Franco-Nevada Acquires $250M Royalty from i-80 Gold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: PRnewswire
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a $250 million net smelter return royalty from i-80 Gold through a wholly-owned U.S. subsidiary, with an initial royalty rate of 1.5% that will increase to 3.0% starting in 2031, supporting i-80 Gold's recapitalization plan and its strategy to become a mid-tier gold producer focused on Nevada.
- Extensive Project Coverage: The royalty applies to all of i-80 Gold's significant assets, including six projects at various stages of development, covering over 250 square kilometers of prospective ground, which is expected to significantly enhance its future gold production capacity.
- Production Capacity Increase: i-80 Gold plans to increase annual production from 150,000 to 200,000 ounces of gold in Phase 1 to over 600,000 ounces by Phase 3 in 2032, which is anticipated to generate substantial revenue growth and enhance market competitiveness.
- Strategic Financial Support: Franco-Nevada intends to finance the transaction using its $900 million in cash and cash equivalents, demonstrating its strong financial position and confidence in gold investments, further solidifying its leadership in the gold royalty and streaming sector.
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Analyst Views on FNV
Wall Street analysts forecast FNV stock price to fall
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 239.420
Low
210.00
Averages
236.43
High
270.00
Current: 239.420
Low
210.00
Averages
236.43
High
270.00
About FNV
Franco-Nevada Corporation is a Canada-based gold-focused royalty and streaming company. The Company’s segments include precious metals, other mining and energy. The Company’s portfolio is diversified by commodity, geography and asset. Its assets include Candelaria, Antapaccay, Antamina, Condestable, Tocantinzinho, Cerro Moro, Salares Norte, Cascabel (Alpala), Posse (Mara Rosa), CentroGold (Gurupi), Calcatreu, and San Jorge. Its other mining assets include NuevaUnion, Taca Taca, Caserones, Copper World Project, Ring of Fire, Mt Keith, Crawford, Robinson, EaglePicher, Copper World Project, and Milpillas. Its United States assets include Stillwater, Goldstrike, Gold Quarry, Marigold, Bald Mountain, South Arturo, Mesquite, Castle Mountain, Stibnite Gold, Sterling, Granite Creek (Pinson) and Arthur Gold Project. Its Canadian assets include Detour Lake, Sudbury, Hemlo, Brucejack, Macassa (Kirkland Lake), Dublin Gulch (Eagle), Musselwhite, and Timmins West.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FRANCO-NEVADA CORP: H.C. WAINWRIGHT INCREASES TARGET PRICE FROM $210 TO $285
Company Overview: Franco-Nevada Corporation is a leading gold-focused royalty and streaming company.
Recent Financial Update: H.C. Wainwright has raised the target price for Franco-Nevada shares to $285 from a previous target of $210.
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- Financing Overview: i-80 Gold announced it has secured a financing package of up to $500 million, which includes a $250 million royalty sale to Franco-Nevada and a gold pre-payment facility of up to $250 million, aimed at supporting its recapitalization plan and establishing itself as a mid-tier gold producer in Nevada.
- Recapitalization Strategy: The company plans to retire and replace existing convertible debentures with more favorable terms and potentially sell a non-core asset to complete its recapitalization plan targeting an overall amount of $900 million to $1 billion, enhancing its financial flexibility.
- Royalty Agreement Details: The agreement with Franco-Nevada includes a 1.5% life-of-mine net smelter return royalty, increasing to 3.0% in 2031, applicable to all of i-80 Gold's material properties, ensuring long-term revenue generation.
- Production Target Outlook: i-80 Gold aims to achieve annual gold production exceeding 600,000 ounces by the early 2030s, with CEO Richard Young stating that the foundational capital provided by Franco-Nevada lays a solid groundwork for the company's future growth.
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Franco-Nevada Acquires $250M Royalty from i-80 Gold
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a $250 million net smelter return royalty from i-80 Gold through a wholly-owned U.S. subsidiary, with an initial royalty rate of 1.5% that will increase to 3.0% starting in 2031, supporting i-80 Gold's recapitalization plan and its strategy to become a mid-tier gold producer focused on Nevada.
- Extensive Project Coverage: The royalty applies to all of i-80 Gold's significant assets, including six projects at various stages of development, covering over 250 square kilometers of prospective ground, which is expected to significantly enhance its future gold production capacity.
- Production Capacity Increase: i-80 Gold plans to increase annual production from 150,000 to 200,000 ounces of gold in Phase 1 to over 600,000 ounces by Phase 3 in 2032, which is anticipated to generate substantial revenue growth and enhance market competitiveness.
- Strategic Financial Support: Franco-Nevada intends to finance the transaction using its $900 million in cash and cash equivalents, demonstrating its strong financial position and confidence in gold investments, further solidifying its leadership in the gold royalty and streaming sector.
