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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (34767)	3/27/2009 2:46:49 PM
From: LoneClone	Read Replies (1) \| Respond to of 194042

Gold to bring in 75% of Franco-Nevada revenue by Q3 miningweekly.com By: Liezel Hill 26th March 2009 TORONTO (miningweekly.com) – Resources royalty firm Franco-Nevada Corporation expects gold royalties to account for a much bigger slice of overall revenue this year, thanks to higher expected bullion prices and weaker prices and output levels for its other commodities. The company reported best-ever quarterly revenue for the three months ended December 31, of $42,5-million, and $151-million for the full year. In 2008, precious metals brought in 56% of group revenue, with gold making up 47% of the total and platinum-group metals just 9%. This year, assuming commodity prices stay where they are, the firm is projecting that gold will represent more than 75% of Franco-Nevada's revenue. Including platinum-group metals, precious metals are expected to account for a full 80% of total revenue, the firm said on Thursday. In 2008, 36% of revenue came from oil and gas, but this will likely decline, as prices have fallen below fourth-quarter averages, and the company is expecting some deferred oil and gas production as operators reduce their capital expenditures. Franco-Nevada reported net income of $40,3-million for 2008, and earned $15,4-million in the fourth quarter of the year. Full-year profit included $16,5-million of net tax recoveries offset by $8,5-million of non cash impairments of investments and smaller royalty interests. Most of these adjustments occurred in the fourth quarter. “Overall, gold revenues are expected to become the dominant driver of Franco-Nevada’s revenues in 2009,” the firm indicated on Thursday.