Aug 12, 2026 earnings call — Strong quarterly results; tracking to upper guidance
Total GEOs sold increased 18% to 132,405 in the quarter.
Revenue $0.6B (est $0.6B) · EPS $1.81 (est $1.95)
Key quotes
"We had a strong second quarter with GEOs sold up 18% year-over-year due to higher production at Antapaccay, Antamina, and South Arturo, new contributions from the recently acquired Côté Gold and Casa Berardi interests and start of production at Valentine Gold."
"The WTI price has been volatile over the last few months, but remains above $80 a barrel."
"And fortunately, our total available capital stands at $4.3 billion."
Analyst Q&A 6
NPIs, Hemlo, Musselwhite, Guadalupe, margins
Q (Cosmos Chiu · CIBC): Analyst asked how to interpret volatile NPIs at Hemlo (down) and Musselwhite (up) and what to expect for Q3/Q4. He also asked about Hemlo's deferred production guidance, Guadalupe/Palmarejo exploration risk, and the rise in adjusted EBITDA margin.
A: Management said NPIs are volatile and Hemlo produced less from Interlake in Q2, but production should increase and they expect a slightly higher NPI in the second half. Musselwhite had a strong Q2 partly from a 2025 catch-up and they expect a very strong NPI for Musselwhite for 2026. On Guadalupe/Palmarejo they see good exploration results and expect production on their land to continue; on margins they said Franco-Nevada is a very high-margin business and recent deals have been more royalty deals with limited or no cost.
"So I would expect a slightly higher NPI for the second half of the year from Hemlo." — Sandip Rana (CFO)
2026 guidance and Cobre Panamá
Q (Lawson Winder · BofA): Analyst asked whether the company is tracking above the 2026 GEO guidance range given the midpoint, adding Cobre Panamá and higher oil prices, or if ex those items the portfolio is below the midpoint.
A: Management said they reviewed their numbers and noted the midpoint was 540. They said Cobre is 9 to 10 GEOs and energy prices could add GEOs, and they expect stronger performance at Candelaria, Côté, Valentine and others but weaker at South Arturo. Overall they said the business is tracking at the higher end of the range and it is possible to surpass the range but many things must happen, so they are comfortable with the provided range.
"So as we've said, it's going to be tracking at the higher end of the overall range." — Sandip Rana (CFO)
Deal pipeline size and timing
Q (Lawson Winder · BofA): Analyst asked about the pipeline given many small transactions in the quarter and whether there are large deals in the pipeline; he also asked if smaller deal flow would prompt a special dividend. He then asked about likely deal sizes and timing/urgency.
A: Management said they are active across a range of development phases and deal sizes and that the quarter's smaller deal sizes do not necessarily reflect the pipeline going forward. They see a number of project finance opportunities that fit their strategy and feel comfortable they can deploy a lot of capital before returning it. They added that larger transactions tend to be lumpier with longer timelines and they expect cadence to pick up later this year and into next year.
"I do feel comfortable at this stage that we're going to be able to deploy quite a bit of our capital before we have to think about any other ways to return it." — Eaun Gray
Cobre Panamá, energy volumes, New Prosperity, Candelaria timing
Q (Daniel Major · UBS): Analyst asked if Franco-Nevada had engaged with the Panamanian government on Cobre Panamá fiscal terms and whether any changes were being discussed. He also asked if energy unit volumes will pick up in H2 and into 2027, for catalysts at New Prosperity, and timing of the Candelaria stream step down.
A: Management said First Quantum is the operator and will engage with the government, and Franco-Nevada is not at that table and there are no discussions at this point about changes to fiscal terms. They said for U.S. energy plays you need about 6 months for drill programs to change, so they expect higher drill rates to translate to production late this year and into next, which could raise unit volumes. On New Prosperity they described a First Nations land use planning process that could lead to 20% First Nations ownership but with no timeline; and they estimate the Candelaria step down around the first half of 2027, subject to production.
"First Quantum is the operator there. So they are the party that will engage with the government here." — Paul Brink (CEO)
Energy revenue, iron ore, PGMs, Côté cash use, deal sizes
Q (Tanya Jakusconek · Scotiabank): Analyst asked why energy revenue looked light and whether timing shifted into Q3; she also asked about Vale iron ore expectations for H2, PGMs in Sudbury, whether proceeds from a potential IAMGOLD buyback of half the Côté NPI would be used for a special dividend, and whether non-precious deal sizes of $200 million to $500 million remain valid.
A: Management said energy revenue timing can lag because they receive actual well production data a few months later and they tend to be conservative in estimates. For iron ore they said the largest variance was their estimate of shipping rates and they expect results to be more flat in H2 absent maritime rate changes. On PGMs they said lower production from Stillwater and Sibanye impacted results. On the Côté buyback, they said if it occurs it would bring cash but it "wouldn't be any sort of special dividend of that nature" and they would consider increasing the regular dividend; and they confirmed the $200 million to $500 million range for non-precious deals remains valid while precious deals stay active.
"But if we did come to that conclusion, it wouldn't be any sort of special dividend of that nature." — Sandip Rana (CFO)
Karma update and LOMI/G Mining relationship
Q (Brian MacArthur · Raymond James Financial): Analyst asked for any update on Karma and whether its book value is low if the deal fails. He also asked whether the LOMI deal is separate from G Mining and if Franco-Nevada gets a right or option on a stream from that deal.
A: Management said there is no real update on Karma since the press release and they are pursuing remedies under the agreement in Ontario law; they believe the Burkinabè judgment is not valid and are seeking to have it vacated, and they are not carrying any book value for the asset. On LOMI, management said the move was to support a strong relationship with the Gignacs and Tintina investment, they backed the investment without obligation, and they hope it positions them well for a possible stream opportunity later, but there is no obligation or automatic right to a stream.
"We are continuing to pursue our remedies under the agreement, which is governed by Ontario law." — Lloyd Hong