Franco-Nevada Corp. (NYSE: FNV) reported a record-setting second quarter for 2025, driven by a significant rise in gold prices and strategic acquisitions. The royalty and streaming company announced new highs in revenue, operating cash flow, and net income, despite a decrease in overall gold equivalent ounces (GEOs) from its diversified assets.
According to its press release, Franco-Nevada's revenue for the quarter reached a record $369.4 million, a 42% increase from the same period in 2024. This growth was fueled by strong performance in its precious metals portfolio, which accounted for 82% of the quarter’s revenue. Specifically, gold revenue surged by 65% to $258.4 million compared to the prior year.
"Our portfolio largely produced as expected for the quarter and higher gold prices contributed to record revenue, operating cash flow, Adjusted EBITDA, and earnings," said Franco-Nevada CEO Paul Brink. He also highlighted the company's recent acquisitions, including a royalty on the Côté Gold Mine in Ontario and the Arthur Project in Nevada, as key drivers for future growth.
The company's GEOs sold totaled 112,093 for the quarter, a 2% increase from the second quarter of 2024. However, GEOs from diversified assets, which include oil, gas, and iron ore, saw a 30% reduction to 19,644 due to lower commodity prices.
In addition to its financial results, Franco-Nevada provided an update on the Cobre Panama mine. The company successfully shipped the remaining copper concentrate that had been stored on-site since operations were suspended in November 2023. Franco-Nevada expects to receive approximately 10,000 GEOs in the third quarter of 2025 from these shipments.
Looking ahead, the company anticipates an increase in GEO sales for the second half of the year, driven by new contributions from the Côté mine and the Porcupine complex, as well as a partial resumption of deliveries from Cobre Panama. Franco-Nevada maintains its 2025 guidance of 465,000 to 525,000 total GEOs sold.
By Michael Kern for Oilprice.com