Franco-Nevada (FNV): Addressing Legal Challenges in Mining Operations

By Patricia Miller

Mar 11, 2025

2 min read

Discover why Franco-Nevada’s legal battle over Cobre Panamá could reshape mining investments—and how its 2025 revenue surge might create profitable alternatives.

A Beautiful Display of Scattered Gold Coins Glimmering in Light Royalty Streaming

#What You Need to Know

Franco-Nevada reported better-than-expected Q4 results, with revenue up 5.8% to $321 million and adjusted EPS beating estimates. Elevated gold prices drove performance, despite no contribution from Cobre Panamá. The company forecasts over 25% revenue growth for 2025, with strong growth anticipated in precious metal sales through 2029.

Franco-Nevada has expressed optimism regarding Panamanian President José Raúl Mulino’s willingness to address the ongoing suspension of the Cobre Panamá copper mine. The company’s partnership with First Quantum Minerals is impacted by the mine's suspension, triggered by legal disputes and environmental protests. The Panamanian Supreme Court ruled the contract unconstitutional, leading to an indefinite closure of Cobre Panamá. Franco-Nevada initiated an arbitration process to seek US$5 billion in damages from Panama, with hearings set for 2026. Despite the legal challenges, the company anticipates increased revenue from other operations in 2025, focusing on beneficial outcomes for all parties involved.

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#Why This Is Important for Retail Investors

  • Legal Landscape: Understanding the legal challenges faced by companies like Franco-Nevada illuminates the risks involved in mining investments.

  • Revenue Projections: Franco-Nevada expects a significant revenue increase in 2025, indicating potential investment opportunities outside of contentious projects.

  • Environmental Factors: Awareness of how environmental concerns impact operations can help retail investors make informed decisions about sustainability in mining.

  • Arbitration Insights: The ongoing arbitration may signal trends in international trade agreements, providing investors with context for future actions by governments.

  • Investment Diversification: Franco-Nevada's diverse portfolio can serve as a model for retail investors looking to balance risks across various sectors.

#Relevant ETFs

  • SPDR S&P Metals and Mining ETF

  • Global X Lithium & Battery Tech ETF

  • Invesco DB Base Metals Fund

  • VanEck Vectors Gold Miners ETF

  • iShares MSCI Global Metals & Mining ETF

  • Direxion Daily Gold Miners Bull 2x Shares ETF

Gold Price Forecast 2025 and Ways to Invest

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.