(All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
Kinross Gold Corporation (TSX:K; NYSE:KGC) ("Kinross" and the "Company") announced today that it has completed the sale of all its interest in the Chirano mine in Ghana to Asante Gold Corporation (CSE: ASE; FSE: 1A9; GSE:ASG) ("Asante") for a total consideration of $225 million in cash and shares.
"With the completion of the sale of Chirano, we are focused on generating value from our rebalanced portfolio, with approximately 70% of our production in 2022 expected from our mines in the Americas," said J. Paul Rollinson, Kinross President and CEO. "We would like to thank our employees at Chirano for their hard work and contributions to the Company. The team at Chirano exemplifies our commitments to safety, environmental stewardship and generating benefits for local communities. We are also pleased we are able to continue to participate in Chirano's success through our shareholdings in Asante, who also owns the neighbouring Bibiani mine, which recently completed its first gold pour after restarting operations."
Kinross received $60 million in cash and 34,962,584 Asante common shares ("Asante Shares") having a total value of $36.2 million based on an Asante Share price of $1.04 (CAD$1.34) per share, which is the volume-weighted average price of each Asante Share for the 30 trading days ending August 9, 2022. The Company has agreed that it will hold its Asante Shares, which represent 9.9% of ownership in Asante, for at least 12 months following the close of the transaction.
Kinross will also receive a total deferred payment of $128.8 million in cash, with $55 million payable on the six-month anniversary of closing, and $36.9 million payable on each of the one-year and two-year anniversaries of closing. While the transaction payment terms were amended from the previous announcement on April 25, 2022, the total purchase price of $225 million remains the same. The deferred payments are being secured by guarantees and pledges of downstream entities that own the Chirano mine.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus on delivering value is based on our core principles of responsible mining, operational excellence, disciplined growth and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
Cautionary statements on forward-looking information
All statements, other than statements of historical fact, contained in this news release, including any information as to the future financial or operating performance of Kinross, constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the "safe harbor" provisions under the United States Private Securities Litigation Reform Act of 1995 and are based on the expectations, estimates and projections of management as of the date of this news release, unless otherwise stated. Forward-looking statements contained in this presentation include, without limitation, statements with respect the payment of deferred consideration over the next two years; the geographic location of Kinross' future gold production. Phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. The words "estimate", "expects" or "goal" or variations of or similar such words and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. Forward-looking statements are, necessarily, based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Kinross contained in this news release, which may prove to be incorrect, include, but are not limited to: (i) that the deferred payments will be made on the timeline set forth in the definitive transaction agreement, or at all; (ii) that, in the event any deferred payment is not paid to Kinross, it will be able to enforce its rights under the relevant agreements in a manner consistent with its expectations; and (iii) that the value of the Asante Shares will be equal to or higher than their acquisition price at the end of the 12-month hold period. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, including the risk that the sale transaction will not be completed for any reason and that the secured installment payments are actually paid to Kinross. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by this cautionary statement and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the "Risk Analysis" section of our MD&A for the year ended December 31, 2021 and the Annual Information Form dated March 31, 2022. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Source: Kinross Gold Corporation
News Provided by GlobeNewswire via QuoteMedia
Portfolio Outperforms
(in U.S. dollars unless otherwise noted)
"We are proud to report record quarterly and half-year results on many financial metrics," stated Paul Brink CEO. "The low-risk nature of our business is most pronounced in today's inflationary environment. Our top-line precious metal stream and royalty interests helped generate our highest margins since starting streaming. Our Energy assets performed well and are the driver behind our record revenues. We are pleased to add exposure to the construction-ready Tocantinzinho gold project and to have received good organic growth news from several of our assets during the quarter, in particular the further expansion of the Detour Lake mine. Franco- Nevada is debt-free and is growing its cash balances."
