Q3 2024 Franco-Nevada Corp Earnings Call Transcript
Key Points
- Franco-Nevada Corp (FNV) reported increased contributions from newly commissioned mines in Brazil and new royalty acquisitions.
- The company expects full-year revenue to be higher than initially guided, with estimates between $1 billion and $1.1 billion.
- Franco-Nevada Corp (FNV) maintains a strong deal pipeline and is confident in adding attractive precious metal assets to its portfolio.
- The company remains debt-free with available capital of $2.3 billion as of September 30, 2024.
- Franco-Nevada Corp (FNV) has benefited from record gold prices, resulting in significant margins and increased revenue year-over-year when excluding certain assets.
- Total GEOs sold in the third quarter of 2024 were lower compared to the prior year, primarily due to lower deliveries from certain mines.
- The company revised its 2024 GEO guidance downward due to lower than expected gold deliveries and slower ramp-ups at newly contributing mines.
- Franco-Nevada Corp (FNV) continues to face challenges with the Cobre Panama mine, which remains in preservation and safe management.
- The Hemlo NPI was weaker than expected, and the company has limited visibility on future contributions from this asset.
- The decrease in energy GEOs was attributed to lower production and revenue due to weaker natural gas prices.
(audio in progress) From deliveries from the newly commissioned, took it as in your mine in Brazil and increased contributions from royalties on the recently completed Greenstone mine and the newly acquired Yano royalty.
And Hilaria reported an increase in copper and gold production for the quarter with operations recovering after encountering underground voids in the open pit during Q2 and malaria's copper output is now ahead of its initial expectations.
Borates have been below expectation in the period and Lundy mining has revised its 2024 gold production guidance for candle area. Lo in addition, using record gold prices, revenue from our diversified assets translates into lower GEO's. We've adjusted our 2024 GEO guidance as a result, a full year revenue however, is expected to be higher than when we provided our original guidance. In March 2024, revenues is expected to be between a billion and $1.1 billion.
Panama remains in preservation and safe management. President Molino took office in July this year
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