Precious metals royalty and streaming firm Franco-Nevada on Monday reported lower adjusted third-quarter net income of $54.6-million, or $0.29 a share, on relatively flat revenue of $170.6-million.
The Toronto-headquartered company’s adjusted net income for the September quarter compares with $55.3-million, or $0.29 a share, and its revenue compares with $171.5-million in the same quarter of 2017.
Franco-Nevada sold a total of 120 021 gold-equivalent ounces (GEOs) in the third quarter, compared with 123 787 GEOs in the same quarter of 2017. Precious metals GEOs fell to 116 478, from 118 456 a year earlier.
Revenue, which is earned from 51 mining assets and 57 oil and gas assets, remained relatively unchanged, despite a 9.2% decrease in revenue from its biggest revenue stream – its mining assets. Franco-Nevada has substantially grown its oil and gas portfolio over the past two years and doubled the revenue from oil and gas to $26.2-million in the quarter.
Precious metals’ contribution to total revenue has been reduced to 82.1%, from 88.9% a year earlier; however, this could increase next year as the Cobre Panama mine begins its ramp-up and the Candelaria mine returns to normal operations.
The company further increased its full-year guidance for oil and gas revenue to between $75-million and $85-million, which compares with its August guidance of $65-million to $75-million and its original March guidance of $50-million to $60-million.