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Interestingly enough, fund manager expectations do not align with recession indicators like the one the New York Federal Reserve uses. This indicator puts the probability of a recession above 50% still, a level that - historically speaking - has always been followed by an actual recession. This indicator also implies an elevated recession probability. The US government is paying $2 million of interest a minutes as rates stay high The government's expenses on interest payments rose about 26 percent year-on-y ...

Franco-Nevada Corporation’s (FNV) shares have improved around 3% since it reported first-quarter 2024 earnings on May 1. This uptick was driven by the company's outstanding margin performance, supported by rising gold prices, despite experiencing year-over-year declines in revenues and earnings.Adjusted earnings of 76 cents per share beat the Zacks Consensus Estimate of 68 cents. The 4% year-over-year decline in its bottom line was mainly attributed to lower Gold Equivalent Ounces (GEOs) sold in the quarter ...

27.6 27.5 Finance expenses 0.6 0.7 GEOs are calculated taking into account the NPI economics. Silver, platinum, palladium, iron ore, oil, gas and other A V E R A G E C O M M O D I T Y P R I C E C H A N G E S Franco & Nevada Based on LBMA PM Fix for gold, platinum and palladium. Based on LBMA Fix for silver Based on Bank of Canada daily rates R E V E N U E & A D J U S T E D E B I T D A P E R F O R M A N C E 6 $400 Total Revenue Adjusted EBITDA Cobre Panama Cobre Panama Q 1 2 0 2 4 R E V E N U E D I V E R S I ...

Franco-Nevada Corporation (NYSE:FNV) Q1 2024 Earnings Conference Call May 2, 2024 10:00 AM ET Company Participants Candida Hayden - Senior Analyst-Investor Relations Paul Brink - President and Chief Executive Officer Sandip Rana - Chief Financial Officer Eaun Gray - Senior Vice President-Business Development Jason O'Connell - Senior Vice President Lloyd Hong - Chief Legal Officer & Corporate Secretary Conference Call Participants Brian MacArthur - Raymond James Heiko Ihle - H.C. Wainwright Cosmos Chiu - CIB ...

Financial Performance - Total revenue for Q1 2024 was $256.8 million, a decrease of 7.0% compared to $276.3 million in Q1 2023[4] - Net income for Q1 2024 was $144.5 million, down 7.7% from $156.5 million in Q1 2023[4] - Gross profit for Q1 2024 was $165.0 million, representing a decrease of 6.8% from $177.1 million in Q1 2023[4] - Basic earnings per share for Q1 2024 were $0.75, a decrease from $0.82 in Q1 2023[4] - Revenue for Q1 2024 was $256.8 million, a decrease of 7.1% from $276.3 million in Q1 2023[81] - Revenue from mining segment was $213.0 million, down 6.3% from $227.3 million in the same period last year[81] - Segment gross profit for Q1 2024 was $165.2 million, a decline of 6.0% compared to $177.3 million in Q1 2023[81] - Net income before income taxes for Q1 2024 was $172.0 million, down 6.6% from $184.1 million in Q1 2023[81] - Gold revenue decreased to $160.9 million in Q1 2024 from $172.2 million in Q1 2023, a decline of 6.9%[60] Cash and Assets - Cash and cash equivalents at the end of Q1 2024 were $1,352.0 million, down from $1,421.9 million at the end of 2023[2] - Total assets increased to $6,059.3 million as of March 31, 2024, compared to $5,994.1 million at the end of 2023[2] - Shareholders' equity rose to $5,819.5 million at the end of Q1 2024, up from $5,769.1 million at the end of 2023[2] - Equity investments increased to $249.3 million as of March 31, 2024, compared to $246.4 million as of December 31, 2023[36] - Loans receivable increased to $65.4 million as of March 31, 2024, up from $24.8 million as of December 31, 2023[39] - The Company disposed of equity investments with a cost of $11.6 million for gross proceeds of $7.4 million during the three months ended March 31, 2024[37] Dividends and Income - The company declared dividends of $69.4 million in Q1 2024, compared to $65.4 million in Q1 2023[7] - The company declared dividends of $0.36 per common share in Q1 2024, compared to $0.34 in Q1 2023[77] - The total cash dividends paid in Q1 2024 were $58.9 million, an increase from $57.8 million in Q1 2023[77] - The Company recognized a total of $2.1 million in dividend income from its equity investment in LIORC for Q1 2024, compared to $2.3 million in Q1 2023[58] Costs and Expenses - Total costs of sales for Q1 2024 were $33.6 million, down from $38.2 million in Q1 2023, representing a decrease of 12.1%[61] - General and administrative expenses were $5.7 million in Q1 2024, slightly down from $6.2 million in Q1 2023[62] - Current income tax expense for Q1 2024 was $22.1 million, up from $19.5 million in Q1 2023, an increase of 13.3%[68] Investments and Acquisitions - The company acquired royalty, stream, and working interests totaling $146.9 million in Q1 2024, up from $109.3 million in Q1 2023[6] - The Company acquired a 2.0% gross production royalty on minerals produced on Scottie Resources Corp.'s claims for a purchase price of $5.9 million (C$8.1 million) on April 15, 2024[20] - The Company received $6.5 million (A$10 million) from Fortuna Silver Mines for the buy-back of 0.6% of the Company's initial 1.2% NSR on the Séguéla mine on April 1, 2024[22] - The Company amended its precious metal stream agreement for the Condestable mine in Peru, increasing the Variable Phase 2 Deliveries from 25% to 37.5% and advancing an additional up-front deposit of $10.0 million, totaling $175.0 million[23] - The Company funded a term loan of $42.0 million for the Tocantinzinho gold project on January 29, 2024, and subsequently advanced an additional $33.0 million on April 19, 2024[27][28] Tax and Legal Matters - The Canada Revenue Agency has proposed additional taxes of $16.8 million for 2018 and $30.6 million for 2019, with potential penalties under review[121] - For the 2013-2016 taxation years, the company faces additional taxes of $22.1 million and penalties of $9.0 million related to transfer pricing reassessments[115] - The company has filed formal Notices of Objection against the CRA's reassessments and has posted security for 50% of the reassessed amounts[117] - If reassessed for 2020-2023, the company estimates additional taxes of approximately $237.0 million and penalties of approximately $89.6 million[122] - The ongoing CRA audit poses a risk of additional income taxes, penalties, and interest if the CRA successfully challenges the Company's tax filings, which could materially affect the Company[124] Other Financial Metrics - Finance income increased to $16.0 million in Q1 2024, compared to $10.5 million in Q1 2023, marking a growth of 52.4%[67] - The Company recorded a gain of $2.0 million on changes in the fair value of equity investments at FVTOCI for the three months ended March 31, 2024[38] - The Company has remaining commitments of up to $56.0 million in the Royalty Acquisition Venture as of March 31, 2024[32] - The Company has a $1.0 billion unsecured revolving term credit facility, with no amounts drawn as of March 31, 2024[56] - The Company has long-term commodity purchase commitments extending up to 40 years for various precious metals agreements[95] - Franco-Nevada recognized a full impairment of $1,169.2 million for its Cobre Panama streams due to a Supreme Court ruling in Panama[110] - The company estimates damages of at least $5 billion related to its Cobre Panama arbitration proceedings[111]

