Franco-Nevada Reports Q2 2024 Results
New Mine Start-ups and Acquisitions
(in U.S. dollars unless otherwise noted)
Financial Highlights – Q2 2024 compared Q2 2023
- 110,264 GEOs sold in the quarter, a decrease of 35% (16% decrease excluding Cobre Panama)
-
$260.1 million in revenue, a decrease of 21% (1% increase excluding Cobre Panama) -
$221.9 million in Adjusted EBITDA, or$1.15 /share, a decrease of 20% (2% increase excluding Cobre Panama) -
$194.4 million in operating cash flow, a decrease of 26% -
$69.8 million of additional income tax expense resulting from tax measures enacted in relation to the Global Minimum Tax ("GMT") initiative, of which$23.9 million is current tax expense and$45.9 million is non-cash deferred tax expense -
$79.5 million in net income, or$0.41 /share, a decrease of 57% -
$144.9 million in Adjusted Net Income, or$0.75 /share, a decrease of 21% - Quarterly dividend of
$0.36 /share effective Q1 2024, an increase of 5.88% - Strong financial position with no debt and
$2.4 billion in available capital as atJune 30, 2024
Sector-Leading ESG
- Rated #1 precious metals company and #1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG
- Committed to the
World Gold Council's Responsible Gold Mining Principles - Partnering with our operators on community and ESG initiatives
- 40% diverse representation at the Board and top leadership levels as a group
Diverse, Long-Life Portfolio
- Most diverse royalty and streaming portfolio by asset, operator and country
- Attractive mix of long-life streams and high optionality royalties
- Long-life mineral resources and mineral reserves
Growth and Optionality
- Mine expansions and new mines driving 5-year growth profile
- Long-term optionality in gold, copper and nickel and exposure to some of the world's great mineral endowments
- Strong pipeline of precious metal and diversified opportunities
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Quarterly revenue and GEOs sold by commodity |
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Q2 2024 |
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Q2 2023 |
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GEOs Sold |
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Revenue |
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GEOs Sold |
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Revenue |
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# |
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(in millions) |
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# |
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(in millions) |
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Gold |
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66,999 |
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$ |
156.9 |
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108,817 |
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$ |
213.9 |
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Silver |
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12,001 |
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28.1 |
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18,139 |
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35.4 |
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PGM |
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3,350 |
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8.0 |
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5,077 |
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9.9 |
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82,350 |
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$ |
193.0 |
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132,033 |
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$ |
259.2 |
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DIVERSIFIED |
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Iron ore |
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5,155 |
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$ |
12.0 |
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5,108 |
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$ |
10.1 |
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Other mining assets |
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659 |
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1.7 |
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2,691 |
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5.1 |
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Oil |
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16,463 |
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35.9 |
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19,751 |
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36.9 |
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Gas |
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4,009 |
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10.8 |
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6,583 |
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14.2 |
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NGL |
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1,628 |
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4.2 |
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2,349 |
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4.4 |
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27,914 |
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$ |
64.6 |
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36,482 |
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$ |
70.7 |
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Revenue from royalty, stream and working interests |
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110,264 |
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$ |
257.6 |
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168,515 |
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$ |
329.9 |
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Interest revenue and other interest income |
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— |
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$ |
2.5 |
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— |
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$ |
— |
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Total revenue |
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110,264 |
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$ |
260.1 |
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168,515 |
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$ |
329.9 |
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Year-to-date revenue and GEOs sold by commodity |
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H1 2024 |
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H1 2023 |
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GEOs Sold |
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Revenue |
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GEOs Sold |
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Revenue |
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# |
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(in millions) |
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# |
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(in millions) |
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Gold |
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144,561 |
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$ |
317.8 |
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199,539 |
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$ |
386.1 |
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Silver |
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23,689 |
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53.0 |
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32,952 |
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64.0 |
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PGM |
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7,118 |
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16.2 |
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10,780 |
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21.3 |
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175,368 |
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$ |
387.0 |
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243,271 |
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$ |
471.4 |
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DIVERSIFIED |
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Iron ore |
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12,456 |
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$ |
26.8 |
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12,182 |
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$ |
23.2 |
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Other mining assets |
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2,155 |
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4.7 |
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3,758 |
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7.1 |
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Oil |
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30,347 |
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62.1 |
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33,921 |
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64.0 |
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Gas |
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8,874 |
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23.1 |
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15,701 |
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31.1 |
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NGL |
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3,961 |
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9.5 |
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5,013 |
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9.4 |
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57,793 |
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$ |
126.2 |
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70,575 |
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$ |
134.8 |
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Revenue from royalty, stream and working interests |
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233,161 |
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$ |
513.2 |
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313,846 |
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$ |
606.2 |
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Interest revenue and other interest income |
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— |
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$ |
3.7 |
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— |
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$ |
— |
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Total revenue |
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233,161 |
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$ |
516.9 |
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313,846 |
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$ |
606.2 |
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In Q2 2024, we recognized
Guidance
We expect to be at the lower end of our 2024 Total GEO sales guidance range of 480,000 to 540,000 GEOs. Our Diversified assets are expected to contribute fewer GEOs than initially anticipated based on the revised commodity prices we assume for the remainder of the year (
Environmental, Social and Governance ("ESG") Updates
During the quarter,
GMT Updates
On
In
As a result of these changes, the Company recognized an additional
For purposes of computing Adjusted Net Income2 for Q2 2024 and H1 2024, we have adjusted amounts which were not related to the respective periods so that users may understand what net income would have been had it only included income tax expense related to income earned in the current periods. Please refer to the reconciliation provided at the end of this news release or to our Q2 2024 MD&A for further details.
