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Discussion Starter #1
  • Franco-Nevada is a gold focused royalty and stream company with additional interests in platinum group metals and other resource assets.
  • The majority of revenues are generated from high margin assets in North America.
  • The portfolio provides exposure to some of the largest gold discoveries in the world.
  • We currently operate with a small organization of approximately twenty full-time employees and contractors.
  • We operate with a flat management structure similar to that of a small merchant bank
  • Over 95% of our investments to date have been for precious metals assets.
  • As of March 26, 2012, we have a total of approximately 342 assets in all commodities at all stages of development.
  • For our gold division, we have 170 gold assets of which 39 are in production, 20 are advanced with the potential of production in the next five years and 117 are exploration stage royalties.
Above info is quoted from www.franco-nevada.com

Stock quote http://tmx.quotemedia.com/quote.php?qm_symbol=FNV
Monthly dividend 0.06 USD yields 1.35%
Dividend history http://performance.morningstar.com/stock/performance-return.action?p=dividend_split_page&region=CAN&t=FNV

Code:
FNV.TO price performance from Feb 01 to May 31

     approx price
        Feb 01
2008    19.00        +14%
2009    25.45        +19%
2010    27.05        +10%
2011    27.85        +30%
2012    45.30        - 6%
2013    53.30
 

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I like Sandstorm Gold better. They focus on smaller plays and have much more room to grow. They are also better valued on Price/Cash Flow basis.

I agree that FNV have been around longer and are probably lower risk. They are very richly valued on a PE basis right now.
 

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Discussion Starter #4 (Edited)
Thanks pmr & max

~~~~~//~~~~~

It pains me to see investors messing around with the big, stodgy, lumbering, too-big-to-rally producers.
They might be better served sticking with the physical metal, an ETF, or a couple of the royalty companies.

I urge investors (traders exempted) to pull up historical prices and make some comparisons.

Randgold (GOLD) isn't a royalty company;
I just threw it in for sake of comparison.
Randgold Resources is a gold mining and exploration company
operating in the prospective gold belts of west and central Africa.




 

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Discussion Starter #5
Not buying today; just watching.
It looks like gold & silver want to continue down until cash starts flowing out of the broad market into commodities.


 

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Discussion Starter #6
bump bump bump it up

If I'm reading this chart correctly, based on 9-year history, Franco-Nevada
could be expected to gain 12% from 3rd week in Jan to end Feb.

Will check back to see how it did - if I remember.


 

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Discussion Starter #8
Was thinking of buying more today, before earnings report after-hours, but I chickened out.
- no guts - no glory.

Franco's mandate allows for 30% diversification into oil & gas.
- good or no? - I don't know.

Franco-Nevada Reports Strong Full-Year 2016 Results
PR Newswire – 8 minutes ago
(in U.S. dollars unless otherwise noted)

Guidance exceeded and $110 million agreement to acquire second package of U.S. oil & gas royalties

Franco-Nevada’s CEO, David Harquail, commented: “Our diversified portfolio continues to perform very well. In 2016, we exceeded our recently increased guidance ranges for both Gold Equivalent Ounces1 (“GEOs”) and oil & gas revenues. The growth in 2016 is reflecting the contribution from acquisitions we made during the recent downturn and increased activity by many of the operators on our lands. Franco-Nevada has no debt and is growing its cash balances. We continue to see investment opportunities and Franco-Nevada has just agreed to acquire, for $110 million, oil & gas royalties on the Midland portion of the Permian Basin in Texas, U.S.”
 

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PSK trades at a very high multiple with pure O&G royalties. FNV, though, trades at nosebleed levels. They can only buy so many gold royalties in the world. The oil market is an order of magnitude larger.
 
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