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(Petr David Josek/AP)
(Petr David Josek/AP)

Franco-Nevada hikes its dividend Add to ...

Franco-Nevada Corp. reported Tuesday that its first-quarter profit rose 121 per cent to $46.8-million (U.S.) and raised its monthly dividend by 12.5 per cent.

The Toronto-based gold royalty company, which reports in U.S. dollars, said the profit amounted to 33 cents a share, up from $21.2-million, or 18 cents in the same quarter of 2011.

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Revenue climbed 44 per cent to $105-million from $73.1-million.

The company also said it would raise its monthly dividend by five cents to 45 cents for July, August and September.

“Franco-Nevada had another solid quarter with significant growth year over year. This growth has allowed us to increase our dividend for the fifth consecutive year since going public,” said David Harquail, president and chief executive officer.

Increases in revenue were largely driven by higher commodity prices and higher production and recording a full quarter of revenue for its Sudbury assets.

Franco-Nevada completed about $110-million in new investments in the quarter.

That included a $35-million deal for a 2.25 per cent net smelter return royalty on Lake Shore Gold Corp.’s Timmins West Complex and an additional $15-million (Canadian) for 10 million shares in the company.

Franco-Nevada is a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas and other assets.

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