H1 2022 | Q2 2022 | |||||||
H1 results | vs | Q2 results | vs | |||||
H1 2021 | Q2 2021 | |||||||
Total GEOs 1 sold (including Energy) | 369,666 GEOs | +0 % | 191,052 GEOs | -1 % | ||||
Precious Metal GEOs 1 sold | 260,201 GEOs | -11 % | 131,574 GEOs | -10 % | ||||
Revenue | $691.1 million | +5 % | $352.3 million | +1 % | ||||
Net income | $378.5 million ($1.98/share) | +9 % | $196.5 million ($1.03/share) | +12 % | ||||
Adjusted Net Income 2 | $373.0 million ($1.95/share) | +9 % | $195.8 million ($1.02/share) | +7 % | ||||
Adjusted EBITDA 2 | $587.8 million ($3.07/share) | +6 % | $301.2 million ($1.57/share) | +4 % | ||||
Margin 2 | 85.1 % | +1 % | 85.5 % | +2 % | ||||
Strong Financial Position
Sector-Leading ESG
Diverse, Long-Life Portfolio
Growth and Optionality
Quarterly revenue and GEOs sold by commodity | |||||||||||
Q2 2022 | Q2 2021 | ||||||||||
GEOs Sold | Revenue | GEOs Sold | Revenue | ||||||||
# | (in millions) | # | (in millions) | ||||||||
PRECIOUS METALS | |||||||||||
Gold | 102,714 | $ | 190.7 | 109,064 | $ | 194.9 | |||||
Silver | 19,456 | 35.8 | 24,884 | 45.0 | |||||||
PGMs | 9,404 | 17.3 | 11,989 | 22.0 | |||||||
131,574 | $ | 243.8 | 145,937 | $ | 261.9 | ||||||
DIVERSIFIED | |||||||||||
Iron ore | 7,769 | $ | 14.6 | 20,415 | $ | 36.9 | |||||
Other mining assets | 1,322 | 2.4 | 504 | 1.0 | |||||||
Oil | 25,342 | 46.2 | 13,660 | 25.3 | |||||||
Gas | 20,939 | 37.9 | 9,656 | 17.9 | |||||||
NGL | 4,106 | 7.4 | 2,207 | 4.1 | |||||||
59,478 | $ | 108.5 | 46,442 | $ | 85.2 | ||||||
191,052 | $ | 352.3 | 192,379 | $ | 347.1 | ||||||
Year-to-date revenue and GEOs sold by commodity | |||||||||||
H1 2022 | H1 2021 | ||||||||||
GEOs Sold | Revenue | GEOs Sold | Revenue | ||||||||
# | (in millions) | # | (in millions) | ||||||||
PRECIOUS METALS | |||||||||||
Gold | 202,545 | $ | 378.2 | 216,069 | $ | 384.9 | |||||
Silver | 40,857 | 76.9 | 52,350 | 92.7 | |||||||
PGMs | 16,799 | 31.5 | 23,487 | 41.5 | |||||||
260,201 | $ | 486.6 | 291,906 | $ | 519.1 | ||||||
DIVERSIFIED | |||||||||||
Iron ore | 18,262 | $ | 33.9 | 23,216 | $ | 41.9 | |||||
Other mining assets | 1,885 | 3.5 | 1,309 | 2.6 | |||||||
Oil | 45,518 | 85.2 | 28,585 | 51.2 | |||||||
Gas | 36,081 | 67.4 | 18,134 | 32.3 | |||||||
NGL | 7,719 | 14.5 | 4,966 | 8.9 | |||||||
109,465 | $ | 204.5 | 76,210 | $ | 136.9 | ||||||
369,666 | $ | 691.1 | 368,116 | $ | 656.0 | ||||||
In Q2 2022, we earned $352.3 million in revenue, up 1.5% from Q2 2021. The growth was primarily driven by higher realized oil and gas prices from our Energy assets. These more than offset the decrease in Precious Metal revenue and resulted in 69.2% of our revenue being sourced from Precious Metal assets (54.1% gold, 10.2% silver, 4.9% PGM). Revenue was sourced 91.7% from the Americas (25.3% South America , 24.1% Central America & Mexico , 25.1% U.S. and 17.2% Canada ).
During the quarter, Franco-Nevada was named on the Corporate Knights' 2022 list of the Best 50 Corporate Citizens in Canada . As part of the Tocantinzinho transaction, we committed to $1 million of environmental and community-support programs over 4 years and we continue to expand our community engagement and contributions with existing partners.
