VANCOUVER (miningweekly.com) – Precious metals streaming firm Franco-Nevada Corp has doubled net income for the quarter ended June 30, hitting new gold-equivalent ounce (GEO) output and revenue records.
The Toronto-based firm reported a 75% year-on-year surge in adjusted earnings to $40-million, or $0.22 a share, beating Wall street analyst forecasts of earning $0.19 a share.
Revenue rose 38% year-on-year to $150.9-million, resulting in adjusted earnings before interest, taxes, depreciation and amortisation to rise 45% to $118.9-million.
"Franco-Nevada's diversified portfolio continues to perform very well. With record GEO and revenue results, we are now expecting to be close to the top end of our previously provided guidance ranges for 2016. Even more exciting for the future, we are seeing renewed activity and good news at many of our non-producing advanced and exploration assets. In addition, our investment opportunity pipeline remains very full,” CEO David Harquail stated Monday.
Gold equivalent output rose 36% in the second quarter to 112 787 oz, boosted by new gold and silver stream acquisitions and oil and gas. According to Franco-Nevada, revenue was sourced 94% from precious metals (72% gold, 16% silver and 6% platinum-group metals) and 84% from the Americas (14% US, 19% Canada and 51% Latin America.
During the period, the company provided $37.7-million of funding to First Quantum Minerals’ Cobre Panama project during the quarter. It now expected its portion of total funding to range between $120-million and $140-million this year, down slightly from previous estimates of $130-million to $150-million.
Franco-Nevada ended the quarter with $225.8-million in cash at and no debt.