Franco-Nevada Corp (NYSE:FNV) stock rose 0.42% (As on August 9, 11:53:30 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. However, the revenue declined year on year. The company has declared a quarterly dividend of US$0.34 per share. The dividend will be paid on September 28, 2023 to shareholders of record on September 14, 2023.

FNV in the second quarter of FY 23 has reported the adjusted earnings per share of 95 cents, beating the analysts’ estimates for the adjusted earnings per share of 83 cents, according to Zacks Investment Research. The company had reported 6.4 percent decline in the adjusted revenue to $329.9 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $324.2 million. This is due to the impact of lower commodity prices for the Diversified assets more than offset the increase in revenue from our Precious Metal assets. With Cobre Panama and Antapaccay operating at full production levels following the temporary disruptions in early 2023, both assets generated strong deliveries in Q2 2023. Partly offsetting the impact of lower oil and gas prices, during the quarter, the company received catch-up royalty payments of approximately $7.0 million related to new wells primarily at our Permian interests, which are not expected to reoccur. Precious Metal revenue accounted for 78.6% of our revenue (64.8% gold, 10.7% silver, 3.1% PGM). Revenue was sourced 88.9% from the Americas (32.1% South America, 26.2% Central America & Mexico, 17.5% U.S. and 13.1% Canada)

On the other hand, subsequent to quarter-end, the company has agreed to acquire a slidingscale gold royalty and fixed-rate copper royalty from private individuals pertaining to the Chilean portion of Barrick’s Pascua-Lama project for a purchase price of $75.0 million. At gold prices exceeding $800/ounce, we will hold a 2.70% NSR (gold) and 0.54% NSR (copper) on the property. Subsequent to quarter-end, on July 6, 2023, the company agreed to acquire a 1.5% NSR on the Volcan gold project located in Chile for a purchase price of $15.0 million. The project is owned by Tiernan Gold Corporation, a company privately held by Hochschild Mining plc. The NSR covers the entire land package comprising the Volcan project, as well as a surrounding area of interest extending 1.5 kilometers. The company already hold an existing 1.5% NSR on the peripheral Ojo de Agua area, which is owned by Tiernan and forms part of the Volcan project.