UPDATE: Franco-Nevada Still in the Red, Despite Improved Q4 Adjusted Net Income


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 monthly dividends.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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