Franco-Nevada Reports Record Q2 2025 Results
Executive Summary
- Franco‑Nevada reported record Q2 2025 financial results – revenue $369.4 M (+42% YoY), operating cash flow $430.3 M (+121%), Adjusted EBITDA $365.7 M (+65%) and net income $247.1 M (+211%).
- The company added two significant royalties: a 7.5% gross‑margin royalty on IAMGOLD’s Côté Gold Mine ($1.05 B cash) and a 1.0% NSR on AngloGold Ashanti’s Arthur Gold Project ($250 M cash + $25 M contingent).
- Guidance for 2025 was reaffirmed with an expected total GEO sales range of 465‑525 k (up from 433‑473 k prior) and a quarterly dividend of US$0.38 per share.
Key Details
- Financial Highlights – Q2 2025 vs. Q2 2024
- Revenue: $369.4 M (record, +42%)
- GEOs sold: 112,093 (↑2%); Net GEOs sold: 101,876 (↑4%)
- Operating cash flow: $430.3 M (record, +121%)
- Adjusted EBITDA: $365.7 M or $1.90/share (record, +65%)
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Net income: $247.1 M or $1.28/share (record, +211%)
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H1 2025 vs. H1 2024
- Revenue: $737.8 M (record, +43%)
- Total GEOs sold: 238,678 (↑2%)
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Adjusted EBITDA: $687.6 M or $3.57/share (record, +57%)
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Dividend – Quarterly dividend declared at US$0.38 per share (5.6% annual increase), payable 25 Sep 2025.
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Portfolio Acquisitions
- Côté Gold Mine royalty: 7.5% gross‑margin royalty; cash consideration $1,050 M (closed 24 Jun 2025).
- Arthur Gold Project NSR: 1.0% NSR (of existing 1.5%) for $250 M cash + $25 M contingent (closed 23 Jul 2025); funded partly by $175 M draw on $1.0 B revolving credit facility.
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Gold Quarry royalty increase: Additional 1.62% NSR for $10.5 M cash + $1 M contingent (closed 11 Jul 2025).
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Financing Package – Discovery Silver Porcupine Complex (15 Apr 2025)
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Acquired 4.25% NSR for $300 M, provided $100 M senior secured term loan and C$70.9 M equity financing; total package $448.6 M; no draws made yet.
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Cobre Panama Update – Completion of shipment of 121 kt copper concentrate; expected receipt of ~10,000 GEOs (9,000 oz Au, 105,000 oz Ag) in Q3 2025; partial impairment reversal $4.1 M recorded in Q2.
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Arbitration – Suspension of arbitration against Panama government (18 Jun 2025).
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Guidance for 2025 (assumes commodity price assumptions listed)
- Total GEO sales target: 465‑525 k (up from prior 433‑473 k).
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Precious‑metal GEO sales target: 385‑425 k.
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Sustainability & Awards – Recognized by Sustainalytics, MSCI (AA), ISS ESG (Prime); published 2025 Sustainability Report; third time on Corporate Knights’ Best 50 Canadian Citizens list.
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Conference Call – Q2 2025 results webcast scheduled for 11 Aug 2025, 10:00 am ET.
Notable Quotes
“I am very pleased with our record financial results this quarter,” said Paul Brink, CEO.