FNV · Franco-Nevada Corporation

Franco-Nevada reported record Q1 2026 results, with revenue surging 77% to $650.7 million, driven by higher gold and silver prices, contributions from recently acquired assets (Côté Gold, Porcupine, Valentine), and a $49.5 million refund from the Canada Revenue Agency. Net income rose 123% to $468.6 million ($2.43 per share), including a $63.8 million gain from the partial buy-back of the Cascabel stream and NSR. Adjusted EBITDA increased 84% to $591.9 million, with margin expanding to 91.0% from 87.4%, reflecting the high-margin royalty/stream model. Management highlighted that the sharp rise in oil prices is expected to positively impact Q2 revenues, while the company remains largely insulated from cost inflation. The company maintained its 2026 GEO sales guidance of 510,000-570,000 ounces, excluding potential contributions from Cobre Panamá. Subsequent to quarter-end, the government of Panama authorized processing of stockpiled ore at Cobre Panamá, with expected deliveries of ~23,100 gold ounces and 265,000 silver ounces starting Q3 2026. Additionally, Tom Albanese was appointed independent non-executive Chair, succeeding David Harquail who became Chair Emeritus. The company also completed several portfolio additions post-quarter, including a $40 million royalty portfolio from Victoria Gold Corp., a $100 million gold stream on Casa Berardi, a $250 million NSR with i-80 Gold, and a $120 million gross royalty on Bullabulling. Available capital stood at $3.4 billion as of March 31, 2026, providing ample liquidity for further growth.