Business
Franco-Nevada Reports Record Royalty Revenue and Free Cash Flow for Second Quarter of 2010
Franco-Nevada Reports Record Royalty Revenue and Free Cash Flow for Second Quarter of 2010
About this update from Franco-nevada Corporation
[{"type":"text","content":"\n\n\n\n Aug. 11, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\n\n >\n\n\nTORONTO, Aug. 11 /CNW/ - Franco-Nevada Corporation (TSX: FNV) today reported its financial results for the three and six months ended June 30, 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 second 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 $1.8 million and $3.4 million for the three and six months ended June 30, 2010 compared with $1.8 million and $3.2 million for the three and six months ended June 30, 2009. The increase in these costs of 2% and 7%, respectively, was due to higher taxes associated with Royalty Revenue which increased by 37% and 40%, respectively, in the same periods.\nGeneral and administrative costs remained flat for the quarter and first half of 2010 when compared to the same periods of 2009, with G&A expenses of $2.9 million and $5.6 million incurred in the three and six months ended June 30, 2010, compared to $2.9 million and $5.6 million for the three and six months ended June 30, 2009. Business development costs were $0.3 million and $0.9 million, respectively, for the quarter and six months ended June 30, 2010.\n\nNet Income\n\nNet income for the quarter was $27.6 million which included gains on the sale of investments of $5.7 million, foreign exchange losses of $4.5 million and fair value gains of $21.8 million associated with royalty interests accounted for as derivative instruments.\nNet income for the six months ended June 30, 2010 was $35.3 million which included $22.0...