TORONTO (miningweekly.com) – Metals streaming firm Franco-Nevada this week reported a 32% slide in third-quarter revenue, with lower precious metals prices impacting on its revenue.

Net income for the three months ended September 30 totalled $35.3-million, or $0.24 a share, down from $52-million, or $0.36 a share. The company’s net profit, with one-time items removed, was 22% lower year-on-year at $35.3-million, or $0.24 a share, but still managed to beat Wall Street analysts' average expectations of earning $0.20 a share.

Revenue fell 6% year-on-year to $98.8-million, compared with $105.2-million, with the decrease attributable to lower average commodity prices that were partially offset by higher revenue from the company's oil assets.

Franco-Nevada recorded 57 452 gold-equivalent ounces for the period, a decrease of 1.5% over the comparable period in 2012. The lower gold-equivalent ounces reflected a decline in net profit interest royalties, which were more sensitive to lower gold prices.

"Franco-Nevada's strong revenues and earnings, despite lower gold prices, demonstrate the benefits of our business model and having a diversified portfolio," president and CEO David Harquail said.

The company’s oil and gas assets generated $22.3-million in revenues during the quarter, compared with $8.4-million in 2012, which was owing to the acquisition of a net royalty interest in the Weyburn Unit, in Saskatchewan, in November 2012.

Franco-Nevada had also added more than 20 new royalties covering historic great gold camps such as Kirkland Lake and new exploration projects. Among those, the company in October acquired a 2.5% net smelter royalty (NSR) on Kirkland Lake Gold's properties for $50-million, with Kirkland Lake retaining an option to buy back 1% of the NSR for $36-million, less the royalty proceeds attributable to the buy-back portion of the NSR that has been paid to Franco-Nevada before the date of the buy-back.

The company also on Monday acquired a portfolio of about 20 royalties from Barrick Gold for $20.9-million.

Franco-Nevada said it expected to receive a total of 215 000 gold-equivalent ounces to 235 000 gold-equivalent ounces from its mineral assets and exceed $65-million in revenue from its oil and gas assets in 2013.