Precious Metal assets: GEOs from our Precious Metal assets were 131,574, compared to 145,937 GEOs sold in Q2 2021. Higher contributions from Hemlo , Gold Quarry and Subika (Ahafo) were more than offset by lower deliveries from Antamina, Guadalupe, Goldstrike and Stillwater .
South America :
Central America & Mexico :
U.S.:
Canada :
Rest of World:
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $108.5 million in revenue, up from $85.2 million in Q2 2021. The increase is primarily due to higher realized oil and gas prices relating to our Energy assets.
Iron Ore:
Energy:
Franco- Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of $0.32 per share. The dividend will be paid on September 29, 2022 to shareholders of record on September 15, 2022 (the "Record Date"). The Canadian dollar equivalent is to be determined based on the daily average rate posted by the Bank of Canada on the Record Date. 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.
The Company has a Dividend Reinvestment Plan (the "DRIP"). Participation in the DRIP is optional. The Company will issue additional common shares through treasury at a 3% discount to the Average Market Price, as defined in the DRIP. However, the Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. The DRIP and enrollment forms are available on the Company's website at www.franco-nevada.com . Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent's self-service web portal at www.investorcentre.com/franco-nevada . Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP, subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the Company to determine whether they satisfy the necessary conditions to participate in the DRIP.
This press release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov .
The complete unaudited Condensed Consolidated Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com , on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .
Management will host a conference call tomorrow, Thursday, August 11, 2022 at 10:00 a.m. Eastern Time to review Franco‑Nevada's Q2 2022 results.
Interested investors are invited to participate as follows:
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco- Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco- Nevada is the gold investment that works.
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, audits being conducted by the CRA, the expected exposure for current and future assessments and available remedies, and the remedies relating to and consequences of the ruling of the Supreme Court of Panama in relation to the Cobre Panama project, expected future performance of the Tocantinzinho project, the Stream and the Term Loan, and capital requirements, construction and development plans, production estimates and production costs estimates relating to the Tocantinzinho project. In addition, statements relating to reserves and resources, gold equivalent ounces ("GEOs") and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources, GEOs or mine life will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of the COVID-19 (coronavirus) pandemic; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or the Company's exposure as a result thereof. Franco- Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein .
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov . The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
Reconciliation of Non-GAAP Financial Measures:
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(expressed in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 196.5 | $ | 175.3 | $ | 378.5 | $ | 346.8 | ||||||||
Impairment and charges | — | 7.5 | — | 7.5 | ||||||||||||
Foreign exchange loss (gain) and other (income) expenses | 0.4 | 1.2 | (5.8) | 1.3 | ||||||||||||
Finance income related to repayment of Noront loan | (2.2) | — | (2.2) | — | ||||||||||||
