Franco-Nevada Corporation FNV announced that its partner, First Quantum Minerals Ltd. FQVLF, issued an update on its Cobre Panama mine.
The delivery of essential supplies was hampered due to an ongoing illegal blockade of small boats at the Punta Rincon port. First Quantum's subsidiary, Minera Panama S.A. ("MPSA"), expects to run out of supplies for the power plant if shipments do not arrive at the Punta Rincon port. As a result, MPSA has reduced operations at Cobre Panama to only one ore-processing train.
MPSA expects to ramp down the remaining processing train this week and temporarily suspend production if the illegal acts continue to prevent supplies.
To reflect the recent curtailment of operations at Cobre Panama and the risk of further disruptions at the mine, FNV is adjusting its expected Precious Metal GEOs for 2023 at 480,000-500,000. It previously expected 490,000-530,000 Precious Metal GEOs for 2023.
The company expects 620,000-640,000 total GEOs for 2023, down from the previously stated 640,000-700,000 total GEOS.
Franco-Nevada reported adjusted earnings of 91 cents per share in third-quarter 2023, beating the Zacks Consensus Estimate of 88 cents. The bottom line increased 10% year over year.
The company generated revenues of $310 million in the reported quarter, up 1.7% year over year. The upside was driven by an increase in GEOs from its Precious Metal assets and higher gold prices. This was partially offset by lower commodity prices for its diversified assets.
Franco-Nevada’s shares have lost 11.4% in the past year against the industry’s growth of 8.3%.
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Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Ryerson Holding Corporation RYI and Universal Stainless & Alloy Products, Inc. USAP. RYI sports a Zacks Rank #1 (Strong Buy) and ANDE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ryerson’s fiscal 2022 earnings is pegged at 24 cents per share. The consensus estimate for 2024 earnings has been unchanged in the past 60 days. Its shares have gained 6.4% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares gained 96% in the last year.
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