| An SI Board Since November 1999 |
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FN |
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The new Franco-Nevada is the leading international gold royalty company with a growing portfolio of high margin producing properties and interests in the major gold camps spanning over 5 million acres in six countries. Total precious metals resources stand at 22.4 million ounces of which 8.6 million are in the proven/probable category. Franco-Nevada's world class assets are set to provide rising earnings and cash flows under foreseeable gold market conditions. Our vision is to provide investors with superior returns from a diversity of high quality, high margin gold assets. Management is dedicated to the maximization of our share price.
On September 20th 1999, Franco-Nevada merged with its sister company Euro-Nevada. Over the previous 16 years, both companies created and dominated the high margin gold royalty business. Franco-Nevada's focus had been North American gold royalties and other commodities. Euro-Nevada's focus had been international gold royalties. Together, the new Franco-Nevada is the dominant gold royalty company in the world and, with a market capitalization of over US$2.6 billion, it ranks as the fifth largest gold company in the world.
The new Franco-Nevada Mining Corporation has a portfolio of over 60 royalties spanning six countries. Royalties are high margin assets providing a direct interest in a mine's cash flow with exposure to new discoveries and production growth yet without capital obligations or environmental liabilities. Franco-Nevada's royalties provide it with a direct interest in major world class ore bodies operated by the best companies in the business.
Franco-Nevada will take on working interests only in high margin, world class projects. Production has just started at Franco-Nevada's wholly-owned 8 million ounce Midas project in northern Nevada. In its first full operating quarter ended on June 30th 1999, the Ken Snyder Mine at Midas produced at an annualized rate of over 250,000 gold equivalent ounces at a cash operating cost of only US$86 per equivalent ounce.
Franco-Nevada's direct and royalty land interests on major mineral trends exceeds 5 million acres which allows it to benefit from new discoveries deriving mainly from outside operators. Over US$1 billion in other companies' money is committed to Franco-Nevada lands over the next 3 years. Over 85% of resource revenues, earnings and cash flow derive from precious metals. Over 96% of revenues, earnings and cash flow are derived from assets securely positioned in the United States, Canada and Australia.
Franco-Nevada has a proven track record of delivering share value with over 12 years of continuous profitability and dividends without a material writedown. With the development of Midas and increasing production at several royalties, Franco-Nevada's earnings and cash flow are expected to continue growing. The company maintains a policy of not hedging its gold. Franco-Nevada is financially strong with over Cdn $1 billion in working capital and marketable securities and no debt.
The new Franco-Nevada is a premium gold equity for institutional and personal investors alike. Traded on the Toronto Stock Exchange, symbol FN.
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