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--Analyst Actions: Franco Nevada's Presentation at Denver Gold Forum Analyzed at Credit Suisse

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Franco Nevada Corporation (FNV.TO) presented at the Denver Gold Forum: On September 19, 2011. David Harquail, CEO, presented at the Denver Gold Forum and provided an update on the FNV royalty portfolio.

FNV has benefited from reduced inflationary pressures: "With recent capital and operating costs inflation, FNV shareholders have benefited from its fixed cost and zero cost exposure. FNV also provides a >1% dividend yield, exploration upside and > 1:1 leverage to gold price, with FNV believes makes it a better alternative to the GLD ETF. FNV recently listed on the NYSE."

Gross revenues increase by 20% by 2013 from 2011: "FNV outlined the potential to increase from 2011 Gross revenues of a projected $385-400M in 2011 to $475M in 2013."

Broad portfolio provides organic growth: "FNV expects the Tasiast royalty to start paying in Q3/11 (2% NSR on >20Mozs resource) and Detour (2% NSR on 25Mozs resource) to start paying in 2013. Both mines will add $1.5B over the life of the mines (based on 1.5Mozspa for Tasiast and 660kozs for Detour based on $1,500/oz gold). The other areas of growth in gross revenues include new mines (gross royalties of 1.5% each on Canadian Malarctic, Osisko; Phoenix, Rubicon; and Edikan, Perseus), royalties reaching hurdles (Subika 2% and Ity 1%), NPIs achieving payout (5% Musselwhite, 50% at Hemlo and 20% at Macassa 20% NPI)."

Prosperity still kicking, FIU mining right in question?: "At the NEW Prosperity project, TKO received acceptance in their application of a revised mine plan which avoids using Fish Lake as a waste rock site. A permitting decision from the Federal government is expected by year end 2012. FIU, MWS was issued a revocation of mining license on Sept 16, 2011."

On M&A, FNV noted that with the risk off trade dominating the markets, several junior companies have approached FNV with respect to royalty proposals.

Investment Thesis: "We expect gold price, exploration updates and project advancement to drive the story. We believe that we are in a bullish gold price environment and expect that gold will rise going into H2/11, and FNV will likely benefit as a leveraged, reduced risk alternative to holding bullion."

Valuation: "Our Target price of $38.00 is based on a blended Target P/NAV multiple of ~1.29X applied to our DCF of $28.89/sh with net cash of $0.39/sh added at par."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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