Franco Nevada Corp.

"What I think gives Franco the upper hand is its more or less recent spree of acquisitions, and more importantly, the 750 million available to fund additional growth (600 million in cash and short term investments + 150 million undrawn debt facility). It was not until today that I realized Franco made not one but two acquisitions recently. Not only does Franco have great leverage to the price of gold, but as key flagship streams ramp up production and/or come online over the short, medium and long term, its war chest will transform it into an enormous free cash flow generator. Franco’s Oil & Gas royalties (which account for 12-15% of income) also offer investors some exposure to oil & gas (which should rise past its 2008 highs as inflation sets in).

Not only does Franco-Nevada have a diversified royalty portfolio, but it will continue to become increasingly diversified with excellent growth in attributable gold production. It also has several potential catalysts with its exploration interests and the high likelihood of multiple value-adding acquisitions. Take advantage of the stigma that plagues many Pink Sheet stocks before Franco debuts on another major stock exchange."
    -   Seeking Alpha, "Hyperinflation" (11/17/09)

"Our Franco Nevada position is doing well; as the best royalty company for gold and oil, it is difficult to think of a better long-term buy-and-hold than that company."
    -   David Morgan, The Morgan Report (10/09/09)

"I'm a big believer in people; I am a backer of jockeys, rather than horses, and so I think the key is to look for a really good management team and you just have to look at what the market will pay for top management. One example is my ex-colleagues, Pierre Lassonde and David Harquail, at Franco Nevada (FNV:TSX), who in their last fundraising managed to raise money at a premium to the market price. That's a good one as they have an excellent business model. It's a royalty company and they don't have to lie awake at night worrying about day-to-day mining technical issues. They just have to cash their royalty checks."
    -   The Gold Report Interview with Carmel Daniele (08/18/09)

JD: We continually reassess and raise our targets as goals are hit. Or, we lower them. We took a dollar off the target of one stock recently, but others have been raised in 2009 based upon things happening—mines coming into production, their future being clearer, higher gold price or a change in the gold-silver ratio, whatever. There are adjustments that you make as you go along to change your target. And when companies reach their target like Franco-Nevada did earlier this year, we took them off—not because we have anything against Franco; it's a great company.

TGR: Back to Franco Nevada—they hit your target; you're resting on them for a while.

JD: Yes, hit the target, and we pulled back. The target was $27; it's pulled back to $24 or $25. As I said, there's nothing wrong with that company. There are two things we're waiting for. One is either the stock will pull back further or second, they'll spend some money. They've got $480 million in cash and I expect that they'll use that to buy a pretty good royalty. That may be the incentive to put it back in the Top 10. We'll see.
    -   The Gold Report Interview with John Doody (08/14/09)

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