Franco Nevada Reports Record Profit, Sales In 2017
Franco-Nevada (NYSE, TSX: FNV) reports aprofitable fourth quarter and record net income for full-year 2017. The companylists fourth-quarter net income of $43.5 million, or 23 cents per share, a turnaround from a loss of$4.5 million, in the same period a year earlier. The company lists quarterlyadjusted income of $52.1 million, or 28 cents, up from $42.9 million, or 24cents, a year earlier. The company reports the sale of 119,839 gold-equivalentounces. For all of 2017,Franco-Nevada lists record net income of $194.7 million, or $1.06 per share, up from $122.2 million in2016. Adjusted income was $198.3 million, or $1.08, up from $164.4 million, or94 cents. The company says it sold a record 497,745 gold-equivalent ounces in2017, a 7.2% increase. Chief Executive Officer David Harquail saysFranco-Nevada’s 10th full year since its initial public offering was its bestyear ever. “We achieved record results that were at the high end of ourguidance for 2017,” he says. “We are now looking forward to another phase ofgrowth through 2022 with the ramp-up of Cobre Panama over 2019-2022, the firstphase expansion of Tasiast later this year and the second phase in 2020, theexpansion or start-up of a number of smaller mines over 2018 and 2019, and the50% expansion of Stillwater by 2021.” In 2018, Franco-Nevada expects royaltyand stream production to total 460,000 to 490,000 gold-equivalent ounces fromits mineral assets and revenue of $50 million to $60 million from its oil andgas assets.
By Allen Sykoraof Kitco News; asykora@kitco.com
Victoria Gold Announces Financing ForEagle Gold Project
Thursday March 08, 2018 08:44
Victoria Gold Corp. (TSXV: VIT) says ithas entered into a financing package totaling C$505 million that will fullyfund development of the Eagle Gold project in Canada’s Yukon. The company saysparties included in the package are Orion Mine Finance, Osisko Gold RoyaltiesLtd. and Caterpillar Financial Services Ltd. The financing is comprised of twocredit facilities totaling $219 million; an equipment financing facility for upto C$63 million; a C$98 million royalty financing; and a private placement of Victoriacommon shares to two separate subscribers for a total of C$125 million. “Withthis project financing package, Victoria is in a position to continueconstruction activities and advance the Eagle project to first gold pour, whichwe expect in the second half of 2019,” says John McConnell, president and chiefexecutive officer. “With this significant milestone behind us, we look forwardto building a high-quality, profitable, and environmentally safe project thatwill deliver significant economic benefit to all of our stakeholders.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Osisko Acquires Gold Royalty On VictoriaGold Project
Thursday March 08, 2018 08:44
Osisko Gold Royalties Ltd. (TSX, NYSE: OR)says it has agreed with Victoria Gold Corp. (TSXV: VIT) to acquire a 5%net-smelter-return royalty for C$98 million on the Dublin Gulch property, whichincludes the Eagle Gold project, in Canada’s Yukon. Osisko describes theproject as “shovel ready,” with 2.7 million ounces in proven and probable goldreserves from 123 million tonnes of ore with a grade of 0.67 grams of gold pertonne. When in production, the asset is expected to produce some 200,000 ouncesof gold annually at an operating cost of approximately US$550 per ounce, Osiskosays. The project has permits for construction and operations. As part of thedeal, Osisko also agreed to purchase on a private placement basis 100 millioncommon shares of Victoria at a price of C$0.50 per common share for totalfinancing by Osisko of C$148 million, including the royalty purchase.
By Allen SykoraFor Kitco News
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