Franco-Nevada: An Elite Quality Business On The Sale Rack (Rating Upgrade)

Franco-Nevada Corporation stands out for its unrivaled asset diversification, superior margins, and capital discipline, making it the premier vehicle in the precious metals sector. Record gold/silver prices helped it deliver record revenue ($651M), operating cash flow ($520M), and exceptional ~92.9% cash margins, with new assets and higher metals prices driving robust YoY growth. Importantly, FNV's business model shields it from inflation and provides it with massive discovery optionality, never mind unrivaled cash flow diversification vs. producers. Trading at ~18.8x 2026 EV/OCF and in a rare low-risk Buy zone, I see this pullback below US$200.00 as a gift, with investors getting Cobre Panama optionality for free. Looking for a portfolio of ideas like this one? Members of Alluvial Gold Research get exclusive access to our subscriber-only portfolios. Learn More » erlucho/iStock via Getty Images All figures are in United States Dollars unless otherwise noted. G/T = grams per tonne (of gold or silver). GEOs = gold-equivalent ounces. AISC refers to all-in sustaining costs. LOMP = life of mine plan. TPD = tonnes per day. UG = Underground. OP = open-pit. MTPA = million tonnes per annum. FS/DFS = Definitive Feasibility Study. PFS = Pre-feasibility study. PEA = Preliminary Economic Assessment. NSR = net smelter This article was written by Taylor Dart 32.56K Followers Follow Taylor Dart is an individual investor with over 17 years of trading experience, with his primary focus being precious metals developers, producers and royalty/streaming companies. Taylor leads the investing group Alluvial Gold Research, where he offers portfolios with entry/exit points, Buy/Sell alerts, and proprietary sentiment indicators for gold and silver miners. Learn more. - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing. Analyst’s Disclosure: I/we have a beneficial long position in the shares of FNV, FNV:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in the article. Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying small-cap precious metals stocks, position sizes should be limited to 6% or less of one's portfolio. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that do include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.