Canada's Franco-Nevada Q1 revenue rises on gold and silver prices

Overview

• Canada gold royalty firm's Q1 revenue rose 77%, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company reported a Q1 net income increase of 123% compared to last year

Outlook

• Franco-Nevada maintains 2026 GEO sales guidance of 510,000 to 570,000 ounces, excluding Cobre Panamá

• Company expects moderate Cobre Panamá stream deliveries in 2026, with majority anticipated in 2027

• Franco-Nevada says higher oil prices could increase energy revenue if elevated prices persist

Result Drivers

• HIGHER PRECIOUS METAL PRICES - Co said record gold and silver prices contributed to increased revenue and GEOs sold

• NEWLY ACQUIRED AND RECENTLY PRODUCING ASSETS - Co cited incremental contributions from assets acquired or started production in the past year, including Côté Gold, Porcupine and Valentine

• CASABEL BUY-BACK AND TAX REFUND - Co said partial buy-back of Cascabel stream and NSR and a $49.5 mln tax refund boosted net income and operating cash flow

Company press release: ID:nCNWS4WnNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Franco-Nevada Corp is C$410.00, about 26.2% above its May 11 closing price of C$324.98

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 30 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.