(Adds comment and updates shares.)
Franco-Nevada (FNV.TO, FNV) on Monday said its fourth-quarter adjusted profit rose on higher gold prices.
The royalty and streaming company said its adjusted profit, excluding most one-time items, rose to US$183.3 million, or US$0.95 per share, from US$172.9 million, or US$0.90, in the year-prior quarter. The consensus estimate from analysts polled by FactSet expected a profit of $0.90 per share.
Revenue rose to US$321 million from US$303.3 million. Analysts surveyed by FactSet expected $304.4 million. Adjusted EBITDA also advanced to US$277.4 million, or US$1.44 per share, from US$254.6 million, or US$1.33 per share.
Franco-Nevada sold 120,063 gold equivalent ounces in the quarter, down from 152,351 gold equivalent ounces.
The company expects 2025 revenue to be more than 25% higher than in 2024 based on a budgeted gold price of US$2,800 per ounce. Franco-Nevada also expects a 14% increase in precious metal gold-equivalent ounces and a 7% increase in its total gold-equivalent ounces for 2025, assuming no contributions from the suspended Cobre Panama project.
National Bank Financial maintained its sector-perform rating and $220.00 price target following the update.
"Overall, we remain cautious on new royalty origination given the competitive market landscape and see some near-term headwinds for FNV to allocate capital as efficiently as it has in recent years - something we believe may lead it to becoming a consolidator of smaller-scale opportunities within the sector," the bank said.
Franco-Nevada shares were last seen up $5.94 to $211.71 on the Toronto Stock Exchange.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.