The recent results gave a boost to the stock, and it has appreciated by nearly 24% after that. The company managed to report a net profit despite decline in gold prices. The Company's revenue declined 9.2% YoY to $93.3 million and the net income declined 41.5% to $21.6 million. The royalty and stream production was in-line with the company's expectations. The Company expects to receive a total of 215,000 to 235,000 gold equivalent ounces (GEOs) from its mineral assets, and $55 to $65 million in revenue from its oil & gas assets in 2013. There was no change in the guidance. Franco-Nevada is now nearly 50% up from the low made in June. It is above important levels, and looks good form more provided the sentiments continue to improve. The valuations are getting stretched, and now it is trading at 49 times forward earnings, and the price to sales is 16.4. This makes the valuations high compared to many peers. The balance sheet remains strong with nearly $800 million cash and zero debt on June 30. The net profit margin is also 18% on a ttm basis. Gold has moved by around 18% during the last two months. It has moved beyond crucial levels, and looks good for touching the next target of $1470. However, it will need to prove itself by surviving a correction. So far the move beyond $1340 has been pretty much non-stop. What this has done is improved the sentiments significantly, and investments in development stage assets have increased. Pershing Gold (PGLC) has obtained more than $20 million funding over the last few weeks which will help it further develop its project in Nevada and start production. One important aspect of the correction in gold over the last few quarters is that now companies are much more conscious about costs. That may help the companies in the long run.
