Shares of Franco-Nevada Corporation FNV have dipped 11% since it registered year-over-year declines in its top and bottom lines in third-quarter results on Nov. 6. The downside was led by lower contributions from Candelaria, Antapaccay and Energy assets, partially offset by record gold prices. The results were also impacted by the Cobre Panama mine remaining on preservation and safe management during the current period. 

FNV reported adjusted earnings of 80 cents per share in third-quarter 2024, missing the Zacks Consensus Estimate of 83 cents. The bottom line decreased 12% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company generated revenues of $276 million in the reported quarter, down 10.9% year over year.

Franco-Nevada Corporation Price, Consensus and EPS Surprise

 

Franco-Nevada Corporation price-consensus-eps-surprise-chart | Franco-Nevada Corporation Quote

In the September-end quarter, 76.8% of revenues were sourced from Precious Metal assets (64.5% gold, 10.3% silver and 2% platinum group metals).

The company sold 84,377 Gold Equivalent Ounces  (GEOs) from precious metal assets in the reported quarter, down from the prior-year quarter’s 90,370 GEOs. The downside was led by lower contributions from Candelaria and Antapaccay. This was partially offset by higher contributions from Subika, the recently constructed Tocantinzinho and Greenstone
Mines, and the recently acquired Yanacocha royalty.

In the reported quarter, adjusted EBITDA was down 7.4% year over year to $236 million. The adjusted EBITDA margin was 85.7% in the quarter under review.

FNV’s Q3 Financial Position

The company had $1.32 billion cash in hand at the end of the third quarter of 2024, down from the $1.42 billion as of the end of 2023. It recorded an operating cash flow of $587 million in the first nine months of 2024, down from $708 million in the prior-year period.

Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay out dividends. FNV has an available capital of $2.3 billion.

Franco-Nevada’s Price Performance

The company’s shares have gained 1.1% in the past year compared with the industry’s growth of 49.6%.

 

Image Source: Zacks Investment Research

 

FNV’s Zacks Rank

Franco-Nevada currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Franco-Nevada’s Peer Performances in Q3

Agnico Eagle Mines Limited AEM reported third-quarter 2024 adjusted earnings of $1.14 per share, up from 44 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 98 cents.

AEM generated revenues of $2.16 billion, up 31.2% year over year. The top line surpassed the Zacks Consensus Estimate of $1.83 billion.

Barrick Gold Corporation GOLD posted third-quarter 2024 adjusted earnings per share of 31 cents. The figure missed the Zacks Consensus Estimate of 33 cents.

Barrick Gold recorded total revenues of $3,368 million, up 17.7% year over year. Total gold production was 943,000 ounces in the quarter, down 9.2% year over year.

Kinross Gold Corporation’s KGC third-quarter 2024 adjusted earnings per share were 24 cents compared with 12 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 18 cents.

KGC’s revenues rose 29.9% year over year to $1,432 million, surpassing the Zacks Consensus Estimate of $1,186.7 million. The company benefited from higher average realized gold prices.