The pandemic, politics, and insider selling take the shine off Franco-Nevada
    
    
      
    
  

  
    
        The share price of
        gold-focused royalty and
stream
        company Franco-Nevada is
        up 31.5% year-to-date,
        but things have taken a
turn down.
        The stock has been moving
        steadily lower since
        it announced Q2 results on
August 5th.
        Q2 revenue came in at
US$195.4 million,
        up 14.6% from Q2 2019.
        However, the increase was
due to
        a rising gold price as
        gold equivalent ounces
sold in Q2
        was down 3.2% from a year
earlier.
        As a result of COVID-19,
        operations at 15 out of
        56 cash-flowing gold
assets
        experienced temporarily
reduced or
        curtailed production in
Q2.
        While all but 3 had
        resumed operations by
quarter-end,
        investors may be getting
jittery about
        rising global COVID-19
case counts.
        Moreover, gold is now
        off its high of the year,
        and more uncertainty may
lie ahead for
        bullion depending on
        the results of the US
election.
        The combination of
pandemic
        and political risk is
weighing on
        the stock which moved
below
        its 200-day moving average
on Wednesday.
        Poor technicals plus
        earlier insider selling is
combining
        to produce a dreary
outlook
        for the stock into
year-end.
        Get our full report via
INKResearch.com or
        the Canadian Insider Club
at
        CanadianInsider.com.
        This report is not
        a recommendation to buy or
sell securities.