exploration & production + 285 royalties

Gold & precious metals - Oil & Natural Gas - Base metals.

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Franco Nevada Corporation Profile

Resource royalty and investment company.

Franco-Nevada Corporation, Toronto, Ontario. TSX : FNV, holds a portfolio of approximately 285 royalties and other investments in gold and other precious metals, natural gas, oil and base metals operated by some of the world's most respected operators, including: Barrick, Xstrata and EnCana.

Pierre Lassonde, Chairman

The portfolio includes assets in production, under development or in the exploration phase mostly located in geopolitically secure countries.

Franco-Nevada generates significant cash flow from royalties on assets in production, including Goldstrike (gold), Stillwater (PGMs), and its interests in more than 100 oil and natural gas properties located in Western Canada. In recent years,

The royalty portfolio has experienced growing cash flows from Bald Mountain, Marigold, Robinson, Pandora and Falcondo. Cash flow has recently initiated from assets which are ramping up production, including Cerro San Pedro and Mesquite.

Franco-Nevada expects to generate future cash flows from royalties on a further 15 mineral properties under development or in advanced exploration, including Detour Lake, Rosemont, Hollister, Holloway-Holt, Wiluna, Dee Gold, Pinson and Hemlo (Interlake). Franco-

Nevada also has an effective working interest of approximately 9% in certain gas resources in the Canadian Arctic, totaling approximately 1,140 BCF (net to the portfolio), the largest undeveloped gas fields in North America.

Gold

Gold royalties constitute the largest percentage of Franco-Nevada’s revenue. Franco-Nevada has royalties in 16 other gold operations and royalties on 12 properties in development or advanced exploration and royalty contracts or options on 127 gold exploration properties.

Platinum Group Metals

Franco-Nevada has significant exposure to Platinum Group Metals (PGMs). It has a 5% NSR on a large proportion of the Stillwater mine in Montana, North Americas largest PGM mine. It also has an interest in the Pandora JV in the bushveld PGM complex of South Africa and two exploration interests

Base Metals

Franco-Nevada has 6operating, 3 advanced and 19 exploration contracts. The Falcondo (nickel) property represents the largest contributor to the Company's net asset value for this asset class. Robinson is also a substantial copper-gold contributor and Rosemont is a large scale copper property under development

Oil and Gas

Franco-Nevada’s significant oil and natural gas interests are the Edson Property, Weyburn Unit, Midale Unit, Medicine Hat Consolidated Unit No. 1 and Tidewater Interests. These properties accounted for approximately 81% of the production revenue from the Oil & Gas Interests for the year ended December 31, 2006 and 81% of proved reserves for the year ended December 31, 2006. As of December 31, 2006, total proved plus probable reserves for these properties was 7.7 MMboe, using forecast costs and prices.

Approximately 50 areas contribute the remaining approximately 19% of total oil and natural gas revenues, and are comprised of approximately 3,500 gross producing wells, and encompass a wide variety of royalty agreements and operators and are primarily located in Alberta and Saskatchewan.

Franco-Nevada's Oil & Gas interests also include working interests in natural gas fields located in Canada's Arctic Archipelago.

Exploration

Franco-Nevada has approximately 148 contracts on non-producing mineral properties in the U.S., Canada, Australia and several other countries. While none of these properties are currently in production, they nonetheless represent potential future royalty streams. The non-producing royalty contracts cover various commodity types, with approximately 127 of the royalty contracts covering properties with gold potential, 2 contracts covering properties with PGM potential and the remainder covering properties with base metal and other mineral potential.

The properties are in various stages of exploration, pre-development, reserve development and feasibility analysis. Several of the interests represent claims over land areas in or adjacent to currently producing properties. Franco-Nevada benefits from capital expenditures incurred by the property owners on these exploration properties.

Franco-Nevada has the petroleum and natural gas rights in approximately 100,000 gross acres of unproved land. Franco-Nevada also has approximately 76,000 gross (net 11,000) acres of unproved non-producing lands under lease. The unproved lands and unproved non-producing leased lands are located in Alberta, Saskatchewan and Manitoba.

Longer-term, Franco-Nevada expects to generate value for shareholders through approximately 145 mineral exploration properties and from approximately 100,000 unproven oil and gas rights acreage.

Franco-Nevada intends to use its free cash flow to further expand its portfolio in the resource sector and to pay dividends.

Last changed at 11-Feb-2009 04:27AM by Highgrader