Recently, Franco-Nevada Corporation (FNV - Free Report) acquired net smelter return ("NSR") royalties of Premier Gold Mines Limited ("Premier") for $6 million. Notably, the package consists of a 2% NSR on the PQ North Property, adjacent to the Musselwhite Mine in Northwestern Ontario, and a 1.5% NSR on the Rain/Emigrant and Saddle Properties located in Nevada.
On Jan 31, 2019, Franco-Nevada, through its wholly-owned Chilean subsidiary, acquired an existing 2% NSR on Gold Fields Limited’s (GFI - Free Report) Salares Norte gold project for $32 million. NSR includes $27 million of Franco-Nevada common shares and $5 million in cash. Gold Fields has an option to buy back 1% of the NSR for $6 million within 24 months of commercial production.
Moreover, on Feb 21, 2019, Franco-Nevada acquired a 2% NSR on Marathon Gold Corporation’s (“Marathon”) Valentine Lake Gold Camp in central Newfoundland for C$18 million. Further, Marathon has an option to buy back 0.5% of the NSR for $7 million until Dec 31, 2022.
Franco-Nevada expects to generate $100-$115 million in revenues in 2019 from energy assets compared with the prior estimate of $70-$85 million, driven by the Marcellus royalty acquisition and stellar performance of energy assets. With continued development of its U.S. oil & gas assets, the company forecasts energy assets to contribute 16-17% of revenues by 2023.
Franco-Nevada has completed its $1-billion commitment for the Cobre Panama project. This July, Cobre Panama commenced production of initial gold and silver stream, and will likely produce 140,000-175,000 tons of copper in the current year. Further, the project is anticipated to be a major growth driver for the second half of this year. For 2019, the company estimates to produce upper end of the prior guidance of 20,000-40,000 ounces gold from the project.
The company expects Gold Equivalent Ounces (GEOs) to be at the upper end of the previously-issued guidance of 465,000-500,000 GEOs, driven by strong results so far, and increase in expected deliveries from the Cobre Panama project.
Franco-Nevada’s shares have appreciated 52% compared to the industry’s gain of 69.9%.
Zacks Rank & Other Stocks to Consider
Franco-Nevada currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 79.7% over the past year.
Agnico Eagle has an outstanding projected earnings growth rate of 157.1% for the current year. The company’s shares have rallied 69.5% in a year’s time.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Recently, Franco-Nevada Corporation (FNV - Free Report) acquired net smelter return ("NSR") royalties of Premier Gold Mines Limited ("Premier") for $6 million. Notably, the package consists of a 2% NSR on the PQ North Property, adjacent to the Musselwhite Mine in Northwestern Ontario, and a 1.5% NSR on the Rain/Emigrant and Saddle Properties located in Nevada.
On Jan 31, 2019, Franco-Nevada, through its wholly-owned Chilean subsidiary, acquired an existing 2% NSR on Gold Fields Limited’s (GFI - Free Report) Salares Norte gold project for $32 million. NSR includes $27 million of Franco-Nevada common shares and $5 million in cash. Gold Fields has an option to buy back 1% of the NSR for $6 million within 24 months of commercial production.
Moreover, on Feb 21, 2019, Franco-Nevada acquired a 2% NSR on Marathon Gold Corporation’s (“Marathon”) Valentine Lake Gold Camp in central Newfoundland for C$18 million. Further, Marathon has an option to buy back 0.5% of the NSR for $7 million until Dec 31, 2022.
Franco-Nevada expects to generate $100-$115 million in revenues in 2019 from energy assets compared with the prior estimate of $70-$85 million, driven by the Marcellus royalty acquisition and stellar performance of energy assets. With continued development of its U.S. oil & gas assets, the company forecasts energy assets to contribute 16-17% of revenues by 2023.
Franco-Nevada has completed its $1-billion commitment for the Cobre Panama project. This July, Cobre Panama commenced production of initial gold and silver stream, and will likely produce 140,000-175,000 tons of copper in the current year. Further, the project is anticipated to be a major growth driver for the second half of this year. For 2019, the company estimates to produce upper end of the prior guidance of 20,000-40,000 ounces gold from the project.
The company expects Gold Equivalent Ounces (GEOs) to be at the upper end of the previously-issued guidance of 465,000-500,000 GEOs, driven by strong results so far, and increase in expected deliveries from the Cobre Panama project.
Franco-Nevada’s shares have appreciated 52% compared to the industry’s gain of 69.9%.
Zacks Rank & Other Stocks to Consider
Franco-Nevada currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 79.7% over the past year.
Agnico Eagle has an outstanding projected earnings growth rate of 157.1% for the current year. The company’s shares have rallied 69.5% in a year’s time.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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