Portfolio Additions
-
Acquisition of Royalty on Yanacocha Operations: Subsequent to quarter-end, on
August 13, 2024 , we acquired from Compañía deMinas Buenaventura ("Buenaventura") and its subsidiary, an existing 1.8% NSR on all minerals covering Newmont's Yanacocha mine and adjacent mineral properties, including Conga, located inPeru . Consideration for the Yanacocha royalty consists of$210 million paid in cash on closing, plus a contingent payment of$15 million payable inFranco-Nevada common shares payable upon the Conga project achieving commercial production.Franco-Nevada will also hold a right of first refusal on the sale by Buenaventura of certain of their royalty interests, including incremental royalties on Conga and other deposits. The acquisition of the Yanacocha Royalty is effectiveJuly 1, 2024 , and initial contributions toFranco-Nevada are expected in Q3 2024. Newmont's guidance anticipates production of 290,000 gold ounces for 2024. -
Acquisition of Gold Stream on
Cascabel Copper-Gold Project : As previously announced, subsequent to quarter-end, our wholly owned subsidiary,Franco-Nevada (Barbados) Corporation ("FNB") acquired a gold stream from SolGold with reference to production from the Cascabel project located inEcuador . FNB has partnered with Osisko Gold Royalties' subsidiary,Osisko Bermuda Limited ("Osisko"), to provide a syndicated financing package on a 70%/30% basis. FNB will provide a total of$525 million and Osisko a total of$225 million for a total combined funding of$750 million , consisting of$100 million in pre-construction funding and$650 million towards construction once the project is fully funded and further derisked. Please refer to our news release datedJuly 15, 2024 for further details. -
Term Loan with EMX Royalty Corporation: On
June 19, 2024 , we entered into a term loan agreement with EMX of$35 million . The EMX Term Loan was funded subsequent to quarter-end, onAugust 9, 2024 . -
Private Placement with G Mining Ventures: On
July 12, 2024 , we completed a private placement of$25 million with G Mining Ventures at a price ofC$2.279 per share. La Mancha Investments S.à r.l. completed a concurrent$25 million private placement with total proceeds to G Mining of$50 million . The placement is related to G Mining Ventures' business combination with Reunion Gold and advancement of the Oko West gold development project inGuyana . -
Term Loan with SolGold: On
May 13, 2024 , we provided a$10 million term loan to SolGold plc. The term loan was repaid subsequent to quarter-end, onJuly 17, 2024 . -
Term Loan with G Mining Ventures: On
April 19, 2024 , we funded a second and final draw of$33 million under our term loan commitment to G Mining Ventures, thereby fulfilling our$75 term loan commitment. The term loan is part of a financing package we provided to G Mining Ventures inJuly 2022 in connection with the Tocantinzinho gold project, inBrazil . -
Financing Package with Scottie Resources: On
April 15, 2024 , we acquired a 2.0% gross production royalty on all minerals produced on Scottie Resources Corp.'s ("Scottie") claims in theStewart Mining Camp inthe Golden Triangle inBritish Columbia, Canada , for a purchase price of$5.9 million (C$8.1 million ). Additionally, we acquired 5,422,994 common shares of Scottie for an aggregate of$0.7 million (C$1.0 million ).
