Just How Bad Was Franco-Nevada's Bad News?

Run for the hills or buy on weakness?

For the past decade or so, Franco-Nevada has been the closest thing to a risk-free investment in the precious metals space. It’s the biggest royalty company, with 419 assets in multiple countries operated by dozens of brand-name miners. It generates consistent cash flow and has the financial muscle to keep adding to its portfolio in times — like the present — of market weakness. While countless gold miner stocks have languished, its share price has tripled since 2013.

So the bad thing that happened this past Monday requires some serious thought. Here’s the story: