We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Bullabulling Deal Aid Franco-Nevada's Portfolio Expansion?
Read MoreHide Full Article
Key Takeaways
Franco-Nevada boosts its Bullabulling stake to 3.90% through an A$170M royalty deal.
Bullabulling holds 4.4 Moz of Indicated and 1.7 Moz of Inferred Resources.
FNV expects the project to produce 150,000 ounces of gold annually for its first 10 years.
Franco-Nevada Corporation (FNV - Free Report) has inked a deal with Minerals 260 Limited, the owner and developer of the Bullabulling project, to acquire an A$170-million ($122 million) gross royalty to fund the project’s development.
Adding to FNV’s existing 2.45% gross royalty, this move increases the company’s total project stake to 3.90%, along with securing an expanded area of interest and an enhanced royalty profile. Along with the royalty transaction, Franco-Nevada is committing an additional A$30 million ($22 million) as a lead order in a future equity raise.
The expanded royalty secures a large resource base, covering 8.5 km strike-length on the Bullabulling trend and 1 km strike-length at the Gibraltar deposit. Bullabulling is one of Australia’s largest near-term gold projects, located on existing mining leases. The project has a clear path to production from conventional open-pit mining and CIL processing.
In July 2026, Minerals 260 completed a pre-feasibility study at the mine, reporting 4.4 Moz of Indicated Resources and 1.7 Moz of Inferred Resources. The study validates Franco-Nevada’s assessment of Bullabulling as a long-life mine, projecting an average annual gold production of 150,000 ounces over the first 10 years and a total mine life of 19 years.
Minerals 260 expects to complete a definitive feasibility study and reach a final investment decision in early 2027, with first gold production targeted for the second half of 2028. The financing deal will aid Minerals 260 to expand the project’s resource base and bring it into production. The production from Bullabulling is likely to aid Franco-Nevada’s growth in the upcoming years.
Growth Drivers of Other Miners
B2Gold Corp. (BTG - Free Report) received the Menankoto exploitation permit from the State of Mali in August 2026, following productive dialogue that commenced in late July 2025. This allows pre-stripping to commence at Fekola Regional, a major near-term production growth driver for B2Gold consisting of the Menankoto exploitation permit and the Dandoko exploration permit.
Post the permit, B2Gold expects Fekola Regional to ramp through the end of 2027 and produce more than 150,000 ounces annually from 2028 through the mid-2030s.
SSR Mining Inc. (SSRM - Free Report) remains the third-largest U.S. gold producer, driven by the two high-quality, long-lived assets, Marigold in Nevada and CC&V in Colorado. SSR Mining is moving forward with growth initiatives across the Marigold mine, including Buffalo Valley. The company expects an updated life-of-mine plan by 2026-end.
The company increased the mine’s 2026 growth capital guidance from $48 million to $65 million as it plans to boost longer-term growth. With over 38 years of operations, SSR Mining remains optimistic about Marigold's long-term growth. Along with SSRM’s other key projects like CC&V as well as Seabee and Puna, Marigold showcases significant potential upside.
FNV’s Price Performance, Valuations & Estimates
Franco-Nevada’s stock has gained 28.3% in a year compared to the Zacks Mining – Gold industry’s 37.4% growth. During this time, the Basic Materials sector has risen 22.2% and the S&P 500 has gained 16.5%.
Image Source: Zacks Investment Research
FNV is currently trading at a forward 12-month earnings multiple of 31.71X, at a premium to the industry average of 13.50X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Franco-Nevada’s 2026 sales is $2.28 billion, indicating 25.2% year-over-year growth. The consensus mark for the year’s earnings is $7.54 per share, indicating year-over-year growth of 35%.
The Zacks Consensus Estimate for 2027 sales implies 2.6% year-over-year growth. The same for earnings indicates year-over-year growth of 13.4%.
EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below.
View the Zacks #1 Rank List
Image: Bigstock
Can Bullabulling Deal Aid Franco-Nevada's Portfolio Expansion?
Key Takeaways
Franco-Nevada Corporation (FNV - Free Report) has inked a deal with Minerals 260 Limited, the owner and developer of the Bullabulling project, to acquire an A$170-million ($122 million) gross royalty to fund the project’s development.
Adding to FNV’s existing 2.45% gross royalty, this move increases the company’s total project stake to 3.90%, along with securing an expanded area of interest and an enhanced royalty profile. Along with the royalty transaction, Franco-Nevada is committing an additional A$30 million ($22 million) as a lead order in a future equity raise.
The expanded royalty secures a large resource base, covering 8.5 km strike-length on the Bullabulling trend and 1 km strike-length at the Gibraltar deposit. Bullabulling is one of Australia’s largest near-term gold projects, located on existing mining leases. The project has a clear path to production from conventional open-pit mining and CIL processing.
In July 2026, Minerals 260 completed a pre-feasibility study at the mine, reporting 4.4 Moz of Indicated Resources and 1.7 Moz of Inferred Resources. The study validates Franco-Nevada’s assessment of Bullabulling as a long-life mine, projecting an average annual gold production of 150,000 ounces over the first 10 years and a total mine life of 19 years.
Minerals 260 expects to complete a definitive feasibility study and reach a final investment decision in early 2027, with first gold production targeted for the second half of 2028. The financing deal will aid Minerals 260 to expand the project’s resource base and bring it into production. The production from Bullabulling is likely to aid Franco-Nevada’s growth in the upcoming years.
Growth Drivers of Other Miners
B2Gold Corp. (BTG - Free Report) received the Menankoto exploitation permit from the State of Mali in August 2026, following productive dialogue that commenced in late July 2025. This allows pre-stripping to commence at Fekola Regional, a major near-term production growth driver for B2Gold consisting of the Menankoto exploitation permit and the Dandoko exploration permit.
Post the permit, B2Gold expects Fekola Regional to ramp through the end of 2027 and produce more than 150,000 ounces annually from 2028 through the mid-2030s.
SSR Mining Inc. (SSRM - Free Report) remains the third-largest U.S. gold producer, driven by the two high-quality, long-lived assets, Marigold in Nevada and CC&V in Colorado. SSR Mining is moving forward with growth initiatives across the Marigold mine, including Buffalo Valley. The company expects an updated life-of-mine plan by 2026-end.
The company increased the mine’s 2026 growth capital guidance from $48 million to $65 million as it plans to boost longer-term growth. With over 38 years of operations, SSR Mining remains optimistic about Marigold's long-term growth. Along with SSRM’s other key projects like CC&V as well as Seabee and Puna, Marigold showcases significant potential upside.
FNV’s Price Performance, Valuations & Estimates
Franco-Nevada’s stock has gained 28.3% in a year compared to the Zacks Mining – Gold industry’s 37.4% growth. During this time, the Basic Materials sector has risen 22.2% and the S&P 500 has gained 16.5%.
FNV is currently trading at a forward 12-month earnings multiple of 31.71X, at a premium to the industry average of 13.50X.
The Zacks Consensus Estimate for Franco-Nevada’s 2026 sales is $2.28 billion, indicating 25.2% year-over-year growth. The consensus mark for the year’s earnings is $7.54 per share, indicating year-over-year growth of 35%.
The Zacks Consensus Estimate for 2027 sales implies 2.6% year-over-year growth. The same for earnings indicates year-over-year growth of 13.4%.
EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below.
FNV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.