Business
Franco-Nevada Reports Record First Quarter Results and Starts Monthly Dividends
Franco-Nevada Reports Record First Quarter Results and Starts Monthly Dividends
About this update from Franco-nevada Corporation
[{"type":"text","content":"\n\n\n\n May 12, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\nThis press release contains forward-looking statements. Reference should be made to the "Cautionary Statement on Forward-looking Information" at the end of this press release.\n\n\n >\n\n\n Franco-Nevada Corporation (TSX: FNV) today reported its financial results for the three months ended March 31, 2010. All figures are in US dollars unless otherwise noted. The complete Financial Statements and Management's Discussion and Analysis can be found today on Franco-Nevada's website at www.franco-nevada.com and by tomorrow on www.sedar.com.\n\n\n >\n\n\nRevenues\n\nKey aspects of the Company's revenue for the first quarter of 2010 are as follows:\n\n\n >\n\n\nCosts, Expenses, Taxes and Capital\n\nAn advantage of Franco-Nevada's royalty portfolio is that it requires relatively limited capital and incurs only minor direct operating costs. Costs of operations were $1.6 million for the three months ended March 31, 2010, an increase of 13%, over the three months ended March 31, 2009 although Royalty Revenue increased 43% in the same period. The increase in costs and expenses was driven by higher oil and gas production taxes and Montana net proceeds taxes partially offset by lower Nevada net proceeds taxes.\nGeneral and administrative costs remained relatively flat for the quarter when compared to the same quarter of 2009, with G&A expenses of $2.6 million incurred in the three months ended March 31, 2010 compared to $2.7 million for the three months ended March 31, 2009. Business development costs were $0.6 million which included expenses incurred in connection with a takeover bid.\n\nNet Income\n\nNet income for the quarter was $7.8 million which included a gain on the sale of investments of $16.3 million, foreign exchange losses of $15.2 million and fair value losses of $4.0 million associated with royalty interests accounted for as derivative instruments.\nAdjusted Net Income(3) was $8.6 million, or $0.08 per share, compared with $0.5 million, or $0.01 per share, for the same period of the prior year.\nThe Company believes the best measures of its business and performance are Royalty Revenue(1) and Free Cash Flow(2). Free Cash Flow(2) was $37.1 million ($0.33 per share) for the first quarter ...