Franco-Nevada (NYSE:FNV) reported higher second-quarter production-equivalent sales and record first-half financial results, aided by stronger precious-metal and oil prices, increased production at key assets, and contributions from recently acquired interests.
President and Chief Executive Officer Paul Brink said total gold-equivalent ounces, or GEOs, sold rose 18% from a year earlier during the second quarter. The increase reflected higher production at Antamina and South Arturo, new contributions from the company’s Côté Gold and Casa Berardi interests, and the start of production at Valentine Gold.
Revenue, Earnings and GEO Sales Rise
Chief Financial Officer Sandip Rana said the company achieved record revenue, adjusted EBITDA, adjusted net income and operating cash flow in the first six months of 2026. Second-quarter revenue increased 57% year over year, while adjusted EBITDA rose 45% and adjusted net income increased 46%.
Adjusted net income was $349.2 million, or $1.81 per share, for the quarter. Total GEOs sold increased to 132,405 from slightly more than 112,000 in the second quarter of 2025. Precious-metals GEOs totaled 114,111, up 23% from the prior-year period.
Average gold prices were 38% higher year over year during the quarter, while silver prices increased 118%, Rana said. Although both metals retreated from first-quarter highs, the company also benefited from oil prices that remained above $80 per barrel for West Texas Intermediate crude.
Antamina revenue rose to $57.4 million from $23.3 million a year earlier, reflecting greater deliveries, higher silver prices and the processing of higher-grade ore. Rana said the company expects processing of higher-grade material at Antamina to continue through the second half of 2026.
South Arturo also made a significant contribution as the operation benefited from Phase I open-pit production. Rana noted, however, that South Arturo’s production profile was expected to be weighted toward the first half of the year.
At Candelaria, mine production was lower than in the prior-year quarter, when the operation processed higher-grade Phase IA ore. Franco-Nevada expects stronger second-half performance as higher-grade Phase 12 ore becomes available and underground mining rates increase. The company estimates that a step-down in the Candelaria stream will occur during the first half of 2027, though it could occur earlier depending on production through the remainder of 2026.
Guidance and Cobre Panama Outlook
Franco-Nevada maintained its full-year 2026 guidance of 510,000 to 570,000 GEOs sold. The company sold approximately 269,000 GEOs in the first half and expects results to trend toward the upper half of the guidance range.
Rana said stronger second-half contributions are anticipated from Candelaria, Tocantinzinho, Côté and Valentine. The company also expects to receive between 9,000 and 10,000 GEOs from Cobre Panama as First Quantum processes stockpile ore.
Brink said an environmental audit at Cobre Panama found no major issues and reported an overall operating compliance rate of 87.7%. Panama’s government subsequently created a commission of senior ministers to evaluate environmental considerations and the economic contribution of a potential restart.
Franco-Nevada has not participated in discussions with the Panamanian government regarding a restart or possible changes to the mine’s fiscal terms, Brink said, noting that First Quantum is the operator and party engaging with the government.
Portfolio Developments and Energy Activity
Brink pointed to expansion, development and exploration updates across Franco-Nevada’s royalty portfolio, including developments at Côté, Detour, Magino, Valentine, Caserones and Séguéla, as well as a potential pit pushback at Candelaria. He also cited resource expansions at Guadalupe, Hemlo, Bullabulling and AurMac, and progress at Copper World and Stibnite Gold.
The company said 86% of second-quarter revenue came from precious metals, while 88% was generated in the Americas. No single asset accounted for more than 10% of revenue, according to Rana.
Energy revenue increased on stronger oil prices. Brink said U.S. oil rigs in the lower 48 states had risen to 450 from 420 three months earlier, while average producer reinvestment rates increased to 55% from 51% earlier in the year. He said higher drilling activity could translate into increased production volumes late in 2026 and into 2027, though operators generally need time to adjust drilling programs.
Franco-Nevada’s diversified GEO sales declined to 18,209 from 19,644 a year earlier, but diversified revenue increased 31% to $82.2 million. Rana said the lower GEO figure reflected the company’s conversion of revenue into GEOs using a fixed gold price of $4,500 per ounce.
Capital Available for Acquisitions
As of June 30, Franco-Nevada had $4.3 billion of available capital, consisting of $1 billion in cash, $2.25 billion under its credit facility including accordion capacity, and $1.2 billion in liquid marketable securities. The company said it remained debt-free.
Chief Investment Officer Eaun Gray said Franco-Nevada’s transaction pipeline includes opportunities across a range of deal sizes and development stages, with particular potential in project financing for new mine construction. He said transaction activity could pick up later in 2026 and into 2027, while larger transactions may take longer to close.
Management said it expects to deploy a significant amount of available capital before considering other methods of returning capital to shareholders. Franco-Nevada paid $84 million in quarterly dividends during the second quarter.
About Franco-Nevada (NYSE:FNV)
Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.
The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.
