2-for1 Sale
Oh, the world of mining. It’s like the Wild West, but with more spreadsheets and fewer cowboy hats. Let’s dive into the tales of two Canadian mining stalwarts, Franco-Nevada (TSX:FNV) and Taseko Mines (TSX:TKO) and let’s see which mining stock is less wild.
Franco-Nevada
First up, Franco-Nevada, the royalty and streaming company that’s to mining what a landlord is to real estate, collecting cheques without getting its hands dirty. In the third quarter of 2024, they reported revenues of $275.7 million, a 10.9% dip from the same period in 2023. But if you squint and exclude the Cobre Panama project, revenues actually rose by 13.8%. It’s like saying, “I lost my wallet, but found a tenner in my jeans.”
Speaking of Cobre Panama, the gold-copper mine has been a bit of a soap opera. Closed last year due to public unrest, it’s now the subject of arbitration between Franco-Nevada and the Panamanian government. Franco-Nevada is seeking a cool $5 billion in damages under the Canada-Panama free-trade agreement. Investors are on the edge of their seats, waiting for Panama’s president to decide the mine’s fate.
Despite these hiccoughs, analysts are optimistic about Franco-Nevada’s future. They’re forecasting earnings and revenue growth at rates of 38.3% and 0.9% per annum, respectively. Earnings per share (EPS) are expected to grow by 42.5% annually. So we’ll have to see whether the mining stock grows slowly, but surely.
Taseko
Now, let’s turn our attention to Taseko Mines, the copper-centric miner with big ambitions. In 2024, Taseko reported revenues of $608 million from the sale of 108 million pounds of copper and 1.4 million pounds of molybdenum. It recorded a net loss of $13 million, but adjusted net income stood at $57 million.
Taseko’s Gibraltar Mine produced 29 million pounds of copper in Q4 2024, with total operating costs (C1) of $2.42 per pound. The mill throughput averaged 89,600 tons per day, the highest ever achieved for a quarter at Gibraltar. Looking ahead, Taseko expects copper production to increase to 120–130 million pounds in 2025, thanks to normalized mill operations and the restart of the SX/EW plant. However, the mining stock is cautioning that production will be weighted toward the latter half of the year, with Q1 being the lightest.
Taseko is also making strides with its Florence Copper project in Arizona. Construction of the commercial production facility is approximately 56% complete, with first copper expected in Q4 2025.
Foolish takeaway
Interestingly, Franco-Nevada and Taseko have crossed paths before. Back in 2010, they inked a deal where Franco-Nevada agreed to purchase 22% of the life-of-mine gold from Taseko’s proposed Prosperity Gold and Copper Mine for US$350 million.
However, the Prosperity project hit several roadblocks, including federal approval denials linked to indigenous land claims. This led to arbitration between the two companies, with Franco-Nevada appealing a decision that found the agreement had been frustrated. It’s a legal tug-of-war that’s still unfolding.
In the grand tapestry of mining stocks, Franco-Nevada and Taseko Mines are threads woven with ambition, challenges, and the relentless pursuit of precious metals. As 2025 unfolds, investors and industry watchers alike will be keen to see how these narratives develop. Hopefully, they will do so with fewer plot twists and more happy endings.
