Franco-Nevada Corporation (FNV.TO, FNV) reported adjusted net
income for the fourth quarter was US$47.0 million or $0.32 per
share compared to $40.8 million or $0.31 a year earlier. It
provided 2012 portfolio highlights, 2013 guidance and a five year
outlook (to 2017). It also declared the monthly dividend of $0.06
per share for each of April, May and June 2013.
The $0.32 per share missed some analyst expectations of $0.34.
The guidance for 2013 has also left investors underwhelmed.
FNV, which fell to $44.36 in earlier trade is now up slightly,
to $46.01, which is still in negative territory.
Franco-Nevada is a gold focused royalty and stream company. The
company has a diversified portfolio of cash-flow producing assets
and interests in some of the largest new gold development and
exploration projects in the world. Its business model benefits from
rising commodity prices and new discoveries while limiting exposure
to operating and capital cost inflation. Franco-Nevada has
substantial cash with no debt and is generating cash flow from its
portfolio that is being used to expand its portfolio and pay
Canada's BNN TV said this morning the company is benefitting
from not operating in any area where there are geo-political
tensions and from the fact that it limits its exposure to operating
and capital cost inflation. However, it said onlookers are waiting
to see what the company does with its near $700 million in cash
available. Will it use it for acquisitions, they asked.