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To: SSP who wrote (69188)	11/1/2000 12:03:02 PM
From: Jim Bishop	Read Replies (1) \| Respond to of 150070

Franco-Nevada posts solid earnings (UPDATE: Changes throughout. Adds quotes and stock price.) By Scott Anderson TORONTO, Nov 1 (Reuters) - Franco-Nevada Mining Corp. Ltd. (Toronto:FN.TO - news) put record second-quarter and six-month earnings under its belt on Wednesday and forecast yearend results would also come in at record levels. The Canadian gold mining company said an impressive operating performance from its core royalties business and output from its key Ken Snyder mine in Nevada were responsible. ``Right now we're in a position of strength. We're cash rich, our operations are working on all cylinders and we're looking forward to a record year in terms of earnings and cash flow,'' said David Harquail, senior-vice president. The Toronto-based gold miner said earnings for the quarter ended Sept. 30 were C$31.8 million ($20.9 million), or 20 Canadian cents a share, on sales of C$71.4 million, compared with earnings of C$27.8 million, or 18 Canadian cents a share, on sales of C$60.7 million for the same period a year earlier. Analysts had predicted an average of 16 Canadian cents a share according to First Call/Thomson Financial. For the six-month period, the company said it had earnings of C$61.1 million, or 39 Canadian cents, a share, on revenues of C$135.4 million, compared with earnings of C$53.3 million, or 34 cents a share, on revenues of C$117.3 million for the same period a year earlier. ``Things are working out on all fronts,'' said Chad Williams, a gold mining analyst at TD Securities, in Toronto. ``They are solid at just about everywhere.'' Franco-Nevada said the average price realised on gold sales for the six months was $286 an ounce, compared with $279 for the same period last year. The company is one of a handful of companies that does not hedge its gold production, arguing that its shareholders want to benefit from the upside that higher gold prices can bring. The company said its Ken Snyder mine in Nevada provided a strong contribution to earnings and cash flow during the quarter, producing 52,908 ounces of gold and 505,602 ounces of silver. In mid-morning trading on the Toronto Stock Exchange on Wednesday, Franco-Nevada shares were off 10 Canadian cents at C$13.90 on volume of 145,000 shares. In June, Franco-Nevada said it would take over South Africa's Gold Fields Ltd. in an all-stock deal worth C$3.7-billion ($1.8 billion), creating a gold powerhouse that would rank third in the world. But South African authorities denied Gold Fields exchange control approval on Sept. 21, saying a merger with Franco-Nevada would not benefit the country's economy, prompting both sides to proclaim the deal dead. When the Gold Fields deal was killed, Franco-Nevada chairman Seymour Schulich said Franco-Nevada was talking with at least four companies about possible transactions. Harquail refused on Wednesday to comment on whether the company, which has built up a war chest of more than more than C$1 billion, would make an acquisition soon. ``We're examining our alternatives,'' he said. ``We're just looking at all our options.'' ($1 equals $1.52 Canadian)