okay, heinz, if normandy produces 2.5 million ounces a year and the ken snyder mine produces 250000 ounces a year, and say normandy hedges half, that still means that normandy has a lot of hedging left over...i guess the info i need is what % normandy hedges. franco tanked today on the news...
TORONTO, April 3 (Reuters) - Franco-Nevada Mining Corp. Ltd. (Toronto:FN.TO - news) fell almost 12 percent in early trading on Tuesday, one day after it swapped its prized Ken Snyder mine for a stake in Australian gold producer Normandy Mining Ltd. (Australia:NDY.AX - news).
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Toronto-based Franco-Nevada, the fifth largest gold company in the world by market capitalization, was off C$2.09, or 11.8 percent, to C$15.65, on volume of 788,000 shares.
The company trades in a 52-week range of C$12.40 and
C$20.50.
The deal to swap its stake in the Ken Snyder gold mine in Nevada for a share in Normandy doubles Franco-Nevada's annual gold production and makes it the largest shareholder of the Australian gold mining company.
The deal signifies Franco's return to its roots as primarily a gold royalty company, as it retreats from the role of mine operator.
Under the terms of the agreement, Normandy will issue 446.1 million shares -- which represent a 19.9-percent interest in Normandy -- to Franco for 100 percent of the Snyder mine and the surrounding Midas Exploration properties, as well as Franco's Australian interests.
Franco retains a minimum 5-percent net smelter royalty on the Snyder mine, which produces about 257,000 ounces of gold a year. The net smelter royalty could rise to a maximum 10 percent, if gold prices top $400 an ounce.
Normandy, Australia's biggest and the world's seventh-largest gold miner, will produce about 2.5 million ounces of gold annually, of which Franco's share will be 20 percent, or 500,000 ounces |
