Franco-Nevada Secures Precious Metals Stream With Sibanye-Stillwater

Franco-Nevada Corporation FNV announced that it signed a $500-million precious metals stream agreement with Sibanye-Stillwater. This agreement will allow FNV access to the production of this fully integrated, long-life platinum group metal and generate immediate cash flow.Details of FNV’s Deal With Sibanye-StillwaterThe Western Limb operations are key components of Sibanye-Stillwater's business. Sibanye-Stillwater's Western Limb operations are a fully integrated. It has a mine life of up to 2070 and a large pipeline of extension projects. This makes the operation a high-quality stream with significant long-term potential.Over the next 20 years, this deal is expected to provide Franco-Nevada with a stable GEO profile from platinum, palladium, rhodium and gold production. For the first 25 years, gold deliveries to FNV will be determined by the amount of platinum, palladium, rhodium and gold ounces produced. Franco-Nevada will fund the stream from cash in hand. FNV had $1.3 billion in cash and cash equivalents, and $2.3 billion in available capital as of Sept. 30, 2024.Franco-Nevada’s Focus on GrowthThe stream agreement with Sibanye-Stillwater is expected to expose Franco-Nevada to the growing demand for platinum group metals.The company continues to diversify its portfolio with further acquisitions. On Aug. 13, 2024, FNV announced that it acquired a 1.8% net smelter return royalty on Yanacocha operations in Peru. The transaction strengthens Franco-Nevada's portfolio with immediate gold equivalent ounces and long-term growth prospects. In the second quarter of 2024, the company acquired a gold stream from SolGold with reference to production from the Cascabel project located in Ecuador. In the second quarter of 2024, FNV acquired a gold stream from SolGold related to production at the Cascabel project in Ecuador.These transactions demonstrate Franco-Nevada's commitment to growth, and ability to identify and acquire high-quality assets.FNV Stock’s Price PerformanceThe company’s shares have gained 6.1% in the past year compared with the industry’s growth of 13.1%. Image Source: Zacks Investment Research Franco-Nevada’s Zacks Rank & Stocks to ConsiderFranco-Nevada currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the basic materials space are CF Industries Inc. CF, Carpenter Technology Corporation CRS and New Gold Inc. NGD. CF sports a Zacks Rank #1 (Strong Buy) at present, and CRS and NGD carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF’s shares gained 20.6% in the last year.Carpenter Technology has an average trailing four-quarter earnings surprise of 14.1%. The Zacks Consensus Estimate for CRS’s fiscal 2025 earnings is pegged at $6.61 per share. Its shares skyrocketed 162.7% in the last year.New Gold has an average trailing four-quarter earnings surprise of 37.5%. The Zacks Consensus Estimate for NGD’s 2024 earnings is pegged at 18 cents per share. Its shares gained 64.2% in the last year.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Franco-Nevada Corporation (FNV): Free Stock Analysis Report New Gold Inc. (NGD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks