- Franco-Nevada is one of the top-performing precious metals stocks year-to-date, up 12% vs. a double-digit decline in the Gold Miners Index.
- This impressive performance is due to the company's superior operating model, benefiting from 80% plus margins, and exposure to other commodities to smooth out volatility in quarterly revenue.
- The energy exposure should be a major benefit in H2, partially offsetting the sharp decline in metals prices we saw in Q3, especially in silver.
- However, while I think Franco-Nevada is the best way to play the precious metals sector for conservative investors, I think there is better value elsewhere in the space currently.
For further details see:
Franco-Nevada: Energy Revenue Set To Soar In H2