Franco-Nevada Announces Election of Directors
, /PRNewswire/ - Franco-Nevada Corporation announced that the nominees listed in the management proxy circular for the 2021 Annual and Special Meeting of Shareholders were elected as directors of the Corporation. Detailed results of the vote for the election of directors held at the Annual Meeting yesterday by webcast are set out below.
Franco-Nevada Reports Strong Q1 Results
, /PRNewswire/ - "Franco-Nevada's diversified portfolio outperformed in the first quarter generating record revenues and an 85% Adjusted EBITDA Margin," stated , President and CEO. "Antamina, Cobre Panama, and made strong contributions along with our Energy assets that benefitted from a recovery in prices. We were delighted, post quarter-end, to acquire the Vale Royalty Debentures that, along with our Labrador Iron Ore Royalty Company investment, add to our base of low-risk long-life cash flow. The transaction adds to the diversity of our portfolio while it remains more than 80% precious metals focused. Following the acquisition, we have revised our guidance and outlook and now expect 25% growth in revenue over the next five years. Our primary focus is on adding further precious metal assets to the portfolio."At today's annual meeting, the Hon. stepped down as the Chair of the Compensation and ESG Committee and, after more than 13 years, as a Director of Franco-Nevada. The Board thanked Mr. Peterson for his outstanding leadership, consensus-building contributions and many years of service.
Franco-Nevada Adds Iron Ore Royalty Exposure
Designated News Release , /PRNewswire/ - Franco-Nevada has acquired 14.7% of outstanding Participating Debentures ("Royalty Debentures") from the Brazilian Development Bank ("BNDES") and the Government of for . The Royalty Debentures provide holders with life of mine net sales royalties on Northern and Southeastern Iron Ore Systems and on certain copper and gold operations (together, the "Royalty"). This transaction provides royalty exposure to some of the world's largest and most profitable integrated iron ore mines with reserve weighted mine lives of 30 years and potential for multiple additional decades through reserve growth. The Royalty covers a total of 15.6 thousand square kilometers of mineral properties held by in , also offering exposure to a number of development properties. The Royalty currently generates an annualized pre-tax cash yield of 10% based on acquisition cost and the most recent semi-annual Royalty Debenture payment. The amount of production capacity subject to the Royalty is expected to grow by approximately +60% by 2026 which would imply an 8% yield on investment at that time, assuming consensus long term iron ore prices. Franco- has also accumulated a 9.9% equity investment in Labrador Iron Ore Royalty Corporation ("LIORC"). The position was acquired over a number of years for a total investment of , representing an average cost of /share, versus recent trading of approximately /share. An investment in LIORC functions as a flow through of income from its royalty and equity interest in the Iron Ore Company of ("IOC") Carol Lake mine operated by Rio Tinto in . Reserves at Carol Lake are sufficient to sustain mining for 24 years and resources indicate potential for further multi-decade extensions. Since starting to accumulate the position, Franco-Nevada has recouped more than 95% of its original investment (inclusive of Q1 2021 dividends declared and to be paid ). Our LIORC investment is generating an annualized cash yield of 27% based on acquisition cost and the most recent dividend payment. Franco- has no intention of increasing the position at current prices.
Franco-Nevada Launches 2021 ESG Report and Asset Handbook
, /PRNewswire/ - Franco-Nevada Corporation is pleased to announce publication of its 2021 Environmental, Social and Governance ("ESG") Report and 2021 Asset Handbook. "We are proud to report on Franco-Nevada's sector leading ESG performance and our new programs and commitments that we believe will continue this leadership," said , President and CEO. "We strive to increase the quality of our Asset Handbook each year knowing it is a helpful resource for analysts and investors on our diverse asset base."