Tax effect of adjustments | 1.1 | (1.4) | 2.5 | (1.5) | ||||||||||||
Other tax related adjustments: | ||||||||||||||||
Recognition of previously unrecognized deferred tax assets | — | — | — | (10.6) | ||||||||||||
Adjusted Net Income | $ | 195.8 | $ | 182.6 | $ | 373.0 | $ | 343.5 | ||||||||
Basic weighted average shares outstanding | 191.5 | 191.0 | 191.4 | 191.0 | ||||||||||||
Adjusted Net Income per share | $ | 1.02 | $ | 0.96 | $ | 1.95 | $ | 1.80 | ||||||||
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(expressed in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 196.5 | $ | 175.3 | $ | 378.5 | $ | 346.8 | ||||||||
Income tax expense | 36.7 | 29.4 | 72.7 | 49.2 | ||||||||||||
Finance expenses | 0.8 | 1.1 | 1.7 | 1.9 | ||||||||||||
Finance income | (2.8) | (1.7) | (3.5) | (2.4) | ||||||||||||
Depletion and depreciation | 69.6 | 77.2 | 144.2 | 148.4 | ||||||||||||
Impairment charges | - | 7.5 | - | 7.5 | ||||||||||||
Foreign exchange loss (gain) and other (income) expenses | 0.4 | 1.2 | (5.8) | 1.3 | ||||||||||||
Adjusted EBITDA | $ | 301.2 | $ | 290.0 | $ | 587.8 | $ | 552.7 | ||||||||
Basic weighted average shares outstanding | 191.5 | 191.0 | 191.4 | 191.0 | ||||||||||||
Adjusted EBITDA per share | $ | 1.57 | $ | 1.52 | $ | 3.07 | $ | 2.89 | ||||||||
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(expressed in millions, except Margin) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Adjusted EBITDA | $ | 301.2 | $ | 290.0 | $ | 587.8 | $ | 552.7 | ||||||||
Revenue | 352.3 | 347.1 | 691.1 | 656.0 | ||||||||||||
Margin | 85.5 | % | 83.5 | % | 85.1 | % | 84.3 | % | ||||||||
FRANCO- NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)
At June 30, | At December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Cash and cash equivalents (Note 4) | $ | 910.6 | $ | 539.3 | ||||
Receivables | 144.3 | 119.8 | ||||||
Loan receivable (Note 5) | — | 39.7 | ||||||
Prepaid expenses and other (Note 6) | 47.9 | 52.6 | ||||||
Current assets | $ | 1,102.8 | $ | 751.4 | ||||
Royalty, stream and working interests, net (Note 7) | $ | 4,998.2 | $ | 5,149.3 | ||||
Investments (Note 5) | 213.2 | 235.9 | ||||||
Deferred income tax assets | 46.5 | 49.4 | ||||||
Other assets (Note 8) | 49.8 | 23.9 | ||||||
Total assets | $ | 6,410.5 | $ | 6,209.9 | ||||
LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 34.9 | $ | 33.6 | ||||
Current income tax liabilities | 7.5 | 9.6 | ||||||
Current liabilities | $ | 42.4 | $ | 43.2 | ||||
Deferred income tax liabilities | $ | 135.7 | $ | 135.4 | ||||
Other liabilities | 5.7 | 6.1 | ||||||
Total liabilities | $ | 183.8 | $ | 184.7 | ||||
SHAREHOLDERS' EQUITY | ||||||||
Share capital (Note 16) | $ | 5,657.0 | $ | 5,628.5 | ||||
Contributed surplus | 17.9 | 16.1 | ||||||
Retained earnings | 740.8 | 484.9 | ||||||
Accumulated other comprehensive loss | (189.0) | (104.3) | ||||||
Total shareholders' equity | $ | 6,226.7 | $ | 6,025.2 | ||||
Total liabilities and shareholders' equity | $ | 6,410.5 | $ | 6,209.9 | ||||
The condensed consolidated financial statements and accompanying notes can be found in our Q2 2022 Quarterly Report available on our website
FRANCO- NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(in millions of U.S. dollars and shares, except per share amounts)
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue (Note 10) | $ | 352.3 | $ | 347.1 | $ | 691.1 | $ | 656.0 | ||||||||
Costs of sales | ||||||||||||||||
Costs of sales (Note 11) | $ | 45.5 | $ | 47.3 | $ | 89.1 | $ | 87.9 | ||||||||
Depletion and depreciation | 69.6 | 77.2 | 144.2 | 148.4 | ||||||||||||
Total costs of sales | $ | 115.1 | $ | 124.5 | $ | 233.3 | $ | 236.3 | ||||||||
Gross profit | $ | 237.2 | $ | 222.6 | $ | 457.8 | $ | 419.7 | ||||||||
Other operating expenses (income) | ||||||||||||||||
General and administrative expenses | $ | 5.8 | $ | 5.4 | $ | 11.4 | $ | 9.6 | ||||||||
