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Gold/Mining/Energy : Franco & Euro Nevada FN , EN
FN 447.29-0.4%Nov 12 3:59 PM EST

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To: SwampDogg who wrote (519)7/20/1999 10:55:00 AM
From: Exsrch  Read Replies (1) of 658
 
Fuddle,

Hope the following is helpful:

Assumptions: $275 POG, 5% discount rate (per share)

NAV for FN: CDN$13.11

NAV for EN: CDN$8.98

Merged FN: CDN$12.98 (5% discount rate, POG $270, C$5.98 in cash and C$7.00 of discounted cash flow for royalty asets)

At the current share price of Franco-Nevada, the merged company is trading at 2.02 times asset value (cash deducted from share price).

Source is ML.

Cheers,

Exsrch
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