-Franco-Nevada falls on Q2 earnings miss as lower sales weigh

Franco-Nevada

14/08/2024 15:50

** Shares of gold-focused royalty and streaming company
Franco-Nevada Corp  FNV.N  fall 7% to C$159.32
    ** Co on Tuesday after markets closed reported Q2 net income
per share of 75 cents vs. est. of 82 cents - LSEG data
    ** Revenue falls 21.2% from year ago; reports lower GEO
sales
    ** Says y-o-y results were lower without the contribution
from Cobre Panama mine in Panama, lower production at the
Candelaria mine in Chile and Antapaccay mine in Peru, and higher
taxes; expects stronger output in H2 2024 
    ** "While we see the company as offering a strong asset
base, we think any resolution at Cobre Panama will take time and
we are not willing to pay a bigger premium than the shares
already trade" - Jefferies analysts
    ** "Notwithstanding our positive views on the Yanacocha 1.8%
NSR royalty acquisition, we anticipate a potential negative
reaction in today's trading due to the earnings miss and the
adjustment to guidance" - TD Cowen analysts 
    ** FNV expects to be at the lower end of its 2024 total GEO
sales guidance of 480,000-540,000 ounces 
    ** YTD, including session moves, FNV up ~8.6%

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))