Franco-Nevada (NYSE: FNV) reported Q4 EPS of $0.59, $0.32 better than the analyst estimate of $0.27. Revenue for the quarter came in at $258.1 million versus the consensus estimate of $170.05 million.

Q4/2019 Financial Highlights

• 153,396 GEOs sold, a new record
• $258.1 million in revenue, a new record
• $113.3 million of Net Income, or $0.60 per share, a new record
• $110.8 million of Adjusted Net Income, or $0.59 per share, a new record
• $44.1 million in Cash Costs, or $287 per GEO sold
• $201.7 million of Adjusted EBITDA, or $1.07 per share, a new record

"I am pleased that Franco-Nevada is reporting its best results ever," stated David Harquail, CEO. "Record quarterly and annual results were achieved across all our important sales and financial metrics. Results benefited from the start of precious metals deliveries from Cobre Panama, strong production at other key assets and higher precious metals prices. Thanks to our diversified portfolio, we expect good overall growth in 2020 mostly driven by the continued Cobre Panama ramp-up despite a more conservative outlook for our energy assets. Franco-Nevada is generating substantial free cash flow and, post year-end, is now debt free. Franco-Nevada continues to be the gold investment that works."

2020 Guidance

In 2020, Franco-Nevada expects attributable royalty and stream sales to total 550,000 to 580,000 GEOs from its mining assets and revenue of $80 to $95 million from its energy assets. Of the royalty and stream sales from mining assets, 375,000 to 405,000 GEOs are expected from Franco-Nevada's various stream agreements. For 2020 guidance, silver, platinum and palladium metals have been converted to GEOs using assumed commodity prices of $1,500/oz Au, $17.00/oz Ag, $900/oz Pt and $2,000/oz Pd. The WTI oil price and Henry Hub natural gas price are assumed to average $45 per barrel and $2.00 per mcf, respectively. The Company estimates depletion expense of $260 to $290 million. 2020 guidance and 5‑year outlook below are based on public forecasts and other disclosure by the third-party owners and operators of our assets or our assessment thereof.

5-Year Outlook

Our outlook to 2024 assumes that the Cobre Panama project will have expanded its mill throughput capacity to 100 million tonnes per year starting in 2023. Using the same commodity price assumptions as were used for our 2020 guidance (see above) and assuming no other acquisitions, Franco-Nevada expects its existing portfolio to produce between 580,000 to 610,000 GEOs by 2024. Energy revenues are expected to range between $115 to $135 million, and assumes the remaining committed capital for the Royalty Acquisition Venture with Continental is funded.

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