Franco-Nevada expects the processing of stockpiled ore at Cobre Panamá to generate approximately 23,100 gold ounces and 265,000 silver ounces of stream deliveries as activity resumes at the mine after two years of halted operations.
The Government of Panama authorized the removal, processing and export of stockpiled ore in April as part of Cobre Panamá’s Preservation and Safe Management plan. The first processing train was commissioned in May, followed by the restart of one of the mine’s three milling circuits and production of the first copper concentrate.
The development does not represent a full restart of Cobre Panamá. Production remains halted outside the approved stockpile processing program, while a government ministerial commission continues evaluating the future of the mine.
First Quantum estimates that the stockpiles will produce 30,000 to 40,000 tonnes of copper in 2026, with the remaining material processed in 2027 for a total of approximately 70,000 tonnes.
Franco-Nevada expects deliveries under its stream to begin during Q3 2026. Approximately one-third of the anticipated stream deliveries are expected in the second half of 2026, with deliveries determined by First Quantum’s sales of copper concentrate through its offtake agreements.
The additional Cobre Panamá deliveries are helping Franco-Nevada track toward the upper half of its 2026 Total GEO guidance range. The company also expects portfolio production to be weighted toward the second half because of production profiles at Candelaria, Tocantinzinho, Côté Gold, Greenstone and Valentine.
Franco-Nevada’s Q2 revenue increased 57% to $580.9 million as GEOs sold increased 18% to 132,405. Net GEOs sold increased 20% to 122,205.
Operating cash flow increased 12% to $482.5 million, while Adjusted EBITDA increased 45% to $529.7 million, or $2.75 per share. Results also benefited from higher precious metal and oil prices.
Franco-Nevada has approximately $4.3 billion of available capital, giving it significant capacity for additional royalty and streaming transactions as management evaluates its deal pipeline.
KEY QUOTES:
“Our portfolio is set to benefit from strong organic growth evidenced by resource increases, planned mine expansions and project advancements.”
“With $4.3 billion in available capital, the Company is also well positioned to take advantage of a strong pipeline of deal opportunities.”
Paul Brink, President And CEO Of Franco-Nevada
