The Gold Report

Franco-Nevada Corp. TICKER: FNV:TSX Visit Company Website Franco-Nevada Corporation is a resource royalty and investment company owning a diversified portfolio of precious and base metal royalties, oil and natural gas royalties and other interests. The portfolio includes assets in production, under development or in the exploration phase mostly located in geopolitically secure countries. Franco-Nevada intends to use its free cash flow to expand its portfolio and pay dividends.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Greg Barnes, TD Newcrest (12/1/11) "We are resuming coverage of Franco-Nevada Corp. following the closing of a $391M bought-deal financing. . .the company has noted it plans to use the net proceeds for acquisitions; in our view, growth via accretive acquisitions has been a key driver of Franco's share performance over the past couple of years. . .we estimate that it is generating $70–80M/quarter in cash flow and it has no debt. . .we continue to like Franco's business model."

The Gold Report Interview with Jordan Roy-Byrne (11/23/11) "I decided to add Franco Nevada Corp. recently when I believed the market was bottoming. It was an easy call because it's been a great company and a great performing stock over the last couple of years in terms of relative strength. It makes new highs ahead of its peers. It came down from about $48 to $34. We got in at $35. Today, the stock was trading close to $42. You want to buy this type of company when it has a correction like that. That's why we bought Franco rather than a risky junior."

Cosmos Chiu, CIBC World Markets (11/10/11) "Franco-Nevada Corp.'s third quarter was highlighted by the first partial quarterly payment from Tasiast of $1.5M; we expect Tasiast to become a significant revenue contributor going forward. . .earnings per share in Q311 were $0.31, largely in line with our estimate of $0.28 and consensus of $0.32; with royalty revenue totaling $292.7M for the first nine months of the year, we believe Franco-Nevada is well positioned to meet and potentially exceed its revenue guidance of $375-400M for 2011."

Craig West, GMP Securities (11/10/11) "After market close Nov. 8, Franco-Nevada Corp. reported positive Q311 results, with record royalty revenues and record earnings before interest, taxes, depreciation and amortization. . .while the company's shares continue to trade at a premium to precious metal peers, we believe this is warranted given the its financial strength and overall lower risk profile. In fact, we see further upside if market uncertainty and instability continue to rise; Franco remains a go-to name in the current risk-off/flight-to-safety trading environment."

Greg Barnes, TD Newcrest (11/10/11) "We believe Franco-Nevada Corp. is well positioned for further growth over the next several years. Looking forward to 2012, we are forecasting gross royalty revenue of $464M (+17%). . .longer term, the company could grow its royalty revenue to $480M. . .we continue to like Franco's business model; its royalty and revenue stream revenues are generally protected from capital and operating cost inflation and this has been recognized by investors over the past several quarters with very strong share price performance."

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