Q2 2024 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets were 82,350, compared to 132,033 GEOs in Q2 2023. Lower contributions from Cobre Panama, Antapaccay and
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Candelaria (gold and silver stream) – GEOs delivered and sold in Q2 2024 were lower than those sold in Q2 2023. During the quarter, mining rates were impacted by the interface of the open pit and historic underground mining stopes, requiring more stockpiled ore to be processed which reduced grades and recoveries. With access to higher grade ore anticipated in the second half of 2024, Lundin Mining anticipates stronger production in H2 2024 and have maintained their production guidance forCandelaria . - Antapaccay (gold and silver stream) – GEOs delivered and sold were lower in Q2 2024 compared to Q2 2023. Mine scheduling was adjusted in part due to a geotechnical event which temporarily limited pit access, resulting in lower production in H1. Glencore anticipates stronger production in H2 2024. Deliveries to
Franco-Nevada , which may vary from production levels due to the timing of shipments, are expected to be within our initial expectations for 2024 of 50,000 to 60,000 GEOs. - Antamina (22.5% silver stream) – GEOs delivered and sold were lower in Q2 2024 compared to Q2 2023 as mining is occurring in areas with lower silver grades as anticipated in the life of mine plan.
- Condestable (gold and silver stream) – We sold 6,149 GEOs in Q2 2024, compared to 3,043 GEOs sold Q2 2023. GEO sold in the current period included ounces delivered late in Q1 2024 and held in inventory at
March 31, 2024 . - Tocantinzinho (gold stream) – On
July 9, 2024 , G Mining Ventures announced it poured first gold and that it remained on track for commercial production in H2 2024.Franco-Nevada received its first deliveries from Tocantinzinho at the end ofJuly 2024 . According to the 2022 feasibility study, the project is expected to produce an average of 196,000 ounces of gold annually for the first five years. - Salares Norte (1-2% royalties) – During the quarter,
Franco-Nevada received its first royalty payment from Salares Norte, where gold-silver doré was first poured onMarch 28, 2024 . Commissioning and ramp-up of the project have been impacted by earlier than planned winter conditions. Gold Fields revised its 2024 gold equivalent production to between 90,000 and 180,000 ounces (previously between 220,000 and 240,000 ounces). - Posse (
Mara Rosa ) (1% royalty) – Hochschild Mining announced that the Mara Rosa mine reached commercial production inmid-May 2024 and that the processing plant has already reached nominal capacity of 7,000 tonnes per day. Optimisation initiatives are in place to reach stable throughput of 8,000 tonnes per day. - Cascabel (gold stream and 1% royalty) – In
June 2024 , SolGold announced the signing of an exploitation contract with the government ofEcuador which establishes key legal and financial terms required for the development of the Cascabel project.
- Cobre Panama (gold and silver stream) – Production at Cobre Panama has been halted since
November 2023 with mining activities currently on preservation and safe management. OnJuly 1, 2024 , the new president ofPanama ,José Raúl Mulino , was inaugurated into office. In his inauguration speech,President Mulino announced that the Government ofPanama will conduct, with international experts, a strict environmental audit of the Cobre Panama mine. - Guadalupe-Palmarejo (50% gold stream) – GEOs sold from Guadalupe-Palmarejo in Q2 2024 were relatively consistent with those sold in Q2 2023.
- Goldstrike (2-4% royalties & 2.4-6% NPI) – GEOs from our Goldstrike royalties increased in Q2 2024 compared to Q2 2023 due to more open pit stockpile tons being processed and a greater proportion of underground production taking place on royalty ground.
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Stillwater (5% royalty) – GEOs from ourStillwater royalty decreased in Q2 2024 compared to Q2 2023 as the decline in PGM prices more than offset higher production at the mine. InJuly 2024 , Sibanye-Stillwater reported that its US PGM operations had been impacted by a cyber-attack but that it expected to promptly resume full operations, with accumulated stockpiles expected to be processed in due course. -
Bald Mountain (0.875-5% royalties) – GEOs from ourBald Mountain royalties were higher in Q2 2024 than in Q2 2023 due to mine sequencing. - Marigold (0.5-5% royalties) – GEOs from our Marigold royalties were lower in Q2 2024 than in Q2 2023 as production is taking place on ground that carries a lower royalty rate. Production is anticipated to progress to higher royalty rate ground in 2027 through the end of the current mine life.
