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Canada's Franco-Nevada Q3 revenue misses estimates on lower gold stream deliveries

By Reuters News


Overview

  • Canada gold royalty firm's Q3 revenue rose 13% yr/yr but missed analyst expectations

  • Adjusted EPS for Q3 rose yr/yr but missed analyst expectations

  • Company says higher gold and oil prices drove revenue and earnings growth


Outlook

  • Franco-Nevada sees 2026 GEOs sold between 525,000 and 555,000

  • Company expects 2026 diversified revenue of $300 mln to $330 mln

  • Franco-Nevada tracking toward mid-range of annual guidance for 2026


Result Drivers

  • HIGHER GOLD AND OIL PRICES - Co said stronger gold and oil prices drove revenue and earnings growth

  • LOWER GOLD STREAM DELIVERIES - Co said GEOs sold fell due to lower contributions from gold stream segment and iron ore assets, partly offset by higher energy asset contributions and favorable silver-to-gold conversion

  • ASSET-SPECIFIC PRODUCTION ISSUES - Co cited lower deliveries or production at Cobre Panamá, Guadalupe-Palmarejo, Antapaccay, and Candelaria as weighing on precious metal GEOs sold


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$549.30 mln

$587.84 mln (3 Analysts)

Q3 Adjusted EPS

Miss

$1.89

$1.94 (8 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the gold peer group is "buy"

  • Wall Street's median 12-month price target for Franco-Nevada Corporation is C$397.50, about 9.5% above its November 10 closing price of C$363.09

  • The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 23 three months ago


Reuters Recommended Reads

  • Nov 11 - Canada's OR Royalties Q3 revenue, adjusted EPS top estimates on higher metal prices

  • Nov 9 - Barrick Mining Q3 revenue rises 22% on higher gold prices

  • Nov 10 - Canada's Altius Minerals Q3 royalty revenue rises on electricity, lithium gains


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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