Franco-Nevada Corporation

Franco-Nevada Corp reported record second-quarter 2026 financial results, with revenue up 57% year over year and adjusted EBITDA up 45%. Adjusted net income rose 46% to $349.2 million, or $1.81 per share, while total gold equivalent ounces sold increased 18% to 132,405. The company said it is tracking toward the upper half of its 2026 annual guidance range of 510,000 to 570,000 GEOs, supported by strong performance from Candelaria, Tocantinzinho, Cote, and Valentine. Franco-Nevada maintained $4.3 billion in total available capital as of June 30, 2026, including $1 billion in cash and no debt, positioning it for future acquisitions. Management also noted positive news on the Cobre Panama environmental audit, with an 87.7% compliance rate and no major findings, though formal restart negotiations with the Panamanian government have not yet begun.

Franco-Nevada declared a quarterly dividend of $0.44 per share, in line with the previous payout. The dividend is payable on September 24 to shareholders of record as of September 10, with the ex-dividend date also on September 10. The forward yield is 0.73%. The company has now announced a dividend of $0.44 for three consecutive quarters.

JPMorgan Chase has issued a forecast that gold could rise to more than $5,000 an ounce by the fourth quarter of 2026, with potential for further gains thereafter. The prediction comes as CEO Jamie Dimon warned of elevated market risks, likening them to colliding tectonic plates. The bank suggests investors consider gold as a hedge, highlighting streaming and royalty companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals as attractive vehicles due to their diversification and dividend histories.

Sinda Ltd., a silver exploration company with mineral projects in Mexico, will begin trading today on the New York Stock Exchange under the ticker symbol SIND. The company is advancing a large-scale, high-grade silver-gold discovery in the historic Guanajuato district, with an estimated 369 million silver-equivalent ounces of Inferred Mineral Resources and 16 million silver-equivalent ounces of Indicated Mineral Resources at an average grade of 692 silver-equivalent grams per tonne. Coinciding with the initial public offering, Fresnillo plc is subscribing for up to 5% of Sinda's outstanding shares in a private placement, while Franco-Nevada is participating as an anchor investor with a $10 million order. Net proceeds from the offering will fund a multi-year exploration and infill drilling program, including construction of a 9-kilometer underground exploration decline at the Caracol deposit, with the objective of achieving initial production by 2031. Sinda will ring the NYSE Opening Bell on July 2, 2026 to celebrate its listing.

Bank of America published a note on June 22 arguing that the selloff in gold equities has opened an opportunity, as mining stocks are pricing in gold well below where it actually trades. Using a price-to-net asset value approach, the bank found that companies in its coverage universe are pricing gold at an average of $3,354 per ounce, a 19% discount to spot, while on an EV/EBITDA basis the implied average came in at $4,016 per ounce, a 3% discount. The bank acknowledged near-term headwinds from the Federal Reserve holding rates at 3.50% to 3.75% and signaling possible future hikes under Chairman Kevin Warsh, but pointed to persistent U.S. budget deficits, de-dollarization trends, and central bank buying as structural supports. A World Gold Council survey published June 16 found that 89% of 76 central bank respondents expect global official gold reserves to increase over the next 12 months, with a record 45% planning to add to their own holdings. Bank of America maintained its 12-month gold price target of $6,000 per ounce and raised its full-year 2026 average gold price forecast to $5,093 per ounce, implying roughly 46% upside from around $4,110 at the time of writing.