Franco-Nevada's (FNV) Cobre Panama mine restart remains its key growth driver, but more projects are also in the pipeline, UBS said in a note Friday.

Cobre Panama represents about 20% of its future gold equivalent ounce production and net asset value, with newsflow of the mine likely to generate volatility, the report said.

"Recent progress is encouraging," the note said. "We continue to believe the mine is likely to restart...in late 2027 and return to broadly 'normalized' production in 2028."

The report also said the firm has the most undeveloped growth optionality, and this is not discounted in the share price. UBS kept its buy rating and a $280 price target.

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