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Shares of Franco-Nevada Corporation FNV hit a new 52-week high of $148.02 after registering year-over-year increases in its top and bottom lines in its fourth-quarter 2024 results on Monday. The company closed the session lower at $143.61. FNV reported adjusted earnings of 95 cents per share in third-quarter 2024, beating the Zacks Consensus Estimate of 89 cents. The bottom line increased 6% year over year.
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Franco-Nevada’s EBITDA Margin Rises Y/Y
FNV generated revenues of $321 million in the reported quarter, marking a year-over-year increase of 6%. The upside was driven by record gold prices and strong production from Candelaria. In the December quarter, 79.2% of revenues were sourced from Precious Metal assets (65.9% gold, 11.3% silver and 2% platinum group metals).
Franco-Nevada sold 95,565 Gold Equivalent Ounces (GEOs) from Precious Metal assets in the reported quarter, down 20.1% from the prior-year quarter.
In the reported quarter, adjusted EBITDA rose 8.6% year over year to $277 million. The adjusted EBITDA margin was 86.4% in the quarter under review compared with 83.9% in the prior-year quarter.
Franco-Nevada Corporation Price, Consensus and EPS Surprise
Franco-Nevada Corporation price-consensus-eps-surprise-chart | Franco-Nevada Corporation Quote
FNV’s Q4 Financial Position
At the end of 2024, Franco-Nevada had $1.45 billion cash in hand, up from $1.42 billion as of the end of 2023. It recorded an operating cash flow of $829.5 million in 2024, down from $991 million in 2023.
The company is debt-free and uses its free cash flow to expand the portfolio and payout dividends. FNV now has available capital of $2.4 billion.
Franco-Nevada’s 2024 Results
FNV reported adjusted earnings per share of $3.21 in 2024 compared with $3.56 in the prior year. The company’s 2024 earnings beat the Zacks Consensus Estimate of $3.09.
Revenues moved down 9% year over year to $1.11 billion. Revenues were in line with the Zacks Consensus Estimate.
FNV’s 2025 Guidance
Franco-Nevada expects total GEOs between 465,000 and 525,000 in 2025, indicating a 7% increase at mid-point from 2024’s reported figure. GEOs from precious metal assets are expected between 385,000 and 425,000. It reported total GEOs of 463,334 in 2024.
FNV expects 2025 revenues to be 25% higher than the 2024 actual.
Franco-Nevada Stock’s Price Performance
The company’s shares have gained 27.7% in the past year compared with the industry’s growth of 38.8%.