Franco-Nevada’s assets are spread across multiple jurisdictions, reducing geopolitical risk

Franco-Nevada’s assets are spread across multiple jurisdictions, reducing geopolitical risk. The company’s portfolio includes assets in North America, South America, Australia, and Africa. Franco-Nevada is continually seeking new royalty and streaming opportunities to grow its portfolio. The company has a track record of disciplined capital allocation, focusing on assets that offer long-term cash flow potential. Franco-Nevada’s business model is centered around acquiring royalties and streams, which provide the company with a percentage of revenue or production from a mining operation in exchange for an upfront payment. This model allows Franco-Nevada to benefit from production and profitability of a mine without being directly involved in its operation, thereby minimizing exposure to the risks associated with mining, such as cost overruns,   operational delays, and regulatory challenges. Franco-Nevada is focused on expanding its portfolio by acquiring new royalties and streams, particularly in the precious metals sector. The company targets high-quality assets with strong operators and long mine lives. While Gold remains the core focus, Franco-Nevada is also committed to diversifying its revenue streams through investments in silver, PGMs, and energy assets. Franco-Nevada has a strong track record of financial performance, characterized by robust cash flow generation, high margins, and a growing dividend. The company’s royalty and streaming agreements provide steady, predictable revenue, which has enabled it to maintain a strong balance sheet and avoid debt.