Information contained on this page is provided by companies via press release distributed through PR Newswire, an independent third-party content provider. PR Newswire, WorldNow and this Station make no warranties or representations in connection therewith.
SOURCE Franco-Nevada Corporation
TORONTO, March 19, 2013 /PRNewswire/ - Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV) today reported its financial results for the three and twelve months ended December 31, 2012. Financial results are prepared in accordance with International Financial Reporting Standards ("IFRS") and are expressed in U.S. dollars (unless otherwise noted). The Company's Consolidated Annual Financial Statements and Management's Discussion and Analysis can be found on Franco-Nevada's website at www.franco-nevada.com.
|Selected Financial Information|
|(in millions of U.S. dollars, except per share amounts)||
|Operating income (loss)||(21.8)||(107.7)||138.4||28.0|
|Net income (loss)||(33.1)||(105.4)||102.6||(6.8)|
|Basic earnings (loss) per share||$||(0.23)||$||(0.80)||$||0.72||$||(0.05)|
|Dividends paid per share||$||0.15||$||0.12||$||0.54||$||0.32|
|Adjusted EBITDA(1) per share||$||0.65||$||0.72||$||2.43||$||2.61|
|Adjusted Net Income(2)||$||47.0||$||40.8||$||171.0||$||136.0|
|Adjusted Net Income(2) per share||$||0.32||$||0.31||$||1.19||$||1.08|
|As at December 31,|
|Cash and cash equivalents||$||631.7||$||794.1|
|Total Shareholders' Equity||$||3,149.1||$||2,834.2|
|(1)||Adjusted EBITDA is defined by the Company as net income (loss) excluding income tax expense, finance income and costs, foreign exchange gains/losses, gains/losses on the sale of investments, income/losses from equity investments, depletion and depreciation and impairment charges related to royalties, streams, working interests and investments. See Non-IFRS Measures at the end of this press release.|
|(2)||Adjusted Net Income is defined by the Company as net income (loss) excluding foreign exchange gains/losses, gains/losses on the sale of investments, impairment charges related to royalties, streams, working interests and investments, unusual non-recurring items, and the impact of taxes on all these items. See Non-IFRS Measures at the end of this press release.|
This press release contains forward-looking statements. Reference should be made to the Cautionary Statement on Forward Looking Information at the end of this press release.
David Harquail, President and CEO, commented:
"This is our fifth full-year set of financial results since Franco-Nevada was reborn as a public company with our IPO in late 2007. The last five years have proven that our business model, with its focus on gold royalties and streams, can create tremendous shareholder value. We experienced our best year in 2012 with record Revenues and Adjusted Net Income. Our Cobre Panama and Weyburn transactions in 2012 have added cornerstone assets with expected lives of 40 or more years. We recorded an impairment on our Arctic Gas resource assets to reflect the current markets.
We expect our existing portfolio will continue to generate a growing number of ounces over the next five years. We continue to see good opportunities to further supplement this growth with further investments and, with our recently expanded credit facility, we are well-positioned with approximately $1.4 billion of capital available for further investments."
Portfolio Highlights & Outlook
Details of the individual revenue contributions by asset and commodity can be found in our Management's Discussion and Analysis, Annual Information Form and Form 40-F available on our web site.
2012 Portfolio Highlights
Five Year Outlook (2017)
Our five year outlook is based upon the respective operators' public projections for each asset. Using the same commodity price assumptions as for 2013 and assuming no other acquisitions, the Company expects its existing portfolio to generate by 2017 between 300,000 to 325,000 gold equivalent ounces and $70 to $80 million in oil & gas revenues. This outlook is also based on the following assumptions:
Costs and expenses
Statement of Financial Position
Shareholder Information and Investor Day
The complete Annual Consolidated Financial Statements and Management's Discussion and Analysis will be available on Franco-Nevada's website at www.franco-nevada.com and on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
An Investor Day and conference call is planned for tomorrow, Wednesday, March 20, 2013, at 10:00 a.m. Eastern Time to discuss the Q4 2012 results as well as provide further background and details on the Company's asset portfolio and outlook.
Interested investors are invited to participate as follows:
Franco-Nevada is a gold focused royalty and stream company. The Company has a diversified portfolio of cash-flow producing assets and interests in some of the largest new gold development and exploration projects in the world. Its business model benefits from rising commodity prices and new discoveries while limiting exposure to operating and capital cost inflation. Franco-Nevada has substantial cash with no debt and is generating cash flow from its portfolio that is being used to expand its portfolio and pay monthly dividends. Franco-Nevada's common shares trade under the symbol FNV on both the Toronto and New York stock exchanges.
FORWARD LOOKING STATEMENTS
Certain information contained in 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 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, 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. In addition, statements (including data in tables) relating to reserves and resources are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates 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", "budget", "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 & 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 US dollar, changes in national and local government legislation, including permitting and licensing regimes and taxation policies, regulations and 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, 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 PFIC status, 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, rate and timing of production differences from resource estimates, 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 or civil unrest, 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 adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest, 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 and readers are cautioned that forward looking statements are not guarantees of future performance. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, readers 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 the "Risk Factors" section of Franco-Nevada's Annual Information Form, as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on SEDAR at www.sedar.com and Franco-Nevada's most recent Form 40-F filed with the U.S. Securities and Exchange Commission on EDGAR at 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.
NON-IFRS MEASURES: Adjusted Net Income and Adjusted EBITDA are intended to provide additional information only and do not have any standardized meaning prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRS measures, please see below or the Company's current MD&A disclosure found on the Company's website and on SEDAR and on EDGAR.
Non-IFRS Measures Reconciliation
Three months ended
|(in millions except per share amounts)||2012||2011||2012||2011|
|Net Income (Loss)||$||(33.1)||$||(105.4)||$||102.6||$||(6.8)|
|Income tax expense||10.9||4.5||52.3||45.9|
|Depletion and depreciation||32.8||33.2||126.7||130.6|
|Impairment on stream interests||74.1||151.2||74.1||151.2|
|Impairment on investments||8.6||17.5||8.6||17.5|
|Foreign exchange gains/losses and other expenses||1.6||(3.6)||(8.0)||3.1|
|Loss from equity investee||-||-||-||1.7|
|Gain on investments||-||(2.0)||-||(13.9)|
|Basic Weighted Average Shares Outstanding||145.3||131.3||143.1||125.4|
|Adjusted EBITDA per share||$||0.65||$||0.72||$||2.43||$||2.61|
|Net Income (Loss)||$||(33.1)||$||(105.4)||$||102.6||$||(6.8)|
Foreign exchange (gain) loss and other expenses, net
of income tax
Gain on acquisition of Gold Wheaton/sale of
investments, net of income tax
|Mark-to-market changes on derivative||1.4||(2.1)||(7.2)||-|
|Loss from equity investee, net of income tax||-||-||-||1.7|
|Impairment of stream/royalty interests||74.1||130.2||74.1||130.2|
|Impairment of investments||7.6||15.1||7.6||15.1|
|Transaction costs of Gold Wheaton, net of income tax||-||-||-||7.8|
|Foreign withholding taxes||-||4.5||(3.5)||4.5|
|One-time deferred tax recovery charge||(2.5)||-||(2.5)||-|
|Credit facility costs written off, net of income tax||-||-||-||0.6|
|Adjusted Net Income||$||47.0||$||40.8||$||171.0||$||136.0|
|Adjusted Net Income per share||$||0.32||$||0.31||$||1.19||$||1.08|
©2012 PR Newswire. All Rights Reserved.