4 Things Franco-Nevada Management Wants You to Know
Many investors get nervous about the prospect of having to deal with mining operations and their inherent uncertainties. For them, companies like Franco-Nevada (NYSE: FNV) that focus on royalty and streaming interests rather than engaging in mining activity themselves are particularly attractive. Franco-Nevada has continued to do well in 2017, and following its most recent earnings report, CFO Sandip Rana talked with investors about Franco-Nevada's prospects both in the near term and further out into the future.
We continue to stress the scalability of our business model. ... There has been a significant increase in revenue over the last six years. Costs have also increased over this time frame, but the largest cost component is the stream.
Franco-Nevada hasn't been content simply to let its initial emphasis on gold and silver streaming arrangements be its only way of capitalizing on favorable trends in the natural resources sector. Instead, new agreements have diversified the company's exposure. In particular, strong performance in palladium was a noteworthy contributor to Franco-Nevada's revenue growth during the quarter, as rising prices paid off for the streaming company. Oil revenue has also continued to rise, in part because of more favorable pricing and in part because of the addition of new oil-related assets. By remaining open to investing in different types of assets, Franco-Nevada can navigate changing markets more efficiently.
Source: Fool.com
