Franco Nevada Corp (NYSE: FNV) has reported the adjusted earnings per share of $0.24 in the fourth quarter of 2016 beating the analysts’ estimates for the adjusted earnings per share of $0.20. However, the company had reported the adjusted revenue growth of 28 percent to $155.3 million in the fourth quarter 2016, missing the analysts’ estimates for revenue of $157.3 million. The revenue grew due to the record ounces delivered and soaring sales during the period. FNV has posted in 2016, the 30.9 percent growth in the gold-equivalent ounces (GEOs) to 471 509 oz. There is 29 percent more GEOs sold to 464 383 oz in 2016.

In 2017, Franco Nevada expects the attributable royalty and stream production to total 470,000 to 500,000 GEOs from its mineral assets and revenue of $35 million to $45 million from its oil & gas assets. Of the royalty and stream production, 335,000 to 345,000 GEOs are expected from FNV’s various stream agreements. For 2017 projection, the silver, platinum and palladium metals have been converted to GEOs using assumed commodity prices of $1,200/oz Au, $17.50/ oz Ag, $950/oz Pt and $750/oz Pd. The WTI oil price is assumed to average $50 per barrel with a $3.50 per barrel price differential between the Edmonton Light and realized prices for Canadian oil.  FNV has estimated the depletion expense of $265 million to $295 million.

Additionally, for 2021 outlook Franco Nevada has assumed the ramping up production of Cobre Panama project in 2019. The scheduled fixed ounce payments from Midas/Fire Creek, Karma and Sabodala are expected to step down to longer term royalty or stream payments. Franco Nevada  expects its existing portfolio to generate between 515,000 to 540,000 GEOs by 2021.

FNV has declared a quarterly dividend of US$0.22 per share, which will be paid on March 30th, 2017 to shareholders of record on March 16th, 2017.

Franco Nevada continue to see investment opportunities and FNV has just planned to acquire, for $110 million, oil & gas royalties on the Midland portion of the Permian Basin in Texas, U.S. The transaction is expected to close in the second quarter of 2017. Further, on December 19th, 2016, FNV has acquired a $100 million portfolio of oil & gas royalty rights in the SoonerTrend, Anadarko Basin, Canadian and Kingfisher counties  play in Oklahoma’s Anadarko basin

FNV stock has fallen 0.3% in the after-hours session on March 22nd, 2017 (Source: Google finance). The stock fell over 13% in the last one year but recovered over 12.1% since the last three months.