Share-based compensation expenses (Note 12) | — | 5.0 | 4.3 | 7.0 | ||||||||||||
Impairment charges | — | 7.5 | — | 7.5 | ||||||||||||
Gain on sale of gold bullion | (0.2) | (0.6) | (1.5) | (1.2) | ||||||||||||
Total other operating expenses | $ | 5.6 | $ | 17.3 | $ | 14.2 | $ | 22.9 | ||||||||
Operating income | $ | 231.6 | $ | 205.3 | $ | 443.6 | $ | 396.8 | ||||||||
Foreign exchange (loss) gain and other income (expenses) | $ | (0.4) | $ | (1.2) | $ | 5.8 | $ | (1.3) | ||||||||
Income before finance items and income taxes | $ | 231.2 | $ | 204.1 | $ | 449.4 | $ | 395.5 | ||||||||
Finance items (Note 14) | ||||||||||||||||
Finance income | $ | 2.8 | $ | 1.7 | $ | 3.5 | $ | 2.4 | ||||||||
Finance expenses | (0.8) | (1.1) | (1.7) | (1.9) | ||||||||||||
Net income before income taxes | $ | 233.2 | $ | 204.7 | $ | 451.2 | $ | 396.0 | ||||||||
Income tax expense (Note 15) | 36.7 | 29.4 | 72.7 | 49.2 | ||||||||||||
Net income | $ | 196.5 | $ | 175.3 | $ | 378.5 | $ | 346.8 | ||||||||
Other comprehensive (loss) income, net of taxes | ||||||||||||||||
Items that may be reclassified subsequently to profit and loss: | ||||||||||||||||
Currency translation adjustment | $ | (49.2) | $ | 17.7 | $ | (27.0) | $ | 27.1 | ||||||||
Items that will not be reclassified subsequently to profit and loss: | ||||||||||||||||
(Loss) gain on changes in the fair value of equity investments | ||||||||||||||||
at fair value through other comprehensive income ("FVTOCI"), | ||||||||||||||||
net of income tax (Note 5) | (76.8) | 46.7 | (57.1) | 65.3 | ||||||||||||
Other comprehensive (loss) income, net of taxes | $ | (126.0) | $ | 64.4 | $ | (84.1) | $ | 92.4 | ||||||||
Comprehensive income | $ | 70.5 | $ | 239.7 | $ | 294.4 | $ | 439.2 | ||||||||
Earnings per share (Note 17) | ||||||||||||||||
Basic | $ | 1.03 | $ | 0.92 | $ | 1.98 | $ | 1.82 | ||||||||
Diluted | $ | 1.02 | $ | 0.92 | $ | 1.97 | $ | 1.81 | ||||||||
Weighted average number of shares outstanding (Note 17) | ||||||||||||||||
Basic | 191.5 | 191.0 | 191.4 | 191.0 | ||||||||||||
Diluted | 191.9 | 191.4 | 191.8 | 191.3 | ||||||||||||
The condensed consolidated financial statements and accompanying notes can be found in our Q2 2022 Quarterly Report available on our website
FRANCO- NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
For the six months ended | ||||||||
June 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 378.5 | $ | 346.8 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depletion and depreciation | 144.2 | 148.4 | ||||||
Share-based compensation expenses | 3.0 | 3.0 | ||||||
Impairment charges | — | 7.5 | ||||||
Unrealized foreign exchange loss | — | 0.3 | ||||||
Deferred income tax expense | 13.2 | 11.9 | ||||||
Other non-cash items | (6.0) | (2.4) | ||||||
Acquisition of gold bullion | (23.0) | (21.2) | ||||||
Proceeds from sale of gold bullion | 26.5 | 17.5 | ||||||
Changes in other assets | (26.7) | (5.7) | ||||||
Operating cash flows before changes in non-cash working capital | $ | 509.7 | $ | 506.1 | ||||
Changes in non-cash working capital: | ||||||||
Increase in receivables | $ | (24.5) | $ | (22.3) | ||||
Decrease (increase) in prepaid expenses and other | 2.6 | (6.3) | ||||||
Increase (decrease) in current liabilities | 0.1 | (8.0) | ||||||
Net cash provided by operating activities | $ | 487.9 | $ | 469.5 | ||||
Cash flows used in investing activities | ||||||||
Acquisition of royalty, stream and working interests | $ | (12.8) | $ | (733.5) | ||||
Acquisition of investments | (47.4) | — | ||||||
Acquisition of energy well equipment | (0.6) | (0.7) | ||||||
Proceeds from repayment of loan receivable | 42.7 | — | ||||||
Proceeds from sale of investments | 1.7 | 12.7 | ||||||
Net cash used in investing activities | $ | (16.4) | $ | (721.5) | ||||
Cash flows used in financing activities | ||||||||
