• Total GEOs Sold: 463,334 for the year, near the top end of guidance range.
• Precious Metal GEOs Sold: 355,280 for the year, at the top end of guidance range.
• Revenue: $321 million for Q4 2024, a 5.8% increase from Q4 2023.
• Adjusted EBITDA: $277.4 million for Q4 2024, a 9% increase from Q4 2023.
• Adjusted Net Income: $183.3 million or $0.95 per share for Q4 2024, up 6% from prior year.
• Cash Cost per GEO: $278 for full year 2024, compared to $286 in 2023.
• Margin per GEO: $2,375 for Q4 2024.
• 2025 GEOs Sold Guidance: 465,000 to 525,000, a 7% increase over 2024.
• 2025 Revenue Growth Expectation: 25% increase over 2024, based on budgeted gold price of $2,800 per ounce.
• Available Capital: $2.4 billion as of December 31, 2024, including a $1 billion credit facility.

• Warning! GuruFocus has detected 2 Warning Signs with NPWR.

Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Franco-Nevada Corp (NYSE:FNV) ended 2024 with a strong fourth quarter, driven by high production and rising precious metal prices.
• The company completed over $1.3 billion in acquisitions and commitments in 2024, including significant investments in gold streams and royalties.
• Franco-Nevada Corp (NYSE:FNV) increased its dividends for the 18th consecutive time, reflecting strong operating cash flows.
• The company maintains a robust financial position with no debt and substantial cash reserves, even after significant acquisitions.
• Franco-Nevada Corp (NYSE:FNV) projects a 25% increase in revenue for 2025, driven by new contributions from recent acquisitions and organic growth.

Negative Points

• The company faced a decrease in total GEOs sold in Q4 2024 compared to the previous year, partly due to the absence of contributions from Cobre Panama.
• Volatility in commodity prices, particularly palladium, iron ore, and oil, affected year-over-year performance.
• Franco-Nevada Corp (NYSE:FNV) anticipates incurring annual costs of approximately $10 million related to legal proceedings concerning Cobre Panama.
• The company experienced a decrease in depletion costs due to fewer GEOs received from certain high-depletion assets.
• Franco-Nevada Corp (NYSE:FNV) faces ongoing challenges with international arbitration and legal proceedings related to its investments in Panama.

Q & A Highlights

Q: Can you confirm if Franco-Nevada's arbitration related to Cobre Panama can be put on hold to facilitate negotiations? A: Yes, the arbitration process can be put on hold for a fixed timeframe, although no such request has been made by any party yet. - Paul Brink, CEO

Q: What are the potential implications for Franco-Nevada if Panama seeks to change the ownership structure of Cobre Panama? A: Any change in ownership or increase in taxes or royalties in Panama does not affect the calculation of our stream. We are financiers, not owners, so our agreements remain unchanged. - Paul Brink, CEO

Q: When should we expect the first delivery from the Sibanye-Stillwater's South African PGM stream? A: The delivery from September to December 2024 will be received in Q1 2025. The next delivery related to 2025 production will come in Q2 due to a 45-day delay. - Sandip Rana, CFO

Q: How does Franco-Nevada calculate GEOs, and how do fluctuations in gold prices affect this? A: We adjust GEO calculations each quarter based on the average gold price for that quarter. Fluctuations in gold prices can impact the number of GEOs generated from diversified assets, even if revenue remains constant. - Sandip Rana, CFO

Q: What is the expected contribution from Tocantinzinho and Valentine Gold for 2025? A: Valentine Gold will ramp up in the second half of 2025, contributing 1,500 to 2,000 GEOs, while Tocantinzinho is expected to contribute just over 20,000 GEOs. - Sandip Rana, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.