Franco-Nevada Corp (NYSE:FNV) stock rose 0.18% (As on August 12, 11:19:38 AM UTC-4, Source: Google Finance) after the company reported second-quarter revenue that missed analyst expectations, despite posting record earnings and cash flow driven by higher gold prices. The company sold 112,093 gold equivalent ounces (GEOs) during the quarter, up 2% from the same period last year. The company’s operating cash flow reached $430.3 million (up 121% YoY) and adjusted EBITDA hitting $365.7 million (up 65% YoY). The company’s revenue mix for the quarter comprised 82% precious metals, 14% energy, and 4% iron ore and other assets. During the quarter, the company acquired a royalty on IAMGOLD’s Côté Gold Mine, one of Canada’s newest large-scale gold mines and, post quarter-end, a royalty on AngloGold’s Arthur Project, one of the largest gold discoveries in Nevada. The company also saw constructive developments in Panama, including the shipment of the remaining copper concentrate from Cobre Panama. The company has strong financial position with $1.1 billion in available capital3 as at June 30, 2025. High Adjusted EBITDA and Adjusted Net Income Margins further boosted by gain on sale of gold bullion in the quarter. The company reported $238.5 million in Adjusted Net Income or $1.24/share (new records), +65%

FNV in the second quarter of FY25 has reported the adjusted earnings per share of $1.28, beating the analysts’ estimates for the adjusted earnings per share of $1.13. The company had reported the adjusted revenue growth of 42 percent to $369.4 million in the second quarter of FY25, missing the analysts’ estimates for revenue of $375.91 million.

The company strengthened its growth outlook through strategic acquisitions, including a royalty on IAMGOLD’s Côté Gold Mine and a post-quarter acquisition of a royalty on AngloGold’s Arthur Project in Nevada. These acquisitions, along with growing contributions from Porcupine and Tocantinzinho, are expected to drive higher GEOs in the second half of 2025.

Franco-Nevada maintained its 2025 guidance of 465,000 to 525,000 total GEO sales, with 385,000 to 425,000 coming from precious metals. The company reported having $1.1 billion in available capital as of June 30, 2025, and declared a quarterly dividend of $0.38 per share.

The company also noted positive developments in Panama, including the shipment of remaining copper concentrate from Cobre Panama, which is expected to contribute approximately 10,000 GEOs in Q3 2025. The company  anticipates new contributions from Côté and growing contributions from Porcupine and Tocantinzinho to be the main drivers for higher GEOs in the second half of the year.