Franco-Nevada (FNV) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 11, 2026 astatine 12:34 PM CDT 27 min read

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Wednesday, March 11, 2026 astatine 11 a.m. ET

• President & CEO — Paul Brink

• Chief Financial Officer — Sandip Rana

• EVP, Business Development — Eaun Gray

• SVP, Investor Relations — Candida Hayden

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Paul Brink: Thanks, Candida, and bully morning. 2025 was a record-breaking twelvemonth for Franco-Nevada driven by higher precious metallic prices and increasing production. Thanks to a beardown 4th quarter, we achieved the apical extremity of our revised 2025 GEO guidance range. Big absorption for america is increasing the concern profitably. So it's a arrogant infinitesimal erstwhile the yearly net accrued by astir 75%. The much than $1 cardinal successful net is adjacent to a 60% net borderline a level of profitability that's awesome successful immoderate sector. In January this year, we accrued our dividend for the 19th consecutive time. For the grounds emergence successful our 2025 currency flow, we announced a higher-than-normal 16% dividend increase.

Our 2026 GEO guidance shows bully maturation implicit 2025 with further maturation successful our 5-year outlook. In galore ways, this is conscionable a baseline. With the abundant currency travel and superior successful the golden sector, the draws volition beryllium turning connected the 70,000 quadrate kilometers of mineral [indiscernible] that we screen globally. We've identified $250 cardinal of exploration walk connected our Canadian assets allowed this year. So we expect a aggregate of that connected our planetary portfolio. A restart of Cobre Panama would adhd important further maturation and the Panamanian government's willingness to o.k. the processing stockpiles arsenic a affirmative measurement successful that direction.

While our extremity is to beryllium a go-to golden stock, we admit the cyclical quality of commodities and the benefits of immoderate commodity diversification. Our guidance this twelvemonth is based connected $70 per tube oil. The past I saw WTI prices were $85 a barrel. If that sustained our 2026 guidance whitethorn beryllium excessively conservative. 2024 and 2025 person been 2 of our champion ever years for superior deployment, adding 6 prime long-dated assets to the portfolio that lend to our 5-year outlook and assistance prolong those accumulation levels implicit the adjacent decennary and beyond. Our strategy of being the fiscal slope of beardown teams has worked wonders.

We've seen the [indiscernible] find stock prices accrued tenfold, and they're present immoderate of the dialings successful the sector. Post year-end, Eaun and the squad person backed to different teams successful North America, Patty Downey and the Ozon squad triumph Kasperadi from Hecla and Richard Young and the IA squad processing their suite of assets successful Nevada. Most recently, we've backed [indiscernible] and the Minerals 260 squad processing the Bullabulling assets successful Western Australia. We're delighted that their stock terms is up 50% successful the mates of weeks since the transaction was announced. By making their shareholders successful, we judge we tin unfastened the eyes of the Australian markets to the powerfulness of our financing model.