Franco-Nevada profit lifted by bullion price

Franco-Nevada Corp. (FNV-T) said on Tuesday its first-quarter net profit more than doubled as the gold-focused royalty company benefited from high bullion prices.

Revenues from royalty deals linked to assets in northern Ontario and Mexico drove earnings during the quarter. The strong results prompted the company to boost its monthly dividend by 25 percent to 5 cents a share.

Net income rose to $46.8 million US, or 33 cents a share, from $21.2 million, or 18 cents, a year earlier.

Excluding a foreign exchange-related gain, earnings rose to $43.6 million, or 31 cents a share. That compared with a year-ago profit of $22.1 million, or 19 cents.

Analysts, on average, had forecast earnings of 31 cents a share, according to Thomson Reuters I/B/E/S.

Toronto-based Franco-Nevada provides miners upfront cash in exchange for future royalties. The company holds interests in precious metal, base metal, and oil and gas projects around the world.