Why Shares of Franco-Nevada Rose 35% in the First Half of 2020
Proclaiming itself as the "gold investment that works," Franco-Nevada (NYSE: FNV) proved that its branding was well warranted over the past six months. While the S&P 500 has ticked down 4% in the first half of the year, shares of Franco-Nevada have climbed 35%, according to data from S&P Global Market Intelligence. In addition to the rise in the price of gold, the company's strong first-quarter earnings report and dedication to its dividend have inspired investors to pick up shares.
Unlike mining companies that dig the yellow stuff out of the ground, Franco-Nevada operates more like a specialized financier. The company provides up-front capital to the mining companies, and in return, it obtains the right to purchase a certain amount of gold (or other metal) at a previously determined discounted price, or to receive a percentage of mineral production from a mine.
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Source Fool.com
