Franco-Nevada C (FNV) Stock Forecast & Price Target

Franco-Nevada Corp exhibits a strong cash operating margin, which allows for robust cash flow generation and the ability to increase dividends throughout the commodity cycle. The company's revenue outlook is bolstered by a significant rise in the average recognized gold price and expectations of increased production, particularly from its Cobre Panama asset, contributing to an overall positive growth trajectory. Additionally, the company's diversified and scalable portfolio, paired with exploration upside on its land positions, positions it favorably with a positively asymmetric risk profile and an approximate 4% positive impact on its net asset value.

Franco-Nevada Corp is projected to experience significant production declines across multiple key assets, with Guadalupe-Palmarejo expected to decrease production by 50% in 2029, and Antapaccay forecasted to drop to between 40,000 and 50,000 GEOs sold by 2024. Furthermore, the company's total GEOs sold saw a year-over-year decline of 21.2%, culminating in 120,063 GEOs, which is exacerbated by mine plan sequencing issues, particularly at Tasiast and Candelaria. Additionally, a revenue decline of 9% year-over-year is primarily attributed to a lack of production from Cobre Panama, suggesting a potential growth setback had this not coincided with the production drop.