Franco-Nevada Corporation (TSX:FNV) reported its fourth quarter and year-end 2022 operating and financial results on Wednesday, with the gold-focused royalty and streaming company providing softer-than-expected 2023 guidance of 640,000 to 700,000 gold equivalent ounces (GEOs) sold, Stifel GMP analysts wrote in a report published on Thursday.
They also noted that Cobre Panama has resumed processing operations, with Franco-Nevada forecasting attributable revenue GEOs of 115,000 to 135,000 in 2023.
“Update on concession agreement at Cobre Panama removes a significant overhang; that said, with the restriction of concentrate shipment in February at Cobre, shipment timing could impact revenue in 2023,” the analysts said.
“We expect first-half revenues to see softer numbers.”
The Stifel analysts added, though, that Franco-Nevada's five-year outlook, now calling for 760,000 to 820,000 GEOs, is higher than their expectations.
“The five-year outlook comes with what we think could be a better profile than we had forecast for Cobre, Palmarejo, and Sudbury, and we believe some mine-life extensions,” they wrote.
“Previously, we did not include Stibnite or Eskay Creek in our estimates, which would add an additional ~12-15,000 GEOs.”
Stifel GMP analysts maintained their ‘Hold’ rating and target price of C$204 on Franco-Nevada stock, saying the company’s large diversified portfolio and the inherent benefits of the royalty/streaming model allow for consistent financial performance.
Contact Sean at sean@proactiveinvestors.com