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

Franco-Nevada Corp has demonstrated strong cash operating margins, allowing the company to generate significant cash flow and progressively increase dividends throughout the commodity cycle. The company experienced a substantial rise in revenue due to a 35% year-over-year increase in the average recognized gold price, with management anticipating higher annual production rates as assets like Cobre Panama come online. Additionally, its scalable operations and diversified portfolio, along with exploration upside, contribute to a favorable risk profile and positive prospects for revenue growth, further enhancing the company's cash flow and earnings potential in the coming years.

Franco-Nevada Corp is facing a critical decline in production across several key assets, with expectations for decreased output at Guadalupe-Palmarejo and Antapaccay, resulting in a forecasted drop in GEOs sold from 55.3k in 2024 to a range of 40k to 50k by 2025. Moreover, the anticipated completion of mining activities at Subika (Ahafo) by the end of 2025 will further exacerbate production shortfalls, contributing to a year-over-year revenue decline of 9% linked largely to the absence of production from Cobre Panama. The company's long-term outlook is further challenged by diminishing streams from Candelaria and Antapaccay, indicating potential ongoing revenue pressures as production volumes are expected to decline significantly into 2028 and beyond.