See More
Franco-Nevada Acquires $250 Million Royalty from i-80 Gold
- Royalty Acquisition: Franco-Nevada has acquired a $250 million net smelter return royalty from i-80 Gold through a wholly-owned subsidiary, with an initial rate of 1.5% increasing to 3% in 2031, supporting i-80 Gold's recapitalization plan to become a mid-tier gold producer in Nevada.
- Project Development Timeline: i-80 Gold aims to ramp up annual production from 30-40 koz in 2025 to over 600 koz by 2032, with a three-phase development plan that includes achieving 150-200 koz in Phase 1 by 2028-2029, significantly enhancing its competitive position in the gold mining sector.
- Financing and Processing Hub: This financing will provide substantial capital for advancing Phases 1 and 2, particularly refurbishing the Lone Tree Autoclave facility to establish a central processing hub that optimizes operations across multiple underground mines.
- Mineral Resource Potential: The royalty covers a substantial mineral resource base of 7.8 million ounces of measured and indicated resources across a 256 km² land package, indicating strong long-term growth potential and opportunities to create greater value for all stakeholders.
See More
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New Target Price: The new target price is set at $304, an increase from the previous $280.
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Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
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FRANCO-NEVADA CORP: H.C. WAINWRIGHT INCREASES TARGET PRICE FROM $210 TO $285
Company Overview: Franco-Nevada Corporation is a leading gold-focused royalty and streaming company.
Recent Financial Update: H.C. Wainwright has raised the target price for Franco-Nevada shares to $285 from a previous target of $210.
See More
i-80 Gold Secures Up to $500M Financing Package
- Financing Overview: i-80 Gold announced it has secured a financing package of up to $500 million, which includes a $250 million royalty sale to Franco-Nevada and a gold pre-payment facility of up to $250 million, aimed at supporting its recapitalization plan and establishing itself as a mid-tier gold producer in Nevada.
- Recapitalization Strategy: The company plans to retire and replace existing convertible debentures with more favorable terms and potentially sell a non-core asset to complete its recapitalization plan targeting an overall amount of $900 million to $1 billion, enhancing its financial flexibility.
- Royalty Agreement Details: The agreement with Franco-Nevada includes a 1.5% life-of-mine net smelter return royalty, increasing to 3.0% in 2031, applicable to all of i-80 Gold's material properties, ensuring long-term revenue generation.
- Production Target Outlook: i-80 Gold aims to achieve annual gold production exceeding 600,000 ounces by the early 2030s, with CEO Richard Young stating that the foundational capital provided by Franco-Nevada lays a solid groundwork for the company's future growth.
See More
Franco-Nevada Acquires $250M Royalty from i-80 Gold
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a $250 million net smelter return royalty from i-80 Gold through a wholly-owned U.S. subsidiary, with an initial royalty rate of 1.5% that will increase to 3.0% starting in 2031, supporting i-80 Gold's recapitalization plan and its strategy to become a mid-tier gold producer focused on Nevada.
- Extensive Project Coverage: The royalty applies to all of i-80 Gold's significant assets, including six projects at various stages of development, covering over 250 square kilometers of prospective ground, which is expected to significantly enhance its future gold production capacity.
- Production Capacity Increase: i-80 Gold plans to increase annual production from 150,000 to 200,000 ounces of gold in Phase 1 to over 600,000 ounces by Phase 3 in 2032, which is anticipated to generate substantial revenue growth and enhance market competitiveness.
- Strategic Financial Support: Franco-Nevada intends to finance the transaction using its $900 million in cash and cash equivalents, demonstrating its strong financial position and confidence in gold investments, further solidifying its leadership in the gold royalty and streaming sector.
See More
Franco-Nevada Acquires $250 Million Royalty from i-80 Gold
- Royalty Acquisition: Franco-Nevada has acquired a $250 million net smelter return royalty from i-80 Gold through a wholly-owned subsidiary, with an initial rate of 1.5% increasing to 3% in 2031, supporting i-80 Gold's recapitalization plan to become a mid-tier gold producer in Nevada.
- Project Development Timeline: i-80 Gold aims to ramp up annual production from 30-40 koz in 2025 to over 600 koz by 2032, with a three-phase development plan that includes achieving 150-200 koz in Phase 1 by 2028-2029, significantly enhancing its competitive position in the gold mining sector.
- Financing and Processing Hub: This financing will provide substantial capital for advancing Phases 1 and 2, particularly refurbishing the Lone Tree Autoclave facility to establish a central processing hub that optimizes operations across multiple underground mines.
- Mineral Resource Potential: The royalty covers a substantial mineral resource base of 7.8 million ounces of measured and indicated resources across a 256 km² land package, indicating strong long-term growth potential and opportunities to create greater value for all stakeholders.
See More
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Company Update: Franco-Nevada Corp has raised its target price for Raymond James.
New Target Price: The new target price is set at $304, an increase from the previous $280.
See More
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