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Detour Lake (2% royalty) – InJune 2024 , Agnico Eagle released the results of a technical study reflecting the potential for a concurrent underground operation atDetour Lake that would increase annual production to approximately one million ounces for 14 years starting in 2030. Agnico Eagle has also approved the development of a two-kilometre exploration ramp to collect a bulk sample and to facilitate infill and expansion drilling of the current underground mineral resource. -
Hemlo (3% royalty & 50% NPI) – GEOs from ourHemlo royalties were lower than in Q2 2023 reflecting higher underground mining costs. Barrick anticipates production atHemlo to improve relative to 2023, where production was impacted by interruptions to the underground operations. - Macassa (
Kirkland Lake ) (1.5-5.5% royalty & 20% NPI) – GEOs from Macassa were higher in Q2 2024 than in Q2 2023 due an increase in production. Throughput was higher in the quarter as a result of increased productivity from a larger workforce, new ventilation structure, and improved equipment availability, and the addition of ore sourced from the Near Surface deposit, partially offset by lower grades. - Magino (3% royalty) and Island Gold (0.62% royalty) –
Alamos completed the acquisition of the Magino mine inJuly 2024 . The transaction is expected to result in substantial synergies through shared infrastructure between the adjacent Magino and Island Gold mines.Alamos has noted potential longer-term upside through a single optimized milling complex at Magino with an expansion to between 15,000 and 20,000 tonnes per day. - Greenstone (3% royalty) – During the quarter,
Franco-Nevada received its first royalty payment from Greenstone. Equinox Gold announced that its 100% owned Greenstone mine achieved its inaugural gold pour on schedule onMay 22, 2024 , with commercial production expected by the end of Q3 2024. Greenstone is expected to produce between 175,000 and 205,000 gold ounces in 2024, and average annual production of approximately 400,000 gold ounces for the first five years. - Canadian
Malartic (1.5% royalty) – Agnico Eagle reported that ramp development continued to exceed target, reaching the third production level of East Gouldie in Q2 2024. Exploration drilling continued to return positive results to the east and west of the existing East Gouldie mineral resources, demonstrating the potential to add inferred mineral resources. -
Valentine Gold (3% royalty) – Calibre Mining announced a 100,000-metre resource expansion and discovery drill program at the Valentine Gold project. Production is expected to commence in Q2 2025 and average 195,000 gold ounces per year over an initial mine life of 12 years.
Rest of World:
- MWS (25% stream) – GEOs delivered and sold from our MWS stream were higher than in Q2 2023 reflecting an increase in tonnes processed and higher recoveries. We continue to anticipate the stream reaching its cap of 312,500 ounces in Q4 2024.
- Subika (Ahafo) (2% royalty) – GEOs from our Subika (Ahafo) royalty were higher than in Q2 2023 as production at Subika increased due to higher open pit grade and stronger underground mining rates.
- Séguéla (0.6% royalty) – Fortuna reported that production during the quarter was impacted by intermittent power outages, largely mitigated by higher grade feed and the mill operating above nameplate capacity.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated
Iron Ore:
-
Vale Royalty (iron ore royalty) – Revenue from the Vale royalty was relatively consistent with Q2 2023. While the Northern System benefited from record production at S11D, the impact was offset by lower production at Serra Norte and higher estimated shipping cost deductions. - LIORC – LIORC declared a cash dividend of
C$1.10 per common share in the current period, compared toC$0.65 in Q2 2023. Production fromIron Ore Company ofCanada was higher when compared to the prior year period which was impacted by wildfires inNorthern Quebec . - Caserones (0.517% effective NSR) – GEOs from our interest in Caserones were lower in Q2 2024 than in Q2 2023 in part due to our lower effective NSR interest in the current period. In
January 2024 , EMX exercised an option to acquire 0.0531% of our NSR, such that we now own a 0.517% effective NSR, compared to 0.5701% in Q2 2023.
Energy:
-
U.S. (various royalty rates) – Revenue from our U.S. Energy interests decreased compared to Q2 2023. While revenue from our oil assets was consistent with the prior year, revenue from our gas assets declined. Contribution from our new Haynesville gas acquisition was offset by lower realized gas prices and volumes at our existing Haynesville assets. Revenue in the prior year period had also included$7.0 million in catch-up royalty payments related to new wells in thePermian Basin . -
Canada (various royalty rates) – Revenue from our Canadian Energy interests was higher than in Q2 2023. Production at our Orion asset increased relative to the prior year period, and our Weyburn NRI benefited from higher realized prices and lower expenses.
Dividend Declaration
The Company has a Dividend Reinvestment Plan (the "DRIP") which allows shareholders of
This press release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the DRIP has been filed with the
Shareholder Information
The complete Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov.
