Franco-Nevada (TSX: FNV) reported its Q1 2025 results, with total revenue surging 43% YoY to $368.4 million, buoyed by elevated gold prices and new production streams.
The financials reflect higher cost of sales, which rose 16% year-over-year to $106.9 million, including $68.4 million in depletion and depreciation. Other operating expenses nearly doubled to $8.0 million, largely driven by rising share-based compensation and G&A costs. Nonetheless, operating income still soared 60% to $253.5 million.
Net income climbed 45% to $209.8 million (or $1.09 per share), while adjusted net income jumped 51% to $205.6 million (or $1.07 per share). The quarter also saw record adjusted EBITDA of $321.9 million, up 49% from Q1 2024.
Operating cash flow rose 62% to $288.9 million but the company burned $551.0 million on investing activities—primarily due to $505.2 million spent on royalty and stream acquisitions—resulting in a $323.2 million decline in cash and equivalents to $1.13 billion by quarter-end, down 22% from $1.45 billion in December.
Q1 production comprised 126,585 GEOs, up 3% YoY, driven by 10% growth in gold volume and a 48% surge in gold revenue to $245.9 million. Precious metals contributed 79% of total revenue, with gold alone accounting for 67%. Silver and PGM revenue increased to $37.0 million and $7.8 million respectively, while diversified asset contributions rose 21% to $74.8 million despite lower iron ore GEOs.
Franco-Nevada closed a $448.6 million financing package for Discovery Silver’s Ontario-based Porcupine Complex and completed a $500 million stream acquisition with Sibanye-Stillwater’s South African operations during the quarter. These transactions are expected to bolster future GEO contributions, including 6,000 GEOs from Porcupine in 2025 alone.
To return value, the board approved a quarterly dividend of $0.38 per share, reflecting a 5.6% annual increase. Dividend payments in Q1 totaled $70.2 million.
The firm still reported no financial contribution from Cobre Panama in Q1 2025 following the mine’s suspension, which had previously triggered a $1.169 billion impairment charge in 2023. CEO Paul Brink addressed the issue directly, citing optimism from recent developments: “President Mulino of Panama continues to indicate a willingness to discuss Cobre Panama this year.”
Franco-Nevada last traded at $230.24 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
