#Canada #Toronto #Franco-Nevada #Cobre Panama #Arthur Gold

Introduction

Franco-Nevada Corporation has announced its record-breaking results for the third quarter of 2025, showcasing a remarkable financial performance driven by robust market conditions and strategic acquisitions. The company is emerging as a formidable player in the precious metals space, reporting a significant rise in revenue and net income compared to the same period last year.

Financial Performance Overview

In Q3 2025, Franco-Nevada achieved a remarkable revenue of $487.7 million, marking a 77% increase compared to $275.7 million in Q3 2024. This surge in revenue was primarily attributed to higher gold prices, operations from new acquisitions, and sales from the Cobre Panama copper concentrate stockpiles. Notably, the company sold 138,772 GEOs (Gold Equivalent Ounces), reflecting a 26% increase year-over-year, with 85% of the revenue coming from precious metals, predominantly gold.

Key Financial Metrics

• - Net Income: $287.5 million, a striking 89% increase from $152.7 million in the previous year.
• - Operating Cash Flow: Increased by 63% to $348.0 million.
• - Adjusted EBITDA: Reached $427.3 million or $2.22 per share, an increase of 81%.
• - Net GEOs Sold: 125,115, a 29% rise from the previous year.

These records reflect the efficiency and strength of Franco-Nevada's operations, showcasing its resilience in a competitive market.

Growth Initiatives

Over the past eighteen months, Franco-Nevada has enhanced its portfolio significantly, acquiring six new gold interests that have positioned the company for long-term growth. With strategic investments, the firm is poised to benefit maximally from the current favorable gold price environment. The recent strategic purchase of the Arthur Gold royalty further consolidates its growth strategy, allowing Franco-Nevada to maintain a debt-free balance sheet while positioning itself for sustained profitability.

Cobre Panama Insights

The Cobre Panama project remains an essential part of Franco-Nevada’s portfolio. Despite the mine's closure for preservation and safe management, Franco-Nevada successfully received 11,208 GEOs in deliveries linked to the sale of previously stored copper concentrate. This project is anticipated to rebound, with indications of a potential restart of operations, further adding to the company’s growth trajectory.

Outlook for 2025

Franco-Nevada has updated its revenue guidance for 2025, anticipating to exceed initial projections for Precious Metal GEO sales. The company's revised guidance indicates a total of 420,000 - 440,000 GEOs expected to be sold by year-end, a commendable increase from previous estimates. With the ongoing strength of gold prices projected at $3,800/oz, Franco-Nevada’s earnings are set to continue on a positive upward trend.

Sustainability and Community Engagement

Franco-Nevada is committed to sustainable practices and community development. The corporation has received top ratings for environmental, social, and governance (ESG) criteria, reflecting its dedication to responsible mining and community partnerships. Recent efforts include awarding diversity scholarships to mining engineering students and supporting local initiatives aimed at improving living conditions in underserved communities.

Conclusion

As Franco-Nevada emerges from Q3 2025 with record results, the outlook remains optimistic. The company's proactive approach to capitalizing on favorable conditions, alongside its commitment to sustainability and community engagement, sets it apart in the mining sector. Investors can look forward to a robust performance in the upcoming quarters, supported by a deep portfolio of gold assets and a strategic vision for growth.

Franco-Nevada’s upcoming conference call is scheduled for November 4, where management will review these results in greater detail, offering investors deeper insights into the company's future strategy and operational plans.