The following is a summary of the Franco-Nevada Corporation (FNV) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 revenue was reported at $260.1 million compared to $329.9 million a year ago.
GEOs sold in Q2 2024 were 110,264 compared to 168,515 in the prior year's quarter.
Adjusted EBITDA for the quarter was at $221.9 million, and adjusted net income was $144.9 million, or $0.75 per share.
Cost of sales decreased year-over-year, primarily due to lower GEOs delivered from Antapaccay and Candelaria and no ongoing fixed costs from Cobre Panama.
Business Progress:
Recently added two significant assets to their portfolio: a gold stream on SolGold's Cascabel project in Ecuador and a royalty on Newmont's Yanacocha operations in Peru.
Enhancements in Candelaria and Antapaccay expected to improve production in the latter half of the year.
Expectations of increased revenue due to newly started productions at Salares Norte, Greenstone, and Tocantinzinho gold mines.
Opportunities:
Potential underground expansion at Candelaria and future development of the Coroccohuayco at Antapaccay are expected to enhance long-term asset performance.
Significant contributions anticipated from new acquisitions: Cascabel project in Ecuador and Yanacocha operations in Peru, hinting at an expanded geographical and operational footprint.
Risks:
The performance risks tied to the lower production in Candelaria and Antapaccay due to operational challenges like geotechnical events and mining interface issues.
Geopolitical and operational risks associated with the new investments in regions like Ecuador, highlighted by the structured deal terms to mitigate these risks.
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