Payment of dividends | $ | (101.4) | $ | (87.0) | ||||
Proceeds from draw of revolving credit facilities | — | 150.0 | ||||||
Repayment of revolving credit facilities | — | (150.0) | ||||||
Credit facility amendment costs | — | (0.1) | ||||||
Proceeds from exercise of stock options | 5.2 | 0.3 | ||||||
Net cash used in financing activities | $ | (96.2) | $ | (86.8) | ||||
Effect of exchange rate changes on cash and cash equivalents | $ | (4.0) | $ | 2.3 | ||||
Net change in cash and cash equivalents | $ | 371.3 | $ | (336.5) | ||||
Cash and cash equivalents at beginning of period | $ | 539.3 | $ | 534.2 | ||||
Cash and cash equivalents at end of period | $ | 910.6 | $ | 197.7 | ||||
Supplemental cash flow information: | ||||||||
Dividend income received | $ | 8.2 | $ | 13.9 | ||||
Interest and standby fees paid | $ | 1.3 | $ | 1.3 | ||||
Income taxes paid | $ | 59.3 | $ | 51.3 | ||||
The condensed consolidated financial statements and accompanying notes can be found in our Q2 2022 Quarterly Report available on our website
View original content: https://www.prnewswire.com/news-releases/franco-nevada-reports-record-q2-results-301603802.html
SOURCE Franco-Nevada Corporation
View original content: http://www.newswire.ca/en/releases/archive/August2022/10/c1697.html
News Provided by Canada Newswire via QuoteMedia
Key Points
Figure 1 – Maiden surface exploration targeting mineralisation extensions to depth of up to ~700m below surface
Highlights include 20.53g/t in LABS-22-02, which extends the Boucher lode by a significant 375m down- dip.
This follows the previously reported result of 44.12g/t in LABS-22-01, which was 125m down dip of the currently defined Front-West lode (Refer ASX Announcement 25 July 2022).
Drilling of phase one is now successfully complete, with 3,135m drilled across 5 holes in just 44 days, under budget and with no safety incidents.
Assays are pending for LABS-22-04 and LABS-22-05.
Quartz and pyritic mineralisation characteristic to Labyrinth has been observed across multiple lodes, with results confirming the mineralisation extends up to 375m down dip and to a depth of ~550m below surface, remaining open at depth and along strike.
Labyrinth is on track to publish its maiden JORC Resource next month. These latest assays and those pending will form part of a subsequent Resource update.
Labyrinth Chief Executive Matt Nixon said: “These are outstanding results which highlight the scope for substantial growth in the deposit, both along strike and at depth.
“We are in the throes of finalising our maiden JORC Resource and already we have established substantial mineralisation which sits outside these parameters, paving the way for a subsequent Resource update.
“We have barely scratched the surface at Labyrinth compared with the drilling completed at other major deposits in the Abitibi region. The scale of these endowments shows the upside we have at Labyrinth”.
Click here for the full ASX Release
This article includes content from Labyrinth Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
A maiden Inferred JORC Mineral Resource of 9.9Mt @ 1.14% Li2O and 49 Ta2O5 ppm^ was previously announced on 17 February 2022. The 5km x 1.5km pegmatite system at Manna is open in all directions. A Mineral Resource update for the Manna Lithium Project is expected following the drilling program and metallurgical test work in Q4 2022.
Breaker retains a 20% free-carried interest in the Manna Lithium Project with Global Lithium carrying all costs and expenditure to completion of a positive bankable feasibility study (BFS). Breaker is also entitled to milestone payments of up to $20 million.
On behalf of the Board of Directors,
Tom Sanders
Managing Director
Click here for the full ASX Release
This article includes content from Breaker Resources NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.