Reports Project Gold Mines Are Expected to Produce More Than Ever In 2021
, /PRNewswire/ -- Gold has again risen to all-time highs because investors have again rushed to its traditional 'safe haven'. It rises not despite the pandemic… but because of the global crisis. The trading price is predicted by many to continue to soar and miners are also looking to increase production. A from Singapore Bullion Market Association, spoke about the Metals Report issued in which said: "Turning to 2021, Metals Focus remains bullish towards gold. We are confident that as policy rates remain low and fiscal spending persists, inflows of institutional money into the yellow metal will continue. Low rates and yields are typically positive for gold, as they minimize the opportunity cost of holding the zero-yielding metal. Moreover, given exceptionally low yields (or, in other words, high bond prices), the effectiveness of bonds as a hedge against market turmoil, and in particular equity market corrections, is hampered as it becomes harder to see yields fall much more. This forces investors towards other portfolio diversifiers, something that should continue to benefit gold. Related to this point, policy accommodation has resulted in exceptionally strong equity market performance. While this has been a boon for investors, it also amplifies their need to diversify portfolios and gold will remain an instrument to do so." Active stocks in the mining markets this week include (OTCQX: CXBMF) (TSX: CXB), (NYSE: FNV) (TSX: FNV), (TSX: LUN) (OTCPK: LUNMF) (TSX: EDV) (OTCQX: EDVMF),
Analysts Indicating Gold's New Golden Era Has Just Started
, /PRNewswire/ -- Gold is the world's oldest safe asset, always thriving in times of uncertainty. Historically, investors have reverted to it as a hedge against political and economic tumult, with its price jumping during wars, contested elections and economic crises. During the Great Recession, gold's price trebled from early 2007 to 2011. The same scenario is now repeating itself with the global pandemic. In the summer of 2020, while stock markets were recovering from a pandemic-driven slump, the old asset made its comeback with a roar, according to an in the World Finance. It said, in part: "In August, the price of gold surpassed the threshold of an ounce for the first time in history. Few people who had been following the market were shocked at the news. "If you asked me at the end of 2019, I would have been bearish on gold. But given COVID-19 and the fiscal stimulus put in place, this didn't come as a surprise," said a senior commodities analyst at an investment bank." Active stocks in the mining markets this week include (NYSE: GOLD) (TSX: ABX), (OTCPK: CLGCF) (CSE: CLAR), (NYSE: NEM) (TSX: NGT), (TSXV: AMX) (OTCQX: AMXEF), (NYSE: FNV) (TSX: FNV).
Why Pressure To Replace Mined Reserves May Be A Big Driver For M&A Of Gold Mining Operations In 2021
, /PRNewswire/ -- The global pandemic has again shown that in times of uncertainty investors flock to gold. As a result, mining operations are under pressure to mine more of the precious metal. In 2020 this demand resulted in a large number of smaller mergers and acquisitions. Industry experts are predicting another round of consolidation for the industry in 2021, although they aren't looking for mega-mergers. Instead, they expect to see a continuation of the trend in 2020 that brought a larger number of smaller deals. In a , BOA analyst said his team believes the pressure to replace reserves that have been mined will be one of the big drivers for mergers and acquisitions this year. They noted that gold reserves have been falling since 2012, while gold output has remained stable. Further, their coverage universe must replace 50 million ounces of reserves mined each year. He added that the team expects more interest in targets in the U.S., , and other parts of the world that are politically safe. They believe the M&A market will be more of a seller's market this year. The team expects a wave of M&A among gold miners in 2021, noting that the pressure to replace mined reserves will be one of the big drivers for mergers and acquisitions this year. Active stocks in the mining markets this week include . (OTCQB: XNDRF) (TSXV: XND), (NYSE: AU), (NYSE: GFI), (NYSE: FNV) (TSX: FNV), (NYSE: KL) (TSX: KL).
Franco-Nevada Files Year-End Disclosure Documents and Provides Details on Upcoming Virtual Analyst Day
, /PRNewswire/ - Franco-Nevada Corporation announced that its Annual Information Form, Consolidated Annual Financial Statements and Management's Discussion and Analysis for the year ended have been filed with Canadian securities regulatory authorities. Franco-Nevada has also filed its Form 40-F for the year ended with the U.S. Securities and Exchange Commission. Copies of these documents may be obtained via or (for the Form 40-F).
Experts Hinting Gold May Be Entering A Bull Market That Could Last Over A Decade
, /PRNewswire/ -- One of the big topics for the gold mining corporations in 2021 has been the prospect of mergers and acquisitions. Analysts predict another round of consolidation for the industry in 2021, although they aren't looking for mega-mergers. Instead, they expect to see a continuation of the trend in 2020 that brought a larger number of smaller deals. In a recent report, Bank of America (BofA) analyst and team said they believe the pressure to replace reserves that have been mined will be one of the big drivers for mergers and acquisitions this year. They noted that gold reserves have been falling since 2012, while gold output has remained stable. The in Investor Place said that: "The BofA team doesn't expect to see mega-mergers in the mining space this year. Instead, they look for senior gold producers to optimize their assets to lower costs and build the next generation of growth projects. However, they also point out that senior producers are keeping a watch for available world-class assets…The BofA team expects more interest in targets in the U.S., , and other parts of the world that are politically safe. They believe the need to replace gold reserves means the M&A market will be a seller's market this year." Active stocks in the mining markets this week include (NYSE: GOLD) (TSX: ABX), (OTCQB: GIDMF) (CSE: IGLD), (NYSE: HL),(NYSE: FNV) (TSX: FNV), (NYSE: NEM) (TSX: NGT).
Vox to Acquire Western Australian Gold Royalty Portfolio
Vox to Acquire Western Australian Gold Royalty Portfolio