Franco-Nevada Corporation is a Canadian gold-focused royalty and streaming company. It is listed on the Toronto Stock Exchange and the New York Stock Exchange and trades under the ticker symbol ‘FNV’.
The company owns a diversified portfolio of royalties, streams, working interest that maximizes cash flow, security of tenure and opens new investment avenues.
The Toronto-based company asserts that it does not operate mines, conduct exploration or develop projects. The company focuses on growing its assets through acquisitions and management of streams, royalties and working interest in the energy and mining sector.
The company claims that its portfolio consists of cash-producing assets which allow exploration optionality and free cash flow.
Franco-Nevada’s properties are located in multiple locations, including:
• Latin America: Cobre Panama, Guadalupe-Palmarejo, Candelaria, Antapaccay, Cerro San Pedro and Salares Norte.
• Canada: Detour Lake, Sudbury, Golden Highway, Canadian Malartic, Hemlo and Brucejack.
• United States: Marigold, EaglePicher, Goldstrike, Sandman, Hollister, Castle Mountain, Shirley Basin and Bald Mountain.
There are basically two types of royalties: Profit-based Interest Royalties and Revenue-based Royalties.
Revenue-based royalties are centered around the value of net proceeds after deductions as stated in the contract. Some forms of such royalties in the energy and mining sector include Overriding Royalty, Net Smelter Return Royalty, Gross Royalty and Freehold or Lessor Royalty.
Profit-based Interest royalties, on the other hand, are subject to the operating profit as specified in the royalty contract.
Apart from royalties, the Canadian company acquires stream and working interest in mines.
Under stream, the agreement holders are eligible to purchase precious metal such as gold, silver, or others from mines after upfront payment and additional payment for each delivery. Streams are not royalties as they do not represent an interest in land and consist of ongoing cash payments to purchase precious metal.
Working interests are not royalties as they have ongoing funding requirements to develop or operate and reflect the ownership position of an agreement holder in the property.
The official website contains investment and financial highlights and sustainable initiatives of the company.