Franco-Nevada Corp. said March 7 that it swung to a net profit of US$43.5 million in the fourth quarter of 2017, from a loss of US$4.5 million in the same period a year ago.
The Toronto-based company's total revenue increased 7.7% year over year to US$167.2 million. However, it sold 119,839 gold equivalent ounces in the three-month period, lower than its 121,910 gold equivalent ounces sold in the comparable prior-year quarter, due to 16.1% and 31.6% lower gold equivalent ounces from its U.S. and Canada streams, respectively.
During the quarter, Franco-Nevada sourced 89.2% of its revenue from precious metals, with 82.1% from projects in Latin America, the U.S. and Canada.
For 2017, net income increased 59% to US$194.7 million, from US$122.2 million.
Total revenue for the year ended Dec. 31, 2017, increased 10.6% to US$675.0 million as a result of a record 497,745 gold equivalent ounces sold in the 12-month period, reflecting a 7.2% increase and meeting the higher end of its guidance.
In February, the company declared a dividend of 23 US cents per share for the fourth quarter of 2017, up from 22 cents per share recorded in the same quarter of 2016.
This year, the company expects attributable royalty and stream production from its mineral assets to total between 460,000 and 490,000 gold equivalent ounces, with revenue of between US$50 million and US$60 million from its oil and gas assets.
