) (56.2)
Proceeds from
sale of gold
and silver
bullion 13.3 16.3 42.6 36.8
Changes in
other assets -- (11.3) (17.4) 2.6
Operating cash
flows before
changes in
non-cash
working
capital $ 236.5 $ 257.8 $ 808.1 $ 985.1
Changes in
non-cash
working
capital:
(Increase)
decrease in
receivables $ (18.1) $ 23.8 $ (40.8) $ 24.7
Decrease
(increase) in
stream
inventory,
prepaid
expenses
and other 4.9 2.5 15.6 (8.0)
Increase
(decrease) in
current
liabilities 19.7 (0.6) 46.6 (10.6)
Net cash
provided by
operating
activities $ 243.0 $ 283.5 $ 829.5 $ 991.2
Cash flows
used in
investing
activities
Acquisition of
royalty,
stream and
working
interests $ (4.3) $ (84.2) $(406.0) $(520.0)
Advances of
loans
receivable -- (18.7) (118.2) (18.7)
Acquisition of
investments (35.6) (0.9) (74.5) (9.8)
Proceeds from -- -- 28.9 --
repayment of
loan
receivable
Proceeds from
sale of
investments 9.3 0.0 23.3 2.0
Proceeds from
disposal of
royalty
interests -- -- 11.2 7.0
Acquisition of
energy well
equipment (0.4) (0.4) (1.8) (1.6)
Acquisition of
property and
equipment (0.1) -- (0.2) --
Net cash used
in investing
activities $ (31.1) $(104.2) $(537.3) $(541.1)
Cash flows
used in
financing
activities
Payment of
dividends $ (62.1) $ (59.8) $(242.4) $(233.0)
Proceeds from
exercise of
stock options 0.1 -- 2.8 2.9
Revolving -- -- (0.8) --
credit
facility
amendment
costs
Net cash used
in financing
activities $ (62.0) $ (59.8) $(240.4) $(230.1)
Effect of
exchange rate
changes on
cash and cash
equivalents $ (15.9) $ 5.3 $ (22.4) $ 5.4
Net change in
cash and cash
equivalents $ 134.0 $ 124.8 $ 29.4 $ 225.4
Cash and cash
equivalents
at beginning
of year $1,317.3 $1,297.1 $1,421.9 $1,196.5
Cash and cash
equivalents
at end of
year $1,451.3 $1,421.9 $1,451.3 $1,421.9
Supplemental
cash flow
information:
Income taxes
paid $ 17.2 $ 21.1 $ 73.8 $ 88.1
Dividend
income
received $ 3.3 $ 4.5 $ 12.6 $ 13.2
Interest and
standby fees
paid $ 0.6 $ 0.5 $ 2.1 $ 2.3
The audited consolidated financial statements and accompanying notes can be found in our 2024 Annual Report available on our website
View original content:https://www.prnewswire.com/news-releases/franco-nevada-reports-q4-and-year-end-2024-results-302396882.html
SOURCE Franco-Nevada Corporation
View original content: http://www.newswire.ca/en/releases/archive/March2025/10/c4081.html
/CONTACT:
For more information, please go to our website at www.franco-nevada.com or con Sandip Rana, Chief Financial Officer, (416) 306-6303, info@franco-nevada.com
Copyright CNW Group 2025
(END) Dow Jones Newswires
March 10, 2025 06:00 ET (10:00 GMT)
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