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Franco-Nevada Reports Impressive Q4 and Year-End Results for 2024

On March 10, 2025, Franco-Nevada Corporation shared its quarterly and year-end results for 2024, revealing a strong performance driven by elevated gold prices. CEO Paul Brink remarked on the exceptional results, stating, "Our portfolio delivered a strong fourth quarter resulting in GEO sales for the year that were near the top end of our revised GEO guidance range."

Financial Performance

Q4 2024 Highlights

• - Revenue: $321.0 million, reflecting a 6% increase from Q4 2023, and a remarkable 30% rise when excluding Cobre Panama.
• - GEOs Sold: 120,063, though this figure saw a 21% decrease compared to the same quarter last year. Notably, removing Cobre Panama's effects results in a decline of only 3%.
• - Operating Cash Flow: Recorded at $243.0 million, down 14% from last year, or 4% without Cobre Panama's impact.
• - Adjusted EBITDA: Reached $277.4 million ($1.44 per share), seeing a 9% rise year-on-year, or up 31% without Cobre Panama.
• - Net Income: An impressive turnaround from a loss of $982.5 million in Q4 2023 to a profit of $175.4 million ($0.91/share) in Q4 2024.
• - Adjusted Net Income: Increased by 6% to $183.3 million ($0.95/share), showcasing a 30% improvement without Cobre Panama.

Full Year 2024 Overview

For the entire year, financial highlights included:

• - Revenue: $1,113.6 million, a reduction of 9% compared to 2023, but marking a 15% increase excluding Cobre Panama.
• - GEOs Sold: 463,334, a drop of 26% year-over-year, or a decrease of 7% when excluding the influence of Cobre Panama.
• - Operating Cash Flow: Reduced to $829.5 million, a 16% decline compared to 2023, or just 2% lower without Cobre Panama.
• - Adjusted EBITDA: $951.6 million ($4.95/share), a slight decrease of 6% versus 2023 but a solid 16% rise without Cobre Panama.
• - Net Income: The company reported a profit of $552.1 million ($2.87/share), in stark contrast to a loss of $466.4 million in 2023.
• - Adjusted Net Income: Hit $618.1 million ($3.21/share), down 10% from last year, yet 15% better excluding Cobre Panama.

Strong Financial Position

Franco-Nevada's high-margin business model yielded an impressive Adjusted EBITDA margin of 86% and Adjusted Net Income margin of 56% for 2024. With $2.4 billion in available capital by the year-end, Franco-Nevada remains in a robust financial state. The quarterly dividend was increased to $0.38/share, marking an annual growth of 5.6% and the 18th consecutive year of dividend growth.

Strategic Acquisitions and Portfolio Expansion

During the past year, Franco-Nevada completed over $1.3 billion in acquisitions and commitments, enhancing its asset portfolio substantially:

• - A financing package supporting Discovery Silver's acquisition of Newmont’s Porcupine Complex, aiming for an addition of 85-95K GEOs annually.
• - Acquisition of a precious metals stream related to Sibanye Stillwater's Western Limb operations in South Africa worth $500 million.
• - Transition of the 5% net profit interest at the Pandora property into a 1% net smelter return royalty, expanding their revenue potential.

Environmental, Social, and Governance (ESG) Achievements

Franco-Nevada continues to excel in ESG rankings, recognized as the number one gold company by Sustainalytics and receiving AA ratings from MSCI and Prime by ISS ESG. The firm enhances community initiatives and is committed to responsible gold mining practices, evident through partnerships in reforestation and health projects in various regions.

2025 Guidance and Future Outlook

Looking ahead, Franco-Nevada forecasts 2025 GEO sales of between 465,000 and 525,000, reflecting a projected 25% revenue increase from 2024 based on a projected gold price of $2,800/oz. The company anticipates upward trends in GEO sales, primarily from precious metals, fuelled by newly constructed mines and expanding contributions from existing projects.

The ongoing developments and acquisitions position Franco-Nevada to leverage future opportunities, potentially leading to greater production levels and reinforced financial stability.

In summary, with a solid financial standing and strategic vision, Franco-Nevada is poised for sustained growth while maintaining its commitment to maximizing shareholder value and advancing responsibly.