Franco-Nevada (FN - TSE) - zero debt, cash rich royalty co. Message Board

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Gold/Mining/Energy : Franco-Nevada (FN - TSE) - zero debt, cash rich royalty co.

FN 413.09

+2.6%

Nov 14 4:00 PM EST

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To: Robert Dirks who wrote (299)	6/13/2000 11:32:00 PM
From: Squidman	Read Replies (2) of 511

<Looks like everyone ran for the exit, the last 5 days, and this amidst a Gold run.Funds are probably dumping due FN now operating in SA. Where is shareholder value for FN???> Yes, the SA exposure is probably a concern. But such concerns didn't seem to hurt the price of SA gold shares during last Fall's run above $300/oz. I guess if FN were expecting the POG to stay in its current range they would maximize earnings and shareholder value by hedging. I suspect the shareholder value comes from vastly increasing FN's production, reserves and therefore benefit from a real rise in the POG while maintaining the lowest breakeven cost so they can afford to wait. The combination still sounds good to me. But I guess the market's reaction in the short term will depend on how it weighs the future benefits against the perceived SA risk. I expect much of that risk is already discounted in the price of goldfields. -Squidman

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