In This Article:
-
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.
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