Franco-Nevada Corporation

Franco-Nevada said Q2 2026 revenue increased 57% year over year, adjusted EBITDA rose 45%, adjusted net income rose 46% to $349.2 million, and adjusted net income was $1.81 per share. Total GEOs sold increased 18% to 132,405, including precious metal GEOs of 114,111, while diversified GEOs sold were 18,209; 86% of Q2 revenue came from precious metals and 88% came from the Americas. Cost of sales was $45.9 million versus $33.5 million last year, depletion was $84 million versus $64 million a year ago, and the company paid $84 million in dividends during the quarter. For the first six months of 2026, management said the company achieved record revenue, adjusted EBITDA, adjusted net income and operating cash flow. Full-year 2026 guidance remains 510,000 to 570,000 GEOs sold, and management said it is tracking toward the upper half of that range; Cobre Panamá is expected to contribute 9,000 to 10,000 GEOs, and energy revenue is expected to remain strong in the second half.

Paul Brink said the quarter benefited from both strong commodity prices and portfolio growth, calling it a strong second quarter with broad-based “green shoots” across the asset base. He emphasized organic growth from the royalty portfolio, citing mine expansions, exploration success, and project approvals across several assets, while also highlighting the completed environmental audit at Cobre Panamá and the government review process now underway. His tone was constructive and upbeat, but measured, especially on guidance and the timing of a possible restart in Panama.

Sandip Rana said the portfolio continued to perform well and, combined with stronger commodity prices, drove the 57% revenue increase, 45% adjusted EBITDA increase, and 46% adjusted net income increase. He pointed to higher silver and gold prices, with average gold up 38% year over year and silver up 118%, and noted higher energy prices also helped results. He also flagged higher cost of sales at $45.9 million and higher depletion at $84 million, driven by newer, higher per-ounce depletion assets such as Yanacocha, Casa Berardi, Porcupine and Côté, while stressing the company’s liquidity of $4.3 billion, including $1 billion in cash, $2.25 billion under the credit facility with accordion, and $1.2 billion in liquid marketable securities.

Analysts pressed on the volatility in NPIs at Hemlo and Musselwhite; management said Hemlo should improve in the second half versus Q2, while Musselwhite had a catch-up entry and should be very strong in 2026 given current commodity prices. On Cobre Panamá, management said First Quantum—not Franco-Nevada—would handle government negotiations, and there have been no discussions about changing fiscal terms. Questions on capital allocation focused on deal sizing and the possibility of a special dividend; management said the pipeline includes both small and significantly larger opportunities, with project finance particularly active, and said capital is more likely to be deployed into deals rather than returned via a special dividend. They also said if IAMGOLD repurchased half of the Côté Gold NPI, the cash would likely support balance sheet flexibility and potentially a higher regular dividend, not a special dividend.