Top Strong Buy Stocks for November 25: HNRG, NEM, and Others
Zacks Rank #1 Stocks: Five stocks have been added to the Zacks Rank #1 (Strong Buy) List, including Newmont Corporation, Wheaton Precious Metals Corp., Hallador Energy Company, Fox Corporation, and Franco-Nevada Corporation, all of which have seen significant increases in their earnings estimates over the past 60 days.
Earnings Estimate Increases: Hallador Energy Company experienced the largest increase in earnings estimates at 71.9%, followed by Wheaton Precious Metals Corp. at 8.8%, Newmont Corporation at 9.4%, Fox Corporation at 6.8%, and Franco-Nevada Corporation at 5.1%.
AI Investment Insights: The article suggests that while well-known AI stocks have generated wealth, lesser-known AI firms addressing major global challenges may offer more lucrative investment opportunities in the future.
Free Stock Analysis Reports: The article provides links to free stock analysis reports for the highlighted companies, encouraging readers to explore investment options further.
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Company Overview: Franco-Nevada Corporation is a leading gold-focused royalty and streaming company.
Recent Financial Update: H.C. Wainwright has raised the target price for Franco-Nevada shares to $285 from a previous target of $210.
- Financing Overview: i-80 Gold announced it has secured a financing package of up to $500 million, which includes a $250 million royalty sale to Franco-Nevada and a gold pre-payment facility of up to $250 million, aimed at supporting its recapitalization plan and establishing itself as a mid-tier gold producer in Nevada.
- Recapitalization Strategy: The company plans to retire and replace existing convertible debentures with more favorable terms and potentially sell a non-core asset to complete its recapitalization plan targeting an overall amount of $900 million to $1 billion, enhancing its financial flexibility.
- Royalty Agreement Details: The agreement with Franco-Nevada includes a 1.5% life-of-mine net smelter return royalty, increasing to 3.0% in 2031, applicable to all of i-80 Gold's material properties, ensuring long-term revenue generation.
- Production Target Outlook: i-80 Gold aims to achieve annual gold production exceeding 600,000 ounces by the early 2030s, with CEO Richard Young stating that the foundational capital provided by Franco-Nevada lays a solid groundwork for the company's future growth.
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a $250 million net smelter return royalty from i-80 Gold through a wholly-owned U.S. subsidiary, with an initial royalty rate of 1.5% that will increase to 3.0% starting in 2031, supporting i-80 Gold's recapitalization plan and its strategy to become a mid-tier gold producer focused on Nevada.
- Extensive Project Coverage: The royalty applies to all of i-80 Gold's significant assets, including six projects at various stages of development, covering over 250 square kilometers of prospective ground, which is expected to significantly enhance its future gold production capacity.
- Production Capacity Increase: i-80 Gold plans to increase annual production from 150,000 to 200,000 ounces of gold in Phase 1 to over 600,000 ounces by Phase 3 in 2032, which is anticipated to generate substantial revenue growth and enhance market competitiveness.
- Strategic Financial Support: Franco-Nevada intends to finance the transaction using its $900 million in cash and cash equivalents, demonstrating its strong financial position and confidence in gold investments, further solidifying its leadership in the gold royalty and streaming sector.
- Royalty Acquisition: Franco-Nevada has acquired a $250 million net smelter return royalty from i-80 Gold through a wholly-owned subsidiary, with an initial rate of 1.5% increasing to 3% in 2031, supporting i-80 Gold's recapitalization plan to become a mid-tier gold producer in Nevada.
- Project Development Timeline: i-80 Gold aims to ramp up annual production from 30-40 koz in 2025 to over 600 koz by 2032, with a three-phase development plan that includes achieving 150-200 koz in Phase 1 by 2028-2029, significantly enhancing its competitive position in the gold mining sector.
- Financing and Processing Hub: This financing will provide substantial capital for advancing Phases 1 and 2, particularly refurbishing the Lone Tree Autoclave facility to establish a central processing hub that optimizes operations across multiple underground mines.
- Mineral Resource Potential: The royalty covers a substantial mineral resource base of 7.8 million ounces of measured and indicated resources across a 256 km² land package, indicating strong long-term growth potential and opportunities to create greater value for all stakeholders.








