A summary of the company's first quarter results
were provided in an iA Securities report.
In a May 9, research note, iA Securities analyst George Topping reported
that with a strong Q1/19, Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) "continues
to demonstrate that it can deliver even in a poor gold market."
Topping highlighted that the company achieved a beat during Q1/19 with
respect to gold equivalent ounces (GEOs) added to its portfolio, EBITDA and
cash flow per share (CFPS).
GEOs totaled 122,000 (122 Koz), exceeding iA's forecast of 105 Koz and
representing a 16% quarter-over-quarter (QOQ) increase. Outperformance in
Latin America and Canada drove this result.
EBITDA came in at $141 million, compared to consensus' estimate of $132
million. CFPS was $0.72 whereas consensus had projected $0.65 per share.
Q1/19 revenue for Franco-Nevada was $180 million, up 13% QOQ.
The recovery continues at Candelaria, and Cobre Panama is "coming
online," Topping noted. As Cobre Panama ramps up to steady state
production over the next five years, GEOs for Franco-Nevada should grow by an
average of 6–7% annually, iA Securities estimated.
In other news, Topping indicated, the company's current chair, Pierre
Lassonde, will leave the position as of Franco-Nevada's 2020 annual general
meeting.
IA Securities has a Buy rating and a CA$115 per share target price on
Franco-Nevada, whose stock is currently trading at around CA$94.78 per share.
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Disclosures from iA Securities, Franco-Nevada Corp., Research
Update, May 9, 2019
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Franco-Nevada: The analyst has visited the issuer's operations. No payment or
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