Franco-Nevada (FNV)

[winston]

not vested

Dec 12, 2020

Gold Stocks to Buy Right Now

Franco-Nevada is a streaming and royalty company. So it doesn't own and operate mines; instead, it buys gold and other metals like platinum from third-party miners at a predetermined percentage of their mine production. In exchange, it finances those miners upfront.

The deals are such that Franco-Nevada's purchase price of gold is significantly below spot prices. That's where the real appeal of investing in the company lies.

Franco-Nevada earns hefty margins, and can mint a lot of money when the price of gold rises. Just see the company's latest numbers -- its cost of sales for the nine months ended Sept. 30 was only $285.6 million against revenue worth $715.7 million.

That puts Franco-Nevada on track to deliver record revenue in a year when several mines closed because of the COVID-19 pandemic. Credit goes to a strong and diversified portfolio of streaming agreements with 51 producing mines.

One of them is First Quantum Minerals' Cobre Panama mine, which is rapidly expanding. It's expected to be the largest contributing mine to Franco-Nevada's sales by 2024.

Long-life agreements, a large asset base of mines under development, and royalties in oil and gas assets leave ample room for growth at Franco-Nevada. What's more, Franco-Nevada is also among the best gold dividend stocks, having increased its dividends for 13 consecutive years. That pretty much explains the stock's staggering returns in the past -- a trend I believe could continue for years to come.

Source: Motley Fool

[investar]

Definitely Top Tier & Top Quality in the gold investment space!

Also WPM.

[winston]

not vested

Franco-Nevada Corporation (TSE:FNV) Shares Could Be 29% Above Their Intrinsic Value Estimate

Key Insights

Franco-Nevada's estimated fair value is CA$148 based on 2 Stage Free Cash Flow to Equity

Current share price of CA$191 suggests Franco-Nevada is potentially 29% overvalued

Our fair value estimate is 34% lower than Franco-Nevada's analyst price target of US$225

Source: Simply Wall Street

https://finance.yahoo.com/news/franco-n ... 35414.html