We will host a conference call to review our Q2 2024 results. Interested investors are invited to participate as follows:
Conference Call and Webcast: |
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Dial‑in Numbers: |
Toll‑Free: 1‑888‑390‑0546 International: 416‑764‑8688 |
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Conference Call URL (This allows participants to join |
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Webcast: |
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Replay (available until |
Toll‑Free: 1‑888‑390‑0541 International: 416‑764‑8677 Pass code: 676469 # |
Corporate Summary
Forward- Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding
For additional information with respect to risks, uncertainties and assumptions, please refer to
ENDNOTES:
-
GEOs: Gold equivalent ounces ("GEOs") include
Franco-Nevada's attributable share of production from our Mining and Energy assets after applicable recovery and payability factors. GEOs are estimated on a gross basis for NSRs and, in the case of stream ounces, before the payment of the per ounce contractual price paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Silver, platinum, palladium, iron ore, oil, gas and other commodities are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. The price used in the computation of GEOs varies depending on the royalty or stream agreement of each particular asset, which may make reference to the market price realized by the operator, or the average price for the month, quarter, or year in which the commodity was produced or sold. For Q2 2024, the average commodity prices were as follows:$2,338 /oz gold (Q2 2023 -$1,978 ),$28.86 /oz silver (Q2 2023 -$24.18 ),$981 /oz platinum (Q2 2023 -$1,028 ) and$972 /oz palladium (Q2 2023 -$1,449 ),$110 /t Fe 62% CFR China (Q2 2023 -$112 ),$80.57 /bbl WTI oil (Q2 2023 -$73.78 ) and$2.34 /mcfHenry Hub natural gas (Q2 2023 -$2.32 ). For H1 2024 prices, the average commodity prices were as follows:$2,205 /oz gold (H1 2023 -$1,933 ),$26.11 /oz silver (H1 2023 -$23.37 ),$945 /oz platinum (H1 2023 -$1,011 ) and$975 /oz palladium (H1 2023 -$1,508 ),$118 /t Fe 62% CFR China (H1 2023 -$118 ),$78.77 /bbl WTI oil (H1 2023 -$74.95 ) and$2.22 /mcfHenry Hub natural gas (H1 2023 -$2.54 ). -
NON-GAAP FINANCIAL MEASURES: Adjusted Net Income and Adjusted Net Income per share, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial measures with no standardized meaning under International Financial Reporting Standards ("IFRS Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. For a quantitative reconciliation of each non-GAAP financial measure to the most directly comparable financial measure under IFRS Accounting Standards, refer to the following tables. Further information relating to these Non-GAAP financial measures is incorporated by reference from the "Non-GAAP Financial Measures" section of
Franco-Nevada's MD&A for the three and six months endedJune 30, 2024 datedAugust 13, 2024 filed with the Canadian securities regulatory authorities on SEDAR+ available at www.sedarplus.com and with theU.S. Securities and Exchange Commission available on EDGAR at www.sec.gov.
-
- Adjusted Net Income and Adjusted Net Income per share are non-GAAP financial measures, which exclude the following from net income and earnings per share ("EPS"): impairment losses and reversal related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; impairment losses and expected credit losses related to investments, loans receivable and other financial instruments, changes in fair value of investments, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; unusual non-recurring items; and the impact of income taxes on these items.
- Adjusted Net Income Margin is a non-GAAP financial measure which is defined by the Company as Adjusted Net Income divided by revenue.
- Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial measures, which exclude the following from net income and EPS: income tax expense/recovery; finance expenses and finance income; depletion and depreciation; impairment charges and reversals related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; impairment losses and expected credit losses related to investments, loans receivable and other financial instruments, changes in fair value of investment, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; and unusual non-recurring items.
-
Adjusted EBITDA Margin is a non-GAAP financial measure which is defined by the Company as Adjusted EBITDA divided by revenue.
