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 416.69

+1.8%

Nov 19 4:00 PM EST

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To: GlobalMarine who started this subject	4/17/2001 1:01:46 PM
From: que seria	of 511

Here are week-old comments on/from FN via Aussie media: Sorry no link; I picked this up from a subscription service. 4/10/01 AAP News (Pg. Unavail. Online) AAP News Copyright (C) 2001 AAP Information Services Pty Ltd.; Source: World Reporter (TM) Tuesday, April 10, 2001 Franco-Nevada 'doesn't have agenda for Normandy stake' Sandra O'Malley MELBOURNE, April 10 AAP - Normandy Mining Ltd's new 20 per cent shareholder Franco-Nevada Mining Corp Ltd does not have a hidden agenda for its new strategic alliance partner. Franco-Nevada and Australia's biggest gold miner last week announced a deal which would see the Toronto royalty group emerge with a 19.9 per cent stake in Normandy in exchange for a key US gold mine, its Australian royalty stream and $US48 million cash. "If you look a couple of days down the road, and the stock price is twice what it is today... then could we use our money to put one Franco-Nevada president Pierre Lassonde today told analysts and journalists in Melbourne it did not have an "agenda or plan" for its new gold investment. "This is a transaction that stands by itself, it adds value to both companies," he said. or two things together and create the second or third or maybe the first largest gold company in the world? Possibly. "Certainly that is a vision I think we share." The market has questioned what might be the longer term intentions of the cash-rich Franco-Nevada, which has $C1 billion in cash at its disposal. In an off-the-cuff comment, Mr Lassonde said Franco-Nevada was in the royalty business and takeover of Normandy was not part of the plan. "I'm the worst manager there is," he said. "Anybody who thinks we coming over here to takeover Normandy forget about that, I can't even manage my secretary." Franco-Nevada was looking at four companies as it examined ways to increase its gold exposure after a deal with Gold Fields of South Africa fell through last year. Mr Lassonde admitted Normandy was last on its list but they were eventually won over by its management and its "undervalued" assets. He also had no intention of being sentimental over the investment, categorically stating he would sell if the price was right. Mr Lassonde also flagged the potential for Normandy to simplify its hedging position as its reduced its debt. But for the moment, he was "comfortable" with its hedging position. Normandy shares finished three cents lower at 92 cents.

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