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Franco-Nevada
Royalty trusts / Gold-focused royalty and streaming
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Company Overview
General information about the Franco-Nevada company
, its history, and its business operations.
Franco-Nevada Corporation is a gold-focused royalty and stream company with assets located in some of the world’s most prolific gold mining regions. The company was founded in 1983 and is headquartered in Toronto, Canada.
History:
Franco-Nevada was originally founded as Franco Nevada Mining Corporation Ltd. in 1983 by Pierre Lassonde and Seymour Schulich. The company was created as a spin-out of Newmont Mining Corporation’s Canadian subsidiary, and its initial focus was on acquiring gold royalties on properties in Nevada.
In 2002, Franco-Nevada was acquired by Newmont Mining Corporation, but in 2007 Lassonde and Schulich bought back the company and once again made it a public company under the name Franco-Nevada Corporation.
Business Operations:
Franco-Nevada’s business model involves acquiring royalties and streams on existing mine operations as well as financing new mine developments. Royalties are typically a percentage of the mine’s revenue, while streams are a percentage of the mine’s production at a fixed price. By using this model, Franco-Nevada is able to generate cash flow and profits without the risks and costs associated with operating a mine.
The company has a diverse portfolio of assets, with a focus on gold, but also including other precious and base metals, oil and gas, and other natural resources. Its assets are located all over the world, with a focus on stable jurisdictions such as North America, Australia, and Europe.
In addition to its royalty and stream investments, Franco-Nevada also has a small portfolio of oil and gas assets, which came from the 2016 acquisition of the company’s spin-off, Franco-Nevada Energy Corporation.
Today, Franco-Nevada is the leading gold-focused royalty and stream company, with a market capitalization of over $26 billion. Its success and growth have made it a top choice for investors looking for exposure to the precious metals industry.
Franco-Nevada Corporation is a gold-focused royalty and stream company with assets located in some of the world’s most prolific gold mining regions. The company was founded in 1983 and is headquartered in Toronto, Canada.
History:
Franco-Nevada was originally founded as Franco Nevada Mining Corporation Ltd. in 1983 by Pierre Lassonde and Seymour Schulich. The company was created as a spin-out of Newmont Mining Corporation’s Canadian subsidiary, and its initial focus was on acquiring gold royalties on properties in Nevada.
In 2002, Franco-Nevada was acquired by Newmont Mining Corporation, but in 2007 Lassonde and Schulich bought back the company and once again made it a public company under the name Franco-Nevada Corporation.
Business Operations:
Franco-Nevada’s business model involves acquiring royalties and streams on existing mine operations as well as financing new mine developments. Royalties are typically a percentage of the mine’s revenue, while streams are a percentage of the mine’s production at a fixed price. By using this model, Franco-Nevada is able to generate cash flow and profits without the risks and costs associated with operating a mine.
The company has a diverse portfolio of assets, with a focus on gold, but also including other precious and base metals, oil and gas, and other natural resources. Its assets are located all over the world, with a focus on stable jurisdictions such as North America, Australia, and Europe.
In addition to its royalty and stream investments, Franco-Nevada also has a small portfolio of oil and gas assets, which came from the 2016 acquisition of the company’s spin-off, Franco-Nevada Energy Corporation.
Today, Franco-Nevada is the leading gold-focused royalty and stream company, with a market capitalization of over $26 billion. Its success and growth have made it a top choice for investors looking for exposure to the precious metals industry.
What is special about the Franco-Nevada company?
1. Leader in the Royalty and Streaming Industry: Franco-Nevada is the largest and most successful precious metals royalty and streaming company in the world. It generates significant revenue and has a strong track record of growth and profitability.
2. Diversified Portfolio: The company has a diverse portfolio of royalties and streams, not only limited to precious metals but also including base metals, energy, and other commodities. This diversification reduces the risk of the company and ensures steady cash flow.
3. Long-Term Contracts: Franco-Nevada’s contracts typically have long-term duration, providing the company with stable and predictable revenue streams.
4. Financial Strength: The company has a strong balance sheet, with low debt and a significant amount of cash on hand. This financial strength allows Franco-Nevada to take advantage of growth opportunities and withstand market downturns.
5. Experienced Management Team: The company is led by an experienced management team with a proven track record in the industry. They have a deep understanding of the market and a strong network, allowing them to make strategic investments and partnerships.
6. Exposure to Low-Risk Jurisdictions: Franco-Nevada has a significant portion of its assets located in politically stable and mining-friendly countries, reducing the risk of disruptions to its operations.
7. Consistent Dividend Growth: The company has a history of delivering strong returns to its shareholders through regular dividend payments. It has increased its dividend every year since its IPO in 2007.
8. ESG Focus: Franco-Nevada has a strong commitment to environmental, social, and governance (ESG) practices, making it a socially responsible investment option for investors.
9. Innovative Business Model: The company’s business model of earning royalties and streams from established mining companies allows it to have a low-cost structure and high margins, making it a unique investment opportunity in the mining industry.
10. Strong Growth Potential: With a large and diverse portfolio of assets and a focus on identifying new investment opportunities, Franco-Nevada has the potential for significant growth in the future.
2. Diversified Portfolio: The company has a diverse portfolio of royalties and streams, not only limited to precious metals but also including base metals, energy, and other commodities. This diversification reduces the risk of the company and ensures steady cash flow.
3. Long-Term Contracts: Franco-Nevada’s contracts typically have long-term duration, providing the company with stable and predictable revenue streams.
4. Financial Strength: The company has a strong balance sheet, with low debt and a significant amount of cash on hand. This financial strength allows Franco-Nevada to take advantage of growth opportunities and withstand market downturns.
5. Experienced Management Team: The company is led by an experienced management team with a proven track record in the industry. They have a deep understanding of the market and a strong network, allowing them to make strategic investments and partnerships.
6. Exposure to Low-Risk Jurisdictions: Franco-Nevada has a significant portion of its assets located in politically stable and mining-friendly countries, reducing the risk of disruptions to its operations.
7. Consistent Dividend Growth: The company has a history of delivering strong returns to its shareholders through regular dividend payments. It has increased its dividend every year since its IPO in 2007.
8. ESG Focus: Franco-Nevada has a strong commitment to environmental, social, and governance (ESG) practices, making it a socially responsible investment option for investors.
9. Innovative Business Model: The company’s business model of earning royalties and streams from established mining companies allows it to have a low-cost structure and high margins, making it a unique investment opportunity in the mining industry.
10. Strong Growth Potential: With a large and diverse portfolio of assets and a focus on identifying new investment opportunities, Franco-Nevada has the potential for significant growth in the future.
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