Reconciliation of Non-GAAP Financial Measures:
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For the three months ended |
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For the six months ended |
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(expressed in millions, except per share amounts) |
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2024 |
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2023 |
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2024 |
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2023 |
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Net income |
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$ |
79.5 |
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$ |
184.5 |
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$ |
224.0 |
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$ |
341.0 |
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Gain on disposal of royalty interests |
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— |
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— |
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(0.3) |
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(3.7) |
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Foreign exchange loss (gain) and other expenses (income) |
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9.8 |
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(1.7) |
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11.4 |
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(3.9) |
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Tax effect of adjustments |
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(2.0) |
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0.1 |
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(2.0) |
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1.7 |
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Other tax related adjustments |
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Deferred tax expense related to the remeasurement of deferred tax liability due to changes in |
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49.1 |
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|
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— |
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49.1 |
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|
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— |
|
Q1 2024 retroactive impact of GMT |
|
|
9.9 |
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— |
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— |
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— |
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Change in unrecognized deductible temporary differences |
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(1.4) |
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— |
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(1.4) |
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— |
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Adjusted Net Income |
|
$ |
144.9 |
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$ |
182.9 |
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|
$ |
280.8 |
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$ |
335.1 |
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Basic weighted average shares outstanding |
|
|
192.3 |
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|
|
191.9 |
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|
|
192.2 |
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|
|
191.9 |
|
Adjusted Net Income per share |
|
$ |
0.75 |
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$ |
0.95 |
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$ |
1.46 |
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$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
(expressed in millions, except Adjusted Net Income Margin) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Adjusted Net Income |
|
$ |
144.9 |
|
|
$ |
182.9 |
|
|
$ |
280.8 |
|
|
$ |
335.1 |
|
Revenue |
|
|
260.1 |
|
|
|
329.9 |
|
|
|
516.9 |
|
|
|
606.2 |
|
Adjusted Net Income Margin |
|
|
55.7 |
% |
|
|
55.4 |
% |
|
|
54.3 |
% |
|
|
55.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
(expressed in millions, except per share amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income |
|
$ |
79.5 |
|
|
$ |
184.5 |
|
|
$ |
224.0 |
|
|
$ |
341.0 |
|
Income tax expense |
|
|
95.3 |
|
|
|
27.0 |
|
|
|
122.8 |
|
|
|
54.6 |
|
Finance expenses |
