Franco-Nevada (TSX: FNV) just delivered another strong quarter, but the most interesting part of the earnings call had very little to do with revenue, margins, or production.
The company is now sitting on roughly $4.3 billion of available capital, has no debt, and continues to generate hundreds of millions in cash. The problem is deployment. While competitors like Wheaton Precious Metals, Triple Flag, OR Royalties, and Royal Gold have been putting billions into new streams and royalties, Franco-Nevada spent only a fraction of that amount during the quarter.
In this video, we break down Franco-Nevada’s Q2 results, its growing cash pile, the acquisition pipeline, the possibility of additional capital returning from Côté, and how the company’s valuation stacks up against the rest of the royalty sector.
We also look at whether Franco-Nevada’s caution is a sign of discipline in an expensive gold market, or whether the company is simply struggling to find enough attractive opportunities to put its growing war chest to work.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
