CIBC Capital Markets maintained its outperformer rating and price target of C$480 on the shares of Franco-Nevada (FNV.TO, FNV) following CIBC's annual Canadian mine tour, where CIBC hosted an investor call with the company to discuss its royalties on the Island Gold District, Porcupine, Cote Gold and Detour Lake, four key assets the bank visited during its tour, it said Monday.
"Management started by highlighting asset-level growth drivers across FNV's core Ontario portfolio, followed by a detailed overview of the accelerated growth outlook at Porcupine following Discovery Silver's acquisition of Kidd Creek, the long-term potential at Cote through Gosselin integration and future optimization opportunities, and continued reserve growth across both Detour and the Island Gold District," said analyst Cosmos Chiu. "Management also provided an update on the company's deal pipeline, reiterating that FNV remains well positioned for additional transactions and reiterated its focus on capital deployment in Tier-1 jurisdictions."
The bank said the discussion reinforced Ontario as an "increasingly important contributor" to the company's long-term growth profile, supported by multiple assets with ongoing expansion, optimization, and reserve growth opportunities.
"FNV shares remain our top pick for precious metals exposure, and we maintain our $480 price target," added Chiu.
Price: $319.16, Change: $+8.19, Percent Change: +2.63%