|
|
0.6 |
|
|
|
0.7 |
|
|
|
1.2 |
|
|
|
1.4 |
|
Finance income |
|
|
(16.2) |
|
|
|
(10.0) |
|
|
|
(32.2) |
|
|
|
(20.5) |
|
Depletion and depreciation |
|
|
52.9 |
|
|
|
75.1 |
|
|
|
111.1 |
|
|
|
136.1 |
|
Gain on disposal of royalty interests |
|
|
— |
|
|
|
— |
|
|
|
(0.3) |
|
|
|
(3.7) |
|
Foreign exchange loss (gain) and other expenses (income) |
|
|
9.8 |
|
|
|
(1.7) |
|
|
|
11.4 |
|
|
|
(3.9) |
|
Adjusted EBITDA |
|
$ |
221.9 |
|
|
$ |
275.6 |
|
|
$ |
438.0 |
|
|
$ |
505.0 |
|
Basic weighted average shares outstanding |
|
|
192.3 |
|
|
|
191.9 |
|
|
|
192.2 |
|
|
|
191.9 |
|
Adjusted EBITDA per share |
|
$ |
1.15 |
|
|
$ |
1.44 |
|
|
$ |
2.28 |
|
|
$ |
2.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
(expressed in millions, except Adjusted EBITDA Margin) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Adjusted EBITDA |
|
$ |
221.9 |
|
|
$ |
275.6 |
|
|
$ |
438.0 |
|
|
$ |
505.0 |
|
Revenue |
|
|
260.1 |
|
|
|
329.9 |
|
|
|
516.9 |
|
|
|
606.2 |
|
Adjusted EBITDA Margin |
|
|
85.3 |
% |
|
|
83.5 |
% |
|
|
84.7 |
% |
|
|
83.3 |
% |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of
|
|
|
|
|
|
|
|
|
|
|
At |
|
|
At |
|
||
|
|
2024 |
|
|
2023 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Cash and Cash equivalents |
|
$ |
1,439.0 |
|
|
$ |
1,421.9 |
|
Receivables |
|
|
120.9 |
|
|
|
111.0 |
|
Loans receivable |
|
|
10.2 |
|
|
|
— |
|
Gold bullion, prepaid expenses and other current assets |
|
|
98.2 |
|
|
|
82.4 |
|
Current assets |
|
$ |
1,668.3 |
|
|
$ |
1,615.3 |
|
|
|
|
|
|
|
|
|
|
Royalty, stream and working interests, net |
|
$ |
4,031.1 |
|
|
$ |
4,027.1 |
|
Investments |
|
|
278.0 |
|
|
|
254.5 |
|
Loans receivable |
|
|
75.7 |
|
|
|
24.8 |
|
Deferred income tax assets |
|
|
35.4 |
|
|
|
37.0 |
|
Other assets |
|
|
52.7 |
|
|
|
35.4 |
|
Total assets |
|
$ |
6,141.2 |
|
|
$ |
5,994.1 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
30.1 |
|
|
$ |
30.9 |
|
Current income tax liabilities |
|
|
27.2 |
|
|
|
8.3 |
|
Current liabilities |
|
$ |
57.3 |
|
|
$ |
39.2 |
|
|
|
|
|
|
|
|
|
|
Deferred income tax liabilities |
|
$ |
234.1 |
|
|
$ |
180.1 |
|
Other liabilities |
|
|
4.6 |
|
|
|
5.7 |
|
Total liabilities |
|
$ |
296.0 |
|
|
$ |
225.0 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Share capital |
|
$ |
5,753.9 |
|
|
$ |
5,728.2 |
|
Contributed surplus |
|
|
20.3 |
|
|
|
20.6 |
|
Retained earnings |
|
|
294.0 |
|
|
|
212.3 |
|
Accumulated other comprehensive loss |
|
|
(223.0) |
|
|
|
(192.0) |
|
Total shareholders' equity |
|
$ |
5,845.2 |
|
|
$ |
5,769.1 |
|
Total liabilities and shareholders' equity |
|
$ |
6,141.2 |
|
|
$ |
5,994.1 |
|
|
|
|
|
|
|
|
|
|
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q2 2024 Quarterly Report available on our website
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(in millions of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the six months ended |
||||||||||
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from royalty, streams and working interests |
|
$ |
257.6 |
|
|
|
329.9 |
|
|
$ |
513.2 |
|
|
$ |
606.2 |
Interest revenue |
|
|
2.2 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
— |
Other interest income |
|
|
0.3 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
Total revenue |
|
|
260.1 |
|
|
|
329.9 |
|
|
$ |
516.9 |
|
|
$ |
606.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales |
|
$ |
29.1 |
|
|
$ |
47.1 |
|
|
$ |
62.7 |
|
|
$ |
85.3 |
Depletion and depreciation |
|
|
52.9 |
|
|
|
75.1 |
|
|
|
111.1 |
|
|
|
136.1 |
Total costs of sales |
|
$ |
82.0 |
|
|
$ |
122.2 |
|
|
$ |
173.8 |
|
|
$ |
221.4 |
Gross profit |
|
$ |
178.1 |
|
|
$ |
207.7 |
|
|
$ |
343.1 |
|
|
$ |
384.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
$ |
8.4 |
|
|
$ |
6.2 |
|
|
$ |
14.1 |
|
|
$ |
12.4 |
Share-based compensation expenses |
|
|
1.8 |
|
|
|
2.4 |
|
|
|
4.6 |
|
|
|
5.6 |
Gain on disposal of royalty interests |
|
|
— |
|
|
|
— |
|
|
|
(0.3) |
|
|
|
(3.7) |
Gain on sale of gold bullion |
|
|
(1.1) |
|
|
|
(1.4) |
|
|
|
(2.5) |
|
|
|
(2.1) |
Total other operating expenses |
|
$ |
9.1 |
|
|
$ |
7.2 |
|
|
$ |
15.9 |
|
|
$ |
12.2 |
Operating income |
|
$ |
169.0 |
|
|
$ |
200.5 |
|
|
$ |
327.2 |
|
|
$ |
372.6 |
Foreign exchange (loss) gain and other (expenses) income |
|
$ |
(9.8) |
|
|
$ |
1.7 |
|
|
$ |
(11.4) |
|
|
$ |
3.9 |
Income before finance items and income taxes |
|
$ |
159.2 |
|
|
$ |
202.2 |
|
|
$ |
315.8 |
|
|
$ |
376.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
$ |
16.2 |
|
|
$ |
10.0 |
|
|
$ |
32.2 |
|
|
$ |
20.5 |
Finance expenses |
|
|
