Franco-Nevada reports increase in revenue but net income dips
Canadian-based miner Franco-Nevada Corp. (TSX, NYSE: FNV) announced its first quarter results for 2013.
The company reported an increase in revenue, although a dip in net income as a result of higher operating expenses.
At the end of March, its net income was $35.4 million, down from $46.8 million in the same 2012 period.
Its adjusted net income was $40.6 million for the first quarter, which was also a decline from last year's results of $43.6 million.
Operating expenses for the first quarter were $55.5 million compared to $51.3 million last year.
Precious metals provided a majority of revenue at 85% — gold made up 71% and PGMs 14%. North America and Australia generating 82% of that revenue — 33% Canada, 24% US, and 21% Mexico and 4% Australia.
For 2013, the company's guidance is 215,000 to 235,000 gold equivalent ounces. The company said its attributable and stream production for the three-month period was inline with its expectations.
Franco-Nevada also said its two new North American gold royalty acquisitions — Brucejack in BC and Golden Meadows in Idaho — have very good exploration upside potential.
Image courtesy Franco-Nevada