Shares of Franco-Nevada (NYSE: FNV) have badly lagged peers Royal Gold and Wheaton Precious Metals. There's a very good reason for this, but long-term investors should probably step back and take a deep breath. If you look just past the current troubles at the precious metals company's largest investment, there's a compelling story that supports the company's long-term success.

At a high level, Franco-Nevada and its peers sell gold, silver, and other precious metals. But they are streaming companies, not miners. This means that they provide cash upfront to miners, which gets used for things like building mines or expanding existing assets. In exchange for that cash Franco-Nevada gets the right to buy precious metals at reduced rates in the future.

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Source Fool.com