- Company name
- Franco-Nevada
- Sector
- Gold royalties and streams
- About
- Franco-Nevada Corporation (Franco-Nevada) owns royalties and streams on mines and oil and gas fields. It receives a share of production or revenue, or buys metal at a low fixed or variable price, but it does not operate the mines. Most of its revenue comes from gold, silver and platinum group metals, and the rest from iron ore, other metals, oil and gas. Large assets include Candelaria, Antapaccay, Antamina, Côté Gold and the Western Limb PGM stream. The Cobre Panamá stream has been mostly halted since the mine closed in late 2023. Revenue was $1,822.8 million in 2025 and $580.9 million in Q2 2026. Franco-Nevada has no debt. The shares trade on the Toronto and New York stock exchanges. The head office is in Toronto, Ontario. Paul Brink is President and Chief Executive Officer.
- Thesis
- Franco-Nevada trades above the AI estimate because investors pay for a high-quality way to own gold, with no debt, no mining costs and a large portfolio. Its earnings rose fast with the gold price: Adjusted Net Income was $807.5 million in the first half of 2026, up 82%. So the price depends mainly on the gold price and on growth in gold equivalent ounces (GEOs). For the price to hold, three things must be true. GEOs must reach the upper half of the 2026 guidance of 510,000 to 570,000 and grow towards the 2030 outlook of 555,000 to 615,000. Franco-Nevada must invest its $4.3 billion of available capital in good new deals. And Cobre Panamá must restart under a new agreement, which could add 150,000 to 175,000 GEOs a year. The Q3 2026 report on November 11, 2026, and talks on Cobre Panamá are the next tests.
- Valuation
- The intrinsic value for Franco-Nevada is an AI estimate from November 11, 2026. It is not an analyst's value. An AI research agent calculated it from Franco-Nevada's filings. Franco-Nevada reports in U.S. dollars, and the values are in Canadian dollars per share for the TSX listing. The method is a multiple of adjusted net income per share for 2027, plus the equity investments. The Q2 2026 results and MD&A (6-K, August 11, 2026) give Q2 2026 revenue of $580.9 million from 132,405 gold equivalent ounces (GEOs), an average gold price of $4,517 per ounce, Adjusted Net Income of $349.2 million, or $1.81 per share and 60.1% of revenue, 2026 guidance of 510,000 to 570,000 GEOs at $4,500 gold with results tracking towards the upper half, cash of $1,014.2 million, equity investments of $1,041.2 million, no debt, and 192,873,810 shares at August 11, 2026. The Q4 2025 results (6-K, March 10, 2026) give a 2030 outlook of 555,000 to 615,000 GEOs, without any GEOs from Cobre Panamá. Revenue per GEO was about 97% of the gold price in Q2 2026. Adjusted net income includes the interest income on the cash, so the estimate adds only the equity investments, $5.40 per share. It uses an exchange rate of 1.4181 Canadian dollars per U.S. dollar, the Bank of Canada rate for November 10, 2026, as an assumption. The Q3 2026 results are due after market close on November 11, 2026, and are not part of this estimate. The GEOs, the gold prices, the margins and the multiples are assumptions. The low case assumes 530,000 GEOs at $3,500 gold and a margin of 55%, with EPS of $5.13, at 30 times. It gives US$159.30, or C$225.90 per share. The base case assumes 560,000 GEOs at $4,000 gold and a margin of 58%, with EPS of $6.53, at 35 times. It gives US$233.95, or C$331.76 per share. The high case assumes 600,000 GEOs, with some deliveries from Cobre Panamá, at $4,500 gold and a margin of 61%, with EPS of $8.28, at 38 times. It gives US$320.04, or C$453.85 per share. The estimate assumes weights of 25%, 50% and 25%. The weighted intrinsic value is C$335.82 per share. The value moves with the gold price and the U.S. dollar. Intangible assets and cost advantage are the main sources of the advantage. Many royalty and stream contracts last for the life of the mines, Franco-Nevada pays no mining costs, and its portfolio is large and diversified. But competition for new royalties and streams is strong, and the price of each new deal sets its return. The estimate expects the advantage to last 10 years or more, but not 20 years.
As of Nov 11, 2026.
- Risks
- Revenue and earnings move with the gold price. The 2026 guidance assumes $4,500 gold, and a lower price reduces earnings quickly.
Cobre Panamá is halted except for stockpile processing. The government commission proposes a project with an orderly closure, so a full restart is not certain.
Franco-Nevada depends on the operators of the mines. Lower production at Candelaria, Antapaccay or other large assets lowers its GEOs.
Governments can challenge contracts or raise taxes, as in Panama and Burkina Faso, where a local court tried to void the Karma stream.
Competition for new royalties and streams is strong. High prices for new deals can lower future returns.
- Balance sheet
- Cash: $1.0B
Debt: $0.0M
Net cash: $1.0B
Undrawn credit line: $1.5B, to May 2029
Franco-Nevada has no debt. At June 30, 2026, cash and cash equivalents were $1,014.2 million, and equity investments, without its long-term investment in Labrador Iron Ore Royalty Corporation, were $1,041.2 million. Two unsecured revolving credit facilities of $1.5 billion in total were undrawn: the $1.0 billion corporate revolver matures on March 10, 2031, and the $500 million FNIC revolver on May 8, 2029. Their accordions add $750 million. With these, available capital was $4.3 billion. At August 11, 2026, there were 192,873,810 shares. The quarterly dividend is $0.44 per share.
As of Jun 30, 2026.
- Checkpoints
- Nov 11, 2026: Q3 2026 results: GEOs and Cobre Panamá deliveries. Pending. Watch: GEOs on track for the upper half of 2026 guidance and first Cobre Panamá deliveries pass; a cut in guidance fails.
Mar 2027 (estimate): 2026 results, 2027 guidance and five-year outlook. Pending. Watch: 2027 GEO guidance above the 2026 result passes; lower guidance fails.
2027 (estimate): Cobre Panamá talks. Pending. Watch: An agreement that restarts mining passes; an agreement for closure only, or no agreement, fails.
- Recent events
- Sep 30, 2026: The Panamanian ministerial commission recommended talks with First Quantum on a new agreement for Cobre Panamá, which would end the arbitrations and allow a project with an orderly closure.
Sep 13, 2026: Franco-Nevada agreed to buy an additional gross royalty on the Bullabulling gold project from Minerals 260 for A$170 million, and to subscribe for A$30 million of its shares.
Aug 11, 2026: Franco-Nevada reported Q2 2026 results. Revenue rose 57% to $580.9 million, GEOs sold rose 18% to 132,405, and Adjusted Net Income was $349.2 million, or $1.81 per share. It expects 2026 GEOs in the upper half of its guidance.
Jun 17, 2026: A local court in Burkina Faso said that the stream agreement on the Karma mine is void. Franco-Nevada says that the judgement is not valid and seeks remedies under Ontario law.
May 12, 2026: Franco-Nevada reported Q1 2026 results.
Apr 7, 2026: The Government of Panama approved the processing and export of stockpiled ore at Cobre Panamá. Franco-Nevada expects deliveries of about 23,000 gold ounces and 265,000 silver ounces from it.
Mar 10, 2026: Franco-Nevada reported record 2025 results, with revenue of $1,822.8 million and Adjusted Net Income of $5.58 per share. It gave a 2030 outlook of 555,000 to 615,000 GEOs, without Cobre Panamá.