Post Earnings Coverage as Franco-Nevada’s Q4 Revenues Rose 30% on Record Gold Sales

Upcoming AWS Coverage on Jagged Peak Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 4, 2017 / Active Wall St. announces its post-earnings coverage on Franco-Nevada Corp. (NYSE: FNV). The Company reported its fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) earnings on March 22, 2017. The Toronto, Canada-based Company’s quarterly total revenues surged 28.0% on a y-o-y basis. Register with us now for your free membership at:

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One of Franco-Nevada’s competitors within the Gold space, Jagged Peak Energy Inc. (NYSE: JAG), reported on March 23, 2017, its financial and operating results for the fourth quarter and full-year ended December 31, 2016, year-end 2016 proved reserves and 2017 guidance. AWS will be initiating a research report on Jagged Peak Energy in the coming days.

Today, AWS is promoting its earnings coverage on FNV; touching on JAG. Get our free coverage by signing up to

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Earnings Reviewed

During the Q4 FY16, Franco-Nevada reported revenues of $155.3 million compared to $121.3 million in Q4 FY15. However, revenues number for Q4 FY16 lagged behind market expectations of $157.3 million.

The precious metal mining Company’s net loss narrowed down in Q4 FY16 to $4.5 million, or $0.03 loss per share, from net loss of $31.4 million, or $0.20 loss per share, in the prior year’s comparable quarter. The Company reported adjusted net income of $42.9 million, or $0.24 per share in Q4 FY16, compared to $23.7 million, $0.15 per share, in Q4 FY15. Meanwhile, Wall Street had expected the Company to report adjusted net income of $0.20 per diluted share. Furthermore, adjusted EBITDA for the reported quarter stood at $122.2 million, or $0.69 per share, compared to $94.2 million, or $0.60 per share, in Q4 FY15.

Franco-Nevada’s revenues surged 37.6% to a record $610.2 million during FY16 from $443.6 million in FY15. The Company’s net income for FY16 was $122.2 million, or $0.69 per diluted share, compared to $24.6 million, or $0.16 per diluted share, in FY15. Moreover, the adjusted net income for FY16 stood at $164.4 million, or $0.94 per share, versus $88.9 million, or $0.57 per share, in FY15. Additionally, the Company reported adjusted EBITDA of $489.1 million, or $2.79 per share, in FY16 compared to $337.1 million, or $2.16 per share, in FY15

Operational Metrics

During the quarter ended December 31, 2016, Franco-Nevada generated $112.8 million from gold sales, up from $88.0 million in Q4 FY15. The Company’s revenues from silver sales also rose to $21.9 million in Q4 FY16 from $18.9 million in Q4 FY15. Platinum Group Metal (PGM) contributed $8.0 million to the Company’s total revenues in Q4 FY16 compared to $7.9 million in Q4 FY15. In the reported quarter, Other minerals and Oil and Gas revenues amounted to $2.2 million and $10.4 million, respectively, versus $2.1 million and $4.4 million, respectively, in Q4 FY15.

For Q4 FY16, gold sales volume was 93,775 Gold Equivalent Ounces (GEOs) compared to 79,800 GEOs in the previous year’s same quarter. The Company’s silver sales volume increased to 18,650 GEOs in Q4 FY16 from 17,112 GEOs in Q4 FY15. In the reported quarter, Platinum Group Metal (PGM) sales volume was 7,611 GEOs compared to $7,523 GEOs in Q4 FY15.

Furthermore, in Q4 FY16, Franco-Nevada’s 87.2% of total revenues originated from the Americas region with US contributing 18.5%, Canada 22.3%. It is to be noted that 46.4% of the Company’s total revenues were sourced from Latin American nations.

Cash Flow and Balance Sheet

In the twelve months ended December 31, 2016, net cash provided by operating activities rose to $471.0 million from $314.3 million in FY15. As on December 31, 2016, cash and cash equivalents balances stood at $253.0 million compared to a balance of $149.2 million as on December 31, 2015. Furthermore, Franco-Nevada did not report any debt in its books of accounts as on December 31, 2016. The Company had $457.3 million of debts as on December 31, 2015.

Earnings Outlook

In its outlook for full year FY17, the Company expects total attributable royalty and stream production to be in the range of 470,000 to 500,000 GEOs from its mineral assets. Moreover, the Company forecasts revenue of $35 million to $45 million from its oil & gas assets.

Stock Performance

On Monday, April 03, 2017, Franco-Nevada’s share price finished the trading session at $66.40, advancing 1.36% from its previous closing price of $65.51. A total volume of 575.39 thousand shares exchanged hands. The stock has advanced 11.11% and 10.26% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 11.11%. At Monday’s closing price, the stock’s net capitalization stands at $11.84 billion. In addition, the stock is trading at a PE ratio of 119.21.

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