Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Franco-Nevada, the world’s largest gold royalty company, has reported net profits of $35.5 million for the third quarter of 2013 – a jump of nearly $15 million on the previous reporting period, bringing its profits back in line with the first quarter of the year.
Revenue was down compared with last year, though not by much: $98 million in Q3 2013 versus $105 in Q3 2012. Oil assets partially offset the losses from lower gold prices.
“Franco-Nevada’s strong revenues and earnings despite lower gold prices demonstrates the benefits of our business model and having a diversified portfolio,” CEO David Harquail noted in a statement.
A declining gold price dragged down net profits – precious metals accounted for 74% of the firms revenue, with gold representing more than half. North America is still the firm’s biggest revenue generator, accounting for 58%. Oil and gas brought in $22 million.
Since the second quarter, Franco-Nevada has added more than 20 new royalties to its portfolio, most recently Kirkland Lake Gold in Ontario, Canada.
“One of the key differentiators of Franco-Nevada is its focus on exploration optionality and its willingness to make long-term investments in geologically favorable mineral belts,” Harquail said.
