10:53 AM EDT, 06/19/2025 (MT Newswires) -- (Adds National Bank commentary from paragraph four)

Franco-Nevada ( FNV ) late on Wednesday said it has agreed to suspend its arbitration proceeding related to the Cobre Panama mine.

The decision was made following engagement with the government of Panama's legal counsel, the company said.

Franco-Nevada ( FNV ) had previously filed a request for arbitration under the Canada-Panama Free Trade Agreement to the International Centre for Settlement of Investment Disputes. This came after the government of Panama ordered a shutdown of the mine amid public unrest.

Meanwhile, both Franco-Nevada ( FNV ) and Cobre Panama mine owner First Quantum (FM.TO) kept their respective stock ratings and price targets at National Bank of Canada following the news.

Franco-Nevada ( FNV ) kept its Sector Perform rating and C$260 price target. The bank said the rating offsets the company's stable five-year sales outlook and industry-leading financial strength with a premium valuation, uncertainty around long-term recoverable value from Cobre Panama, and a competitive deal environment for new royalties/streams.

The bank said it remains optimistic about a resolution at Cobre Panama, which would support an improved growth outlook coinciding with its Base Case assumptions (including a restart at full capacity by mid-2027).

The price target is based on a multiple of 2.20x NAV (33%) + 30.0x EV/2025E CF (67%). Franco-Nevada ( FNV ) traded up near 0.5% at last look Thursday on the TSX.

First Quantum kept its Outperform and C$24 price target. The bank said the rating takes into account that the market is discounting what it believes to be the net recoverable value for Cobre Panama.

The price target is derived from a multiple of 1.1x NAV multiple for the Zambian operations, owing to an improved near-term operating outlook and pending balance sheet deleveraging from possible minority stake/gold stream sale in Zambia.

First Quantum's share price has gained more than 3% at last look on the TSX.

Price: 231.35, Change: +0.92, Percent Change: +0.40