Gold royalty and streaming company Franco-Nevada (TSX: FNV; NYSE: FNV) aims to maintain production at around 600,000 gold-equivalent oz. by 2027 although it’s a 10% decline from last year, CEO Paul Brink said in an interview.
The company achieved 670,000 gold-equivalent oz. in 2023. New output from companies expanding existing mines and bringing 10 new projects into production should help offset a drop in contracted ounces, according to Brink.
Agnico Eagle Mines’ (TSX: AEM; NYSE: AEM) Detour Lake gold mine in Ontario, Gold Fields’ (NYSE: GFI; JSE: GFI) Salares Norte in Chile, and Equinox Gold’s (TSX: EQX; NYSE: EQX) Greenstone mine in Ontario contribute to the company’s bottom line.
“The biggest of the expansions is Detour gold,” the executive said last month during the Gold Forum Americas in Colorado Springs, Colo. “Since Agnico took over, it’s been producing 650,000 oz. [a year], and they’ve got plans now to move it up to a million a year.”
Brinks says the company isn’t abandoning financial discipline just because gold is at record highs. Since its initial public offering in 2007, Franco-Nevada has increased its dividend 17 consecutive times.
“The number one use for our cash has always been adding new assets to the portfolio,” Brink said. “We position ourselves as a low-risk way to invest in the sector.”
Watch the full interview below with The Northern Miner’s western editor, Henry Lazenby.
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