Top 5 Stock Picks of Murray Stahl’s Horizon Asset Management

02. Franco-Nevada Corporation (NYSE:FNV)

Horizon Asset Management’s Stake Value: $146.569 million

Number of Hedge Fund Holders as of Q1 2022:  29

The Franco-Nevada Corporation (NYSE:FNV) was founded in 1983 and is headquartered in Toronto, Canada. It operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally.

As per the latest quarter’s earnings results announced on August 10, the company produced record revenues of $352 million, an increase of 1.5% over the prior year. Higher realised oil and gas prices from its Energy holdings were the primary driver of the gain. The top line beat the estimates by $3.47 million. In the three months ending in June, precious metal assets accounted for 69.2% of revenues (gold, silver, and platinum group metals made up 54.1%, 10.2%, and 4.9%, respectively).

At the end of the second quarter of 2022, the company had $911 million in cash on hand, an increase from the $539 million recorded at the end of 2021. In the first half of 2022, it reported an operating cash flow of $488 million, up from $469 million in the corresponding period of the previous year. Since Franco-Nevada Corporation (NYSE:FNV) has no debt, it can use its free cash flow to grow its holdings and distribute dividends. Franco-Nevada Corporation (NYSE:FNV) currently has $1.9 billion in the capital on hand.