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Franco-Nevada (FNV) Updates on Cobre Panama, Retains Guidance

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Franco-Nevada Corporation (FNV - Free Report) announced that its partner, First Quantum Minerals Ltd. (FQVLF - Free Report) , issued an update on its Cobre Panama mine.

Due to continued illegal blockades at the Punta Rincon port since Nov 20, 2023, First Quantum has halted commercial production at the Cobre Panama mine. It is implementing a Preservation and Safe Maintenance program to safeguard the mine's compliance, and environmental integrity, asset preservation and safe maintenance of the plant and facilities.

FNV’s previous guidance was pegged at 490,000-530,000 Precious Metal GEOs for 2023. On Nov 20, 2023, FNV adjusted the same to 480,000-500,000 Precious Metal GEOs , factoring in the impacts of the curtailment on Cobre Panama operations. In its latest update, Franco-Nevada has stated that it does not anticipate any contributions from Cobre Panama after Nov 20, 2023. Hence, its 2023 GEO projection has been unchanged.

Cobre Panama accounted for roughly 40% of First Quantum's revenues and 1.5% of the world’s copper supply in 2022. In the third quarter of 2023, the mine produced 112,734 metric tons of copper and contributed $930 million to the company’s quarterly revenues.

In the third quarter of 2023, First Quantum recorded total revenues of $2,029 million, of which $1,791 million was accounted for by copper sales. It reported revenues of $1,727 million in the third quarter of 2022.

Price Performance

Franco-Nevada’s shares have lost 21.9% in the past year against the industry’s growth of 7.7%.


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Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) and The Andersons Inc. (ANDE - Free Report) . AXTA sports a Zacks Rank #1 (Strong Buy), and ANDE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. Its shares have gained 16% in a year.

The consensus estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 35.5% in a year.

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