Stock Profile: Franco Nevada Symbol: FN (TSE)

Key Links

• Franco Nevada • Chart • TSE Profile • Advice for Investors • Globeinvestor • SEDAR

Forums

• Our Forum • Stockhouse

News

• Press Releases • Canada Newswire

Stats as of 9/21/01

• H/L Ratio: 1.84 • RS: 94.2 • Shares: 3,454,060,202 • P/E: 26.23 • Price: $21.77

Other Profiles

• Profile Index • A.L.I. Technologies • Dominion Citrus • Arbor Memorial • Oxford Properties • ADF Group • Biovail Corporation

Franco Nevada is the world's leading precious metals royalty company. So what is a royalty company and how does it differ from a regular mining company? A royalty company invests in operating mines in order to participate in the profits generated. It does not engage in exploration or development on its own behalf.

Specifically, Franco Nevada invests to obtain several different kinds of royalty interest. They are:

• Net Smelter Return - NSR is a royalty paid by smelters and refineries to miners based on gross proceeds. No capital or operating costs are incurred.
• Net Profits Interest - NPI is a royalty on profits after expenses. However, the holder of an NPI is not responsible for operating losses or liabilities.
• Working Interest - WI is similar to an NPI except that a working interest holder has an ownership position. It does involve liabilities for capital, operating and environmental costs.
• Overriding Royalty - ORR is a royalty applied to oil and gas production. Again, the holder of an ORR is not liable for costs and expenses.

A net smelter return royalty is the most profitable of the above and Franco Nevada holds NSRs in many operating mines including some owned by Barrick, Normandy, Newmont, Homestake, Placer Dome, Glamis, Cambior and Metallica. It also holds an NSR on the Stillwater Platinum mine in Montana. Franco Nevada also holds ORR in a variety of oil operations including some owned by Pan Canadian, Rio Alto and Apache.

Franco Nevada owns outright a number of operating gold mines in Nevada and Ontario as well as working interests in others.

The company is debt-free and totally unhedged which makes it an excellent investment right now. With the threat of war, gold may surge in price and unhedged investments stand to gain the most. Management has a solid track record of continued profitability and growing share value.

Quarterly Earnings per Share

Note: EPS above includes discontinued operations. From continuing operations, EPS increased 14.3%

Annual Earnings per Share