Keeley Gabelli Mid Cap Dividend Fund on Franco-Nevada Corp.
Thesis
Franco-Nevada reported a record quarter but the shares were pressured by falling gold and silver prices. The company has more than $1 billion of available liquidity and a strong pipeline of royalty opportunities. A possible restart of the Cobre Panamá mine could materially improve the five-year outlook because the asset previously represented a large share of profits.
“a restart could significantly strengthen the company's five-year outlook.”
Key risks
- Gold and silver price declines