Franco-Nevada's Q2 2025: Key Contradictions in Cobre Panama, Energy Royalties, and Gold Strategy Unveiled

Cobre Panama negotiations and arbitration, energy royalties and performance, gold bullion inventory strategy, Cobre Panama arbitration and operations, and gold price strategy and impact on deal pipeline are the key contradictions discussed in Franco-Nevada's latest 2025Q2 earnings call.



Record Financial Performance:
- Franco-Nevada reported record revenue of $369.4 million for the second quarter of 2025, up 42% year-over-year.
- This growth was driven by high gold prices, which led to record operating cash flow and adjusted-EBITDA margins.

Gold Production and Prices:
- Precious metal GEOs sold increased by 12%, with the average gold price higher by 40% in the quarter.
- The increase in gold prices was a significant factor in the company's strong financial performance.

Asset Acquisitions and Diversification:
- Franco-Nevada added several new assets, including royalties on Cote Gold and the Arthur project, expanding its presence in North America.
- These acquisitions were part of the company's strategy to enhance its long-term growth profile and diversify its asset portfolio.

Cobre Panama and Arbitration:
- The company suspended arbitration proceedings related to Cobre Panama to align with Panamanian government efforts to resolve the mine's operations.
- This move was aimed at facilitating a positive resolution for the mine, which remains a significant potential upside for the company.