(in U.S. dollars unless otherwise noted) TORONTO, April 10, 2024 /PRNewswire/ - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX: FNV) (NYSE: FNV) announces the publication of its 2024 ESG Report and 2024 Asset Handbook. "We are proud to report on our leading ESG approach, new programs and commitments and to provide a detailed review of our portfolio of assets," said Paul Brink, President & CEO. "We are delighted to have a number of our operating partners participate in the investor day to ...

A month has gone by since the last earnings report for Franco-Nevada (FNV) . Shares have added about 10% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Franco-Nevada due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Franco-Nevada Q4 Earnings Top Estimates, Sales Fall ...

Dogan Kutukcu Introduction Gold bulls are in a very good place right now, as the shiny metal has made a number of new highs this year. Currently, COMEX gold futures are trading north of $2,160. That's more than 30% above the 2022 lows. TradingView (COMEX Gold Futures) According to Bloomberg, a major driver of demand comes from China, where the central bank and private buyers have been busy accumulating what one might call the world's oldest "currency." Gold’s gains over the past five weeks have also bee ...

Financial Data and Key Metrics Changes - The company recorded total revenue of $303.3 million for Q4 2023, with adjusted EBITDA of $254.6 million, resulting in an EBITDA margin of 83.9% [17][35] - The total GEOs sold for the year were 607,045, within the guidance range, with precious metals GEOs at 488,109 [38] - A noncash impairment loss of approximately $1.2 billion was recognized due to the halt in production at Cobre Panama, leading to a net loss of $982.5 million or $5.11 per share for the quarter [40][45] Business Line Data and Key Metrics Changes - Precious metal GEOs represented 79% of total GEOs for Q4 2023, while energy GEOs significantly decreased to 25,640 GEOs compared to 47,713 a year ago due to lower energy prices [15][16] - The company expects to benefit from new mines such as Tocantinzinho, Greenstone, and Salares Norte, which will drive organic growth through 2028 [10][21] Market Data and Key Metrics Changes - Gold prices increased by over 14% for Q4 2023 and almost 8% for the year, while palladium prices significantly decreased year-over-year [43] - The company anticipates total GEOs sold in 2024 to be between 480,000 to 540,000, excluding Cobre Panama, with precious metals GEOs expected to be 360,000 to 400,000 [47] Company Strategy and Development Direction - The company aims to maintain a sustainable and progressive dividend, increasing it for the 17th consecutive year, with a focus on capital allocation to responsible operations [9][10] - The strategy includes maintaining a strong balance sheet to capitalize on growth opportunities, especially in a capital-scarce environment [37][122] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business outlook despite challenges at Cobre Panama, highlighting a robust cash flow and no debt [35] - The company is hopeful for a resolution regarding Cobre Panama and a potential restart of production, which would positively impact future deliveries [40][73] Other Important Information - The company has approximately $2.4 billion in total available capital as of December 31, 2023, including a credit facility of $1 billion [52] - Annual costs related to legal proceedings for Cobre Panama are expected to be between $10 million to $15 million [51] Q&A Session Summary Question: What is the long-term guidance considering the step-downs in agreements? - Management indicated that negotiations vary by transaction, and they aim to achieve acceptable returns while considering the timing of deals [53][54] Question: Can you clarify the arbitration claims and their potential value? - The company is pursuing independent arbitrations, with a minimum claim of $5 billion based on damages and market valuation [104][127] Question: What factors influenced the decision to take the impairment on Cobre Panama? - The impairment decision was based on management judgment considering the impact on share price and the halt in production due to political issues [107][108] Question: How does the company view the current market environment for new streams and royalties? - The company sees good opportunities across commodities, with a focus on precious metals, and is actively looking for transactions [138][139]