Franco-Nevada Reports First Quarter 2015 Results, Increases Quarterly Dividend

Franco-Nevada Corporation (TSX:FNV,NYSE:FNV) announced its financial results for the 2015 first quarter, which showed a net income of $19.2 million or $0.12 per share, an adjusted net income of $22.9 million or $0.15 per share with adjusted EBITDA of $83.3 million or $0.53 per share. The board also announced a quarterly dividend of $0.21 per share, a 0.5 percent increase from the last quarterly dividend.

As quoted in the press release:

For first quarter 2015, revenue was earned 93 percent from precious metals (84 percent gold and 9 percent PGM) and 75 percent from the Americas (16 percent U.S., 20 percent Canada and 39 percent Latin America).  Costs and expenses were impacted by higher depletion expense and costs of sales due to the recent Candelaria acquisition. Oil & gas production levels were stable quarter over quarter with the associated oil & gas revenue decreasing significantly due to lower average oil & gas prices in Q1 2015 and carry-over capital from 2014, related to the Weyburn Unit NRI. Cash provided by operating activities before changes to working capital was $77.9 million.

Franco-Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of $0.21 per share. The dividend is a 5.0% increase from the previous $0.20 per share quarterly dividend and marks the eighth consecutive annual dividend increase for Franco-Nevada shareholders. The dividend will be paid on June 25, 2015 to shareholders of record on June 11, 2015. The Canadian dollar equivalent is determined based on the noon rate posted by the Bank of Canada on May 5, 2015. Under Canadian tax legislation, Canadian resident individuals who receive “eligible dividends” are entitled to an enhanced gross-up and dividend tax credit on such dividends.

David Harquail, president and CEO of Franco-Nevada, commented:

Franco-Nevada’s mineral assets continue to deliver dependable results with our new asset, Candelaria, having a strong first quarter. However lower average oil prices impacted our revenue. Our overall portfolio is diverse with high margin assets that continue to deliver strong operating cash flows. This has allowed us to continue the tradition of increasing our dividend each year. Our previously announced 5% dividend increase has now been formally declared for the second quarter of 2015. Franco-Nevada remains debt free with $671.3 million in working capital at quarter end. We expect to continue to grow our portfolio with further investments.

Click here to read the full Franco-Nevada Corporation (TSX:FNV,NYSE:FNV) press release.