Franco-Nevada sets record

A quarter that saw Franco-Nevada Mining (FN-T) lose out on a merger bid with South African mining house Gold Fields (GOLD-Q) still provided the gold producer with record earnings and revenue. Franco-Nevada earned $31.8 million on revenue of $71.4 million in the three months ended Sept. 30, translating into 20 per share.

Franco, whose fiscal year ends on March 31, made $89.9 million on revenue of $135.4 million in the six months ended Sept. 30. In 1999, the company earned $42.7 million on revenue of $60.7 million in the three months ended Sept. 30, and earned $80.2 million while taking in $117.3 million in the six months from April to September.

Franco’s Ken Snyder gold mine, in Nevada, produced 52,900 oz. gold and 505,000 oz. silver in the quarter, at a cash operating cost of US$111 per oz. gold. Total production costs at Snyder were US$161 per oz.

Investment income has increased over last year’s figures, with Franco taking in $22.4 million in the quarter, up from $9.6 million a year ago. For the six months ended Sept. 30, investment income has more than doubled, to $39 million.

The South African government’s prohibition of the merger with Gold Fields registered on the books in the form of increased general and administrative costs. These are running at $5.1 million for the six months ended Sept. 30, compared with $3.5 million over the corresponding period in 1999.