(0.6) |
|
|
|
(0.7) |
|
|
|
(1.2) |
|
|
|
(1.4) |
Net income before income taxes |
|
$ |
174.8 |
|
|
$ |
211.5 |
|
|
$ |
346.8 |
|
|
$ |
395.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
95.3 |
|
|
|
27.0 |
|
|
|
122.8 |
|
|
|
54.6 |
Net income |
|
$ |
79.5 |
|
|
$ |
184.5 |
|
|
$ |
224.0 |
|
|
$ |
341.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit and loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation adjustment |
|
$ |
(12.3) |
|
|
$ |
30.3 |
|
|
$ |
(51.5) |
|
|
$ |
29.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to profit and loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on changes in the fair value of equity investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at fair value through other comprehensive income ("FVTOCI"), |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of income tax |
|
|
15.4 |
|
|
|
(5.8) |
|
|
|
17.2 |
|
|
|
1.0 |
Other comprehensive income (loss), net of taxes |
|
$ |
3.1 |
|
|
$ |
24.5 |
|
|
$ |
(34.3) |
|
|
$ |
30.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
$ |
82.6 |
|
|
$ |
209.0 |
|
|
$ |
189.7 |
|
|
$ |
371.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.41 |
|
|
$ |
0.96 |
|
|
$ |
1.17 |
|
|
$ |
1.78 |
Diluted |
|
$ |
0.41 |
|
|
$ |
0.96 |
|
|
$ |
1.16 |
|
|
$ |
1.77 |
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
192.3 |
|
|
|
191.9 |
|
|
|
192.2 |
|
|
|
191.9 |
Diluted |
|
|
192.5 |
|
|
|
192.2 |
|
|
|
192.4 |
|
|
|
192.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q2 2024 Quarterly Report available on our website
CONDENSE CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of
|
|
|
|
|
|
|
|
|
|
|
For the six months ended |
|
|||||
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
224.0 |
|
|
$ |
341.0 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Interest revenue |
|
|
(3.1) |
|
|
|
— |
|
Other interest income |
|
|
(0.6) |
|
|
|
— |
|
Depletion and depreciation |
|
|
111.1 |
|
|
|
136.1 |
|
Share-based compensation expenses |
|
|
2.9 |
|
|
|
3.2 |
|
Gain on disposal of royalty interests |
|
|
(0.3) |
|
|
|
(3.7) |
|
Unrealized foreign exchange loss (gain) |
|
|
7.8 |
|
|
|
(3.5) |
|
Deferred income tax expense |
|
|
56.3 |
|
|
|
15.1 |
|
Other non-cash items |
|
|
(0.3) |
|
|
|
(2.0) |
|
Acquisition of gold bullion |
|
|
(32.4) |
|
|
|
(25.2) |
|
Proceeds from sale of gold bullion |
|
|
16.6 |
|
|
|
18.6 |
|
Changes in other assets |
|
|
(17.4) |
|
|
|
— |
|
Operating cash flows before changes in non-cash working capital |
|
$ |
364.6 |
|
|
$ |
479.6 |
|
Changes in non-cash working capital: |
|
|
|
|
|
|
|
|
Increase in receivables |
|
$ |
(9.9) |
|
|
$ |
(8.7) |
|
Decrease (increase) in prepaid expenses and other |
|
|
2.5 |
|
|
|
(4.0) |
|
Increase in current liabilities |
|
|
15.7 |
|
|
|
4.8 |
|
Net cash provided by operating activities |
|
$ |
372.9 |
|
|
$ |
471.7 |
|
|
|
|
|
|
|
|
|
|
Cash flows used in investing activities |
|
|
|
|
|
|
|
|
Acquisition of royalty, stream and working interests |
|
$ |
(163.1) |
|
|
$ |
(270.8) |
|
Advances of loans receivable |
|
|
(83.5) |
|
|
|
— |
|
Acquisition of investments |
|
|
(11.0) |
|
|
|
(0.5) |
|
Proceeds from repayment of loan receivable |
|
|
18.9 |
|
|
|
— |
|
Proceeds from sale of royalty interests |
|
|
11.2 |
|
|
|
7.0 |
|
Proceeds from sale of investments |
|
|
1.1 |
|
|
|
1.9 |
|
Acquisition of energy well equipment |
|
|
(0.7) |
|
|
|
(0.8) |
|
Acquisition of property and equipment |
|
|
(0.1) |
|
|
|
— |
|
Net cash used in investing activities |
|
$ |
(227.2) |
|
|
$ |
(263.2) |
|
|
|
|
|
|
|
|
|
|
Cash flows used in financing activities |
|
|
|
|
|
|
|
|
Payment of dividends |
|
$ |
(119.2) |
|
|
$ |
(116.4) |
|
Proceeds from exercise of stock options |
|
|
2.7 |
|
|
|
2.9 |
|
Revolving credit facility amendment costs |
|
|
(0.8) |
|
|
|
— |
|
Net cash used in financing activities |
|
$ |
(117.3) |
|
|
$ |
(113.5) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
$ |
(11.3) |
|
|
$ |
3.6 |
|
Net change in cash and cash equivalents |
|
$ |
17.1 |
|
|
$ |
98.6 |
|
Cash and cash equivalents at beginning of period |
|
$ |
1,421.9 |
|
|
$ |
1,196.5 |
|
Cash and cash equivalents at end of period |
|
$ |
1,439.0 |
|
|
$ |
1,295.1 |
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
42.5 |
|
|
$ |
50.9 |
|
Dividend income received |
|
$ |
4.2 |
|
|
$ |
5.6 |
|
Interest and standby fees paid |
|
$ |
1.0 |
|
|
$ |
1.2 |
|
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q2 2024 Quarterly Report available on our website
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