Franco-Nevada Corporation, a leading gold-focused royalty and streaming company, reported its fourth quarter and year-end 2024 financial results, demonstrating a stable performance amid a backdrop of rising gold prices. The company sold a total of 463,334 gold equivalent ounces (GEOs) for the year, marking a decrease of 26% compared to the previous year. However, when excluding the impact from its halted operations at Cobre Panama, GEO sales declined by only 7%.

In the fourth quarter alone, Franco-Nevada sold 120,063 GEOs, which represents a 21% drop from the same quarter last year, but is down just 3% when Cobre Panama is excluded. This reduction in GEOs sold was affected by a shift in commodity price conversions; without the Cobre Panama distraction and utilizing consistent commodity pricing, 7% growth in GEOs sold would have been noted.

Total revenue for Q4 2024 reached $321 million, a 6% increase from $303.3 million in Q4 2023, or up 30% when isolating the effects of Cobre Panama. For the full year 2024, revenues were reported at $1.113 billion, down 9% compared to 2023, but this represents a growth of 15% when excluding impacts from Cobre Panama operations.

Franco-Nevada recorded adjusted EBITDA of $951.6 million for the year, which reflects a 6% decline compared to 2023, or a 16% increase when excluding Cobre Panama. This yields an adjusted EBITDA margin of 85.5% for the year, up from 83.2% in the prior year. Net income for 2024 was $552.1 million compared to a net loss of $466.4 million in 2023. Adjusted net income rose 10% year-over-year to $618.1 million.

In terms of profitability metrics, Q4 reported adjusted net income of $183.3 million, reflecting an increase of 6% compared to the same period last year. Adjusted net income margin remained stable at 57.1%. For the full year, cash costs per GEO sold declined to $278, down from $286 in 2023, allowing for enhanced profit margins given the higher gold prices. Notably, margins per GEO rose to $2,375 in Q4 2024.

Franco-Nevada’s guidance for 2025 is optimistic, forecasting total GEO sales between 465,000 and 525,000, which represents a 7% increase from 2024. Precious metal GEOs are expected to fall between 385,000 and 425,000 in 2025, signifying a 14% increase over the previous year. The company provided its revenue expectations based on a budgeted gold price of $2,800 per ounce, anticipating over 25% growth compared to 2024.

The overall financial position remains strong with total available capital amounting to $2.4 billion at year-end. The company continues to maintain a debt-free status, which supports its ongoing business development and acquisition strategy. As a demonstration of this strength, Franco-Nevada increased its dividends again in January 2025, marking the 18th consecutive annual increase, now totaling $2.5 billion since its IPO.

Franco-Nevada remains well positioned to seize new opportunities, underscored by its focus on acquisitions and partnerships that are expected to contribute additional production capacity in the medium term.