Franco Nevada Corp (NYSE:FNV) stock fell 0.26% (As on Mar 10, 11:12:17 AM UTC-4, Source: Google Finance) after the company posted inline earnings for the fourth quarter of FY 21. There is no debt and $1.6 billion in available capital as at December 31, 2021. The company generated $279.0 million in operating cash flow for the quarter. The company’s quarterly dividend increased 6.7% to $0.32/share, effective from Q1 2022.

FNV in the fourth quarter of FY 21 has reported the adjusted earnings per share of 86 cents, beating the analysts’ estimates for the adjusted earnings per share of 86 cents. The company had reported the adjusted revenue growth of 7.6 percent to $327.7 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $315.57 million. The growth was primarily driven by higher realized oil and gas prices from the Energy assets and revenue from our recently acquired Vale Royalty. These more than offset a slight decrease in Precious Metal revenue, and resulted in 76.1% of our revenue being sourced from Precious Metal assets (60.0% gold, 11.8% silver, 4.3% PGM). Revenue was sourced 91.7% from the Americas (30.8% South America, 26.3% Central America & Mexico, 22.9% U.S. and 11.7% Canada)

In 2022, the company expects a slightly lower production profile in comparison to 2021, with the attributable GEOs expected to range between 680,000 and 740,000 GEOs. Of this, the Precious Metal assets are expected to contribute between 510,000 and 550,000 GEOs. The outlook reflects an expected lower contribution from the Guadalupe-Palmarejo stream and expected lower grades at Antamina and Antapaccay in 2022. The company estimated depletion expense to be between $270 and $300 million. The remaining capital commitment to the Royalty Acquisition Venture with Continental is $91.6 million.

For five years, the company expects the portfolio to produce between 765,000 and 825,000 GEOs by 2026, of which 570,000 to 610,000 GEOs are expected to be generated from Precious Metal assets. This outlook assumes that Cobre Panama will have expanded its mill throughput capacity to 100 million tonnes per year during 2023. It also assumes the commencement of production at Salares Norte, Greenstone (Hardrock), Rosemont, Valentine Lake, and Eskay Creek, continued deliveries from Sudbury through 2026, and that the stream at MWS will have reached its cap in 2024.